BLACKROCK GLOBAL ETP LANDSCAPE

Transcription

1 BLACKROCK GLOBAL ETP LANDSCAPE INDUSTRY HIGHLIGHTS JULY The opinions expressed are as of July 31, and may change as subsequent conditions vary. ONLY FOR ACCREDITED INVESTORS IN CANADA, QUALIFIED INVESTORS IN SWITZERLAND,

2 Summary BlackRock ETP Research A cross-regional team analyzing global markets to deliver insights on the intersection of investment trends and ETP flows For inquiries, please ETPresearch@BlackRock.com GLOBAL ETP FLOWS ACCELERATE AS GREECE AND CHINA CONCERNS EASE July global ETP flows of $36.3bn were the best in five months, with investors initially favoring safer fund categories before shifting attention to non-u.s. developed markets equity later in the month U.S. large cap equity and U.S. Treasuries gathered $9.2bn and $3.7bn, respectively, concentrated in the first two weeks given uncertainty surrounding the referendum in Greece and stock market correction in China As tensions abated, a greater share of flows moved to non-u.s. developed markets equity, with pan-european exposures reaching $6.6bn, Japan $6.5bn and EAFE $2.2bn Currency-hedged equity flows remained steady, with $3.5bn driven by Europe exposures as the U.S. dollar again showed signs of strengthening Demand for investment grade and high yield corporate bonds rebounded, with each bringing in over $1bn Global ETP Overview 3 United States 9 Europe 13 Asia Pacific 17 Canada 2 Latin America 23 Endnotes 25 [ 2 ]

3 Global ETP Highlights Global ETP flows accelerated to $36.3bn in July. It was the second best month of the year, with strong contributions across U.S. equities, non-u.s. developed markets equities and fixed income. KEY INVESTMENT THEMES / ETP FLOW TRENDS Highlighting the trend of steadily increasing ETP adoption, it was the third straight July with flows over $3bn despite lower trading volumes typical during the summer. The month began with uncertainty over the referendum in Greece and stock market correction in China. This led investors to favor safer equity and fixed income exposures. Europe equity Japan equity Broad dev eqty China equity U.S. large cap and U.S. Treasuries brought in $9.2bn and $3.7bn, respectively, though both slowed considerably toward the end of July as market tensions eased and U.S. earnings season got off to a weaker-than-expected start. GLOBAL ETP FLOWS BY ASSET CLASS & EXPOSURE 1 YTD flows: $181.6bn Focus shifted back to non-u.s. developed markets equities and corporate bonds. Japan, pan-european and EAFE equity exposures all posted strong results. Pan-European flows were particularly robust, rising for the second month to $6.6bn. As Greece fears eased, attention shifted to what has so far been a good earnings season relative to the U.S. Currency-hedged and smart beta equity, the two fastest growing ETP segments, remained steady with flows of $3.5bn and $1.6bn, respectively. Smart beta (see below) is still on track to reach the record flows from last year. Cumulative flows (US$bn) 6 3 (3) Europe equity Broad dev mkts Japan EM U.S. Other J F M A M J J (21.6) Cumulative flows (US$bn) Inv grade / high yld corp U.S. Gov. / Sovereign Other fixed income Cmdty / other J F M A M J J SPOTLIGHT ON SMART BETA GLOBAL SMART BETA ETP FLOWS Global smart beta ETPs are experiencing strong flows for a third consecutive year. Assets have expanded rapidly, growing at an annualized rate of nearly 4% since the beginning of 212. This is twice the rate for the broader ETP industry. A few notable trends: 1) Despite a slowdown for dividend strategies so far this year, flows of $21.7bn for other categories such as minimum volatility and factor funds have accelerated 2) Europe is growing faster than any other region, with assets of $2bn up 5% per year since 212 and year-to-date flows approaching $3bn 3) Fixed income smart beta funds are gaining traction, and while assets and flows are still small, a dozen funds have been launched including the first in Europe (US$bn) Assets (US$bn) Dividend Minimum volatility Single factor Multi factor 43.2 Equal weight YTD [ 3 ]

