Etfl Industryhilight Jan12

ETP Landscape
Industry Highlights
January 2012
The opinions expressed are as of January 31, 2012 and may change as subsequent conditions vary.
FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.
Table of contents
The ETP Landscape: Monthly Highlights provides a snapshot of ETP1 Assets Under Management (AUM) and asset flows2 at a combined global level and various regional levels as of the most recent month-end period. All currency values are denominated in US dollars. Our terminology has changed from prior reports in that ETP is now a catch-all term for any portfolio exposure product that trades on an exchange.
I.
Global Global ETP overview
2 3 9 12 15 22 32 36 40 44 48
Top ETPs
Top ETP providers II. III. IV. V. VI. VII. United States Europe Asia Pacific (ex-Japan) Japan Latin America Canada
VIII. Middle East and Africa
1.
ETP = Exchange Traded Product. ETP is a catch-all term for any portfolio exposure product that trades on an exchange.
Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America . In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end January 2012 or the most recent period available.
Global
Global ETP overview

Global results at a glance: As at January 2012 (US$bn) Month-end AUM Monthly NNA # of ETPs
Jan 2012 flow highlights (US$bn):
Oct-11 29.1 7.7 5.3 25.0 18.1 4.2 25.4 18.0 10.9 13.9 0 10 20 30 40
Jan-12 1,651 34.1 4,274
Dec-11 1,525 15.8 4,221
Jan-11 1,499 13.9 3,574

Jan-12 Dec-11 Nov-11
Monthly global NNA (US$bn)

34.1 15.8
(0.1)
January flows surge to new record: Ebbing concerns about the economy in Europe and the FOMCs outlook for an extended period of ultra-low interest rates in the US helped propel the ETP industry to its best January ever with $34.1bn of net inflows. January flows have historically been low or even negative in the wake of cyclically high flows in December. Inflows of $15.8bn in December 2011 were strong and January 2012 bucked normal cyclical trends to gather the highest level of new assets since September 2010. Inflows are up 144% vs. January 2011 which had previously been the best January on record with inflows of $13.9bn. Flows were also up 116% vs. December 2011 inflows of $15.8bn. The last time that Januarys inflows eclipsed Decembers was in 1994. Equity and fixed income lead: Equity ETP inflows rose to $22.6bn, a level not seen since October 2011 while fixed income ETPs set a new global record, attracting $9.1bn1 which eclipsed the previous record for monthly fixed income inflows of $6.73bn1 set in January, 2009. That peak month had been recently challenged in September 2011 when fixed income flows reached $6.72bn, a nearly identical total. Seasonal factors didnt hold: Industry providers generally attribute the strong flows in December to portfolio rebalancing activities heading into year-end along with investors using ETPs for tax loss harvesting in the United States. These December seasonal factors are expected to consequently dampen January flows, which didnt occur in 2012. AUM up 8.3% for the month: January 2012 month-end AUM of $1,651bn is up $126bn or 8.3% from year-end 2011 AUM of $1,525bn. Solid inflows of $34.1bn were augmented by $92.2bn of favorable market and exchange rate moves in January.
Sep-11 Aug-11 Jul-11
Jun-11 May-11
Apr-11 Mar-11 Feb-11 Jan-11 (10) Equity
Fixed income
Commodities and other
1 Fixed Income ETFs captured $9.0bn of the $9.1bn net new ETP assets in January 2012. In January 2009, 100% of the fixed income inflows were in ETFs. ETP = Exchange traded products. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America. In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insight Simfund
Global ETP 2011 vs. 2012 flows by type of exposure

Jan 2011 versus Jan 2012 NNA
US$bn 15 10 5 0 -5 North America equity Europe equity Asia Pacific equity Jan 2011 NNA Emerging markets equity Fixed income Jan 2012 NNA Commodities Global/ other
January flow highlights (US$): Reflecting a general increase in risk appetite and renewed confidence in low, but steady US economic growth, investors ploughed $14.6bn into North America equity ETPs where large-cap equity products led the way with $5.9bn of new money in January 2012. Fixed income ETPs set a new global record, attracting $9.1bn1 in January 2012. The category captured 27% of total January inflows which is uncharacteristically high for a month with large overall inflows. Since 2005, there have been 14 months where new assets exceeded $20bn and fixed income on average comprised 11% of flows during those months.
Jan 2012 NNA: US$34.1bn
In an environment where long-dated Treasuries offer negative returns as measured against core inflation, investors sought out income-producing products including dividend-focused equity ETPs which attracted net inflows of $3.0bn and investment grade and high-yield corporate bond ETPs which together garnered $7.0bn of net new assets in January 2012. Dissipating fears of an imminent hard landing in China helped emerging markets equity ETPs capture $6.6bn of inflows in January 2012, reversing the trend from the latter half of 2011 when four of the last six months had experienced net redemptions. The MSCI Emerging Markets index delivered a price performance return of 11.2% for the month of January 2012 (source: MSCI website). Investors around the globe were net sellers of ETPs that provide exposure to European equities which experienced outflows of ($106.5mn) in January 2012 vs. $2.1bn of inflows in January 2011.
1 Fixed Income ETFs captured $9.0bn of the $9.1bn net new ETP assets in January 2012. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America . In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Strategic Insight Simfund
Global ETP investment grade and high yield corporate bond flows
January 2012 fixed income flow highlights (US$bn): Record net inflows of $9.1bn1 in fixed income ETPs were primarily driven by investment grade and high yield corporate bond products which gathered $3.0bn and $4.0bn respectively, together representing 77% of new fixed income flows for the month. Most other fixed income categories (outside of corporate bonds) gathered modest inflows for the month including inflation-indexed and broad/aggregate ETPs which collected $0.6bn each. The $7.0bn gathered by investment grade and high yield corporate bond products represents a fourfold increase over the average month flows in 2011 of $1.7bn for these ETP asset categories. February 2011 experienced an abnormally high ratio of investment grade/high-yield corporate inflows for the fixed income category due to outflows in government bonds. In contrast, January 2012 saw modest inflows of $0.6bn into the government and inflation-protected bond categories.
1 Fixed Income ETFs captured $9.0bn of the $9.1bn net new ETP assets in January 2012. NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America . In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX).
Investment grade and high yield corporate bond ETP NNA

US$bn 5 4 3 100% 2 60% 1 0 -1 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Investment Grade Corp ETPs High Yield ETPs % of Fixed Income ETP NNA 20% % of fixed income ETP 180%
140%
-20%
Global ETP assets by type of exposure

Jan 2012 flow highlights (US$bn): Equity ETPs led the field in asset gathering with $22.6bn, largely driven by North America equity and emerging markets equity products. Fixed income built upon last years success to deliver a record breaking month for net new flows into the category of $9.1bn, or 27% of total net new assets flowing into the ETP industry. Within commodities, gold attracted $1.2bn in January in contrast to the outflows seen in December. Gold prices registered their largest January gain in 34 years, up 9.9% for the month. 2012 YTD change % market share Monthly 2012 YTD NNA NNA % AUM % AUM market share
AUM % market share

as at end Jan 2012
Exposure as at end Jan 2012 (US$bn) Equity North America equity Emerging markets equity Europe equity Asia Pacific equity Global (ex-US) equity Global equity Fixed income Commodities Alternative Currency Mixed ETPs listed in Israel Total
AUM
AUM
1,155 611 222 119 83 69 50 271 195 5 8 2 15 1,650.8
70.0 37.0 13.4 7.2 5.1 4.2 3.0 16.4 11.8 0.3 0.5 0.1 0.9 100.0
22.6 14.6 6.6 (0.1) 0.3 0.7 0.5 9.1 2.1 0.8 (0.5) (0.0) 34.1
22.6 14.6 6.6 (0.1) 0.3 0.7 0.5 9.1 2.1 0.8 (0.5) (0.0) 34.1
92.1 42.2 27.8 8.1 5.6 4.4 4.0 13.2 20.8 0.6 (0.5) 0.01 0.2 126.4
8.7 7.4 14.3 7.3 7.1 6.8 8.6 5.1 12.0 14.1 (5.6) 0.4 1.1 8.3
0.2 (0.3) 0.7 (0.1) (0.1) (0.1) 0.01 (0.5) 0.4 0.01
Fixed Income 16.4% Developed Equity 56.5% Emerging markets equity 13.4%
(0.1)
Commodities 11.8%
(0.01) (0.1)
Others 1.8%
NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America . In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX), Bank of Israel, Strategic Insight Simfund
FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 6
United States versus Europe NNA by region of listing

Jan 2012 flow highlights (US$): US-listed ETPs drove the bulk of inflows activity with $28.7bn or 84% of all new money collected in January. ETPs listed in the US represent 70% of total industry AUM. ETPs providing exposure to fixed income performed well on both continents with those listed in Europe reversing a 5 month trend of outflows to capture $0.8bn of net new fixed income assets. For European-listed ETPs, investors shifted some funds out of German equity in January, reversing the strong inflow trend seen throughout most of 2011. For European-listed equity products, purchases went toward ETPs providing exposure to emerging markets (+$1.1bn) and North America (+$0.8bn). European-listed ETPs offering exposure to European equities experienced net redemptions of ($465mn).
Monthly NNA (US$bn) Listed in the United States

Jan-12 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 (1.0) Apr-11 Mar-11 Feb-11 Jan-11 (10) (5) 0 5 10 7.5 10.4 15 20 25 30 11.2 22.4 8.3 4.4 2.0 13.2 0.3 24.2 16.1 28.7
Listed in Europe
Jan-12 Dec-11 Nov-11 Oct-11 Sep-11 Aug-11 Jul-11 Jun-11 May-11 Apr-11 Mar-11 Feb-11 Jan-11 (8) (6) (4) (2) 0 2 4 2.4 4.0 6 8 10 2.1 3.6 4.2 4.2 (1.8) 8.6 (0.7) (2.9) (1.3) 1.3 3.3
US equity Fixed income
All other equity Commodity and other
German equity Fixed income
All other equity Commodity and other
NNA = Net New Assets. Data as at end January 2012 or where updated data is not available, we utilise the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX)
Global ETP average daily trading volume trends

