Exchange-Traded Funds

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1 NORTH AMERICA Morgan Stanley & Co. Incorporated Dominic Maister +1 (212) Mitchell Schorr +1 (212) Average Tracking Error Rose Meaningfully in 2009 Tracking error rose across all market segments and providers for US-listed ETFs in 2009 and averaged 125 bps. We define tracking error as the difference in total return between an ETF s net asset value (NAV) and its underlying index. In our view, the most common sources of tracking error include fees and expenses, portfolio optimization, and index changes. However, compliance with SEC diversification requirements can lead to extreme tracking error for select ETFs as they may be forced into material weighting and holding deviations from their stated benchmarks. The combination of portfolio optimization and the outperformance of smaller constituents within indices were the primary drivers of increased tracking error for many ETFs. Despite market volatility, ETFs that fully replicate their benchmarks were still able to track their underlying indices quite closely. David Perlman [email protected] +1 (212) Stephen Minar [email protected] +1 (212) What s New This report contains our annual tracking error review of US-listed ETFs with at least one year of trading history. Excluded from the study are active ETFs, ETFs that track a static basket such as HOLDRs, physical commodity, and currency ETFs that do not track indices, as well as leveraged, leveraged inverse, and inverse ETFs that have daily return targets. Recent ETF Reports Strong Fourth Quarter Flows Result in 2009 ETF Net Cash Inflows of $119 Billion January 28, 2010 Emerging Markets Allocation Update January 22, 2010 Fixed Income ETF Asset Allocation Model Update January 14, 2010 Overview and Strategies January 6, 2010 Fixed Income: Accessing Emerging Markets Debt Through ETFs and CEFs November 24, 2009 Quarterly Report: Over $730 Billion in 794 ETFs November 18, 2009 We found a broader range and magnitude of tracking error in 2009 versus In 2009, the range of tracking increased significantly and the percentage of ETFs with tracking error greater than 100 bps increased from 13.5% in 2008 to 37.5% in In addition, the percentage of ETFs with tracking error of less than or equal to 25 bps fell from 44.6% to 22%. In some ETF categories, weighted average tracking error was slightly lower than fund expenses. In 2009, the overall US major market and US style categories had weighted average tracking error that averaged 18 and 14 bps less than their respective expense ratios, while ETFs based on US dividend and currency indices averaged 23 bps and 45 bps less than their respective expense ratios. As with any investment, index-linked ETFs have risks. These include the general risks associated with investing in securities, potential tracking error and the possibility that particular indices may lag other market segments or active managers. ETFs include index-linked funds regulated under the Investment Company Act of 1940 that trade on US securities exchanges under exemptive relief from the Securities and Exchange Commission (SEC), as well as grantor trusts consisting of a basket of stocks and marketed as "HOLDRS". U.S. listed, open-end fund ETFs must be offered under and sold only pursuant to a Prospectus. U.S. listed ETFs may not be marketed or sold in a number of jurisdictions and may not be suitable for all investors. Morgan Stanley Sales Personnel should check with the Law Division to clarify whether they may market the ETFs in a particular jurisdiction. Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.

2 Average Tracking Error Rose Meaningfully in 2009 Introduction Tracking error may be a concern to ETF investors. ETFs are designed with the objective of providing access to and replicating the performance of specific indices. One of the primary goals of ETF portfolio managers is to minimize tracking error, which we define as the difference in total return between an ETF s net asset value (NAV) and its underlying index. Therefore, tracking error can indicate to us how well managers have met their objectives. Factors such as fees and expenses, diversification requirements, portfolio optimization (holding a representative sample as opposed to a full replication), index turnover, and dividend reinvestment policy may cause an ETF s performance to deviate from its underlying index. We analyzed 2009 tracking error for US-listed ETFs. Our analysis is based on the annual total return (including dividends) of ETF net asset values (NAVs) versus underlying benchmark indices. Exhibit 9 contains 2009 tracking error data for each US-listed ETF with an inception date prior to January 1, Excluded from the study are active ETFs, ETFs that track a static basket such as HOLDRs, physical commodity, and currency ETFs that do not track indices, as well as leveraged, inverse, and leveraged inverse ETFs that have daily return targets. Observations & Analysis For 2009, average and weighted average tracking error for all US listed ETFs was 125 and 113 basis points, respectively. This reflected a significant increase of 73 bps in the average tracking error as well as a meaningful increase in the weighted average tracking error from 2008 levels of 52 and 39 bps, respectively. Exhibit 1 displays the tracking error for each major market segment. Within US Equity, tracking error increased to an average of 84 bps in 2009 from 50 in We note that all US Equity market segments saw meaningful increases in their averages. For example, in 2009 US style ETFs exhibited average tracking error of 54 bps, up from 19 in On a weighted average basis, tracking error performance was mixed among US Equity ETFs with US style experiencing the largest year-over-year percentage increase and 52 of the 57 ETFs within the category exhibiting higher tracking error than the 2008 weighted average of 6 bps. Despite the increase, US style remains the top performing market segment in terms of tracking error, on an absolute basis. Average tracking error for US dividend was up 26 bps, while its weighted average was down 122 bps year-over-year. The decline in the weighted averages was primarily related to the ishares DJ Select Dividend ETF (DVY), which accounts for 46 percent of the US dividend ETF s assets, as its tracking error declined 188 bps from DVY s 2008 tracking was negatively impacted by a high degree of turnover in its benchmark, resulting from many higher-yielding companies significantly reducing (or eliminating) dividends and, thus, being removed from the index. ETFs based on international indices exhibited the largest absolute level of tracking error in our study. In 2009, average and weighed average tracking error for international ETFs was 194 and 232 bps respectively, versus the 65 and 92 bps observed in This occurred despite the average expense ratio within the market segment rising only modestly (57 versus 55 bps). International also accounted for 28 of the 54 ETFs with 2009 tracking error greater than or equal to 300 bps (all of which trailed their respective indices). Noteworthy, in our view, is the relatively large tracking error exhibited by some ETFs tracking emerging market (EM) indices. Seven of the nine international ETFs with the highest 2009 tracking error are based on EM indices and, on average, the seven trailed their respective underlying index by 836 bps. We attribute this primarily to optimization techniques, which may increase Exhibit ETF Tracking Error by Market Segment US US US US Asset US US Sector / Fixed Major Market Dividend Custom Allocation Style Industry International Global Income Commodity Currency Average (bps) Weighted Avg (bps) Median (bps) Low (bps) High (bps) ,709 1,070 1,368 1, to 25 bps (%) to 50 bps (%) to 75 bps (%) to 100 bps (%) > 100 bps (%) Average Exp Ratio ETFs w/ TE <= Exp Rat (%) Number of ETFs Source. Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, Tracking Error displayed as an absolute value 2

3 tracking error, particularly when smaller constituents within an index have wide performance disparities from the broader index. For example, the SPDR S&P Emerging Asia Pacific ETF (GMF), which currently holds 222 of the 1,392 securities in its benchmark, had negative tracking error of 746 bps. This was largely attributable to fund s relative underweight in smaller holdings, which outperformed the broader index. Global ETF tracking error also increased substantially in Global ETFs had the 2 nd largest average tracking error (158 bps) in 2009 vs. 44 in Approximately 43% of Global ETFs exhibited tracking error of at least 100 bps and only one ETF had tracking error that was less than or equal to 5 bps. We note that the results were slightly skewed by PowerShares Global Listed Private Equity Portolio (PSP), whose NAV return lagged its index by 1,368 bps due to special tax treatment of private equity companies held in its portfolio 1. Tracking error within the fixed income ETF market segment increased for the second consecutive year. Tracking error in 2009 was 75 bps greater than We attribute much of this increase to the higher levels of tracking error observed for three high yield funds, which ranged from 378 bps for the ishares iboxx $ High Yield Corporate Bond Fund (HYG) to 1,299 bps for the SPDR Barclays Capital High Yield Bond ETF (JNK). We believe there were two primary reasons for JNK s increase: 1) Prior to 12/24/09, JNK utilized a cash creation/ redemption process. As the high yield market began to rally in early 2009 and there was significant demand for new shares, cash coming into the fund resulted in drag and 2) due to illiquidity in the underlying market for lower rated securities, the fund was underweight a portion of the market that outperformed. On average, the three preferred ETFs experienced the second highest tracking error among fixed income ETFs (343 bps). In our view, optimization, illiquidity and diversification requirements all contributed to roughly 200 bps of tracking error above the group average in Our study indicates that average tracking error was skewed by extreme deviations in select ETFs. We note that SEC diversification requirements adversely impacted the Vanguard Telecom Services ETF (VOX) which had tracking error of 1,709 bps in Additionally, the SPDR Barclays Capital High Yield Bond ETF (JNK) trailed due to cash drag 1 To maintain its Registered Investment Company (RIC) status, PSP must pass an IRS qualifying income requirement test, which states that 90% of the funds gross income must be derived from certain enumerated sources. As Publicly Traded Partnerships (PTPs) do not publicly disseminate sources of income, and in order to avoid any potential complications, PSP sells completely out of these PTPs at each quarter-end. and illiquidity in the underlying portfolio and the PowerShares Global Listed Private Equity Portfolio (PSP) experienced large tracking error due to special tax treatment of select companies held in its portfolio. Excluding the aforementioned ETFs, the range of tracking error would have been 610 bps narrower. We analyzed ETF tracking error by market segment from 2002 to Exhibit 7 illustrates the average annual absolute tracking error for all ETF market segments from 2002 to In general, US Equity market segments such as US major market and US style ETFs track their indices more closely due to lower expense ratios and easier/cheaper to access underlying markets, which typically leads to lower fees and less optimization. Conversely, international and global ETFs are more likely to experience higher levels of tracking error as these ETFs continue to penetrate markets that are more difficult to access, which typically leads to a greater need for optimization and increases idiosyncratic risk. Finally, we note that the fixed income ETF market segment, which typically had minimal tracking error between 2003 to 2006 now ranks as the 9 th best performer. Prior to 2008, US fixed income ETFs in our study included just seven ETFs, five of which were primarily or entirely Treasury/Agency. Our 2009 data includes 54 ETFs from market segments that also include high yield, international debt, mortgages and municipal bonds. In addition to higher fees, many of the more recently issued ETFs are more likely to optimize, which, in many cases, results in higher tracking error. Historically, tracking error by ETF provider was more easily explained by expense ratios, with lower fee managers exhibiting smaller deviations. During the period from 2002 to 2009, Vanguard consistently ranked among the top performers in terms of tracking error (Exhibit 8) and had the lowest average expense ratio each year. However, in this study, PowerShares DB Commodity Services and US Commodity Fund exhibited the 4 th and 6 th lowest average tracking error (based on providers with at least five ETFs), despite having higher average fees (Exhibit 2). In our view, this shift is a result of the continued evolution of the ETF industry. While many, lower fee providers have been adversely affected by SEC diversification requirements on select ETFs, some newer providers, with higher average fees, have come to market with products based on indexes that can be more fully replicated. Importantly, forced optimization resulting from diversification mandates tends to be more common on narrower indices, which also tend to have fewer assets. As a result, there can be dramatic differences between average and weighted average tracking error. Most notably, compared to a straight average, weighted average tracking error was 54 and 80 bps lower for Vanguard and State Street (SSgA), respectively. 3

4 Exhibit ETF Tracking Error by Provider Average Weighted Avg. Median Average ETFs with ETF Tracking Tracking Tracking Expense Tracking Error Number Industry Issuer Error (bps)* Error (bps)* Error (bps)* Ratio (bps)* <= Exp Ratio (%) of ETFs Assets (%) Fidelity Management & Research The Vanguard Group BlackRock VTL Associates ALPS Fund Services DB Commodity Services United States Commodity Funds Rydex Investments WisdomTree First Trust Advisors State Street Global Advisors PowerShares Capital Claymore Advisors XShares Advisors GreenHaven Commodity Services Van Eck Associates Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg. *Absolute Value. We found a broader range and magnitude of tracking error in 2009 versus In 2009, the range of tracking error jumped 520 bps to 1709 bps. Moreover, we observed more cases of high tracking error in 2009 than in In 2009, 9.6% (54 / 563) of the ETFs included in this study exhibited tracking error that equaled or exceeded 300 bps. This compares with less than 1% (4 / 505) of the ETFs we analyzed in Conversely, in 2009 just 3.9% (22 / 563) of the ETFs included in this study exhibited tracking error less than or equal to 5 bps versus 12.9% (65 / 505) in As a result of greater absolute and relative tracking error in 2009, ETF tracking error averaged 6.3% of index returns, which is almost double the 2008 level of 3.6%. We also highlight that just 27% of ETFs in 2009 exhibited tracking error less than or equal to their respective expense ratios compared to 69% in Exhibits 3 and 4 list the ETFs with the highest and lowest absolute tracking error in The high level of new issuance over the past few years has broadened the range and complexity of ETFs. Some ETFs follow newer or less well-known indexes that may be harder to track. At the same time, some providers are now tracking modified cap-weighted indices that may make them easier to replicate as these custom indices may eliminate forced diversification and reduce the need to optimize. Exhibit 3 ETFs with the Highest 2009 Tracking Error Expense Pre-Expense Tracking Ratio Tracking ETF Name Ticker Error (bps) (bps) Error (bps) Vanguard Telecom Services ETF VOX 1, ,734 PowerShares Global Listed Private Equity Portfolio PSP (1,368) 60 (1,308) SPDR Barclays Capital High Yield Bond ETF JNK (1,299) 40 (1,259) PowerShares High Yield Corporate Bond Portfolio PHB (1,099) 50 (1,049) PowerShares FTSE RAFE Emerging Markets PXH (1,070) 75 (995) PowerShares DWA Emerging Markets Technical Leaders Portfolio PIE (999) 90 (909) SPDR S&P Emerging Europe ETF GUR (928) 60 (868) SPDR S&P Emerging Markets ETF GMM (761) 60 (701) SPDR S&P Emerging Asia Pacific ETF GMF (746) 60 (686) ishares FTSE NAREIT Mortgage REITs Index Fund REM (702) 48 (654) PowerShares MENA Frontier Countries Portfolio PMNA (690) 95 (595) SPDR S&P International Materials Sector ETF IRV (677) 50 (627) SPDR S&P Emerging SmallCap ETF EWX (674) 65 (609) ishares MSCI Emerging Markets Index Fund EEM (671) 75 (596) Claymore/Delta Global Shipping Index ETF SEA (656) 65 (591) Claymore/Dorchester - The Capital Markets Bond Index ETF UBD ishares S&P U.S. Preferred Stock Index Fund PFF (574) 48 (526) SPDR S&P International Mid Cap ETF MDD (560) 45 (515) WisdomTree Middle East Dividend Fund GULF (554) 88 (466) ishares MSCI Spain Index Fund EWP (547) 56 (491) Vanguard Energy ETF VDE Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg 4

5 Exhibit 4 ETFs with Lowest 2009 Tracking Error Expense Pre-Expense Tracking Ratio Tracking ETF Name Ticker Error (bps) (bps) Error (bps) SPDR Dow Jones Global Real Estate ETF RWO Vanguard Large-Cap ETF VV (0) Vanguard Mid-Cap ETF VO ishares S&P 500 Value Index Fund IVE (1) SPDR S&P Homebuilders ETF XHB ishares MSCI Netherlands Index Fund EWN (1) ishares MSCI Sweden Index Fund EWD (2) PowerShares FTSE RAFI Asia Pacific ex-japan Portfolio PAF (2) SPDR Biotech ETF XBI (2) SPDR Barclays Capital Intermediate Term Treasury ETF ITE (3) ishares S&P Conservative Allocation Fund AOK (3) Vanguard Dividend Appreciation ETF VIG (4) ishares MSCI Germany Index Fund EWG (4) ishares Barclays TIPS Bond Fund TIP (4) SPDR Dow Jones Large Cap Value ETF ELV (4) ishares Russell 2000 Index Fund IWM (4) Vanguard Extended Market ETF VXF (4) Vanguard Growth ETF VUG (5) Vanguard Small-Cap Growth ETF VBK ishares S&P Growth Allocation Fund AOR (5) ishares Barclays Agency Bond Fund AGZ (5) BLDRS Emerging Markets 50 ADR Index Fund ADRE Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg For select ETFs, a major source of tracking error relates to SEC diversification requirements. Most index-linked ETFs are registered under the SEC Investment Company Act of This act sets diversification requirements such that, at a rebalancing, no ETF can invest more than 25% of its assets in any single issue. In addition, securities that have a weighting of 5% or more cannot compose more than 50% of total fund assets. As the weighting of some companies within many indices are higher than these thresholds, several ETFs statistically optimize their holdings. Funds optimizing for diversification requirements tend to exhibit higher levels of tracking error. Their portfolio weightings can differ significantly from the indices they are designed to track. As shown in Exhibit 5, as of 12/31/09, the Vanguard Telecommunication Services ETF (VOX) had 19.6% invested in AT&T and 18.4% in Verizon compared to the 49% and 28% weights that the companies make up of VOX s Exhibit 5 SEC Diversification Requirements Force Optimization MSCI US Telecom Services Index VOX Difference Name Weight (%) Weight (%) (%) AT&T Verizon Communications American Tower (0.1) Crown Castle International (1.3) CenturyTel (1.3) Sprint Nextel (0.6) Qwest Communications Intl (0.7) NII Holdings (1.3) Windstream (0.8) SBA Communications (1.1) Source: FactSet, Morgan Stanley Research. Data as of 12/31/09 underlying index, the MSCI US Investable Market Telecom Services Index. During 2009, AT&T and Verizon returned roughly -2%, which was 32% below VOX s NAV return of 30%. This disparity partially explains VOX s tracking error of roughly 1,709 bps. As an alternative to optimizing, providers can base ETFs on an index customized to comply with diversification requirements. For example, the ishares Dow Jones US Telecom Sector Index Fund (IYZ) tracks the DJ Telecom Select Sector Index, as opposed to the more traditional DJ Telecom Sector Index. The Select index is modified such that 1) the weight of any individual security is restricted to 25%, 2) the aggregate weight of individual securities with weights of 5% or more is restricted to 45%, 3) the aggregate weight of the five largest companies in the index is restricted to 65%. As shown in Exhibit 6, by tracking the Select index, IYZ is able to fully replicate its benchmark index. While this practice is relatively common among providers and will reduce tracking error it also highlights the importance of fully understanding underlying index methodology as the Select Index has very different weights from the more traditional DJ Telecom Sector Index. Exhibit 6 Tilting an Index Reduces the Need to Optimize DJ US Telecommunications Sector Select Sector Difference Name Index (%) Index (%) (%) AT & T Verizon Communications CenturyTel (3.0) Sprint Nextel (2.7) Qwest Communications Intl (3.1) Source: Dow Jones, Morgan Stanley Research. Data as of 1/29/10 5

6 While some optimization may be necessary, select ETFs optimize more aggressively with the goal of reducing trading spreads and creating more liquid underlying portfolios. The ishares MSCI Emerging Markets ETF (EEM) is relatively heavily optimized (exposure to 689 stocks 426 stocks and 3 country based ETFs which together hold an additional 263 stocks out of the 767 stocks in the MSCI Emerging Markets Index. EEM had a pre-expense tracking error of 596 bps (671 bps net of expenses) bps in Interestingly, Vanguard s EM ETF, VWO, which tracks the same index, had a pre-expense tracking error of just 37 bps (10 bps net of expenses). VWO seeks to fully replicate the MSCI EM Index and has a 45 bps lower expense ratio than EEM. Less optimization and lower fees both work to restrain VWO s tracking error relative to EEM. Several ETFs based on broader indices have successfully optimized to reduce costs and turnover. For example, the ishares MSCI EAFE Small Cap Index Fund (SCZ) holds a representative sampling of its underlying index. As of 12/31/09, SCZ held 709 of the 2,256 securities in the MSCI EAFE Small Cap Index. In our view, this type of optimization could lead to modest tracking error. However, SCZ s 2009 return matched its benchmark perfectly. Tracking error experienced by investors may be higher than our observed values. The actual performance that investors achieve may be affected by commissions, small premiums or discounts, and bid/ask spreads. Each of these may contribute to differences in market performance relative to net asset value (NAV) performance and the performance of an ETF s underlying index. However, authorized participants typically can reduce the impact of spreads and premiums and discounts for large orders by seeking liquidity in the underlying market and creating or redeeming shares at, or close to, NAV. The tables on the following pages contain data for all ETFs with an inception date prior to January 1, The first tracking error number includes the drag effect of fund expenses. We then provide each fund s expense ratio followed by a second tracking error number, which adds the expense ratio to the NAV return and thus compares the ETFs pre-expense return to the index return. Using the second tracking error number, investors can determine how closely a manager was able to track an index had it not been for fund expenses. While some ETF providers adjust NAVs to account for fair value pricing, where possible, we have eliminated this adjustment to more accurately gauge tracking error vs. benchmarks, which are not fair value adjusted. Also, note that in computing averages for group tracking error, we use absolute numbers to show the relative degree of tracking error. Computing averages based on actual numbers would result in positive numbers offsetting negative numbers in the calculations. 6

7 Exhibit 7 Average Absolute Tracking Error by ETF Market Segment from 2002 to 2009 Best US Major Market 10 bps Fixed Income 13 bps Fixed Income 17 bps Fixed Income 18 bps Fixed Income 9 bps US Style 27 bps US Style 19 bps US Style 54 bps US Style 15 bps US Major Market 27 bps US Dividend 23 bps US Major Market 19 bps US Major Market 31 bps US Dividend 33 bps US Major Market 28 bps US Major Market 63 bps US Sector/Industry 45 bps US Style 35 bps US Major Market 27 bps US Style 23 bps US Style 33 bps US Major Market 37 bps Currency 32 bps US Asset Allocation 84 bps ETF Average 47 bps Global 53 bps US Style 28 bps ETF Average 54 bps ETF Average 52 bps ETF Average 57 bps Commodity 40 bps Currency 91 bps Global 48 bps ETF Average 79 bps ETF Average 52 bps US Dividend 56 bps US Dividend 58 bps Fixed Income 59 bps Global 44 bps US Custom 97 bps Tracking Error International 95 bps US Sector/Industry 87 bps International 146 bps US Sector/Industry 57 bps Global 70 bps International 75 bps US Sector/Industry 62 bps Global 76 bps US Custom 78 bps US Sector/Industry 61 bps Global 63 bps International 71 bps US Sector/Industry 59 bps Global 73 bps US Custom 74 bps US Sector/Industry 50 bps ETF Average 52 bps International 65 bps US Dividend 100 bps US Sector/Industry 104 bps Commodity 108 bps US Custom 98 bps International 103 bps US Custom 98 bps International 82 bps Fixed Income 69 bps ETF Average 125 bps Commodity 91 bps US Dividend 74 bps Fixed Income 144 bps Currency 109 bps US Custom 77 bps Global 158 bps US Asset Allocation 147 bps International 194 bps Worst Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, Tracking Error displayed as an absolute value 7

