N-30D 1 b77788a1nv30d.txt SPDR TRUST SERIES 1 STANDARD AND POOR'S DEPOSITARY RECEIPTS(R) ("SPDR(R)") SPDR TRUST, SERIES 1 A UNIT INVESTMENT TRUST ANNUAL REPORT SEPTEMBER 30, 2009 "STANDARD & POOR'S(R)", "S&P(R)", "S&P 500(R)", "STANDARD & POOR'S 500(R)", "500", "STANDARD & POOR'S DEPOSITARY RECEIPTS(R)", "SPDR(R)" AND "SPDRS(R)" ARE TRADEMARKS OF THE MCGRAW-HILL COMPANIES, INC. STATE STREET GLOBAL MARKETS, LLC IS PERMITTED TO USE THESE TRADEMARKS PURSUANT TO A "LICENSE AGREEMENT" WITH STANDARD & POOR'S, A DIVISION OF THE MCGRAW-HILL COMPANIES, INC., AND SPDR TRUST, SERIES 1, IS PERMITTED TO USE THESE TRADEMARKS PURSUANT TO A SUBLICENSE FROM STATE STREET GLOBAL MARKETS, LLC. SPDR TRUST, SERIES 1 IS NOT, HOWEVER, SPONSORED BY OR AFFILIATED WITH STANDARD & POOR'S OR THE MCGRAW-HILL COMPANIES, INC. SPDR TRUST, SERIES 1 TRUST OVERVIEW -------------------------------------------------------------------------------- OBJECTIVE: The SPDR Trust Series 1 (the "Trust") is an exchange traded fund designed to generally correspond to the price and yield performance of the S&P 500(R) Index. STRATEGY: To accomplish this, the Trust utilizes a full replication approach. With this strategy, all 500 securities of the S&P 500(R) Index are owned by the Trust in their approximate market capitalization weight. A replication management approach should result in low expected tracking error of the Trust relative to its benchmark. PERFORMANCE OVERVIEW: The Trust ended its fiscal year on September 30, 2009 with a 12-month total return of -6.90% on net asset value as compared to the S&P 500(R) Index return of -6.91%. The Trust's performance reflects the operating expenses of the Trust, including brokerage and Trustee fees. The S&P 500(R) Index returns do not reflect fees and expenses of any kind, which would have a negative impact on returns. 1 SPDR TRUST, SERIES 1 SCHEDULE OF INVESTMENTS SEPTEMBER 30, 2009 --------------------------------------------------------------------------------

COMMON STOCKS SHARES VALUE --------------------------------------------------------- 3M Co. .................... 5,356,968 $ 395,344,238 Abbott Laboratories........ 11,859,199 586,674,575 Abercrombie & Fitch Co. (Class A)................ 675,018 22,194,592 Adobe Systems, Inc. *...... 4,032,720 133,241,069 Advanced Micro Devices, Inc. *................... 4,319,581 24,448,828 AES Corp. *................ 5,117,274 75,838,001 Aetna, Inc. ............... 3,348,761 93,196,019 Affiliated Computer Services, Inc. (Class A) *..................... 752,305 40,752,362 AFLAC, Inc. ............... 3,586,708 153,295,900 Agilent Technologies, Inc. *................... 2,643,482 73,568,104 Air Products & Chemicals, Inc. .................... 1,611,639 125,030,954 Airgas, Inc. .............. 630,270 30,486,160 AK Steel Holding Corp. .... 841,405 16,600,921 Akamai Technologies, Inc. *................... 1,331,844 26,210,690 Alcoa, Inc. ............... 7,474,584 98,066,542 Allegheny Energy, Inc. .... 1,305,721 34,627,721 Allegheny Technologies, Inc. .................... 754,850 26,412,201 Allergan, Inc. ............ 2,358,983 133,895,875 Allstate Corp. ............ 4,114,959 126,000,045 Altera Corp. .............. 2,261,841 46,390,359 Altria Group, Inc. ........ 15,889,906 282,999,226 Amazon.com, Inc. *......... 2,550,365 238,102,076 Ameren Corp. .............. 1,791,607 45,291,825 American Electric Power Co., Inc. ............... 3,657,714 113,352,557 American Express Co. ...... 9,122,754 309,261,361 American International Group, Inc. *............ 1,036,886 45,737,041 American Tower Corp. (Class A) *..................... 3,027,297 110,193,611 Ameriprise Financial, Inc. .................... 1,961,407 71,257,916 AmerisourceBergen Corp. ... 2,280,401 51,035,374 Amgen, Inc. *.............. 7,791,717 469,295,115 Amphenol Corp. (Class A)... 1,320,314 49,749,432 Anadarko Petroleum Corp. .. 3,763,255 236,068,986 Analog Devices, Inc. ...... 2,242,592 61,850,687 Aon Corp. ................. 2,105,521 85,673,649 Apache Corp. .............. 2,575,605 236,517,807 Apartment Investment & Management Co. (Class A)....................... 904,835 13,346,316 Apollo Group, Inc. (Class A) *..................... 978,109 72,057,290 Apple, Inc. *.............. 6,872,013 1,273,865,050 Applied Materials, Inc. ... 10,231,411 137,100,907 Archer-Daniels-Midland Co. ..................... 4,925,237 143,915,425 Assurant, Inc. ............ 907,517 29,094,995 AT&T, Inc. ................ 45,260,802 1,222,494,262 Autodesk, Inc. *........... 1,760,404 41,897,615 Automatic Data Processing, Inc. .................... 3,852,142 151,389,181 AutoNation, Inc. *......... 723,882 13,087,787 Autozone, Inc. *........... 247,299 36,160,060 AvalonBay Communities, Inc. .................... 615,931 44,796,662 Avery Dennison Corp. ...... 868,782 31,284,840 Avon Products, Inc. ....... 3,275,386 111,232,109 Baker Hughes, Inc. ........ 2,377,030 101,404,100 Ball Corp. ................ 724,444 35,642,645 Bank of America Corp. ..... 66,369,515 1,122,972,194 Bank of New York Mellon Corp. ................... 9,206,465 266,895,420 Baxter International, Inc. .................... 4,623,640 263,593,716 BB&T Corp. ................ 5,228,804 142,432,621 Becton, Dickinson & Co. ... 1,836,263 128,079,344 Bed Bath & Beyond, Inc. *.. 1,998,759 75,033,413 Bemis Co., Inc. ........... 828,983 21,478,950 Best Buy Co., Inc. ........ 2,619,052 98,266,831 Big Lots, Inc. *........... 636,801 15,932,761 Biogen Idec, Inc. *........ 2,215,798 111,942,115 BJ Services Co. ........... 2,250,851 43,734,035 Black & Decker Corp. ...... 463,029 21,433,612 BMC Software, Inc. *....... 1,411,413 52,970,330 Boeing Co. ................ 5,572,641 301,758,510 Boston Properties, Inc. ... 1,065,819 69,864,435 Boston Scientific Corp. *.. 11,564,461 122,467,642 Bristol-Myers Squibb Co. .. 15,196,271 342,220,023 Broadcom Corp. (Class A) *..................... 3,291,783 101,024,820 Brown-Forman Corp. (Class B)....................... 842,785 40,639,093 Burlington Northern Santa Fe Corp. ................ 2,008,704 160,354,840 C.H. Robinson Worldwide, Inc. .................... 1,291,668 74,593,827 C.R. Bard, Inc. ........... 748,791 58,862,461 CA, Inc. .................. 3,036,125 66,764,389 Cabot Oil & Gas Corp. ..... 798,769 28,555,992 Cameron International Corp. *.................. 1,672,678 63,260,682 Campbell Soup Co. ......... 1,478,212 48,219,275 Capital One Financial Corp. ................... 3,479,510 124,322,892 Cardinal Health, Inc. ..... 2,759,401 73,951,947 CareFusion Corp. *......... 1,386,494 30,225,569 Carnival Corp. ............ 3,361,305 111,864,230 Caterpillar, Inc. ......... 4,765,913 244,634,314 CB Richard Ellis Group, Inc. (Class A) *......... 1,824,364 21,418,033 CBS Corp. (Class B)........ 5,199,198 62,650,336 Celgene Corp. *............ 3,518,443 196,680,964 CenterPoint Energy, Inc. .. 2,963,986 36,842,346 CenturyTel, Inc. .......... 2,281,577 76,660,987 Cephalon, Inc. *........... 569,105 33,144,675 CF Industries Holdings, Inc. .................... 368,841 31,805,159 Charles Schwab Corp. ...... 7,302,237 139,837,839 Chesapeake Energy Corp. ... 4,920,853 139,752,225 Chevron Corp. ............. 15,384,909 1,083,559,141 Chubb Corp. ............... 2,684,283 135,314,706 Ciena Corp. *.............. 703,109 11,446,615 CIGNA Corp. ............... 2,091,906 58,761,640 Cincinnati Financial Corp. ................... 1,253,009 32,565,704