January 2012 ADV highlights (US$bn): Average daily volumes (ADVs) in the month of January 2012 were down from December 2011, similar to levels seen in first two months in 2011. These relatively low trading volumes combined with historically strong monthly inflows implies that investors transacted more purchases and fewer redemptions than in a typical low-volume ADV month.
Monthly Average Daily Volume (ADV)

US$ bn (lhs) 140 US$ bn (rhs) 14
120
12
100
10
80
60
40
20
0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12
United States (lhs)
Total (lhs)
Europe (rhs)
Note: ADV = Average daily trading volume expressed in US dollars. Data as at end January 2012 or where updated data is not available, we utilise the most recent period available. Source: BlackRock Investment Institute, Bloomberg
Top 10 ETPs worldwide ranked by YTD Net New Assets (NNA)

Commentary
ETPs offering emerging markets equity exposure comprise two of the top five as measured by January inflows. Some of this months top asset gatherers were in the bottom rung last year. EEM, GLD, MDY, and XLI all vaulted onto the top 10 list this month from rankings in the 4000s in 2011. Only five of the top ten ETPs as measured by AUM were also leading asset gatherers in January 2012. State Street has the highest number of top asset gathering ETPs with five of the top ten. iShares has three. Thematically, the top ten asset gathering ETPs span a number of asset classes including emerging markets equity, US sector equity, US large-cap and mid-cap equity, corporate bonds, high yield bonds, and gold. All top 10 asset gatherers are listed in the US. ETPs as at end Jan 2012 (US$mn) Vanguard MSCI Emerging Markets ETF PowerShares QQQ Trust iShares iBoxx $ High Yield Corporate Bond Fund SPDR Barclays Capital High Yield Bond ETF iShares MSCI Emerging Markets Index Fund iShares iBoxx $ Investment Grade Corp Bond SPDR Dow Jones Industrial Average ETF SPDR Gold Trust S&P 400 MidCap SPDR Industrial Select Sector SPDR Fund Rank YTD NNA 1 2 3 4 5 6 7 8 9 10 Rank 2011 NNA 2 11 9 16 4221 10 28 4155 4220 4205 Rank AUM Jan-12 3 6 16 21 5 10 17 2 25 84
Bloomberg ticker VWO US QQQ US HYG US JNK US EEM US LQD US DIA US GLD US MDY US XLI US
YTD NNA 3,250 3,233 2,247 1,442 1,284 1,089 930 922 876 715
AUM 49,818 31,031 13,339 10,658 37,463 18,638 12,165 71,161 10,315 3,650
NNA = Net New Assets. AUM = Assets Under Management. Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America . In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX).
Top 10 ETPs worldwide ranked by AUM

Commentary
State Street has the top two global products ranked by AUM as at end January 2012. SPDR S&P 500 experienced outflows of ($0.6bn) in January vs. other top ten products which gathered new assets. Combined together, SPDR S&P 500 (SPY) and Gold Trust (GLD) account for 58% of State Streets total ETP AUM. iShares has the largest number of top products with five of the top ten. Vanguard and State Street each have two. Thematically, the top ten AUM ETPs span a number of asset classes with the largest concentration in United States broad equity (four products), emerging markets equity (two products), fixed income (two products) and one product each in gold and EAFE equity. All of the top ten ETPs are listed in the United States. ETPs as at end Jan 2012 (US$mn) SPDR S&P 500 SPDR Gold Trust Vanguard MSCI Emerging Markets ETF iShares MSCI EAFE Index Fund iShares MSCI Emerging Markets Index Fund PowerShares QQQ Trust iShares S&P 500 Index Fund iShares Barclays TIPS Bond Fund Vanguard Total Stock Market ETF iShares iBoxx $ Investment Grade Corp Bond Rank YTD NNA 4,270 8 1 835 5 2 12 20 59 6
Bloomberg ticker SPY US GLD US VWO US EFA US EEM US QQQ US IVV US TIP US VTI US LQD US
AUM 99,046 71,161 49,818 38,542 37,463 31,031 28,087 23,168 20,652 18,638
YTD NNA (607) 922 3,250 3.1 1,284 3,233 684 423 157 1,089
1-month ADV 17,549.2 1,641.6 762.6 905.6 2,084.8 2,211.7 424.1 111.0 117.0 174.3
10
Top 10 ETPs worldwide ranked by ADV

Commentary
SPDR S&P 500 remains the top product measured by ADV. iShares has five of the top ten products ranked by ADV. State Street has four. All of the top ten products are United States-listed. ETPs as at End Jan 2012 (US$mn) SPDR S&P 500 iShares Russell 2000 Index Fund PowerShares QQQ Trust iShares MSCI Emerging Markets Index Fund SPDR Gold Trust Energy Select Sector SPDR Fund iShares MSCI Brazil Index Fund Financial Select Sector SPDR Fund iShares MSCI EAFE Index Fund iShares Barclays 20+ Year Treasury Bond
Country listed US US US US US US US US US US
Bloomberg ticker SPY US IWM US QQQ US EEM US GLD US XLE US EWZ US XLF US EFA US TLT US
1-month ADV 17,549.2 3,290.4 2,211.7 2,084.8 1,641.6 918.3 917.2 915.1 905.6 815.2
AUM 99,046 15,520 31,031 37,463 71,161 7,548 10,430 6,527 38,542 3,420
Note: ADV = Average Daily Volume. AUM = Assets Under Management. Data as at end of end January 2012 or where updated data is not available, we utilise the most recent period available. Source: BlackRock Investment Institute, Bloomberg.
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Top 10 ETP providers worldwide ranked by AUM

Commentary (US$bn)
In January 2012, iShares was the largest global provider with 39% of AUM market share followed by State Street with 18% and Vanguard with 11%. iShares, State Street, and ProShares have lost modest market share on the year while PowerShares and Vanguard have gained modestly. Collectively, the top three providers account for 68% of global ETP AUM. The 183 other providers (non-top ten) account for 17% of total global ETP AUM market share. Providers at End Jan 2012 (US$bn) iShares State Street Global Advisors Vanguard PowerShares/Deutsche Bank db x-tracker/db ETC Lyxor Asset Management/Soc Gen ETF Securities Van Eck Associates Corp ProShares Nomura Asset Management Others (183 providers) Total AUM 644.2 291.6 187.8 66.8 48.3 41.1 27.6 26.2 22.4 19.2 275.6 1,650.8 % market 1-month 1-month share ADV NNA 39.0 17.7 11.4 4.0 2.9 2.5 1.7 1.6 1.4 1.2 16.7 100.0 16.0 25.0 1.8 2.8 0.4 0.6 0.3 1.0 2.7 0.1 8.0 58.5 11.0 5.1 6.9 3.8 1.1 0.5 0.1 0.3 (0.7) 0.1 6.0 34.1 AUM 45.1 21.2 17.1 7.5 4.2 3.0 2.9 2.7 (0.7) 0.8 22.5 126.4 YTD change % AUM 7.5 7.9 10.0 12.57 9.59 7.84 11.6 11.6 (3.0) 4.5 8.9 8.3 % market share (0.3) (0.1) 0.2 0.2 0.03 (0.01) 0.05 0.05 (0.2) (0.04) 0.1 -
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Global ETP multi-year asset growth

The 10-year CAGR for ETP AUM is 31.0%. For ETFs, 79% of AUM is invested in equity products, 19% is invested in fixed income products and 2.4% is invested in commodity products. Other ETPs (excluding ETFs) are primarily invested in commodities with 83.7% of other ETP market share.
Assets US$bn 1,800 1,600 1,400 2,500 1,200 1,000 800 600 1,000 400 200 0 500 2,000 # products 3,500
3,000
1,500
Assets (US$bn) ETF total ETF equity ETF fixed income ETF commodity Other ETPs total # ETFs # Other ETPs
2000 74.3 74.3 0.1 5.1 92 14
2001 104.8 104.7 0.1 0.0 3.9 202 17
2002 141.6 137.5 4.0 0.1 4.1 280 17
2003 212.0 205.9 5.8 0.3 6.3 282 18
2004 309.8 286.3 23.1 0.5 9.3 336 21
2005 412.1 389.6 21.3 1.2 15.9 461 63
2006 565.6 526.5 35.8 3.4 32.5 713 170
2007 796.7 729.9 59.9 6.3 54.6 1,170 371
2008 711.1 596.4 104.0 10.0 61.2 1,595 625
2009 1,036.0 841.6 167.0 25.6 119.7 1,944 750
2010 1,311.3 1,053.8 207.3 45.7 171.3 2,460 1,083
2011 1,350.9 1,057.4 257.7 31.1 173.5 3,011 1,210
Jan-12 1,460.4 1,149.2 270.8 35.4 190.4 3,063 1,211
Note: CAGR = Compound Annual Growth Rate. AUM = Assets Under Management. Note: Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg.
13
ETP statistics by region