8 Exhibit 8 Average Absolute Tracking Error by ETF Provider from 2002 to 2009 Best Bank of New York 9 bps Bank of New York 25 bps The Vanguard Group 13 bps Fidelity Management & Research 17 bps Fidelity Management & Research 10 bps State Street Global Advisors 26 bps Fidelity Management & Research 18 bps Fidelity Management & Research 44 bps The Vanguard Group 17 bps The Vanguard Group 25 bps State Street Global Advisors 34 bps Bank of New York 30 bps The Vanguard Group 28 bps The Vanguard Group 34 bps DB Commodity Services 25 bps The Vanguard Group 83 bps State Street Global Advisors 21 bps State Street Global Advisors 51 bps Rydex Investments 45 bps State Street Global Advisors 32 bps Bank of New York 28 bps Van Eck Associates 43 bps WisdomTree 31 bps BlackRock 85 bps ETF Average 47 bps ETF Average 79 bps ETF Average 52 bps Rydex Investments 41 bps State Street Global Advisors 35 bps Rydex Investments 50 bps The Vanguard Group 41 bps VTL Associates 85 bps BlackRock 57 bps BlackRock 90 bps BlackRock 54 bps ETF Average 54 bps Rydex Investments 39 bps BlackRock 54 bps First Trust Advisors 43 bps ALPS Fund Services 85 bps Fidelity Management & Research 62 bps The Vanguard Group 55 bps ETF Average 52 bps Fidelity Management & Research 56 bps Rydex Investments 43 bps DB Commodity Services 87 bps Bank of New York 85 bps BlackRock 59 bps BlackRock 58 bps ETF Average 57 bps BlackRock 48 bps Van Eck Associates 95 bps Tracking Error PowerShares Capital 98 bps PowerShares Capital 63 bps PowerShares Capital 71 bps First Trust Advisors 84 bps First Trust Advisors 61 bps PowerShares Capital 76 bps WisdomTree 80 bps State Street Global Advisors 49 bps ETF Average 52 bps PowerShares Capital 58 bps United States Commodity Funds 96 bps Rydex Investments 105 bps ETF Average 125 bps Claymore Advisors 90 bps United States Commodity Funds 66 bps WisdomTree 129 bps DB Commodity Services 100 bps Van Eck Associates 67 bps First Trust Advisors 140 bps Claymore Advisors 74 bps State Street Global Advisors 142 bps XShares Advisors 147 bps London & Capital Asset Management 225 bps PowerShares Capital 178 bps Claymore Advisors 201 bps XShares Advisors 253 bps GreenHaven Commodity Services 282 bps Worst Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, Tracking Error displayed as an absolute value 8

9 Exhibit ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking US Major Market ETFs Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Broad Market ishares Dow Jones U.S. Index Fund IYY (24) 20 (4) ishares Russell 3000 Index Fund IWV (14) 20 6 PowerShares Dynamic Market Portfolio PWC (89) 60 (29) Vanguard Extended Market ETF VXF (4) Vanguard Total Stock Market ETF VTI Fidelity Nasdaq Composite Index Tracking Stock ONEQ (44) 30 (14) First Trust Value Line 100 ETF FVL (109) 70 (39) ishares NYSE Composite Index Fund NYC (7) ishares S&P 1500 Index Fund ISI (19) 20 1 PowerShares FTSE RAFI US 1500 Small-Mid Portfolio PRFZ The SPDR Dow Jones Total Market ETF TMW (49) 20 (29) WisdomTree Dividend ex-financials Fund DTN (88) 38 (50) WisdomTree Earnings Index EXT (43) 28 (15) WisdomTree Total Dividend Fund DTD (49) 28 (21) Large-Cap Diamonds DIA (21) 18 (3) ishares Russell 1000 Index Fund IWB (10) 15 5 ishares S&P 100 Index Fund OEF (15) 20 5 ishares S&P 500 Index Fund IVV (6) 9 3 PowerShares QQQ QQQQ (16) 20 4 PowerShares FTSE RAFI US 1000 Portfolio PRF (47) 39 (8) Rydex Russell Top 50 ETF XLG (25) 20 (5) Rydex S&P Equal Weight ETF RSP (127) 40 (87) SPDR S&P 500 ETF SPY (19) 9 (10) Vanguard Large-Cap ETF VV (0) WisdomTree LargeCap Dividend Fund DLN (60) 28 (32) First Trust Large Cap Core AlphaDEX Fund FEX (112) 70 (42) First Trust NASDAQ-100 Equal Weighted Index Fund QQEW (97) 60 (37) ishares NYSE 100 Index Fund NY (17) 20 3 PowerShares Dynamic Large Cap Portfolio PJF (82) 60 (22) RevenueShares Large Cap ETF RWL (48) 49 1 The SPDR Dow Jones Large Cap ETF ELR (9) Vanguard Mega Cap 300 ETF MGC (9) 13 4 WisdomTree Earnings 500 Index EPS (56) 28 (28) WisdomTree Earnings Top 100 Index EEZ (157) 38 (119) Mid-Cap ishares Russell Midcap Index Fund IWR (22) 20 (2) ishares S&P MidCap 400 Index Fund IJH (15) 20 5 S&P MidCap 400 Depository Receipts MDY (53) 25 (28) Vanguard Mid-Cap ETF VO Claymore/Zacks Mid-Cap Core ETF CZA (334) 60 (274) First Trust Mid Cap Core AlphaDEX Fund FNX (128) 70 (58) PowerShares Dynamic Mid Cap Portfolio PJG (130) 60 (70) PowerShares NASDAQ Next-Q Portfolio PNXQ RevenueShares Mid Cap ETF RWK (85) 54 (31) SPDR Dow Jones Mid Cap ETF EMM (36) 25 (11) WisdomTree MidCap Dividend Fund DON (58) 38 (20) WisdomTree MidCap Earnings Index EZM (94) 38 (56) Small-Cap ishares Russell 2000 Index Fund IWM (4) ishares S&P SmallCap 600 Index Fund IJR (8) Vanguard Small-Cap ETF VB First Trust Small Cap Core AlphaDEX Fund FYX (125) 70 (55) PowerShares Dynamic Small Cap Portfolio PJM (135) 60 (75) PowerShares FTSE NASDAQ Small Cap Portfolio PQSC (36) PowerShares Zacks Small Cap Portfolio PZJ (12) RevenueShares Small Cap ETF RWJ (87) 54 (33) SPDR Dow Jones Small Cap ETF DSC (72) 25 (47) WisdomTree SmallCap Dividend Fund DES (84) 38 (46) WisdomTree SmallCap Earnings Index EES (67) 38 (29) Micro-Cap ishares Russell Microcap Index Fund IWC (266) 60 (206) First Trust Dow Jones Select MicroCap Index Fund FDM (104) 60 (44) PowerShares Zacks Micro Cap Portfolio PZI US Major Market Average* Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 9

10 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking US Style ETFs Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Broad Market Growth/Value ishares Russell 3000 Growth Index Fund IWZ (33) 25 (8) ishares Russell 3000 Value Index Fund IWW (11) First Trust Multi Cap Growth AlphaDEX Fund FAD (106) 70 (36) First Trust Multi Cap Value AlphaDEX Fund FAB (141) 70 (71) Large-Cap Growth/Value/Core ishares Morningstar Large Growth Index Fund JKE (42) 25 (17) ishares Russell 1000 Growth Index Fund IWF (28) 20 (8) ishares S&P 500 Growth Index Fund IVW (22) 18 (4) PowerShares Dynamic Large-Cap Growth Portfolio PWB (98) 60 (38) Vanguard Growth ETF VUG (5) First Trust DB Strategic Value Index Fund FDV (78) 65 (13) First Trust Large Cap Growth Opportunities AlphaDEX Fu FTC (101) 70 (31) First Trust Large Cap Value Opportunities AlphaDEX Fun FTA (135) 70 (65) First Trust NASDAQ-100 Ex-Technology Sector Index Fu QQXT (90) 60 (30) Rydex S&P 500 Pure Growth ETF RPG (63) 35 (28) SPDR Dow Jones Large Cap Growth ETF ELG (30) 20 (10) Vanguard Mega Cap 300 Growth ETF MGK (16) 13 (3) WisdomTree LargeCap Growth Fund ROI (79) 38 (41) ishares Morningstar Large Value Index Fund JKF (12) ishares Russell 1000 Value Index Fund IWD (6) ishares S&P 500 Value Index Fund IVE (1) PowerShares Dynamic Large Cap Value Portfolio PWV (94) 60 (34) Vanguard Value ETF VTV ishares Morningstar Large Core Index Fund JKD (26) 20 (6) Rydex S&P 500 Pure Value ETF RPV (124) 35 (89) SPDR Dow Jones Large Cap Value ETF ELV (4) Vanguard Mega Cap 300 Value ETF MGV WisdomTree LargeCap Value Fund EZY (81) 38 (43) Mid-Cap Growth/Value/Core ishares Morningstar Mid Growth Index Fund JKH (43) 30 (13) ishares Russell Midcap Growth Index Fund IWP (32) 25 (7) ishares S&P MidCap 400 Growth Index Fund IJK (23) 25 2 Vanguard Mid-Cap Growth ETF VOT (16) 15 (1) PowerShares Dynamic Mid Cap Growth Portfolio PWJ (94) 60 (34) Rydex S&P MidCap 400 Pure Growth ETF RFG (60) 35 (25) SPDR Dow Jones Mid Cap Growth ETF EMG (18) 25 7 ishares Morningstar Mid Value Index Fund JKI (43) 30 (13) ishares Russell Midcap Value Index Fund IWS (19) 25 6 ishares S&P MidCap 400 Value Index Fund IJJ (23) 25 2 Vanguard Mid-Cap Value ETF VOE (9) 15 6 PowerShares Dynamic Mid Cap Value Portfolio PWP (142) 60 (82) Rydex S&P Midcap 400 Pure Value ETF RFV (84) 35 (49) SPDR DJ Wilshire Mid Cap Value ETF EMV (40) 25 (15) ishares Morningstar Mid Core Index Fund JKG (35) 25 (10) Small-Cap Growth/Value/Core ishares Russell 2000 Growth Index Fund IWO (9) ishares S&P SmallCap 600 Growth Index Fund IJT (13) Vanguard Small-Cap Growth ETF VBK ishares Morningstar Small Growth Index Fund JKK (36) 30 (6) PowerShares Dynamic Small Cap Growth Portfolio PWT (174) 60 (114) Rydex S&P SmallCap 600 Pure Growth ETF RZG (11) SPDR Dow Jones Small Cap Growth ETF DSG (54) 25 (29) ishares Russell 2000 Value Index Fund IWN (18) 25 7 ishares S&P SmallCap 600 Value Index Fund IJS (11) Vanguard Small-Cap Value ETF VBR ishares Morningstar Small Value Index Fund JKL (41) 30 (11) PowerShares Dynamic Small Cap Value Portfolio PWY (117) 60 (57) Rydex S&P SmallCap 600 Pure Value ETF RZV SPDR Dow Jones Small Cap Value ETF DSV (26) 25 (1) ishares Morningstar Small Core Index Fund JKJ (46) 25 (21) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value US Style Average*

11 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking US Sector and Industry ETFs Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Consumer Discretionary Consumer Discretionary Select Sector SPDR XLY (17) 21 4 ishares DJ US Cons. Services Sector Index Fund IYC (61) 48 (13) Vanguard Consumer Discretionary ETF VCR (24) 25 1 First Trust Consumer Discretionary AlphaDEX Fund FXD (147) 70 (77) PowerShares Dynamic Consumer Discretionary Portfolio PEZ (86) 60 (26) Rydex S&P Equal Weight Consumer Discretionary ETF RCD SPDR Retail ETF XRT (66) 35 (31) ishares Dow Jones US Home Construction ITB (45) 48 3 SPDR S&P Homebuilders ETF XHB PowerShares Dynamic Building and Construction Portfoli PKB (80) 60 (20) PowerShares Dynamic Leisure & Entertainment Portfolio PEJ (201) 60 (141) PowerShares Dynamic Media Portfolio PBS (282) 60 (222) PowerShares Dynamic Retail Portfolio PMR (106) 60 (46) Consumer Staples Consumer Staples Select Sector SPDR XLP (32) 21 (11) ishares DJ US Consumer Goods Sector Index Fund IYK (67) 48 (19) Vanguard Consumer Staples ETF VDC First Trust Consumer Staples AlphaDEX Fund FXG (110) 70 (40) PowerShares Dynamic Consumer Staples Portfolio PSL (91) 60 (31) Rydex S&P Equal Weight Consumer Staples ETF RHS (76) 50 (26) PowerShares Dynamic Food & Beverage Portfolio PBJ (90) 60 (30) Energy Energy Select Sector SPDR XLE (27) 21 (6) ishares Dow Jones US Energy Sector Index Fund IYE Vanguard Energy ETF VDE First Trust Energy AlphaDEX Fund FXN (124) 70 (54) PowerShares Dynamic Energy Portfolio PXI (7) Rydex S&P Equal Weight Energy ETF RYE (117) 50 (67) ishares Dow Jones U.S. Oil Equipment & Services IEZ (102) 48 (54) ishares Dow Jones U.S. Oil & Gas Exploration & Product IEO (76) 48 (28) PowerShares Dynamic Oil & Gas Services Portfolio PXJ (131) 60 (71) SPDR Oil & Gas Exploration & Production ETF XOP (41) 35 (6) First Trust ISE-Revere Natural Gas Index Fund FCG (66) 60 (6) PowerShares Dynamic Energy & Exploration Portfolio PXE (62) 60 (2) SPDR Oil & Gas Equipment & Services ETF XES (50) 35 (15) Financials Financials Select Sector SPDR XLF ishares Dow Jones US Financial Sector Index Fund IYF (23) Vanguard Financials ETF VFH First Trust Financial AlphaDEX Fund FXO (157) 70 (87) PowerShares Dynamic Financial Portfolio PFI (5.0) (3.9) (107) 60 (47) Rydex S&P Equal Weight Financials ETF RYF (161) 50 (111) RevenueShares Financials Sector Fund RWW (72) 45 (27) ishares Dow Jones Broker-Dealers Index Fund IAI (79) 48 (31) ishares Dow Jones US Financial Services Index Fund IYG (18) KBW Bank ETF KBE (1.4) (1.8) KBW Regional Banking ETF KRE (22.0) (22.1) KBW Capital Markets ETF KCE (66) 35 (31) ishares Dow Jones U.S. Regional Banks Index Fund IAT (10.8) (10.5) (29) PowerShares Dynamic Banking Portfolio PJB (22.8) (21.9) (85) 60 (25) ishares Dow Jones U.S. Insurance Index Fund IAK (64) 48 (16) KBW Insurance ETF KIE (44) 35 (9) PowerShares Dynamic Insurance Portfolio PIC (3.7) (2.9) (84) 60 (24) Health Care- Broad Based Health Care Select Sector SPDR XLV (15) 21 6 ishares Dow Jones US Healthcare Sector Index Fund IYH (38) Vanguard Health Care ETF VHT (23) 25 2 First Trust Health Care AlphaDEX Fund FXH (111) 70 (41) PowerShares Dynamic Healthcare Portfolio PTH (109) 60 (49) Rydex S&P Equal Weight Health Care ETF RYH (108) 50 (58) ishares Dow Jones U.S. Medical Devices Index Fund IHI (83) 48 (35) ishares DJ US Healthcare Providers Index Fund IHF (81) 48 (33) PowerShares Dynamic Healthcare Services Portfolio PTJ (76) 60 (16) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 11

12 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking US Sector and Industry ETFs (Continued) Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Health Care- Biotechnology ishares Nasdaq Biotechnology Index Fund IBB (15) SPDR Biotech ETF XBI (2) First Trust Amex Biotechnology Index Fund FBT (71) 60 (11) PowerShares Dynamic Biotech & Genome Portfolio PBE (142) 60 (82) Health Care- Pharmaceuticals ishares Dow Jones U.S. Pharmaceuticals Index Fund IHE (59) 48 (11) PowerShares Dynamic Pharmaceuticals Portfolio PJP (86) 60 (26) SPDR Pharmaceuticals ETF XPH (33) 35 2 Industrials Industrials Select Sector SPDR XLI (16) 21 5 ishares Dow Jones US Industrial Sector Index Fund IYJ (39) 48 9 Vanguard Industrials ETF VIS (15) First Trust Industrials AlphaDEX Fund FXR (151) 70 (81) PowerShares Dynamic Industrials Portfolio PRN (109) 60 (49) Rydex S&P Equal Weight Industrials ETF RGI (154) 50 (104) ishares Dow Jones Transportation Index Fund IYT ishares Dow Jones US Aerospace & Defense ITA (59) 48 (11) PowerShares Aerospace & Defense Portfolio PPA Information Technology- Broad Based ishares DJ US Technology Sector Index Fund IYW (101) 48 (53) ishares S&P North American Technology IGM (83) 48 (35) Morgan Stanley Technology ETF MTK (85) 50 (35) Technology Select Sector SPDR XLK (50) 21 (29) Vanguard Information Technology ETF VGT (43) 25 (18) First Trust NASDAQ-100-Technology Sector Index Fund QTEC (126) 60 (66) First Trust Technology AlphaDEX Fund FXL (154) 70 (84) PowerShares Dynamic Technology Portfolio PTF (109) 60 (49) Rydex S&P Equal Weight Technology ETF RYT (117) 50 (67) Information Technology- Internet First Trust Dow Jones Internet Index Fund FDN (105) 60 (45) PowerShares NASDAQ Internet Portfolio PNQI (377) 60 (317) Information Technology- Networking ishares S&P North American Networking Index Fund IGN (109) 48 (61) PowerShares Dynamic Networking Portfolio PXQ (130) 60 (70) Information Technology- Semiconductor ishares S&P North American Semiconductors IGW (95) 48 (47) PowerShares Dynamic Semiconductors Portfolio PSI (120) 60 (60) SPDR S&P Semiconductor ETF XSD (72) 35 (37) Information Technology- Software ishares S&P North American Software Index Fund IGV (68) 48 (20) PowerShares Dynamic Software Portfolio PSJ (90) 60 (30) Materials ishares DJ US Basic Materials Sector Index Fund IYM (91) 48 (43) Materials Select Sector SPDR XLB (41) 21 (20) Vanguard Materials ETF VAW (16) 25 9 First Trust Materials AlphaDEX Fund FXZ (130) 70 (60) PowerShares Dynamic Basic Materials Portfolio PYZ (221) 60 (161) Rydex S&P Equal Weight Materials ETF RTM (153) 50 (103) Natural Resources ishares S&P North American Natural Resources Sector I IGE (61) 48 (13) Market Vectors Gold Miners ETF GDX (73) 55 (18) Market Vectors Steel Index ETF SLX (81) 55 (26) SPDR S&P Metals & Mining ETF XME (48) 35 (13) Real Estate ishares Cohen & Steers Realty Majors Index Fund ICF ishares Dow Jones US Real Estate Index Fund IYR (66) 48 (18) SPDR Dow Jones REIT ETF RWR Vanguard REIT ETF VNQ First Trust S&P REIT Index Fund FRI (60) 50 (10) ishares FTSE EPRA/NAREIT North America Index Fund IFNA ishares FTSE NAREIT Industrial/Office Index Fund FIO (88) 48 (40) ishares FTSE NAREIT Mortgage REITs Index Fund REM (702) 48 (654) ishares FTSE NAREIT Real Estate 50 Index Fund FTY (39) 48 9 ishares FTSE NAREIT Residential Index Fund REZ ishares FTSE NAREIT Retail Index Fund RTL Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 12

13 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking US Sector and Industry ETFs (Continued) Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Telecommunication Services ishares Dow Jones US Telecom Sector Index Fund IYZ (90) 48 (42) Vanguard Telecom Services ETF VOX , ,734 PowerShares Dynamic Telecommunications & Wireless P PTE (173) 60 (113) Utilities ishares Dow Jones US Utilities Sector Index Fund IDU (42) 48 6 Utilities Select Sector SPDR XLU (26) 21 (5) Vanguard Utilities ETF VPU (25) 25 (0) First Trust Utilities AlphaDEX Fund FXU (111) 70 (41) PowerShares Dynamic Utilities Portfolio PUI (72) 60 (12) Rydex S&P Equal Weight Consumer Utilities ETF RYU (48) 50 2 US Sector and Industry Average* US Specialty Market ETFs Dividend Income ishares Dow Jones Select Dividend Index Fund DVY (14) SPDR S&P Dividend ETF SDY Vanguard High Dividend Yield ETF VYM (11) 20 9 Vanguard Dividend Appreciation ETF VIG (4) Claymore/Zacks Dividend Rotation Index ETF IRO (157) 60 (97) Claymore/Zacks Multi-Asset Income Index ETF CVY (250) 60 (190) First Trust Morningstar Dividend Leaders Index Fund FDL (57) 45 (12) First Trust Value Line Dividend Index Fund FVD (95) 70 (25) PowerShares Dividend Achievers Portfolio PFM (21) PowerShares High Yield Equity Dividend Achievers Port. PEY Claymore/S&P Global Dividend Opportunities Index ETF LVL (374) 60 (314) WisdomTree Equity Income Fund DHS (51) 38 (13) US Dividend Average* Custom PowerShares Water Resources Portfolio PHO (88) 60 (28) PowerShares WilderHill Clean Energy Portfolio PBW PowerShares S&P 500 BuyWrite Portfolio PBP (113) 75 (38) Claymore/Beacon Spin-off ETF CSD (109) 60 (49) Claymore/Ocean Tomo Growth Index ETF OTR (93) 60 (33) Claymore/Ocean Tomo Patent ETF OTP (95) 60 (35) Claymore/Robb Report Global Luxury Index ETF ROB (157) 79 (78) Claymore/Sabrient Defensive Equity Index ETF DEF (96) 60 (36) Claymore/Sabrient Insider ETF NFO (115) 60 (55) Claymore/Sabrient Stealth ETF STH (116) 60 (56) Claymore/Zacks Sector Rotation ETF XRO (108) 60 (48) First Trust IPOX-100 Index Fund FPX (104) 60 (44) First Trust ISE Water Index Fund FIW (92) 60 (32) First Trust NASDAQ Clean Edge US Liquid Series Index QCLN (93) 60 (33) First Trust Value Line Equity Allocation Index Fund FVI (158) 70 (88) ishares KLD 400 Social Index Fund DSI (74) 50 (24) ishares KLD Select Social Index Fund KLD (69) 50 (19) Market Vectors Environmental Services ETF EVX (65) 55 (10) PowerShares Buyback Achievers PKW (107) 60 (47) PowerShares Cleantech Portfolio PZD PowerShares DWA Technical Leaders Portfolio PDP PowerShares Dynamic MagniQuant Portfolio PIQ (99) 60 (39) PowerShares Dynamic OTC Portfolio PWO (75) 60 (15) PowerShares Lux Nanotech Portfolio PXN (201) 60 (141) PowerShares NASDAQ-100 BuyWrite Portfolio PQBW (156) 75 (81) PowerShares Value Line Industry Rotation Portfolio PYH PowerShares Value Line Timeliness Select Portfolio PIV PowerShares WilderHill Progressive Energy Portfolio PUW US Custom Average* Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 13