See accompanying notes to financial statements. 2 SPDR TRUST, SERIES 1 SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2009 --------------------------------------------------------------------------------

COMMON STOCKS SHARES VALUE --------------------------------------------------------- Cintas Corp. .............. 1,012,359 $ 30,684,601 Cisco Systems, Inc. *...... 44,247,210 1,041,579,323 Citigroup, Inc. ........... 100,016,908 484,081,835 Citrix Systems, Inc. *..... 1,393,847 54,680,618 Clorox Co. ................ 1,070,647 62,975,457 CME Group, Inc. ........... 509,704 157,085,676 CMS Energy Corp. .......... 1,748,421 23,428,841 Coach, Inc. ............... 2,445,386 80,502,107 Coca-Cola Co. ............. 17,772,011 954,356,991 Coca-Cola Enterprises, Inc. .................... 2,433,010 52,090,744 Cognizant Technology Solutions Corp. (Class A) *..................... 2,249,026 86,947,345 Colgate-Palmolive Co. ..... 3,823,619 291,665,657 Comcast Corp. (Class A).... 22,015,355 371,839,346 Comerica, Inc. ............ 1,164,746 34,558,014 Computer Sciences Corp. *.. 1,166,473 61,484,792 Compuware Corp. *.......... 1,822,148 13,356,345 ConAgra Foods, Inc. ....... 3,391,451 73,526,658 ConocoPhillips............. 11,375,773 513,729,909 CONSOL Energy, Inc. ....... 1,390,117 62,708,178 Consolidated Edison, Inc. .................... 2,113,101 86,510,355 Constellation Brands, Inc. (Class A) *.............. 1,515,747 22,963,567 Constellation Energy Group, Inc. .................... 1,535,559 49,706,045 Convergys Corp. *.......... 947,576 9,418,905 Corning, Inc. ............. 11,925,749 182,583,217 Costco Wholesale Corp. .... 3,336,040 188,352,818 Coventry Health Care, Inc. *................... 1,144,404 22,842,304 CSX Corp. ................. 3,007,358 125,888,006 Cummins, Inc. ............. 1,548,042 69,367,762 CVS Caremark Corp. ........ 11,071,777 395,705,310 D.R. Horton, Inc. ......... 2,124,514 24,240,705 Danaher Corp. ............. 1,986,851 133,754,809 Darden Restaurants, Inc. .. 1,057,209 36,082,543 DaVita, Inc. *............. 796,940 45,138,682 Dean Foods Co. *........... 1,364,538 24,275,131 Deere & Co. ............... 3,244,483 139,253,210 Dell, Inc. *............... 13,202,320 201,467,403 Denbury Resources, Inc. *.. 1,918,133 29,021,352 DENTSPLY International, Inc. .................... 1,144,840 39,542,774 Devon Energy Corp. ........ 3,404,517 229,226,130 DeVry, Inc. ............... 475,105 26,282,809 Diamond Offshore Drilling, Inc. .................... 533,025 50,914,548 DIRECTV Group, Inc. *...... 3,449,922 95,148,849 Discover Financial Services................. 4,109,463 66,696,584 Dominion Resources, Inc. .. 4,543,757 156,759,616 Dover Corp. ............... 1,431,574 55,487,808 Dow Chemical Co. .......... 8,773,023 228,712,710 Dr. Pepper Snapple Group, Inc. *................... 1,956,669 56,254,234 DTE Energy Co. ............ 1,262,902 44,378,376 Du Pont (E.I.) de Nemours & Co. ..................... 6,931,716 222,785,352 Duke Energy Corp. ......... 9,912,692 156,025,772 Dun & Bradstreet Corp. .... 404,794 30,489,084 Dynegy, Inc. (Class A) *... 3,915,261 9,983,916 E*TRADE Financial Corp. *.. 7,114,627 12,450,597 Eastman Chemical Co. ...... 560,023 29,983,631 Eastman Kodak Co. ......... 2,071,844 9,903,414 Eaton Corp. ............... 1,270,425 71,893,351 eBay, Inc. *............... 8,611,298 203,312,746 Ecolab, Inc. .............. 1,815,457 83,928,577 Edison International....... 2,499,312 83,926,897 El Paso Corp. ............. 5,379,175 55,513,086 Electronic Arts, Inc. *.... 2,489,269 47,420,574 Eli Lilly & Co. ........... 7,756,666 256,202,678 EMC Corp. *................ 15,501,388 264,143,652 Emerson Electric Co. ...... 5,765,625 231,086,250 ENSCO International, Inc. .................... 1,092,762 46,486,095 Entergy Corp. ............. 1,502,048 119,953,553 EOG Resources, Inc. ....... 1,927,719 160,983,814 EQT Corp. ................. 1,008,941 42,980,887 Equifax, Inc. ............. 972,852 28,348,907 Equity Residential Properties Trust......... 2,107,625 64,704,087 Estee Lauder Cos., Inc. (Class A)................ 894,773 33,178,183 Exelon Corp. .............. 5,056,037 250,880,556 Expedia, Inc. *............ 1,621,145 38,826,423 Expeditors International of Washington, Inc. ........ 1,627,337 57,200,896 Express Scripts, Inc. *.... 2,104,981 163,304,426 Exxon Mobil Corp. ......... 36,868,217 2,529,528,368 Family Dollar Stores, Inc. .................... 1,071,869 28,297,342 Fastenal Co. .............. 996,707 38,572,561 Federated Investors, Inc. (Class B)................ 678,692 17,897,108 FedEx Corp. ............... 2,397,595 180,347,096 Fidelity National Information Services, Inc. .................... 1,474,023 37,602,327 Fifth Third Bancorp........ 6,119,851 61,994,091 First Horizon National Corp. *.................. 1,681,141 22,241,494 FirstEnergy Corp. ......... 2,338,619 106,921,661 Fiserv, Inc. *............. 1,184,243 57,080,513 FLIR Systems, Inc. *....... 1,158,238 32,395,917 Flowserve Corp. ........... 429,192 42,292,580 Fluor Corp. ............... 1,379,901 70,167,966 FMC Corp. ................. 559,715 31,483,969 FMC Technologies, Inc. *... 939,292 49,068,614 Ford Motor Co. *........... 24,711,484 178,169,800 Forest Laboratories, Inc. *................... 2,314,307 68,133,198 Fortune Brands, Inc. ...... 1,152,532 49,535,825 FPL Group, Inc. ........... 3,156,494 174,333,164

See accompanying notes to financial statements. 3 SPDR TRUST, SERIES 1 SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2009 --------------------------------------------------------------------------------

