SPDR Galaxy Hedged Digital Asset Ecosystem ETF (HECO US) – Portfolio Construction Methodology

The investment approach guiding the actively managed SPDR Galaxy Hedged Digital Asset Ecosystem ETF seeks long-term capital appreciation by allocating to the digital-asset ecosystem and related crypto exposures while embedding an options-based hedge to moderate drawdowns. The portfolio invests in listed equities whose revenues are tied to blockchain, cryptocurrency infrastructure and services, and may complement this with exposure to cryptocurrency via exchange-traded vehicles and futures when liquidity and investability thresholds are met. Security selection emphasizes business linkage to the ecosystem and tradability; the sub-adviser actively sizes positions to reflect conviction and liquidity. A dedicated overlay of exchange-traded options is used to manage portfolio-level volatility and downside tails. Position sizing, issuer and industry concentrations are monitored to avoid undue single-name or sub-theme risk. The hedge overlay is managed continuously, with re-sets and rolls informing trim/sell decisions when exposures or option payoffs deviate from target risk characteristics.

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