14 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking US Specialty Market ETFs (Continued) Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Asset Allocation ishares S&P Conservative Allocation Fund AOK (3) ishares S&P Moderate Allocation Fund AOM (7) ishares S&P Growth Allocation Fund AOR (5) ishares S&P Aggressive Allocation Fund AOA (10) ishares S&P Target Date 2010 Index Fund TZD (15) TDX Independence 2010 ETF TDD ishares S&P Target Date 2015 Index Fund TZE (16) ishares S&P Target Date 2020 Index Fund TZG (15) TDX Independence 2020 ETF TDH ishares S&P Target Date 2025 Index Fund TZI (17) ishares S&P Target Date 2030 Index Fund TZL (19) TDX Independence 2030 ETF TDN ishares S&P Target Date 2035 Index Fund TZO (21) 30 9 ishares S&P Target Date 2040 Index Fund TZV (20) 29 9 TDX Independence 2040 ETF TDV ishares S&P Target Date Retirement Income Index Fund TGR (13) TDX Independence In-Target ETF TDX US Asset Allocation Average* Broad International ETFs World ex-us Vanguard FTSE All-World ex-us ETF VEU (51) 25 (26) ishares MSCI ACWX Index Fund ACWX (60) 35 (25) SPDR S&P International Small Cap ETF GWX (423) 60 (363) ishares FTSE Developed Small Cap ex-north America In IFSM (140) 50 (90) RevenueShares ADR Fund RTR (132) 60 (72) SPDR MSCI ACWI ex-us ETF CWI (7) SPDR S&P World ex-us ETF GWL (403) 35 (368) SPDR S&P International Mid Cap ETF MDD (560) 45 (515) Developed Markets ishares MSCI EAFE Index Fund EFA (38) 35 (3) Vanguard Europe Pacific ETF VEA ishares MSCI EAFE Growth Index Fund EFG (19) ishares MSCI EAFE Value Index Fund EFV (43) 40 (3) WisdomTree DEFA Fund DWM (109) 48 (61) WisdomTree International MidCap Dividend Fund DIM (43) ishares MSCI EAFE Small Cap Index Fund SCZ (40) 40 0 WisdomTree International SmallCap Dividend Fund DLS (232) 58 (174) BLDRs Developed Markets 100 ADR Index Fund ADRD Claymore/Zacks Country Rotation ETF CRO (105) 65 (40) PowerShares DWA Developed Markets Technical Leader PIZ (292) 80 (212) PowerShares Dynamic Developed International Portfolio PFA (243) 75 (168) PowerShares FTSE RAFI Developed Mkts. Ex-US Small/ PDN (279) 75 (204) PowerShares FTSE RAFI Developed Markets ex-us Port PXF (153) 75 (78) WisdomTree International LargeCap Dividend Fund DOL (36) WisdomTree International Dividend ex-financials DOO (51) 58 7 WisdomTree World ex-us Growth Fund DNL (43) Emerging Markets ishares MSCI Emerging Markets Index Fund EEM (671) 75 (596) Vanguard Emerging Markets ETF VWO WisdomTree Emerging Markets Equity Income Fund DEM (274) 63 (211) BLDRS Emerging Markets 50 ADR Index Fund ADRE SPDR S&P Emerging Markets ETF GMM (761) 60 (701) SPDR S&P Emerging SmallCap ETF EWX (674) 65 (609) PowerShares DWA Emerging Markets Technical Leaders PIE (999) 90 (909) PowerShares FTSE RAFE Emerging Markets PXH (1,070) 75 (995) WisdomTree Small Cap Emerging Markets Dividend Fund DGS (461) 63 (398) ishares MSCI BRIC Index Fund BKF (327) 72 (255) Claymore/BNY BRIC ETF EEB (110) 60 (50) Claymore/BNY Mellon Frontier Markets ETF FRN (331) 75 (256) Market Vectors - Gulf States ETF MES PowerShares MENA Frontier Countries Portfolio PMNA (690) 95 (595) SPDR S&P BRIC 40 ETF BIK (116) 40 (76) WisdomTree Middle East Dividend Fund GULF (554) 88 (466) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 14

15 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking Broad International ETFs (Continued) Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) International Dividend PowerShares International Dividend Achievers Portfolio PID WisdomTree DEFA Equity Income Fund DTH (51) 58 7 Claymore/Zacks International Multi-Asset Income Index E HGI First Trust DJ STOXX Select Dividend 30 Index Fund FDD (328) 60 (268) First Trust Dow Jones Global Select Dividend Index Fund FGD (327) 60 (267) ishares Dow Jones EPAC Select Dividend Index Fund IDV SPDR S&P International Dividend ETF DWX (272) 45 (227) WisdomTree Pacific ex-japan Equity Income Fund DNH (296) 58 (238) International Region & Country ETFs Asia/Pacific Vanguard Pacific ETF VPL ishares MSCI All Country Asia ex-japan Index Fund AAXJ (117) 74 (43) ishares MSCI Pacific ex-japan Index Fund EPP (88) 50 (38) SPDR S&P Emerging Asia Pacific ETF GMF (746) 60 (686) BLDRS Asia 50 ADR Index Fund ADRA ishares S&P Asia 50 Index Fund AIA (110) 50 (60) PowerShares FTSE RAFI Asia Pacific ex-japan Portfolio PAF (2) WisdomTree Pacific ex-japan Total Dividend Fund DND (294) 48 (246) First Trust ISE Chindia Index Fund FNI (131) 60 (71) ishares MSCI Australia Index Fund EWA (124) 55 (69) ishares FTSE/Xinhua China 25 Index Fund FXI (182) 74 (108) SPDR S&P China ETF GXC (424) 60 (364) Claymore/AlphaShares China Small Cap Index ETF HAO (327) 70 (257) ishares MSCI Hong Kong Index Fund EWH (87) 55 (32) WisdomTree India Earnings Fund EPI (324) 88 (236) ishares MSCI Malaysia Index Fund EWM (70) 56 (14) ishares MSCI Singapore Index Fund EWS (142) 55 (87) ishares MSCI South Korea Index Fund EWY (99) 65 (34) ishares MSCI Taiwan Index Fund EWT (191) 82 (109) Claymore/AlphaShares China Real Estate ETF TAO (229) 65 (164) ishares FTSE China (HK Listed) Index Fund FCHI (219) 74 (145) PowerShares Golden Dragon Halter USX China Portfolio PGJ (154) 60 (94) PowerShares India Portfolio PIN (498) 78 (420) ishares MSCI Thailand Index Fund THD Europe ishares S&P Europe 350 Index Fund IEV (92) 60 (32) Vanguard European ETF VGK BLDRS Europe 100 ADR Index Fund ADRU PowerShares FTSE RAFI Europe Portfolio PEF (198) 75 (123) Dow Jones STOXX 50 Fund FEU (20) WisdomTree Europe Total Dividend Fund DEB (63) 48 (15) WisdomTree Europe SmallCap Dividend Fund DFE (279) 58 (221) ishares MSCI EMU Index Fund EZU (24) Dow Jones EURO STOXX 50 Fund FEZ SPDR S&P Emerging Europe ETF GUR (928) 60 (868) ishares MSCI Austria Index Fund EWO (111) 55 (56) ishares MSCI Belgium Index Fund EWK (379) 56 (323) ishares MSCI France Index Fund EWQ (18) ishares MSCI Germany Index Fund EWG (4) ishares MSCI Italy Index Fund EWI (76) 59 (17) ishares MSCI Netherlands Index Fund EWN (1) ishares MSCI Spain Index Fund EWP (547) 56 (491) ishares MSCI Sweden Index Fund EWD (2) ishares MSCI Switzerland Index Fund EWL ishares MSCI United Kingdom Index Fund EWU (118) 55 (63) Market Vectors Russia ETF RSX ishares MSCI Turkey Index Fund TUR (108) 65 (43) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 15

16 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking International Region & Country ETFs (Continued) Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Japan ishares MSCI Japan Index Fund EWJ (100) 56 (44) ishares S&P/TOPIX 150 Index Fund ITF (130) 50 (80) ishares MSCI Japan Small Cap Index Fund SCJ (70) 56 (14) PowerShares FTSE RAFI Japan Portfolio PJO (164) 75 (89) SPDR Russell/Nomura Small Cap Japan ETF JSC (76) 56 (20) SPDR Russell/Nomura Prime Japan ETF JPP (81) 51 (30) WisdomTree Japan SmallCap Dividend Fund DFJ (164) 58 (106) WisdomTree Japan Total Dividend Fund DXJ (29) Latin America ishares S&P Latin America 40 Index Fund ILF (405) 50 (355) SPDR S&P Emerging Latin America ETF GML (286) 60 (226) ishares MSCI Brazil Index Fund EWZ (360) 65 (295) ishares MSCI Mexico Index Fund EWW (203) 55 (148) ishares MSCI Chile Index Fund ECH (211) 65 (146) North America ishares MSCI Canada Index Fund EWC (35) Middle East & Africa ishares MSCI South Africa Index Fund EZA (144) 66 (78) ishares MSCI Israel Capped Index Fund EIS (175) 66 (109) SPDR S&P Emerging Middle East & Africa ETF GAF (105) 60 (45) Market Vectors - Africa Index ETF AFK (247) 83 (164) Diversified International Sector & Industry ETFs SPDR Dow Jones International Real Estate ETF RWX (143) 59 (84) Claymore/SMW Canadian Energy Income Index ETF ENY (345) 65 (280) ishares S&P World ex-u.s. Property Index Fund WPS ishares FTSE EPRA/NAREIT Global Real Estate ex-u.s. IFGL ishares FTSE EPRA/NAREIT Europe Index Fund IFEU ishares FTSE EPRA/NAREIT Asia Index Fund IFAS SPDR S&P International Utilities Sector ETF IPU (77) 50 (27) SPDR S&P International Health Care Sector ETF IRY (245) 50 (195) SPDR S&P International Industrials Sector ETF IPN SPDR S&P International Consumer Discretionary Sector IPD (201) 50 (151) SPDR S&P International Telecommunications Sector ETF IST (121) 50 (71) SPDR S&P International Financial Sector ETF IPF SPDR S&P International Technology Sector ETF IPK SPDR S&P International Consumer Staples Sector ETF IPS (245) 50 (195) SPDR S&P International Energy Sector ETF IPW (444) 50 (394) SPDR S&P International Materials Sector ETF IRV (677) 50 (627) WisdomTree International Consumer Discretionary Secto DPC WisdomTree International Communications Sector Fund DGG WisdomTree International Energy Sector Fund DKA (189) 58 (131) WisdomTree International Financial Sector Fund DRF (119) 58 (61) WisdomTree International Health Care Sector Fund DBR (59) 58 (1) WisdomTree International Industrial Sector Fund DDI (72) 58 (14) WisdomTree International Real Estate Fund DRW (125) 58 (67) WisdomTree International Technology Sector Fund DBT (59) 58 (1) WisdomTree International Utilities Sector Fund DBU (18) WisdomTree International Basic Materials Sector DBN (109) 58 (51) WisdomTree International Consumer Staples Sector Fun DPN (182) 58 (124) International Average* Global ETFs Global - Developed & Emerging ishares MSCI ACWI Index Fund ACWI Vanguard Total World Stock Index Fund VT (14) WisdomTree Global Equity Income Fund DEW SPDR DJ Global Titans ETF DGT Claymore/Raymond James SB-1 Equity ETF RYJ (49) ishares S&P Global Infrastructure Index Fund IGF SPDR/FTSE Macquarie Global Infrastructure 100 ETF GII (103) 59 (44) Global Developed ishares S&P Global 100 Index Fund IOO ishares MSCI Kokusai Index Fund TOK (16) 25 9 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 16

17 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking Global Sector & Industry Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) ishares S&P Global Consumer Discretionary Sector Inde RXI ishares S&P Global Energy Sector Index Fund IXC ishares S&P Global Financial Sector Index Fund IXG ishares S&P Global Healthcare Sector Index Fund IXJ ishares S&P Global Industrials Sector Index Fund EXI ishares S&P Global Materials Sector Index Fund MXI ishares S&P Global Consumer Staples Sector Index Fun KXI ishares S&P Global Technology Sector Index Fund IXN (85) 48 (37) ishares S&P Global Telecomm Sector Index Fund IXP ishares S&P Global Utilities Sector Index Fund JXI Claymore S&P Global Water ETF CGW (124) 50 (74) Market Vectors Agribusiness ETF MOO (62) 65 3 Market Vectors-Coal ETF KOL (96) 65 (31) Global Alternative Energy ETF GEX (64) 65 1 Market Vectors Hard Assets Producers ETF HAP (85) 65 (20) Market Vectors Nuclear Energy ETF NLR (59) 65 6 PowerShares Global Clean Energy Portfolio PBD (310) 75 (235) PowerShares Global Water Portfolio PIO Claymore/Delta Global Shipping Index ETF SEA (656) 65 (591) Claymore/Beacon Global Exchanges, Brokers & Asset Ma EXB (110) 65 (45) Claymore/Beacon Global Timber Index ETF CUT (261) 95 (166) Claymore/MAC Global Solar Energy Index ETF TAN (108) 65 (43) Cohen & Steers Global Realty Majors ETF GRI (85) 55 (30) First Trust ISE Global Engineering and Construction Inde FLM (336) 70 (266) Market Vectors-Gaming ETF BJK PowerShares Emerging Markets Infrastructure Portfolio PXR (275) 75 (200) PowerShares Global Agriculture Portfolio PAGG (271) 75 (196) PowerShares Global Biotech Portfolio PBTQ PowerShares Global Coal Portfolio PKOL (351) 75 (276) PowerShares Global Gold and Precious Metals Portfolio PSAU (134) 75 (59) PowerShares Global Progressive Transportation Portfolio PTRP (328) 75 (253) PowerShares Global Steel Portfolio PSTL (318) 75 (243) PowerShares Global Listed Private Equity Portfolio PSP (1,368) 60 (1,308) First Trust FTSE EPRA/NAREIT Global Real Estate Index FFR (326) 60 (266) First Trust Global Wind Energy Fund FAN (335) 40 (295) ishares S&P Global Timber & Forestry Index Fund WOOD ishares S&P Global Clean Energy Fund ICLN ishares S&P Global Nuclear Energy Index Fund NUCL (86) 48 (38) Market Vectors Solar Energy ETF KWT PowerShares Global Nuclear Energy Portfolio PKN (83) 75 (8) PowerShares Global Wind Energy Portfolio PWND (402) 75 (327) SPDR Dow Jones Global Real Estate ETF RWO Global Custom / Asset Allocation PowerShares Autonomic Growth NFA Global Asset Portfo PTO (33) PowerShares Autonomic Balanced Growth NFA Global A PAO (26) PowerShares Autonomic Balanced NFA Global Asset Po PCA (26) Global Average* US Fixed Income ETFs Broad Market ishares Barclays Aggregate Bond Fund AGG (80) 24 (56) Vanguard Total Bond Market ETF BND Claymore/Dorchester - The Capital Markets Bond Index E UBD 4.7 (1.1) Claymore/Dorchester Micro-Term Fixed Income ETF ULQ (0.1) (0.4) SPDR Barclays Capital Aggregate Bond ETF LAG (82) 13 (69) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 17

18 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking US Fixed Income ETFs (Continued) Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Treasury SPDR Barclays Capital 1-3 Month T-Bill ETF BIL (8) 13 5 ishares Barclays Short Treasury Bond Fund SHV (17) 15 (2) ishares Barclays 1-3 Year Treasury Bond Fund SHY (26) 15 (11) ishares Barclays 7-10 Year Treasury Bond Fund IEF (6.4) (6.0) (35) 15 (20) ishares Barclays 20+ Year Treasury Bond Fund TLT (21.5) (21.4) (13) 15 2 ishares Barclays 3-7 Year Treasury Bond Fund IEI (1.9) (1.6) (30) 15 (15) SPDR Barclays Capital Intermediate Term Treasury ETF ITE (1.4) (1.4) (3) ishares Barclays Year Treasury Bond Fund TLH (8.4) (8.1) (27) 15 (12) PowerShares 1-30 Year Laddered Treasury Portfolio PLW (11.0) (10.7) (22) 25 3 SPDR Barclays Capital Long Term Treasury ETF TLO (12.8) (12.9) Vanguard Extended Duration Treasury ETF EDV (36.7) (35.7) (95) 14 (81) Treasury Inflation Protected Securities ishares Barclays TIPS Bond Fund TIP (4) SPDR Barclays Capital TIPS ETF IPE Treasury / Investment Grade Vanguard Short-Term Bond ETF BSV (18) 11 (7) ishares Barclays Intermediate Gov/Credit Bond Fund GVI (84) 20 (64) Vanguard Intermediate-Term Bond ETF BIV ishares Barclays Government/Credit Bond Fund GBF (54) 20 (34) Vanguard Long-Term Bond ETF BLV (13) 14 1 Federal Agency ishares Barclays Agency Bond Fund AGZ (5) Mortgage ishares Barclays MBS Bond Fund MBB (60) 25 (35) Corporate Investment Grade iboxx $ Investment Grade Corporate Bond Fund LQD (68) 15 (53) ishares Barclays 1-3 Year Credit Bond Fund CSJ (86) 20 (66) ishares Barclays Intermediate Credit Bond Fund CIU (121) 20 (101) ishares Barclays Credit Bond Fund CFT (183) 20 (163) High Yield ishares iboxx $ High Yield Corporate Bond Fund HYG (378) 50 (328) PowerShares High Yield Corporate Bond Portfolio PHB (1,099) 50 (1,049) SPDR Barclays Capital High Yield Bond ETF JNK (1,299) 40 (1,259) Preferred Income ETFs ishares S&P U.S. Preferred Stock Index Fund PFF (574) 48 (526) PowerShares Preferred Portfolio PGX (226) 50 (176) PowerShares Financial Preferred Portfolio PGF (229) 60 (169) Municipal Income PowerShares VRDO Tax-Free Weekly Portfolio PVI ishares S&P Short Term National Municipal Bond Fund SUB (26) 25 (1) SPDR Barclays Capital Short Term Municipal Bond ETF SHM (62) 20 (42) ishares S&P National Municipal Bond Fund MUB (162) 25 (137) SPDR Barclays Capital Municipal Bond ETF TFI (95) 20 (75) Market Vectors Short Municipal ETF SMB (29) Market Vectors Intermediate Municipal Index ETF ITM (84) 20 (64) Market Vectors Long Municipal Index ETF MLN (338) 65 (273) PowerShares Insured Municipal Bond Portfolio PZA (96) 28 (68) ishares S&P California Municipal Bond Fund ETF CMF (15) PowerShares Insured California Municipal Bond Portfolio PWZ (223) 28 (195) SPDR Barclays Capital California Municipal Bond ETF CXA (9) ishares S&P New York Municipal Bond Fund ETF NYF (130) 25 (105) PowerShares Insured New York Municipal Bond Portfolio PZT (261) 28 (233) SPDR Barclays Capital New York Municipal Bond ETF INY (54) 20 (34) International Developed Fixed Income SPDR Barclays Capital International Treasury Bond ETF BWX (66) 50 (16) SPDR DB International Government Inflation-Protected B WIP (22) International Emg. Mkts. Fixed Income ishares JPMorgan USD Emerging Markets Bond Fund EMB (152) 60 (92) PowerShares Emerging Markets Sovereign Debt Portfolio PCY (262) 50 (212) Fixed Income Average* Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 18

19 Exhibit 9 Continued 2009 ETF Tracking Error Summary 2009 Expense Pre-Expense Trading 2009 Total Return Tracking Ratio Tracking Commodity ETFs Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) ishares GSCI Commodity Indexed Trust GSG GreenHaven Continous Commodity Index Fund GCC PowerShares DB Commodity Index Tracking Fund DBC (127) 93 (34) PowerShares DB Agriculture Fund DBA (72) PowerShares DB Oil Fund DBO (63) United States Natural Gas Fund UNG (56.7) (56.2) (54) 60 6 United States Oil Fund USO (72) PowerShares DB Base Metals Fund DBB (19) PowerShares DB Energy Fund DBE (113) 78 (35) PowerShares DB Gold Fund DGL (92) 79 (13) PowerShares DB Precious Metals Fund DBP (135) 79 (56) PowerShares DB Silver Fund DBS (65) United States Gasoline Fund LP UGA (163) 60 (103) United States Heating Oil Fund LP UHN (47) United States 12 Month Oil Fund LP USL (146) 60 (86) Commodity Average* Currency ETFs PowerShares DB G10 Currency Harvest Fund DBV (147) 81 (66) PowerShares DB US Dollar Index Bearish Fund UDN (114) 80 (34) PowerShares DB US Dollar Index Bullish Fund UUP (6.8) (6.7) (12) Currency Average* Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value On pages 20 30: The performance data included herein represent past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You may obtain performance data for all ETFs in this report current to the most recent month-end at their respective fund family websites. ETFs do not charge sales loads or other nonrecurring fees, but you may pay a brokerage commission on the purchase or sale of ETF shares. Any performance data shown in this report does not reflect the deduction of a brokerage commission, which would reduce the performance quoted.. 19