COMMON STOCKS SHARES VALUE --------------------------------------------------------- Franklin Resources, Inc. .. 1,148,576 $ 115,546,746 Freeport-McMoRan Copper & Gold, Inc. .............. 3,158,974 216,737,206 Frontier Communications Corp. ................... 2,412,753 18,192,158 GameStop Corp. (Class A) *..................... 1,268,843 33,586,274 Gannett Co., Inc. ......... 1,771,445 22,160,777 General Dynamics Corp. .... 2,954,225 190,842,935 General Electric Co. ...... 81,521,900 1,338,589,598 General Mills, Inc. ....... 2,496,348 160,714,884 Genuine Parts Co. ......... 1,226,923 46,696,689 Genworth Financial, Inc. (Class A)................ 3,690,569 44,102,300 Genzyme Corp. *............ 2,073,591 117,634,817 Gilead Sciences, Inc. *.... 6,936,992 323,125,087 Goldman Sachs Group, Inc. .................... 3,921,667 722,959,311 Goodrich Corp. ............ 954,726 51,879,811 Goodyear Tire & Rubber Co. *.................... 1,863,994 31,743,818 Google, Inc. (Class A) *... 1,845,628 915,154,644 H&R Block, Inc. ........... 2,572,387 47,280,473 H.J. Heinz Co. ............ 2,422,521 96,295,210 Halliburton Co. ........... 6,908,294 187,352,933 Harley-Davidson, Inc. ..... 1,806,814 41,556,722 Harman International Industries, Inc. ........ 534,027 18,092,835 Harris Corp. .............. 1,005,437 37,804,431 Hartford Financial Services Group, Inc. ............. 2,947,693 78,113,864 Hasbro, Inc. .............. 959,868 26,636,337 HCP, Inc. ................. 2,248,360 64,617,866 Health Care REIT, Inc. .... 916,588 38,148,393 Hershey Co. ............... 1,277,420 49,640,541 Hess Corp. ................ 2,232,937 119,372,812 Hewlett-Packard Co. ....... 18,189,590 858,730,544 Home Depot, Inc. .......... 13,066,815 348,099,952 Honeywell International, Inc. .................... 5,769,224 214,326,672 Hormel Foods Corp. ........ 537,715 19,099,637 Hospira, Inc. *............ 1,236,965 55,168,639 Host Hotels & Resorts, Inc. .................... 4,633,646 54,538,013 Hudson City Bancorp, Inc. .................... 3,619,252 47,593,164 Humana, Inc. *............. 1,306,256 48,723,349 Huntington Bancshares, Inc. .................... 5,091,277 23,979,915 Illinois Tool Works, Inc. .................... 2,954,285 126,177,512 IMS Health, Inc. .......... 1,400,770 21,501,819 Integrys Energy Group, Inc. .................... 589,029 21,140,251 Intel Corp. ............... 42,943,780 840,409,775 IntercontinentalExchange, Inc. *................... 561,432 54,565,576 International Business Machines Corp. .......... 10,056,434 1,202,850,071 International Flavors & Fragrances, Inc. ........ 606,414 23,001,283 International Game Technology............... 2,273,074 48,825,630 International Paper Co. ... 3,326,869 73,956,298 Interpublic Group of Cos., Inc. *................... 3,683,788 27,702,086 Intuit, Inc. *............. 2,478,441 70,635,568 Intuitive Surgical, Inc. *................... 290,690 76,233,452 Invesco Ltd. .............. 3,166,710 72,074,320 Iron Mountain, Inc. *...... 1,388,234 37,010,318 ITT Corp. ................. 1,401,527 73,089,633 J.C. Penney Co., Inc. ..... 1,815,166 61,261,852 J.M. Smucker Co. .......... 912,873 48,391,398 Jabil Circuit, Inc. ....... 1,414,957 18,974,573 Jacobs Engineering Group, Inc. *................... 951,429 43,718,163 Janus Capital Group, Inc. .................... 1,382,482 19,603,595 JDS Uniphase Corp. *....... 1,664,791 11,836,664 Johnson & Johnson.......... 21,140,871 1,287,267,635 Johnson Controls, Inc. .... 4,575,800 116,957,448 JPMorgan Chase & Co. ...... 30,167,610 1,321,944,670 Juniper Networks, Inc. *... 4,028,750 108,856,825 KB HOME.................... 572,770 9,513,710 Kellogg Co. ............... 1,967,573 96,863,619 KeyCorp.................... 6,665,752 43,327,388 Kimberly-Clark Corp. ...... 3,179,860 187,548,143 Kimco Realty Corp. ........ 2,886,230 37,636,439 King Pharmaceuticals, Inc. *................... 1,910,600 20,577,162 KLA-Tencor Corp. .......... 1,309,203 46,948,020 Kohl's Corp. *............. 2,344,203 133,736,781 Kraft Foods, Inc. (Class A)....................... 11,314,992 297,244,840 Kroger Co. ................ 4,997,639 103,151,269 L-3 Communications Holdings, Inc. .......... 894,262 71,827,124 Laboratory Corp. of America Holdings *............... 833,069 54,732,633 Legg Mason, Inc. .......... 1,245,264 38,640,542 Leggett & Platt, Inc. ..... 1,207,824 23,431,786 Lennar Corp. (Class A)..... 1,187,672 16,924,326 Leucadia National Corp. *.. 1,458,178 36,046,160 Lexmark International, Inc. (Class A) *.............. 602,430 12,976,342 Life Technologies Corp. *.. 1,345,267 62,622,179 Limited Brands, Inc. ...... 2,048,276 34,800,209 Lincoln National Corp. .... 2,317,319 60,041,735 Linear Technology Corp. ... 1,713,203 47,335,799 Lockheed Martin Corp. ..... 2,476,960 193,401,037 Loews Corp. ............... 2,781,888 95,279,664 Lorillard, Inc. ........... 1,266,932 94,133,048 Lowe's Cos., Inc. ......... 11,334,726 237,349,162 LSI Logic Corp. *.......... 5,001,173 27,456,440 M & T Bank Corp. .......... 630,934 39,319,807 Macy's, Inc. .............. 3,225,993 59,003,412

See accompanying notes to financial statements. 4 SPDR TRUST, SERIES 1 SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2009 --------------------------------------------------------------------------------

COMMON STOCKS SHARES VALUE --------------------------------------------------------- Marathon Oil Corp. ........ 5,429,348 $ 173,196,201 Marriott International, Inc. (Class A)........... 1,929,117 53,224,338 Marsh & McLennan Cos., Inc. .................... 4,023,551 99,502,416 Marshall & Ilsley Corp. ... 2,823,583 22,786,315 Masco Corp. ............... 2,769,045 35,776,061 Massey Energy Co. ......... 657,825 18,346,739 MasterCard, Inc. (Class A)....................... 735,548 148,691,028 Mattel, Inc. .............. 2,763,391 51,012,198 MBIA, Inc. *............... 1,212,786 9,411,219 McAfee, Inc. *............. 1,197,924 52,457,092 McCormick & Co., Inc. ..... 1,004,413 34,089,777 McDonald's Corp. .......... 8,372,411 477,813,496 McGraw-Hill Cos., Inc. .... 2,420,749 60,857,630 McKesson Corp. ............ 2,041,886 121,594,311 MeadWestvaco Corp. ........ 1,318,792 29,422,250 Medco Health Solutions, Inc. *................... 3,634,352 201,016,009 Medtronic, Inc. ........... 8,490,709 312,458,091 MEMC Electronic Materials, Inc. *................... 1,722,545 28,645,923 Merck & Co., Inc. ......... 16,177,970 511,709,191 Meredith Corp. ............ 279,336 8,363,320 MetLife, Inc. ............. 6,279,919 239,076,516 MetroPCS Communications, Inc. *................... 1,953,147 18,281,456 Microchip Technology, Inc. .................... 1,408,160 37,316,240 Micron Technology, Inc. *.. 6,496,295 53,269,619 Microsoft Corp. ........... 59,469,062 1,539,654,015 Millipore Corp. *.......... 427,376 30,057,354 Molex, Inc. ............... 1,042,725 21,772,098 Molson Coors Brewing Co. (Class B)................ 1,202,799 58,552,255 Monsanto Co. .............. 4,187,866 324,140,828 Monster Worldwide, Inc. *.. 971,073 16,974,356 Moody's Corp. ............. 1,472,487 30,127,084 Morgan Stanley............. 10,399,103 321,124,301 Motorola, Inc. ............ 17,608,419 151,256,319 Murphy Oil Corp. .......... 1,463,828 84,272,578 Mylan, Inc. *.............. 2,351,278 37,643,961 Nabors Industries, Ltd. *.. 2,181,482 45,592,974 Nasdaq OMX Group, Inc. *... 1,059,899 22,310,874 National Semiconductor Corp. ................... 1,794,677 25,610,041 National-Oilwell Varco, Inc. *................... 3,208,250 138,371,822 NetApp, Inc. *............. 2,549,711 68,026,289 New York Times Co. (Class A)....................... 899,459 7,303,607 Newell Rubbermaid, Inc. ... 2,139,289 33,565,444 Newmont Mining Corp. (Holding Co.)............ 3,758,837 165,464,005 News Corp. (Class A)....... 17,248,302 206,807,141 Nicor, Inc. ............... 347,806 12,726,222 NIKE, Inc. (Class B)....... 2,983,918 193,059,495 NiSource, Inc. ............ 2,116,406 29,396,879 Noble Energy, Inc. ........ 1,330,144 87,736,298 Nordstrom, Inc. ........... 1,263,583 38,589,825 Norfolk Southern Corp. .... 2,820,216 121,579,512 Northeast Utilities........ 1,350,346 32,057,214 Northern Trust Corp. ...... 1,855,525 107,917,334 Northrop Grumman Corp. .... 2,440,444 126,292,977 Novell, Inc. *............. 2,667,396 12,029,956 Novellus Systems, Inc. *... 752,932 15,796,513 Nucor Corp. ............... 2,413,970 113,480,730 NVIDIA Corp. *............. 4,209,956 63,275,639 NYSE Euronext.............. 2,001,151 57,813,252 O'Reilly Automotive, Inc. *................... 1,045,596 37,787,839 Occidental Petroleum Corp. ................... 6,219,734 487,627,146 Office Depot, Inc. *....... 2,123,054 14,054,617 Omnicom Group, Inc. ....... 2,384,041 88,066,475 Oracle Corp. .............. 29,959,317 624,352,166 Owens-Illinois, Inc. *..... 1,296,622 47,845,352 PACCAR, Inc. .............. 2,787,262 105,107,650 Pactiv Corp. *............. 1,015,916 26,464,612 Pall Corp. ................ 909,028 29,343,424 Parker-Hannifin Corp. ..... 1,231,437 63,837,694 Patterson Cos., Inc. *..... 704,481 19,197,107 Paychex, Inc. ............. 2,464,630 71,597,501 Peabody Energy Corp. ...... 2,057,983 76,598,127 People's United Financial, Inc. .................... 2,684,100 41,764,596 Pepco Holdings, Inc. ...... 1,696,160 25,238,861 Pepsi Bottling Group, Inc. .................... 1,105,114 40,270,354 PepsiCo, Inc. ............. 11,950,894 701,039,442 PerkinElmer, Inc. ......... 899,798 17,312,114 Pfizer, Inc. .............. 51,774,927 856,875,042 PG&E Corp. ................ 2,837,076 114,873,207 Philip Morris International, Inc. ..... 14,840,445 723,323,289 Pinnacle West Capital Corp. ................... 779,169 25,572,327 Pioneer Natural Resources Co. ..................... 878,502 31,880,838 Pitney Bowes, Inc. ........ 1,590,787 39,531,057 Plum Creek Timber Co., Inc. .................... 1,255,352 38,463,985 PNC Financial Services Group, Inc. ............. 3,539,554 171,986,929 Polo Ralph Lauren Corp. ... 436,013 33,407,316 PPG Industries, Inc. ...... 1,266,924 73,747,646 PPL Corp. ................. 2,895,401 87,846,466 Praxair, Inc. ............. 2,353,638 192,268,688 Precision Castparts Corp. ................... 1,075,530 109,564,241 Principal Financial Group, Inc. .................... 2,446,675 67,014,428 Procter & Gamble Co. ...... 22,391,702 1,296,927,380 Progress Energy, Inc. ..... 2,142,583 83,689,292 Progressive Corp. *........ 5,205,841 86,312,844