Middle East & Africa
Global
United States
Europe
Japan
Asia (ex-Japan)
Latin America
Canada
Metric Total ETPs Assets (US$bn) YTD NNA (US$bn) # ETPs # listings # providers Jan -12 ADV (US$bn) ETFs AUM (US$bn) YTD NNA (US$bn) # ETFs # listings # providers Jan -12 ADV (US$bn) Other ETPs Assets (US$bn) YTD NNA (US$bn) # Other ETPs # listings # providers Jan -12 ADV (US$bn)
Jan-12 1,650.8 34.1 4,274 8,518 195 58.5 1,460.4 32.1 3,063 6,661 156 53.7 190.4 2.0 1,211 1,857 62 4.9
YTD YTD YTD YTD YTD YTD YTD YTD change change change change change change change change (%) Jan-12 (%) Jan-12 (%) Jan-12 (%) Jan-12 (%) Jan-12 (%) Jan-12 (%) Jan-12 (%) 8.3% N/A 1.3% 0.6% 1.0% -6.9% 8.1% N/A 1.7% 0.7% 0.6% -6.9% 9.7% N/A 0.1% 0.1% 1.6% -5.9% 1,151.0 28.7 1,392 1,392 48 52.7 1,017.0 27.0 1,120 1,120 30 48.2 134.0 1.7 272 272 22 4.5 8.4% N/A 1.6% 1.6% 0.0% -8.0% 8.1% N/A 2.0% 2.0% 0.0% -8.3% 10.4% N/A 0.0% 0.0% 0.0% -5.1% 323.3 3.3 1,816 5,402 46 3.2 287.8 3.1 1,244 4,271 38 2.9 35.4 0.3 572 1,131 12 0.2 8.3% N/A 0.7% 0.2% 2.2% -1.1% 8.0% N/A 1.0% 0.2% 0.0% -1.2% 10.8% N/A 0.2% 0.1% 9.1% 0.1% 38.2 0.7 99 133 10 0.1 37.5 0.7* 90 94 8 0.1 0.7 0.02 9 39 4 0.01 7.2% N/A 0.0% 1.5% 0.0% -13.9% 7.1% N/A 0.0% 0.0% 0.0% -12.9% 12.1% N/A 0.0% 5.4% 0.0% -22.9% 62.8 0.8 347 462 92 1.2 59.8 0.8* 317 429 76 1.1 3.0 (0.04) 30 33 20 0.02 10.2% N/A 4.2% 4.1% 1.1% 9.5% 10.2% N/A 4.6% 3.4% 1.3% 10.6% 11.0% N/A 0.0% 13.8% 0.0% -23.4% 10.1 (1.1) 31 461 4 0.5 10.1 (1.1) 31 432 4 0.5 29 0.003 -1.8% N/A 0.0% 0.2% 0.0% 103.1% -1.8% N/A 0.0% 0.2% 0.0% 103.4% 0.0% 67.8% 45.8 1.5 230 307 8 0.8 45.8 1.5 230 283 8 0.8 24 0.002 8.4% N/A 1.3% 1.0% 0.0% 5.8% 8.4% -79.4% 1.3% 1.1% 0.0% 6.0% 0.0% -43.0% 19.6 N/A 359 361 21 0.1 2.4 N/A 31 32 11 0.004 17.2 N/A 328 329 11 0.1 3.4% N/A 0.3% 0.8% 0.0% 26.8% 10.7% N/A 3.3% 6.7% 0.0% -21.1% 2.4% N/A 0.0% 0.3% 0.0% 29.5%
NNA = Net New Assets. AUM = Assets Under Management. ADV = Average Daily Volume *Global ETP NNA (or flows) are approximated by combining the United States, Europe, Canada, Asia Pacific and Latin America . In 2011, global flows are re-stated with Asia Pacific flows. From January 2012, Asia Pacific flows will be reported on an one-month lag basis. Note: Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX).
14
United States
15
United States ETPs multi-year asset growth

The 10-year CAGR for United States ETP AUM is 29.0%.
Assets US$bn 1,200 # products 1,200
1,000
1,000
800
800
600
600
400
400
200
200
Assets (US$bn) ETF assets Other ETP assets # ETFs # Other ETPs
2000 65.6 5.0 81 14
2001 84.6 3.8 101 17
2002 102.3 4.0 113 17
2003 150.7 6.1 117 17
2004 227.7 8.9 152 17
2005 299.4 14.4 201 20
2006 406.8 25.9 343 38
2007 580.7 40.5 601 72
2008 497.1 45.3 698 146
2009 705.5 88.1 772 153
2010 891.0 120.8 896 203
2011 940.4 121.4 1,098 272
Jan-12 1,017.0 134.0 1,120 272
Note: CAGR = Compound Annual Growth Rate. AUM = Assets Under Management. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
16
United States ETP NNA by type of exposure: developed market equity

Jan-12
Commentary (US$bn)
The FOMCs outlook for an extended period of ultra-low interest rates helped spur inflows indicative of investors adding risk to their portfolios. In January 2012, ETPs listed in the US gathered $28.7bn of new assets, almost 25% of last year's total inflow. Large-cap ETPs led the US non sector equity exposure category with $5.1bn in new assets. US Sector equity flows ramped up to capture $3.8bn in January, or 60% of last years total flows into the category. Trends are indicative of investors adding risk with strong flows into financials, energy and healthcare, all three of which eclipsed their 2011 net flows. Investors retreated from the safety of utilities and consumer goods/services. Tech saw outflow on the back of Googles prominent earnings miss for Q4.
Exposure (US$mn) Equity North America Broad Canada United States United States non-sector Large-cap equity Mid-cap equity Small-cap equity Value equity Growth equity Others United States sectors Consumer goods/services Energy Financials Healthcare Industrials Materials Other Real estate Technology Telecommunications Utilities Asia Pacific Europe Israel Global Global (ex-US) Assets 825,582 556,642 14 4,891 551,738 430,679 196,009 31,675 29,224 38,169 46,848 88,753 121,059 12,804 22,114 16,331 10,773 5,396 4,636 3,485 19,966 15,569 936 9,050 20,315 10,220 80 33,455 68,275 NNA 19,816 13,275 (7) 13,282 9,391 5,082 1,142 524 537 (95) 2,201 3,891 (553) 1,302 1,386 1,035 765 255 (31) 754 (497) 32 (557) (407) 359 124 676 2011 NNA 67,496 44,682 2 755 43,924 37,669 16,952 (1,996) (3,003) 1,013 2,416 22,286 6,256 2,054 366 (1,354) 386 (1,212) (1,574) (258) 2,142 2,010 (185) 3,881 1,472 1,570 (33) 9,807 12,356 2010 NNA 77,090 37,001 2 1,046 35,953 25,585 (1,321) 3,414 3,386 2,222 789 17,095 10,368 2,278 2,944 1,282 (587) 1,032 857 (268) 1,120 1,389 89 232 1,231 863 (28) 3,526 4,694
Note: AUM = Assets Under Management. NNA = Net New Assets. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
continued
17
United States ETP NNA by type of exposure: emerging markets and fixed income
Jan-12
Commentary (US$bn)
Enthusiasm for emerging markets equity ETPs bubbled up with $5.7bn of new assets flowing into the category, reversing the outflow trend from 2011. The broad exposure category was most popular, attracting $4.9bn or 86% of the net inflows. Despite overall demand for emerging markets equities, Brazil country funds actually had outflows of ($0.2bn). Record monthly inflows of $7.4bn in fixed income ETPs were primarily driven by investment grade and high yield corporate bond products which gathered $1.9bn and $3.8bn respectively, together representing 78% of net fixed income flows for the month. Most other fixed income categories (outside of corporate bonds) gathered modest inflows for the month including inflation-indexed and aggregate ETPs which collected $0.6bn and $0.4bn respectively.
Exposure (US$mn) Equity: Emerging markets Broad Global emerging markets Frontier Sector Other Regional Asia emerging markets Eastern Europe Middle East and Africa Latin America Country Brazil China India Russia Other Emerging Countries Fixed income Active Aggregate Convertible Corporate Emerging markets Government High yield Inflation Money Market Mortgage Govt/Corp Assets 136,595 96,972 89,579 128 617 6,648 3,220 607 129 217 2,267 36,404 11,313 8,715 2,270 2,076 12,030 194,797 2,477 29,808 766 39,449 6,956 45,300 25,250 27,532 4,432 12,827 NNA 5,788 4,914 4,564 (5) 12 343 169 17 4 (2) 150 704 (189) 455 81 104 253 7,410 11 438 34 1,986 120 (104) 3,812 605 186 324 2011 NNA (2,356) 1,796 1,820 (71) 136 (88) (1,523) (235) (64) (79) (1,145) (2,629) 604 (1,228) (637) (111) (1,256) 46,831 1,541 7,688 257 9,984 2,863 9,344 6,978 2,797 1,869 3,509 2010 NNA 29,804 25,512 22,214 186 306 2,806 284 179 4 100 1 4,009 951 (1,612) 1,028 960 2,681 29,434 864 2,374 272 5,034 2,172 9,068 5,597 861 507 2,685
continued
18
United States ETP NNA by type of exposure: commodities and other

Jan-12
Commentary (US$bn)
Commodities gathered 1.5bn of net new assets led by gold with $1.1bn. Speculators increased bets in gold futures following the Fed's dovish statements (which led to speculation about QE3). Energy ETPs collected net new money for the first time in five months with $0.2bn of inflows in January.
Exposure (US$mn) Commodities Broad Alternative Agriculture Energy Industrial metals Livestock Precious metals Currency Alternative Mixed Total Assets 119,057 12,096 1.3 3,134 4,317 679 105 98,725 7,364 2,646 1,552 1,150,999 NNA 1,547 304 (26) 161 3 (5) 1,110 (553) 570 (48) 28,742 2011 NNA 1,425 854 (1) (182) (1,747) (107) 40 2,569 2,117 505 753 119,128 2010 NNA 11,048 862 0 74 (1,192) (31) (37) 11,372 (2,179) 3,355 442 119,190
19
Top 10 ETP providers in the United States ranked by AUM

