Strengthen your Core with ishares ETFs Brett M. Mossman, Vice President

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1 Strengthen your Core with ishares ETFs Brett M. Mossman, Vice President February, 2013

2 Meet the ishares Core ETFs Funds Total Market US STOCKS INTL. STOCKS US BONDS S&P ITOT Total U.S. Stock Market ETF IXUS MSCI Total International Stock ETF AGG Expense ratio: 0.07% Expense ratio: 0.16% Total U.S. Bond Market ETF Expense ratio: 0.08% Funds Components US STOCKS INTL. STOCKS US BONDS S&P IVV S&P 500 ETF IEFA MSCI EAFE ETF ISTB Expense ratio: 0.07% S&P Expense ratio: 0.14% IJH Mid-Cap ETF IEMG MSCI Emerging Markets ETF ILTB Expense ratio: 0.15% 1 Expense ratio: 0.18% Short-Term U.S. Bond ETF Expense ratio: 0.12% Long-Term U.S. Bond ETF Expense ratio: 0.12% IJR S&P Small-Cap ETF Expense ratio: 0.16% 1 1. Expense ratios shown above for IJH and IJR include acquired fund fees (1 bp for IJH and 2 bps for IJR). 2

3 3 Easy Steps to a Stronger Core Start with the essentials Consider the essentials. Access major asset classes and go global with just 3 ishares ETFs: US stocks (ITOT) International stocks (IXUS) US bonds (AGG) Next customize your core Next, tailor your exposure with just 7 more ishares ETFs. Consider customizing your exposure to developed (IEFA) and emerging (IEMG) market stocks, small (IJR), mid (IJH), and large cap (IVV) US stocks, and short (ISTB) and long term (ILTB) bonds. Then capture opportunities Then, open yourself to a world of possibilities. Looking for income? Consider HDV. Or less volatility? Try an ishares minimum volatility strategy. ishares offers you over 275 transparent, cost- and tax-efficient ETFs to implement your ideas. 3

4 What makes the ishares Core different Competitively priced and tax efficient The offers a suite of competitively priced and tax efficient ETFs that are designed to help you keep more of what you earn at the heart of your portfolio, where it matters most. Flexible The is designed to fit together and fit a variety of needs. Professional quality Demanding investors turn to ishares for transparent, diversified, tax efficient products from BlackRock, a leader in risk management with 40 years of indexing experience out of 10 large professional investors choose ishares for their ETFs. Source: Greenwich Associates U.S. ETF Research. Base: 62 pensions, foundations, and endowments using ETFs between February and April 2012; nearly 90% (89%) use ishares, compared to 60%, 47% and 40% that use the other most-used ETF providers. Tax efficiency sourced from BlackRock, as of 12/11. Over the last 10 years, ishares has not paid capital gains 98% of the time. Past distributions are not indicative of future distributions. BlackRock advises many of the world s largest companies and governments on managing risks and understanding capital markets. 4

5 Visit ishares.com and find out why 9 of 10 large professional investors choose ishares for their ETFs out of 10 large professional investors choose ishares for their ETFs. Source: Greenwich Associates U.S. ETF Research. Base: 62 pensions, foundations, and endowments using ETFs between February and April 2012; nearly 90% (89%) use ishares, compared to 60%, 47% and 40% that use the other most-used ETF providers. 5

6 Carefully consider the ishares Funds investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds prospectuses, which may be obtained by calling iShares ( ) or by visiting Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Bonds and bond funds will decrease in value as interest rates rise and are subject to credit risk, which refers to the possibility that the debt issuers may not be able to make principal and interest payments or may have their debt downgraded by ratings agencies. The information provided is not intended to be a complete analysis of every material fact respecting any strategy and has been presented for educational purposes only. Asset allocation models and diversification do not promise any level of performance or guarantee against loss of principal. Shares of ishares Funds are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. The ishares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, BlackRock ). The ishares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc. or Standard & Poor s, nor are they sponsored, endorsed or issued by Barclays Capital Inc. None of these companies make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the companies listed above BlackRock. All rights reserved. ishares and BlackRock are registered trademarks of BlackRock. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. is

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