NORTH AMERICA Morgan Stanley & Co. Incorporated Dominic Maister Dominic.Maister@morganstanley.com +1 (212) 761 5986 Mitchell Schorr Mitchell.Schorr@morganstanley.com +1 (212) 761 5987 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 David.Perlman@morganstanley.com +1 (212) 761 5989 Stephen Minar Stephen.Minar@morganstanley.com +1 (212) 761 5991 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 2008. 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 2009. 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.
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, 2009. 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 2008. 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 2008. 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 2008. 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 2008. 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 1 2009 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) 63 100 97 84 54 104 194 158 144 108 91 Weighted Avg (bps) 18 23 69 125 19 58 232 109 125 95 35 Median (bps) 49 54 96 17 33 76 118 86 64 92 114 Low (bps) 0 4 7 3 1 1 1 0 3 19 12 High (bps) 334 374 201 350 345 1,709 1,070 1,368 1,299 282 147 0 to 25 bps (%) 40 42 7 71 44 16 11 13 26 7 33 26 to 50 bps (%) 13 0 4 0 21 16 12 13 17 7 0 51 to 75 bps (%) 12 17 14 0 5 19 10 11 13 33 0 76 to 100 bps (%) 15 8 36 0 14 15 9 22 15 7 0 > 100 bps (%) 20 33 39 29 16 33 57 41 30 47 67 Average Exp Ratio 36 46 61 41 33 47 57 60 27 79 80 ETFs w/ TE <= Exp Rat (%) 33 42 11 71 32 22 21 31 24 47 33 Number of ETFs 60 12 28 17 57 123 140 54 54 15 3 Source. Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, Tracking Error displayed as an absolute value 2
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 2009. Global ETFs had the 2 nd largest average tracking error (158 bps) in 2009 vs. 44 in 2008. 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 2008. 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 2009. 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 2009. 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 2009. Exhibit 7 illustrates the average annual absolute tracking error for all ETF market segments from 2002 to 2009. 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
Exhibit 2 2009 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 44 44 44 30 0 1 0.0 The Vanguard Group 83 29 16 18 50 38 13.2 BlackRock 85 137 56 41 37 176 53.2 VTL Associates 85 75 85 52 20 5 0.0 ALPS Fund Services 85 85 85 55 0 1 0.0 DB Commodity Services 87 79 92 82 45 11 1.9 United States Commodity Funds 96 65 72 67 60 5 0.9 Rydex Investments 105 114 108 42 18 17 0.4 WisdomTree 129 166 82 51 19 42 0.8 First Trust Advisors 140 122 112 64 0 38 0.3 State Street Global Advisors 142 62 50 36 31 80 22.9 PowerShares Capital 178 84 108 61 16 100 4.9 Claymore Advisors 201 189 116 62 4 27 0.4 XShares Advisors 253 245 312 65 0 5 0.0 GreenHaven Commodity Services 282 282 282 109 0 1 0.0 Van Eck Associates 95 75 77 64 38 16 1.1 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg. *Absolute Value. We found a broader range and magnitude of tracking error in 2009 versus 2008. 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 2008. 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 2008. 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 2008. 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 2008. Exhibits 3 and 4 list the ETFs with the highest and lowest absolute tracking error in 2009. 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 1,709 25 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 577 27 604 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 546 25 571 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg 4
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 0 50 50 Vanguard Large-Cap ETF VV (0) 13 13 Vanguard Mid-Cap ETF VO 0 15 15 ishares S&P 500 Value Index Fund IVE (1) 18 17 SPDR S&P Homebuilders ETF XHB 1 35 36 ishares MSCI Netherlands Index Fund EWN (1) 55 54 ishares MSCI Sweden Index Fund EWD (2) 55 53 PowerShares FTSE RAFI Asia Pacific ex-japan Portfolio PAF (2) 75 73 SPDR Biotech ETF XBI (2) 35 33 SPDR Barclays Capital Intermediate Term Treasury ETF ITE (3) 13 10 ishares S&P Conservative Allocation Fund AOK (3) 31 28 Vanguard Dividend Appreciation ETF VIG (4) 28 24 ishares MSCI Germany Index Fund EWG (4) 54 50 ishares Barclays TIPS Bond Fund TIP (4) 20 16 SPDR Dow Jones Large Cap Value ETF ELV (4) 20 16 ishares Russell 2000 Index Fund IWM (4) 20 16 Vanguard Extended Market ETF VXF (4) 15 11 Vanguard Growth ETF VUG (5) 15 10 Vanguard Small-Cap Growth ETF VBK 5 15 20 ishares S&P Growth Allocation Fund AOR (5) 33 28 ishares Barclays Agency Bond Fund AGZ (5) 35 30 BLDRS Emerging Markets 50 ADR Index Fund ADRE 5 30 35 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 1940. 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 49.2 19.6 29.6 Verizon Communications 28.0 18.4 9.6 American Tower 5.1 5.2 (0.1) Crown Castle International 3.4 4.7 (1.3) CenturyTel 3.2 4.5 (1.3) Sprint Nextel 3.2 3.8 (0.6) Qwest Communications Intl. 1.9 2.6 (0.7) NII Holdings 1.7 3.0 (1.3) Windstream 1.4 2.2 (0.8) SBA Communications 1.1 2.2 (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 51.7 17.8 33.9 Verizon Communications 28.9 12.9 16.0 CenturyTel 3.5 6.4 (3.0) Sprint Nextel 3.2 5.8 (2.7) Qwest Communications Intl. 2.0 5.1 (3.1) Source: Dow Jones, Morgan Stanley Research. Data as of 1/29/10 5
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 2009. 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, 2009. 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
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 2002 2003 2004 2005 2006 2007 2008 2009 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, Tracking Error displayed as an absolute value 7
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 2002 2003 2004 2005 2006 2007 2008 2009 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, Tracking Error displayed as an absolute value 8
Exhibit 9 2009 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 28.6 28.8 (24) 20 (4) ishares Russell 3000 Index Fund IWV 28.2 28.3 (14) 20 6 PowerShares Dynamic Market Portfolio PWC 18.4 19.2 (89) 60 (29) Vanguard Extended Market ETF VXF 37.6 37.7 (4) 15 11 Vanguard Total Stock Market ETF VTI 28.8 28.8 6 9 15 Fidelity Nasdaq Composite Index Tracking Stock ONEQ 44.9 45.3 (44) 30 (14) First Trust Value Line 100 ETF FVL 12.7 13.8 (109) 70 (39) ishares NYSE Composite Index Fund NYC 28.2 28.3 (7) 25 18 ishares S&P 1500 Index Fund ISI 27.1 27.3 (19) 20 1 PowerShares FTSE RAFI US 1500 Small-Mid Portfolio PRFZ 56.3 55.7 60 39 99 The SPDR Dow Jones Total Market ETF TMW 28.1 28.6 (49) 20 (29) WisdomTree Dividend ex-financials Fund DTN 26.1 26.9 (88) 38 (50) WisdomTree Earnings Index EXT 30.1 30.5 (43) 28 (15) WisdomTree Total Dividend Fund DTD 20.0 20.5 (49) 28 (21) Large-Cap Diamonds DIA 22.5 22.7 (21) 18 (3) ishares Russell 1000 Index Fund IWB 28.3 28.4 (10) 15 5 ishares S&P 100 Index Fund OEF 22.1 22.3 (15) 20 5 ishares S&P 500 Index Fund IVV 26.4 26.5 (6) 9 3 PowerShares QQQ QQQQ 54.5 54.6 (16) 20 4 PowerShares FTSE RAFI US 1000 Portfolio PRF 41.5 42.0 (47) 39 (8) Rydex Russell Top 50 ETF XLG 20.2 20.5 (25) 20 (5) Rydex S&P Equal Weight ETF RSP 45.0 46.3 (127) 40 (87) SPDR S&P 500 ETF SPY 26.3 26.5 (19) 9 (10) Vanguard Large-Cap ETF VV 27.8 27.8 (0) 13 13 WisdomTree LargeCap Dividend Fund DLN 18.2 18.8 (60) 28 (32) First Trust Large Cap Core AlphaDEX Fund FEX 36.1 37.2 (112) 70 (42) First Trust NASDAQ-100 Equal Weighted Index Fund QQEW 59.5 60.5 (97) 60 (37) ishares NYSE 100 Index Fund NY 16.3 16.5 (17) 20 3 PowerShares Dynamic Large Cap Portfolio PJF 20.3 21.1 (82) 60 (22) RevenueShares Large Cap ETF RWL 30.2 30.7 (48) 49 1 The SPDR Dow Jones Large Cap ETF ELR 26.9 27.0 (9) 20 11 Vanguard Mega Cap 300 ETF MGC 25.4 25.5 (9) 13 4 WisdomTree Earnings 500 Index EPS 27.1 27.7 (56) 28 (28) WisdomTree Earnings Top 100 Index EEZ 43.7 45.2 (157) 38 (119) Mid-Cap ishares Russell Midcap Index Fund IWR 40.3 40.5 (22) 20 (2) ishares S&P MidCap 400 Index Fund IJH 37.2 37.4 (15) 20 5 S&P MidCap 400 Depository Receipts MDY 36.9 37.4 (53) 25 (28) Vanguard Mid-Cap ETF VO 40.5 40.5 0 15 15 Claymore/Zacks Mid-Cap Core ETF CZA 44.0 47.4 (334) 60 (274) First Trust Mid Cap Core AlphaDEX Fund FNX 47.4 48.7 (128) 70 (58) PowerShares Dynamic Mid Cap Portfolio PJG 29.9 31.2 (130) 60 (70) PowerShares NASDAQ Next-Q Portfolio PNXQ 42.7 41.1 159 70 229 RevenueShares Mid Cap ETF RWK 51.9 52.7 (85) 54 (31) SPDR Dow Jones Mid Cap ETF EMM 44.2 44.6 (36) 25 (11) WisdomTree MidCap Dividend Fund DON 32.1 32.6 (58) 38 (20) WisdomTree MidCap Earnings Index EZM 49.6 50.5 (94) 38 (56) Small-Cap ishares Russell 2000 Index Fund IWM 27.1 27.2 (4) 20 16 ishares S&P SmallCap 600 Index Fund IJR 25.5 25.6 (8) 20 12 Vanguard Small-Cap ETF VB 36.3 36.1 17 15 32 First Trust Small Cap Core AlphaDEX Fund FYX 37.1 38.4 (125) 70 (55) PowerShares Dynamic Small Cap Portfolio PJM 17.9 19.2 (135) 60 (75) PowerShares FTSE NASDAQ Small Cap Portfolio PQSC 33.0 33.3 (36) 70 34 PowerShares Zacks Small Cap Portfolio PZJ 19.2 19.3 (12) 75 63 RevenueShares Small Cap ETF RWJ 48.2 49.1 (87) 54 (33) SPDR Dow Jones Small Cap ETF DSC 41.2 41.9 (72) 25 (47) WisdomTree SmallCap Dividend Fund DES 21.2 22.0 (84) 38 (46) WisdomTree SmallCap Earnings Index EES 48.9 49.6 (67) 38 (29) Micro-Cap ishares Russell Microcap Index Fund IWC 24.8 27.5 (266) 60 (206) First Trust Dow Jones Select MicroCap Index Fund FDM 20.9 21.9 (104) 60 (44) PowerShares Zacks Micro Cap Portfolio PZI 11.5 10.6 90 60 150 US Major Market Average* 63 36 41 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 9
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 36.7 37.0 (33) 25 (8) ishares Russell 3000 Value Index Fund IWW 19.7 19.8 (11) 25 14 First Trust Multi Cap Growth AlphaDEX Fund FAD 29.7 30.8 (106) 70 (36) First Trust Multi Cap Value AlphaDEX Fund FAB 47.6 49.0 (141) 70 (71) Large-Cap Growth/Value/Core ishares Morningstar Large Growth Index Fund JKE 44.0 44.4 (42) 25 (17) ishares Russell 1000 Growth Index Fund IWF 36.9 37.2 (28) 20 (8) ishares S&P 500 Growth Index Fund IVW 31.4 31.6 (22) 18 (4) PowerShares Dynamic Large-Cap Growth Portfolio PWB 34.2 35.2 (98) 60 (38) Vanguard Growth ETF VUG 36.5 36.5 (5) 15 10 First Trust DB Strategic Value Index Fund FDV 39.4 40.2 (78) 65 (13) First Trust Large Cap Growth Opportunities AlphaDEX Fu FTC 29.3 30.3 (101) 70 (31) First Trust Large Cap Value Opportunities AlphaDEX Fun FTA 41.2 42.5 (135) 70 (65) First Trust NASDAQ-100 Ex-Technology Sector Index Fu QQXT 46.7 47.6 (90) 60 (30) Rydex S&P 500 Pure Growth ETF RPG 50.2 50.8 (63) 35 (28) SPDR Dow Jones Large Cap Growth ETF ELG 37.1 37.4 (30) 20 (10) Vanguard Mega Cap 300 Growth ETF MGK 35.1 35.3 (16) 13 (3) WisdomTree LargeCap Growth Fund ROI 27.1 27.9 (79) 38 (41) ishares Morningstar Large Value Index Fund JKF 11.3 11.4 (12) 25 13 ishares Russell 1000 Value Index Fund IWD 19.6 19.7 (6) 20 14 ishares S&P 500 Value Index Fund IVE 21.2 21.2 (1) 18 17 PowerShares Dynamic Large Cap Value Portfolio PWV 19.2 20.1 (94) 60 (34) Vanguard Value ETF VTV 19.7 19.5 17 15 32 ishares Morningstar Large Core Index Fund JKD 21.3 21.5 (26) 20 (6) Rydex S&P 500 Pure Value ETF RPV 54.0 55.2 (124) 35 (89) SPDR Dow Jones Large Cap Value ETF ELV 17.2 17.2 (4) 20 16 Vanguard Mega Cap 300 Value ETF MGV 16.5 16.4 9 13 22 WisdomTree LargeCap Value Fund EZY 29.1 29.9 (81) 38 (43) Mid-Cap Growth/Value/Core ishares Morningstar Mid Growth Index Fund JKH 41.6 42.1 (43) 30 (13) ishares Russell Midcap Growth Index Fund IWP 46.0 46.3 (32) 25 (7) ishares S&P MidCap 400 Growth Index Fund IJK 40.9 41.1 (23) 25 2 Vanguard Mid-Cap Growth ETF VOT 42.8 43.0 (16) 15 (1) PowerShares Dynamic Mid Cap Growth Portfolio PWJ 23.3 24.3 (94) 60 (34) Rydex S&P MidCap 400 Pure Growth ETF RFG 59.7 60.3 (60) 35 (25) SPDR Dow Jones Mid Cap Growth ETF EMG 55.4 55.6 (18) 25 7 ishares Morningstar Mid Value Index Fund JKI 35.6 36.1 (43) 30 (13) ishares Russell Midcap Value Index Fund IWS 34.0 34.2 (19) 25 6 ishares S&P MidCap 400 Value Index Fund IJJ 33.5 33.7 (23) 25 2 Vanguard Mid-Cap Value ETF VOE 37.8 37.8 (9) 15 6 PowerShares Dynamic Mid Cap Value Portfolio PWP 25.9 27.3 (142) 60 (82) Rydex S&P Midcap 400 Pure Value ETF RFV 58.3 59.2 (84) 35 (49) SPDR DJ Wilshire Mid Cap Value ETF EMV 31.6 32.0 (40) 25 (15) ishares Morningstar Mid Core Index Fund JKG 38.6 38.9 (35) 25 (10) Small-Cap Growth/Value/Core ishares Russell 2000 Growth Index Fund IWO 34.4 34.5 (9) 25 16 ishares S&P SmallCap 600 Growth Index Fund IJT 28.2 28.4 (13) 25 12 Vanguard Small-Cap Growth ETF VBK 42.0 42.0 5 15 20 ishares Morningstar Small Growth Index Fund JKK 32.6 33.0 (36) 30 (6) PowerShares Dynamic Small Cap Growth Portfolio PWT 18.2 19.9 (174) 60 (114) Rydex S&P SmallCap 600 Pure Growth ETF RZG 37.6 37.7 (11) 35 24 SPDR Dow Jones Small Cap Growth ETF DSG 46.8 47.4 (54) 25 (29) ishares Russell 2000 Value Index Fund IWN 20.4 20.6 (18) 25 7 ishares S&P SmallCap 600 Value Index Fund IJS 22.7 22.9 (11) 25 14 Vanguard Small-Cap Value ETF VBR 30.5 30.3 23 15 38 ishares Morningstar Small Value Index Fund JKL 39.9 40.3 (41) 30 (11) PowerShares Dynamic Small Cap Value Portfolio PWY 20.4 21.6 (117) 60 (57) Rydex S&P SmallCap 600 Pure Value ETF RZV 67.0 63.6 345 35 380 SPDR Dow Jones Small Cap Value ETF DSV 36.6 36.8 (26) 25 (1) ishares Morningstar Small Core Index Fund JKJ 39.4 39.9 (46) 25 (21) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value US Style Average* 54 33 30 10
