Get to Know the New Kids on the ETF Block

State Street Global Advisors, one of the pioneers in the creation of
exchange-traded funds, has recently brought to market three new ETF strategies.
Each new fund is sector-based and carries the SPDR branding. The start date for
these ETFs was Sept. 28, 2011. The first of these new State Street Global
Advisors ETFs is the SPDR S&P Aerospace & Defense ETF (NYSE: XAR ). XAR attempts
to replicate the S&P Aerospace & Defense Index, before fees and expenses. The
top 10 holdings and weightings are listed below: Goodrich (NYSE: GR ): 5.3%
Textron (NYSE: TXT ): 4.4% Rockwell Collins (NYSE: COL ): 4.12% BE Aerospace
(NASDAQ: BEAV ): 4.09% Spirit AeroSystems (NYSE: SPR ): 4.05% Hexcel Corp (NYSE:
HXL ): 4.05% Triumph Group (NYSE: TGI ): 3.83% Northrop Grumman (NYSE: NOC ):
3.79% United Technologies (NYSE: UTX ): 3.78% ITT Corp (NYSE: ITT ): 3.74% Its
difficult to determine how this program will work in light of the United States
current fiscal situation and how defense spending might be curtailed
significantly depending on the Congressional supercommittees decision. Time will
tell if this was the best or the worst time to bring XAR to market. The second
of the new ETFs is the SPDR S&P Health Care Services ETF (NYSE: XHS ). XHS
attempts to replicate the S&P Health Care Service Industry Index, before fees
and expenses. The top 10 holdings and weightings are listed below: Catalyst
Health Solutions (NASDAQ: CHSI ): 2.25% LifePoint Hospitals (NASDAQ: LPNT ):
2.16% Lincare Holdings (NASDAQ: LNCR ): 2.13% HCA Holdings (NYSE: HCA ): 2.13%
Patterson Companies (NASDAQ: PDCO ): 2.11% Cardinal Health (NYSE: CAH ): 2.11%
WellPoint (NYSE: WLP ): 2.08% Health Net (NYSE: HNT ): 2.07% Quest Diagnostics
(NYSE: DGX ): 2.06% Henry Schein (NASDAQ: HSIC ): 2.06%