Commentary (US$bn)
In January 2012, iShares was the largest US provider with 42% AUM market share followed by State Street Global Advisors with 24% and Vanguard with 16%. iShares and State Street lost modest market share in January 2012 while Vanguard and PowerShares both gained modestly. Collectively, the top three providers account for 82.4% of US AUM. iShares and State Street together account for 74% of total ADV for the entire US market in January 2012. The 37 other providers (non-top ten) account for 4.3% of US AUM market share.
Providers as at End Jan 2012 (US$bn) iShares State Street Global Advisors Vanguard PowerShares/Deutsche Bank Van Eck Associates Corp ProShares WisdomTree Investments Bank of New York Rydex SGI Direxion Shares Others (37 providers) Total AUM % market share 1-month ADV Jan-12 NNA YTD NNA AUM YTD Change % market share
% AUM
483.9 277.3 187.4 64.8 26.2 22.4 13.7 10.3 8.2 7.2 49.6 1,151.0
42.0 24.1 16.3 5.6 2.3 1.9 1.2 0.9 0.7 0.6 4.3 100
14.1 24.9 1.8 2.7 1.0 2.7 0.2 0.4 0.3 3.1 1.6 52.7
9.5 4.9 6.9 3.6 0.3 (0.7) 0.7 0.9 0.1 0.2 2.4 28.7
9.5 4.9 6.9 3.6 0.3 (0.7) 0.7 0.9 0.1 0.2 2.4 28.7
34.8 20.2 17.1 7.2 2.7 (0.7) 1.5 1.5 0.4 0.5 4.0 89.2
7.7 7.9 10.0 12.4 11.6 (3.0) 12.2 16.5 5.8 8.0 8.8 8.4
(0.3) (0.1) 0.2 0.2 0.1 (0.2) 0.04 0.1 (0.02) (0.002) 0.02 -
Note: ADV = Average Daily Volume. AUM = Assets Under Management. NNA = Net New Assets. Data as at end January 2012. PowerShares markets a suite of ETPs in the US managed by Deutsche Bank. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange (NSX).
20
United States ETPs ranked by 2012 net new assets (NNA) and outflows
Jan 2012 highlights (US$bn): Vanguard MSCI Emerging Markets ETF (VWO) had the highest January NNA with $3.3bn and iShares MSCI Emerging Markets Index Fund (EEM) had the fifth highest inflows of $1.3bn reflecting investors strong appetite for broad emerging markets equity exposure. Three of the top ten asset gatherers were high yield and investment grade corporate bond ETPs Other top asset-gathering ETPs represent a wide array of asset classes including gold, industrials, technologies, large-cap and mid-cap funds.
Ranked by YTD NNA

ETP (US$mn) as at End Jan 2012 Vanguard MSCI Emerging Markets ETF PowerShares QQQ Trust iShares iBoxx $ High Yield Corporate Bond Fund SPDR Barclays Capital High Yield Bond ETF iShares MSCI Emerging Markets Index Fund iShares iBoxx $ Investment Grade Corp Bond SPDR Dow Jones Industrial Average ETF SPDR Gold Trust S&P 400 MidCap SPDR Industrial Select Sector SPDR Fund Bloomberg ticker VWO US QQQ US HYG US JNK US EEM US LQD US DIA US GLD US MDY US XLI US YTD NNA 3,250 3,233 2,247 1,442 1,284 1,089 930 922 876 715 Jan-12 AUM 49,818 31,031 13,339 10,658 37,463 18,638 12,165 71,161 10,315 3,650
Ranked by YTD outflows

ETP (US$mn) as at End Jan 2012 Consumer Staples Select Sector SPDR Fund iShares MSCI Japan Index Fund Utilities Select Sector SPDR Fund SPDR S&P 500 SPDR Barclays Capital 1-3 Month T-Bill ETF Technology Select Sector SPDR Fund Direxion Daily Small Cap Bull 3x Shares iShares Barclays 3-7 Year Treasury Bond Fund PowerShares DB US Dollar Index Bullish Fund iShares MSCI Brazil Index Fund Bloomberg ticker XLP US EWJ US XLU US SPY US BIL US XLK US TNA US IEI US UUP US EWZ US YTD NNA (992) (632) (617) (607) (500) (465) (384) (341) (307) (252) Jan-12 AUM 4,773 4,942 6,769 99,046 1,155 8,228 833 2,493 1,535 10,430
Note: AUM = Assets Under Management. NNA = Net New Assets. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg, National Stock Exchange.
21
Europe
22
European ETP multi-year asset growth

The 10-year CAGR for Europe ETP AUM is 49.3%.
Assets US$bn 320 280 1,000 240 200 160 120 80 250 40 0 0 500 # products 1,250
750
Assets (US$bn) ETF total ETF equity ETF fixed income ETF commodity Other ETP total # ETFs # Other ETPs
2000 0.7 0.7 6
2001 5.7 5.7 71
2002 10.7 10.7 118
2003 20.4 19.4 1.0 104
2004 34.0 31.0 2.9 0.7 114 1
2005 54.9 49.3 5.2 0.4 1.1 165 2
2006 89.7 75.7 12.1 2.0 2.1 273 32
2007 128.5 103.5 21.0 3.3 4.9 423 80
2008 142.7 96.6 41.1 4.9 6.9 636 218
2009 226.9 159.8 51.6 15.2 15.7 827 281
2010 284.0 198.5 57.1 26.4 31.3 1,072 521
2011 266.6 179.2 56.3 29.4 32.0 1,232 571
Jan-12 287.8 194.2 58.1 33.6 35.4 1,244 569
Note: AUM = Assets Under Management. Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg.
23
European ETP NNA by type of exposure: developed market equity

Jan-12
Commentary (US$bn)
After two months of outflows influenced by the debt crisis, European-listed ETPs captured new money in January 2012, led by inflows of $1.7bn in equity products, primarily those providing exposure to North America $0.8bn and Emerging markets $1.1bn. ETPs offering European equity exposure surrendered ($0.5bn) in January driven primarily by German equity funds ($0.4bn) which contrasts to 2011 when the category captured 96% of all equity inflows in Europe.
Exposure (US$mn) Equity Europe Broad Country Germany United Kingdom Italy Switzerland France Sweden Austria Other Sectors North America Broad Canada United States Asia Pacific Global Global (ex-US) Assets 194,495 108,919 39,267 59,044 29,445 11,154 1,282 7,246 5,561 2,116 406 2,240 10,608 27,993 2,265 589 25,138 11,447 13,556 NNA 1,724 (465) (178) (555) (354) 69 8 (96) (110) (25) 8 (47) 267 788 126 6 656 (12) 279 2011 NNA 18,042 13,445 (4,310) 18,850 17,276 1,124 451 49 (360) 250 (26) 59 (1,095) 5,148 182 326 4,640 (442) 883 2010 NNA 31,313 7,820 1,925 5,594 3,229 950 178 609 430 95 20 103 301 4,795 595 298 3,901 3,694 2,698 -
continued
Note: NNA = Net New Assets. Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg.
24
European ETP NNA by type of exposure: emerging markets and fixed income
Jan-12
Commentary (US$bn)
Emerging markets equity ETPs captured inflows of $1.1bn in January, reversing steady monthly outflows that began in August 2011. Fixed income products attracted modest inflows of $0.8bn in January, driven primarily by investment grade corporate and emerging markets bond ETPs.
Exposure (US$mn) Equity: Emerging markets Broad Global emerging markets Frontier Sector Other Regional Asia Pacific Eastern Europe Middle East and Africa Latin America Country Brazil China India Russia Other Emerging Countries Fixed income Active Broad/Aggregate Corporate Covered Credit Spreads Emerging Government High Yield Inflation Money Market Mortgage Assets 32,579 16,702 14,971 134 178 1,419 3,788 1,496 1,040 194 1,059 12,089 2,149 2,834 2,020 2,123 2,963 58,104 155 734 12,326 1,021 683 1,983 26,758 1,346 4,424 7,063 1,610 NNA 1,134 500 523 (19) 4 (8) 79 1 16 5 57 555 179 77 72 109 118 762 (27) 29 786 34 14 189 (166) 41 (16) (197) 74 2011 NNA (992) (258) (176) 37 (26) (94) 332 478 72 (35) (183) (1,066) (377) (271) (420) 342 (341) (332) 195 190 594 (62) (205) 104 (2,327) 824 4 447 (94) 2010 NNA 12,306 7,254 6,379 99 120 655 1,161 443 306 184 228 3,892 329 427 691 952 1,493 8,276 422 2,401 360 (25) 1,120 4,649 473 (122) (995) (6)
continued
25
European ETP NNA by type of exposure: commodities and other

Jan-12
Commentary (US$bn)
Every commodities category except livestock attracted positive cash flows in January. Precious metals ETPs eked out a small net inflow of $0.1bn in January, the smallest monthly inflow for this category since May 2011.
Exposure (US$mn) Commodities Broad Alternative Agriculture Energy Industrial metals Livestock Precious metals Currency Alternative Mixed Total Assets 68,233 7,169 1 3,702 3,749 1,947 122 51,542 521 1,819 121 323,292 NNA 587 131 0 32 295 37 (1) 93 38 237 3,347 2011 NNA 6,713 (816) 1 (282) (15) 14 (4) 7,815 (96) (541) 12 23,798 2010 NNA 9,253 1,707 (1) (397) 504 328 15 7,097 345 1,044 35 50,266
26
Top 10 ETP providers in Europe ranked by AUM