4 Global ETP Highlights (cont d) The currency-hedged flows were driven by Europe exposures, which accumulated $2.1bn amid renewed U.S. dollar appreciation. The dollar reached a three-month high versus the euro during the month. Broad EM equities slowed for the third straight month with redemptions totaling ($2.7bn). However, there has not been a catalyst behind the selling and year-to-date flows are unchanged from March levels. The category has stayed in a tight range all year with the recent outflows offsetting asset gathering in the second quarter. China equity flows were volatile during July. A-shares funds listed in China accumulated $8.bn in the first week despite the sharp market drop. These flows later reversed, resulting in outflows of ($2.bn). Conversely, both A-shares and H-shares funds listed in the U.S. began to sell off later in the month. They shed ($.7bn) after posting steady inflows of $2.4bn during the first half of the year. The CSI 3 fell 14.8% in July, while the Hang Seng index in Hong Kong was down only 6.2%. 2 Fixed income flows rebounded to $9.6bn following the first outflows of the year in June. As asset gathering for U.S. Treasuries subsided mid-month, corporate bond flows began to accelerate again. Investment grade corporate bond funds brought in $1.6bn and high yield corporate bonds added $1.bn. Commodities were mixed with outflows totaling ($.9bn). Both oil and gold prices dropped, but crude oil ETPs saw inflows of $2.1bn while gold redemptions were ($2.3bn). RESULTS AT A GLANCE 1 (US$bn) July Dec 214 July 214 Monthly flows Year-to-date flows Assets 2,984 2,797 2,585 # of ETPs 5,688 5,431 5,217 GLOBAL 13-MONTH ROLLING FLOWS 1 (US$bn) 214 December Equity July June May April March February January November October September August July (2) Monthly flows (US$bn) Fixed income Commodities & others [ 4 ]

5 Year-to-date Overview GLOBAL ETP FLOWS BY EXPOSURE 1 (US$bn) YTD YTD 214 Annual 214 Equity Developed Markets Equity Emerging Markets Equity (21.6) 6.6 (1.8) Total Fixed Income Government Investment Grade Corporate High Yield Corporate Others Total Commodities & others Total Grand Total CUMULATIVE ETP FLOWS 1 YTD flows $181.6bn J F M A M J J A S O N D CUMULATIVE EQUITY ETP FLOWS 1 CUMULATIVE FIXED INCOME ETP FLOWS 1 YTD equity flows: $122.6bn YTD fixed income flows: $52.6bn J F M A M J J A S O N D J F M A M J J A S O N D [ 5 ]

6 By Listing Region Highlights (US$): 1 U.S.-listed funds led July flows with $22.6bn including a fivemonth high for fixed income Europe-listed ETP flows rebounded to $7.9bn, the highest level since February, following a slowdown in Q2 Canada-listed ETPs gathered $.4bn to extend their streak of consecutive inflows to 18 months Asia Pacific-listed flows of $5.4bn were the highest since December, despite a pullback during the second half of the month for Japan and China equity exposures MONTH-TO-DATE FLOWS BY LISTING REGION 1 ASSET GROWTH RATES AND # OF ETPs 1 (# ETPs) U.S Europe 7.9 Canada.4 Equity Fixed Income Commodities & others Asia Pacific 5.4 LatAm & Iberia. (1) Year-to-date growth in # of ETPs Bubble size = Assets ($bn) U.S. $2,146 Europe $58 Asia Pacific $234 Canada Latin America $66 $6 (3%) (2%) (1%) % 1% 2% 3% year-to-date asset growth LISTING REGION VIEW 1 (US$bn) MTD YTD Share of YTD Current Assets Share of Assets US % 2, % Europe % % Canada % % Asia Pacific % % Latin America & Iberia. (1.) (.6%) 6..2% Middle East and Africa Not available Not available NA % Global ETP Total % 2, % [ 6 ]