20 Exhibit 10 Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. US Major Market ETFs Symbol Market NAV Market NAV Market NAV Market NAV Broad Market ishares Dow Jones U.S. Index Fund IYY ishares Russell 3000 Index Fund IWV PowerShares Dynamic Market Portfolio PWC Vanguard Extended Market ETF VXF Vanguard Total Stock Market ETF VTI Fidelity Nasdaq Composite Index Tracking Stock ONEQ First Trust Value Line 100 ETF FVL ishares NYSE Composite Index Fund NYC ishares S&P 1500 Index Fund ISI PowerShares FTSE RAFI US 1500 Small-Mid Portfolio PRFZ The SPDR Dow Jones Total Market ETF TMW WisdomTree Dividend ex-financials Fund DTN WisdomTree Earnings Index EXT WisdomTree Total Dividend Fund DTD Large-Cap Diamonds DIA ishares Russell 1000 Index Fund IWB ishares S&P 100 Index Fund OEF ishares S&P 500 Index Fund IVV PowerShares QQQ QQQQ PowerShares FTSE RAFI US 1000 Portfolio PRF Rydex Russell Top 50 ETF XLG Rydex S&P Equal Weight ETF RSP SPDR S&P 500 ETF SPY Vanguard Large-Cap ETF VV WisdomTree LargeCap Dividend Fund DLN First Trust Large Cap Core AlphaDEX Fund FEX First Trust NASDAQ-100 Equal Weighted Index Fund QQEW ishares NYSE 100 Index Fund NY PowerShares Dynamic Large Cap Portfolio PJF RevenueShares Large Cap ETF RWL The SPDR Dow Jones Large Cap ETF ELR Vanguard Mega Cap 300 ETF MGC WisdomTree Earnings 500 Index EPS WisdomTree Earnings Top 100 Index EEZ Mid-Cap ishares Russell Midcap Index Fund IWR ishares S&P MidCap 400 Index Fund IJH S&P MidCap 400 Depository Receipts MDY Vanguard Mid-Cap ETF VO Claymore/Zacks Mid-Cap Core ETF CZA First Trust Mid Cap Core AlphaDEX Fund FNX PowerShares Dynamic Mid Cap Portfolio PJG PowerShares NASDAQ Next-Q Portfolio PNXQ RevenueShares Mid Cap ETF RWK SPDR Dow Jones Mid Cap ETF EMM WisdomTree MidCap Dividend Fund DON WisdomTree MidCap Earnings Index EZM Small-Cap ishares Russell 2000 Index Fund IWM ishares S&P SmallCap 600 Index Fund IJR Vanguard Small-Cap ETF VB First Trust Small Cap Core AlphaDEX Fund FYX PowerShares Dynamic Small Cap Portfolio PJM PowerShares FTSE NASDAQ Small Cap Portfolio PQSC PowerShares Zacks Small Cap Portfolio PZJ RevenueShares Small Cap ETF RWJ SPDR Dow Jones Small Cap ETF DSC WisdomTree SmallCap Dividend Fund DES WisdomTree SmallCap Earnings Index EES Micro-Cap ishares Russell Microcap Index Fund IWC First Trust Dow Jones Select MicroCap Index Fund FDM PowerShares Zacks Micro Cap Portfolio PZI Source: Thomson as of 12/31/09 20

21 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. US Style ETFs Symbol Market NAV Market NAV Market NAV Market NAV Broad Market Growth/Value ishares Russell 3000 Growth Index Fund IWZ ishares Russell 3000 Value Index Fund IWW First Trust Multi Cap Growth AlphaDEX Fund FAD First Trust Multi Cap Value AlphaDEX Fund FAB Large-Cap Growth/Value/Core ishares Morningstar Large Growth Index Fund JKE ishares Russell 1000 Growth Index Fund IWF ishares S&P 500 Growth Index Fund IVW PowerShares Dynamic Large-Cap Growth Portfolio PWB Vanguard Growth ETF VUG First Trust DB Strategic Value Index Fund FDV First Trust Large Cap Growth Opportunities AlphaDEX Fu FTC First Trust Large Cap Value Opportunities AlphaDEX Fun FTA First Trust NASDAQ-100 Ex-Technology Sector Index Fu QQXT Rydex S&P 500 Pure Growth ETF RPG SPDR Dow Jones Large Cap Growth ETF ELG Vanguard Mega Cap 300 Growth ETF MGK WisdomTree LargeCap Growth Fund ROI ishares Morningstar Large Value Index Fund JKF ishares Russell 1000 Value Index Fund IWD ishares S&P 500 Value Index Fund IVE PowerShares Dynamic Large Cap Value Portfolio PWV Vanguard Value ETF VTV ishares Morningstar Large Core Index Fund JKD Rydex S&P 500 Pure Value ETF RPV SPDR Dow Jones Large Cap Value ETF ELV Vanguard Mega Cap 300 Value ETF MGV WisdomTree LargeCap Value Fund EZY Mid-Cap Growth/Value/Core ishares Morningstar Mid Growth Index Fund JKH ishares Russell Midcap Growth Index Fund IWP ishares S&P MidCap 400 Growth Index Fund IJK Vanguard Mid-Cap Growth ETF VOT PowerShares Dynamic Mid Cap Growth Portfolio PWJ Rydex S&P MidCap 400 Pure Growth ETF RFG SPDR Dow Jones Mid Cap Growth ETF EMG ishares Morningstar Mid Value Index Fund JKI ishares Russell Midcap Value Index Fund IWS ishares S&P MidCap 400 Value Index Fund IJJ Vanguard Mid-Cap Value ETF VOE PowerShares Dynamic Mid Cap Value Portfolio PWP Rydex S&P Midcap 400 Pure Value ETF RFV SPDR DJ Wilshire Mid Cap Value ETF EMV ishares Morningstar Mid Core Index Fund JKG Small-Cap Growth/Value/Core ishares Russell 2000 Growth Index Fund IWO ishares S&P SmallCap 600 Growth Index Fund IJT Vanguard Small-Cap Growth ETF VBK ishares Morningstar Small Growth Index Fund JKK PowerShares Dynamic Small Cap Growth Portfolio PWT Rydex S&P SmallCap 600 Pure Growth ETF RZG SPDR Dow Jones Small Cap Growth ETF DSG ishares Russell 2000 Value Index Fund IWN ishares S&P SmallCap 600 Value Index Fund IJS Vanguard Small-Cap Value ETF VBR ishares Morningstar Small Value Index Fund JKL PowerShares Dynamic Small Cap Value Portfolio PWY Rydex S&P SmallCap 600 Pure Value ETF RZV SPDR Dow Jones Small Cap Value ETF DSV ishares Morningstar Small Core Index Fund JKJ Source: Thomson as of 12/31/09 21

22 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. US Sector and Industry ETFs Symbol Market NAV Market NAV Market NAV Market NAV Consumer Discretionary Consumer Discretionary Select Sector SPDR XLY ishares DJ US Cons. Services Sector Index Fund IYC Vanguard Consumer Discretionary ETF VCR First Trust Consumer Discretionary AlphaDEX Fund FXD PowerShares Dynamic Consumer Discretionary Portfolio PEZ Rydex S&P Equal Weight Consumer Discretionary ETF RCD SPDR Retail ETF XRT ishares Dow Jones US Home Construction ITB SPDR S&P Homebuilders ETF XHB PowerShares Dynamic Building and Construction Portfoli PKB PowerShares Dynamic Leisure & Entertainment Portfolio PEJ PowerShares Dynamic Media Portfolio PBS PowerShares Dynamic Retail Portfolio PMR Consumer Staples Consumer Staples Select Sector SPDR XLP ishares DJ US Consumer Goods Sector Index Fund IYK Vanguard Consumer Staples ETF VDC First Trust Consumer Staples AlphaDEX Fund FXG PowerShares Dynamic Consumer Staples Portfolio PSL Rydex S&P Equal Weight Consumer Staples ETF RHS PowerShares Dynamic Food & Beverage Portfolio PBJ Energy Energy Select Sector SPDR XLE ishares Dow Jones US Energy Sector Index Fund IYE Vanguard Energy ETF VDE First Trust Energy AlphaDEX Fund FXN PowerShares Dynamic Energy Portfolio PXI Rydex S&P Equal Weight Energy ETF RYE ishares Dow Jones U.S. Oil Equipment & Services IEZ ishares Dow Jones U.S. Oil & Gas Exploration & Product IEO PowerShares Dynamic Oil & Gas Services Portfolio PXJ SPDR Oil & Gas Exploration & Production ETF XOP First Trust ISE-Revere Natural Gas Index Fund FCG PowerShares Dynamic Energy & Exploration Portfolio PXE SPDR Oil & Gas Equipment & Services ETF XES Financials Financials Select Sector SPDR XLF ishares Dow Jones US Financial Sector Index Fund IYF Vanguard Financials ETF VFH First Trust Financial AlphaDEX Fund FXO PowerShares Dynamic Financial Portfolio PFI Rydex S&P Equal Weight Financials ETF RYF RevenueShares Financials Sector Fund RWW ishares Dow Jones Broker-Dealers Index Fund IAI ishares Dow Jones US Financial Services Index Fund IYG KBW Bank ETF KBE KBW Regional Banking ETF KRE KBW Capital Markets ETF KCE ishares Dow Jones U.S. Regional Banks Index Fund IAT PowerShares Dynamic Banking Portfolio PJB ishares Dow Jones U.S. Insurance Index Fund IAK KBW Insurance ETF KIE PowerShares Dynamic Insurance Portfolio PIC Health Care- Broad Based Health Care Select Sector SPDR XLV ishares Dow Jones US Healthcare Sector Index Fund IYH Vanguard Health Care ETF VHT First Trust Health Care AlphaDEX Fund FXH PowerShares Dynamic Healthcare Portfolio PTH Rydex S&P Equal Weight Health Care ETF RYH ishares Dow Jones U.S. Medical Devices Index Fund IHI ishares DJ US Healthcare Providers Index Fund IHF PowerShares Dynamic Healthcare Services Portfolio PTJ Source: Thomson as of 12/31/09 22

23 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. US Sector and Industry ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV Health Care- Biotechnology ishares Nasdaq Biotechnology Index Fund IBB SPDR Biotech ETF XBI First Trust Amex Biotechnology Index Fund FBT PowerShares Dynamic Biotech & Genome Portfolio PBE Health Care- Pharmaceuticals ishares Dow Jones U.S. Pharmaceuticals Index Fund IHE PowerShares Dynamic Pharmaceuticals Portfolio PJP SPDR Pharmaceuticals ETF XPH Industrials Industrials Select Sector SPDR XLI ishares Dow Jones US Industrial Sector Index Fund IYJ Vanguard Industrials ETF VIS First Trust Industrials AlphaDEX Fund FXR PowerShares Dynamic Industrials Portfolio PRN Rydex S&P Equal Weight Industrials ETF RGI ishares Dow Jones Transportation Index Fund IYT ishares Dow Jones US Aerospace & Defense ITA PowerShares Aerospace & Defense Portfolio PPA Information Technology- Broad Based ishares DJ US Technology Sector Index Fund IYW ishares S&P North American Technology IGM Morgan Stanley Technology ETF MTK Technology Select Sector SPDR XLK Vanguard Information Technology ETF VGT First Trust NASDAQ-100-Technology Sector Index Fund QTEC First Trust Technology AlphaDEX Fund FXL PowerShares Dynamic Technology Portfolio PTF Rydex S&P Equal Weight Technology ETF RYT Information Technology- Internet First Trust Dow Jones Internet Index Fund FDN PowerShares NASDAQ Internet Portfolio PNQI Information Technology- Networking ishares S&P North American Networking Index Fund IGN PowerShares Dynamic Networking Portfolio PXQ Information Technology- Semiconductor ishares S&P North American Semiconductors IGW PowerShares Dynamic Semiconductors Portfolio PSI SPDR S&P Semiconductor ETF XSD Information Technology- Software ishares S&P North American Software Index Fund IGV PowerShares Dynamic Software Portfolio PSJ Materials ishares DJ US Basic Materials Sector Index Fund IYM Materials Select Sector SPDR XLB Vanguard Materials ETF VAW First Trust Materials AlphaDEX Fund FXZ PowerShares Dynamic Basic Materials Portfolio PYZ Rydex S&P Equal Weight Materials ETF RTM Natural Resources ishares S&P North American Natural Resources Sector I IGE Market Vectors Gold Miners ETF GDX Market Vectors Steel Index ETF SLX SPDR S&P Metals & Mining ETF XME Real Estate ishares Cohen & Steers Realty Majors Index Fund ICF ishares Dow Jones US Real Estate Index Fund IYR SPDR Dow Jones REIT ETF RWR Vanguard REIT ETF VNQ First Trust S&P REIT Index Fund FRI ishares FTSE EPRA/NAREIT North America Index Fund IFNA ishares FTSE NAREIT Industrial/Office Index Fund FIO ishares FTSE NAREIT Mortgage REITs Index Fund REM ishares FTSE NAREIT Real Estate 50 Index Fund FTY ishares FTSE NAREIT Residential Index Fund REZ ishares FTSE NAREIT Retail Index Fund RTL Source: Thomson as of 12/31/09 23

24 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. US Sector and Industry ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV Telecommunication Services ishares Dow Jones US Telecom Sector Index Fund IYZ Vanguard Telecom Services ETF VOX PowerShares Dynamic Telecommunications & Wireless P PTE Utilities ishares Dow Jones US Utilities Sector Index Fund IDU Utilities Select Sector SPDR XLU Vanguard Utilities ETF VPU First Trust Utilities AlphaDEX Fund FXU PowerShares Dynamic Utilities Portfolio PUI Rydex S&P Equal Weight Consumer Utilities ETF RYU US Specialty Market ETFs Dividend Income ishares Dow Jones Select Dividend Index Fund DVY SPDR S&P Dividend ETF SDY Vanguard High Dividend Yield ETF VYM Vanguard Dividend Appreciation ETF VIG Claymore/Zacks Dividend Rotation Index ETF IRO Claymore/Zacks Multi-Asset Income Index ETF CVY First Trust Morningstar Dividend Leaders Index Fund FDL First Trust Value Line Dividend Index Fund FVD PowerShares Dividend Achievers Portfolio PFM PowerShares High Yield Equity Dividend Achievers Port. PEY Claymore/S&P Global Dividend Opportunities Index ETF LVL WisdomTree Equity Income Fund DHS Custom PowerShares Water Resources Portfolio PHO PowerShares WilderHill Clean Energy Portfolio PBW PowerShares S&P 500 BuyWrite Portfolio PBP Claymore/Beacon Spin-off ETF CSD Claymore/Ocean Tomo Growth Index ETF OTR Claymore/Ocean Tomo Patent ETF OTP Claymore/Robb Report Global Luxury Index ETF ROB Claymore/Sabrient Defensive Equity Index ETF DEF Claymore/Sabrient Insider ETF NFO Claymore/Sabrient Stealth ETF STH Claymore/Zacks Sector Rotation ETF XRO First Trust IPOX-100 Index Fund FPX First Trust ISE Water Index Fund FIW First Trust NASDAQ Clean Edge US Liquid Series Index QCLN First Trust Value Line Equity Allocation Index Fund FVI ishares KLD 400 Social Index Fund DSI ishares KLD Select Social Index Fund KLD Market Vectors Environmental Services ETF EVX PowerShares Buyback Achievers PKW PowerShares Cleantech Portfolio PZD PowerShares DWA Technical Leaders Portfolio PDP PowerShares Dynamic MagniQuant Portfolio PIQ PowerShares Dynamic OTC Portfolio PWO PowerShares Lux Nanotech Portfolio PXN PowerShares NASDAQ-100 BuyWrite Portfolio PQBW PowerShares Value Line Industry Rotation Portfolio PYH PowerShares Value Line Timeliness Select Portfolio PIV PowerShares WilderHill Progressive Energy Portfolio PUW Source: Thomson as of 12/31/09 24

25 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. US Specialty Market ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV Asset Allocation ishares S&P Conservative Allocation Fund AOK ishares S&P Moderate Allocation Fund AOM ishares S&P Growth Allocation Fund AOR ishares S&P Aggressive Allocation Fund AOA ishares S&P Target Date 2010 Index Fund TZD TDX Independence 2010 ETF TDD ishares S&P Target Date 2015 Index Fund TZE ishares S&P Target Date 2020 Index Fund TZG TDX Independence 2020 ETF TDH ishares S&P Target Date 2025 Index Fund TZI ishares S&P Target Date 2030 Index Fund TZL TDX Independence 2030 ETF TDN ishares S&P Target Date 2035 Index Fund TZO ishares S&P Target Date 2040 Index Fund TZV TDX Independence 2040 ETF TDV ishares S&P Target Date Retirement Income Index Fund TGR TDX Independence In-Target ETF TDX Broad International ETFs World ex-us Vanguard FTSE All-World ex-us ETF VEU ishares MSCI ACWX Index Fund ACWX SPDR S&P International Small Cap ETF GWX ishares FTSE Developed Small Cap ex-north America In IFSM RevenueShares ADR Fund RTR SPDR MSCI ACWI ex-us ETF CWI SPDR S&P World ex-us ETF GWL SPDR S&P International Mid Cap ETF MDD Developed Markets ishares MSCI EAFE Index Fund EFA Vanguard Europe Pacific ETF VEA ishares MSCI EAFE Growth Index Fund EFG ishares MSCI EAFE Value Index Fund EFV WisdomTree DEFA Fund DWM WisdomTree International MidCap Dividend Fund DIM ishares MSCI EAFE Small Cap Index Fund SCZ WisdomTree International SmallCap Dividend Fund DLS BLDRs Developed Markets 100 ADR Index Fund ADRD Claymore/Zacks Country Rotation ETF CRO PowerShares DWA Developed Markets Technical Leader PIZ PowerShares Dynamic Developed International Portfolio PFA PowerShares FTSE RAFI Developed Mkts. Ex-US Small/ PDN PowerShares FTSE RAFI Developed Markets ex-us Port PXF WisdomTree International LargeCap Dividend Fund DOL WisdomTree International Dividend ex-financials DOO WisdomTree World ex-us Growth Fund DNL Emerging Markets ishares MSCI Emerging Markets Index Fund EEM Vanguard Emerging Markets ETF VWO WisdomTree Emerging Markets Equity Income Fund DEM BLDRS Emerging Markets 50 ADR Index Fund ADRE SPDR S&P Emerging Markets ETF GMM SPDR S&P Emerging SmallCap ETF EWX PowerShares DWA Emerging Markets Technical Leaders PIE PowerShares FTSE RAFE Emerging Markets PXH WisdomTree Small Cap Emerging Markets Dividend Fund DGS ishares MSCI BRIC Index Fund BKF Claymore/BNY BRIC ETF EEB Claymore/BNY Mellon Frontier Markets ETF FRN Market Vectors - Gulf States ETF MES PowerShares MENA Frontier Countries Portfolio PMNA SPDR S&P BRIC 40 ETF BIK WisdomTree Middle East Dividend Fund GULF Source: Thomson as of 12/31/09 25

26 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. Broad International ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV International Dividend PowerShares International Dividend Achievers Portfolio PID WisdomTree DEFA Equity Income Fund DTH Claymore/Zacks International Multi-Asset Income Index E HGI First Trust DJ STOXX Select Dividend 30 Index Fund FDD First Trust Dow Jones Global Select Dividend Index Fund FGD ishares Dow Jones EPAC Select Dividend Index Fund IDV SPDR S&P International Dividend ETF DWX WisdomTree Pacific ex-japan Equity Income Fund DNH International Region & Country ETFs Asia/Pacific Vanguard Pacific ETF VPL ishares MSCI All Country Asia ex-japan Index Fund AAXJ ishares MSCI Pacific ex-japan Index Fund EPP SPDR S&P Emerging Asia Pacific ETF GMF BLDRS Asia 50 ADR Index Fund ADRA ishares S&P Asia 50 Index Fund AIA PowerShares FTSE RAFI Asia Pacific ex-japan Portfolio PAF WisdomTree Pacific ex-japan Total Dividend Fund DND First Trust ISE Chindia Index Fund FNI ishares MSCI Australia Index Fund EWA ishares FTSE/Xinhua China 25 Index Fund FXI SPDR S&P China ETF GXC Claymore/AlphaShares China Small Cap Index ETF HAO ishares MSCI Hong Kong Index Fund EWH WisdomTree India Earnings Fund EPI ishares MSCI Malaysia Index Fund EWM ishares MSCI Singapore Index Fund EWS ishares MSCI South Korea Index Fund EWY ishares MSCI Taiwan Index Fund EWT Claymore/AlphaShares China Real Estate ETF TAO ishares FTSE China (HK Listed) Index Fund FCHI PowerShares Golden Dragon Halter USX China Portfolio PGJ PowerShares India Portfolio PIN ishares MSCI Thailand Index Fund THD Europe ishares S&P Europe 350 Index Fund IEV Vanguard European ETF VGK BLDRS Europe 100 ADR Index Fund ADRU PowerShares FTSE RAFI Europe Portfolio PEF Dow Jones STOXX 50 Fund FEU WisdomTree Europe Total Dividend Fund DEB WisdomTree Europe SmallCap Dividend Fund DFE ishares MSCI EMU Index Fund EZU Dow Jones EURO STOXX 50 Fund FEZ SPDR S&P Emerging Europe ETF GUR ishares MSCI Austria Index Fund EWO ishares MSCI Belgium Index Fund EWK ishares MSCI France Index Fund EWQ ishares MSCI Germany Index Fund EWG ishares MSCI Italy Index Fund EWI ishares MSCI Netherlands Index Fund EWN ishares MSCI Spain Index Fund EWP ishares MSCI Sweden Index Fund EWD ishares MSCI Switzerland Index Fund EWL ishares MSCI United Kingdom Index Fund EWU Market Vectors Russia ETF RSX ishares MSCI Turkey Index Fund TUR Source: Thomson as of 12/31/09 26

27 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. International Region & Country ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV Japan ishares MSCI Japan Index Fund EWJ ishares S&P/TOPIX 150 Index Fund ITF ishares MSCI Japan Small Cap Index Fund SCJ PowerShares FTSE RAFI Japan Portfolio PJO SPDR Russell/Nomura Small Cap Japan ETF JSC SPDR Russell/Nomura Prime Japan ETF JPP WisdomTree Japan SmallCap Dividend Fund DFJ WisdomTree Japan Total Dividend Fund DXJ Latin America ishares S&P Latin America 40 Index Fund ILF SPDR S&P Emerging Latin America ETF GML ishares MSCI Brazil Index Fund EWZ ishares MSCI Mexico Index Fund EWW ishares MSCI Chile Index Fund ECH North America ishares MSCI Canada Index Fund EWC Middle East & Africa ishares MSCI South Africa Index Fund EZA ishares MSCI Israel Capped Index Fund EIS SPDR S&P Emerging Middle East & Africa ETF GAF Market Vectors - Africa Index ETF AFK Diversified International Sector & Industry ETFs SPDR Dow Jones International Real Estate ETF RWX Claymore/SMW Canadian Energy Income Index ETF ENY ishares S&P World ex-u.s. Property Index Fund WPS ishares FTSE EPRA/NAREIT Global Real Estate ex-u.s. IFGL ishares FTSE EPRA/NAREIT Europe Index Fund IFEU ishares FTSE EPRA/NAREIT Asia Index Fund IFAS SPDR S&P International Utilities Sector ETF IPU SPDR S&P International Health Care Sector ETF IRY SPDR S&P International Industrials Sector ETF IPN SPDR S&P International Consumer Discretionary Sector IPD SPDR S&P International Telecommunications Sector ETF IST SPDR S&P International Financial Sector ETF IPF SPDR S&P International Technology Sector ETF IPK SPDR S&P International Consumer Staples Sector ETF IPS SPDR S&P International Energy Sector ETF IPW SPDR S&P International Materials Sector ETF IRV WisdomTree International Consumer Discretionary Secto DPC WisdomTree International Communications Sector Fund DGG WisdomTree International Energy Sector Fund DKA WisdomTree International Financial Sector Fund DRF WisdomTree International Health Care Sector Fund DBR WisdomTree International Industrial Sector Fund DDI WisdomTree International Real Estate Fund DRW WisdomTree International Technology Sector Fund DBT WisdomTree International Utilities Sector Fund DBU WisdomTree International Basic Materials Sector DBN WisdomTree International Consumer Staples Sector Fun DPN Global ETFs Global - Developed & Emerging ishares MSCI ACWI Index Fund ACWI Vanguard Total World Stock Index Fund VT WisdomTree Global Equity Income Fund DEW SPDR DJ Global Titans ETF DGT Claymore/Raymond James SB-1 Equity ETF RYJ ishares S&P Global Infrastructure Index Fund IGF SPDR/FTSE Macquarie Global Infrastructure 100 ETF GII Global Developed ishares S&P Global 100 Index Fund IOO ishares MSCI Kokusai Index Fund TOK Source: Thomson as of 12/31/09 27