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 41.2 41.3 (17) 21 4 ishares DJ US Cons. Services Sector Index Fund IYC 33.1 33.7 (61) 48 (13) Vanguard Consumer Discretionary ETF VCR 46.5 46.8 (24) 25 1 First Trust Consumer Discretionary AlphaDEX Fund FXD 57.1 58.5 (147) 70 (77) PowerShares Dynamic Consumer Discretionary Portfolio PEZ 25.9 26.7 (86) 60 (26) Rydex S&P Equal Weight Consumer Discretionary ETF RCD 64.0 63.8 16 50 66 SPDR Retail ETF XRT 77.7 78.3 (66) 35 (31) ishares Dow Jones US Home Construction ITB 21.1 21.5 (45) 48 3 SPDR S&P Homebuilders ETF XHB 26.8 26.8 1 35 36 PowerShares Dynamic Building and Construction Portfoli PKB 1.8 2.6 (80) 60 (20) PowerShares Dynamic Leisure & Entertainment Portfolio PEJ 42.4 44.5 (201) 60 (141) PowerShares Dynamic Media Portfolio PBS 61.3 64.1 (282) 60 (222) PowerShares Dynamic Retail Portfolio PMR 30.5 31.6 (106) 60 (46) Consumer Staples Consumer Staples Select Sector SPDR XLP 14.2 14.5 (32) 21 (11) ishares DJ US Consumer Goods Sector Index Fund IYK 23.2 23.9 (67) 48 (19) Vanguard Consumer Staples ETF VDC 16.9 15.6 138 25 163 First Trust Consumer Staples AlphaDEX Fund FXG 27.1 28.2 (110) 70 (40) PowerShares Dynamic Consumer Staples Portfolio PSL 20.2 21.1 (91) 60 (31) Rydex S&P Equal Weight Consumer Staples ETF RHS 26.5 27.3 (76) 50 (26) PowerShares Dynamic Food & Beverage Portfolio PBJ 10.8 11.7 (90) 60 (30) Energy Energy Select Sector SPDR XLE 21.6 21.9 (27) 21 (6) ishares Dow Jones US Energy Sector Index Fund IYE 19.1 17.3 182 48 230 Vanguard Energy ETF VDE 24.9 19.4 546 25 571 First Trust Energy AlphaDEX Fund FXN 47.5 48.8 (124) 70 (54) PowerShares Dynamic Energy Portfolio PXI 41.1 41.2 (7) 60 53 Rydex S&P Equal Weight Energy ETF RYE 45.3 46.4 (117) 50 (67) ishares Dow Jones U.S. Oil Equipment & Services IEZ 63.7 64.7 (102) 48 (54) ishares Dow Jones U.S. Oil & Gas Exploration & Product IEO 40.7 41.4 (76) 48 (28) PowerShares Dynamic Oil & Gas Services Portfolio PXJ 52.7 54.0 (131) 60 (71) SPDR Oil & Gas Exploration & Production ETF XOP 39.9 40.4 (41) 35 (6) First Trust ISE-Revere Natural Gas Index Fund FCG 49.2 49.9 (66) 60 (6) PowerShares Dynamic Energy & Exploration Portfolio PXE 20.0 20.7 (62) 60 (2) SPDR Oil & Gas Equipment & Services ETF XES 67.6 68.1 (50) 35 (15) Financials Financials Select Sector SPDR XLF 17.5 17.3 25 21 46 ishares Dow Jones US Financial Sector Index Fund IYF 16.9 17.1 (23) 48 25 Vanguard Financials ETF VFH 14.8 14.4 43 25 68 First Trust Financial AlphaDEX Fund FXO 31.7 33.2 (157) 70 (87) PowerShares Dynamic Financial Portfolio PFI (5.0) (3.9) (107) 60 (47) Rydex S&P Equal Weight Financials ETF RYF 30.6 32.2 (161) 50 (111) RevenueShares Financials Sector Fund RWW 26.9 27.6 (72) 45 (27) ishares Dow Jones Broker-Dealers Index Fund IAI 42.1 42.9 (79) 48 (31) ishares Dow Jones US Financial Services Index Fund IYG 16.4 16.6 (18) 48 30 KBW Bank ETF KBE (1.4) (1.8) 33 35 68 KBW Regional Banking ETF KRE (22.0) (22.1) 13 35 48 KBW Capital Markets ETF KCE 40.9 41.6 (66) 35 (31) ishares Dow Jones U.S. Regional Banks Index Fund IAT (10.8) (10.5) (29) 48 19 PowerShares Dynamic Banking Portfolio PJB (22.8) (21.9) (85) 60 (25) ishares Dow Jones U.S. Insurance Index Fund IAK 14.1 14.7 (64) 48 (16) KBW Insurance ETF KIE 28.5 28.9 (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 19.8 20.0 (15) 21 6 ishares Dow Jones US Healthcare Sector Index Fund IYH 21.3 21.7 (38) 48 10 Vanguard Health Care ETF VHT 22.0 22.2 (23) 25 2 First Trust Health Care AlphaDEX Fund FXH 51.2 52.3 (111) 70 (41) PowerShares Dynamic Healthcare Portfolio PTH 21.4 22.4 (109) 60 (49) Rydex S&P Equal Weight Health Care ETF RYH 38.7 39.8 (108) 50 (58) ishares Dow Jones U.S. Medical Devices Index Fund IHI 38.3 39.2 (83) 48 (35) ishares DJ US Healthcare Providers Index Fund IHF 36.1 36.9 (81) 48 (33) PowerShares Dynamic Healthcare Services Portfolio PTJ 20.3 21.1 (76) 60 (16) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 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 (Continued) Symbol NAV (%) Index (%) Error (bps) (bps) Error (bps) Health Care- Biotechnology ishares Nasdaq Biotechnology Index Fund IBB 15.5 15.6 (15) 48 33 SPDR Biotech ETF XBI 0.5 0.5 (2) 35 33 First Trust Amex Biotechnology Index Fund FBT 44.9 45.6 (71) 60 (11) PowerShares Dynamic Biotech & Genome Portfolio PBE 21.6 23.1 (142) 60 (82) Health Care- Pharmaceuticals ishares Dow Jones U.S. Pharmaceuticals Index Fund IHE 30.5 31.1 (59) 48 (11) PowerShares Dynamic Pharmaceuticals Portfolio PJP 16.9 17.8 (86) 60 (26) SPDR Pharmaceuticals ETF XPH 28.1 28.4 (33) 35 2 Industrials Industrials Select Sector SPDR XLI 22.6 22.8 (16) 21 5 ishares Dow Jones US Industrial Sector Index Fund IYJ 25.7 26.1 (39) 48 9 Vanguard Industrials ETF VIS 22.4 22.5 (15) 25 10 First Trust Industrials AlphaDEX Fund FXR 42.1 43.7 (151) 70 (81) PowerShares Dynamic Industrials Portfolio PRN 14.9 16.0 (109) 60 (49) Rydex S&P Equal Weight Industrials ETF RGI 28.6 30.1 (154) 50 (104) ishares Dow Jones Transportation Index Fund IYT 18.8 18.6 24 48 72 ishares Dow Jones US Aerospace & Defense ITA 25.3 25.9 (59) 48 (11) PowerShares Aerospace & Defense Portfolio PPA 23.2 21.7 151 60 211 Information Technology- Broad Based ishares DJ US Technology Sector Index Fund IYW 63.5 64.5 (101) 48 (53) ishares S&P North American Technology IGM 62.4 63.2 (83) 48 (35) Morgan Stanley Technology ETF MTK 70.2 71.1 (85) 50 (35) Technology Select Sector SPDR XLK 50.9 51.4 (50) 21 (29) Vanguard Information Technology ETF VGT 61.7 62.2 (43) 25 (18) First Trust NASDAQ-100-Technology Sector Index Fund QTEC 79.9 81.2 (126) 60 (66) First Trust Technology AlphaDEX Fund FXL 67.0 68.5 (154) 70 (84) PowerShares Dynamic Technology Portfolio PTF 42.2 43.3 (109) 60 (49) Rydex S&P Equal Weight Technology ETF RYT 68.8 69.9 (117) 50 (67) Information Technology- Internet First Trust Dow Jones Internet Index Fund FDN 79.2 80.3 (105) 60 (45) PowerShares NASDAQ Internet Portfolio PNQI 88.1 91.8 (377) 60 (317) Information Technology- Networking ishares S&P North American Networking Index Fund IGN 60.2 61.3 (109) 48 (61) PowerShares Dynamic Networking Portfolio PXQ 63.7 65.0 (130) 60 (70) Information Technology- Semiconductor ishares S&P North American Semiconductors IGW 74.6 75.6 (95) 48 (47) PowerShares Dynamic Semiconductors Portfolio PSI 48.0 49.2 (120) 60 (60) SPDR S&P Semiconductor ETF XSD 99.2 99.9 (72) 35 (37) Information Technology- Software ishares S&P North American Software Index Fund IGV 47.2 47.9 (68) 48 (20) PowerShares Dynamic Software Portfolio PSJ 56.2 57.1 (90) 60 (30) Materials ishares DJ US Basic Materials Sector Index Fund IYM 64.6 65.5 (91) 48 (43) Materials Select Sector SPDR XLB 48.5 48.9 (41) 21 (20) Vanguard Materials ETF VAW 51.6 51.8 (16) 25 9 First Trust Materials AlphaDEX Fund FXZ 60.0 61.3 (130) 70 (60) PowerShares Dynamic Basic Materials Portfolio PYZ 48.1 50.3 (221) 60 (161) Rydex S&P Equal Weight Materials ETF RTM 67.1 68.7 (153) 50 (103) Natural Resources ishares S&P North American Natural Resources Sector I IGE 36.9 37.5 (61) 48 (13) Market Vectors Gold Miners ETF GDX 37.3 38.0 (73) 55 (18) Market Vectors Steel Index ETF SLX 112.5 113.3 (81) 55 (26) SPDR S&P Metals & Mining ETF XME 87.9 88.4 (48) 35 (13) Real Estate ishares Cohen & Steers Realty Majors Index Fund ICF 25.1 24.9 20 35 55 ishares Dow Jones US Real Estate Index Fund IYR 30.2 30.8 (66) 48 (18) SPDR Dow Jones REIT ETF RWR 28.5 28.5 6 25 31 Vanguard REIT ETF VNQ 29.7 29.1 59 10 69 First Trust S&P REIT Index Fund FRI 28.0 28.6 (60) 50 (10) ishares FTSE EPRA/NAREIT North America Index Fund IFNA 31.7 30.1 158 48 206 ishares FTSE NAREIT Industrial/Office Index Fund FIO 27.9 28.8 (88) 48 (40) ishares FTSE NAREIT Mortgage REITs Index Fund REM 11.6 18.6 (702) 48 (654) ishares FTSE NAREIT Real Estate 50 Index Fund FTY 27.2 27.6 (39) 48 9 ishares FTSE NAREIT Residential Index Fund REZ 21.2 20.2 97 48 145 ishares FTSE NAREIT Retail Index Fund RTL 25.2 24.5 70 48 118 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 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) Telecommunication Services ishares Dow Jones US Telecom Sector Index Fund IYZ 26.2 27.1 (90) 48 (42) Vanguard Telecom Services ETF VOX 29.6 12.6 1,709 25 1,734 PowerShares Dynamic Telecommunications & Wireless P PTE 26.0 27.8 (173) 60 (113) Utilities ishares Dow Jones US Utilities Sector Index Fund IDU 12.2 12.6 (42) 48 6 Utilities Select Sector SPDR XLU 11.4 11.7 (26) 21 (5) Vanguard Utilities ETF VPU 11.4 11.7 (25) 25 (0) First Trust Utilities AlphaDEX Fund FXU 22.5 23.7 (111) 70 (41) PowerShares Dynamic Utilities Portfolio PUI 3.4 4.1 (72) 60 (12) Rydex S&P Equal Weight Consumer Utilities ETF RYU 20.2 20.6 (48) 50 2 US Sector and Industry Average* 104 47 71 US Specialty Market ETFs Dividend Income ishares Dow Jones Select Dividend Index Fund DVY 11.0 11.1 (14) 40 26 SPDR S&P Dividend ETF SDY 19.1 18.9 18 35 53 Vanguard High Dividend Yield ETF VYM 17.6 17.7 (11) 20 9 Vanguard Dividend Appreciation ETF VIG 19.3 19.4 (4) 28 24 Claymore/Zacks Dividend Rotation Index ETF IRO 48.6 50.2 (157) 60 (97) Claymore/Zacks Multi-Asset Income Index ETF CVY 50.6 53.1 (250) 60 (190) First Trust Morningstar Dividend Leaders Index Fund FDL 14.2 14.8 (57) 45 (12) First Trust Value Line Dividend Index Fund FVD 19.6 20.5 (95) 70 (25) PowerShares Dividend Achievers Portfolio PFM 11.2 11.4 (21) 50 29 PowerShares High Yield Equity Dividend Achievers Port. PEY 3.7 2.2 145 50 195 Claymore/S&P Global Dividend Opportunities Index ETF LVL 64.5 68.2 (374) 60 (314) WisdomTree Equity Income Fund DHS 17.7 18.2 (51) 38 (13) US Dividend Average* 100 46 82 Custom PowerShares Water Resources Portfolio PHO 17.0 17.9 (88) 60 (28) PowerShares WilderHill Clean Energy Portfolio PBW 29.0 28.9 7 60 67 PowerShares S&P 500 BuyWrite Portfolio PBP 24.8 25.9 (113) 75 (38) Claymore/Beacon Spin-off ETF CSD 64.3 65.4 (109) 60 (49) Claymore/Ocean Tomo Growth Index ETF OTR 50.9 51.8 (93) 60 (33) Claymore/Ocean Tomo Patent ETF OTP 29.1 30.0 (95) 60 (35) Claymore/Robb Report Global Luxury Index ETF ROB 49.2 50.7 (157) 79 (78) Claymore/Sabrient Defensive Equity Index ETF DEF 22.3 23.3 (96) 60 (36) Claymore/Sabrient Insider ETF NFO 47.7 48.9 (115) 60 (55) Claymore/Sabrient Stealth ETF STH 18.0 19.1 (116) 60 (56) Claymore/Zacks Sector Rotation ETF XRO 30.3 31.4 (108) 60 (48) First Trust IPOX-100 Index Fund FPX 44.9 46.0 (104) 60 (44) First Trust ISE Water Index Fund FIW 20.3 21.2 (92) 60 (32) First Trust NASDAQ Clean Edge US Liquid Series Index QCLN 43.8 44.7 (93) 60 (33) First Trust Value Line Equity Allocation Index Fund FVI 34.2 35.7 (158) 70 (88) ishares KLD 400 Social Index Fund DSI 31.0 31.7 (74) 50 (24) ishares KLD Select Social Index Fund KLD 30.4 31.1 (69) 50 (19) Market Vectors Environmental Services ETF EVX 22.1 22.7 (65) 55 (10) PowerShares Buyback Achievers PKW 31.2 32.3 (107) 60 (47) PowerShares Cleantech Portfolio PZD 38.4 38.1 37 60 97 PowerShares DWA Technical Leaders Portfolio PDP 27.4 26.6 86 60 146 PowerShares Dynamic MagniQuant Portfolio PIQ 18.8 19.8 (99) 60 (39) PowerShares Dynamic OTC Portfolio PWO 19.7 20.5 (75) 60 (15) PowerShares Lux Nanotech Portfolio PXN 38.6 40.7 (201) 60 (141) PowerShares NASDAQ-100 BuyWrite Portfolio PQBW 44.2 45.8 (156) 75 (81) PowerShares Value Line Industry Rotation Portfolio PYH 10.4 9.6 79 60 139 PowerShares Value Line Timeliness Select Portfolio PIV 11.7 11.6 16 60 76 PowerShares WilderHill Progressive Energy Portfolio PUW 59.3 58.3 98 60 158 US Custom Average* 97 61 61 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 13
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 9.4 9.4 (3) 31 28 ishares S&P Moderate Allocation Fund AOM 13.7 13.8 (7) 32 25 ishares S&P Growth Allocation Fund AOR 19.1 19.2 (5) 33 28 ishares S&P Aggressive Allocation Fund AOA 26.4 26.5 (10) 34 24 ishares S&P Target Date 2010 Index Fund TZD 14.5 14.6 (15) 31 16 TDX Independence 2010 ETF TDD 9.1 6.0 312 65 377 ishares S&P Target Date 2015 Index Fund TZE 17.3 17.5 (16) 31 15 ishares S&P Target Date 2020 Index Fund TZG 19.8 20.0 (15) 31 16 TDX Independence 2020 ETF TDH 17.4 14.2 317 65 382 ishares S&P Target Date 2025 Index Fund TZI 21.9 22.0 (17) 30 13 ishares S&P Target Date 2030 Index Fund TZL 23.5 23.7 (19) 30 11 TDX Independence 2030 ETF TDN 21.1 19.5 159 65 224 ishares S&P Target Date 2035 Index Fund TZO 24.8 25.0 (21) 30 9 ishares S&P Target Date 2040 Index Fund TZV 25.8 26.0 (20) 29 9 TDX Independence 2040 ETF TDV 24.5 23.2 129 65 194 ishares S&P Target Date Retirement Income Index Fund TGR 11.2 11.4 (13) 31 18 TDX Independence In-Target ETF TDX 6.0 2.5 350 65 415 US Asset Allocation Average* 84 41 106 Broad International ETFs World ex-us Vanguard FTSE All-World ex-us ETF VEU 42.5 43.0 (51) 25 (26) ishares MSCI ACWX Index Fund ACWX 40.9 41.5 (60) 35 (25) SPDR S&P International Small Cap ETF GWX 41.5 45.7 (423) 60 (363) ishares FTSE Developed Small Cap ex-north America In IFSM 45.6 47.0 (140) 50 (90) RevenueShares ADR Fund RTR 37.9 39.3 (132) 60 (72) SPDR MSCI ACWI ex-us ETF CWI 42.1 42.1 (7) 35 28 SPDR S&P World ex-us ETF GWL 33.3 37.4 (403) 35 (368) SPDR S&P International Mid Cap ETF MDD 35.9 41.5 (560) 45 (515) Developed Markets ishares MSCI EAFE Index Fund EFA 31.4 31.8 (38) 35 (3) Vanguard Europe Pacific ETF VEA 32.2 31.8 42 16 58 ishares MSCI EAFE Growth Index Fund EFG 29.2 29.4 (19) 40 21 ishares MSCI EAFE Value Index Fund EFV 33.8 34.2 (43) 40 (3) WisdomTree DEFA Fund DWM 31.4 32.5 (109) 48 (61) WisdomTree International MidCap Dividend Fund DIM 36.7 37.2 (43) 58 15 ishares MSCI EAFE Small Cap Index Fund SCZ 46.4 46.8 (40) 40 0 WisdomTree International SmallCap Dividend Fund DLS 42.0 44.3 (232) 58 (174) BLDRs Developed Markets 100 ADR Index Fund ADRD 28.9 28.2 69 30 99 Claymore/Zacks Country Rotation ETF CRO 30.8 31.8 (105) 65 (40) PowerShares DWA Developed Markets Technical Leader PIZ 40.5 43.4 (292) 80 (212) PowerShares Dynamic Developed International Portfolio PFA 47.7 50.1 (243) 75 (168) PowerShares FTSE RAFI Developed Mkts. Ex-US Small/ PDN 54.2 57.0 (279) 75 (204) PowerShares FTSE RAFI Developed Markets ex-us Port PXF 42.5 44.1 (153) 75 (78) WisdomTree International LargeCap Dividend Fund DOL 30.0 30.4 (36) 48 12 WisdomTree International Dividend ex-financials DOO 37.1 37.6 (51) 58 7 WisdomTree World ex-us Growth Fund DNL 17.1 17.5 (43) 58 15 Emerging Markets ishares MSCI Emerging Markets Index Fund EEM 71.8 78.5 (671) 75 (596) Vanguard Emerging Markets ETF VWO 78.6 78.5 10 27 37 WisdomTree Emerging Markets Equity Income Fund DEM 61.4 64.1 (274) 63 (211) BLDRS Emerging Markets 50 ADR Index Fund ADRE 65.2 65.2 5 30 35 SPDR S&P Emerging Markets ETF GMM 77.0 84.6 (761) 60 (701) SPDR S&P Emerging SmallCap ETF EWX 100.6 107.3 (674) 65 (609) PowerShares DWA Emerging Markets Technical Leaders PIE 59.6 69.6 (999) 90 (909) PowerShares FTSE RAFE Emerging Markets PXH 71.2 81.9 (1,070) 75 (995) WisdomTree Small Cap Emerging Markets Dividend Fund DGS 86.0 90.6 (461) 63 (398) ishares MSCI BRIC Index Fund BKF 89.9 93.1 (327) 72 (255) Claymore/BNY BRIC ETF EEB 84.9 86.0 (110) 60 (50) Claymore/BNY Mellon Frontier Markets ETF FRN 53.3 56.6 (331) 75 (256) Market Vectors - Gulf States ETF MES 4.4 4.0 45 98 143 PowerShares MENA Frontier Countries Portfolio PMNA 2.3 9.2 (690) 95 (595) SPDR S&P BRIC 40 ETF BIK 81.2 82.3 (116) 40 (76) WisdomTree Middle East Dividend Fund GULF 7.7 13.3 (554) 88 (466) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 14