See accompanying notes to financial statements. 5 SPDR TRUST, SERIES 1 SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2009 --------------------------------------------------------------------------------

COMMON STOCKS SHARES VALUE --------------------------------------------------------- ProLogis................... 3,411,563 $ 40,665,831 Prudential Financial, Inc. .................... 3,551,803 177,270,488 Public Service Enterprise Group, Inc. ............. 3,881,403 122,031,310 Public Storage, Inc. ...... 1,040,165 78,262,015 Pulte Homes, Inc. ......... 2,428,005 26,683,775 QLogic Corp. *............. 906,035 15,583,802 QUALCOMM, Inc. ............ 12,748,886 573,444,892 Quanta Services, Inc. *.... 1,503,037 33,262,209 Quest Diagnostics, Inc. ... 1,196,760 62,458,904 Questar Corp. ............. 1,341,513 50,387,228 Qwest Communications International, Inc. ..... 11,402,521 43,443,605 R.R. Donnelley & Sons Co. ..................... 1,581,319 33,618,842 RadioShack Corp. .......... 967,079 16,024,499 Range Resources Corp. ..... 1,205,229 59,490,103 Raytheon Co. .............. 2,987,134 143,292,818 Red Hat, Inc. *............ 1,442,182 39,861,910 Regions Financial Corp. ... 9,114,247 56,599,474 Republic Services, Inc. ... 2,478,511 65,854,037 Reynolds American, Inc. ... 1,300,857 57,914,154 Robert Half International, Inc. .................... 1,165,070 29,150,051 Rockwell Automation, Inc. .................... 1,092,749 46,551,107 Rockwell Collins, Inc. .... 1,209,262 61,430,510 Rowan Cos., Inc. .......... 870,772 20,088,710 Ryder System, Inc. ........ 431,083 16,838,102 Safeway, Inc. ............. 3,195,316 63,011,632 Salesforce.com, Inc. *..... 837,072 47,654,509 SanDisk Corp. *............ 1,746,426 37,897,444 Sara Lee Corp. ............ 5,336,746 59,451,350 SCANA Corp. ............... 846,011 29,525,784 Schering-Plough Corp. ..... 12,534,427 354,097,563 Schlumberger, Ltd. ........ 9,188,853 547,655,639 Scripps Networks Interactive (Class A).... 684,321 25,285,661 Sealed Air Corp. .......... 1,222,119 23,990,196 Sears Holdings Corp. *..... 382,824 25,002,235 Sempra Energy.............. 1,881,200 93,702,572 Sherwin-Williams Co. ...... 749,315 45,078,790 Sigma-Aldrich Corp. ....... 934,464 50,442,367 Simon Property Group, Inc. .................... 2,191,512 152,156,678 SLM Corp. *................ 3,602,822 31,416,608 Smith International, Inc. .................... 1,690,230 48,509,601 Snap-on, Inc. ............. 443,935 15,431,181 Southern Co. .............. 6,106,672 193,398,302 Southwest Airlines Co. .... 5,709,516 54,811,354 Southwestern Energy Co. *.. 2,646,293 112,943,785 Spectra Energy Corp. ...... 4,955,106 93,849,708 Sprint Nextel Corp. *...... 22,109,746 87,333,497 St. Jude Medical, Inc. *... 2,667,124 104,044,507 Staples, Inc. ............. 5,509,621 127,933,400 Starbucks Corp. *.......... 5,654,508 116,765,590 Starwood Hotels & Resorts Worldwide, Inc. ......... 1,438,768 47,522,507 State Street Corp.(a)...... 3,793,465 199,536,259 Stericycle, Inc. *......... 654,667 31,718,616 Stryker Corp. ............. 2,164,552 98,335,597 Sun Microsystems, Inc. *... 5,752,357 52,288,925 Sunoco, Inc. .............. 900,855 25,629,325 SunTrust Banks, Inc. ...... 3,826,520 86,288,026 SUPERVALU, Inc. ........... 1,630,748 24,559,065 Symantec Corp. *........... 6,248,434 102,911,708 Sysco Corp. ............... 4,534,322 112,677,902 T. Rowe Price Group, Inc. .................... 1,967,416 89,910,911 Target Corp. .............. 5,767,869 269,244,125 TECO Energy, Inc. ......... 1,640,607 23,099,747 Tellabs, Inc. *............ 3,047,380 21,087,870 Tenet Healthcare Corp. *... 3,222,975 18,951,093 Teradata Corp. *........... 1,317,855 36,267,370 Teradyne, Inc. *........... 1,339,778 12,392,946 Tesoro Corp. .............. 1,069,398 16,019,582 Texas Instruments, Inc. ... 9,677,026 229,248,746 Textron, Inc. ............. 2,071,698 39,320,828 The Gap, Inc. ............. 3,693,617 79,043,404 The Stanley Works.......... 609,449 26,017,378 The Travelers Cos., Inc. .. 4,354,215 214,358,004 The Walt Disney Co. ....... 14,257,663 391,515,426 Thermo Fisher Scientific, Inc. *................... 3,131,249 136,741,644 Tiffany & Co. ............. 953,932 36,755,000 Time Warner Cable, Inc. ... 2,702,962 116,470,633 Time Warner, Inc. ......... 9,095,439 261,766,734 Titanium Metals Corp. ..... 658,761 6,317,518 TJX Cos., Inc. ............ 3,251,417 120,790,142 Torchmark Corp. ........... 637,582 27,690,186 Total System Services, Inc. .................... 1,519,467 24,478,613 Tyson Foods, Inc. (Class A)....................... 2,328,172 29,404,812 U.S. Bancorp............... 14,667,104 320,622,893 Union Pacific Corp. ....... 3,868,514 225,727,792 United Parcel Service, Inc. (Class B)................ 7,628,842 430,800,708 United States Steel Corp. ................... 1,099,448 48,782,508 United Technologies Corp. ................... 7,220,881 439,968,279 UnitedHealth Group, Inc. .. 8,917,860 223,303,214 Unum Group................. 2,542,538 54,512,015 V.F. Corp. ................ 681,501 49,361,117 Valero Energy Corp. ....... 4,284,255 83,071,704 Varian Medical Systems, Inc. *................... 966,377 40,713,463 Ventas, Inc. .............. 1,206,279 46,441,741

See accompanying notes to financial statements. 6 SPDR TRUST, SERIES 1 SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2009 --------------------------------------------------------------------------------

