NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
MidCap 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. 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 common stocks, in substantially the same weighting, which comprise
the Standard & Poor's Midcap 400 Composite Price Index (the "S&P MidCap Index"). Each unit of fractional
undivided interest in the Trust is referred to as a Standard & Poor's Depository Receipt ("MidCap SPDR"). The
Trust commenced operations on April 27, 1995 upon the initial issuance of 375,000 MidCap SPDRs (equivalent
to 15 "Creation Units"--see Note 4) in exchange for a portfolio of securities assembled to reflect the intended
portfolio composition of the Trust. Effective September 30, 1997 the fiscal year end of the Trust changed from
December 31 to September 30.
NOTE 2--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Trust are prepared in accordance with generally accepted accounting principles.
The preparation of financial statements in accordance with 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 these estimates. The following is a summary of significant accounting
policies followed by the Trust.
Security Valuation--Portfolio securities are valued based on the closing sale price on the exchange which is
deemed to be the principal market for the security. If no closing sale price is available, then the security is valued
at the mean between the closing bid and offer prices on the exchange which is deemed to be the principal market
for the security. If there are no closing bid and offer price