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 37.0 36.4 59 50 109 WisdomTree DEFA Equity Income Fund DTH 36.4 36.9 (51) 58 7 Claymore/Zacks International Multi-Asset Income Index E HGI 51.7 51.0 70 65 135 First Trust DJ STOXX Select Dividend 30 Index Fund FDD 37.1 40.4 (328) 60 (268) First Trust Dow Jones Global Select Dividend Index Fund FGD 64.3 67.6 (327) 60 (267) ishares Dow Jones EPAC Select Dividend Index Fund IDV 69.5 67.7 180 50 230 SPDR S&P International Dividend ETF DWX 65.5 68.2 (272) 45 (227) WisdomTree Pacific ex-japan Equity Income Fund DNH 83.1 86.0 (296) 58 (238) International Region & Country ETFs Asia/Pacific Vanguard Pacific ETF VPL 24.3 24.2 13 12 25 ishares MSCI All Country Asia ex-japan Index Fund AAXJ 70.9 72.1 (117) 74 (43) ishares MSCI Pacific ex-japan Index Fund EPP 71.9 72.8 (88) 50 (38) SPDR S&P Emerging Asia Pacific ETF GMF 74.0 81.5 (746) 60 (686) BLDRS Asia 50 ADR Index Fund ADRA 34.9 33.6 132 30 162 ishares S&P Asia 50 Index Fund AIA 60.3 61.4 (110) 50 (60) PowerShares FTSE RAFI Asia Pacific ex-japan Portfolio PAF 77.1 77.1 (2) 75 73 WisdomTree Pacific ex-japan Total Dividend Fund DND 59.4 62.4 (294) 48 (246) First Trust ISE Chindia Index Fund FNI 81.6 82.9 (131) 60 (71) ishares MSCI Australia Index Fund EWA 75.2 76.4 (124) 55 (69) ishares FTSE/Xinhua China 25 Index Fund FXI 52.4 54.2 (182) 74 (108) SPDR S&P China ETF GXC 65.4 69.7 (424) 60 (364) Claymore/AlphaShares China Small Cap Index ETF HAO 102.1 105.3 (327) 70 (257) ishares MSCI Hong Kong Index Fund EWH 59.3 60.2 (87) 55 (32) WisdomTree India Earnings Fund EPI 101.2 104.4 (324) 88 (236) ishares MSCI Malaysia Index Fund EWM 51.4 52.1 (70) 56 (14) ishares MSCI Singapore Index Fund EWS 72.5 74.0 (142) 55 (87) ishares MSCI South Korea Index Fund EWY 70.4 71.4 (99) 65 (34) ishares MSCI Taiwan Index Fund EWT 77.3 79.2 (191) 82 (109) Claymore/AlphaShares China Real Estate ETF TAO 81.0 83.3 (229) 65 (164) ishares FTSE China (HK Listed) Index Fund FCHI 55.0 57.2 (219) 74 (145) PowerShares Golden Dragon Halter USX China Portfolio PGJ 62.7 64.2 (154) 60 (94) PowerShares India Portfolio PIN 83.2 88.2 (498) 78 (420) ishares MSCI Thailand Index Fund THD 84.0 83.3 64 65 129 Europe ishares S&P Europe 350 Index Fund IEV 34.3 35.2 (92) 60 (32) Vanguard European ETF VGK 36.3 35.8 47 18 65 BLDRS Europe 100 ADR Index Fund ADRU 29.4 29.2 20 30 50 PowerShares FTSE RAFI Europe Portfolio PEF 45.1 47.1 (198) 75 (123) Dow Jones STOXX 50 Fund FEU 32.7 32.9 (20) 31 11 WisdomTree Europe Total Dividend Fund DEB 32.0 32.6 (63) 48 (15) WisdomTree Europe SmallCap Dividend Fund DFE 58.0 60.8 (279) 58 (221) ishares MSCI EMU Index Fund EZU 31.2 31.4 (24) 56 32 Dow Jones EURO STOXX 50 Fund FEZ 29.8 29.7 14 32 46 SPDR S&P Emerging Europe ETF GUR 82.5 91.8 (928) 60 (868) ishares MSCI Austria Index Fund EWO 61.5 62.6 (111) 55 (56) ishares MSCI Belgium Index Fund EWK 54.5 58.3 (379) 56 (323) ishares MSCI France Index Fund EWQ 31.7 31.8 (18) 55 37 ishares MSCI Germany Index Fund EWG 25.1 25.2 (4) 54 50 ishares MSCI Italy Index Fund EWI 25.8 26.6 (76) 59 (17) ishares MSCI Netherlands Index Fund EWN 44.6 44.6 (1) 55 54 ishares MSCI Spain Index Fund EWP 38.0 43.5 (547) 56 (491) ishares MSCI Sweden Index Fund EWD 64.1 64.2 (2) 55 53 ishares MSCI Switzerland Index Fund EWL 25.9 25.3 59 56 115 ishares MSCI United Kingdom Index Fund EWU 42.1 43.3 (118) 55 (63) Market Vectors Russia ETF RSX 137.6 136.7 92 69 161 ishares MSCI Turkey Index Fund TUR 107.9 109.0 (108) 65 (43) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 15
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 5.3 6.3 (100) 56 (44) ishares S&P/TOPIX 150 Index Fund ITF 5.7 7.0 (130) 50 (80) ishares MSCI Japan Small Cap Index Fund SCJ 4.4 5.1 (70) 56 (14) PowerShares FTSE RAFI Japan Portfolio PJO 7.5 9.1 (164) 75 (89) SPDR Russell/Nomura Small Cap Japan ETF JSC 5.1 5.9 (76) 56 (20) SPDR Russell/Nomura Prime Japan ETF JPP 4.3 5.1 (81) 51 (30) WisdomTree Japan SmallCap Dividend Fund DFJ 3.3 4.9 (164) 58 (106) WisdomTree Japan Total Dividend Fund DXJ 3.5 3.8 (29) 48 19 Latin America ishares S&P Latin America 40 Index Fund ILF 92.9 97.0 (405) 50 (355) SPDR S&P Emerging Latin America ETF GML 105.1 108.0 (286) 60 (226) ishares MSCI Brazil Index Fund EWZ 124.5 128.1 (360) 65 (295) ishares MSCI Mexico Index Fund EWW 55.7 57.8 (203) 55 (148) ishares MSCI Chile Index Fund ECH 85.3 87.4 (211) 65 (146) North America ishares MSCI Canada Index Fund EWC 55.8 56.2 (35) 55 20 Middle East & Africa ishares MSCI South Africa Index Fund EZA 56.4 57.8 (144) 66 (78) ishares MSCI Israel Capped Index Fund EIS 80.0 81.7 (175) 66 (109) SPDR S&P Emerging Middle East & Africa ETF GAF 52.2 53.2 (105) 60 (45) Market Vectors - Africa Index ETF AFK 32.0 34.5 (247) 83 (164) Diversified International Sector & Industry ETFs SPDR Dow Jones International Real Estate ETF RWX 38.7 40.1 (143) 59 (84) Claymore/SMW Canadian Energy Income Index ETF ENY 63.7 67.1 (345) 65 (280) ishares S&P World ex-u.s. Property Index Fund WPS 42.2 41.8 41 48 89 ishares FTSE EPRA/NAREIT Global Real Estate ex-u.s. IFGL 44.5 44.0 49 48 97 ishares FTSE EPRA/NAREIT Europe Index Fund IFEU 39.6 39.2 43 48 91 ishares FTSE EPRA/NAREIT Asia Index Fund IFAS 43.4 43.4 6 48 54 SPDR S&P International Utilities Sector ETF IPU 5.4 6.2 (77) 50 (27) SPDR S&P International Health Care Sector ETF IRY 18.3 20.7 (245) 50 (195) SPDR S&P International Industrials Sector ETF IPN 36.9 36.6 31 50 81 SPDR S&P International Consumer Discretionary Sector IPD 42.3 44.3 (201) 50 (151) SPDR S&P International Telecommunications Sector ETF IST 16.0 17.2 (121) 50 (71) SPDR S&P International Financial Sector ETF IPF 41.5 41.1 43 50 93 SPDR S&P International Technology Sector ETF IPK 42.4 41.6 79 50 129 SPDR S&P International Consumer Staples Sector ETF IPS 29.7 32.2 (245) 50 (195) SPDR S&P International Energy Sector ETF IPW 42.1 46.6 (444) 50 (394) SPDR S&P International Materials Sector ETF IRV 62.7 69.5 (677) 50 (627) WisdomTree International Consumer Discretionary Secto DPC 38.4 37.4 92 58 150 WisdomTree International Communications Sector Fund DGG 13.3 12.4 88 58 146 WisdomTree International Energy Sector Fund DKA 37.0 38.9 (189) 58 (131) WisdomTree International Financial Sector Fund DRF 48.1 49.3 (119) 58 (61) WisdomTree International Health Care Sector Fund DBR 19.0 19.6 (59) 58 (1) WisdomTree International Industrial Sector Fund DDI 42.4 43.1 (72) 58 (14) WisdomTree International Real Estate Fund DRW 46.9 48.1 (125) 58 (67) WisdomTree International Technology Sector Fund DBT 26.8 27.4 (59) 58 (1) WisdomTree International Utilities Sector Fund DBU 3.8 4.0 (18) 58 40 WisdomTree International Basic Materials Sector DBN 57.7 58.8 (109) 58 (51) WisdomTree International Consumer Staples Sector Fun DPN 35.1 36.9 (182) 58 (124) International Average* 194 57 161 Global ETFs Global - Developed & Emerging ishares MSCI ACWI Index Fund ACWI 35.2 34.6 61 35 96 Vanguard Total World Stock Index Fund VT 35.5 35.7 (14) 30 16 WisdomTree Global Equity Income Fund DEW 34.1 33.7 35 58 93 SPDR DJ Global Titans ETF DGT 23.4 23.2 25 50 75 Claymore/Raymond James SB-1 Equity ETF RYJ 55.5 56.0 (49) 75 26 ishares S&P Global Infrastructure Index Fund IGF 24.2 24.0 18 48 66 SPDR/FTSE Macquarie Global Infrastructure 100 ETF GII 11.1 12.1 (103) 59 (44) Global Developed ishares S&P Global 100 Index Fund IOO 26.6 25.7 84 40 124 ishares MSCI Kokusai Index Fund TOK 33.0 33.1 (16) 25 9 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 16
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 40.5 40.1 38 48 86 ishares S&P Global Energy Sector Index Fund IXC 26.4 25.4 100 48 148 ishares S&P Global Financial Sector Index Fund IXG 35.0 34.5 59 48 107 ishares S&P Global Healthcare Sector Index Fund IXJ 18.7 18.3 40 48 88 ishares S&P Global Industrials Sector Index Fund EXI 26.6 25.7 93 48 141 ishares S&P Global Materials Sector Index Fund MXI 64.6 63.6 102 48 150 ishares S&P Global Consumer Staples Sector Index Fun KXI 22.9 22.1 72 48 120 ishares S&P Global Technology Sector Index Fund IXN 53.7 54.5 (85) 48 (37) ishares S&P Global Telecomm Sector Index Fund IXP 14.6 13.1 145 48 193 ishares S&P Global Utilities Sector Index Fund JXI 8.4 7.6 83 48 131 Claymore S&P Global Water ETF CGW 31.4 32.7 (124) 50 (74) Market Vectors Agribusiness ETF MOO 63.0 63.6 (62) 65 3 Market Vectors-Coal ETF KOL 151.7 152.6 (96) 65 (31) Global Alternative Energy ETF GEX 9.7 10.4 (64) 65 1 Market Vectors Hard Assets Producers ETF HAP 47.7 48.6 (85) 65 (20) Market Vectors Nuclear Energy ETF NLR 22.4 23.0 (59) 65 6 PowerShares Global Clean Energy Portfolio PBD 37.8 40.9 (310) 75 (235) PowerShares Global Water Portfolio PIO 41.9 41.6 35 75 110 Claymore/Delta Global Shipping Index ETF SEA 29.0 35.6 (656) 65 (591) Claymore/Beacon Global Exchanges, Brokers & Asset Ma EXB 41.3 42.4 (110) 65 (45) Claymore/Beacon Global Timber Index ETF CUT 51.7 54.3 (261) 95 (166) Claymore/MAC Global Solar Energy Index ETF TAN 21.3 22.4 (108) 65 (43) Cohen & Steers Global Realty Majors ETF GRI 32.5 33.4 (85) 55 (30) First Trust ISE Global Engineering and Construction Inde FLM 25.4 28.8 (336) 70 (266) Market Vectors-Gaming ETF BJK 40.2 39.4 85 65 150 PowerShares Emerging Markets Infrastructure Portfolio PXR 91.5 94.3 (275) 75 (200) PowerShares Global Agriculture Portfolio PAGG 61.2 63.9 (271) 75 (196) PowerShares Global Biotech Portfolio PBTQ 7.5 6.5 96 75 171 PowerShares Global Coal Portfolio PKOL 137.0 140.5 (351) 75 (276) PowerShares Global Gold and Precious Metals Portfolio PSAU 50.1 51.5 (134) 75 (59) PowerShares Global Progressive Transportation Portfolio PTRP 50.3 53.6 (328) 75 (253) PowerShares Global Steel Portfolio PSTL 73.6 76.7 (318) 75 (243) PowerShares Global Listed Private Equity Portfolio PSP 31.4 45.1 (1,368) 60 (1,308) First Trust FTSE EPRA/NAREIT Global Real Estate Index FFR 35.0 38.3 (326) 60 (266) First Trust Global Wind Energy Fund FAN 26.0 29.4 (335) 40 (295) ishares S&P Global Timber & Forestry Index Fund WOOD 40.1 38.0 210 48 258 ishares S&P Global Clean Energy Fund ICLN 8.8 7.3 150 48 198 ishares S&P Global Nuclear Energy Index Fund NUCL 39.5 40.3 (86) 48 (38) Market Vectors Solar Energy ETF KWT 12.8 12.6 14 65 79 PowerShares Global Nuclear Energy Portfolio PKN 28.2 29.0 (83) 75 (8) PowerShares Global Wind Energy Portfolio PWND 35.1 39.1 (402) 75 (327) SPDR Dow Jones Global Real Estate ETF RWO 34.1 34.1 0 50 50 Global Custom / Asset Allocation PowerShares Autonomic Growth NFA Global Asset Portfo PTO 26.5 26.8 (33) 86 53 PowerShares Autonomic Balanced Growth NFA Global A PAO 22.0 22.2 (26) 75 49 PowerShares Autonomic Balanced NFA Global Asset Po PCA 17.7 17.9 (26) 75 49 Global Average* 158 60 146 US Fixed Income ETFs Broad Market ishares Barclays Aggregate Bond Fund AGG 5.1 5.9 (80) 24 (56) Vanguard Total Bond Market ETF BND 6.0 5.9 10 14 24 Claymore/Dorchester - The Capital Markets Bond Index E UBD 4.7 (1.1) 577 27 604 Claymore/Dorchester Micro-Term Fixed Income ETF ULQ (0.1) (0.4) 32 27 59 SPDR Barclays Capital Aggregate Bond ETF LAG 5.1 5.9 (82) 13 (69) Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 17