COMMON STOCKS SHARES VALUE --------------------------------------------------------- VeriSign, Inc. *........... 1,485,875 $ 35,200,379 Verizon Communications, Inc. .................... 21,791,355 659,624,316 Viacom, Inc. (Class B) *... 4,655,317 130,535,089 Vornado Realty Trust....... 1,197,596 77,137,158 Vulcan Materials Co. ...... 958,870 51,846,101 W.W. Grainger, Inc. ....... 479,797 42,874,660 Wal-Mart Stores, Inc. ..... 16,569,897 813,416,244 Walgreen Co. .............. 7,612,966 285,257,836 Washington Post Co. (Class B)....................... 46,732 21,874,315 Waste Management, Inc. .... 3,779,671 112,709,789 Waters Corp. *............. 732,780 40,933,091 Watson Pharmaceuticals, Inc. *................... 812,477 29,769,157 WellPoint, Inc. *.......... 3,644,514 172,604,183 Wells Fargo & Co. ......... 35,837,184 1,009,891,845 Western Digital Corp. *.... 1,716,208 62,693,078 Western Union Co. ......... 5,381,736 101,822,445 Weyerhaeuser Co. .......... 1,621,469 59,426,839 Whirlpool Corp. ........... 568,931 39,802,413 Whole Foods Market, Inc. *................... 1,082,424 33,003,108 Williams Cos., Inc. ....... 4,465,740 79,802,774 Windstream Corp. .......... 3,366,046 34,098,046 Wisconsin Energy Corp. .... 901,164 40,705,578 Wyeth...................... 10,241,809 497,547,081 Wyndham Worldwide Corp. ... 1,372,429 22,398,041 Wynn Resorts, Ltd. *....... 522,097 37,011,456 Xcel Energy, Inc. ......... 3,496,006 67,263,155 Xerox Corp. ............... 6,658,471 51,536,566 Xilinx, Inc. .............. 2,123,181 49,724,899 XL Capital, Ltd. (Class A)....................... 2,636,844 46,039,296 XTO Energy, Inc. .......... 4,450,757 183,905,279 Yahoo!, Inc. *............. 9,154,631 163,043,978 Yum! Brands, Inc. ......... 3,555,171 120,022,573 Zimmer Holdings, Inc. *.... 1,643,920 87,867,524 Zions Bancorp.............. 959,214 17,237,076 --------------- Total Common Stocks (b) (Cost $61,931,262,714)... $71,621,512,714 ===============

* Non-income producing security (a) Affiliated Issuer. See following table for more information. (b) Unless otherwise indicated, the values of the securities of the Trust are determined based on Level 1 inputs. (Note 2) TRANSACTIONS WITH AFFILIATES SPDR Trust, Series 1 has invested in an affiliated company, State Street Corp. Amounts related to this investment at September 30, 2009, and for the period then ended are:

------------------------------------------------------------------------------------------------------------------------ NUMBER NUMBER OF PURCHASED SOLD OF SHARES SHARES HELD COST AT VALUE AT ----------------------- ----------------------- HELD AT AT 9/30/08 9/30/08 9/30/08 COST SHARES PROCEEDS SHARES 9/30/09 ----------- ------------ ------------ ------------ --------- ------------ --------- --------- State Street Corp............ 3,947,539 $280,233,025 $224,536,018 $300,437,044 7,405,120 $282,006,835 7,559,194 3,793,465

--------- VALUE AT DIVIDEND REALIZED 9/30/09 INCOME LOSS ------------ ---------- ------------- State Street Corp............ $199,536,259 $2,239,900 $(166,785,981)

See accompanying notes to financial statements. 7 SPDR TRUST, SERIES 1 SCHEDULE OF INVESTMENTS (CONTINUED) SEPTEMBER 30, 2009 -------------------------------------------------------------------------------- INDUSTRY BREAKDOWN AS OF SEPTEMBER, 30 2009*

INDUSTRY** MARKET VALUE ------------------------------------------------- Oil, Gas & Consumable Fuels..... $ 7,038,907,987 Pharmaceuticals................. 4,982,613,141 Computers & Peripherals......... 4,086,789,970 Diversified Financial Services.. 3,286,947,321 Software........................ 2,899,887,864 Capital Markets................. 2,195,652,199 Diversified Telecommunication Services...................... 2,054,513,374 Commercial Banks................ 2,053,265,888 Food & Staples Retailing........ 2,019,135,184 Aerospace & Defense............. 1,977,674,547 Communications Equipment........ 1,957,312,939 Beverages....................... 1,926,166,680 Insurance....................... 1,906,407,015 Media........................... 1,898,347,425 Semiconductors & Semiconductor Equipment..................... 1,848,246,201 Household Products.............. 1,839,116,637 Industrial Conglomerates........ 1,773,254,664 Electric Utilities.............. 1,487,824,343 Chemicals....................... 1,447,817,324 Health Care Providers & Services...................... 1,430,811,195 Health Care Equipment & Supplies...................... 1,417,592,779 Specialty Retail................ 1,376,045,971 Internet Software & Services.... 1,342,922,437 Energy Equipment & Services..... 1,342,439,753 Biotechnology................... 1,251,822,773 Food Products................... 1,181,132,557 Tobacco......................... 1,158,369,717 Machinery....................... 1,081,150,114 Hotels, Restaurants & Leisure... 1,071,530,404 Multi-Utilities................. 934,949,842 Real Estate Investment Trusts (REITs)....................... 820,779,619 IT Services..................... 791,265,012 Air Freight & Logistics......... 742,942,527 Metals & Mining................. 691,861,631 Road & Rail..................... 650,388,252 Multiline Retail................ 631,068,333 Consumer Finance................ 531,697,445 Commercial Services & Supplies.. 382,412,100 Electronic Equipment, Instruments & Components...... 379,043,341 Textiles, Apparel & Luxury Goods......................... 356,330,035 Household Durables.............. 304,672,990 Life Sciences Tools & Services.. 287,666,382 Electrical Equipment............ 277,637,357 Internet & Catalog Retail....... 276,928,499 Automobiles..................... 219,726,522 Wireless Telecommunication Services...................... 215,808,564 Paper & Forest Products......... 162,805,387 Containers & Packaging.......... 155,421,755 Auto Components................. 148,701,266 Construction & Engineering...... 147,148,338 Diversified Consumer Services... 145,620,572 Personal Products............... 144,410,292 Independent Power Producers & Energy Traders................ 135,527,962 Gas Utilities................... 106,094,337 Professional Services........... 104,962,398 Thrifts & Mortgage Finance...... 89,357,760 Leisure Equipment & Products.... 87,551,949 Trading Companies & Distributors.................. 81,447,221 Airlines........................ 54,811,354 Construction Materials.......... 51,846,101 Office Electronics.............. 51,536,566 Distributors.................... 46,696,689 Building Products............... 35,776,061 Health Care Technology.......... 21,501,819 Real Estate Management & Development................... 21,418,033 ------------------------------------------------- TOTAL........................... $71,621,512,714 ------------------------------------------------- -------------------------------------------------

* The Trust's industry breakdown is expressed as market value by industry and may change over time. ** Each security is valued based on Level 1 inputs. See accompanying notes to financial statements. 8 SPDR TRUST, SERIES 1 STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 2009 -------------------------------------------------------------------------------- ASSETS Investments in securities, at value (including affiliated investments at value of $199,536,259)........................ $71,621,512,714 Cash........................................................... 296,175,589 Receivable for SPDR's issued in-kind........................... 714,973 Dividends receivable -- unaffiliated issuers................... 87,959,020 Dividends receivable -- affiliated issuers..................... 37,128 --------------- Total Assets........................................................ 72,006,399,424 --------------- LIABILITIES Income distribution payable.................................... 335,935,330 Accrued trustee expense........................................ 1,955,104 Accrued expenses and other liabilities......................... 12,643,137 --------------- Total Liabilities................................................... 350,533,571 --------------- NET ASSETS.......................................................... $71,655,865,853 =============== NET ASSETS CONSIST OF: Paid in Capital (Note 4)....................................... $71,472,228,762 Distribution in excess of net investment income................ (336,373,142) Accumulated net realized loss on investments................... (9,170,239,767) Net unrealized appreciation on investments..................... 9,690,250,000 --------------- NET ASSETS.......................................................... $71,655,865,853 =============== NET ASSET VALUE PER SPDR............................................ $ 105.73 =============== UNITS OF FRACTIONAL UNDIVIDED INTEREST ("SPDRS") OUTSTANDING, UNLIMITED UNITS AUTHORIZED, $0.00 PAR VALUE............................................................. 677,710,721 --------------- COST OF INVESTMENTS (INCLUDING COST OF AFFILIATED INVESTMENTS OF $164,567,461)..................................................... $61,931,262,714 --------------- See accompanying notes to financial statements. 9 SPDR TRUST, SERIES 1 STATEMENTS OF OPERATIONS --------------------------------------------------------------------------------

FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2009 2008 2007 ---------------- ---------------- --------------- INVESTMENT INCOME Dividend income -- unaffiliated issuers.. $ 1,899,322,298 $ 1,628,431,147 $ 1,230,919,171 Dividend income -- affiliated issuers.... 2,239,900 2,890,454 1,534,780 ---------------- ---------------- --------------- Total Investment Income.................. 1,901,562,198 1,631,321,601 1,232,453,951 ---------------- ---------------- --------------- EXPENSES Trustee expense....................... 37,299,801 36,310,380 39,138,318 S&P license fee....................... 21,492,906 23,977,390 22,480,686 Marketing expense..................... 14,233,147 18,115,010 12,846,106 Legal and audit services.............. 277,642 155,059 131,502 Other expenses........................ 1,050,269 2,341,136 985,568 ---------------- ---------------- --------------- Total Expenses............................. 74,353,765 80,898,975 75,582,180 Trustee expense waiver................ (7,102,147) (6,923,474) (4,970,832) ---------------- ---------------- --------------- Net Expenses............................... 67,251,618 73,975,501 70,611,348 Trustee earnings credits.............. -- -- (18,950,100) ---------------- ---------------- --------------- Net Expenses after Trustee earnings credits.................................. 67,251,618 73,975,501 51,661,248 ---------------- ---------------- --------------- NET INVESTMENT INCOME...................... 1,834,310,580 1,557,346,100 1,180,792,703 ---------------- ---------------- --------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on (Note 5): Investment transactions -- unaffiliated issuers............................. (44,584,311,986) (8,458,807,396) 8,384,712,286 Investment transactions -- affiliated issuers............................. (166,785,981) 19,363,771 12,487,253 Net change in unrealized appreciation (depreciation) on: Investment transactions -- unaffiliated issuers............................. 29,208,992,488 (12,549,019,477) 451,101,267 Investment transactions -- affiliated issuers............................. 90,665,805 (54,343,615) (3,623,083) ---------------- ---------------- --------------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS.............................. (15,451,439,674) (21,042,806,717) 8,844,677,723 ---------------- ---------------- --------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................ $(13,617,129,094) $(19,485,460,617) $10,025,470,426 ================ ================ ===============

See accompanying notes to financial statements. 10 SPDR TRUST, SERIES 1 STATEMENTS OF CHANGES IN NET ASSETS --------------------------------------------------------------------------------

FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2009 2008 2007 ----------------- ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: Net investment income............. $ 1,834,310,580 $ 1,557,346,100 $ 1,180,792,703 Net realized gain (loss) on investment transactions......... (44,751,097,967) (8,439,443,625) 8,397,199,539 Net change in unrealized appreciation (depreciation)..... 29,299,658,293 (12,603,363,092) 447,478,184 ----------------- ----------------- ----------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............ (13,617,129,094) (19,485,460,617) 10,025,470,426 ----------------- ----------------- ----------------- NET EQUALIZATION CREDITS AND CHARGES... 79,929,657 218,645,921 115,289,393 ----------------- ----------------- ----------------- DISTRIBUTIONS TO UNITHOLDERS FROM NET INVESTMENT INCOME.................... (1,938,730,332) (1,782,447,532) (1,323,001,746) ----------------- ----------------- ----------------- FROM SPDR TRUST, SERIES 1 SHARES TRANSACTIONS: Net proceeds from sale of shares.. 343,468,772,184 445,910,262,535 269,830,592,741 Net proceeds from reinvestment of distributions................... 12,270,791 13,008,992 11,506,562 Cost of shares repurchased........ (349,232,583,429) (410,330,564,199) (257,491,986,404) Net income equalization........... (79,929,657) (218,645,921) (115,289,393) ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS FROM ISSUANCE AND REDEMPTION OF SPDRS................................ (5,831,470,111) 35,374,061,407 12,234,823,506 ----------------- ----------------- ----------------- NET INCREASE (DECREASE) IN NET ASSETS DURING PERIOD........................ (21,307,399,880) 14,324,799,179 21,052,581,579 NET ASSETS AT BEGINNING OF PERIOD...... 92,963,265,733 78,638,466,554 57,585,884,975 ----------------- ----------------- ----------------- NET ASSETS END OF PERIOD*.............. $ 71,655,865,853 $ 92,963,265,733 $ 78,638,466,554 ================= ================= ================= SPDR TRUST, SERIES 1 SHARES: Shares sold....................... 3,788,050,000 3,304,850,000 1,838,900,000 Shares issued from reinvesment of distributions................... 135,148 95,213 80,264 Shares redeemed................... (3,908,300,000) (3,022,850,000) (1,754,500,000) ----------------- ----------------- ----------------- NET INCREASE (DECREASE)................ (120,114,852) 282,095,213 84,480,264 ================= ================= ================= * INCLUDES DISTRIBUTION IN EXCESS OF NET INVESTMENT INCOME................ $ (336,373,142) $ (439,719,151) $ (354,299,342) ----------------- ----------------- -----------------

See accompanying notes to financial statements. 11 SPDR TRUST, SERIES 1 FINANCIAL HIGHLIGHTS SELECTED DATA FOR A SPDR OUTSTANDING DURING THE YEAR --------------------------------------------------------------------------------

FOR THE FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2009 2008 2007 2006 2005 ------------- ------------- ------------- ------------- ------------- NET ASSET VALUE, BEGINNING OF YEAR......................... $ 116.52 $ 152.48 $ 133.53 $ 122.85 $ 111.78 ----------- ----------- ----------- ----------- ----------- Investment operations: Net investment income..... 2.32(1) 2.72(1) 2.66(1) 2.32(1) 2.40(2) Net realized and unrealized gain (loss) on investments.......... (10.90) (36.28) 18.75 10.54 10.97 ----------- ----------- ----------- ----------- ----------- Total from investment operations................... (8.58) (33.56) 21.41 12.86 13.37 ----------- ----------- ----------- ----------- ----------- Net equalization credits and charges(1)................... 0.10 0.38 0.26 0.15 0.10 ----------- ----------- ----------- ----------- ----------- Less distributions from: Net investment income..... (2.31) (2.78) (2.72) (2.33) (2.40) ----------- ----------- ----------- ----------- ----------- NET ASSET VALUE, END OF YEAR... $ 105.73 $ 116.52 $ 152.48 $ 133.53 $ 122.85 =========== =========== =========== =========== =========== TOTAL INVESTMENT RETURN(3)..... (6.90)% (21.84)% 16.31% 10.64% 12.11% RATIOS AND SUPPLEMENTAL DATA Ratio to average net assets: Net investment income..... 2.58% 1.99% 1.86% 1.83% 2.02% Total expenses(4)......... 0.09% 0.09% 0.08% 0.08% 0.10% Total expenses excluding Trustee earnings credit.................. 0.10% 0.11% 0.11% 0.10% 0.10% Total expenses excluding Trustee earnings credit and fee waivers......... 0.10% 0.11% 0.12% 0.12% 0.13% Portfolio turnover rate(5)..... 6.68% 4.56% 2.95% 3.70% 6.01% Net assets, end of year (000's)...................... $71,655,866 $92,963,266 $78,638,467 $57,585,885 $47,028,594