28 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. Global Sector & Industry Symbol Market NAV Market NAV Market NAV Market NAV ishares S&P Global Consumer Discretionary Sector Inde RXI ishares S&P Global Energy Sector Index Fund IXC ishares S&P Global Financial Sector Index Fund IXG ishares S&P Global Healthcare Sector Index Fund IXJ ishares S&P Global Industrials Sector Index Fund EXI ishares S&P Global Materials Sector Index Fund MXI ishares S&P Global Consumer Staples Sector Index Fun KXI ishares S&P Global Technology Sector Index Fund IXN ishares S&P Global Telecomm Sector Index Fund IXP ishares S&P Global Utilities Sector Index Fund JXI Claymore S&P Global Water ETF CGW Market Vectors Agribusiness ETF MOO Market Vectors-Coal ETF KOL Global Alternative Energy ETF GEX Market Vectors Hard Assets Producers ETF HAP Market Vectors Nuclear Energy ETF NLR PowerShares Global Clean Energy Portfolio PBD PowerShares Global Water Portfolio PIO Claymore/Delta Global Shipping Index ETF SEA Claymore/Beacon Global Exchanges, Brokers & Asset Ma EXB Claymore/Beacon Global Timber Index ETF CUT Claymore/MAC Global Solar Energy Index ETF TAN Cohen & Steers Global Realty Majors ETF GRI First Trust ISE Global Engineering and Construction Inde FLM Market Vectors-Gaming ETF BJK PowerShares Emerging Markets Infrastructure Portfolio PXR PowerShares Global Agriculture Portfolio PAGG PowerShares Global Biotech Portfolio PBTQ PowerShares Global Coal Portfolio PKOL PowerShares Global Gold and Precious Metals Portfolio PSAU PowerShares Global Progressive Transportation Portfolio PTRP PowerShares Global Steel Portfolio PSTL PowerShares Global Listed Private Equity Portfolio PSP First Trust FTSE EPRA/NAREIT Global Real Estate Index FFR First Trust Global Wind Energy Fund FAN ishares S&P Global Timber & Forestry Index Fund WOOD ishares S&P Global Clean Energy Fund ICLN ishares S&P Global Nuclear Energy Index Fund NUCL Market Vectors Solar Energy ETF KWT PowerShares Global Nuclear Energy Portfolio PKN PowerShares Global Wind Energy Portfolio PWND SPDR Dow Jones Global Real Estate ETF RWO Global Custom / Asset Allocation PowerShares Autonomic Growth NFA Global Asset Portfo PTO PowerShares Autonomic Balanced Growth NFA Global A PAO PowerShares Autonomic Balanced NFA Global Asset Po PCA US Fixed Income ETFs Broad Market ishares Barclays Aggregate Bond Fund AGG Vanguard Total Bond Market ETF BND Claymore/Dorchester - The Capital Markets Bond Index E UBD Claymore/Dorchester Micro-Term Fixed Income ETF ULQ SPDR Barclays Capital Aggregate Bond ETF LAG Source: Thomson as of 12/31/09 28

29 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. US Fixed Income ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV Treasury SPDR Barclays Capital 1-3 Month T-Bill ETF BIL ishares Barclays Short Treasury Bond Fund SHV ishares Barclays 1-3 Year Treasury Bond Fund SHY ishares Barclays 7-10 Year Treasury Bond Fund IEF ishares Barclays 20+ Year Treasury Bond Fund TLT ishares Barclays 3-7 Year Treasury Bond Fund IEI SPDR Barclays Capital Intermediate Term Treasury ETF ITE ishares Barclays Year Treasury Bond Fund TLH PowerShares 1-30 Year Laddered Treasury Portfolio PLW SPDR Barclays Capital Long Term Treasury ETF TLO Vanguard Extended Duration Treasury ETF EDV Treasury Inflation Protected Securities ishares Barclays TIPS Bond Fund TIP SPDR Barclays Capital TIPS ETF IPE Treasury / Investment Grade Vanguard Short-Term Bond ETF BSV ishares Barclays Intermediate Gov/Credit Bond Fund GVI Vanguard Intermediate-Term Bond ETF BIV ishares Barclays Government/Credit Bond Fund GBF Vanguard Long-Term Bond ETF BLV Federal Agency ishares Barclays Agency Bond Fund AGZ Mortgage ishares Barclays MBS Bond Fund MBB Corporate Investment Grade iboxx $ Investment Grade Corporate Bond Fund LQD ishares Barclays 1-3 Year Credit Bond Fund CSJ ishares Barclays Intermediate Credit Bond Fund CIU ishares Barclays Credit Bond Fund CFT High Yield ishares iboxx $ High Yield Corporate Bond Fund HYG PowerShares High Yield Corporate Bond Portfolio PHB SPDR Barclays Capital High Yield Bond ETF JNK Preferred Income ETFs ishares S&P U.S. Preferred Stock Index Fund PFF PowerShares Preferred Portfolio PGX PowerShares Financial Preferred Portfolio PGF Municipal Income PowerShares VRDO Tax-Free Weekly Portfolio PVI ishares S&P Short Term National Municipal Bond Fund SUB SPDR Barclays Capital Short Term Municipal Bond ETF SHM ishares S&P National Municipal Bond Fund MUB SPDR Barclays Capital Municipal Bond ETF TFI Market Vectors Short Municipal ETF SMB Market Vectors Intermediate Municipal Index ETF ITM Market Vectors Long Municipal Index ETF MLN PowerShares Insured Municipal Bond Portfolio PZA ishares S&P California Municipal Bond Fund ETF CMF PowerShares Insured California Municipal Bond Portfolio PWZ SPDR Barclays Capital California Municipal Bond ETF CXA ishares S&P New York Municipal Bond Fund ETF NYF PowerShares Insured New York Municipal Bond Portfolio PZT SPDR Barclays Capital New York Municipal Bond ETF INY International Developed Fixed Income SPDR Barclays Capital International Treasury Bond ETF BWX SPDR DB International Government Inflation-Protected B WIP International Emg. Mkts. Fixed Income ishares JPMorgan USD Emerging Markets Bond Fund EMB PowerShares Emerging Markets Sovereign Debt Portfolio PCY Source: Thomson as of 12/31/09 29

30 Exhibit 10 Continued Standardized Performance for ETFs Included in 2009 Tracking Error Study. Data as of 12/31/09 Trading 1-Year 5-Year 10-Year Since Incep. Commodity ETFs Symbol Market NAV Market NAV Market NAV Market NAV ishares GSCI Commodity Indexed Trust GSG GreenHaven Continous Commodity Index Fund GCC PowerShares DB Commodity Index Tracking Fund DBC PowerShares DB Agriculture Fund DBA PowerShares DB Oil Fund DBO United States Natural Gas Fund UNG United States Oil Fund USO PowerShares DB Base Metals Fund DBB PowerShares DB Energy Fund DBE PowerShares DB Gold Fund DGL PowerShares DB Precious Metals Fund DBP PowerShares DB Silver Fund DBS United States Gasoline Fund LP UGA United States Heating Oil Fund LP UHN United States 12 Month Oil Fund LP USL Currency ETFs PowerShares DB G10 Currency Harvest Fund DBV PowerShares DB US Dollar Index Bearish Fund UDN PowerShares DB US Dollar Index Bullish Fund UUP Source: Thomson as of 12/31/09 30

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Analyst Certification The following analysts hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report: Dominic Maister. Unless otherwise stated, the individuals listed on the cover page of this report are research analysts. 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Within the last 12 months, Morgan Stanley has received compensation for investment banking services from B2B Internet HOLDRS, Biotech HOLDRS, BlackRock Global Energy Resource Trust, BlackRock Global Real Assets Equity Trust, BLDRS Asia 50 ADR, BLDRS Developed Markets 100 ADR, BLDRS Emerging Markets 50 ADR, BLDRS Europe 100 ADR, Broadband HOLDRS, Corporate High Yield Fund III, Corporate High Yield Fund VI, Eaton Vance Enhanced Equity Income Fund II, Eaton Vance Tax-Managed Buy-Write Income Fund, Eaton Vance Tax-Managed Global Equity Income Fund, Fidelity NASDAQ Composite Index Tracking Stock, ING Global Equity Dividend & Premium Opportunity F, Internet Architecture HOLDRS, Internet HOLDRS, Internet Infrastructure HOLDRS, ishare Russell 2000 Fd, ishares Barclays 1-3 Year Credit, ishares Barclays 1-3 Year Treasury Bond Fund, ishares Barclays Year, ishares Barclays 20+ Year Treasury Bond Fund, ishares Barclays 3-7 Year Treasury, ishares Barclays 7-10 Year Treasury Bond Fund, ishares Barclays Agency Bond Fund, ishares Barclays Aggregate, ishares Barclays Credit Bond, ishares Barclays Government/Credit, ishares Barclays Intermediate, ishares Barclays Intermediate Gov/Credit, ishares Barclays MBS Bond Fund, ishares Barclays Short Treasury, ishares Barclays TIPS Bond Fund, ishares Cohen & Steers Realty Majors, ishares COMEX Gold Trust, ishares DJ Basic Materials, ishares DJ Cons Non-Cyclical, ishares DJ Consumer Cyclical, ishares DJ Financial, ishares DJ Financial Svcs, ishares DJ Healthcare, ishares DJ Industrial, ishares DJ Real Estate, ishares DJ Technology, ishares DJ Telecom, ishares DJ Transportation Avg Index Fund, ishares DJ US Aerospace & Defense, ishares DJ US Energy, ishares DJ US Tot Mkt Fd, ishares DJ Utilities, ishares Dow Jones US Broker-Dealers Index Fund, ishares Dow Jones US Healthcare Providers Index Fu, ishares Dow Jones US Home Construction Index Fund, ishares Dow Jones US Insurance Index Fund, ishares Dow Jones US Medical Devices Index Fund, ishares Dow Jones US Oil & Gas Exploration & Produ, ishares Dow Jones US Oil Equipment & Services Inde, ishares Dow Jones US Pharmaceuticals Index Fund, ishares Dow Jones US Regional Banks Index Fund, ishares EAFE Growth, ishares EAFE Value, ishares FTSE NAREIT Industrial/Office, ishares FTSE NAREIT Mortgage REITs, ishares FTSE NAREIT Real Estate, ishares FTSE NAREIT Residential, ishares FTSE/Xinhua China, ishares Global 100, ishares Global Infrastructure Index Fund, ishares Goldman Sachs Semiconductor, ishares Goldman Sachs Software, ishares Goldman Sachs Technology, ishares GSCI Commodity-Indexed Trust, ishares iboxx High Yield, ishares iboxx Inv Grade Corporate Bond Fund, ishares JPMorgan USD Emerging Markets Bond Fund, ishares KLD 400 Social, ishares KLD Select Social Index Fund, ishares Morningstar Large Core, ishares Morningstar Large Growth, ishares Morningstar Large Value, ishares Morningstar Mid Core, ishares Morningstar Mid Growth, ishares Morningstar Mid Value, ishares Morningstar Small Core, ishares Morningstar Small Growth, ishares Morningstar Small Value, ishares MSCI Australia, ishares MSCI Austria, ishares MSCI Belgium, ishares MSCI Brazil, ishares MSCI BRIC Index Fund, ishares MSCI Canada, ishares MSCI Capped Investable Market Index Fund, ishares MSCI Chile Index Fund, ishares MSCI EAFE, ishares MSCI EAFE Small Cap Index Fund, ishares MSCI Emerging Markets Free, ishares MSCI EMU, ishares MSCI France, ishares MSCI Germany, ishares MSCI Hong Kong, ishares MSCI Italy, ishares MSCI Japan, ishares MSCI Malaysia, ishares MSCI Mexico, ishares MSCI Netherlands, ishares MSCI Pacific ex-japan, ishares MSCI Singapore, ishares MSCI South Africa, ishares MSCI South Korea, ishares MSCI Spain, ishares MSCI Sweden, ishares MSCI Switzerland, ishares MSCI Taiwan, ishares MSCI Thailand Index Fund, ishares MSCI Turkey Index Fund, ishares MSCI United Kingdom, ishares Nasdaq Biotech, ishares NYSE 100 Index Fund, ishares NYSE Composite Index Fund, ishares Russell 1000 Fd, ishares Russell 1000 Growth, ishares Russell 1000 Value, ishares Russell 2000 Growth, ishares Russell 2000 Value, ishares Russell 3000 Fd, ishares Russell 3000 Growth, ishares Russell 3000 Value, ishares Russell Microcap Index Fund, ishares Russell MidCap, ishares Russell MidCap Growth, ishares Russell MidCap Value, ishares S&P 100 Idx Fd, ishares S&P 1500 Index Fund, ishares S&P 500 Fd, ishares S&P Europe 350, ishares S&P Global Consumer Staples Sector Index F, ishares S&P Global Energy, ishares S&P Global Financial, ishares S&P Global Healthcare, ishares S&P Global Industrial Sector Index Fund, ishares S&P Global Materials Sector Index Fund, ishares S&P Global Technology, ishares S&P Global Telecom, ishares S&P Global Utilities Sector Index Fund, ishares S&P Latin America 40, ishares S&P MidCap 400 Fd, ishares S&P MidCap400/Barra Grwth, ishares S&P MidCap400/Barra Value, ishares S&P National Municipal Bond, ishares S&P North Amer Tech-Multimedia Net Idx Fd, ishares S&P North American Natural Resources Secto, ishares S&P ShortTerm National Municipal Bond Fund, ishares S&P SmallCap 600, ishares S&P SmallCap 600/Barra Value, ishares S&P SmallCap600/Barra Gwth, ishares S&P U.S. Preferred Stock Index Fund, ishares S&P/TOPIX 150, ishares S&P500/Barra Growth, ishares S&P500/Barra Value, ishares Select Dividend Index Fund, ishares Silver Trust, Market HOLDRS, Oil Services HOLDRS, Pharmaceutical HOLDRS, PowerShares Active Low Duration Fund, PowerShares Aerospace & Defense Portfolio, PowerShares Buyback Achievers, PowerShares CleanTech Portfolio, PowerShares DB Agriculture Fund, PowerShares DB Base Metals Fund, PowerShares DB Energy Fund, PowerShares DB G10 Currency Harvest Fund, PowerShares DB Gold Fund, PowerShares DB Oil Fund, PowerShares DB Precious Metals Fund, PowerShares DB Silver Fund, PowerShares DB US Dollar Index Bearish Fund, PowerShares DB US Dollar Index Bullish Fund, PowerShares Dividend Achievers Portfolio, PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, Powershares Dynamic Basic Materials Portfolio, Powershares Dynamic Biotech & Genome, PowerShares Dynamic Building and Construction, PowerShares Dynamic Consumer Discretionary Portfol, PowerShares Dynamic Consumer Staples Portfolio, PowerShares Dynamic Energy & Exploration, PowerShares Dynamic Energy Portfolio, PowerShares Dynamic Financial Portfolio, Powershares Dynamic Food & Beverage, PowerShares Dynamic Healthcare Portfolio, PowerShares Dynamic Healthcare Services Portfolio, PowerShares Dynamic Industrials Portfolio, 31

32 PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Portfolio, PowerShares Dynamic Large Cap Value Portfolio, Powershares Dynamic Leisure and Entertainment, Powershares Dynamic Market Port, Powershares Dynamic Media, PowerShares Dynamic Mid Cap Growth Portfolio, Powershares Dynamic Mid Cap Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, Powershares Dynamic Networking, PowerShares Dynamic Oil & Gas Service Portfolio, Powershares Dynamic OTC Port, Powershares Dynamic Pharmaceuticals, PowerShares Dynamic Retail Portfolio, Powershares Dynamic Semiconductors, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Small Cap Portfolio, PowerShares Dynamic Small Cap Value Portfolio, Powershares Dynamic Software, PowerShares Dynamic Technology Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares EM Sovereign Debt, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500, PowerShares Global Clean Energy Portfolio, PowerShares Global Water Portfolio, Powershares Golden Dragon Halter USX China, PowerShares High Yield Corporate Bond, Powershares High Yield Equity Dividend Achievers, PowerShares Insured Municipal Bond, PowerShares International, PowerShares Listed Private, PowerShares Lux Nanotech Portfolio, PowerShares Preferred Portfolio, PowerShares QQQ, PowerShares RAFI US 1000 Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares Telecom & Wireless Portfolio, PowerShares Value Line, PowerShares Value Line Timeliness Select Portfolio, PowerShares VRDO Tax-Free Weekly Port., PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio, PowerShares WilderHill Progressive, Powershares Zacks Micro Cap Portfolio, PowerShares Zacks Small Cap Portfolio, Regional Bank HOLDRS, Retail HOLDRS, Semiconductor HOLDRS, Telecom HOLDRS, Utilities HOLDRS, Wireless HOLDRS. In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from B2B Internet HOLDRS, Biotech HOLDRS, BlackRock Global Energy Resource Trust, BlackRock Global Real Assets Equity Trust, BLDRS Asia 50 ADR, BLDRS Developed Markets 100 ADR, BLDRS Emerging Markets 50 ADR, BLDRS Europe 100 ADR, Broadband HOLDRS, Corporate High Yield Fund III, Corporate High Yield Fund VI, Eaton Vance Enhanced Equity Income Fund II, Eaton Vance Tax-Managed Buy-Write Income Fund, Eaton Vance Tax-Managed Global Equity Income Fund, Fidelity NASDAQ Composite Index Tracking Stock, ING Global Equity Dividend & Premium Opportunity F, Internet Architecture HOLDRS, Internet HOLDRS, Internet Infrastructure HOLDRS, ishare Russell 2000 Fd, ishares Barclays 1-3 Year Credit, ishares Barclays 1-3 Year Treasury Bond Fund, ishares Barclays Year, ishares Barclays 20+ Year Treasury Bond Fund, ishares Barclays 3-7 Year Treasury, ishares Barclays 7-10 Year Treasury Bond Fund, ishares Barclays Agency Bond Fund, ishares Barclays Aggregate, ishares Barclays Credit Bond, ishares Barclays Government/Credit, ishares Barclays Intermediate, ishares Barclays Intermediate Gov/Credit, ishares Barclays MBS Bond Fund, ishares Barclays Short Treasury, ishares Barclays TIPS Bond Fund, ishares Cohen & Steers Realty Majors, ishares COMEX Gold Trust, ishares DJ Basic Materials, ishares DJ Cons Non-Cyclical, ishares DJ Consumer Cyclical, ishares DJ Financial, ishares DJ Financial Svcs, ishares DJ Healthcare, ishares DJ Industrial, ishares DJ Real Estate, ishares DJ Technology, ishares DJ Telecom, ishares DJ Transportation Avg Index Fund, ishares DJ US Aerospace & Defense, ishares DJ US Energy, ishares DJ US Tot Mkt Fd, ishares DJ Utilities, ishares Dow Jones US Broker-Dealers Index Fund, ishares Dow Jones US Healthcare Providers Index Fu, ishares Dow Jones US Home Construction Index Fund, ishares Dow Jones US Insurance Index Fund, ishares Dow Jones US Medical Devices Index Fund, ishares Dow Jones US Oil & Gas Exploration & Produ, ishares Dow Jones US Oil Equipment & Services Inde, ishares Dow Jones US Pharmaceuticals Index Fund, ishares Dow Jones US Regional Banks Index Fund, ishares EAFE Growth, ishares EAFE Value, ishares FTSE NAREIT Industrial/Office, ishares FTSE NAREIT Mortgage REITs, ishares FTSE NAREIT Real Estate, ishares FTSE NAREIT Residential, ishares FTSE/Xinhua China, ishares Global 100, ishares Global Infrastructure Index Fund, ishares Goldman Sachs Semiconductor, ishares Goldman Sachs Software, ishares Goldman Sachs Technology, ishares GSCI Commodity-Indexed Trust, ishares iboxx High Yield, ishares iboxx Inv Grade Corporate Bond Fund, ishares JPMorgan USD Emerging Markets Bond Fund, ishares KLD 400 Social, ishares KLD Select Social Index Fund, ishares Morningstar Large Core, ishares Morningstar Large Growth, ishares Morningstar Large Value, ishares Morningstar Mid Core, ishares Morningstar Mid Growth, ishares Morningstar Mid Value, ishares Morningstar Small Core, ishares Morningstar Small Growth, ishares Morningstar Small Value, ishares MSCI Australia, ishares MSCI Austria, ishares MSCI Belgium, ishares MSCI Brazil, ishares MSCI BRIC Index Fund, ishares MSCI Canada, ishares MSCI Capped Investable Market Index Fund, ishares MSCI Chile Index Fund, ishares MSCI EAFE, ishares MSCI EAFE Small Cap Index Fund, ishares MSCI Emerging Markets Free, ishares MSCI EMU, ishares MSCI France, ishares MSCI Germany, ishares MSCI Hong Kong, ishares MSCI Italy, ishares MSCI Japan, ishares MSCI Malaysia, ishares MSCI Mexico, ishares MSCI Netherlands, ishares MSCI Pacific ex-japan, ishares MSCI Singapore, ishares MSCI South Africa, ishares MSCI South Korea, ishares MSCI Spain, ishares MSCI Sweden, ishares MSCI Switzerland, ishares MSCI Taiwan, ishares MSCI Thailand Index Fund, ishares MSCI Turkey Index Fund, ishares MSCI United Kingdom, ishares Nasdaq Biotech, ishares NYSE 100 Index Fund, ishares NYSE Composite Index Fund, ishares Russell 1000 Fd, ishares Russell 1000 Growth, ishares Russell 1000 Value, ishares Russell 2000 Growth, ishares Russell 2000 Value, ishares Russell 3000 Fd, ishares Russell 3000 Growth, ishares Russell 3000 Value, ishares Russell Microcap Index Fund, ishares Russell MidCap, ishares Russell MidCap Growth, ishares Russell MidCap Value, ishares S&P 100 Idx Fd, ishares S&P 1500 Index Fund, ishares S&P 500 Fd, ishares S&P Europe 350, ishares S&P Global Consumer Staples Sector Index F, ishares S&P Global Energy, ishares S&P Global Financial, ishares S&P Global Healthcare, ishares S&P Global Industrial Sector Index Fund, ishares S&P Global Materials Sector Index Fund, ishares S&P Global Technology, ishares S&P Global Telecom, ishares S&P Global Utilities Sector Index Fund, ishares S&P Latin America 40, ishares S&P MidCap 400 Fd, ishares S&P MidCap400/Barra Grwth, ishares S&P MidCap400/Barra Value, ishares S&P National Municipal Bond, ishares S&P North Amer Tech-Multimedia Net Idx Fd, ishares S&P North American Natural Resources Secto, ishares S&P ShortTerm National Municipal Bond Fund, ishares S&P SmallCap 600, ishares S&P SmallCap 600/Barra Value, ishares S&P SmallCap600/Barra Gwth, ishares S&P U.S. Preferred Stock Index Fund, ishares S&P/TOPIX 150, ishares S&P500/Barra Growth, ishares S&P500/Barra Value, ishares Select Dividend Index Fund, ishares Silver Trust, Market HOLDRS, Oil Services HOLDRS, Pharmaceutical HOLDRS, PowerShares Active Low Duration Fund, PowerShares Aerospace & Defense Portfolio, PowerShares Buyback Achievers, PowerShares CleanTech Portfolio, PowerShares DB Agriculture Fund, PowerShares DB Base Metals Fund, PowerShares DB Energy Fund, PowerShares DB G10 Currency Harvest Fund, PowerShares DB Gold Fund, PowerShares DB Oil Fund, PowerShares DB Precious Metals Fund, PowerShares DB Silver Fund, PowerShares DB US Dollar Index Bearish Fund, PowerShares DB US Dollar Index Bullish Fund, PowerShares Dividend Achievers Portfolio, PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, Powershares Dynamic Basic Materials Portfolio, Powershares Dynamic Biotech & Genome, PowerShares Dynamic Building and Construction, PowerShares Dynamic Consumer Discretionary Portfol, PowerShares Dynamic Consumer Staples Portfolio, PowerShares Dynamic Energy & Exploration, PowerShares Dynamic Energy Portfolio, PowerShares Dynamic Financial Portfolio, Powershares Dynamic Food & Beverage, PowerShares Dynamic Healthcare Portfolio, PowerShares Dynamic Healthcare Services Portfolio, PowerShares Dynamic Industrials Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Portfolio, PowerShares Dynamic Large Cap Value Portfolio, Powershares Dynamic Leisure and Entertainment, Powershares Dynamic Market Port, Powershares Dynamic Media, PowerShares Dynamic Mid Cap Growth Portfolio, Powershares Dynamic Mid Cap Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, Powershares Dynamic Networking, PowerShares Dynamic Oil & Gas Service Portfolio, Powershares Dynamic OTC Port, Powershares Dynamic Pharmaceuticals, PowerShares Dynamic Retail Portfolio, Powershares Dynamic Semiconductors, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Small Cap Portfolio, PowerShares Dynamic Small Cap Value Portfolio, Powershares Dynamic Software, PowerShares Dynamic Technology Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares EM Sovereign Debt, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500, PowerShares Global Clean Energy Portfolio, PowerShares Global Water Portfolio, Powershares Golden Dragon Halter USX China, PowerShares High Yield Corporate Bond, Powershares High Yield Equity Dividend Achievers, PowerShares Insured Municipal Bond, PowerShares International, PowerShares Listed Private, PowerShares Lux Nanotech Portfolio, PowerShares Preferred Portfolio, PowerShares QQQ, PowerShares RAFI US 1000 Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares Telecom & Wireless Portfolio, PowerShares Value Line, PowerShares Value Line Timeliness Select Portfolio, PowerShares VRDO Tax-Free Weekly Port., PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio, PowerShares WilderHill Progressive, Powershares Zacks Micro Cap Portfolio, PowerShares Zacks Small Cap Portfolio, Regional Bank HOLDRS, Retail HOLDRS, Semiconductor HOLDRS, Telecom HOLDRS, Utilities HOLDRS, Wireless HOLDRS. Within the last 12 months, Morgan Stanley has provided or is providing investment banking services to, or has an investment banking client relationship with, the following company: B2B Internet HOLDRS, Biotech HOLDRS, BlackRock Global Energy Resource Trust, BlackRock Global Real Assets Equity Trust, BLDRS Asia 50 ADR, BLDRS Developed Markets 100 ADR, BLDRS Emerging Markets 50 ADR, BLDRS Europe 100 ADR, Broadband HOLDRS, Corporate High Yield Fund III, Corporate High Yield Fund VI, Eaton Vance Enhanced Equity Income Fund II, Eaton Vance 32