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 0.1 0.2 (8) 13 5 ishares Barclays Short Treasury Bond Fund SHV 0.2 0.4 (17) 15 (2) ishares Barclays 1-3 Year Treasury Bond Fund SHY 0.5 0.8 (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) 13 10 ishares Barclays 10-20 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) 8 13 21 Vanguard Extended Duration Treasury ETF EDV (36.7) (35.7) (95) 14 (81) Treasury Inflation Protected Securities ishares Barclays TIPS Bond Fund TIP 11.4 11.4 (4) 20 16 SPDR Barclays Capital TIPS ETF IPE 11.2 10.5 70 18 88 Treasury / Investment Grade Vanguard Short-Term Bond ETF BSV 4.4 4.6 (18) 11 (7) ishares Barclays Intermediate Gov/Credit Bond Fund GVI 4.4 5.2 (84) 20 (64) Vanguard Intermediate-Term Bond ETF BIV 6.8 6.5 32 14 46 ishares Barclays Government/Credit Bond Fund GBF 4.0 4.5 (54) 20 (34) Vanguard Long-Term Bond ETF BLV 1.8 1.9 (13) 14 1 Federal Agency ishares Barclays Agency Bond Fund AGZ 1.5 1.5 (5) 35 30 Mortgage ishares Barclays MBS Bond Fund MBB 5.3 5.9 (60) 25 (35) Corporate Investment Grade iboxx $ Investment Grade Corporate Bond Fund LQD 12.1 12.8 (68) 15 (53) ishares Barclays 1-3 Year Credit Bond Fund CSJ 10.7 11.6 (86) 20 (66) ishares Barclays Intermediate Credit Bond Fund CIU 14.7 15.9 (121) 20 (101) ishares Barclays Credit Bond Fund CFT 14.2 16.0 (183) 20 (163) High Yield ishares iboxx $ High Yield Corporate Bond Fund HYG 40.7 44.5 (378) 50 (328) PowerShares High Yield Corporate Bond Portfolio PHB 33.0 43.9 (1,099) 50 (1,049) SPDR Barclays Capital High Yield Bond ETF JNK 50.5 63.5 (1,299) 40 (1,259) Preferred Income ETFs ishares S&P U.S. Preferred Stock Index Fund PFF 39.3 45.0 (574) 48 (526) PowerShares Preferred Portfolio PGX 19.3 21.5 (226) 50 (176) PowerShares Financial Preferred Portfolio PGF 40.5 42.8 (229) 60 (169) Municipal Income PowerShares VRDO Tax-Free Weekly Portfolio PVI 1.2 0.8 45 25 70 ishares S&P Short Term National Municipal Bond Fund SUB 4.3 4.6 (26) 25 (1) SPDR Barclays Capital Short Term Municipal Bond ETF SHM 5.2 5.8 (62) 20 (42) ishares S&P National Municipal Bond Fund MUB 10.6 12.2 (162) 25 (137) SPDR Barclays Capital Municipal Bond ETF TFI 10.5 11.5 (95) 20 (75) Market Vectors Short Municipal ETF SMB 6.8 7.1 (29) 65 36 Market Vectors Intermediate Municipal Index ETF ITM 10.8 11.6 (84) 20 (64) Market Vectors Long Municipal Index ETF MLN 17.9 21.3 (338) 65 (273) PowerShares Insured Municipal Bond Portfolio PZA 18.1 19.1 (96) 28 (68) ishares S&P California Municipal Bond Fund ETF CMF 10.2 10.3 (15) 25 10 PowerShares Insured California Municipal Bond Portfolio PWZ 15.6 17.8 (223) 28 (195) SPDR Barclays Capital California Municipal Bond ETF CXA 12.3 12.4 (9) 20 11 ishares S&P New York Municipal Bond Fund ETF NYF 11.6 12.9 (130) 25 (105) PowerShares Insured New York Municipal Bond Portfolio PZT 17.5 20.1 (261) 28 (233) SPDR Barclays Capital New York Municipal Bond ETF INY 12.6 13.1 (54) 20 (34) International Developed Fixed Income SPDR Barclays Capital International Treasury Bond ETF BWX 6.5 7.2 (66) 50 (16) SPDR DB International Government Inflation-Protected B WIP 18.5 18.7 (22) 50 28 International Emg. Mkts. Fixed Income ishares JPMorgan USD Emerging Markets Bond Fund EMB 27.2 28.7 (152) 60 (92) PowerShares Emerging Markets Sovereign Debt Portfolio PCY 33.3 35.9 (262) 50 (212) Fixed Income Average* 144 27 128 Source: Morgan Stanley Research, ETF Providers and Trustees, Bloomberg, *Tracking error displayed as an absolute value 18
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 15.1 13.5 164 75 239 GreenHaven Continous Commodity Index Fund GCC 19.6 16.8 282 109 391 PowerShares DB Commodity Index Tracking Fund DBC 15.1 16.4 (127) 93 (34) PowerShares DB Agriculture Fund DBA 1.9 2.6 (72) 101 29 PowerShares DB Oil Fund DBO 35.7 36.3 (63) 79 16 United States Natural Gas Fund UNG (56.7) (56.2) (54) 60 6 United States Oil Fund USO 14.1 14.9 (72) 85 13 PowerShares DB Base Metals Fund DBB 88.6 88.8 (19) 78 59 PowerShares DB Energy Fund DBE 24.8 25.9 (113) 78 (35) PowerShares DB Gold Fund DGL 22.0 23.0 (92) 79 (13) PowerShares DB Precious Metals Fund DBP 26.6 27.9 (135) 79 (56) PowerShares DB Silver Fund DBS 48.1 48.8 (65) 79 14 United States Gasoline Fund LP UGA 80.2 81.8 (163) 60 (103) United States Heating Oil Fund LP UHN 25.5 26.0 (47) 69 22 United States 12 Month Oil Fund LP USL 29.2 30.7 (146) 60 (86) Commodity Average* 108 79 74 Currency ETFs PowerShares DB G10 Currency Harvest Fund DBV 20.6 22.1 (147) 81 (66) PowerShares DB US Dollar Index Bearish Fund UDN 5.4 6.5 (114) 80 (34) PowerShares DB US Dollar Index Bullish Fund UUP (6.8) (6.7) (12) 80 68 Currency Average* 91 80 56 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
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 28.2 28.6 0.9 0.9 - - -0.5-0.5 ishares Russell 3000 Index Fund IWV 28.3 28.2 0.7 0.7 - - 0.0 0.0 PowerShares Dynamic Market Portfolio PWC 18.5 18.3-0.3-0.2 - - 6.2 6.2 Vanguard Extended Market ETF VXF 38.1 37.7 2.2 2.2 - - 5.9 5.7 Vanguard Total Stock Market ETF VTI 28.6 28.8 1.0 1.0 - - 1.1 1.2 Fidelity Nasdaq Composite Index Tracking Stock ONEQ 45.2 44.9 1.6 1.5 - - 4.8 4.2 First Trust Value Line 100 ETF FVL 14.2 12.7-2.7-3.9 - - 0.5 1.1 ishares NYSE Composite Index Fund NYC 27.9 28.2 2.0 2.1 - - 3.6 3.8 ishares S&P 1500 Index Fund ISI 26.6 27.1 0.5 0.5 - - 1.9 1.9 PowerShares FTSE RAFI US 1500 Small-Mid Portfolio PRFZ 58.6 56.3 - - - - 1.0 0.8 The SPDR Dow Jones Total Market ETF TMW 27.9 28.1 0.9 1.0 - - 0.2-0.1 WisdomTree Dividend ex-financials Fund DTN 25.6 26.0 - - - - -1.8-1.9 WisdomTree Earnings Index EXT 32.0 30.1 - - - - -5.7-6.1 WisdomTree Total Dividend Fund DTD 19.6 20.0 - - - - -2.6-2.6 Large-Cap Diamonds DIA 22.7 22.5 1.8 1.8 1.2 1.2 4.5 4.5 ishares Russell 1000 Index Fund IWB 28.4 28.4 0.8 0.7 - - -0.7-0.7 ishares S&P 100 Index Fund OEF 22.1 22.1 0.0 0.0 - - -2.0-2.0 ishares S&P 500 Index Fund IVV 26.6 26.4 0.4 0.4 - - -1.0-1.0 PowerShares QQQ QQQQ 54.6 54.4 3.2 3.1-6.6-6.6-0.8-0.7 PowerShares FTSE RAFI US 1000 Portfolio PRF 41.7 41.5 - - - - 0.7 0.7 Rydex Russell Top 50 ETF XLG 20.3 20.2 - - - - 0.4 0.2 Rydex S&P Equal Weight ETF RSP 44.6 45.0 1.6 1.6 - - 8.2 8.4 SPDR S&P 500 ETF SPY 26.2 26.3 0.4 0.4-1.0-1.0 7.6 7.7 Vanguard Large-Cap ETF VV 27.7 27.8 1.0 1.0 - - 2.2 2.2 WisdomTree LargeCap Dividend Fund DLN 17.3 18.2 - - - - -2.8-2.8 First Trust Large Cap Core AlphaDEX Fund FEX 36.8 36.1 - - - - -8.6-8.8 First Trust NASDAQ-100 Equal Weighted Index Fund QQEW 58.8 59.5 - - - - 0.2 0.1 ishares NYSE 100 Index Fund NY 16.2 16.3-0.9-0.9 - - 0.3 0.4 PowerShares Dynamic Large Cap Portfolio PJF 20.2 20.2 - - - - -3.6-3.7 RevenueShares Large Cap ETF RWL 29.9 30.2 - - - - -8.2-9.2 The SPDR Dow Jones Large Cap ETF ELR 27.2 26.9 - - - - 0.2 0.2 Vanguard Mega Cap 300 ETF MGC 25.3 25.4 - - - - -9.7-9.8 WisdomTree Earnings 500 Index EPS 27.2 27.1 - - - - -6.4-6.4 WisdomTree Earnings Top 100 Index EEZ 45.7 43.7 - - - - -6.8-7.0 Mid-Cap ishares Russell Midcap Index Fund IWR 40.7 40.3 2.3 2.3 - - 5.4 5.4 ishares S&P MidCap 400 Index Fund IJH 37.8 37.2 3.2 3.2 - - 6.0 6.0 S&P MidCap 400 Depository Receipts MDY 37.5 36.8 3.0 3.0 6.1 6.1 10.8 10.8 Vanguard Mid-Cap ETF VO 40.6 40.5 2.3 2.4 - - 4.5 4.5 Claymore/Zacks Mid-Cap Core ETF CZA 44.4 44.0 - - - - -1.6-1.9 First Trust Mid Cap Core AlphaDEX Fund FNX 46.8 47.4 - - - - -4.7-5.3 PowerShares Dynamic Mid Cap Portfolio PJG 29.5 29.9 - - - - -5.7-5.9 PowerShares NASDAQ Next-Q Portfolio PNXQ 43.9 42.7 - - - - -4.3-4.7 RevenueShares Mid Cap ETF RWK 51.9 51.9 - - - - -0.4-1.6 SPDR Dow Jones Mid Cap ETF EMM 45.1 44.2 - - - - 2.6 2.4 WisdomTree MidCap Dividend Fund DON 31.9 32.0 - - - - -1.0-1.1 WisdomTree MidCap Earnings Index EZM 50.2 49.6 - - - - -3.4-3.5 Small-Cap ishares Russell 2000 Index Fund IWM 28.5 27.2 0.5 0.5 - - 4.2 4.2 ishares S&P SmallCap 600 Index Fund IJR 25.9 25.5 1.2 1.2 - - 6.5 6.6 Vanguard Small-Cap ETF VB 36.7 36.3 1.8 1.9 - - 3.5 3.6 First Trust Small Cap Core AlphaDEX Fund FYX 36.8 37.1 - - - - -8.2-8.5 PowerShares Dynamic Small Cap Portfolio PJM 16.1 17.8 - - - - -9.1-9.3 PowerShares FTSE NASDAQ Small Cap Portfolio PQSC 40.0 33.0 - - - - -5.7-8.0 PowerShares Zacks Small Cap Portfolio PZJ 19.8 19.2 - - - - -8.5-8.5 RevenueShares Small Cap ETF RWJ 46.5 48.2 - - - - 3.2 2.8 SPDR Dow Jones Small Cap ETF DSC 41.3 41.2 - - - - 2.1 2.0 WisdomTree SmallCap Dividend Fund DES 22.2 21.2 - - - - -3.3-3.3 WisdomTree SmallCap Earnings Index EES 48.7 48.9 - - - - -5.5-5.3 Micro-Cap ishares Russell Microcap Index Fund IWC 23.7 24.8 - - - - -4.8-4.7 First Trust Dow Jones Select MicroCap Index Fund FDM 20.0 20.9 - - - - -2.5-1.4 PowerShares Zacks Micro Cap Portfolio PZI 12.1 11.5 - - - - -8.4-8.4 Source: Thomson as of 12/31/09 20
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 36.8 36.7 1.4 1.4 - - -4.6-4.6 ishares Russell 3000 Value Index Fund IWW 19.7 19.7-0.4-0.4 - - 3.0 3.0 First Trust Multi Cap Growth AlphaDEX Fund FAD 30.9 29.7 - - - - -7.6-8.4 First Trust Multi Cap Value AlphaDEX Fund FAB 48.3 47.6 - - - - -7.1-7.5 Large-Cap Growth/Value/Core ishares Morningstar Large Growth Index Fund JKE 43.9 43.9 0.3 0.4 - - 0.5 0.5 ishares Russell 1000 Growth Index Fund IWF 36.7 37.0 1.5 1.5 - - -3.8-3.8 ishares S&P 500 Growth Index Fund IVW 31.1 31.3 1.4 1.4 - - -2.4-2.4 PowerShares Dynamic Large-Cap Growth Portfolio PWB 34.6 34.2 - - - - -0.3-0.3 Vanguard Growth ETF VUG 36.2 36.5 1.7 1.8 - - 1.9 1.9 First Trust DB Strategic Value Index Fund FDV 39.7 39.4 - - - - 2.1 2.0 First Trust Large Cap Growth Opportunities AlphaDEX Fu FTC 28.8 29.3 - - - - -9.0-9.3 First Trust Large Cap Value Opportunities AlphaDEX Fun FTA 40.4 41.2 - - - - -8.5-8.7 First Trust NASDAQ-100 Ex-Technology Sector Index Fu QQXT 46.8 46.7 - - - - -4.3-4.4 Rydex S&P 500 Pure Growth ETF RPG 49.3 50.2 - - - - 0.8 0.4 SPDR Dow Jones Large Cap Growth ETF ELG 37.0 37.1 1.2 1.3 - - -6.5-6.5 Vanguard Mega Cap 300 Growth ETF MGK 35.1 35.1 - - - - -6.4-6.5 WisdomTree LargeCap Growth Fund ROI 26.8 27.0 - - - - 34.1 38.3 ishares Morningstar Large Value Index Fund JKF 11.0 11.3-1.2-1.2 - - 0.9 0.9 ishares Russell 1000 Value Index Fund IWD 19.2 19.7-0.4-0.3 - - 2.5 2.5 ishares S&P 500 Value Index Fund IVE 20.9 21.2-0.9-0.9 - - 0.8 0.8 PowerShares Dynamic Large Cap Value Portfolio PWV 18.6 19.2 - - - - 4.7 4.5 Vanguard Value ETF VTV 19.6 19.7 0.2 0.2 - - 2.0 2.0 ishares Morningstar Large Core Index Fund JKD 21.1 21.3 1.5 1.5 - - 3.2 3.1 Rydex S&P 500 Pure Value ETF RPV 53.4 54.0 - - - - -2.9-3.3 SPDR Dow Jones Large Cap Value ETF ELV 17.1 17.2-0.6-0.6 - - 0.8 0.9 Vanguard Mega Cap 300 Value ETF MGV 16.2 16.5 - - - - -13.0-13.0 WisdomTree LargeCap Value Fund EZY 29.4 29.1 - - - - -9.6-9.6 Mid-Cap Growth/Value/Core ishares Morningstar Mid Growth Index Fund JKH 42.2 41.6 2.8 2.8 - - 5.1 5.0 ishares Russell Midcap Growth Index Fund IWP 46.5 46.0 2.2 2.2 - - 3.2 3.2 ishares S&P MidCap 400 Growth Index Fund IJK 41.1 40.8 3.6 3.6 - - 2.0 2.0 Vanguard Mid-Cap Growth ETF VOT 43.2 42.9 - - - - -1.3-1.3 PowerShares Dynamic Mid Cap Growth Portfolio PWJ 23.6 23.3 - - - - 2.5 2.5 Rydex S&P MidCap 400 Pure Growth ETF RFG 60.8 59.7 - - - - 3.9 3.0 SPDR Dow Jones Mid Cap Growth ETF EMG 56.1 55.4 - - - - 4.0 4.0 ishares Morningstar Mid Value Index Fund JKI 35.4 35.6 1.5 1.6 - - 4.0 4.1 ishares Russell Midcap Value Index Fund IWS 33.3 34.1 1.9 1.9 - - 6.3 6.3 ishares S&P MidCap 400 Value Index Fund IJJ 34.4 33.5 2.6 2.6 - - 8.4 8.4 Vanguard Mid-Cap Value ETF VOE 38.1 37.8 - - - - -2.0-2.0 PowerShares Dynamic Mid Cap Value Portfolio PWP 25.7 25.9 - - - - 0.0 0.0 Rydex S&P Midcap 400 Pure Value ETF RFV 59.6 58.3 - - - - 0.3-0.6 SPDR DJ Wilshire Mid Cap Value ETF EMV 34.6 31.6 - - - - 0.7 0.5 ishares Morningstar Mid Core Index Fund JKG 38.6 38.6 1.6 1.6 - - 3.8 3.8 Small-Cap Growth/Value/Core ishares Russell 2000 Growth Index Fund IWO 34.6 34.4 0.8 0.8 - - -1.4-1.4 ishares S&P SmallCap 600 Growth Index Fund IJT 28.8 28.2 1.8 1.8 - - 3.9 3.9 Vanguard Small-Cap Growth ETF VBK 42.5 42.1 2.7 2.7 - - 3.3 3.3 ishares Morningstar Small Growth Index Fund JKK 32.7 32.6 0.4 0.4 - - 2.3 1.8 PowerShares Dynamic Small Cap Growth Portfolio PWT 17.5 18.1 - - - - -3.6-3.5 Rydex S&P SmallCap 600 Pure Growth ETF RZG 39.1 37.6 - - - - -0.4-1.1 SPDR Dow Jones Small Cap Growth ETF DSG 47.1 46.8 2.9 2.9 - - -1.4-1.4 ishares Russell 2000 Value Index Fund IWN 20.6 20.4-0.1-0.1 - - 7.6 7.7 ishares S&P SmallCap 600 Value Index Fund IJS 22.4 22.7 0.6 0.6 - - 7.2 7.2 Vanguard Small-Cap Value ETF VBR 31.2 30.6 0.9 0.9 - - 3.5 3.5 ishares Morningstar Small Value Index Fund JKL 40.1 39.9 1.8 1.9 - - 4.6 4.6 PowerShares Dynamic Small Cap Value Portfolio PWY 20.0 20.4 - - - - -2.0-1.9 Rydex S&P SmallCap 600 Pure Value ETF RZV 62.6 67.0 - - - - -3.5-4.0 SPDR Dow Jones Small Cap Value ETF DSV 37.0 36.6 1.9 1.9 - - 10.9 10.2 ishares Morningstar Small Core Index Fund JKJ 39.8 39.4 1.5 1.5 - - 4.0 4.0 Source: Thomson as of 12/31/09 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 Sector and Industry ETFs Symbol Market NAV Market NAV Market NAV Market NAV Consumer Discretionary Consumer Discretionary Select Sector SPDR XLY 40.5 41.2-2.1-2.1 0.6 0.7 2.5 2.5 ishares DJ US Cons. Services Sector Index Fund IYC 32.6 33.1-1.1-1.1 - - -0.2-0.2 Vanguard Consumer Discretionary ETF VCR 46.5 46.5-2.1-2.2 - - -0.1-0.1 First Trust Consumer Discretionary AlphaDEX Fund FXD 57.1 57.1 - - - - -9.9-10.1 PowerShares Dynamic Consumer Discretionary Portfolio PEZ 25.8 25.9 - - - - -6.9-6.9 Rydex S&P Equal Weight Consumer Discretionary ETF RCD 65.0 64.0 - - - - -5.3-5.5 SPDR Retail ETF XRT 77.3 77.7 - - - - 0.0 0.0 ishares Dow Jones US Home Construction ITB 23.2 21.1 - - - - -32.0-31.8 SPDR S&P Homebuilders ETF XHB 27.6 26.8 - - - - -23.7-23.8 PowerShares Dynamic Building and Construction Portfoli PKB 1.3 1.8 - - - - -5.7-5.6 PowerShares Dynamic Leisure & Entertainment Portfolio PEJ 42.8 42.4 - - - - -1.1-1.1 PowerShares Dynamic Media Portfolio PBS 61.9 61.3 - - - - -4.8-4.7 PowerShares Dynamic Retail Portfolio PMR 30.0 30.5 - - - - 1.6 1.7 Consumer Staples Consumer Staples Select Sector SPDR XLP 14.2 14.2 5.2 5.2 3.4 3.4 1.9 1.9 ishares DJ US Consumer Goods Sector Index Fund IYK 23.3 23.2 2.9 2.9 - - 5.1 5.1 Vanguard Consumer Staples ETF VDC 16.7 16.9 5.7 5.7 - - 6.4 6.4 First Trust Consumer Staples AlphaDEX Fund FXG 27.5 27.1 - - - - -2.7-3.2 PowerShares Dynamic Consumer Staples Portfolio PSL 19.7 20.1 - - - - 1.0 1.0 Rydex S&P Equal Weight Consumer Staples ETF RHS 27.6 26.5 - - - - 3.7 3.4 PowerShares Dynamic Food & Beverage Portfolio PBJ 11.0 10.8 - - - - 0.8 0.8 Energy Energy Select Sector SPDR XLE 21.8 21.6 11.0 11.0 9.4 9.4 10.2 10.2 ishares Dow Jones US Energy Sector Index Fund IYE 19.3 19.1 10.5 10.5 - - 8.7 8.7 Vanguard Energy ETF VDE 25.0 24.9 11.1 11.1 - - 11.6 11.6 First Trust Energy AlphaDEX Fund FXN 46.5 47.5 - - - - -6.0-6.5 PowerShares Dynamic Energy Portfolio PXI 42.2 41.1 - - - - 1.9 1.9 Rydex S&P Equal Weight Energy ETF RYE 44.8 45.3 - - - - 2.4 2.0 ishares Dow Jones U.S. Oil Equipment & Services IEZ 63.6 63.7 - - - - -5.1-4.4 ishares Dow Jones U.S. Oil & Gas Exploration & Product IEO 41.0 40.7 - - - - 1.9 2.0 PowerShares Dynamic Oil & Gas Services Portfolio PXJ 52.9 52.7 - - - - 1.0 1.0 SPDR Oil & Gas Exploration & Production ETF XOP 40.2 39.9 - - - - 5.7 5.6 First Trust ISE-Revere Natural Gas Index Fund FCG 50.1 49.2 - - - - -3.8-4.0 PowerShares Dynamic Energy & Exploration Portfolio PXE 19.9 20.0 - - - - 1.2 1.2 SPDR Oil & Gas Equipment & Services ETF XES 67.8 67.6 - - - - 0.8 0.7 Financials Financials Select Sector SPDR XLF 17.5 17.5-11.6-11.6-2.8-2.8-2.2-2.2 ishares Dow Jones US Financial Sector Index Fund IYF 16.9 16.9-9.8-9.8 - - -1.2-1.2 Vanguard Financials ETF VFH 14.5 14.8-9.4-9.4 - - -6.7-6.7 First Trust Financial AlphaDEX Fund FXO 33.6 31.7 - - - - -15.4-15.4 PowerShares Dynamic Financial Portfolio PFI -5.1-5.0 - - - - -10.8-10.8 Rydex S&P Equal Weight Financials ETF RYF 31.9 30.6 - - - - -19.9-20.0 RevenueShares Financials Sector Fund RWW 27.1 26.9 - - - - 24.6 15.6 ishares Dow Jones Broker-Dealers Index Fund IAI 42.1 42.1 - - - - -14.5-13.3 ishares Dow Jones US Financial Services Index Fund IYG 16.1 16.4-11.8-11.8 - - -2.8-2.8 KBW Bank ETF KBE -1.8-1.5 - - - - -16.1-16.0 KBW Regional Banking ETF KRE -21.9-22.0 - - - - -16.7-16.7 KBW Capital Markets ETF KCE 41.1 40.9 - - - - -6.9-6.9 ishares Dow Jones U.S. Regional Banks Index Fund IAT -10.9-10.7 - - - - -19.1-18.8 PowerShares Dynamic Banking Portfolio PJB -22.9-22.8 - - - - -18.2-18.3 ishares Dow Jones U.S. Insurance Index Fund IAK 14.0 14.1 - - - - -14.9-14.6 KBW Insurance ETF KIE 27.9 28.5 - - - - -7.9-7.9 PowerShares Dynamic Insurance Portfolio PIC -4.0-3.8 - - - - -1.7-1.7 Health Care- Broad Based Health Care Select Sector SPDR XLV 19.5 19.8 2.3 2.3 1.3 1.3 3.2 3.2 ishares Dow Jones US Healthcare Sector Index Fund IYH 21.0 21.3 2.9 2.9 - - 1.7 1.7 Vanguard Health Care ETF VHT 22.0 22.0 3.0 3.0 - - 2.5 2.5 First Trust Health Care AlphaDEX Fund FXH 51.2 51.2 - - - - 3.1 2.9 PowerShares Dynamic Healthcare Portfolio PTH 21.1 21.3 - - - - -1.5-1.6 Rydex S&P Equal Weight Health Care ETF RYH 38.8 38.7 - - - - 4.4 4.4 ishares Dow Jones U.S. Medical Devices Index Fund IHI 38.5 38.3 - - - - 1.9 2.0 ishares DJ US Healthcare Providers Index Fund IHF 35.4 36.1 - - - - 0.5 0.1 PowerShares Dynamic Healthcare Services Portfolio PTJ 20.8 20.3 - - - - -6.0-6.3 Source: Thomson as of 12/31/09 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 (Continued) Symbol Market NAV Market NAV Market NAV Market NAV Health Care- Biotechnology ishares Nasdaq Biotechnology Index Fund IBB 15.2 15.5 1.7 1.7 - - -2.2-2.2 SPDR Biotech ETF XBI 0.4 0.5 - - - - 2.7 2.7 First Trust Amex Biotechnology Index Fund FBT 45.1 44.9 - - - - 11.2 11.1 PowerShares Dynamic Biotech & Genome Portfolio PBE 21.9 21.6 - - - - 2.9 2.9 Health Care- Pharmaceuticals ishares Dow Jones U.S. Pharmaceuticals Index Fund IHE 30.1 30.4 - - - - 5.4 5.6 PowerShares Dynamic Pharmaceuticals Portfolio PJP 17.4 16.9 - - - - 6.0 6.0 SPDR Pharmaceuticals ETF XPH 27.6 28.1 - - - - 7.2 7.2 Industrials Industrials Select Sector SPDR XLI 22.0 22.6-0.2-0.2 1.0 1.1 3.3 3.3 ishares Dow Jones US Industrial Sector Index Fund IYJ 25.8 25.7 0.2 0.2 - - 0.2 0.2 Vanguard Industrials ETF VIS 22.2 22.4 0.2 0.2 - - 2.4 2.1 First Trust Industrials AlphaDEX Fund FXR 42.0 42.1 - - - - -10.6-10.6 PowerShares Dynamic Industrials Portfolio PRN 14.9 14.9 - - - - -3.6-3.9 Rydex S&P Equal Weight Industrials ETF RGI 29.6 28.6 - - - - -1.8-1.9 ishares Dow Jones Transportation Index Fund IYT 18.9 18.8 2.6 2.6 - - 7.4 7.6 ishares Dow Jones US Aerospace & Defense ITA 25.3 25.3 - - - - 0.3 1.1 PowerShares Aerospace & Defense Portfolio PPA 23.0 23.2 - - - - 4.0 4.0 Information Technology- Broad Based ishares DJ US Technology Sector Index Fund IYW 63.8 63.5 3.8 3.8 - - -6.8-6.8 ishares S&P North American Technology IGM 62.4 62.3 3.3 3.3 - - -0.3-0.3 Morgan Stanley Technology ETF MTK 70.5 70.2 2.9 2.9 - - -5.1-5.2 Technology Select Sector SPDR XLK 51.3 51.0 2.7 2.7-7.5-7.5-2.3-2.3 Vanguard Information Technology ETF VGT 61.9 61.7 3.6 3.6 - - 1.7 1.7 First Trust NASDAQ-100-Technology Sector Index Fund QTEC 79.7 79.9 - - - - 2.1 2.1 First Trust Technology AlphaDEX Fund FXL 66.8 67.0 - - - - -4.3-4.5 PowerShares Dynamic Technology Portfolio PTF 43.7 42.2 - - - - -3.1-3.5 Rydex S&P Equal Weight Technology ETF RYT 69.1 68.8 - - - - -1.9-2.0 Information Technology- Internet First Trust Dow Jones Internet Index Fund FDN 79.1 79.2 - - - - 6.0 5.8 PowerShares NASDAQ Internet Portfolio PNQI 88.0 88.1 - - - - 3.6 5.1 Information Technology- Networking ishares S&P North American Networking Index Fund IGN 60.6 60.2-2.2-2.2 - - -3.4-3.4 PowerShares Dynamic Networking Portfolio PXQ 63.1 63.7 - - - - 4.2 4.4 Information Technology- Semiconductor ishares S&P North American Semiconductors IGW 74.9 74.6-1.2-1.3 - - -3.1-3.1 PowerShares Dynamic Semiconductors Portfolio PSI 47.1 47.9 - - - - -2.0-1.9 SPDR S&P Semiconductor ETF XSD 99.0 99.2 - - - - -2.4-2.5 Information Technology- Software ishares S&P North American Software Index Fund IGV 47.5 47.2 1.9 1.9 - - -0.5-0.5 PowerShares Dynamic Software Portfolio PSJ 56.2 56.2 - - - - 7.2 7.6 Materials ishares DJ US Basic Materials Sector Index Fund IYM 64.4 64.6 5.5 5.5 - - 7.4 7.4 Materials Select Sector SPDR XLB 48.1 48.5 4.5 4.6 4.7 4.8 6.8 6.8 Vanguard Materials ETF VAW 51.5 51.6 4.9 4.9 - - 7.5 7.5 First Trust Materials AlphaDEX Fund FXZ 59.5 60.0 - - - - -0.9-1.1 PowerShares Dynamic Basic Materials Portfolio PYZ 47.6 48.1 - - - - 4.8 4.7 Rydex S&P Equal Weight Materials ETF RTM 70.0 67.1 - - - - 4.2 4.3 Natural Resources ishares S&P North American Natural Resources Sector I IGE 37.1 36.9 10.6 10.6 - - 11.3 11.3 Market Vectors Gold Miners ETF GDX 36.7 37.3 - - - - 6.9 6.8 Market Vectors Steel Index ETF SLX 112.8 112.5 - - - - 14.7 14.8 SPDR S&P Metals & Mining ETF XME 88.2 87.9 - - - - 5.0 5.0 Real Estate ishares Cohen & Steers Realty Majors Index Fund ICF 25.5 25.3-0.8-0.8 - - 8.3 8.3 ishares Dow Jones US Real Estate Index Fund IYR 30.5 30.2-1.1-1.1 - - 8.5 8.5 SPDR Dow Jones REIT ETF RWR 28.2 28.5-0.1-0.1 - - 8.5 8.8 Vanguard REIT ETF VNQ 30.2 29.7 0.7 0.6 - - 3.4 3.3 First Trust S&P REIT Index Fund FRI 28.4 28.0 - - - - -16.4-16.2 ishares FTSE EPRA/NAREIT North America Index Fund IFNA 37.2 31.8 - - - - -13.1-13.5 ishares FTSE NAREIT Industrial/Office Index Fund FIO 30.4 27.8 - - - - -21.4-21.1 ishares FTSE NAREIT Mortgage REITs Index Fund REM 11.3 11.6 - - - - -29.4-29.2 ishares FTSE NAREIT Real Estate 50 Index Fund FTY 27.0 27.2 - - - - -15.5-15.4 ishares FTSE NAREIT Residential Index Fund REZ 20.7 21.2 - - - - -11.0-11.3 ishares FTSE NAREIT Retail Index Fund RTL 28.2 25.3 - - - - -22.7-22.5 Source: Thomson as of 12/31/09 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 Telecommunication Services ishares Dow Jones US Telecom Sector Index Fund IYZ 26.2 26.2-0.8-0.8 - - -8.0-8.0 Vanguard Telecom Services ETF VOX 29.4 29.6 3.1 3.1 - - 5.2 4.9 PowerShares Dynamic Telecommunications & Wireless P PTE 26.6 26.0 - - - - -0.4-0.2 Utilities ishares Dow Jones US Utilities Sector Index Fund IDU 12.3 12.1 4.8 4.8 - - 4.0 4.0 Utilities Select Sector SPDR XLU 11.7 11.4 5.7 5.7 4.5 4.5 3.9 3.9 Vanguard Utilities ETF VPU 11.3 11.4 5.5 5.6 - - 8.1 8.1 First Trust Utilities AlphaDEX Fund FXU 22.6 22.5 - - - - -6.0-6.3 PowerShares Dynamic Utilities Portfolio PUI 3.4 3.4 - - - - 2.6 2.7 Rydex S&P Equal Weight Consumer Utilities ETF RYU 20.8 20.2 - - - - -1.1-1.3 US Specialty Market ETFs Dividend Income ishares Dow Jones Select Dividend Index Fund DVY 11.2 11.0-2.9-2.8 - - 1.7 1.5 SPDR S&P Dividend ETF SDY 19.1 19.1 - - - - 0.7 0.7 Vanguard High Dividend Yield ETF VYM 17.3 17.6 - - - - -5.5-5.5 Vanguard Dividend Appreciation ETF VIG 19.3 19.3 - - - - 0.2 0.2 Claymore/Zacks Dividend Rotation Index ETF IRO 50.9 48.6 - - - - -7.0-7.4 Claymore/Zacks Multi-Asset Income Index ETF CVY 50.3 50.6 - - - - -3.4-3.3 First Trust Morningstar Dividend Leaders Index Fund FDL 13.4 14.2 - - - - -5.0-5.0 First Trust Value Line Dividend Index Fund FVD 19.2 19.6 4.6 2.4 - - 5.8 6.6 PowerShares Dividend Achievers Portfolio PFM 10.7 11.2 - - - - -1.8-1.8 PowerShares High Yield Equity Dividend Achievers Port. PEY 3.6 3.7-9.0-9.0 - - -8.4-8.3 Claymore/S&P Global Dividend Opportunities Index ETF LVL 68.2 64.5 - - - - -13.1-13.4 WisdomTree Equity Income Fund DHS 17.0 17.7 - - - - -6.3-6.2 Custom PowerShares Water Resources Portfolio PHO 18.0 17.0 - - - - 2.8 3.4 PowerShares WilderHill Clean Energy Portfolio PBW 27.6 29.0 - - - - -7.1-7.0 PowerShares S&P 500 BuyWrite Portfolio PBP 24.0 24.8 - - - - -5.4-5.8 Claymore/Beacon Spin-off ETF CSD 65.3 64.3 - - - - -6.4-6.4 Claymore/Ocean Tomo Growth Index ETF OTR 57.2 50.9 - - - - -0.6-0.8 Claymore/Ocean Tomo Patent ETF OTP 29.7 29.1 - - - - -0.7-0.8 Claymore/Robb Report Global Luxury Index ETF ROB 48.7 49.2 - - - - -11.8-12.9 Claymore/Sabrient Defensive Equity Index ETF DEF 22.3 22.3 - - - - -3.8-3.7 Claymore/Sabrient Insider ETF NFO 48.7 47.7 - - - - 3.9 4.0 Claymore/Sabrient Stealth ETF STH 20.0 18.0 - - - - -10.6-10.8 Claymore/Zacks Sector Rotation ETF XRO 30.3 30.3 - - - - -4.2-4.2 First Trust IPOX-100 Index Fund FPX 44.6 44.9 - - - - 0.8 0.9 First Trust ISE Water Index Fund FIW 19.8 20.3 - - - - -2.3-2.3 First Trust NASDAQ Clean Edge US Liquid Series Index QCLN 42.3 43.8 - - - - -7.3-7.2 First Trust Value Line Equity Allocation Index Fund FVI 35.4 34.2 - - - - -3.2-3.4 ishares KLD 400 Social Index Fund DSI 30.7 31.0 - - - - -3.9-3.9 ishares KLD Select Social Index Fund KLD 30.4 30.4 - - - - 1.2 1.3 Market Vectors Environmental Services ETF EVX 22.3 22.1 - - - - 2.0 1.9 PowerShares Buyback Achievers PKW 31.3 31.3 - - - - -5.1-5.2 PowerShares Cleantech Portfolio PZD 35.6 38.4 - - - - -0.5-0.2 PowerShares DWA Technical Leaders Portfolio PDP 28.0 27.4 - - - - -8.5-8.4 PowerShares Dynamic MagniQuant Portfolio PIQ 19.9 18.8 - - - - -5.8-6.0 PowerShares Dynamic OTC Portfolio PWO 20.6 19.7-2.0-2.1 - - 5.5 5.5 PowerShares Lux Nanotech Portfolio PXN 38.2 38.7 - - - - -8.6-8.5 PowerShares NASDAQ-100 BuyWrite Portfolio PQBW 45.5 44.1 - - - - -3.1-2.3 PowerShares Value Line Industry Rotation Portfolio PYH 10.7 10.4 - - - - -9.8-9.7 PowerShares Value Line Timeliness Select Portfolio PIV 12.6 11.7 - - - - -7.8-7.5 PowerShares WilderHill Progressive Energy Portfolio PUW 59.1 59.3 - - - - -1.3-1.2 Source: Thomson as of 12/31/09 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 Specialty Market ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV Asset Allocation ishares S&P Conservative Allocation Fund AOK 8.0 9.3 - - - - 11.4 9.8 ishares S&P Moderate Allocation Fund AOM 13.2 13.8 - - - - 26.6 12.0 ishares S&P Growth Allocation Fund AOR 19.0 19.1 - - - - 22.2 14.2 ishares S&P Aggressive Allocation Fund AOA 25.8 26.4 - - - - 20.7 17.2 ishares S&P Target Date 2010 Index Fund TZD 17.5 14.5 - - - - 16.9 13.5 TDX Independence 2010 ETF TDD 5.7 9.1 - - - - -1.9-1.1 ishares S&P Target Date 2015 Index Fund TZE 19.0 17.3 - - - - 23.1 14.8 ishares S&P Target Date 2020 Index Fund TZG 28.0 19.8 - - - - 26.5 15.7 TDX Independence 2020 ETF TDH 13.7 17.4 - - - - -6.5-5.9 ishares S&P Target Date 2025 Index Fund TZI 22.4 21.9 - - - - 30.0 16.2 ishares S&P Target Date 2030 Index Fund TZL 28.7 23.5 - - - - 27.2 16.4 TDX Independence 2030 ETF TDN 6.0 21.1 - - - - -11.8-11.3 ishares S&P Target Date 2035 Index Fund TZO 24.4 24.8 - - - - 31.5 16.5 ishares S&P Target Date 2040 Index Fund TZV 30.5 25.8 - - - - 32.9 41.1 TDX Independence 2040 ETF TDV 26.6 24.5 - - - - -13.5-12.6 ishares S&P Target Date Retirement Income Index Fund TGR 9.9 11.3 - - - - 17.1 11.9 TDX Independence In-Target ETF TDX 9.0 6.0 - - - - 1.2 2.3 Broad International ETFs World ex-us Vanguard FTSE All-World ex-us ETF VEU 37.7 38.9 - - - - -2.9-3.0 ishares MSCI ACWX Index Fund ACWX 36.3 40.7 - - - - -9.7-9.4 SPDR S&P International Small Cap ETF GWX 38.3 41.5 - - - - -10.3-10.0 ishares FTSE Developed Small Cap ex-north America In IFSM 42.9 45.5 - - - - -13.2-15.2 RevenueShares ADR Fund RTR 38.6 38.0 - - - - 54.8 50.4 SPDR MSCI ACWI ex-us ETF CWI 37.1 42.1 - - - - -3.0-2.1 SPDR S&P World ex-us ETF GWL 28.6 33.3 - - - - -8.9-8.9 SPDR S&P International Mid Cap ETF MDD 32.1 35.9 - - - - -14.0-14.2 Developed Markets ishares MSCI EAFE Index Fund EFA 26.9 31.3 3.3 3.4 - - 5.4 5.4 Vanguard Europe Pacific ETF VEA 27.6 28.4 - - - - -11.7-11.8 ishares MSCI EAFE Growth Index Fund EFG 24.2 29.1 - - - - 3.4 3.7 ishares MSCI EAFE Value Index Fund EFV 28.3 33.7 - - - - 2.8 3.0 WisdomTree DEFA Fund DWM 27.1 31.4 - - - - 1.3 1.5 WisdomTree International MidCap Dividend Fund DIM 34.0 36.6 - - - - 2.3 2.4 ishares MSCI EAFE Small Cap Index Fund SCZ 42.8 46.3 - - - - -14.4-14.4 WisdomTree International SmallCap Dividend Fund DLS 37.1 41.9 - - - - -0.1 0.3 BLDRs Developed Markets 100 ADR Index Fund ADRD 29.0 28.6 2.6 2.6 - - 8.5 8.5 Claymore/Zacks Country Rotation ETF CRO 28.2 30.8 - - - - -13.6-13.1 PowerShares DWA Developed Markets Technical Leader PIZ 37.8 40.4 - - - - -10.8-12.5 PowerShares Dynamic Developed International Portfolio PFA 40.0 47.6 - - - - -14.7-14.4 PowerShares FTSE RAFI Developed Mkts. Ex-US Small/ PDN 54.8 54.6 - - - - -6.0-5.8 PowerShares FTSE RAFI Developed Markets ex-us Port PXF 36.0 42.4 - - - - -8.3-8.5 WisdomTree International LargeCap Dividend Fund DOL 25.0 29.9 - - - - 1.4 1.6 WisdomTree International Dividend ex-financials DOO 33.1 37.0 - - - - 1.3 1.7 WisdomTree World ex-us Growth Fund DNL 13.5 17.1 - - - - 1.2 1.0 Emerging Markets ishares MSCI Emerging Markets Index Fund EEM 68.8 71.7 14.9 15.1 - - 23.6 23.5 Vanguard Emerging Markets ETF VWO 75.3 76.3 - - - - 14.1 14.1 WisdomTree Emerging Markets Equity Income Fund DEM 58.1 61.3 - - - - 2.5 3.4 BLDRS Emerging Markets 50 ADR Index Fund ADRE 65.5 65.0 18.6 18.6 - - 22.9 22.3 SPDR S&P Emerging Markets ETF GMM 72.3 77.0 - - - - 6.6 6.7 SPDR S&P Emerging SmallCap ETF EWX 94.6 100.6 - - - - -5.7-3.9 PowerShares DWA Emerging Markets Technical Leaders PIE 57.7 59.6 - - - - -23.5-23.1 PowerShares FTSE RAFE Emerging Markets PXH 67.0 71.2 - - - - -3.9-3.1 WisdomTree Small Cap Emerging Markets Dividend Fund DGS 83.2 85.9 - - - - -4.1-4.4 ishares MSCI BRIC Index Fund BKF 85.4 89.8 - - - - -9.7-8.6 Claymore/BNY BRIC ETF EEB 86.1 84.9 - - - - 20.9 20.9 Claymore/BNY Mellon Frontier Markets ETF FRN 54.3 53.3 - - - - -16.7-16.5 Market Vectors - Gulf States ETF MES 2.2 6.5 - - - - -40.6-40.5 PowerShares MENA Frontier Countries Portfolio PMNA 5.1 2.3 - - - - -36.3-37.1 SPDR S&P BRIC 40 ETF BIK 78.4 81.2 - - - - 3.1 3.8 WisdomTree Middle East Dividend Fund GULF 3.6 7.8 - - - - -29.9-30.7 Source: Thomson as of 12/31/09 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. Broad International ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV International Dividend PowerShares International Dividend Achievers Portfolio PID 38.0 37.0 - - - - 1.7 1.8 WisdomTree DEFA Equity Income Fund DTH 33.1 36.3 - - - - 0.7 0.9 Claymore/Zacks International Multi-Asset Income Index E HGI 50.1 51.7 - - - - -7.9-8.2 First Trust DJ STOXX Select Dividend 30 Index Fund FDD 31.3 37.2 - - - - -23.8-23.7 First Trust Dow Jones Global Select Dividend Index Fund FGD 60.0 63.9 - - - - -9.1-9.9 ishares Dow Jones EPAC Select Dividend Index Fund IDV 60.6 69.4 - - - - -11.3-11.1 SPDR S&P International Dividend ETF DWX 62.1 65.5 - - - - -9.0-7.3 WisdomTree Pacific ex-japan Equity Income Fund DNH 78.2 82.9 - - - - 10.9 11.1 International Region & Country ETFs Asia/Pacific Vanguard Pacific ETF VPL 20.6 21.3 - - - - 2.4 2.5 ishares MSCI All Country Asia ex-japan Index Fund AAXJ 68.4 70.8 - - - - 9.5 10.4 ishares MSCI Pacific ex-japan Index Fund EPP 63.2 71.6 10.7 11.0 - - 15.4 15.6 SPDR S&P Emerging Asia Pacific ETF GMF 70.4 74.0 - - - - 8.3 8.4 BLDRS Asia 50 ADR Index Fund ADRA 35.1 34.4 4.2 4.2 - - 9.2 8.8 ishares S&P Asia 50 Index Fund AIA 60.8 60.3 - - - - -8.0-6.9 PowerShares FTSE RAFI Asia Pacific ex-japan Portfolio PAF 71.6 76.8 - - - - 1.7 1.7 WisdomTree Pacific ex-japan Total Dividend Fund DND 55.7 59.3 - - - - 11.0 11.1 First Trust ISE Chindia Index Fund FNI 82.6 81.6 - - - - 2.6 2.4 ishares MSCI Australia Index Fund EWA 67.9 74.9 11.2 11.4 11.5 11.7 10.0 10.1 ishares FTSE/Xinhua China 25 Index Fund FXI 47.3 52.3 19.8 20.4 - - 19.6 20.4 SPDR S&P China ETF GXC 60.5 65.4 - - - - 12.7 13.3 Claymore/AlphaShares China Small Cap Index ETF HAO 96.6 102.1 - - - - 2.7 6.3 ishares MSCI Hong Kong Index Fund EWH 54.9 59.1 8.3 8.7 3.4 3.8 4.4 4.6 WisdomTree India Earnings Fund EPI 95.1 101.2 - - - - -6.3-6.3 ishares MSCI Malaysia Index Fund EWM 49.3 51.3 11.8 12.3 6.8 8.5 1.0 1.1 ishares MSCI Singapore Index Fund EWS 67.8 72.4 13.9 14.5 5.5 5.5 2.2 2.3 ishares MSCI South Korea Index Fund EWY 71.7 70.3 11.3 11.6 - - 10.0 10.1 ishares MSCI Taiwan Index Fund EWT 73.6 77.2 4.6 4.9 - - -2.1-2.0 Claymore/AlphaShares China Real Estate ETF TAO 71.9 81.1 - - - - -9.9-8.2 ishares FTSE China (HK Listed) Index Fund FCHI 48.5 54.9 - - - - -0.8 1.4 PowerShares Golden Dragon Halter USX China Portfolio PGJ 63.1 62.7 11.8 11.8 - - 11.6 11.7 PowerShares India Portfolio PIN 79.7 83.2 - - - - -7.5-6.1 ishares MSCI Thailand Index Fund THD 81.3 83.8 - - - - -6.4-6.1 Europe ishares S&P Europe 350 Index Fund IEV 28.9 34.2 3.6 3.7 - - 2.1 2.2 Vanguard European ETF VGK 31.3 32.1 - - - - 3.1 3.3 BLDRS Europe 100 ADR Index Fund ADRU 30.2 29.2 2.9 2.8 - - 9.0 9.0 PowerShares FTSE RAFI Europe Portfolio PEF 44.1 45.1 - - - - -9.3-10.0 Dow Jones STOXX 50 Fund FEU 28.3 32.7 2.6 2.7 - - 8.0 8.5 WisdomTree Europe Total Dividend Fund DEB 27.0 31.9 - - - - 0.3 0.6 WisdomTree Europe SmallCap Dividend Fund DFE 51.1 57.9 - - - - -2.9-2.3 ishares MSCI EMU Index Fund EZU 26.4 31.1 3.6 3.9 - - 1.3 1.4 Dow Jones EURO STOXX 50 Fund FEZ 20.8 25.2 2.4 2.5 - - 9.3 9.5 SPDR S&P Emerging Europe ETF GUR 79.2 82.5 - - - - -8.2-6.6 ishares MSCI Austria Index Fund EWO 57.7 61.3-0.5 0.0 11.0 10.7 6.5 6.6 ishares MSCI Belgium Index Fund EWK 49.4 54.4-3.8-3.5 1.0 1.2 4.2 4.3 ishares MSCI France Index Fund EWQ 27.1 31.6 4.1 4.3 1.4 1.7 7.9 8.0 ishares MSCI Germany Index Fund EWG 20.3 25.0 6.1 6.3 1.0 1.3 6.4 6.5 ishares MSCI Italy Index Fund EWI 22.0 25.7-1.9-1.8 1.2 1.2 7.3 7.3 ishares MSCI Netherlands Index Fund EWN 40.7 44.4 5.3 5.6 0.2 0.4 5.2 5.3 ishares MSCI Spain Index Fund EWP 32.9 37.8 9.7 9.9 8.0 8.1 13.0 13.1 ishares MSCI Sweden Index Fund EWD 55.0 63.8 5.2 5.5 1.6 1.7 8.7 8.8 ishares MSCI Switzerland Index Fund EWL 22.1 25.9 6.6 6.9 4.3 4.3 6.4 6.4 ishares MSCI United Kingdom Index Fund EWU 36.1 42.0 1.4 1.7 0.6 0.7 6.0 6.0 Market Vectors Russia ETF RSX 139.3 138.9 - - - - -6.8-7.0 ishares MSCI Turkey Index Fund TUR 102.8 107.7 - - - - 9.6 6.9 Source: Thomson as of 12/31/09 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. International Region & Country ETFs (Continued) Symbol Market NAV Market NAV Market NAV Market NAV Japan ishares MSCI Japan Index Fund EWJ 3.1 5.3-1.3-1.3-4.2-4.2-2.3-2.4 ishares S&P/TOPIX 150 Index Fund ITF 3.4 5.7-1.1-1.1 - - 2.0 1.9 ishares MSCI Japan Small Cap Index Fund SCJ 2.2 4.4 - - - - -10.0-8.2 PowerShares FTSE RAFI Japan Portfolio PJO 1.7 7.5 - - - - -10.4-10.7 SPDR Russell/Nomura Small Cap Japan ETF JSC 3.9 5.1 - - - - -7.4-7.4 SPDR Russell/Nomura Prime Japan ETF JPP 3.3 4.3 - - - - -8.5-9.0 WisdomTree Japan SmallCap Dividend Fund DFJ 0.9 3.2 - - - - -6.1-6.7 WisdomTree Japan Total Dividend Fund DXJ 1.2 3.5 - - - - -5.5-5.7 Latin America ishares S&P Latin America 40 Index Fund ILF 91.0 92.7 26.7 27.0 - - 26.2 26.2 SPDR S&P Emerging Latin America ETF GML 104.1 105.2 - - - - 13.8 14.7 ishares MSCI Brazil Index Fund EWZ 121.6 124.1 31.0 30.9 - - 18.2 18.0 ishares MSCI Mexico Index Fund EWW 53.8 55.7 16.0 16.4 12.5 12.6 14.5 14.6 ishares MSCI Chile Index Fund ECH 86.0 85.2 - - - - 6.7 7.1 North America ishares MSCI Canada Index Fund EWC 53.1 55.8 10.2 10.4 8.9 9.0 11.2 11.3 Middle East & Africa ishares MSCI South Africa Index Fund EZA 51.2 56.0 10.3 11.0 - - 19.9 20.5 ishares MSCI Israel Capped Index Fund EIS 81.2 79.9 - - - - 7.6 6.8 SPDR S&P Emerging Middle East & Africa ETF GAF 49.9 52.2 - - - - 3.6 4.2 Market Vectors - Africa Index ETF AFK 35.0 31.2 - - - - -22.4-21.0 Diversified International Sector & Industry ETFs SPDR Dow Jones International Real Estate ETF RWX 36.3 38.7 - - - - -13.2-13.1 Claymore/SMW Canadian Energy Income Index ETF ENY 60.4 63.7 - - - - -10.5-10.1 ishares S&P World ex-u.s. Property Index Fund WPS 37.3 42.1 - - - - -15.2-14.5 ishares FTSE EPRA/NAREIT Global Real Estate ex-u.s. IFGL 42.9 44.3 - - - - -16.7-17.5 ishares FTSE EPRA/NAREIT Europe Index Fund IFEU 34.1 39.6 - - - - -17.7-18.4 ishares FTSE EPRA/NAREIT Asia Index Fund IFAS 42.1 43.3 - - - - -17.5-17.9 SPDR S&P International Utilities Sector ETF IPU 5.7 5.4 - - - - -14.0-13.1 SPDR S&P International Health Care Sector ETF IRY 18.1 18.3 - - - - -3.1-1.8 SPDR S&P International Industrials Sector ETF IPN 40.9 36.9 - - - - -11.0-7.8 SPDR S&P International Consumer Discretionary Sector IPD 61.9 42.3 - - - - -2.9-0.5 SPDR S&P International Telecommunications Sector ETF IST 11.2 16.0 - - - - -3.4-4.6 SPDR S&P International Financial Sector ETF IPF 39.4 41.5 - - - - -14.3-9.6 SPDR S&P International Technology Sector ETF IPK 40.9 42.4 - - - - -9.8-7.7 SPDR S&P International Consumer Staples Sector ETF IPS 26.8 29.7 - - - - 1.5 4.2 SPDR S&P International Energy Sector ETF IPW 37.8 42.1 - - - - -9.0-8.2 SPDR S&P International Materials Sector ETF IRV 61.1 62.7 - - - - -13.4-12.1 WisdomTree International Consumer Discretionary Secto DPC 35.6 38.3 - - - - -4.8-4.9 WisdomTree International Communications Sector Fund DGG 8.8 13.2 - - - - 1.9 2.0 WisdomTree International Energy Sector Fund DKA 33.8 36.9 - - - - 4.1 4.3 WisdomTree International Financial Sector Fund DRF 44.5 48.1 - - - - -9.6-9.3 WisdomTree International Health Care Sector Fund DBR 16.2 19.0 - - - - 1.2 1.4 WisdomTree International Industrial Sector Fund DDI 40.6 42.3 - - - - -0.4-0.3 WisdomTree International Real Estate Fund DRW 43.0 46.5 - - - - -18.0-17.6 WisdomTree International Technology Sector Fund DBT 26.6 26.7 - - - - -7.9-8.1 WisdomTree International Utilities Sector Fund DBU 1.3 3.8 - - - - 0.4 0.5 WisdomTree International Basic Materials Sector DBN 51.6 57.7 - - - - 6.1 6.3 WisdomTree International Consumer Staples Sector Fun DPN 34.3 35.1 - - - - 2.6 2.7 Global ETFs Global - Developed & Emerging ishares MSCI ACWI Index Fund ACWI 32.3 35.2 - - - - -8.2-8.0 Vanguard Total World Stock Index Fund VT 32.8 33.6 - - - - -7.8-8.0 WisdomTree Global Equity Income Fund DEW 29.3 34.0 - - - - -0.7-0.5 SPDR DJ Global Titans ETF DGT 23.1 23.4 0.1 0.1 - - -2.2-2.1 Claymore/Raymond James SB-1 Equity ETF RYJ 56.3 55.5 - - - - -4.6-1.1 ishares S&P Global Infrastructure Index Fund IGF 18.1 24.1 - - - - -14.6-13.9 SPDR/FTSE Macquarie Global Infrastructure 100 ETF GII 8.0 11.1 - - - - -2.8-2.4 Global Developed ishares S&P Global 100 Index Fund IOO 24.0 26.5 2.0 2.1 - - -0.2-0.2 ishares MSCI Kokusai Index Fund TOK 31.5 32.9 - - - - -12.0-13.0 Source: Thomson as of 12/31/09 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. Global Sector & Industry Symbol Market NAV Market NAV Market NAV Market NAV ishares S&P Global Consumer Discretionary Sector Inde RXI 37.5 40.5 - - - - -3.1-2.7 ishares S&P Global Energy Sector Index Fund IXC 24.7 26.3 9.9 9.9 - - 11.9 11.9 ishares S&P Global Financial Sector Index Fund IXG 31.7 35.0-5.1-4.9 - - 0.8 0.8 ishares S&P Global Healthcare Sector Index Fund IXJ 17.5 18.7 2.7 2.8 - - 1.8 1.8 ishares S&P Global Industrials Sector Index Fund EXI 25.9 26.6 - - - - -2.2-2.0 ishares S&P Global Materials Sector Index Fund MXI 60.4 64.6 - - - - 8.9 9.1 ishares S&P Global Consumer Staples Sector Index Fun KXI 21.7 22.8 - - - - 5.3 5.4 ishares S&P Global Technology Sector Index Fund IXN 52.4 53.6 2.2 2.3 - - 1.1 1.1 ishares S&P Global Telecomm Sector Index Fund IXP 11.3 14.4 3.6 3.9 - - 3.5 3.5 ishares S&P Global Utilities Sector Index Fund JXI 6.2 8.3 - - - - 1.5 1.7 Claymore S&P Global Water ETF CGW 31.5 31.4 - - - - -7.4-7.4 Market Vectors Agribusiness ETF MOO 58.7 59.1 - - - - 4.0 3.7 Market Vectors-Coal ETF KOL 144.7 149.1 - - - - -2.3-4.8 Global Alternative Energy ETF GEX 6.2 9.1 - - - - -16.6-16.4 Market Vectors Hard Assets Producers ETF HAP 42.5 45.4 - - - - -10.7-11.0 Market Vectors Nuclear Energy ETF NLR 17.3 19.5 - - - - -19.3-19.2 PowerShares Global Clean Energy Portfolio PBD 31.8 37.8 - - - - -15.1-15.1 PowerShares Global Water Portfolio PIO 39.0 41.9 - - - - -10.7-10.5 Claymore/Delta Global Shipping Index ETF SEA 27.6 29.0 - - - - -36.4-36.4 Claymore/Beacon Global Exchanges, Brokers & Asset Ma EXB 35.1 41.3 - - - - -19.4-19.0 Claymore/Beacon Global Timber Index ETF CUT 50.2 51.7 - - - - -12.9-13.8 Claymore/MAC Global Solar Energy Index ETF TAN 16.9 21.3 - - - - -42.7-42.4 Cohen & Steers Global Realty Majors ETF GRI 34.1 32.6 - - - - -20.5-19.8 First Trust ISE Global Engineering and Construction Inde FLM 23.5 25.4 - - - - 25.5 24.6 Market Vectors-Gaming ETF BJK 36.2 37.5 - - - - -24.3-23.0 PowerShares Emerging Markets Infrastructure Portfolio PXR 87.0 91.5 - - - - 65.3 80.2 PowerShares Global Agriculture Portfolio PAGG 49.2 61.2 - - - - 1.3 7.1 PowerShares Global Biotech Portfolio PBTQ 7.7 7.5 - - - - -5.7-4.7 PowerShares Global Coal Portfolio PKOL 133.5 136.9 - - - - 23.9 20.9 PowerShares Global Gold and Precious Metals Portfolio PSAU 45.8 50.1 - - - - 32.2 31.4 PowerShares Global Progressive Transportation Portfolio PTRP 50.0 50.2 - - - - 10.4 9.4 PowerShares Global Steel Portfolio PSTL 71.0 73.5 - - - - -0.2-3.0 PowerShares Global Listed Private Equity Portfolio PSP 30.2 31.3 - - - - -23.6-23.5 First Trust FTSE EPRA/NAREIT Global Real Estate Index FFR 32.7 35.0 - - - - -15.5-15.9 First Trust Global Wind Energy Fund FAN 22.6 26.0 - - - - -35.9-35.7 ishares S&P Global Timber & Forestry Index Fund WOOD 36.7 40.0 - - - - -11.3-10.4 ishares S&P Global Clean Energy Fund ICLN 5.4 8.7 - - - - -43.2-42.6 ishares S&P Global Nuclear Energy Index Fund NUCL 37.3 39.4 - - - - -10.9-10.5 Market Vectors Solar Energy ETF KWT 10.1 10.2 - - - - -44.3-43.6 PowerShares Global Nuclear Energy Portfolio PKN 27.1 28.1 - - - - -16.8-16.0 PowerShares Global Wind Energy Portfolio PWND 31.9 35.1 - - - - -24.6-26.5 SPDR Dow Jones Global Real Estate ETF RWO 32.0 34.1 - - - - -20.4-20.2 Global Custom / Asset Allocation PowerShares Autonomic Growth NFA Global Asset Portfo PTO 22.8 26.5 - - - - -16.4-15.9 PowerShares Autonomic Balanced Growth NFA Global A PAO 22.6 21.9 - - - - -12.9-13.6 PowerShares Autonomic Balanced NFA Global Asset Po PCA 16.9 17.7 - - - - -10.9-11.1 US Fixed Income ETFs Broad Market ishares Barclays Aggregate Bond Fund AGG 3.0 5.1 4.7 4.8 - - 4.5 4.7 Vanguard Total Bond Market ETF BND 3.6 6.0 - - - - 6.4 6.3 Claymore/Dorchester - The Capital Markets Bond Index E UBD 11.2 5.8 - - - - 2.3 5.0 Claymore/Dorchester Micro-Term Fixed Income ETF ULQ 0.0-0.1 - - - - 0.9 0.9 SPDR Barclays Capital Aggregate Bond ETF LAG 3.6 5.1 - - - - 6.8 6.8 Source: Thomson as of 12/31/09 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. 