7 Global ETP Multi-Year Asset Growth and Top 1 Providers Global ETP Assets & Number of ETPs by Year 1 Total Assets ($bn) 3, Equity Fixed Income 2,5 Commodities & Others 4,311 4,759 5,24 5,431 #ETPs 5,688 6, 5, 2, 1,5 1, 5 3,543 2,694 2,22 2,797 2,984 2,396 1,541 1,944 1,483 1, , Jul-15 4, 3, 2, 1, Global ETP Providers Ranked by Assets (US$bn) 1 Provider * July Assets % Market Share July YTD # ETPs YTD Change % Market Assets Share ishares 1, (.2) Vanguard State Street (34.8) 239 (32.3) (2.2) Invesco Powershares (.1) Deutsche Asset & Wealth Management (db x-trackers) WisdomTree Investments Nomura Group Lyxor / Soc Gen First Trust Portfolios Charles Schwab Other Providers , (.9) Grand Total 2, , * Providers measured at parent company level. [ 7 ]

8 ETP by Exposure (US$bn) MTD YTD Current Assets Equity US ,316.6 Broad Developed Markets Europe Asia-Pacific Canada (.4) (1.) 27.1 Developed Equity ,141.6 Single Country (2.9) (18.4) Broad (2.7) (3.2) 14.7 Regional (.1). 5.8 Emerging Markets Equity (5.7) (21.6) Equity Total ,383.3 Fixed Income Investment Grade Corp Broad U.S. Government HY Corp Sovereign Municipal Other Fixed Income Fixed Income Total Commodities Gold (2.3) (1.7) 54.1 Energy Silver Agriculture (.1). 3.7 Other Precious Metals. (.2) 21.5 Other Commodities (.5) (.6) 13.1 Commodities Total (.9) Asset Allocation Alternatives (.4) Currency Grand Total ,984.1 [ 8 ]

9 United States ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA, QUALIFIED INVESTORS IN SWITZERLAND,

10 US ETP Multi-Year Asset Growth and Top 1 Providers US ETP Assets & Number of ETPs by Year 1 Assets ($bn) # of ETPs 2,5 2, 1,37 1,445 1,536 1,661 1,777 2, 1,5 1,5 1, 5 1, ,9 2, ,71 1, ,12 1, Jul-15 1, 5 US ETP Providers Ranked by Assets (US$bn) 1 Provider * July Assets % Market Share July YTD # ETPs YTD Change % Market Assets Share ishares Vanguard State Street (39.1) 146 (36.6) (3.1) Invesco Powershares (.4) (.2) WisdomTree Investments First Trust Portfolios Charles Schwab Guggenheim (.5) (.) ProShares (.1) Van Eck (.) (.1) Other Providers Grand Total 2, , * Providers measured at parent company level. [ 1 ]

11 Year-to-date Overview U.S. ETP FLOWS BY EXPOSURE 1 (US$bn) YTD YTD 214 Annual 214 Equity Developed Markets Emerging Markets Total Fixed Income Government High Yield Corporate 1.4 (.6) 2.4 Investment Grade Corporate Others Total Commodities & Others Total Grand Total CUMULATIVE U.S. ETP FLOWS 1 : $119.4bn J F M A M J J A S O N D CUMULATIVE EQUITY ETP FLOWS 1 Equity : $87.bn CUMULATIVE FIXED INCOME ETP FLOWS 1 Fixed Income : $28.5n J F M A M J J A S O N D J F M A M J J A S O N D [ 11 ]