YTD Change Providers as at End Jan 2012 (US$bn) iShares db x-trackers/db ETC Lyxor Asset Management/Soc Gen ETF Securities % market 1-month Jan-12 YTD AUM share ADV NNA NNA 113.4 47.2 40.7 22.9 35.1 14.6 12.6 7.1 5.1 5.0 4.3 2.7 2.6 2.2 8.8 100.0 1.0 0.4 0.6 0.2 0.1 0.1 0.05 0.1 0.3 0.1 0.3 3.2 1.7 1.1 0.5 0.1 0.0 0.0 (0.5) 0.0 0.3 (0.3) 0.4 3.3 1.7 1.1 0.5 0.1 0.0 0.0 (0.5) 0.0 0.3 (0.3) 0.4 3.3 % AUM 7.1 9.5 7.9 11.0 7.0 15.0 7.1 5.4 13.0 1.3 8.8 8.3 % market share (0.4) 0.2 (0.0) 0.2 (0.1) 0.3 (0.0) (0.1) 0.1 (0.2) 0.0
Commentary (US$bn)
In January, iShares was the largest European provider with 35% AUM market share followed by db x-trackers with 15% and Lyxor Asset Management with 13%. iShares lost modest market share in January while db x-trackers and ETF Securities gained modest market share. Collectively, the top three providers account for 62% of Europe AUM. The top three providers represent 63% of the total ADV in Europe. The 36 other providers (non-top-ten) account for 9% of Europe AUM market share.
AUM 7.5 4.1 3.0 2.3 1.1 2.1 0.9 0.5 1.0 0.1 2.3 24.8
Credit Suisse Asset Management 16.6 Zurich Cantonal Bank UBS Global Asset Management/ UBS AG Amundi ETF Source Markets Commerzbank Others (36 providers) Total 16.1 13.8 8.9 8.3 7.1 28.4 323.3
Note: ADV = Average Daily Volume. NNA = Net New Assets. Data as at end January 2012 or the most recent period available. . Source: BlackRock Investment Institute, Bloomberg.
27
Top 10 ETPs in Europe ranked by AUM and ADV

The iShares DAX (DE) product is the largest by AUM and ADV. The largest products by AUM fall into one of three categories: six large-cap products (on DAX, S&P 500, STOXX 50 and FTSE 100 indexes), three gold products and one emerging markets product. Within the top ten products ranked by AUM, iShares has five products, ETF Securities has two, and three other providers each have one. Among the top ten ranked by ADV, iShares has five products, db x-trackers has two, and three other providers each have one. Large-cap equity products (including leveraged/short) comprise seven of the ten top products ranked by ADV.
Ranked by AUM as at End January 2012

Country listed Germany Switzerland United Kingdom Germany United Kingdom United Kingdom United Kingdom France United Kingdom Germany Bloomberg ticker 1-month ADV 119.1 31.2 87.6 37.7 48.2 28.4 58.0 41.9 65.5 33.4
Ranked by ADV as at End January 2012

Country Bloomberg listed ticker Germany DAXEX GY United Kingdom United Kingdom United Kingdom Germany United Kingdom Germany IUSA LN ISF LN IEEM LN XMEM GY PHAU LN SX5EEX GY 1-month ADV 119.1 87.6 65.5 58.0 53.2 48.2 46.6 44.4 43.0 42.8
ETP (US$mn) iShares DAX (DE) ZKB Gold ETF (CHF) iShares S&P 500 db x-trackers DAX ETF ETFS Physical Gold GBS Bullion Securities iShares MSCI Emerging Markets Lyxor ETF Euro STOXX 50 iShares FTSE 100 iShares EURO STOXX 50
AUM
ETP (US$mn) iShares DAX (DE) iShares S&P 500 iShares FTSE 100 iShares MSCI Emerging Markets db x-trackers MSCI Emerging Market ETFS Physical Gold iShares EURO STOXX 50 (DE) ComStage ETF DAX TR db x-trackers ShortDAX Daily ETF Lyxor ETF XBEAR CAC 40
AUM 15,201 9,662 5,317 5,750 4,150 7,714 4,079 844 699 297
DAXEX GY 15,201 ZGLD SW IUSA LN XDAX GY PHAU LN GBS LN IEEM LN MSE FP ISF LN EUN2 GY 10,436 9,662 8,238 7,714 6,646 5,750 5,439 5,317 4,632
Germany CBDAX GY Germany France XSDX GY BX4 FP
Note: ADV = Average Daily Volume. AUM = Assets Under Management. AUM reflects total fund AUM. ADV reflects total of all exchange listings, share classes and partial OTC volumes. Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg.
28
Europe ETPs ranked by YTD net new assets (NNAs) and outflows
Two S&P 500 products offering US equity exposure and two emerging markets equity products are in the top ten ETPs as measured by inflows (or NNA). iShares has four of the top ten products ranked by NNA; Source has three; db x-trackers has two and ETFLab has one product. iShares, db x-trackers, UBS and Commerzbank each have two of the top ten products ranked by outflows. Source and Amundi each have one.
Ranked by 2012 YTD NNA as at End January 2012

Bloomberg ticker IEXF LN IEEM LN XSDX GY IUSA LN VOLT LN SX5EEX GY SPXS LN XMEM GY X4PS GY ETFGS13 GY YTD NNA 330 290 211 188 168 166 157 146 128 126 1-month ADV 14.4 58.0 43.0 87.6 10.7 46.6 10.1 53.2 14.2 1.1
Ranked by 2012 YTD outflows as at End January 2012

Bloomberg ticker DAXEX GY XEON GY RXP1EX GY XBTR GY C50 FP USACHA SW EMUEUA GY CBNDDUEM GY CBEONIA GY SGLD LN YTD NNA (247) (243) (224) (180) (165) (153) (136) (134) (131) (130) 1-month ADV 119.1 15.5 18.5 2.0 24.4 6.2 2.4 0.0 1.5 28.7
ETP (US$mn) iShares Barclays Capital Euro Corporate Bond ex-Financials iShares MSCI Emerging Markets db x-trackers ShortDAX Daily ETF iShares S&P 500 Nomura Voltage Mid-Term Source ETF iShares EURO STOXX 50 (DE) S&P 500 Source ETF db x-trackers MSCI Emerging Market TRN Index ETF STOXX 600 Optimised Chemicals Source ETF Source ETF ETFlab Dt. Boerse EUROGOV Germany 1-3
AUM 1,315 5,750 699 9,662 333 4,079 475 4,150 159 510
ETP (US$mn) iShares DAX (DE) db x-trackers II EONIA TR ETF iShares eb.rexx Government Germany 1.5-2.5 (DE) db x-trackers II iBOXX Euro Germany Total Return Index ETF AMUNDI ETF Dow Jones EURO STOXX 50 UBS-ETF MSCI USA UBS-ETF MSCI EMU ComStage ETF MSCI EMU TRN ComStage ETF Commerzbank EONIA Index TR Physical Gold Source P-ETC
AUM 15,201 2,770 2,117 305 830 1,185 334 48 476 2,290
Note: ADV = Average Daily Volume. AUM = Assets Under Management. NNA = Net New Assets. AUM reflects total fund AUM. ADV reflects total of all exchange listings, share classes and partial OTC volumes. Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg.
29
European ETF physical and synthetic AUM trends
Assets US$bn 320
# ETFs
+25.2%
280 240 200
-6.2%
+1.3%
900 800
+59.0%
700 600 500
160
+11.1% +43.3%
400 300 200 100 0
120 80 40 0
+63.3%
Assets (US$bn) Physical Synthetic Hybrid ETF AUM total # physical # synthetic # hybrid # ETFs total
2005 41.3 13.6 54.9 138 27 165
2006 64.1 25.6 89.7 184 89 273
2007 80.6 48.0 128.5 231 192 423
2008 76.4 66.4 142.7 252 383 635
2009 125.0 101.9 226.9 314 515 829
2010 155.1 128.6 0.3 284.0 385 683 3 1,072
2011 162.0 104.3 0.2 266.6 447 782 3 1,232
Jan-12 175.1 112.5 0.2 287.8 447 794 3 1,244
Note: Synthetic replication refers to the use of derivatives to replicate the index performance such as swaps, futures, forwards, options etc. Physical replication refers to the use of physical securities such as stocks, bonds and commodities to generate the index performance. Hybrid replication refers to a combination of both physical and synthetic products. Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg.
30
Europe synthetic versus physically-backed ETPs

January 2012 monthly flow highlights (US$): Derivative-backed (or synthetic) ETPs reversed the trend from the prior six months and gathered inflows of $1,841mn. Over the last six months, synthetic products experienced combined outflows of ($11.7bn) against inflows of $9.7bn for physically-backed ETPs.
2011 monthly NNA (US$mn)

US$mn
3,000
2716
3114
1522 1091 1,000 223 1049
1841
Physical ETPs
Synthetic ETPs
(1,000)
(902) (1861)
(3,000)
(2363)
(3873) (5,000) (4548) August September October November December January
Note: Synthetic replication refers to the use of derivatives to replicate the index performance such as swaps, futures, forwards, options etc. Physical replication refers to the use of physical securities such as stocks, bonds and commodities to generate the index performance. NNA = Net New Assets. Data as at end January 2012 or the most recent period available. Source: BlackRock Investment Institute, Bloomberg.
31
Asia Pacific (ex-Japan)
32
Asia Pacific (ex-Japan) ETPs multi-year asset growth

The 10-year CAGR for Asia Pacific ETP AUM is 32.4%.
Assets US$bn 70 # products 350
60
300
50
250
40
200
30
150
20
100
10
50
2001 3.7 4
2002 3.8 11
2003 6.6 20
2004 8.6 27
2005 10.5 32
2006 18.1 49
2007 27.0 0.1 68 4
2008 23.8 0.5 96 6
2009 38.5 0.8 132 12
2010 53.3 1.5 200 23
2011 54.2 2.7 303 30
Jan-12 59.8 3.0 317 30
Note: CAGR = Compound Annual Growth Rate. Shares outstanding on Chinas ETFs are as at end of December 2011. All other data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
33
Top 10 ETP providers in Asia Pacific (ex-Japan) ranked by AUM