-------- (1) Per share numbers have been calculated using the average shares method. (2) Net investment income per unit reflects receipt of a special one time dividend from a portfolio holding. The effect of this dividend amounted to $0.40 per share. (3) Total return is calculated assuming a purchase of shares at net asset value per share on the first day and a sale at net asset value per share on the last day of each period reported. Distributions are assumed, for the purposes of this calculation, to be reinvested at the net asset value per share on the respective payment dates of each Fund. Total return for a period of less than one year is not annualized. Broker commission charges are not included in this calculation. (4) Net of expenses reimbursed by the Trustee. (5) Portfolio turnover ratio excludes securities received or delivered from processing creations or redemptions of SPDRs. See accompanying notes to financial statements. 12 SPDR TRUST, SERIES 1 NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2009 -------------------------------------------------------------------------------- NOTE 1 -- ORGANIZATION SPDR Trust, Series 1 (the "Trust") is a unit investment trust created under the laws of the State of New York and registered under the Investment Company Act of 1940, as amended. The Trust was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the component common stocks, in substantially the same weighting, which comprise the Standard & Poor's 500 Composite Price Index (the "S&P 500 Index"). Each unit of fractional undivided interest in the Trust is referred to as a Standard & Poor's Depositary Receipt ("SPDR"). The Trust commenced operations on January 22, 1993 upon the initial issuance of 150,000 SPDRs (equivalent to three "Creation Units" -- see Note 4) in exchange for a portfolio of securities assembled to reflect the intended portfolio composition of the Trust. Under the Amended and Restated Standard Terms and Conditions of the Trust, as amended ("Trust Agreement"), PDR Services, LLC, as Sponsor of the Trust ("Sponsor"), and State Street Bank and Trust Company, as Trustee of the Trust ("Trustee"), are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience the Trust expects the risk of material loss to be remote. The Sponsor and Trustee have approved an amendment, dated as of November 23, 2009, to the Trust Agreement to change the name of the Trust to "SPDR S&P 500 ETF Trust" and to make related conforming changes, effective on or around January 26, 2010. The investment objective and policies of the Trust will remain the same. NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements: The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. SECURITY VALUATION The value of the Trust's portfolio securities is based on the market price of the securities, which generally means a valuation obtained from an exchange or other market (or based on a price quotation or other equivalent indication of value supplied by an exchange or other market) or a valuation obtained from an independent pricing service. If a security's market price is not readily available or does not otherwise accurately reflect the fair value of the security, the security will be valued by another method that State Street Bank and Trust Company, in its capacity as Trustee, believes will better reflect fair value in accordance with the Trust's valuation policies and procedures. The Trustee has delegated the process of valuing securities for which market quotations are not readily available or do not otherwise accurately reflect the fair value of the security to the Pricing and Investment Committee (the "Committee"). The Committee, subject to oversight by the Trustee, may use fair value pricing in a variety of circumstances, including but not limited to, situations when trading in a security has been suspended or halted. Accordingly, the Trust's net asset value may reflect certain portfolio securities' fair values rather than their market prices. Fair value pricing involves subjective judgments and it is possible that the fair value determination for a security is materially different than the value that could be received on the sale of the security. 13 SPDR TRUST, SERIES 1 NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2009 -------------------------------------------------------------------------------- NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) Effective October 1, 2008, the first day of the Trust's fiscal year 2009, the Trust adopted the authoritative guidance for fair value measurements and the fair value option for financial assets and financial liabilities. The guidance for the fair value option for financial assets and financial liabilities provides the Trust the irrevocable option to measure many financial assets and liabilities at fair value with changes in fair value recognized in earnings. The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The guidance establishes three levels of inputs that may be used to measure fair value: - Level 1-- quoted prices in active markets for identical investments - Level 2-- other significant observable inputs (including, but not limited to, quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) - Level 3-- significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments) Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (e.g., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time as of which the Trust's net assets are computed and that may materially affect the value of the Trust's investments). Examples of events that may be "significant events" are government actions, natural disasters, armed conflicts, acts of terrorism, and significant market fluctuations. Fair value pricing could result in a difference between the prices used to calculate the Trust's net asset value and the prices used by the S&P 500 Index, which, in turn, could result in a difference between the Trust's performance and the performance of the S&P 500 Index. The inputs or methodology used for valuation are not necessarily an indication of the risk associated with investing in those investments. The type of inputs used to value each security is identified in the Schedule of Investments, which also includes a breakdown of the Trust's investments by industry. The following table summarizes the inputs used in valuing the Trust's investments, as of September 30, 2009:

LEVEL 1- LEVEL 2- LEVEL 3- QUOTED OTHER SIGNIFICANT SIGNIFICANT PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL --------------- ----------------- ------------------- --------------- $71,621,512,714 $-- $-- $71,621,512,714

SUBSEQUENT EVENTS Management has evaluated the possibility of subsequent events existing in the Trust's financial statements through November 24, 2009. Management has determined that there are no material events that would require disclosure in the Trust's financial statements through this date. 14 SPDR TRUST, SERIES 1 NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2009 -------------------------------------------------------------------------------- NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) INVESTMENT RISK The Trust invests in various investments which are exposed to risks, such as market risk. Due to the level of risk associated with certain investments it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. An investment in the Trust involves risks similar to those of investing in any fund of equity securities, such as market fluctuations caused by such factors as economic and political developments, changes in interest rates and perceived trends in stock prices. The value of a SPDR will decline, more or less, in correlation with any decline in value of the S&P 500 Index. The values of equity securities could decline generally or could underperform other investments. Further, the Trust would not sell an equity security because the security's issuer was in financial trouble unless that security is removed from the S&P 500 Index. INVESTMENT TRANSACTIONS Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date. DISTRIBUTIONS TO UNITHOLDERS The Trust declares and distributes dividends from net investment income to its unitholders quarterly. The Trust declares and distributes net realized capital gains, if any, at least annually. Effective October 30, 2009, the Trust's Dividend Reinvestment Service is no longer available. Broker-dealers, at their own discretion, may offer a dividend reinvestment service under which additional SPDRs are purchased in the secondary market at current market prices. Investors should consult their broker-dealer for further information regarding any dividend reinvestment service offered by such broker-dealer. EQUALIZATION The Trust follows the accounting practice known as "Equalization" by which a portion of the proceeds from sales and costs of reacquiring the Trust's units, equivalent on a per unit basis to the amount of distributable net investment income on the date of the transaction, is credited or charged to undistributed net investment income. As a result, undistributed net investment income per unit is unaffected by sales or reacquisitions of the Trust's units. FEDERAL INCOME TAX The Trust has qualified and intends to continue to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended. By so qualifying and electing, the Trust will not be subject to federal income taxes to the extent it distributes its taxable income, including any net realized capital gains, for each fiscal year. In addition, by distributing during each calendar year substantially all of its net investment income and capital gains, if any, the Trust will not be subject to federal excise tax. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from those determined in accordance with U.S. generally accepted accounting principles. These differences are primarily due to differing treatments for income equalization, in-kind transactions and losses deferred due to wash sales. Net investment income per unit calculations in the financial highlights for all years presented exclude these differences. 15 SPDR TRUST, SERIES 1 NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2009 -------------------------------------------------------------------------------- NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) The Trust has reviewed the tax positions for the open tax years as of September 30, 2009 and has determined that no provision for income tax is required in the Trust's Financial Statements. The Trust's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. During 2009, the Trust reclassified $43,549,328,499 of non-taxable security losses realized from the in-kind redemption of Creation Units (Note 4) as a decrease to paid in capital in the Statement of Assets and Liabilities. At September 30, 2009, the cost of investments for federal tax purposes was $61,972,554,261, accordingly, gross unrealized appreciation was $9,770,786,639 and gross unrealized depreciation was $121,828,186, resulting in net unrealized appreciation of $9,648,958,453. At September 30, 2009, the Trust had capital loss carryforwards of $472,492,447, $1,530,834,020, $445,024,832, $380,379,645, $1,174,140,896, $1,056,971,322, $917,820,735, and $2,555,216,739 which will expire on September 30, 2010, September 30, 2011, September 30, 2012, September 30, 2013, September 30, 2014, September 30, 2015, September 30, 2016 and September 30, 2017, respectively. During the tax year ended September 30, 2009, the Trust had $403,831,303 of capital loss carryforwards expire. The Trust incurred losses of $596,067,584 during the period November 1, 2008 through September 30, 2009 that were deferred for tax purposes until fiscal 2010. The tax character of distributions paid during the year ended September 30, 2009 was $1,938,730,332 of ordinary income. The tax character of distributions paid during the year ended September 30, 2008 was $1,782,447,532 of ordinary income. The tax character of distributions paid during the year ended September 30, 2007 was $1,323,001,746 of ordinary income. As of September 30, 2009, the components of distributable earnings (excluding unrealized appreciation/(depreciation)) on the tax basis were undistributed ordinary income of $0 and undistributed long term capital gain of $0. NOTE 3 -- TRANSACTIONS WITH THE TRUSTEE AND SPONSOR In accordance with the Trust Agreement, the Trustee maintains the Trust's accounting records, acts as custodian and transfer agent to the Trust, and provides administrative services, including filing of certain regulatory reports. The Trustee is also responsible for determining the composition of the portfolio of securities which must be delivered and/or received in exchange for the issuance and/or redemption of Creation Units of the Trust, and for adjusting the composition of the Trust's portfolio from time to time to conform to changes in the composition and/or weighting structure of the S&P 500 Index. For these services, the Trustee received a fee at the following annual rates for the year ended September 30, 2009:

NET ASSET VALUE OF THE TRUST FEE AS A PERCENTAGE OF NET ASSET VALUE OF THE TRUST ---------------------------- --------------------------------------------------- 10/100 of 1% per annum plus or minus the Adjustment $0 - $499,999,999 Amount 8/100 of 1% per annum plus or minus the Adjustment $500,000,000 - $2,499,999,999 Amount 6/100 of 1% per annum plus or minus the Adjustment $2,500,000,000 - and above Amount