12 U.S. ETP by Exposure (US$bn) MTD YTD Current Assets Equity US ,23.4 Broad Developed Markets Europe Asia-Pacific Canada (.2) (.3) 2.2 Developed Equity ,622. Broad (2.5) (2.5) 9.2 Single Country (1.3) Regional (.1) (.2) 2.3 Emerging Markets Equity (3.9) Equity Total ,754.3 Fixed Income Investment Grade Corp HY Corp Broad U.S. Government Municipal Sovereign. (.4) 2.5 Other Fixed Income Fixed Income Total Commodities Gold (1.6) (1.) 31.1 Energy Silver Agriculture (.) (.) 1.6 Other Commodities (.2) (.9) 7.1 Other Precious Metals (.) (.2) 1.1 Commodities Total (.4) Alternatives (.3) Asset Allocation Currency Grand Total ,145.5 [ 12 ]

13 Europe ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA QUALIFIED INVESTORS IN SWITZERLAND,

14 Europe ETP Multi-Year Asset Growth and Top 1 Providers Europe ETP Assets & Number of ETPs by Year 1 Assets ($bn) # of ETPs 6 5 1,593 1,893 2,15 2,167 2,257 2,32 2,5 2, 4 1,18 1, Jul-15 1, 5 Europe ETP Providers Ranked by Assets (US$bn) 1 Provider * July Assets % Market Share July YTD # ETPs YTD Change % Market Assets Share ishares (1.) Deutsche Asset & Wealth Management (db x-trackers) Lyxor / Soc Gen UBS Amundi (.) Source Holdings (.1) Vanguard State Street ETF Securities (.6) (.1) 329 (1.8) (.6) Commerzbank Other Providers (.8) Grand Total , * Providers measured at parent company level. [ 14 ]

15 Europe ETP Multi-Year European ETP Industry Cumulative by Year 1 YTD : $48.7bn J F M A M J J A S O N D Europe Listed Equity ETP Cumulative 1 YTD Equity : $28.5bn Europe Listed Fixed Income ETP Cumulative 1 YTD Fixed Income : $19.7bn J F M A M J J A S O N D J F M A M J J A S O N D [ 15 ]

16 European ETP by Exposure (US$bn) MTD YTD Current Assets Equity Europe U.S. 1.2 (.7) 73.4 Broad Developed Markets Asia-Pacific Canada.. 1. Developed Equity Broad (.2) (.7) 13.6 Single Country (.4) (.9) 11.4 Regional Emerging Markets Equity (.6) (1.3) 28.5 Equity Total Fixed Income Sovereign Investment Grade Corp HY Corp U.S. Government Broad Aggregate Other Fixed Income Fixed Income Total Commodities Gold (.8) (.9) 19. Energy Silver Agriculture (.1). 2.1 Other Precious Metals.. 2. Other Commodities (.3).4 6. Commodities Total (.9) Asset Allocation...4 Alternatives. (.2).6 Currency. (.1).4 Grand Total [ 16 ]

17 Asia Pacific ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA QUALIFIED INVESTORS IN SWITZERLAND,

18 Asia Pacific ETP Multi-Year Asset Growth and Top 1 Providers Asia Pacific ETP Assets & Number of ETPs by Year 1 Assets ($bn) # of ETPs Jul Asia Pacific ETP Providers Ranked by Assets (US$bn) 1 Provider * July Assets % Market Share July YTD # ETPs YTD Change % Market Assets Share Nomura Group Nikko Asset Management Daiwa Securities Group State Street (.1) HSBC China AMC (2.9) (5.5) 13 (1.1) (1.3) ishares (.1) (4.7) 29 (4.4) (3.) Mitsubishi Group Samsung Group (1.7) 4 (2.1) (1.6) Yuanta Financial Holdings (.5) Other Providers (11.9) (3.2) Grand Total * Providers measured at parent company level. [ 18 ]

19 Asia Pacific ETP by Exposure (US$bn) MTD YTD Current Assets Equity Asia-Pacific U.S Broad Developed Markets..3.8 Europe...1 Developed Equity Single Country (1.2) (2.5) 72.1 Broad...1 Regional...1 Emerging Markets Equity (1.2) (2.5) 72.2 Equity Total Fixed Income Sovereign Broad Aggregate..1.8 HY Corp...1 Inv Grade Corp...1 U.S. Government... Other Fixed Income Fixed Income Total Commodities Gold Energy Silver...1 Other Precious Metals...1 Agriculture... Other Commodities... Commodities Total Asset Allocation...1 Alternatives..3.3 Currency..1.4 Grand Total [ 19 ]