Commentary
At end of January 2012, State Street was the largest Asia Pacific (ex-Japan) provider with 21% of AUM market share followed by iShares with 14% and HSBC/Hang Seng with 11%. iShares and HSBC gained market share in January, while State Street lost modest market share. Collectively, the top three providers account for 46% of ETP AUM. The 83 other providers (non-top ten) account for 18% of market share. Beginning in January 2012, NNA for the Asia Pacific region were added to this report on a one month lag basis (due to the timing of data availability). Providers as at End Jan 2012 (US$bn) State Street Global Advisors iShares HSBC/Hang Seng Samsung Investment Trust Management Polaris China Asset Management E Fund Management Hua An Fund Management Mirae Asset MAPS Global Investments Woori Asset Management Others (83 providers) Total AUM 12.6 8.4 6.8 5.6 4.3 4.2 3.1 1.6 1.6 0.9 10.6 59.8 % market 1-month Dec-11 share ADV NNA 21.0 14.1 11.4 9.3 7.3 7.0 5.2 2.7 2.6 1.6 17.8 100.0 0.1 0.2 0.02 0.5 0.04 0.1 0.1 0.1 0.02 0.01 0.1 1.2 0.03 0.07 0.06 0.21 0.12 0.05 0.14 0.07 0.15 0.14 (0.23) 0.81 YTD change % % market AUM share 6.7 14.4 10.8 16.4 3.2 9.2 7.9 13.2 20.0 3.9 8.4 10.2 (0.7) 0.5 0.1 0.5 (0.5) (0.1) (0.1) 0.1 0.2 (0.1) (3.9)
AUM 0.8 1.1 0.7 0.8 0.1 0.4 0.2 0.2 0.3 0.0 1.0 5.5
Note: ADV = Average Daily Volume. NNA = Net New Assets. Shares outstanding on Chinas ETFs are as at end of Decmber 2011. NNAs in this region are of December 2011. All other data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
34
Top 10 ETPs in Asia Pacific (ex-Japan) ranked by AUM and ADV
Ranked by AUM as at End Jan 2012

ETP (US$mn)
Tracker Fund of Hong Kong (TraHK) iShares FTSE A50 China Index ETF* Hang Seng Index ETF China AMC SSE 50 Polaris Taiwan Top 50 Tracker Samsung Kodex200 ETF E Fund SZSE 100 ABF Pan Asia Bond Index Fund Hang Seng H-Share Index ETF SPDR S&P/ASX 200 Fund
*
Ranked by ADV as at End Jan 2012

AUM
6,720 6,631 3,758 3,574 3,523 3,190 2,893 2,692 2,583 2,176
Country listed
Hong Kong Hong Kong Hong Kong China Taiwan South Korea China Hong Kong Hong Kong Australia
Bloomberg ticker
2800 HK 2823 HK 2833 HK 510050 CH 0050 TT 069500 KS 159901 CH 2821 HK 2828 HK STW AU
1-month ADV
41.2 138.7 1.3 120.9 34.5 92.5 85.4 0.7 21.3 10.3
ETP (US$mn)
Samsung KODEX Leverage ETF iShares FTSE A50 China Index ETF*
Country listed
South Korea Hong Kong
Bloomberg 1-month ticker ADV

122630 KS 2823 HK 114800 KS 510050 CH 069500 KS 159901 CH 510180 CH 2800 HK 0050 TT 2828 HK 222.6 138.7 135.5 120.9 92.5 85.4 58.6 41.2 34.5 21.3
AUM
701 6,631 702 3,574 3,190 2,893 1,513 6,720 3,523 2,583
Samsung KODEX Inverse ETF South Korea China AMC SSE 50 Samsung Kodex200 ETF E Fund SZSE 100 SHANGHAI SSE180 ETF Tracker Fund of Hong Kong (TraHK) Polaris Taiwan Top 50 Tracker Hang Seng H-Share Index ETF China South Korea China China Hong Kong Taiwan Hong Kong
This is a synthetic ETF. The relevant annotation that the fund is a synthetic ETF is a Hong Kong regulatory requirement. As such, for funds that are not authorized in Hong Kong, they may not carry the same annotation even though they may invest substantially in financial derivatives instruments. Note: ADV = Average Daily Volume. AUM = Assets Under Management. Shares outstanding on Chinas ETFs are as at end December 2011. All other data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
35
Japan
36
Japan ETP multi-year asset growth

The 10-year CAGR for Japan ETP AUM is 19.0%.
Assets US$bn 45 40 35 30 60 25 50 20 40 15 30 10 5 0 20 10 0 # products 100 90 80 70
2001 6.6 8
2002 21.0 18
2003 27.6 18
2004 30.3 15
2005 31.8 13
2006 34.6 13
2007 34.2 0.0 15 1
2008 27.4 0.3 61 4
2009 24.6 0.3 68 5
2010 32.2 0.4 80 9
2011 35.0 0.6 90 9
Jan-12 37.5 0.7 90 9
Note: CAGR = Compound Annual Growth Rate. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
37
ETP providers in Japan ranked by AUM

Commentary
At end of January 2012, Nomura Asset Management was the largest Japanese provider with 51% of AUM market share followed by Nikko Asset Management with 22% and Daiwa Asset Management with 19%. Nikko, Daiwa and Mitsubishi UFJ have all gained market share from Nomura during the month. Collectively, the top three providers account for 92% of ETP AUM. Beginning in January 2012, NNA for the Asia Pacific region were added to this report on a one month lag basis (due to the timing of data availability). Providers as at End Jan 2012 (US$bn) Nomura Asset Management Nikko Asset Management Daiwa Asset Management Mitsubishi UFJ Asset Management Simplex Asset Management iShares Kokusai Asset Management Others (7 providers) Total AUM 19.2 8.5 7.4 2.7 0.1 0.1 0.1 0.02 38.2 % market 1-month Dec-11 share ADV NNA 50.5 22.3 19.4 7.1 0.3 0.3 0.2 0.1 100.0 0.05 0.02 0.01 0.01 0.001 0.0003 0.002 0.003 0.100 0.11 0.23 0.36 0.01 0.01 0.00 0.01 0.02 0.75 2011 change % AUM 4.5 7.6 8.3 26.2 (0.1) 5.7 13.1 9.2 7.2 % market share (1.3) 0.1 0.2 1.1 (0.02) (0.004) 0.01 0.001
AUM 0.8 0.6 0.6 0.6 (0.0001) 0.01 0.01 0.002 2.6
Note: ADV = Average Daily Volume. AUM = Assets Under Management. Flows data are of December 2011. All other data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
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Top 10 ETPs in Japan ranked by AUM and ADV

Bloomberg ticker 1321 JP 1306 JP 1330 JP 1320 JP 1305 JP 1308 JP 1346 JP 1348 JP 1540 JP 1615 JP 1-month ADV 30.6 16.9 20.5 7.6 0.9 1.9 2.0 0.8 2.7 1.4
Ranked by ADV1 as at End January 2012

Bloomberg 1-month ticker ADV 1321 JP 1330 JP 1306 JP 1320 JP 1326 JP 1540 JP 1552 JP 1346 JP 1308 JP 1615 JP 30.6 20.5 16.9 7.6 3.1 2.7 2.4 2.0 1.9 1.4
ETP (US$mn) NIKKEI 225 ETF TOPIX ETF Listed Index Fund 225 Daiwa ETF NIKKEI 225 Daiwa ETF TOPIX Listed Index Fund TOPIX MAXIS NIKKEI225 ETF MAXIS TOPIX ETF Japan Physical Gold ETF TOPIX Banks Exchange Traded Fund
AUM 8,950 8,817 4,445 3,652 3,558 3,532 1,662 390 335 314
ETP (US$mn) NIKKEI 225 ETF Listed Index Fund 225 TOPIX ETF Daiwa ETF NIKKEI 225 SPDR Gold Trust Japan Physical Gold ETF Kokusai S&P500 VIX Short-Term Futures Index ETF MAXIS NIKKEI225 ETF Listed Index Fund TOPIX TOPIX Banks Exchange Traded Fund
AUM 8,950 4,445 8,817 3,652 71,1611 335 65 1,662 3,532 314
1. For ETFs cross listed into Japan from the United States, AUM reflects total fund AUM (which is not counted in previous totals). ADV reflects US dollar volume of the specific exchange listing shown. Note: ADV = Average Daily Volume. AUM = Assets Under Management. Data as at End January 2012. Source: BlackRock Investment Institute, Bloomberg.
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Latin America
40
Latin America ETFs multi-year asset growth

The 9-year CAGR for Latin America ETF AUM is 58.0%.
10
30
25 8 20 6 15 4 10
Assets (US$bn) ETF assets # ETFs
2002 0.1 1
2003 0.4 1
2004 0.4 2
2005 1.3 2
2006 2.7 2
2007 6.3 6
2008 5.5 10
2009 9.8 17
2010 10.1 26
2011 10.3 31
Jan-12 10.1 31
Note: CAGR = Compound Annual Growth Rate. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
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ETF providers in Latin America ranked by AUM

