be inspired to build with ishares Core funds.
Put your cash to work with ishares Core funds. WHY DO WE HOLD CASH? The top 3 reasons Canadians hold cash deposits, savings accounts or money markets 46% cash is liquid I can always take it out easily 33% it s convenient 24% I don t want to risk losing money Source: BlackRock Global Annual Investor Pulse Survey, August 2015 Canadians do love holding on to their loonies. BlackRock s Global Investor Pulse Survey 1, which polled more than 2,000 Canadians, found that a whopping 60% of their wealth is held in cash. When asked why, the two most common reasons were flexibility they want to keep their options open and safety. While those may seem like sound reasons, that cash isn t doing as much as it could. Investing can be a way to build wealth over the long-term, and exchange traded funds (ETFs) can be a great place to start. Like mutual funds, ETFs represent a diversified collection of stocks or bonds. The big difference is flexibility. ETFs can be traded like individual stocks. That flexibility means an investor can use ETFs to create a well-diversified, balanced portfolio to potentially grow wealth over time while easily adjusting to market conditions, life stage or changing objectives. So, depending on what you are investing for a wedding, a child s education or your retirement your investment plan can be a good fit with your lifestyle. For even greater flexibility, BlackRock Canada launched the ishares Core suite of funds for Canadian investors. This group of 14 low-cost funds provides comprehensive exposure to the asset classes Canadians turn to most 2. ishares Core provides you the essential building blocks you need to create a solid, well-balanced foundation for your portfolio. But perhaps best of all, ishares Core funds are cost-efficient. For about 1/10th the cost of an average mutual fund portfolio 3, you can be inspired to build more while spending less. Sources: (1) BlackRock Global Annual Investor Pulse Survey, August 2015. (2) The ishares Core funds generally correlate to the asset classes that account for approximately 80% of all Canadian mutual fund exposures held by Canadian Investors (Source: IFIC, December, 2014). (3) *Based on a comparison of the average management expense ratio (MER) of the Series F Global Equity Balanced fund category in Canada of 1.33% (Source: Investor Economics, 2013 MER data) and a model portfolio consisting of a weighting of one third in each of XAW, ishares Core MSCI All Country World ex Canada Index ETF; XIC, ishares Core S&P/TSX Capped Composite Index ETF and XQB, ishares Core High Quality Canadian Bond Index ETF. 2 be inspired to build with ishares Core funds.
A closer look at the ishares Core. The ishares Core offers 14 funds across four distinct asset classes. These include domestic, U.S. and international stocks, as well as bonds. So you can easily assemble a diverse group of ETFs and put them at the heart of a well-made portfolio. The right mix of funds can help an investor achieve their long-term objectives. And, while constructing the right asset mix is important, it doesn t need to be complicated. ishares Core offers low-cost, efficient solutions that provide the essential building blocks to create a well-diversified portfolio based on your individual needs. ishares provide the essential building blocks of any portfolio to help you keep more of what you earn and build more with what you have. * Source: BlackRock. Projected MER. Projected MERs are estimated based on adding an assumed blended HST rate of 10% to the management fee of each fund. ** Source: Investor Economics. Series F asset weighted MERs for each fund s Canadian Investment Fund Standards Committee Category (CIFSC) based on 2014 data. Effective January 12, 2016 the fund reduced its management fee from 0.10% to 0.07%. ishares 3
Strengthen your portfolio. Lower your costs. For most investors working towards a financial goal, flexibility and managing costs are top of mind. If you re building a portfolio for the long-term, you want to ensure your foundation s strong and your fees are minimal. ishares ETFs have low MERs (which include a fund s management fees and operating expenses). Lowering this expense can help you save more by spending less on your investments over time. ishares Core allows you to build an ETF portfolio for about 1/10th* the price of a typical mutual fund portfolio. Assuming a 5% return on both choices, saving on fees can earn you more. Based on a $250,000 investment returning 5% for net of management expense ratios (MER) and assuming a comparison of (i) the average MER of the Series F Global Equity Balanced fund category in Canada of 1.16% (Source: Investor Economics, 2014 MER data) and (ii) a model portfolio consisting of a weighting of one third in each of XAW, XIC and XQB with MERs as follows: XAW (0.21%), XIC (0.06%) and XQB (0.13%). *Based on a comparison of the average management expense ratio (MER) of the Series F Global Equity Balanced fund category in Canada of 1.33% (Source: Investor Economics, 2013 MER data) and a model portfolio consisting of a weighting of one third in each of XAW, ishares Core MSCI All Country World ex Canada Index ETF; XIC, ishares Core S&P/TSX Capped Composite Index ETF and XQB, ishares Core High Quality Canadian Bond Index ETF. 4 be inspired to build with ishares Core funds.