33 Tax-Managed Buy-Write Income Fund, Eaton Vance Tax-Managed Global Equity Income Fund, Fidelity NASDAQ Composite Index Tracking Stock, ING Global Equity Dividend & Premium Opportunity F, Internet Architecture HOLDRS, Internet HOLDRS, Internet Infrastructure HOLDRS, ishare Russell 2000 Fd, ishares Barclays 1-3 Year Credit, ishares Barclays 1-3 Year Treasury Bond Fund, ishares Barclays Year, ishares Barclays 20+ Year Treasury Bond Fund, ishares Barclays 3-7 Year Treasury, ishares Barclays 7-10 Year Treasury Bond Fund, ishares Barclays Agency Bond Fund, ishares Barclays Aggregate, ishares Barclays Credit Bond, ishares Barclays Government/Credit, ishares Barclays Intermediate, ishares Barclays Intermediate Gov/Credit, ishares Barclays MBS Bond Fund, ishares Barclays Short Treasury, ishares Barclays TIPS Bond Fund, ishares Cohen & Steers Realty Majors, ishares COMEX Gold Trust, ishares DJ Basic Materials, ishares DJ Cons Non-Cyclical, ishares DJ Consumer Cyclical, ishares DJ Financial, ishares DJ Financial Svcs, ishares DJ Healthcare, ishares DJ Industrial, ishares DJ Real Estate, ishares DJ Technology, ishares DJ Telecom, ishares DJ Transportation Avg Index Fund, ishares DJ US Aerospace & Defense, ishares DJ US Energy, ishares DJ US Tot Mkt Fd, ishares DJ Utilities, ishares Dow Jones US Broker-Dealers Index Fund, ishares Dow Jones US Healthcare Providers Index Fu, ishares Dow Jones US Home Construction Index Fund, ishares Dow Jones US Insurance Index Fund, ishares Dow Jones US Medical Devices Index Fund, ishares Dow Jones US Oil & Gas Exploration & Produ, ishares Dow Jones US Oil Equipment & Services Inde, ishares Dow Jones US Pharmaceuticals Index Fund, ishares Dow Jones US Regional Banks Index Fund, ishares EAFE Growth, ishares EAFE Value, ishares FTSE NAREIT Industrial/Office, ishares FTSE NAREIT Mortgage REITs, ishares FTSE NAREIT Real Estate, ishares FTSE NAREIT Residential, ishares FTSE/Xinhua China, ishares Global 100, ishares Global Infrastructure Index Fund, ishares Goldman Sachs Semiconductor, ishares Goldman Sachs Software, ishares Goldman Sachs Technology, ishares GSCI Commodity-Indexed Trust, ishares iboxx High Yield, ishares iboxx Inv Grade Corporate Bond Fund, ishares JPMorgan USD Emerging Markets Bond Fund, ishares KLD 400 Social, ishares KLD Select Social Index Fund, ishares Morningstar Large Core, ishares Morningstar Large Growth, ishares Morningstar Large Value, ishares Morningstar Mid Core, ishares Morningstar Mid Growth, ishares Morningstar Mid Value, ishares Morningstar Small Core, ishares Morningstar Small Growth, ishares Morningstar Small Value, ishares MSCI Australia, ishares MSCI Austria, ishares MSCI Belgium, ishares MSCI Brazil, ishares MSCI BRIC Index Fund, ishares MSCI Canada, ishares MSCI Capped Investable Market Index Fund, ishares MSCI Chile Index Fund, ishares MSCI EAFE, ishares MSCI EAFE Small Cap Index Fund, ishares MSCI Emerging Markets Free, ishares MSCI EMU, ishares MSCI France, ishares MSCI Germany, ishares MSCI Hong Kong, ishares MSCI Italy, ishares MSCI Japan, ishares MSCI Malaysia, ishares MSCI Mexico, ishares MSCI Netherlands, ishares MSCI Pacific ex-japan, ishares MSCI Singapore, ishares MSCI South Africa, ishares MSCI South Korea, ishares MSCI Spain, ishares MSCI Sweden, ishares MSCI Switzerland, ishares MSCI Taiwan, ishares MSCI Thailand Index Fund, ishares MSCI Turkey Index Fund, ishares MSCI United Kingdom, ishares Nasdaq Biotech, ishares NYSE 100 Index Fund, ishares NYSE Composite Index Fund, ishares Russell 1000 Fd, ishares Russell 1000 Growth, ishares Russell 1000 Value, ishares Russell 2000 Growth, ishares Russell 2000 Value, ishares Russell 3000 Fd, ishares Russell 3000 Growth, ishares Russell 3000 Value, ishares Russell Microcap Index Fund, ishares Russell MidCap, ishares Russell MidCap Growth, ishares Russell MidCap Value, ishares S&P 100 Idx Fd, ishares S&P 1500 Index Fund, ishares S&P 500 Fd, ishares S&P Europe 350, ishares S&P Global Consumer Staples Sector Index F, ishares S&P Global Energy, ishares S&P Global Financial, ishares S&P Global Healthcare, ishares S&P Global Industrial Sector Index Fund, ishares S&P Global Materials Sector Index Fund, ishares S&P Global Technology, ishares S&P Global Telecom, ishares S&P Global Utilities Sector Index Fund, ishares S&P Latin America 40, ishares S&P MidCap 400 Fd, ishares S&P MidCap400/Barra Grwth, ishares S&P MidCap400/Barra Value, ishares S&P National Municipal Bond, ishares S&P North Amer Tech-Multimedia Net Idx Fd, ishares S&P North American Natural Resources Secto, ishares S&P ShortTerm National Municipal Bond Fund, ishares S&P SmallCap 600, ishares S&P SmallCap 600/Barra Value, ishares S&P SmallCap600/Barra Gwth, ishares S&P U.S. Preferred Stock Index Fund, ishares S&P/TOPIX 150, ishares S&P500/Barra Growth, ishares S&P500/Barra Value, ishares Select Dividend Index Fund, ishares Silver Trust, Market HOLDRS, Oil Services HOLDRS, Pharmaceutical HOLDRS, PowerShares Active Low Duration Fund, PowerShares Aerospace & Defense Portfolio, PowerShares Buyback Achievers, PowerShares CleanTech Portfolio, PowerShares DB Agriculture Fund, PowerShares DB Base Metals Fund, PowerShares DB Energy Fund, PowerShares DB G10 Currency Harvest Fund, PowerShares DB Gold Fund, PowerShares DB Oil Fund, PowerShares DB Precious Metals Fund, PowerShares DB Silver Fund, PowerShares DB US Dollar Index Bearish Fund, PowerShares DB US Dollar Index Bullish Fund, PowerShares Dividend Achievers Portfolio, PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, Powershares Dynamic Basic Materials Portfolio, Powershares Dynamic Biotech & Genome, PowerShares Dynamic Building and Construction, PowerShares Dynamic Consumer Discretionary Portfol, PowerShares Dynamic Consumer Staples Portfolio, PowerShares Dynamic Energy & Exploration, PowerShares Dynamic Energy Portfolio, PowerShares Dynamic Financial Portfolio, Powershares Dynamic Food & Beverage, PowerShares Dynamic Healthcare Portfolio, PowerShares Dynamic Healthcare Services Portfolio, PowerShares Dynamic Industrials Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Portfolio, PowerShares Dynamic Large Cap Value Portfolio, Powershares Dynamic Leisure and Entertainment, Powershares Dynamic Market Port, Powershares Dynamic Media, PowerShares Dynamic Mid Cap Growth Portfolio, Powershares Dynamic Mid Cap Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, Powershares Dynamic Networking, PowerShares Dynamic Oil & Gas Service Portfolio, Powershares Dynamic OTC Port, Powershares Dynamic Pharmaceuticals, PowerShares Dynamic Retail Portfolio, Powershares Dynamic Semiconductors, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Small Cap Portfolio, PowerShares Dynamic Small Cap Value Portfolio, Powershares Dynamic Software, PowerShares Dynamic Technology Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares EM Sovereign Debt, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500, PowerShares Global Clean Energy Portfolio, PowerShares Global Water Portfolio, Powershares Golden Dragon Halter USX China, PowerShares High Yield Corporate Bond, Powershares High Yield Equity Dividend Achievers, PowerShares Insured Municipal Bond, PowerShares International, PowerShares Listed Private, PowerShares Lux Nanotech Portfolio, PowerShares Preferred Portfolio, PowerShares QQQ, PowerShares RAFI US 1000 Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares Telecom & Wireless Portfolio, PowerShares Value Line, PowerShares Value Line Timeliness Select Portfolio, PowerShares VRDO Tax-Free Weekly Port., PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio, PowerShares WilderHill Progressive, Powershares Zacks Micro Cap Portfolio, PowerShares Zacks Small Cap Portfolio, Regional Bank HOLDRS, Retail HOLDRS, Semiconductor HOLDRS, Telecom HOLDRS, Utilities HOLDRS, Wireless HOLDRS. Morgan Stanley & Co. Incorporated makes a market in the securities of Biotech HOLDRS, Claymore/Sabrient Insider, Claymore/Zacks Sector, Claymore/Zacks Yield, Consumer Discretionary Select Sector SPDR Fund, Consumer Staples SPDR, Diamonds, Energy SPDR, Fidelity NASDAQ Composite Index Tracking Stock, Financial Bear 3X, Financial SPDR, Finanical Bull 3X, First Trust Amex Biotechnology Index Fund, First Trust DB Strategic Value, First Trust DJ Select MicroCap, First Trust Dow Jones Internet Index Fund, First Trust IPOX-100 Index Fund, First Trust Morningstar Dividend Leaders Index Fun, First Trust NASDAQ, First Trust NASDAQ-100 Equal Weighted Index Fund, First Trust NASDAQ-100 Ex, First Trust NASDAQ-100-Technology Sector Index Fun, Fresco Dow Jones Euro STOXX 50 Fund, Fresco Dow Jones STOXX 50 Fund, Health Care Select Sector SPDR Fund, Industrial SPDR, Internet Architecture HOLDRS, ishare Russell 2000 Fd, ishares Barclays 1-3 Year Credit, ishares Barclays Year, ishares Barclays 20+ Year Treasury Bond Fund, ishares Barclays 3-7 Year Treasury, ishares Barclays Credit Bond, ishares Barclays Government/Credit, ishares Barclays Intermediate, ishares Barclays Intermediate Gov/Credit, ishares Barclays Short Treasury, ishares Barclays TIPS Bond Fund, ishares DJ Basic Materials, ishares DJ Consumer Cyclical, ishares DJ Financial, ishares DJ Real Estate, ishares DJ Transportation Avg Index Fund, ishares DJ US Energy, ishares Dow Jones US Broker-Dealers Index Fund, ishares Dow Jones US Home Construction Index Fund, ishares Dow Jones US Insurance Index Fund, ishares Dow Jones US Oil Equipment & Services Inde, ishares EAFE Value, ishares FTSE/Xinhua China, ishares GSCI Commodity-Indexed Trust, ishares iboxx High Yield, ishares iboxx Inv Grade Corporate Bond Fund, ishares Morningstar Large Core, ishares Morningstar Large Value, ishares Morningstar Mid Core, ishares Morningstar Mid Growth, ishares Morningstar Mid Value, ishares Morningstar Small Core, ishares Morningstar Small Growth, ishares Morningstar Small Value, ishares MSCI Australia, ishares MSCI Belgium, ishares MSCI Brazil, ishares MSCI Canada, ishares MSCI Chile Index Fund, ishares MSCI EAFE, ishares MSCI Emerging Markets Free, ishares MSCI Germany, ishares MSCI Hong Kong, ishares MSCI Italy, ishares MSCI Japan, ishares MSCI Malaysia, ishares MSCI Mexico, ishares MSCI Pacific ex-japan, ishares MSCI Singapore, ishares MSCI South Africa, ishares MSCI South Korea, ishares MSCI Taiwan, ishares MSCI United Kingdom, ishares Nasdaq Biotech, ishares NYSE 100 Index Fund, ishares NYSE Composite Index Fund, ishares Russell 1000 Fd, ishares Russell 1000 Growth, ishares Russell 1000 Value, ishares Russell 2000 Growth, ishares Russell 2000 Value, ishares Russell 3000 Fd, ishares Russell Microcap Index Fund, ishares Russell MidCap, ishares Russell MidCap Growth, ishares Russell MidCap Value, ishares S&P 100 Idx Fd, ishares S&P 1500 Index Fund, ishares S&P 500 Fd, ishares S&P Global Healthcare, ishares S&P Latin America 40, ishares S&P500/Barra Growth, ishares Select Dividend Index Fund, ishares Silver Trust, Market Vectors Agribusiness, Market Vectors Gold Miners 33

34 ETF, Market Vectors Intermediate Municipal Index ETF, Market Vectors Russia ETF, Materials Select Sector SPDR Fund, Oil Services HOLDRS, Pharmaceutical HOLDRS, PowerShares DB Agriculture Fund, Powershares Dynamic Food & Beverage, Powershares Dynamic Leisure and Entertainment, Powershares Dynamic Media, PowerShares FTSE RAFI US 1500, Powershares Golden Dragon Halter USX China, PowerShares Preferred Portfolio, PowerShares QQQ, PowerShares RAFI US 1000 Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio, ProShares UltraShort MSCI Emerging Markets, Regional Bank HOLDRS, Retail HOLDRS, S&P MidCap 400 Dep. Rcpts, Semiconductor HOLDRS, Software HOLDRS, SPDR Barclays Capital Convertible Bond ETF, SPDR Barclays Capital High Yield Bond ETF, SPDR Barclays Capital Short Term International Tre, SPDR DB Int'l Gvrnmt. Inflation-Protected Bond, SPDR Gold Trust, SPDR Metals & Mining ETF, SPDR MSCI ACWI ex-us ETF, SPDR Oil & Gas Exploration and Drilling ETF, SPDR Retail ETF, SPDR S&P 500 ETF, SPDR S&P Emerging Europe, SPDR S&P Homebuilder ETF, streettracks KBW Bank ETF, streettracks KBW Capital Markets ETF, streettracks KBW Insurance ETF, streettracks KBW Regional Banking ETF, streettracks Total Market ETF, Technology SPDR, Ultra Financials, Ultra QQQ ProShares, Ultra Real Estate, Ultra S&P500 ProShares, UltraShort Basic Materials, UltraShort Financials, UltraShort Lehman 20+ Year Treasury, UltraShort Oil & Gas, UltraShort Real Estate ProShares, UltraShort Russell2000, UltraShort S&P 500, United States 12 Month Oil Fund LP, United States Heating Oil Fund LP, United States Natural Gas, United States Oil Fund LP, Utilities SPDR, Vanguard Dividend Appreciation VIPERs, Vanguard Emerging Markets VIPERs, Vanguard Extended Duration Treasury ETF, Vanguard FTSE All World ex-us Small-Cap, Vanguard Information Technology VIPERs, Vanguard Materials VIPERs, Vanguard Mid-Cap Growth, Vanguard Mid-Cap Value, Vanguard Mid-Cap VIPERs, Vanguard Small-Cap VIPERs, Vanguard Total World Stock Index, Vanguard Utilities VIPERs, Wireless HOLDRS, WisdomTree Dividend Top 100 Fund, WisdomTree High-Yielding Equity Fund, WisdomTree India Earnings Fund, WisdomTree LargeCap Dividend Fund, WisdomTree MidCap Dividend Fund, WisdomTree Total Dividend Fund. 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Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold, and sell but represent recommended relative weightings (see definitions below). To satisfy regulatory requirements, we correspond Overweight, our most positive stock rating, with a buy recommendation; we correspond Equal-weight and Not-Rated to hold and Underweight to sell recommendations, respectively. Coverage Universe Investment Banking Clients (IBC) % of % of % of Rating Stock Rating Category Count Total Count Total IBC Category Overweight/Buy % % 30% Equal-weight/Hold % % 31% Not-Rated/Hold 21 1% 4 1% 19% Underweight/Sell % 90 12% 23% Total 2,