20 Canada ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA, QUALIFIED INVESTORS IN SWITZERLAND,

21 Canada ETP Multi-Year Asset Growth and Top 1 Providers Canada ETP Assets & Number of ETPs by Year 1 Assets ($bn) # of ETPs Jul Canada ETP Providers Ranked by Assets (US$bn) 1 Provider * July Assets % Market Share July YTD # ETPs YTD Change % Market Assets Share ishares (.1).6 11 (3.8) (5.5) BMO Vanguard Horizon (Mirae Asset) PowerShares First Asset Capital RBC Purpose Investments First Trust Portfolios Auspice N/M N/M Questrade N/M N/M Grand Total (.3). * Providers measured at parent company level [ 21 ]

22 Canada ETP by Exposure (US$bn) MTD YTD Current Assets Equity Canada (.2) (.7) 23.9 U.S Broad Developed Markets Europe..6.8 Asia-Pacific...1 Developed Equity Broad..1.7 Single Country..1.3 Regional...1 Emerging Markets Equity Equity Total Fixed Income Inv Grade Corporate (.1) Broad Aggregate HY Corp Sovereign Municipal..1.3 U.S. Government... Other Fixed Income Fixed Income Total Commodities Gold Energy Silver...1 Other Precious Metals...1 Agriculture... Other Commodities... Commodities Total..2.7 Asset Allocation..1.4 Alternatives..1.1 Currency...1 Grand Total [ 22 ]

23 Latin America ETPs ONLY FOR ACCREDITED INVESTORS IN CANADA, QUALIFIED INVESTORS IN SWITZERLAND,

24 Latin America ETP Multi-Year Asset Growth, Top Providers and by Exposure Latin America ETP Assets & Number of ETPs by Year 1 Assets ($bn) # ETPs Jul Latin America ETP Providers Ranked by Assets (US$bn) 1 Provider * July Assets % Market Share July YTD # ETPs YTD Change % Market Assets Share ishares (.9) 23 (.8) (.7) Itau Unibanco BBVA (.1) 7..7 Actinver (.1) 5 (.1) (1.) Horizon (Mirae Asset) IM Trust Banco do Brasil Caixa Economica Federal Grand Total (1.) 48 (.9). Latin America ETP by Exposure Exposure (US$mn) 1 July YTD Assets # ETPs Developed Markets US Equity (3) Regional EM - (1) - 1 Mexico (41) (1,185) 3, Brazil ,88 16 Emerging Markets Columbia (1) (1) 73 2 China (1) (26) 4 1 Chile (1) EM Equity Total (27) (1,121) 5, Equity Total (3) (1,65) 5,818 4 Fixed Fixed Income & Others Income Latin America Listed ETP total (27) (1,24) 6,9 48 * Providers measured at parent company level. [ 24 ] Equity

25 Endnotes The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by BlackRock including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind, and the Bank of Israel. All amounts are reported in US dollars. are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute net flows and assets to the primary listings. For Middle East and Africa, net flows data is not available. Assets are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. 1. Data is as of July 3, for Europe and July 31, for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of June 3,. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 21 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg. 2. Source: Bloomberg SHSZ3:IND and HSI:IND ($US) Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. ABOUT BLACKROCK BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 3,, BlackRock s AUM was $4.721 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, ishares ETF s (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions. Headquartered in New York City,, as of June 3,, the firm had approximately 12,4 employees in more than 3 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at [ 25 ]

