SEPC aims to provide the price return of SPDR S&P ETF Trust up to a cap established each year, while providing a hedge against the first 10% decline. The outcome period is set for September 1 through August 31 each year. The upside cap is reset at the end of each outcome period. It should be noted that investors give up any potential dividends tied to the SPDR S&P ETF Trust. In addition, the hedge is only against the first 10% decline, should the SPDR S&P ETF Trust decline further than 10%, investors are exposed to the losses on a 1:1 basis. In order to pursue the strategy, the Issuer uses FLEX options to construct the exposure.