Create a low-cost, diversified and flexible investment portfolio. Maximize diversification with the right combination of exposures using a handful of ishares Core funds. Using the ishares Core Tool you can explore sample portfolios that demonstrate how you can build the right foundation to support your investment objectives. Depending on your risk tolerance and time horizon, you can select a combination of ETFs that provide flexibility, diversification and lower your costs. For investors looking to maintain stability and income with bond ETFs while retaining growth potential with a small portion allocated to stock ETFs. For investors wanting to preserve assets and decrease volatility with bond ETFs, while seeking growth over time with a greater emphasis on stock ETFs. For investors looking to increase growth, a higher proportion of stock ETFs may offer greater long-term potential over time. 65 % TOTAL BONDS 35 % TOTAL STOCKS 44 % TOTAL BONDS 56 % TOTAL STOCKS 25 % TOTAL BONDS 75 % TOTAL STOCKS Visit the Core Portfolio Tool at ishares.ca/coretool to explore all sample portfolios. ishares 5
Once you have a solid foundation in place, you can build upon it. A solid, diversified core at the heart of your portfolio covers the essentials, but there s a world of opportunity beyond it. With more than 100 ishares funds to choose from, you have the flexibility to prepare for inflation, combat market volatility, seek income or diversify globally with precision. These specialized strategies are designed to help deliver an array of outcomes, no matter what your investment goals are. 2016 investment themes Build a more efficient portfolio around a more efficient core. SEEK ENHANCED RETURNS BE THOUGHTFUL ABOUT BONDS MANAGE MARKET VOLATILITY 6 be inspired to build with ishares Core funds.
A trusted ETF leader that goes beyond ETFs. ishares is a global leader in ETFs with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than US$1 trillion in assets under management, of which over $45 billion is held by Canadians 1. ishares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. ishares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm 2. Learn more at ishares.ca Sources: (1) BlackRock as at 12/31/15, includes Canadian domiciled AUM and US-listed AUM held by Canadians; (2) Based on US$4.645 trillion in AUM as of 12/31/15. ishares 7
Please call or visit us online for more information about ETFs. 1-866-iSHARES (1-866-474-2737) www.ishares.ca ishares Funds are managed by BlackRock Asset Management Canada Limited. Commissions, management fees and expenses all may be associated with investing in ishares Funds. Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or operational charges or income taxes payable by any securityholder that would have reduced returns. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. Prior to November 15, 2005, the investment objective of each of XIC and XSP was to replicate, to the extent possible, the performance of, respectively: the S&P /TSX 60 Capped Index; and the S&P 500 Index. Consequently, performance prior to November 15, 2005 for XIC and XSP may have been materially different than it would have been under the current respective investment objectives. Inception date is the date of the first subscription for units of the fund and the first calculation of net asset value per unit.standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ). Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ). TSX is a registered trademark of TSX Inc. ( TSX ). All of the foregoing trademarks have been licensed to S&P Dow Jones Indices LLC and sublicensed for certain purposes to BlackRock Institutional Trust Company, N.A. ( BTC ), which in turn has sub-licensed these marks to its affiliate, BlackRock Asset Management Canada Limited ( BlackRock Canada ), on behalf of the applicable fund(s). The index is a product of S&P Dow Jones Indices LLC, and has been licensed for use by BTC and by extension, BlackRock Canada and the applicable fund(s). The funds are not sponsored,endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, any of their respective affiliates (collectively known as S&P Dow Jones Indices ) or TSX, or any of their respective affiliates. Neither S&P Dow Jones Indices nor TSX make any representations regarding the advisability of investing in such funds.xqb, XSH, XLB and XSQ are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited ( FTSE ), by the London Stock Exchange Group companies ( LSEG ), or by Research Affiliates, LLC ( RA ) (collectively the Licensor Parties ), and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE TMX Canada Liquid Universe Capped Bond Index, FTSE TMX Canada Universe + Maple Short Term Corporate Bond Index, FTSE TMX Canada Long Term Bond Index, FTSE TMX Canada Liquid Short Term Capped Bond Index (the Index ) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE in conjunction with RA. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein. FTSE is a trade mark of LSEG. The trade names Fundamental Index and RAFI are registered trademarks of RA. MSCI and EAFE are trademarks of MSCI, Inc. ( MSCI ). XEF, XEC, XAW and XFH are permitted to use the MSCI mark and, as applicable, the EAFE mark pursuant to a license agreement between MSCI and BlackRock Institutional Trust Company, N.A., relating to, among other things, the license granted to BlackRock Institutional Trust Company, N.A. to use the indices. BlackRock Institutional Trust Company, N.A. has sublicensed the use of these trademarks to BlackRock Asset Management Canada Limited. XEF, XEC, XAW and XFH are not sponsored, endorsed, sold or promoted by MSCI and MSCI makes no representation, condition or warranty regarding the advisability of investing in XEF, XEC, XAW and XFH. 2016 BlackRock Asset Management Canada Limited. All rights reserved. ishares and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission. All other trademarks, service marks or registered trademarks are the property of their respective owners. 378-12/15 isc-2153-0216 BlackRock Asset Management Canada Limited, 161 Bay Street, Suite 2500, P.O. Box 614, Toronto, Ontario M5J 2S1