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 0.3 0.1 - - - - 1.7 1.7 ishares Barclays Short Treasury Bond Fund SHV 0.2 0.2 - - - - 2.7 2.8 ishares Barclays 1-3 Year Treasury Bond Fund SHY 0.4 0.5 3.9 3.9 - - 3.3 3.3 ishares Barclays 7-10 Year Treasury Bond Fund IEF -6.6-6.4 5.1 5.0 - - 5.2 5.2 ishares Barclays 20+ Year Treasury Bond Fund TLT -21.8-21.5 4.8 4.8 - - 5.9 5.9 ishares Barclays 3-7 Year Treasury Bond Fund IEI -1.7-1.9 - - - - 7.1 7.0 SPDR Barclays Capital Intermediate Term Treasury ETF ITE -1.6-1.4 - - - - 6.5 6.5 ishares Barclays 10-20 Year Treasury Bond Fund TLH -9.1-8.4 - - - - 6.5 6.4 PowerShares 1-30 Year Laddered Treasury Portfolio PLW -11.1-11.0 - - - - 6.4 6.5 SPDR Barclays Capital Long Term Treasury ETF TLO -13.1-12.8 - - - - 6.7 6.9 Vanguard Extended Duration Treasury ETF EDV -36.3-36.7 - - - - -0.2-0.5 Treasury Inflation Protected Securities ishares Barclays TIPS Bond Fund TIP 9.0 11.4 4.5 4.5 - - 5.1 5.3 SPDR Barclays Capital TIPS ETF IPE 10.2 11.2 - - - - 6.9 7.0 Treasury / Investment Grade Vanguard Short-Term Bond ETF BSV 1.6 4.4 - - - - 6.0 5.9 ishares Barclays Intermediate Gov/Credit Bond Fund GVI 2.0 4.4 - - - - 6.1 6.0 Vanguard Intermediate-Term Bond ETF BIV 4.1 6.8 - - - - 6.9 6.8 ishares Barclays Government/Credit Bond Fund GBF 3.2 4.0 - - - - 6.1 5.9 Vanguard Long-Term Bond ETF BLV 0.6 1.8 - - - - 6.2 6.1 Federal Agency ishares Barclays Agency Bond Fund AGZ 1.5 1.5 - - - - 4.0 4.3 Mortgage ishares Barclays MBS Bond Fund MBB 4.7 5.3 - - - - 6.4 6.3 Corporate Investment Grade iboxx $ Investment Grade Corporate Bond Fund LQD 8.6 12.1 4.0 4.0 - - 5.5 5.5 ishares Barclays 1-3 Year Credit Bond Fund CSJ 7.2 10.7 - - - - 5.7 5.4 ishares Barclays Intermediate Credit Bond Fund CIU 12.8 14.7 - - - - 6.1 5.8 ishares Barclays Credit Bond Fund CFT 11.2 14.2 - - - - 5.5 5.4 High Yield ishares iboxx $ High Yield Corporate Bond Fund HYG 28.8 40.7 - - - - 3.0 2.9 PowerShares High Yield Corporate Bond Portfolio PHB 23.7 32.8 - - - - -6.2-5.1 SPDR Barclays Capital High Yield Bond ETF JNK 37.6 50.6 - - - - 2.2 2.8 Preferred Income ETFs ishares S&P U.S. Preferred Stock Index Fund PFF 38.8 39.4 - - - - -2.7-2.7 PowerShares Preferred Portfolio PGX 19.7 19.4 - - - - -11.4-11.4 PowerShares Financial Preferred Portfolio PGF 38.5 40.7 - - - - -5.5-5.4 Municipal Income PowerShares VRDO Tax-Free Weekly Portfolio PVI 1.0 1.2 - - - - 2.4 2.4 ishares S&P Short Term National Municipal Bond Fund SUB 4.2 4.3 - - - - 5.6 5.7 SPDR Barclays Capital Short Term Municipal Bond ETF SHM 4.2 5.2 - - - - 5.7 5.6 ishares S&P National Municipal Bond Fund MUB 7.1 10.6 - - - - 4.4 4.6 SPDR Barclays Capital Municipal Bond ETF TFI 10.0 10.5 - - - - 5.1 5.0 Market Vectors Short Municipal ETF SMB 7.9 6.7 - - - - 4.8 5.0 Market Vectors Intermediate Municipal Index ETF ITM 10.7 10.8 - - - - 6.2 6.1 Market Vectors Long Municipal Index ETF MLN 22.0 18.0 - - - - -0.3-0.5 PowerShares Insured Municipal Bond Portfolio PZA 17.6 18.1 - - - - 2.2 2.5 ishares S&P California Municipal Bond Fund ETF CMF 8.2 10.2 - - - - 4.7 4.7 PowerShares Insured California Municipal Bond Portfolio PWZ 14.8 15.6 - - - - 1.7 2.1 SPDR Barclays Capital California Municipal Bond ETF CXA 10.2 12.3 - - - - 4.1 4.5 ishares S&P New York Municipal Bond Fund ETF NYF 9.0 11.6 - - - - 5.1 5.0 PowerShares Insured New York Municipal Bond Portfolio PZT 17.5 17.4 - - - - 1.3 1.5 SPDR Barclays Capital New York Municipal Bond ETF INY 14.2 12.6 - - - - 4.5 5.0 International Developed Fixed Income SPDR Barclays Capital International Treasury Bond ETF BWX 5.4 6.5 - - - - 6.5 6.9 SPDR DB International Government Inflation-Protected B WIP 17.1 18.5 - - - - -2.7-2.7 International Emg. Mkts. Fixed Income ishares JPMorgan USD Emerging Markets Bond Fund EMB 15.5 27.2 - - - - 6.5 6.1 PowerShares Emerging Markets Sovereign Debt Portfolio PCY 35.7 33.2 - - - - 6.6 7.0 Source: Thomson as of 12/31/09 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. Commodity ETFs Symbol Market NAV Market NAV Market NAV Market NAV ishares GSCI Commodity Indexed Trust GSG 11.2 15.1 - - - - -12.0-12.1 GreenHaven Continous Commodity Index Fund GCC 20.1 19.6 - - - - -8.3-7.6 PowerShares DB Commodity Index Tracking Fund DBC 16.2 15.1 - - - - 2.5 3.0 PowerShares DB Agriculture Fund DBA 1.0 1.9 - - - - 3.0 3.2 PowerShares DB Oil Fund DBO 42.9 35.7 - - - - 6.0 6.0 United States Natural Gas Fund UNG -56.5-56.7 - - - - -45.5-45.4 United States Oil Fund USO 18.7 14.1 - - - - -13.9-14.0 PowerShares DB Base Metals Fund DBB 88.9 88.6 - - - - 0.5 0.4 PowerShares DB Energy Fund DBE 30.4 24.8 - - - - 4.5 3.9 PowerShares DB Gold Fund DGL 22.0 22.0 - - - - 19.5 20.1 PowerShares DB Precious Metals Fund DBP 26.6 26.6 - - - - 17.8 17.7 PowerShares DB Silver Fund DBS 47.1 48.1 - - - - 9.4 9.4 United States Gasoline Fund LP UGA 88.0 80.2 - - - - -17.0-17.3 United States Heating Oil Fund LP UHN 27.9 25.5 - - - - -31.0-30.1 United States 12 Month Oil Fund LP USL 35.4 29.2 - - - - -12.8-12.9 Currency ETFs PowerShares DB G10 Currency Harvest Fund DBV 21.2 20.6 - - - - -0.5-0.4 PowerShares DB US Dollar Index Bearish Fund UDN 5.2 5.4 - - - - 4.3 4.3 PowerShares DB US Dollar Index Bullish Fund UUP -6.5-6.8 - - - - -2.4-2.4 Source: Thomson as of 12/31/09 30
Disclosure Section The information and opinions in Morgan Stanley Research were prepared by Morgan Stanley & Co. Incorporated, and/or Morgan Stanley C.T.V.M. S.A. and their affiliates (collectively, "Morgan Stanley"). For important disclosures, stock price charts and equity rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Website at www.morganstanley.com/researchdisclosures, or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY, 10036 USA. For important disclosures, stock price charts and rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Website at www.morganstanley.com/researchdisclosures, or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Equity Research Management), New York, NY, 10036 USA. 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. Global Research Conflict Management Policy Morgan Stanley Research has been published in accordance with our conflict management policy, which is available at www.morganstanley.com/institutional/research/conflictpolicies. Important US Regulatory Disclosures on Subject Companies The following analyst or strategist (or a household member) owns securities (or related derivatives) in a company that he or she covers or recommends in Morgan Stanley Research: Dominic Maister - Vanguard Dividend Appreciation VIPERs (common or preferred stock), Vanguard Emerging Markets VIPERs (common or preferred stock), Vanguard FTSE All-World (common or preferred stock); David Perlman - Total Stock Mkt VIPERs (common or preferred stock), Vanguard Total World Stock Index (common or preferred stock). Morgan Stanley policy prohibits research analysts, strategists and research associates from investing in securities in their sub industry as defined by the Global Industry Classification Standard ("GICS," which was developed by and is the exclusive property of MSCI and S&P). Analysts may nevertheless own such securities to the extent acquired under a prior policy or in a merger, fund distribution or other involuntary acquisition. As of January 29, 2010, Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: BlackRock Global Energy Resource Trust, BlackRock Global Real Assets Equity Trust, 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, ING Global Equity Dividend & Premium Opportunity F, NFJ Dividend, Interest & Premium Strategy Fund, Nuveen Equity Premium Opportunity Fund. 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 10-20 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 2000+ 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
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 10-20 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 2000+ 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
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 10-20 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 2000+ 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 10-20 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
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. The equity research analysts or strategists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues. The fixed income research analysts or strategists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues (which include fixed income trading and capital markets profitability or revenues), client feedback and competitive factors. Fixed Income Research analysts' or strategists' compensation is not linked to investment banking or capital markets transactions performed by Morgan Stanley or the profitability or revenues of particular trading desks. Morgan Stanley and its affiliates do business that relates to companies/instruments covered in Morgan Stanley Research, including market making, providing liquidity and specialized trading, risk arbitrage and other proprietary trading, fund management, commercial banking, extension of credit, investment services and investment banking. Morgan Stanley sells to and buys from customers the securities/instruments of companies covered in Morgan Stanley Research on a principal basis. Morgan Stanley may have a position in the debt of the Company or instruments discussed in this report. Certain disclosures listed above are also for compliance with applicable regulations in non-us jurisdictions. Morgan Stanley and others associated with it may make markets or specialize in, have positions in and effect transactions in securities of ETFs mentioned and may also perform or seek to perform brokerage and other services for those ETFs and may enter into transactions with them. Morgan Stanley participates in the creation and redemption of the securities covered in this report and as an authorized participant or otherwise, acquires such securities from the issuers for the purpose of resale. MSCI, an affiliate of Morgan Stanley, receives licensing fees from Barclays Global Investors, Vanguard and State Street with respect to a number of ETFs based on MSCI indices. Investors should consider the investment objectives, risks, and charges and expenses of each investment company carefully before investing. The prospectuses and product descriptions contain this and other information about the investment company and should be read carefully before investing. Investors may obtain product descriptions and prospectuses for the ETFs mentioned in this report from the ETF distributor, their brokers or the exchange upon which the particular ETF is listed. Morgan Stanley is an authorized participant for one or more ETFs of the following fund families: BlackRock Fund Advisors, 1-800-474-2737; Claymore Advisors, LLC, 1-630-505-3700; Merrill Lynch & Co., 1-212-449-1000; PowerShares Capital, 1-800- 843-2639; Rydex Investments, 1-800-820-0888; State Street Global Advisors, 1-866-787-2257; The Vanguard Group, 1-866-499-8473; Van Eck Associates, 1-212-687-5200; WisdomTree, 1-212-801-2081.. ETFs are redeemable only in Creation Unit size through an Authorized Participant. STOCK RATINGS Morgan Stanley uses a relative rating system using terms such as Overweight, Equal-weight, Not-Rated or Underweight (see definitions below). Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold and sell. Investors should carefully read the definitions of all ratings used in Morgan Stanley Research. In addition, since Morgan Stanley Research contains more complete information concerning the analyst's views, investors should carefully read Morgan Stanley Research, in its entirety, and not infer the contents from the rating alone. In any case, ratings (or research) should not be used or relied upon as investment advice. An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations. Global Stock Ratings Distribution (as of January 31, 2010) For disclosure purposes only (in accordance with NASD and NYSE requirements), we include the category headings of Buy, Hold, and Sell alongside our ratings of Overweight, Equal-weight, Not-Rated and Underweight. Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. 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 999 40% 296 41% 30% Equal-weight/Hold 1088 43% 333 46% 31% Not-Rated/Hold 21 1% 4 1% 19% Underweight/Sell 396 16% 90 12% 23% Total 2,504 723 34
Data include common stock and ADRs currently assigned ratings. An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations. Investment Banking Clients are companies from whom Morgan Stanley or an affiliate received investment banking compensation in the last 12 months. Analyst Stock Ratings Overweight (O). The stock's total return is expected to exceed the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Equal-weight (E). The stock's total return is expected to be in line with the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Not-Rated (NR). Currently the analyst does not have adequate conviction about the stock's total return relative to the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Underweight (U). The stock's total return is expected to be below the average total return of the analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months. Unless otherwise specified, the time frame for price targets included in Morgan Stanley Research is 12 to 18 months. Analyst Industry Views Attractive (A): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be attractive vs. the relevant broad market benchmark, as indicated below. In-Line (I): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be in line with the relevant broad market benchmark, as indicated below. Cautious (C): The analyst views the performance of his or her industry coverage universe over the next 12-18 months with caution vs. the relevant broad market benchmark, as indicated below. Benchmarks for each region are as follows: North America - S&P 500; Latin America - relevant MSCI country index or MSCI Latin America Index; Europe - MSCI Europe; Japan - TOPIX; Asia - relevant MSCI country index.. Important Disclosures for Morgan Stanley Smith Barney LLC Customers Citi Investment Research & Analysis (CIRA) research reports may be available about the companies or topics that are the subject of Morgan Stanley Research. Ask your Financial Advisor or use Research Center to view any available CIRA research reports in addition to Morgan Stanley research reports. Important disclosures regarding the relationship between the companies that are the subject of Morgan Stanley Research and Morgan Stanley Smith Barney LLC, Morgan Stanley and Citigroup Global Markets Inc. or any of their affiliates, are available on the Morgan Stanley Smith Barney disclosure website at www.morganstanleysmithbarney.com/researchdisclosures. For Morgan Stanley and Citigroup Global Markets, Inc. specific disclosures, you