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37 Industry Coverage: Commodity Company (Ticker) Rating (as of)price* (02/11/2010) Dominic Maister GreenHaven Continuous NA (07/23/2008) $25.39 Commodity Index Fund (GCC.P) PowerShares DB Agriculture Fund NA (06/21/2007) $25.52 (DBA.P) PowerShares DB Base Metals NA (06/21/2007) $20.3 Fund (DBB.P) PowerShares DB Commodity Index NA (05/22/2006) $23.15 Tracking Fund (DBC.P) PowerShares DB Energy Fund NA (06/21/2007) $24.45 (DBE.P) PowerShares DB Gold Fund NA (06/22/2007) $39.16 (DGL.P) PowerShares DB Oil Fund (DBO.P) NA (06/22/2007) $25.79 PowerShares DB Precious Metals NA (06/21/2007) $37.01 Fund (DBP.P) PowerShares DB Silver Fund NA (06/21/2007) $27.81 (DBS.P) SPDR Gold Trust (GLD.P) NA (11/18/2004) $ United States 12 Month Oil Fund LP NA (07/23/2008) $37.89 (USL.P) United States Gasoline Fund LP NA (07/23/2008) $34.06 (UGA.P) United States Heating Oil Fund LP NA (07/23/2008) $25.34 (UHN.P) United States Natural Gas (UNG.P) NA (06/21/2007) $9.73 United States Oil Fund LP (USO.P) NA () $36.82 ishares GSCI Commodity-Indexed NA () $29.84 Trust (GSG.P) ishares Silver Trust (SLV.P) NA () $15.36 Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted. Industry Coverage: US Equity Company (Ticker) Rating (as of)price* (02/11/2010) Dominic Maister B2B Internet HOLDRS (BHH.P) NA (03/18/2002) $.39 Biotech HOLDRS (BBH.P) NA (03/18/2002) $ BlackRock Global Energy Resource O (07/18/2007) $23.6 Trust (BGR.N) BlackRock Global Real Assets O (07/18/2007) $11.73 Equity Trust (BCF.N) Broadband HOLDRS (BDH.P) NA (03/18/2002) $10.82 Claymore/BNY BRIC ETF (EEB.P) NA (06/20/2007) $39.11 Claymore/Clear Spinoff ETF NA (06/20/2007) $18.53 (CSD.P) Claymore/Great Companies NA (06/20/2007) $19.1 Large-Cap Growth Index (XGC.P) Claymore/LGA Green ETF (GRN.P) NA (06/20/2007) $23.86 Claymore/Ocean Tomo Growth NA (06/20/2007) $23.14 Index ETF (OTR.P) Claymore/Ocean Tomo Patent ETF NA (06/20/2007) $22.07 (OTP.P) Claymore/Sabrient Defender NA (06/20/2007) $20.41 (DEF.P) Claymore/Sabrient Insider (NFO.P) NA (06/20/2007) $25.38 Claymore/Zacks Sector (XRO.P) NA (06/20/2007) $19.8 Claymore/Zacks Yield (CVY.P) NA (06/20/2007) $17.59 Consumer Discretionary Select NA (03/13/2003) $29.25 Sector SPDR Fund (XLY.P) Consumer Staples SPDR (XLP.P) NA (03/13/2003) $26.43 Diamonds (DIA.P) NA (03/13/2003) $ Eaton Vance Enhanced Equity E (07/18/2007) $12.4 Income Fund II (EOS.N) Eaton Vance Tax-Managed E (07/18/2007) $14.9 Buy-Write Income Fund (ETB.N) Eaton Vance Tax-Managed Global O (11/29/2007) $12.07 Equity Income Fund (EXG.N) Energy SPDR (XLE.P) NA (03/13/2003) $55.57 Extended Market VIPERs (VXF.P) NA (03/18/2002) $42.07 Fidelity NASDAQ Composite Index NA (10/31/2003) $84.52 Tracking Stock (ONEQ.O) Financial Bear 3X (FAZ.P) NA (05/15/2009) $20.57 Financial SPDR (XLF.P) NA (03/13/2003) $13.93 Finanical Bull 3X (FAS.P) NA (05/15/2009) $65.31 First Trust Amex Biotechnology NA () $29.7 Index Fund (FBT.P) First Trust Consumer Discretionary NA (06/20/2007) $14.85 (FXD.P) First Trust Consumer Staples NA (06/20/2007) $17.76 (FXG.P) First Trust DB Strategic Value NA (06/20/2007) $19.96 (FDV.P) First Trust DJ Select MicroCap NA (06/20/2007) $17.13 (FDM.P) First Trust Dow Jones Internet NA () $23.43 Index Fund (FDN.P) First Trust Energy (FXN.P) NA (06/20/2007) $ Morgan Stanley

38 3 MORGAN STANLEY RESEARCH First Trust Health Care (FXH.P) NA (06/20/2007) $21.59 First Trust IPOX-100 Index Fund NA () $19.38 (FPX.P) First Trust ISE Water Index Fund NA (12/20/2007) $17.66 (FIW.P) First Trust ISE-Revere Natural Gas NA () $17.36 Index Fund (FCG.P) First Trust Industrials (FXR.P) NA (06/20/2007) $14.5 First Trust Large Cap Growth NA (06/20/2007) $22.28 (FTC.P) First Trust Large Cap Value NA (06/20/2007) $22.12 (FTA.P) First Trust Materials Alpha (FXZ.P) NA (06/20/2007) $18.64 First Trust Mid Cap Core (FNX.P) NA (06/20/2007) $25.32 First Trust Morningstar Dividend NA () $13.7 Leaders Index Fun (FDL.P) First Trust Multi Cap Growth NA (06/20/2007) $22.93 (FAD.P) First Trust Multi Cap Value (FAB.P) NA (06/20/2007) $23.28 First Trust NASDAQ (QCLN.O) NA (06/20/2007) $14.08 First Trust NASDAQ-100 Equal NA () $18.81 Weighted Index Fund (QQEW.O) First Trust NASDAQ-100 Ex NA (06/20/2007) $17.09 (QQXT.O) First Trust NA () $19.74 NASDAQ-100-Technology Sector Index Fun (QTEC.O) First Trust S&P REIT (FRI.P) NA (06/20/2007) $10.83 First Trust Small Cap Core (FYX.P) NA (06/20/2007) $23.19 First Trust Technology (FXL.P) NA (06/20/2007) $17.01 First Trust Utilities (FXU.P) NA (06/20/2007) $14.42 First Trust Value Line (FVI.P) NA (06/20/2007) $16.79 First Trust Value Line Dividend NA (03/27/2007) $13.04 Index Fund (FVD.P) Global Alternative Energy (GEX.P) NA (06/20/2007) $21.89 Health Care Select Sector SPDR NA (03/13/2003) $30.96 Fund (XLV.P) ING Global Equity Dividend & U (07/18/2007) $11.9 Premium Opportunity F (IGD.N) Industrial SPDR (XLI.P) NA (03/13/2003) $27.82 Internet Architecture HOLDRS NA (03/18/2002) $48.25 (IAH.P) Internet HOLDRS (HHH.P) NA (03/18/2002) $53.67 Internet Infrastructure HOLDRS NA (03/18/2002) $2.58 (IIH.P) Jefferies TR/J CRB Global NA- $40.6 Commodity Equity Index F (CRBQ.P) Mactor Vectors Environmental NA (06/21/2007) $40.1 Services ETF (EVX.P) Market Vectors - Hard Assets Producers ETF (HAP.P) NA- $31.96 Market Vectors Agribusiness NA () $42.86 (MOO.P) Market Vectors Gold Miners ETF NA () $43.99 (GDX.P) Market Vectors Steel Index Fund NA (06/21/2007) $57.19 (SLX.P) Materials Select Sector SPDR Fund NA (03/13/2003) $31.03 (XLB.P) NFJ Dividend, Interest & Premium O (01/11/2010) $14.54 Strategy Fund (NFJ.N) Nuveen Equity Premium E (08/11/2008) $12.69 Opportunity Fund (JSN.N) Oil Services HOLDRS (OIH.P) NA (03/18/2002) $ Pharmaceutical HOLDRS (PPH.P) NA (03/18/2002) $64.74 PowerShares Aerospace & NA () $16.87 Defense Portfolio (PPA.P) PowerShares Buyback Achievers NA (06/21/2007) $20.16 (PKW.P) PowerShares CleanTech Portfolio NA (06/21/2007) $22.41 (PZD.P) PowerShares DWA Technical NA (06/21/2007) $18.1 Leaders Portfolio (PDP.P) PowerShares Dividend Achievers NA (06/21/2007) $12.27 Portfolio (PFM.P) PowerShares Dynamic Banking NA (06/21/2007) $12.17 Portfolio (PJB.P) PowerShares Dynamic Building NA () $11.51 and Construction (PKB.P) PowerShares Dynamic Consumer NA (06/21/2007) $19.77 Discretionary Portfol (PEZ.P) PowerShares Dynamic Consumer NA (06/21/2007) $24.21 Staples Portfolio (PSL.P) PowerShares Dynamic Energy & NA () $16.26 Exploration (PXE.P) PowerShares Dynamic Energy NA (06/21/2007) $26.5 Portfolio (PXI.P) PowerShares Dynamic Financial NA (06/21/2007) $16.21 Portfolio (PFI.P) PowerShares Dynamic Healthcare NA (06/21/2007) $23.41 Portfolio (PTH.P) PowerShares Dynamic Healthcare NA (06/21/2007) $20.03 Services Portfolio (PTJ.P) PowerShares Dynamic Industrials NA (06/21/2007) $21.25 Portfolio (PRN.P) PowerShares Dynamic Insurance NA () $13.42 Portfolio (PIC.P) PowerShares Dynamic Large Cap NA (03/10/2005) $13.64 Growth Portfolio (PWB.P) PowerShares Dynamic Large Cap NA (06/21/2007) $20.96 Portfolio (PJF.P) PowerShares Dynamic Large Cap Value Portfolio (PWV.P) NA (03/10/2005) $16.35

39 3 MORGAN STANLEY RESEARCH PowerShares Dynamic Mid Cap NA (03/10/2005) $16.34 Growth Portfolio (PWJ.P) PowerShares Dynamic Mid Cap NA (03/10/2005) $13.53 Value Portfolio (PWP.P) PowerShares Dynamic Oil & Gas NA () $16.31 Service Portfolio (PXJ.P) PowerShares Dynamic Retail NA () $15.53 Portfolio (PMR.P) PowerShares Dynamic Small Cap NA (03/10/2005) $12.27 Growth Portfolio (PWT.P) PowerShares Dynamic Small Cap NA (06/21/2007) $17.92 Portfolio (PJM.P) PowerShares Dynamic Small Cap NA (03/10/2005) $12.56 Value Portfolio (PWY.P) PowerShares Dynamic Technology NA (06/21/2007) $21.4 Portfolio (PTF.P) PowerShares Dynamic Utilities NA (06/21/2007) $13.99 Portfolio (PUI.P) PowerShares FTSE RAFI US 1500 NA (06/21/2007) $48.49 (PRFZ.O) PowerShares Financial Preferred NA (06/21/2007) $16.5 Portfolio (PGF.P) PowerShares International (PID.P) NA (06/21/2007) $13.47 PowerShares Listed Private NA (06/21/2007) $8.88 (PSP.P) PowerShares Lux Nanotech NA () $9.55 Portfolio (PXN.P) PowerShares QQQ (QQQQ.O) NA (03/13/2003) $43.02 PowerShares RAFI US 1000 NA () $46.48 Portfolio (PRF.P) PowerShares S&P 500 BuyWrite NA () $20.71 Portfolio (PBP.P) PowerShares Telecom & Wireless NA () $12.98 Portfolio (PTE.P) PowerShares Value Line (PYH.P) NA (06/21/2007) $17.84 PowerShares Value Line NA () $10.57 Timeliness Select Portfolio (PIV.P) PowerShares Water Resources NA () $15.84 Portfolio (PHO.P) PowerShares WilderHill Clean NA (03/10/2005) $9.55 Energy Portfolio (PBW.P) PowerShares WilderHill NA (06/21/2007) $22.32 Progressive (PUW.P) PowerShares Zacks Small Cap NA () $17.06 Portfolio (PZJ.P) Powershares Dynamic Basic NA (06/21/2007) $26.38 Materials Portfolio (PYZ.P) Powershares Dynamic Biotech & NA () $17.17 Genome (PBE.P) Powershares Dynamic Food & NA () $13.94 Beverage (PBJ.P) Powershares Dynamic Leisure and NA () $13.43 Entertainment (PEJ.P) Powershares Dynamic Market Port NA (02/09/2005) $36.85 (PWC.P) Powershares Dynamic Media NA () $11.57 (PBS.P) Powershares Dynamic Mid Cap NA (06/21/2007) $19.98 Portfolio (PJG.P) Powershares Dynamic Networking NA () $18.08 (PXQ.P) Powershares Dynamic OTC Port NA (02/09/2005) $39.39 (PWO.P) Powershares Dynamic NA () $18.52 Pharmaceuticals (PJP.P) Powershares Dynamic NA () $12.56 Semiconductors (PSI.P) Powershares Dynamic Software NA () $20.08 (PSJ.P) Powershares Golden Dragon Halter NA (02/09/2005) $23.12 USX China (PGJ.P) Powershares High Yield Equity NA (02/09/2005) $7.48 Dividend Achievers (PEY.P) Powershares Zacks Micro Cap NA () $9.44 Portfolio (PZI.P) Regional Bank HOLDRS (RKH.P) NA (03/18/2002) $76.87 Retail HOLDRS (RTH.P) NA (03/18/2002) $91.89 Rydex Equal Weight S&P Index NA (02/11/2005) $38.61 Fund (RSP.P) Rydex Russell Top 50 ETF (XLG.P) NA () $80.77 Rydex S&P 500 Pure Growth ETF NA () $32.87 (RPG.P) Rydex S&P 500 Pure Value ETF NA () $23.65 (RPV.P) Rydex S&P Equal Weight NA (06/21/2007) $36.57 Consumer Discretionary (RCD.P) Rydex S&P Equal Weight NA (06/21/2007) $49.31 Consumer Staples (RHS.P) Rydex S&P Equal Weight NA (06/21/2007) $43.56 Consumer Utilities (RYU.P) Rydex S&P Equal Weight Energy NA (06/21/2007) $49.6 (RYE.P) Rydex S&P Equal Weight NA (06/21/2007) $22.56 Financials (RYF.P) Rydex S&P Equal Weight Health NA (06/21/2007) $56.41 Care (RYH.P) Rydex S&P Equal Weight NA (06/21/2007) $42.49 Industrials (RGI.P) Rydex S&P Equal Weight Materials NA (06/21/2007) $49.7 (RTM.P) Rydex S&P MidCap 400 Pure NA () $56.69 Growth ETF (RFG.P) Rydex S&P MidCap 400 Pure Value ETF (RFV.P) NA () $28.28

40 4 MORGAN STANLEY RESEARCH Rydex S&P SmallCap 600 Pure NA () $36.27 Growth ETF (RZG.P) Rydex S&P SmallCap 600 Pure NA () $31.48 Value ETF (RZV.P) S&P MidCap 400 Dep. Rcpts NA (03/13/2003) $ (MDY.P) SPDR Biotech ETF (XBI.P) NA () $55.91 SPDR Dow Jones REIT ETF NA (03/18/2002) $45.55 (RWR.P) SPDR Metals & Mining ETF NA () $49.04 (XME.P) SPDR Oil & Gas Equipment and NA () $28.46 Services ETF (XES.P) SPDR Oil & Gas Exploration and NA () $40.67 Drilling ETF (XOP.P) SPDR Retail ETF (XRT.P) NA () $35.44 SPDR S&P 500 ETF (SPY.P) NA (03/13/2003) $ SPDR S&P Homebuilder ETF NA () $15.76 (XHB.P) SPDR S&P Pharmaceuticals ETF NA () $38.34 (XPH.P) SPDR Semiconductor ETF (XSD.P) NA () $44.52 Semiconductor HOLDRS (SMH.P) NA (03/18/2002) $25.79 Short Dow30 ProShares (DOG.P) NA () $53.4 Short MidCap400 ProShares NA () $45.04 (MYY.P) Short QQQ ProShares (PSQ.P) NA () $45.51 Short Russell2000 ProShares NA (06/21/2007) $45.31 (RWM.P) Short S&P500 ProShares (SH.P) NA () $53.94 Short SmallCap600 ProShares NA (06/21/2007) $40.12 (SBB.P) Software HOLDRS (SWH.P) NA (03/18/2002) $39.2 Technology SPDR (XLK.P) NA (03/18/2002) $21.32 Telecom HOLDRS (TTH.P) NA (03/18/2002) $23.11 Total Stock Mkt VIPERs (VTI.P) NA (03/13/2003) $54.77 Ultra Basic Materials (UYM.P) NA (06/21/2007) $28.95 Ultra Consumer Goods (UGE.P) NA (06/21/2007) $50.7 Ultra Consumer Services (UCC.P) NA (06/21/2007) $32.17 Ultra Dow 30ProShares (DDM.P) NA () $41.55 Ultra Financials (UYG.P) NA (06/21/2007) $5.23 Ultra Health Care (RXL.P) NA (06/21/2007) $49.23 Ultra Industrials (UXI.P) NA (06/21/2007) $29.92 Ultra MidCap400 ProShares NA () $39.93 (MVV.P) Ultra Oil & Gas (DIG.P) NA (06/21/2007) $32.36 Ultra QQQ ProShares (QLD.P) NA () $53.76 Ultra Real Estate (URE.P) NA (06/21/2007) $5.94 Ultra Russell MidCap Growth NA (06/21/2007) $29.79 (UKW.P) Ultra Russell MidCap Value (UVU.P) NA (06/21/2007) $23.66 Ultra Russell1000 Growth (UKF.P) NA (06/21/2007) $36.16 Ultra Russell1000 Value (UVG.P) NA (06/21/2007) $21.7 Ultra Russell2000 (UWM.P) NA (06/21/2007) $26.56 Ultra Russell2000 Growth (UKK.P) NA (06/21/2007) $28.5 Ultra Russell2000 Value (UVT.P) NA (06/21/2007) $20.72 Ultra S&P500 ProShares (SSO.P) NA () $35.76 Ultra Semiconductors (USD.P) NA (06/21/2007) $29.28 Ultra Short Russell MidCap Growth NA (06/21/2007) $27.25 (SDK.P) Ultra Short Russell MidCap Value NA (06/21/2007) $27.87 (SJL.P) Ultra Short Russell1000 Growth NA (06/21/2007) $37.11 (SFK.P) Ultra Short Russell1000 Value NA (06/21/2007) $54.34 (SJF.P) Ultra Short Russell2000 Growth NA (06/21/2007) $20.86 (SKK.P) Ultra Short Russell2000 Value NA (06/21/2007) $27.99 (SJH.P) Ultra SmallCap600 (SAA.P) NA (06/21/2007) $28.92 Ultra Technology ProShares NA (06/21/2007) $46.11 (ROM.P) Ultra Utilities ProShares (UPW.P) NA (06/21/2007) $34.01 UltraShort Basic Materials (SMN.P) NA (06/21/2007) $8.95 UltraShort Consumer Goods NA (06/21/2007) $41.92 (SZK.P) UltraShort Consumer Services NA (06/21/2007) $38.69 (SCC.P) UltraShort Dow30 Proshares NA (06/21/2007) $30.6 (DXD.P) UltraShort Financials (SKF.P) NA (06/21/2007) $25.34 UltraShort Health Care (RXD.P) NA (06/21/2007) $34.58 UltraShort Industrials (SIJ.P) NA (06/21/2007) $24.83 UltraShort MidCap 400 (MZZ.P) NA (06/21/2007) $22.7 UltraShort Oil & Gas (DUG.P) NA (06/21/2007) $13.19 UltraShort QQQ (QID.P) NA (06/21/2007) $20.57 UltraShort Real Estate ProShares NA (06/21/2007) $8.44 (SRS.P) UltraShort Russell2000 (TWM.P) NA (06/21/2007) $26.27 UltraShort S&P 500 (SDS.P) NA (06/21/2007) $36.81 UltraShort Semiconductors NA (06/21/2007) $19.83 (SSG.P) UltraShort SmallCap600 (SDD.P) NA (06/21/2007) $27.77 UltraShort Technology (REW.P) NA (06/21/2007) $25.01 UltraShort Utilities (SDP.P) NA (06/21/2007) $23.2 Utilities HOLDRS (UTH.P) NA (03/18/2002) $91.28 Utilities SPDR (XLU.P) NA (03/13/2003) $28.91 Vanguard Consumer Discretionary NA (03/05/2004) $46.05 VIPERs (VCR.P) Vanguard Cosumer Staples NA (03/05/2004) $65.66 VIPERs (VDC.P) Vanguard Dividend Appreciation NA () $45.97

41 4 MORGAN STANLEY RESEARCH VIPERs (VIG.P) Vanguard Emerging Markets NA (03/10/2005) $38.79 VIPERs (VWO.P) Vanguard Energy VIPERs (VDE.P) NA (11/11/2004) A$91.19 Vanguard European VIPERs NA (03/10/2005) $45.03 (VGK.P) Vanguard Financials VIPERs NA (03/05/2004) $28.32 (VFH.P) Vanguard Growth VIPERs (VUG.P) NA (03/05/2004) $51.32 Vanguard Health Care VIPERs NA (03/05/2004) $53.8 (VHT.P) Vanguard High Dividend Yield NA (06/21/2007) $36.97 (VYM.P) Vanguard Industrials VIPERs NA (11/11/2004) $51.1 (VIS.P) Vanguard Information Technology NA (03/05/2004) $51.58 VIPERs (VGT.P) Vanguard Large-Cap VIPERs NA (03/05/2004) $49.16 (VV.P) Vanguard Materials VIPERs NA (03/05/2004) $63.85 (VAW.P) Vanguard Mid-Cap VIPERs (VO.P) NA (03/05/2004) $58.72 Vanguard Pacific VIPERs (VPL.P) NA (03/10/2005) $50.88 Vanguard REIT VIPERs (VNQ.P) NA (11/11/2004) $41.48 Vanguard Small-Cap Growth NA (03/05/2004) $58.41 VIPERs (VBK.P) Vanguard Small-Cap VIPERs NA (03/05/2004) $56.01 (VB.P) Vanguard Small-Cap Value VIPERs NA (03/05/2004) $53.11 (VBR.P) Vanguard Telecom Services NA (11/11/2004) $51.97 VIPERs (VOX.P) Vanguard Utilities VIPERs (VPU.P) NA (03/05/2004) $61.02 Vanguard Value VIPERs (VTV.P) NA (03/05/2004) $46.58 Wireless HOLDRS (WMH.P) NA (03/18/2002) $43.18 WisdomTree Dividend Top 100 NA () $39.98 Fund (DTN.P) WisdomTree Earnings 500 Index NA (06/21/2007) $37.97 (EPS.P) WisdomTree Earnings Index NA (06/21/2007) $38.59 (EXT.P) WisdomTree Earnings Top 100 NA (06/21/2007) $37.55 Index (EEZ.P) WisdomTree High-Yielding Equity NA () $33.2 Fund (DHS.P) WisdomTree LargeCap Dividend NA () $40.01 Fund (DLN.P) WisdomTree Low P/E Index NA (06/21/2007) $34.25 (EZY.P) WisdomTree MidCap Dividend NA () $41.6 Fund (DON.P) WisdomTree MidCap Earnings NA (06/21/2007) $42.14 (EZM.P) WisdomTree SmallCap Earnings NA (06/21/2007) $40.07 (EES.P) WisdomTree Total Dividend Fund NA () $40.05 (DTD.P) ishare Russell 2000 Fd (IWM.P) NA (03/18/2002) $60.61 ishares Barclays Aggregate NA (10/31/2003) $ (AGG.P) ishares COMEX Gold Trust (IAU.P) NA (01/28/2005) $ ishares Cohen & Steers Realty NA (03/18/2002) $48.43 Majors (ICF.P) ishares DJ Basic Materials (IYM.P) NA (03/18/2002) $57.13 ishares DJ Cons Non-Cyclical NA (03/13/2003) $55.56 (IYK.P) ishares DJ Consumer Cyclical NA (03/13/2003) $54.46 (IYC.P) ishares DJ Financial (IYF.P) NA (03/18/2002) $50.05 ishares DJ Financial Svcs (IYG.P) NA (03/18/2002) $52.02 ishares DJ Healthcare (IYH.P) NA (03/13/2003) $63.47 ishares DJ Industrial (IYJ.P) NA (03/18/2002) $52.13 ishares DJ Real Estate (IYR.P) NA (03/18/2002) $42.84 ishares DJ Technology (IYW.P) NA (03/13/2003) $53.93 ishares DJ Telecom (IYZ.P) NA (03/13/2003) $18.24 ishares DJ Transportation Avg NA (10/31/2003) $70.73 Index Fund (IYT.P) ishares DJ US Aerospace & NA (05/02/2008) $51.02 Defense (ITA.P) ishares DJ US Energy (IYE.P) NA (03/18/2002) $32.29 ishares DJ US Tot Mkt Fd (IYY.P) NA (03/18/2002) $53.76 ishares DJ Utilities (IDU.P) NA (03/13/2003) $70.18 ishares Dow Jones US NA () $26.04 Broker-Dealers Index Fund (IAI.P) ishares Dow Jones US Healthcare NA (06/25/2007) $48.16 Providers Index Fu (IHF.P) ishares Dow Jones US Home NA () $13.04 Construction Index Fund (ITB.P) ishares Dow Jones US Insurance NA () $26.38 Index Fund (IAK.P) ishares Dow Jones US Medical NA (06/25/2007) $52.91 Devices Index Fund (IHI.P) ishares Dow Jones US Oil & Gas NA () $53.05 Exploration & Produ (IEO.P) ishares Dow Jones US Oil NA () $43.18 Equipment & Services Inde (IEZ.P) ishares Dow Jones US NA () $57.02 Pharmaceuticals Index Fund (IHE.P) ishares Dow Jones US Regional NA () $21.87 Banks Index Fund (IAT.P) ishares FTSE NAREIT NA (06/20/2007) $21.33 Industrial/Office (FIO.P) ishares FTSE NAREIT Mortgage NA (06/20/2007) $14.35