Commentary
At end January 2012, iShares was the largest provider in Latin America with 78% of AUM market share followed by BBVA Asset Management with 12% and Itau Unibanco with 10%. BBVA and Itau have gained market share in January from iShares. Collectively, the top three providers account for almost 100% of ETF AUM, which represents the highest concentration among the top three providers of any region. Providers as at end Jan 2012 (US$bn) AUM iShares BBVA Asset Management Itau Unibanco Protego Total 7.9 1.2 1.0 0.01 10.1 % market share 78.3 11.7 10.0 0.1 100.0 Jan-12 NNA (1.0) (0.05) (0.05) (0.02) (1.1) YTD NNA (1.0) (0.05) (0.05) (0.02) (1.1) YTD change % market share (1.8) 0.9 1.1 (0.2) -
AUM (0.3) 0.1 0.1 (0.02) (0.2)
% AUM (4.0) 6.3 10.5 (65.6) (1.8)
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Top 10 ETPs in Latin America ranked by AUM and ADV

Country listed
Mexico Brazil Colombia Mexico Brazil Mexico Mexico Mexico Mexico Mexico
Ranked by ADV1 as at End January 2012

1-month ADV
328.9 1.3 2.7 6.0 34.6 1.4 0.8 3.6 0.0 0.1
ETP (US$mn)
iShares NAFTRAC PIBB FUNDO INDICE BRASIL 50 iShares COLCAP BRTRAC 10 iShares Ibovespa Fundo de ndice iShares IPC Large Cap Total Return TRAC MEXTRAC CHNTRAC 11 iShares LATixx Mexico UDITRAC iShares Mexico Corporate Bond TRAC
Bloomberg ticker
NAFTRAC MM PIBB11 BZ ICOLCAP CB BRTRAC MM BOVA11 BZ ILCTRAC MM MEXTRAC MM CHNTRAC MM UDITRAC MM CORPTRC MM
AUM
5,642 957 782 634 523 483 346 167 133 125
ETP (US$mn)
iShares NAFTRAC iShares Ibovespa Fundo de ndice PowerShares QQQ Trust SPDR S&P 500 iShares MSCI Brazil Index Fund iShares MSCI Germany Index Fund BRTRAC 10 iShares MSCI Hong Kong Index Fund iShares Barclays Short Treasury Bond Fund iShares MSCI Japan Index Fund
Country Bloomberg listed ticker

Mexico Brazil Mexico Mexico Mexico Mexico Mexico Mexico Mexico Mexico NAFTRAC MM BOVA11 BZ QQQ* MM SPY* MM EWZ* MM EWG* MM BRTRAC MM EWH* MM SHV* MM EWJ* MM
AUM
5,642 523 31,0311 99,0461 10,4301 2,5791 634 2,1591 2,5681 4,9421
1-month ADV
328.9 34.6 25.91 9.41 7.31 6.61 6.0 5.61 5.41 4.81
1. For ETFs cross listed into Latin America from the United States, AUM reflects total global balances because we attribute all AUM to the country of listing for the purposed of this report. ADV reflects US dollar volume of the specific Latin American exchange listing shown. Note: ADV = Average Daily Volume. AUM = Assets Under Management. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
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Canada
44
Canada ETFs multi-year asset growth

The 10 year CAGR for Canada ETF AUM is 30.6%.
Assets US$bn 50 45 40 35 30 150 200 # products 250
25 20 15 10 5 0 0 50 100
Assets (US$bn) ETF assets # ETFs
2000 4.0 3
2001 3.1 14
2002 3.4 15
2003 5.5 16
2004 7.4 16
2005 10.6 20
2006 13.0 26
2007 18.0 46
2008 15.7 77
2009 28.5 110
2010 38.4 157
2011 42.3 227
Jan-12 45.8 230
Note: CAGR = Compound Annual Growth Rate. Data as at end January 2012. There are currently no primary listings of ETP products other than ETFs in Canada. Source: BlackRock Investment Institute, Bloomberg.
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ETF providers in Canada ranked by AUM

Commentary
At end of January 2012, iShares was the largest Canadian provider with 67% of AUM market share followed by Claymore Investments with 16% and BMO Asset Management with 10%. iShares lost market share of (0.7%) this month to BMO Asset Management, Claymore Investments, and PowerShares. Collectively, the top three providers account for 91.6% of ETP AUM. Providers as at end Jan 2012 (US$bn) iShares Claymore Investments BMO Asset Management BetaPro Management PowerShares Vanguard RBC Global Asset Management First Asset Management Total AUM 30.5 7.1 4.4 3.1 0.5 0.1 0.1 0.05 45.8 % market share 66.5 15.5 9.6 6.9 1.1 0.2 0.1 0.1 100.0 Jan-12 NNA 0.6 0.2 0.5 0.1 0.1 0.03 0.01 1.5 YTD NNA 0.6 0.2 0.5 0.1 0.1 0.03 0.01 1.5 AUM 2.1 0.5 0.6 0.1 0.1 0.04 0.01 0.002 3.5 YTD change % assets 7.3 8.2 17.2 4.2 33.0 63.3 12.7 5.4 8.4 % market share (0.7) (0.03) 0.7 (0.3) 0.2 0.1 0.01 (0.003)
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Top 10 ETPs in Canada ranked by AUM and ADV

Bloomberg ticker AUM
XIU CN 11,867
Ranked by ADV as at End January 2012

1-month ADV
203.9
ETP (US$mn)
iShares S&P/TSX 60 Index Fund
ETP (US$mn)
iShares S&P/TSX 60 Index Fund
Bloomberg 1-month ticker ADV AUM

XIU CN 203.9 11,867
iShares DEX Short Term Bond Index Fund
XSB CN
2,165
10.7
Horizons BetaPro NYMEX Natural Gas Bear Plus
HND CN
96.9
47
iShares DEX Universe Bond Index Fund
XBB CN
2,008
11.7
Horizons BetaPro NYMEX Natural Gas Bull Plus
HNU CN
61.1
200
iShares S&P 500 Index Fund (CAD-Hedged)
XSP CN
1,613
14.4
Horizons BetaPro NYMEX Crude Oil Bull Plus
HOU CN
40.8
160
iShares DEX All Corporate Bond Index Fund
XCB CN
1,592
8.5
Horizons BetaPro NYMEX Crude Oil Bear Plus
HOD CN
32.3
151
iShares S&P/TSX Global Gold Index Fund
XGD CN
1,368
21.8
iShares S&P/TSX Capped Energy Index Fund
XEG CN
26.3
905
iShares S&P/TSX Capped REIT Index Fund iShares S&P/TSX Capped Composite Index Fund Claymore 1-5 Yr Laddered Corporate Bond ETF Claymore 1-5 Yr Laddered Government Bond ETF
XRE CN
1,353
5.9
iShares S&P/TSX Global Gold Index Fund Horizons BetaPro S&P/TSX Global Gold Bull Plus ETF Horizons BetaPro S&P/TSX 60 Bull Plus Fund
XGD CN
21.8
1,368
XIC CN
1,303
5.1
HGU CN
21.7
168
CBO CN
1,166
4.3
HXU CN
20.3
87
CLF CN
1,013
4.6
Horizons BetaPro S&P/TSX 60 Bear Plus Fund
HXD CN
16.4
100
Note: ADV = Average Daily Volume. AUM = Assets Under Management. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
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Middle East and Africa
48
Middle East and Africa ETPs multi-year asset growth

The 10 year CAGR for the Middle East and Africa ETP AUM is 47.1%.
300 20 250
15
200
10
150
100 5 50
2000 0.0 1
2001 0.3 0.1 1 1
2002 0.6 0.1 3 1
2003 0.8 0.2 4 3
2004 1.2 0.5 5 18
2005 1.6 0.4 7 41
2006 1.2 4.5 8 94
2007 2.2 9.1 11 211
2008 1.2 8.1 17 246
2009 1.8 14.8 23 297
2010 2.3 17.3 29 327
2011 2.2 16.8 30 328
Jan-12 2.4 17.2 31 328
Note: Product level assets for ETPs listed in Israel are not currently available. An aggregate value has been included in the total assets. Latest data for Israel ETP assets sourced from Bank of Israel, as at end of December 2011. All other data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg, Bank of Israel.
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ETF providers in the Middle East and Africa ranked by AUM

Commentary
At end of January 2012, Satrix Managers was the largest Middle East and African ETF provider with 59% of AUM market share. During January, Satrix gained market share from STANLIB and db x-trackers. Collectively, the top three providers account for 85% of ETP AUM in this region. Providers as at end Jan 2012 (US$bn) Satrix Managers STANLIB db x-trackers Bips Investment Managers Fortress Asset Managers Absa Capital Investec Fund Management Falcom Financial Services Nedgroup Beta Solutions National Bank of Abu Dhabi HSBC/Hang Seng Total AUM 1.4 0.4 0.2 0.2 0.04 0.04 0.03 0.03 0.02 0.004 0.0001 2.4 % market share 59.1 15.8 10.1 7.8 1.8 1.6 1.4 1.2 1.0 0.2 0.002 100.0 AUM 0.2 0.03 0.01 0.01 0.003 0.003 0.002 0.001 0.01 (0.0001) 0.0 0.2 YTD change % AUM 12.1 8.8 5.5 6.5 8.6 9.1 6.3 2.1 142.8 (2.9) 6.0 10.7 % market share 0.8 (0.3) (0.5) (0.3) (0.03) (0.02) (0.1) (0.1) 0.6 (0.02) (0.0001)
Note: AUM = Assets Under Management. Product level and manager level AUMs for ETPs listed in Israel are not currently available. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
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Top 10 ETFs/ETPs in the Middle East and Africa ranked by AUM and ADV
Ranked by AUM as at End Jan 2012

Country listed
South Africa South Africa South Africa South Africa South Africa South Africa South Africa South Africa South Africa South Africa
Ranked by ADV as at End Jan 2012