26 Disclaimer REGULATORY INFORMATION BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 () This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined according to applicable regulations in the relevant jurisdiction) only upon express request. This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results. This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors. The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change. This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction. This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such affiliate. BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. Past performance is not a guide to future performance. Income is not fixed and may fluctuate. Exposure to foreign currencies can be affected by exchange rate movements. This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together, BlackRock ). FOR RESIDENTS IN THE UNITED STATES This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors. The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied is made by BlackRock or by any person as to its accuracy or completeness and it should bot be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change. This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction. [ 26 ]

27 Disclaimer (continued) NOTICE TO RESIDENTS IN AUSTRALIA: Issued in Australia by BlackRock Investment Management (Australia) Limited ABN , AFSL ("BlackRock Australia") to institutional investors only. ishares exchange traded funds ( ETFs ) that are made available in Australia are issued by BlackRock Australia, ishares, Inc. ARBN and ishares Trust ARBN BlackRock Australia is the local agent and intermediary for ishares ETFs that are issued by ishares, Inc. and ishares Trust. BlackRock Australia is a wholly-owned subsidiary of BlackRock, Inc. (collectively BlackRock ). A Product Disclosure Statement ( PDS ) or prospectus for each ishares ETF that is offered in Australia is available at ishares.com.au. You should read the PDS or prospectus and consider whether an ishares ETF is appropriate for you before deciding to invest. ishares securities trade on ASX at market price (not, net asset value ("NAV")). ishares securities may only be redeemed directly by persons called Authorised Participants. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment decision regarding the ishares funds. FOR INVESTORS IN CANADA: The information and opinions herein are provided for informational purposes only, are subject to change and should not be relied upon as the basis for investment decisions. Past performance is not necessarily indicative of future performance. This document is not and should not be construed as a solicitation or offering of units of any funds or other security in any jurisdiction. No part of this publication may be reproduced in any manner without prior written permission of BlackRock Asset Management Canada Limited and/or its affiliates. FOR INVESTORS IN HONG KONG: Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong. Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any regulations there under. NOTICE TO RESIDENTS IN INDIA: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their request. The funds mentioned herein have not been registered with any authorities in India. NOTICE TO RESIDENTS IN JAPAN: This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in the Financial Instruments and Exchange Law of Japan) only upon their request. [ 27 ]

28 Disclaimer (continued) FOR INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY IN LATIN AMERICA: In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America. NOTICE TO RESIDENTS IN SINGAPORE: This document is provided by BlackRock (Singapore) Limited (company registration number: 21143N) for use with institutional investors only. This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 34 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 34 of the SFA are subject to the requirements under Section 34A of the SFA. NOTICE TO RESIDENTS IN SOUTH AFRICA: BlackRock Investment Management (UK) Limited is registered with the South African Financial Services Board, FSP No FOR QUALIFIED INVESTORS IN SWITZERLAND This document shall be exclusively made available to, and directed at, qualified investors as defined in the Swiss Collective Investment Schemes Act of 23 June 26, as amended (CISA). The ishares ETFs are domiciled in Ireland, Switzerland and Germany. BlackRock Asset Management Schweiz AG, Bahnhofstrasse 39, CH-81 Zurich, is the Swiss Representative and JPMorgan Chase Bank, National Association, Columbus, Zurich branch, Dreikönigstrasse 21, 82 Zurich, the Swiss Paying Agent for the foreign ishares ETF registered in Switzerland. The Prospectus, the Prospectus with integrated fund contract, the Key Investor Information Document, the general and particular conditions, the Articles of Incorporation, the latest and any previous annual and semi-annual reports of the ishares ETF domiciled or registered in Switzerland are available free of charge from BlackRock Asset Management Schweiz AG. Investors should read the fund specific risks in the Key Investor Information Document and the Prospectus. NOTICE TO RESIDENTS IN THAILAND: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand. NOTICE TO RESIDENTS IN VIETNAM: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam. BlackRock Advisors (UK) Limited. All rights reserved. Registered Company No All rights reserved. Calls may be monitored or recorded. BLACKROCK, BLACKROCK SOLUTIONS, and ishares, are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other marks are those of their respective owners. is