42 4 MORGAN STANLEY RESEARCH REITs (REM.P) ishares FTSE NAREIT Real Estate NA (06/20/2007) $25.72 (FTY.P) ishares FTSE NAREIT Residential NA (06/20/2007) $29.08 (REZ.P) ishares Goldman Sachs NA (03/18/2002) $45.46 Semiconductor (IGW.P) ishares Goldman Sachs Software NA (03/18/2002) $44.06 (IGV.P) ishares Goldman Sachs NA (03/18/2002) $50.81 Technology (IGM.P) ishares KLD 400 Social (DSI.P) NA (06/20/2007) $41.37 ishares KLD Select Social Index NA (01/28/2005) $47.37 Fund (KLD.P) ishares Morningstar Large Core NA (07/23/2004) $62.65 (JKD.P) ishares Morningstar Large Growth NA (07/23/2004) $55.83 (JKE.P) ishares Morningstar Large Value NA (07/23/2004) $51.99 (JKF.P) ishares Morningstar Mid Core NA (07/23/2004) $66.5 (JKG.P) ishares Morningstar Mid Growth NA (07/23/2004) $73.2 (JKH.P) ishares Morningstar Mid Value NA (07/23/2004) $63.44 (JKI.P) ishares Morningstar Small Core NA (07/23/2004) 6, (JKJ.P) ishares Morningstar Small Growth NA (07/23/2004) $62.25 (JKK.P) ishares Morningstar Small Value NA (07/23/2004) $66.05 (JKL.P) ishares NYSE 100 Index Fund NA (04/02/2004) $53.39 (NY.P) ishares NYSE Composite Index NA (04/02/2004) $63.24 Fund (NYC.P) ishares Nasdaq Biotech (IBB.O) NA (03/13/2003) $83.67 ishares Russell 1000 Fd (IWB.P) NA (03/18/2002) $59.53 ishares Russell 1000 Growth NA (03/18/2002) $48.17 (IWF.P) ishares Russell 1000 Value NA (03/18/2002) $55.97 (IWD.P) ishares Russell 2000 Growth NA (03/18/2002) $65.96 (IWO.P) ishares Russell 2000 Value NA (03/18/2002) $56.53 (IWN.P) ishares Russell 3000 Fd (IWV.P) NA (03/13/2003) $63.32 ishares Russell 3000 Growth NA (03/18/2002) $39.1 (IWZ.P) ishares Russell 3000 Value NA (03/18/2002) $73.09 (IWW.P) ishares Russell Microcap Index NA () $38.36 Fund (IWC.P) ishares Russell MidCap (IWR.P) NA (03/18/2002) $80.68 ishares Russell MidCap Growth NA (03/18/2002) $44.16 (IWP.P) ishares Russell MidCap Value NA (03/18/2002) $36.29 (IWS.P) ishares S&P 100 Idx Fd (OEF.P) NA (03/18/2002) $49.89 ishares S&P 1500 Index Fund NA (03/05/2004) $48.61 (ISI.P) ishares S&P 500 Fd (IVV.P) NA (03/13/2003) $ ishares S&P MidCap 400 Fd NA (03/18/2002) $70.89 (IJH.P) ishares S&P MidCap400/Barra NA (03/13/2003) $75.71 Grwth (IJK.P) ishares S&P MidCap400/Barra NA (03/13/2003) $64.93 Value (IJJ.P) ishares S&P North Amer NA (03/18/2002) $26.25 Tech-Multimedia Net Idx Fd (IGN.P) ishares S&P North American NA (03/18/2002) $32.96 Natural Resources Secto (IGE.P) ishares S&P SmallCap 600 (IJR.P) NA (03/13/2003) $53.12 ishares S&P SmallCap 600/Barra NA (03/13/2003) $56.9 Value (IJS.P) ishares S&P SmallCap600/Barra NA (03/13/2003) $54.98 Gwth (IJT.P) ishares S&P500/Barra Growth NA (03/13/2003) $55.74 (IVW.P) ishares S&P500/Barra Value NA (03/13/2003) $51.79 (IVE.P) ishares Select Dividend Index Fund NA (11/20/2003) $42.84 (DVY.P) streettracks DJ LargeCap Gwth NA (03/18/2002) $47.66 (ELG.P) streettracks DJ LargeCap Value NA (03/18/2002) $56.09 (ELV.P) streettracks DJ SmallCap NA (03/18/2002) $82.04 Growth (DSG.P) streettracks DJ SmallCap Value NA (03/18/2002) $55.27 (DSV.P) streettracks DJ Wilshire Large NA () $50.33 Cap (ELR.P) streettracks DJ Wilshire Mid Cap NA () $46.57 (EMM.P) streettracks DJ Wilshire Mid Cap NA () $57.15 Growth (EMG.P) streettracks DJ Wilshire Mid Cap NA () $44.4 Value (EMV.P) streettracks DJ Wilshire Small NA () $51.15 Cap (DSC.P) streettracks KBW Bank ETF NA () $22.38 (KBE.P) streettracks KBW Capital NA () $34.46

43 4 MORGAN STANLEY RESEARCH Markets ETF (KCE.P) streettracks KBW Insurance ETF (KIE.P) streettracks MS High-Tech 35 (MTK.P) streettracks SPDR Dividend (SDY.P) streettracks Total Market ETF (TMW.P) streettracks KBW Regional Banking ETF (KRE.P) NA () $35.01 NA (03/18/2002) $54.72 NA () $45.52 NA (03/18/2002) $79.78 NA () $23.26 Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted. Industry Coverage: International Equity Company (Ticker) Rating (as of)price* (02/11/2010) Dominic Maister BLDRS Asia 50 ADR (ADRA.O) NA (03/12/2004) $24.79 BLDRS Developed Markets 100 NA (03/12/2004) $19.92 ADR (ADRD.O) BLDRS Emerging Markets 50 ADR NA (03/12/2004) $40.75 (ADRE.O) BLDRS Europe 100 ADR NA (03/12/2004) $19.47 (ADRU.O) Claymore/Robeco Developed NA (06/20/2007) $17 International (EEN.P) Claymore/S&P Global Water ETF NA (06/20/2007) $17.48 (CGW.P) Fresco Dow Jones Euro STOXX 50 NA (10/21/2002) $36.38 Fund (FEZ.P) Fresco Dow Jones STOXX 50 Fund NA (10/21/2002) $32.31 (FEU.P) Market HOLDRS (MKH.P) NA (03/18/2002) $47.31 Market Vectors Russia ETF NA (06/21/2007) $30.63 (RSX.P) PowerShares Global Clean Energy NA () $14.56 Portfolio (PBD.P) PowerShares Global Water NA (12/20/2007) $17.2 Portfolio (PIO.P) PowerShares India Portfolio NA () $20.87 (PIN.P) ProShares UltraShort FTSE/Xinhua NA- $9.1 China 25 (FXP.P) ProShares UltraShort MSCI NA () $11.96 Emerging Markets (EEV.P) SPDR DJ Wilshire International NA (06/21/2007) $33.48 (RWX.P) SPDR MSCI ACWI ex-us ETF NA (06/21/2007) $29.43 (CWI.P) SPDR Russell/Nomura (JPP.P) NA (06/21/2007) $37.3 SPDR Russell/Nomura Small Cap NA (06/21/2007) $37.91 (JSC.P) SPDR S&P China (GXC.P) NA (06/21/2007) $67.62 SPDR S&P Emerging Asia Pacific NA (06/21/2007) $69.66 (GMF.P) SPDR S&P Emerging Europe NA (06/21/2007) $41.61 (GUR.P) SPDR S&P Emerging Latin NA (06/21/2007) $72.98 America (GML.P) SPDR S&P Emerging Markets NA (06/21/2007) $60.13 (GMM.P) SPDR S&P Emerging Middle East NA (06/21/2007) $61.19 & Africa (GAF.P) SPDR S&P International Small Cap NA (06/21/2007) $24.72 (GWX.P) SPDR S&P World ex-us ETF NA (06/21/2007) $22.6 (GWL.P) SPDR/FTSE Macquarie (GII.P) NA (06/21/2007) $39.35 Vanguard Europe Pacific ETF NA (08/28/2008) $32.24

44 4 MORGAN STANLEY RESEARCH (VEA.P) Vanguard FTSE All World ex-us NA () $79.2 Small-Cap (VSS.P) Vanguard FTSE All-World (VEU.P) NA (06/21/2007) $41.08 WisdomTree DIEFA Fund (DWM.P) NA () $43.78 WisdomTree DIEFA High-Yielding NA () $39.74 Fund (DTH.P) WisdomTree Europe High-Yielding NA () $38.41 Equity Fund (DEW.P) WisdomTree Europe SmallCap NA () $35.02 Dividend Fund (DFE.P) WisdomTree Europe Total Dividend NA () $40.87 Fund (DEB.P) WisdomTree India Earnings Fund NA () $21.13 (EPI.P) WisdomTree International Basic NA (06/21/2007) $25.83 Materials (DBN.P) WisdomTree International NA (06/21/2007) $22.39 Communications (DGG.P) WisdomTree International NA (06/21/2007) $24.09 Consumer (DPN.P) WisdomTree International Dividend NA () $40.33 Top 100 Fund (DOO.P) WisdomTree International Energy NA (06/21/2007) $23.54 (DKA.P) WisdomTree International Health NA (06/21/2007) $23.35 (DBR.P) WisdomTree International Industrial NA (06/21/2007) $20.7 (DDI.P) WisdomTree International NA () $43.34 LargeCap Dividend Fund (DOL.P) WisdomTree International MidCap NA () $45.39 Dividend Fund (DIM.P) WisdomTree International NA () $43.89 SmallCap Dividend Fund (DLS.P) WisdomTree International NA (06/21/2007) $17.94 Technology (DBT.P) WisdomTree International Utilities NA (06/21/2007) $20.81 (DBU.P) WisdomTree Japan High-Yielding NA () $46.23 Equity Fund (DNL.P) WisdomTree Japan SmallCap NA () $39.12 Dividend Fund (DFJ.P) WisdomTree Japan Total Dividend NA () $40.21 Fund (DXJ.P) WisdomTree Pacific ex-japan NA () $53.3 High-Yielding Dividend (DNH.P) WisdomTree Pacific ex-japan Total NA () $57.4 Dividend Fund (DND.P) ishares EAFE Growth (EFG.P) NA () $52.46 ishares EAFE Value (EFV.P) NA () $47.44 ishares FTSE/Xinhua China NA (11/11/2004) $39.68 (FXI.P) ishares Global 100 (IOO.P) NA (03/18/2002) A$63.72 ishares Global Infrastructure Index NA () $32.51 Fund (IGF.P) ishares MSCI Australia (EWA.P) NA (03/18/2002) $21.66 ishares MSCI Austria (EWO.P) NA (03/18/2002) $18.72 ishares MSCI BRIC Index Fund NA () $42.21 (BKF.P) ishares MSCI Belgium (EWK.P) NA (03/18/2002) $12.46 ishares MSCI Brazil (EWZ.P) NA (03/18/2002) $66.93 ishares MSCI Canada (EWC.P) NA (03/18/2002) $25.49 ishares MSCI Capped Investable NA () $55.37 Market Index Fund (EIS.P) ishares MSCI Chile Index Fund NA () $55.01 (ECH.P) ishares MSCI EAFE (EFA.P) NA (03/13/2003) $52.2 ishares MSCI EAFE Small Cap NA () $34.65 Index Fund (SCZ.P) ishares MSCI EMU (EZU.P) NA (03/13/2003) $33.52 ishares MSCI Emerging Markets NA (03/12/2004) $38.94 Free (EEM.P) ishares MSCI France (EWQ.P) NA (03/18/2002) $23.26 ishares MSCI Germany (EWG.P) NA (03/13/2003) $20.03 ishares MSCI Hong Kong (EWH.P) NA (03/18/2002) $15.16 ishares MSCI Italy (EWI.P) NA (03/18/2002) $17.25 ishares MSCI Japan (EWJ.P) NA (03/13/2003) $9.86 ishares MSCI Malaysia (EWM.P) NA (03/18/2002) $10.46 ishares MSCI Mexico (EWW.P) NA (03/18/2002) $47.2 ishares MSCI Netherlands NA (03/18/2002) $19.26 (EWN.P) ishares MSCI Pacific ex-japan NA (03/18/2002) $39.24 (EPP.P) ishares MSCI Singapore (EWS.P) NA (03/18/2002) $10.95 ishares MSCI South Africa (EZA.P) NA (03/12/2004) $53.79 ishares MSCI South Korea NA (03/18/2002) $46.15 (EWY.P) ishares MSCI Spain (EWP.P) NA (03/18/2002) $40.88 ishares MSCI Sweden (EWD.P) NA (03/18/2002) $23.6 ishares MSCI Switzerland (EWL.P) NA (03/18/2002) $21.28 ishares MSCI Taiwan (EWT.P) NA (03/18/2002) $11.89 ishares MSCI Thailand Index Fund NA () $40.01 (THD.P) ishares MSCI Turkey Index Fund NA () $53.07 (TUR.P) ishares MSCI United Kingdom NA (10/17/2006) $15.29 (EWU.P) ishares S&P Europe 350 (IEV.P) NA (03/13/2003) $35.91 ishares S&P Global Consumer NA (06/21/2007) $55.6 Staples Sector Index F (KXI.P) ishares S&P Global Energy (IXC.P) NA (03/18/2002) $33.88 ishares S&P Global Financial (IXG.P) NA (03/18/2002) $42.21

45 4 MORGAN STANLEY RESEARCH ishares S&P Global Healthcare NA (03/18/2002) $50.73 (IXJ.P) ishares S&P Global Industrial NA (06/21/2007) $43.73 Sector Index Fund (EXI.P) ishares S&P Global Materials NA (06/21/2007) $57.91 Sector Index Fund (MXI.P) ishares S&P Global Technology NA (03/18/2002) $53.1 (IXN.P) ishares S&P Global Telecom NA (03/18/2002) $50.99 (IXP.P) ishares S&P Global Utilities Sector NA (06/21/2007) $44.48 Index Fund (JXI.P) ishares S&P Latin America 40 NA (03/18/2002) $44.02 (ILF.P) ishares S&P/TOPIX 150 (ITF.P) NA (03/18/2002) $42.93 streettracks DJ Global Titans (DGT.P) NA (03/18/2002) $53.96 Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted. Industry Coverage: Fixed Income Company (Ticker) Rating (as of)price* (02/11/2010) Dominic Maister Market Vectors Intermediate NA (05/22/2008) $21.53 Municipal Index ETF (ITM.P) Market Vectors-LB AMT-Free Short NA (05/22/2008) $17.42 Municipal (SMB.P) Market Vectors-Lehman AMT-Free NA (05/22/2008) $18.3 Long Muni (MLN.P) PowerShares Active Low Duration NA (05/22/2008) $25.5 Fund (PLK.P) PowerShares EM Sovereign Debt NA (05/22/2008) $25.3 (PCY.P) PowerShares High Yield Corporate NA (05/22/2008) $17.24 Bond (PHB.P) PowerShares Insured Municipal NA (05/22/2008) $23.8 Bond (PZA.P) PowerShares Preferred Portfolio NA (05/22/2008) $13.65 (PGX.P) PowerShares VRDO Tax-Free NA (05/22/2008) $24.99 Weekly Port. (PVI.P) SPDR Barclays Capital Convertible NA () $36.52 Bond ETF (CWB.P) SPDR Barclays Capital High Yield NA (05/22/2008) $37.17 Bond ETF (JNK.P) SPDR Barclays Capital NA (05/06/2008) $55.82 International Treasury Bond (BWX.P) SPDR Barclays Capital Short Term NA (05/15/2009) $35.71 International Tre (BWZ.P) SPDR Barclays Capital TIPS ETF NA (05/22/2008) $51.25 (IPE.P) SPDR DB Int'l Gvrnmt. NA (05/22/2008) $54.07 Inflation-Protected Bond (WIP.P) SPDR Lehman 1-3 Month T-Bill NA (05/22/2008) $45.87 ETF (BIL.P) SPDR Lehman Aggregate Bond NA (05/22/2008) $55.04 ETF (LAG.P) SPDR Lehman Intermediate Term NA (05/22/2008) $57.61 Treasury (ITE.P) SPDR Lehman Long Term NA (05/22/2008) $53.49 Treasury ETF (TLO.P) SPDR Lehman Municipal Bond ETF NA (05/22/2008) $22.85 (TFI.P) SPDR Lehman Short Term NA (05/22/2008) $24.11 Municipal Bond (SHM.P) UltraShort Lehman 20+ Year NA (05/22/2008) $49.14 Treasury (TBT.P) UltraShort Lehman 7-10 Year NA (05/22/2008) $51.82 Treasury (PST.P) Vanguard Extended Duration NA (05/22/2008) $77.65 Treasury ETF (EDV.P) Vanguard Intermediate-Term Bond NA (06/21/2007) $79.99 ETF (BIV.P) Vanguard Long-Term Bond ETF NA (06/21/2007) $75.9

46 4 MORGAN STANLEY RESEARCH The Americas 1585 Broadway New York, NY United States Tel: +1 (1) Europe 25 Cabot Square, Canary Wharf London E14 4QA United Kingdom Tel: +44 (0) Japan Ebisu, Shibuya-ku Tokyo Japan Tel: +81 (0) Asia/Pacific Three Exchange Square Central Hong Kong Tel: (BLV.P) Vanguard Mid-Cap Growth (VOT.P) NA (06/21/2007) $46.94 Vanguard Mid-Cap Value (VOE.P) NA (06/21/2007) $43.82 Vanguard Short-Term Bond NA (06/21/2007) $80.13 (BSV.P) Vanguard Total Bond Market NA (06/21/2007) $79.15 (BND.P) Vanguard Total World Stock Index NA () $41.07 (VT.P) ishares Barclays 1-3 Year Credit NA (06/20/2007) $ (CSJ.P) ishares Barclays 1-3 Year Treasury NA (08/27/2002) $83.5 Bond Fund (SHY.P) ishares Barclays Year NA (06/20/2007) $107.9 (TLH.P) ishares Barclays 20+ Year NA (08/27/2002) $89.82 Treasury Bond Fund (TLT.P) ishares Barclays 3-7 Year Treasury NA (06/20/2007) $ (IEI.P) ishares Barclays 7-10 Year NA (08/27/2002) $89.91 Treasury Bond Fund (IEF.P) ishares Barclays Agency Bond NA () $ Fund (AGZ.P) ishares Barclays Credit Bond NA (06/20/2007) $ (CFT.P) ishares Barclays NA (06/20/2007) $ Government/Credit (GBF.P) ishares Barclays Intermediate NA (06/20/2007) $ (CIU.P) ishares Barclays Intermediate NA (06/20/2007) $ Gov/Credit (GVI.P) ishares Barclays MBS Bond Fund NA (06/20/2007) $ (MBB.P) ishares Barclays Short Treasury NA (06/20/2007) $110.2 (SHV.P) ishares Barclays TIPS Bond Fund NA (01/22/2004) $ (TIP.P) ishares JPMorgan USD Emerging NA (05/22/2008) $ Markets Bond Fund (EMB.P) ishares S&P National Municipal NA (05/22/2008) $ Bond (MUB.P) ishares S&P ShortTerm National NA () $105.4 Municipal Bond Fund (SUB.P) ishares S&P U.S. Preferred Stock NA (06/21/2007) $37.24 Index Fund (PFF.P) ishares iboxx High Yield (HYG.P) NA (06/20/2007) $84.05 ishares iboxx Inv Grade Corporate Bond Fund (LQD.P) NA (08/27/2002) $ Industry Coverage: Currency Company (Ticker) Rating (as of)price* (02/11/2010) Dominic Maister Currency Shares Australian Dollar NA (08/29/2006) $89.18 Trust (FXA.P) Currency Shares British Pound NA (08/29/2006) $ Sterling Trust (FXB.P) Currency Shares Canadian Dollar NA (08/29/2006) $94.78 Trust (FXC.P) Currency Shares Japanese NA (06/20/2007) $ (FXY.P) Currency Shares Mexican Peso NA (08/29/2006) $77.27 Trust (FXM.P) Currency Shares Swedish Krona NA (08/29/2006) $ Trust (FXS.P) Currency Swiss Franc Trust NA (08/29/2006) $92.88 (FXF.P) Euro Currency Trust (FXE.P) NA (08/25/2006) $ PowerShares DB G10 Currency NA (06/21/2007) $23.11 Harvest Fund (DBV.P) PowerShares DB US Dollar Index NA (06/21/2007) $26.86 Bearish Fund (UDN.P) PowerShares DB US Dollar Index Bullish Fund (UUP.P) NA (06/21/2007) $23.55 Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted. Stock Ratings are subject to change. Please see latest research for each company. * Historical prices are not split adjusted.