1-month ADV
7.8 1.8 0.0 0.2 0.2 0.5 0.0 0.1 0.1 0.1
ETF (US$mn)
NewGold ETF SATRIX40 STANLIB SWIX 40 Fund Satrix Dividend Plus Bips Government Inflation Linked Bond Fund SATRIX Financials STANLIB Top 40 Fund SATRIX RAFI 40 Total Return db x-trackers MSCI World SATRIX Industrials
Bloomberg ticker
GLD SJ STX40 SJ STANSX SJ STXDIV SJ BIPINF SJ STXFIN SJ STAN40 SJ STXRAF SJ DBXWD SJ STXIND SJ
AUM
2,292 914 295 165 118 96 86 85 85 79
ETP (US$mn)
NewGold ETF2 NewGold ETF Tachlit 25 KSM TA 100 Clal Fin Bat-Mabat TA 25 Psagot Sal Bond 20 Clal Fin Bat-Mabat TA 100 Tachlit Tel Bond 20 Reinvest KSM25 Tachlit Short 25 (strike 1700)
Country listed
Botswana South Africa Israel Israel Israel Israel Israel Israel Israel Israel
Bloomberg 1-month ticker ADV

GLD BG GLD SJ TC25 IT KSM100 IT MTV251 IT TLTLBD1 IT MTV1002 IT TCMR16 IT KSM25 IT TGTA255 IT 13.7 7.8 6.7 5.0 3.1 3.1 2.7 2.7 2.6 2.5
AUM
2292 2292 NA1 NA1 NA1 NA1 NA1 NA1 NA1 NA1
1. Product level AUMs for ETPs listed in Israel are not currently available. 2. AUM on GLD BG reflects that of its primary listing in South Africa. Note: ADV = Average Daily Volume. AUM = Assets Under Management. Data as at end January 2012. Source: BlackRock Investment Institute, Bloomberg.
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About us
About the ETP Landscape: Industry Summary report For inquiries, contact ETPresearch@BlackRock.com The ETP Landscape: Industry Summary report provides a snapshot of ETP assets under management and asset flows at a combined global level as of the most recent month-end period. The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by the BlackRock Investment Institute including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind and the Bank of Israel. All amounts are reported in US dollars. Net new asset (NNA) flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute NNAs and assets under management (AUM) to the primary listings. For Middle East and Africa, NNA data is not available. AUM are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. Subscribe To receive the ETP Landscape series of reports at no cost, please subscribe via our website at www.blackrockinternational.com/etflsubscribe. About BlackRock BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At December 31, 2011, BlackRocks AUM was $3.513 trillion. BlackRock offers products that span the risk spectrum to meet clients needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares (exchangetraded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions. Headquartered in New York City, as of December 31, 2011, the firm has approximately 10,100 employees in 27 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com. About the BlackRock Investment Institute The BlackRock Investment Institute is a global platform that leverages BlackRocks expertise in markets, asset classes and client segments to generate investment insights that seek to enhance the firms ability to create a better financial future for clients. Launched in 2011, the Institute hosts a series of events through the BlackRock Investment Forum that foster debate around key investment themes. The Institutes goal is to produce a flow of information that makes BlackRocks portfolio managers better investors and helps deliver positive investment results for our clients. BlackRocks highly regarded ETP research is an reputable source of objective, trusted data and analysis for our clients, the firm, and the ETP industry as a whole.
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Disclaimer
Regulatory information BlackRock Advisors (UK) Limited (BlackRock), which is authorised and regulated by the Financial Services Authority in the UK, has issued this survey for access by professional investors (or professional clients, as such term may apply in relevant jurisdictions) only. Circulation must be restricted accordingly. This survey is provided for information purposes only and does not constitute an offer or solicitation to sell shares in any of the funds referred to, by anyone in any jurisdiction in which such offer, solicitation or distribution would be unlawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. This material is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. This material does not constitute investment, tax, legal or any other advice. Information and opinions contained in this material are derived from proprietary and non-proprietary sources and may been acted on by BlackRock for its own purposes. The views expressed do not necessarily reflect the views of BlackRock as a whole or any part thereof and are subject to change at any time and without notice. There is no guarantee that any forecasts made will come to pass. Affiliated companies of BlackRock may make markets in the securities of ETFs and provide ETFs in the form of iShares. Further, BlackRock and/or its affiliated companies and/or their employees may from time to time hold shares or holdings in the underlying shares of, or options on, any security of ETFs and may as principal or agent buy securities in ETFs. BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. This material or any portion hereof may not be reprinted, sold or redistributed without prior permission from BlackRock.
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53
Disclaimer (continued)
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54
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For investors in Norway: This document is directed at Professional Investors in Norway only and no other person should rely upon the information contained within it. Professional Investors means; eligible counterparties (certain regulated entities within the financial sector), or Legal entities meeting two of the three following criteria: a) Balance sheet of at least 20 million; b) Net turnover of at least 40 million; and c) Equity of at least 2 million or Other institutional investors whose main purpose is to invest in financial instruments. For investors in Portugal: This document has not been approved by the Comisso do Mercado dos Valores Mobilirios (the CMVM) and is not to be distributed to private investors in or from within Portugal. Qatar: Persons or entities to whom this document has been issued understands, acknowledges and agrees that this document has not been approved by the Qatar Central Bank, or any other government agency or authority in Qatar. Oman: Persons or entities to whom this document has been issued understands, acknowledges, and agrees that his document has not been registered or approved by the Central Bank of Oman or any other government agency or authority in Oman. For investors in the Kingdom of Saudi Arabia: This document is directed at Professional Investors in the Kingdom of Saudi Arabia only and no other person should rely upon the information contained within it. Notice to residents in Singapore: This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section 304A of the SFA. For investors in Spain: This document has not been approved by the Spanish Securities Market Commission and is not to be distributed to private investors in or from within Spain. For investors in Switzerland This document is directed at Qualified Investors in Switzerland only and no other person should rely upon the information contained within it. For investors in Sweden This document is directed at Professional Investors in Sweden only and no other person should rely upon the information contained within it. Notice to residents in Thailand: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand.
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For investors in the UAE: BlackRock Advisors (UK) Limited is regulated by the Dubai Financial Services Authority in the DIFC and authorised and regulated by the Financial Services Authority in the UK, has issued this document for access by Professional Clients and no other person should rely upon them information contained within it. The financial services to which the document relates are only available to Professional Clients. For investors in the United Kingdom: This document is directed at Professional Clients only within the meaning of the rules of the FSA. For investors in the United States: Information on funds and securities is provided by BlackRock and is strictly for informational purposes. It should not be deemed an offer to sell or a solicitation of an offer to buy shares of any securities, including the iShares Products, that are included in this report. Notice to residents in Vietnam: This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.
BlackRock is a trademark of the BlackRock Group registered, amongst others, in the United States, the European Union and other jurisdictions around the world. The trademarks and service marks contained herein 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. 2012 BlackRock Advisors (UK) Limited. Registered Company No 00796793. All rights reserved. Calls may be monitored or recorded. BLK-0128-0212
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Etfl Industryhilight Jan12

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ETP Landscape

Global Global ETP overview

VIII. Middle East and Africa

Global ETP overview

Jan-12 1,651 34.1 4,274

Dec-11 1,525 15.8 4,221

Jan-11 1,499 13.9 3,574

Monthly global NNA (US$bn)

Sep-11 Aug-11 Jul-11

Apr-11 Mar-11 Feb-11 Jan-11 (10) Equity

Commodities and other

Global ETP 2011 vs. 2012 flows by type of exposure

Jan 2012 NNA: US$34.1bn

Investment grade and high yield corporate bond ETP NNA

Global ETP assets by type of exposure

AUM % market share

1,155 611 222 119 83 69 50 271 195 5 8 2 15 1,650.8

United States versus Europe NNA by region of listing

Monthly NNA (US$bn) Listed in the United States

US equity Fixed income

All other equity Commodity and other

German equity Fixed income

All other equity Commodity and other

Global ETP average daily trading volume trends

Monthly Average Daily Volume (ADV)

United States (lhs)

Top 10 ETPs worldwide ranked by YTD Net New Assets (NNA)

Top 10 ETPs worldwide ranked by AUM

Top 10 ETPs worldwide ranked by ADV

Top 10 ETP providers worldwide ranked by AUM

Global ETP multi-year asset growth

2000 74.3 74.3 0.1 5.1 92 14

2001 104.8 104.7 0.1 0.0 3.9 202 17

2002 141.6 137.5 4.0 0.1 4.1 280 17

2003 212.0 205.9 5.8 0.3 6.3 282 18

2004 309.8 286.3 23.1 0.5 9.3 336 21

2005 412.1 389.6 21.3 1.2 15.9 461 63

2006 565.6 526.5 35.8 3.4 32.5 713 170

2007 796.7 729.9 59.9 6.3 54.6 1,170 371

2008 711.1 596.4 104.0 10.0 61.2 1,595 625

2009 1,036.0 841.6 167.0 25.6 119.7 1,944 750

2010 1,311.3 1,053.8 207.3 45.7 171.3 2,460 1,083

2011 1,350.9 1,057.4 257.7 31.1 173.5 3,011 1,210

Jan-12 1,460.4 1,149.2 270.8 35.4 190.4 3,063 1,211

ETP statistics by region

United States ETPs multi-year asset growth

2000 65.6 5.0 81 14

2001 84.6 3.8 101 17

2002 102.3 4.0 113 17

2003 150.7 6.1 117 17

2004 227.7 8.9 152 17

2005 299.4 14.4 201 20

2006 406.8 25.9 343 38

2007 580.7 40.5 601 72

2008 497.1 45.3 698 146

2009 705.5 88.1 772 153

2010 891.0 120.8 896 203

2011 940.4 121.4 1,098 272

Jan-12 1,017.0 134.0 1,120 272

United States ETP NNA by type of exposure: developed market equity

United States ETP NNA by type of exposure: commodities and other

Top 10 ETP providers in the United States ranked by AUM