may refer to www.morganstanley.com/researchdisclosures and https://www.citigroupgeo.com/geopublic/disclosures/index_a.html. Each Morgan Stanley Equity Research report is reviewed and approved on behalf of Morgan Stanley Smith Barney LLC. This review and approval is conducted by the same person who reviews the Equity Research report on behalf of Morgan Stanley. This could create a conflict of interest. Other Important Disclosures Morgan Stanley produces an equity research product called a "Tactical Idea." Views contained in a "Tactical Idea" on a particular stock may be contrary to the recommendations or views expressed in research on the same stock. This may be the result of differing time horizons, methodologies, market events, or other factors. For all research available on a particular stock, please contact your sales representative or go to Client Link at www.morganstanley.com. For a discussion, if applicable, of the valuation methods and the risks related to any price targets, please refer to the latest relevant published research on these stocks. Morgan Stanley Research does not provide individually tailored investment advice. Morgan Stanley Research has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. The securities, instruments, or strategies discussed in Morgan Stanley Research may not be suitable for all investors, and certain investors may not be eligible to purchase or participate in some or all of them. Morgan Stanley Research is not an offer to buy or sell or the solicitation of an offer to buy or sell any security/instrument or to participate in any particular trading strategy. The "Important US Regulatory Disclosures on Subject Companies" section in Morgan Stanley Research lists all companies mentioned where Morgan Stanley owns 1% or more of a class of common equity securities of the companies. For all other companies mentioned in Morgan Stanley Research, Morgan Stanley may have an investment of less than 1% in securities/instruments or derivatives of securities/instruments of companies and may trade them in ways different from those discussed in Morgan Stanley Research. Employees of Morgan Stanley not involved in the preparation of Morgan Stanley Research may have investments in securities/instruments or derivatives of securities/instruments of companies mentioned and may trade them in ways different from those discussed in Morgan Stanley Research. Derivatives may be issued by Morgan Stanley or associated persons With the exception of information regarding Morgan Stanley, Morgan Stanley Research is based on public information. Morgan Stanley makes every effort to use reliable, comprehensive information, but we make no representation that it is accurate or complete. We have no obligation to tell you when opinions or information in Morgan Stanley Research change apart from when we intend to discontinue equity research coverage of a subject company. Facts and views presented in Morgan Stanley Research have not been reviewed by, and may not reflect information known to, professionals in other Morgan Stanley business areas, including investment banking personnel. Morgan Stanley Research personnel conduct site visits from time to time but are prohibited from accepting payment or reimbursement by the company of travel expenses for such visits. The value of and income from your investments may vary because of changes in interest rates, foreign exchange rates, default rates, prepayment rates, securities/instruments prices, market indexes, operational or financial conditions of companies or other factors. There may be time limitations on the exercise of options or other rights in securities/instruments transactions. Past performance is not necessarily a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. If provided, and unless otherwise stated, the closing price on the cover page is that of the primary exchange for the subject company's securities/instruments. Morgan Stanley may make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. To our readers in Taiwan: Information on securities/instruments that trade in Taiwan is distributed by Morgan Stanley Taiwan Limited ("MSTL"). Such information is for your reference only. Information on any securities/instruments issued by a company owned by the government of or incorporated in the PRC and listed in on the Stock Exchange of Hong Kong ("SEHK"), namely the H-shares, including the component company stocks of the Stock Exchange of Hong Kong ("SEHK")'s Hang Seng China Enterprise Index; or any securities/instruments issued by a company that is 30% or more directly- or indirectly-owned by the government of or a company incorporated in the PRC and traded on an exchange in Hong Kong or Macau, namely SEHK's Red Chip shares, including the component company of the SEHK's China-affiliated Corp Index is distributed only to Taiwan Securities Investment Trust Enterprises ("SITE"). The reader should independently evaluate the investment risks and is solely responsible for their investment decisions. Morgan Stanley Research may not be distributed to the public media or quoted or used by the public media without the express written consent of Morgan Stanley. Information on securities/instruments that do not trade in Taiwan is for informational purposes only and is not to be construed as a recommendation or a solicitation to trade in such securities/instruments. MSTL may not execute transactions for clients in these securities/instruments. To our readers in Hong Kong: Information is distributed in Hong Kong by and on behalf of, and is attributable to, Morgan Stanley Asia Limited as part of its regulated activities in Hong Kong. If you have any queries concerning Morgan Stanley Research, please contact our Hong Kong sales representatives. Morgan Stanley Research is disseminated in Japan by Morgan Stanley Japan Securities Co., Ltd.; in Hong Kong by Morgan Stanley Asia Limited (which accepts responsibility for its contents); in Singapore by Morgan Stanley Asia (Singapore) Pte. (Registration number 199206298Z) and/or Morgan Stanley Asia (Singapore) Securities Pte Ltd (Registration number 200008434H), regulated by the Monetary Authority of Singapore, which accepts responsibility for its contents; in Australia to "wholesale clients" within the meaning of the Australian Corporations Act by Morgan Stanley Australia Limited A.B.N. 67 003 734 576, holder of Australian financial services license No. 233742, which accepts responsibility for its contents; in Australia to "wholesale clients" and "retail clients" within the meaning of the Australian Corporations Act by Morgan Stanley Smith Barney Australia Pty Ltd (A.B.N. 19 009 145 555, holder of Australian financial services license No. 240813, which accepts responsibility for its 35
contents; in Korea by Morgan Stanley & Co International plc, Seoul Branch; in India by Morgan Stanley India Company Private Limited; in Canada by Morgan Stanley Canada Limited, which has approved of, and has agreed to take responsibility for, the contents of Morgan Stanley Research in Canada; in Germany by Morgan Stanley Bank AG, Frankfurt am Main and Morgan Stanley Private Wealth Management Limited, Niederlassung Deutschland, regulated by Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin); in Spain by Morgan Stanley, S.V., S.A., a Morgan Stanley group company, which is supervised by the Spanish Securities Markets Commission (CNMV) and states that Morgan Stanley Research has been written and distributed in accordance with the rules of conduct applicable to financial research as established under Spanish regulations; in the United States by Morgan Stanley & Co. Incorporated, which accepts responsibility for its contents. Morgan Stanley & Co. International plc, authorized and regulated by the Financial Services Authority, disseminates in the UK research that it has prepared, and approves solely for the purposes of section 21 of the Financial Services and Markets Act 2000, research which has been prepared by any of its affiliates. Morgan Stanley Private Wealth Management Limited, authorized and regulated by the Financial Services Authority, also disseminates Morgan Stanley Research in the UK. Private U.K. investors should obtain the advice of their Morgan Stanley & Co. International plc or Morgan Stanley Private Wealth Management representative about the investments concerned. RMB Morgan Stanley (Proprietary) Limited is a member of the JSE Limited and regulated by the Financial Services Board in South Africa. RMB Morgan Stanley (Proprietary) Limited is a joint venture owned equally by Morgan Stanley International Holdings Inc. and RMB Investment Advisory (Proprietary) Limited, which is wholly owned by FirstRand Limited. The information in Morgan Stanley Research is being communicated by Morgan Stanley & Co. International plc (DIFC Branch), regulated by the Dubai Financial Services Authority (the DFSA), and is directed at Professional Clients only, as defined by the DFSA. The financial products or financial services to which this research relates will only be made available to a customer who we are satisfied meets the regulatory criteria to be a Professional Client. The information in Morgan Stanley Research is being communicated by Morgan Stanley & Co. International plc (QFC Branch), regulated by the Qatar Financial Centre Regulatory Authority (the QFCRA), and is directed at business customers and market counterparties only and is not intended for Retail Customers as defined by the QFCRA. As required by the Capital Markets Board of Turkey, investment information, comments and recommendations stated here, are not within the scope of investment advisory activity. Investment advisory service is provided in accordance with a contract of engagement on investment advisory concluded between brokerage houses, portfolio management companies, non-deposit banks and clients. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial status, risk and return preferences. For this reason, to make an investment decision by relying solely to this information stated here may not bring about outcomes that fit your expectations. The trademarks and service marks contained in Morgan Stanley Research are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. The Global Industry Classification Standard ("GICS") was developed by and is the exclusive property of MSCI and S&P. Morgan Stanley Research, or any portion thereof may not be reprinted, sold or redistributed without the written consent of Morgan Stanley. Morgan Stanley Research is disseminated and available primarily electronically, and, in some cases, in printed form. Additional information on recommended securities/instruments is available on request. 36
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) $107.13 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) $100.87 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) $101.58 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) $16.39 2010 Morgan Stanley
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) $120.52 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
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
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) $129.08 (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) $108.13 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
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) $103.92 (AGG.P) ishares COMEX Gold Trust (IAU.P) NA (01/28/2005) $107.21 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
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) 6,889.75 (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) $108.43 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
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 2000+ 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
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
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
4 MORGAN STANLEY RESEARCH The Americas 1585 Broadway New York, NY 10036-8293 United States Tel: +1 (1) 212 761 4000 Europe 25 Cabot Square, Canary Wharf London E14 4QA United Kingdom Tel: +44 (0) 20 7 425 8000 Japan 4-20-3 Ebisu, Shibuya-ku Tokyo 150-6008 Japan Tel: +81 (0) 3 5424 5000 Asia/Pacific Three Exchange Square Central Hong Kong Tel: +852 2848 5200 (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) $104.09 (CSJ.P) ishares Barclays 1-3 Year Treasury NA (08/27/2002) $83.5 Bond Fund (SHY.P) ishares Barclays 10-20 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) $111.66 (IEI.P) ishares Barclays 7-10 Year NA (08/27/2002) $89.91 Treasury Bond Fund (IEF.P) ishares Barclays Agency Bond NA () $108.17 Fund (AGZ.P) ishares Barclays Credit Bond NA (06/20/2007) $101.04 (CFT.P) ishares Barclays NA (06/20/2007) $104.95 Government/Credit (GBF.P) ishares Barclays Intermediate NA (06/20/2007) $103.09 (CIU.P) ishares Barclays Intermediate NA (06/20/2007) $105.95 Gov/Credit (GVI.P) ishares Barclays MBS Bond Fund NA (06/20/2007) $107.04 (MBB.P) ishares Barclays Short Treasury NA (06/20/2007) $110.2 (SHV.P) ishares Barclays TIPS Bond Fund NA (01/22/2004) $104.01 (TIP.P) ishares JPMorgan USD Emerging NA (05/22/2008) $100.36 Markets Bond Fund (EMB.P) ishares S&P National Municipal NA (05/22/2008) $103.36 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) $103.77 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) $156.45 Sterling Trust (FXB.P) Currency Shares Canadian Dollar NA (08/29/2006) $94.78 Trust (FXC.P) Currency Shares Japanese NA (06/20/2007) $110.59 (FXY.P) Currency Shares Mexican Peso NA (08/29/2006) $77.27 Trust (FXM.P) Currency Shares Swedish Krona NA (08/29/2006) $137.83 Trust (FXS.P) Currency Swiss Franc Trust NA (08/29/2006) $92.88 (FXF.P) Euro Currency Trust (FXE.P) NA (08/25/2006) $136.59 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.