The Adjustment Amount is the sum of (a) the excess or deficiency of transaction fees received by the Trustee, less the expenses incurred in processing orders for creation and redemption of SPDRs and (b) the amounts earned by the Trustee with respect to the cash held by the Trustee for the benefit of the Trust. During the year ended September 30, 2009, the Adjustment Amount reduced the Trustee's fee by $5,999,639. The Adjustment Amount included an excess of net transaction fees from processing orders of $5,124,034 and a Trustee earnings credit of $875,605. Prior to 2008, the Trustee earnings credits were presented separately on the Statement of Operations. 16 SPDR TRUST, SERIES 1 NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2009 -------------------------------------------------------------------------------- NOTE 3 -- TRANSACTIONS WITH THE TRUSTEE AND SPONSOR - (CONTINUED) Effective November 1, 2006, the Trustee changed the method of computing the Adjustment Amount to the Trustee Fee such that all income earned with respect to cash held for the benefit of the Trust is credited against the Trustee's Fee. In addition, during the period from December 1, 2006 through December 31, 2006, the Trustee applied incremental cash balance credits of $5,918,238. The Trustee voluntarily agreed to waive a portion of its fee, as needed, for one year through February 1, 2010, so that the total operating expenses would not exceed 9.45/100 of 1% (0.0945%) per annum of the daily net asset value. The total amount of such reimbursement by the Trustee for the year ended September 30, 2007, September 30, 2008 and September 30, 2009 was $4,970,832, $6,923,474 and $7,102,147 respectively. The Trustee has not entered into an agreement with the Trust to recapture waived fees in subsequent periods and the trustee may discontinue the voluntary waiver. Standard and Poor's ("S&P"), a division of The McGraw Hill Companies, Inc. and State Street Global Markets, LLC ("SSGM") have entered into a License Agreement. The License Agreement grants SSGM, an affiliate of the Trustee, a license to use the S&P 500 Index as a basis for determining the composition of the Portfolio and to use certain trade names and trademarks of S&P in connection with the Portfolio. The Trustee on behalf of the Trust, NYSE Arca, Inc. ("NYSE Arca") and PDR Services LLC (the "Sponsor") have each received a sublicense from SSGM and S&P for the use of the S&P 500 Index and such trade names and trademarks in connection with their rights and duties with respect to the Trust. The License Agreement may be amended without the consent of any of the owners of beneficial interests of SPDRs. Currently, the License Agreement is scheduled to terminate on December 31, 2017, but its term may be extended without the consent of any of the owners of beneficial interests of SPDRs. Pursuant to such arrangements and in accordance with the Trust Agreement, the Trust reimburses the Sponsor for payment of fees under the License Agreement to S&P equal to 0.03% of the daily size of the Trust (based on SPDR closing price and outstanding shares) plus an annual fee of $600,000. TRANSACTIONS WITH AFFILIATED ISSUERS The Trust has invested in securities issued by an affiliate of the Trustee. Investments in State Street Corp., the holding company of State Street Bank & Trust Company, as Trustee, were made according to its representative portion of the S&P 500 Index. The market value of these investments at September 30, 2009 is listed in the Schedule of Investments. NOTE 4 -- SHAREHOLDER TRANSACTIONS With the exception of the Trust's Dividend Reinvestment Service in effect during this fiscal year (see Note 2), SPDRs are issued and redeemed by the Trust only in Creation Unit size aggregations of 50,000 SPDRs. Such transactions are only permitted on an in-kind basis, with a separate cash payment which is equivalent to the undistributed net investment income per SPDR (income equalization) and a balancing cash component to equate the transaction to the net asset value per unit of the Trust on the transaction date. A Transaction Fee of $3,000 is charged in connection with each creation or redemption of Creation Units through the SPDR Clearing Process per participating party per day, regardless of the number of Creation Units created or redeemed. In the case of redemptions outside the SPDR Clearing Process, the Transaction Fee plus an additional amount not to exceed three (3) times the Transaction Fee applicable for one Creation Unit per Creation Unit redeemed, and such amount is deducted from the amount delivered to the redeemer. Transaction Fees are received by the Trustee and used to defray the expense of processing orders. 17 SPDR TRUST, SERIES 1 NOTES TO FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2009 -------------------------------------------------------------------------------- NOTE 5 -- INVESTMENT TRANSACTIONS For the year ended September 30, 2009, the Trust had in-kind contributions, in- kind redemptions, purchases and sales of investment securities of $121,210,400,538, $127,029,236,025, $4,895,516,246, and $4,858,157,651, respectively. Net realized gain (loss) on investment transactions in the Statement of Operations includes losses resulting from in-kind transactions of $43,549,328,499. 18 SPDR TRUST, SERIES 1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- TO THE TRUSTEE AND UNITHOLDERS OF SPDR TRUST, SERIES 1 In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of SPDR Trust, Series 1 (the "Trust") at September 30, 2009, the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trustee; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2009 by correspondence with the custodian, and the application of alternative auditing procedures where confirmations of securities purchased had not been received, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Boston, Massachusetts November 24, 2009 19 SPDR TRUST, SERIES 1 OTHER INFORMATION SEPTEMBER 30, 2009 (UNAUDITED) -------------------------------------------------------------------------------- For Federal income tax purposes, the percentage of Trust distributions which qualify for the corporate dividends paid deduction for the fiscal year ended September 30, 2009 is 100.00%. For the fiscal year ended September 30, 2009 certain dividends paid by the Trust may be designated as qualified dividend income and subject to a maximum tax rate of 15%, as provided for the Jobs and Growth Tax Relief Reconciliation Act of 2003. Complete information will be reported in conjunction with your 2009 Form 1099-DIV. FREQUENCY DISTRIBUTION OF DISCOUNTS AND PREMIUMS BID/ASK PRICE(1) VS. NET ASSET VALUE AS OF SEPTEMBER 30, 2009

BID/ASK PRICE BID/ASK PRICE ABOVE NAV BELOW NAV ------------------------------ ------------------------------ 50 - 99 100 - 199 200 50 - 99 100 - 199 200 BASIS BASIS BASIS BASIS BASIS BASIS POINTS POINTS POINTS POINTS POINTS POINTS ------- --------- ------ ------- --------- ------ 2009............................ 0 0 0 0 0 0 2008............................ 3 4 1 5 1 0 2007............................ 0 0 0 0 0 0 2006............................ 0 0 0 0 0 0 2005............................ 0 0 0 0 0 0

COMPARISON OF TOTAL RETURNS BASED ON NAV AND BID/ASK PRICE(1) The table below is provided to compare the Trust's total pre-tax returns at NAV with the total pre-tax returns based on bid/ask price and the performance of the S&P 500 Index. Past performance is not necessarily an indication of how the Trust will perform in the future.

CUMULATIVE TOTAL RETURN ----------------------- 1 YEAR 5 YEAR 10 YEAR ------ ------ ------- SPDR Trust, Series 1 Return Based on NAV............................. -6.90% 4.99% -2.08% Return Based on Bid/Ask Price................... -6.93% 4.96% -2.45% S&P 500 Index..................................... -6.91% 5.18% -1.52%

AVERAGE ANNUAL TOTAL RETURN --------------------------- 1 YEAR 5 YEAR 10 YEAR ------ ------ ------- SPDR Trust, Series 1 Return Based on NAV............................. -6.90% 0.98% -0.21% Return Based on Bid/Ask Price................... -6.93% 0.97% -0.25% S&P 500 Index..................................... -6.91% 1.02% -0.15%

-------- (1) The Bid/Ask Price is the midpoint of the Consolidated Bid/Ask price at the time the Trust's NAV is calculated. From April 3, 2001 to November 28, 2008, the Bid/Ask Price was the Bid/Ask price on NYSE Amex (formerly the American Stock Exchange), ordinarily 4:00 p.m. Prior to April 3, 2001, the Bid/Ask Price was the Bid/Ask price on the close of trading on the American Stock Exchange, ordinarily 4:15 p.m. 20 SPDR TRUST, SERIES 1 -------------------------------------------------------------------------------- SPONSOR PDR Services LLC c/o NYSE Euronext 11 Wall Street New York, NY 10005 TRUSTEE State Street Bank and Trust Company One Lincoln Street Boston, MA 02111 DISTRIBUTOR ALPS Distributors, Inc. 1290 Broadway Suite 1100 Denver, CO 80203 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP 125 High Street Boston, MA 02110 LEGAL COUNSEL Katten Muchin Rosenman LLP 575 Madison Avenue New York, NY 10022 SPD000204 Exp:12/10