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Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
INTRODUCTION
What has made iShares ETFs one of the fastest growing investment vehicles? Why have they posted 10 years of rising growth, in both bull and bear markets? How do they work? And how can you make them work for you? Well, youre about to find out.
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
LIQUIDITY
Many investors think that you can determine the liquidity of iShares ETFs by simply observing their trading volume. But a thinly traded iShares Fund is not necessarily a fund with low liquidity. In fact, iShares ETFs are as liquid as their underlying stocks or bonds. Why? Because when demand increases on the secondary market for an iShares Fund with low trading volume, Authorized Participants use the creation and redemption process to simply create additional shares and inject them into the market. That means that the liquidity of iShares ETFs is essentially unlimited.
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
FPO
iShares ETFs and mutual funds each hold baskets of securities. iShares ETFs trade on exchanges intraday at market price, which may be greater or less than net asset value. Shares of iShares ETFs are not individually redeemed from the fund. Transactions in shares of iShares ETFs result in brokerage commissions and generate tax consequences. iShares ETFs seek to track a market index, before fees and expenses. Mutual funds are accessed directly from the fund company or through a select broker, pricing generally occurs once a day, and investors buy or redeem shares at the end-of-day net asset value, less any applicable fees. Some mutual funds may charge sales loads or redemption fees. Active mutual funds seek to outperform their benchmark while the goal of index mutual funds is to track their index. Consequently, active funds typically charge more than index-linked products for the increased trading and research expenses that may be incurred. Mutual funds and iShares ETFs are obliged to distribute portfolio gains to shareholders.
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
TAX EFFICIENCY
There are two reasons why iShares ETFs are tax efficient. First, because all iShares ETFs are designed to track market indices, they normally experience less turnover than actively managed funds. This decreases the likelihood of taxes being incurred. Second, the unique hybrid nature of iShares ETFs protects shareholders from the actions of other shareholders. Buyers and sellers interact directly with one another on an exchange, not with the fund itself. This gives investors greater control when it comes to managing their exposure to capital gainstheyre taxed based on their own actions, not the actions of other shareholders. Mutual funds and iShares Funds are obliged to distribute portfolio grains to shareholders. Certain traditional mutual funds can be tax efficient as well.
iShares ETFs and mutual funds each hold baskets of securities. iShares ETFs trade on exchanges intraday at market price, which may be greater or less than net asset value. Shares of iShares ETFs are not individually redeemed from the fund. Transactions in shares of iShares ETFs result in brokerage commissions and generate tax consequences. iShares ETFs seek to track a market index, before fees and expenses. Mutual funds are accessed directly from the fund company or through a select broker, pricing generally occurs once a day, and investors buy or redeem shares at the end-of-day net asset value, less any applicable fees. Some mutual funds may charge sales loads or redemption fees. Active mutual funds seek to outperform their benchmark while the goal of index mutual funds is to track their index. Consequently, active funds typically charge more than index-linked products for the increased trading and research expenses that may be incurred. Mutual funds and iShares ETFs are obliged to distribute portfolio gains to shareholders.
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
TRANSPARENCY
Because iShares ETFs are highly transparent, investors always know exactly what they own. Thats because holdings are published online and refreshed every 15 seconds. Most mutual funds only disclose the securities theyre holding once every three months. In addition, ETF fund pricing is available throughout the trading day. And the costs associated with buying, selling, and owning iShares ETFs are explicit. And that includes commissions, bid/ask spreads and impact costs. iShares ETFs have nothing to hide. Which can give you the clarity you need to help keep your investment strategies on target. Due to MSCI license restrictions, holding for MSCI benchmarked funds are updated monthly.
iShares ETFs and mutual funds each hold baskets of securities. iShares ETFs trade on exchanges intraday at market price, which may be greater or less than net asset value. Shares of iShares ETFs are not individually redeemed from the fund. Transactions in shares of iShares ETFs result in brokerage commissions and generate tax consequences. iShares ETFs seek to track a market index, before fees and expenses. Mutual funds are accessed directly from the fund company or through a select broker, pricing generally occurs once a day, and investors buy or redeem shares at the end-of-day net asset value, less any applicable fees. Some mutual funds may charge sales loads or redemption fees. Active mutual funds seek to outperform their benchmark while the goal of index mutual funds is to track their index. Consequently, active funds typically charge more than index-linked products for the increased trading and research expenses that may be incurred. Mutual funds and iShares ETFs are obliged to distribute portfolio gains to shareholders.
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
MODULAR INVESTING
iShares ETFs are highly modular with over 150 different funds to choose from, and even more on the way. This large, extended family of funds gives you the opportunity to build your portfolio around as many asset classes as you need: Domestic or international, value or growth, large-cap or small, whole sectors or specific industries. Even funds that specialize in fixedincome markets and alternatives.
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
INVESTMENT STRATEGIES
The flexibility and breadth of the iShares family allows investors to utilize ETFs within a variety of common investment strategies. Short-term strategies such as cash equitization, where investors put idle cash to work in times of transition. Tactical strategies such as sector rotation, where investors express their views by overweighting or underweighting sectors based on research. Or strategic applications of ETFs, such as the core/satellite strategy, which blends core index-based holdings with "satellite" allocations to actively managed securities or products. The information provided is not intended to be a complete analysis of every material fact respecting any strategy and has been presented for educational purposes only. There is no guarantee that any strategies discussed will be effective.
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209
Call 1-800-iShares to request a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal. The iShares Funds (Funds) are distributed by SEI Investments
Distribution Co. (SEI). 2009 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares is a registered trademark of BlackRock Institutional Trust Company, N.A. iS-0205-0209