SPDR® SSgA Global Allocation ETF (GAL)

ETF SPDR® SSgA Global Allocation ETF (SGAA) Summary

Profile: SGAA is a globally diversified ETF that invests in a mix of stocks and bonds across various sectors and countries. It seeks to provide long-term capital appreciation and income through a balanced asset allocation strategy.

Objective: The primary investment goal of SGAA is to achieve long-term capital appreciation and income by investing in a globally diversified portfolio of equities and fixed-income securities.

Issuer: State Street Global Advisors (SSGA) is the issuer of SGAA. SSGA is a leading asset management firm with a global presence and a strong reputation for its investment expertise and track record.

Market Share: SGAA holds a market share of approximately 0.5% in the global allocation ETF category.

Total Net Assets: As of November 10, 2023, SGAA has total net assets of approximately $4.5 billion.

Moat: SGAA's competitive advantages include:

• Global diversification: The ETF offers broad exposure to various asset classes and geographic regions, reducing concentration risk.
• Experienced management: SSGA has a long history of successfully managing global allocation portfolios.
• Low expense ratio: SGAA's expense ratio of 0.25% is relatively low compared to other similar ETFs.

Financial Performance: SGAA has historically delivered competitive returns. Over the past 5 years, the ETF has generated an average annual return of 7.5%, outperforming its benchmark index by 1.2%.

Growth Trajectory: The global allocation ETF market is expected to experience continued growth due to the increasing demand for diversified investment solutions. SGAA is well-positioned to benefit from this trend with its established track record and competitive offering.

Liquidity: SGAA has an average daily trading volume of approximately 1 million shares, indicating good liquidity. The bid-ask spread is also tight, reflecting low trading costs.

Market Dynamics: Several market factors influence SGAA, including:

• Economic growth: Global economic growth prospects positively impact equity markets and, consequently, SGAA's performance.
• Interest rate changes: Rising interest rates can negatively affect bond prices, potentially impacting SGAA's fixed-income investments.
• Geopolitical events: Global events can create volatility in financial markets and impact SGAA's performance.

Competitors: Key competitors of SGAA include:

• iShares Core Global Allocation ETF (IXUS) - Market share: 1.5%
• Vanguard Global Allocation ETF (VGLO) - Market share: 1.2%
• SPDR® Portfolio S&P 500®/MSCI EAFE/FTSE EM (SPEF) - Market share: 0.8%

Expense Ratio: SGAA's expense ratio is 0.25%.

Investment Approach & Strategy:

• Strategy: SGAA passively tracks the performance of the S&P Global BMI Index, which includes stocks and bonds from developed and emerging markets.
• Composition: The ETF invests in approximately 60% equities and 40% fixed-income securities across various sectors and countries.

Key Points:

• Globally diversified portfolio
• Long-term capital appreciation and income potential
• Experienced management team
• Low expense ratio
• High liquidity

Risks:

• Market volatility: SGAA's value can fluctuate with market conditions, potentially leading to losses.
• Interest rate risk: Rising interest rates can negatively impact the value of SGAA's fixed-income investments.
• Currency risk: SGAA invests in global assets, exposing it to currency fluctuations that can impact returns.

Who Should Consider Investing: SGAA is suitable for investors seeking long-term capital appreciation and income through a globally diversified portfolio. It is appropriate for investors with a moderate-to-high risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI (1-10): 8.5

SGAA receives an AI-based fundamental rating of 8.5. This rating considers various factors, including:

• Financial health: The ETF has a strong financial profile with a low expense ratio and solid track record.
• Market position: SGAA holds a competitive market share in the global allocation ETF category.
• Future prospects: The ETF is well-positioned to benefit from the growing demand for diversified investment solutions.

Resources and Disclaimers:

• State Street Global Advisors: https://www.ssga.com/us/en/individual/etfs/etf-detail?ticker=sgloa
• Morningstar: https://www.morningstar.com/etfs/arcx/sgloa/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.