ETF Research Center

iShares MSCI China Small Cap Index Fund seeks to track the performance of the MSCI China Small Cap Index Fund.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	BlackRock Fund Advisors
Website	www.ishares.com
Inception date	Sep 29, 2010
Assets (mns)	$21
Currency	USD
Expense ratio	59 bp
Distributions	Semi-Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust
Weighting	Market Cap
Index replication	n/a
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	248
Wgt avg mkt cap (mns)	$1,072
Large cap (>$10bn)	1.5%
Mid cap ($2-10bn)	12.0%
Small cap (<$2bn)	85.3%
Developed mkts	61.3%
Emerging mkts	38.7%

TOP TEN HOLDINGS
Total	13.9 %
ZAI LAB LTD. UNSPONSORED ADR	1.9 %
CNINSURE INC-ADR	1.9 %
CHINASOFT INTERNATIONAL LTD	1.4 %
GZI REAL ESTATE INVMNT TRUST	1.4 %
SEASPAN CORP	1.4 %
RENHE COMMERCIAL HOLDINGS	1.3 %
CHINA SCE PROPERTY HOLDINGS	1.2 %
CHINA OVERSEAS GRAND OCEANS	1.2 %
POWERLONG REAL ESTATE HOLDIN	1.1 %
GZI TRANSPORT LTD	1.1 %

TOP COUNTRY EXPOSURE
	CHINA	53.7 %
	HONG KONG	30.8 %
	SINGAPORE	0.3 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
1.6%	-3.1%	-0.2%	--	0.1%

Market Correlations
versus...	Beta	R-squared
S&P500	0.85	41%
MSCI EAFE	1.00	48%
MSCI Emg. Mkts.	0.91	64%

Technical Indicators
Recent close	$39.03
30d moving avg.	$39.61
Annualized volatility	15.9%
Short interest (ETF)	0.3%
Relative strength (RSI)	47

Liquidity measures
Avg. volume (thou.)	3
Turnover	0.6%
Bid/Ask (% of price)	0.68%
ADV underlying (mns)	$272

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the iShares MSCI China Small Cap ETF based on the alternatives' overlap in portfolio holdings with ECNS. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

ECNS

Expense:

59 bp

ALTAR Score™:

10.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ECNS
Ticker	Fund Name	Overlap¹ vs ECNS (%)	Expense ratio (bp)	Savings vs ECNS (bp)	ALTAR Score™ (%)	ALTAR vs ECNS (%)
HAO	Invesco China Small Cap ETF	24.0	75	-16	9.5	-0.5
FEMS	First Trust Emerging Markets Small Cap	10.0	80	-21	10.5	+0.5
EEMS	iShares MSCI Emerging Market Small Cap	9.4	67	-8	6.5	-3.5
EWX	SPDR S&P Emerging Markets Small Cap	8.8	65	-6	7.8	-2.2
KGRN	KraneShares MSCI China Environment Index	6.8	80	-21	10.2	+0.2
DGS	WisdomTree Emg. Mkts. Small Cap Dividend	6.6	63	-4	12.0	+2.1
TLTE	FlexShares Mngstr Emerging Markets Factor Tilt	4.2	59	0	10.5	+0.5
TAO	Invesco China Real Estate	3.9	70	-11	13.1	+3.2
PGJ	Invesco Golden Dragon China	3.2	70	-11	3.8	-6.2
CHNA	Loncar China BioPharma	3.2	79	-20	5.0	-4.9
EYLD	Cambria Emerging Shareholder Yield	2.7	66	-7	10.9	+0.9
GAMR	ETFMG Video Game Tech	2.3	75	-16	5.7	-4.2
KWEB	KraneShares CSI China Internet	2.2	76	-17	4.0	-6.0
GXC	SPDR S&P China ETF	2.1	59	0	9.2	-0.7
AVEM	Avantis Emerging Markets Equity	2.1	33	26	8.5	-1.5
PBD	Invesco Gbl Clean Energy	2.0	75	-16	-1.6	-11.5
TAN	Invesco Global Solar Energy	1.9	70	-11	-3.3	-13.3
VSS	Vanguard FTSE All World ex-US Small Cap	1.8	12	47	6.5	-3.5
CHIE	Global X MSCI China Energy	1.7	66	-7	8.1	-1.9
GEX	VanEck Vectors Global Alternative Energy	1.5	63	-4	4.0	-6.0

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	iShares MSCI China Small Cap
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	7.7	%
Divided by: Fwd. P/BV	0.7	x
Less: Expense ratio	59	bp
Equals: ALTAR Score	10.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.29	CATEGORY AVERAGE	1.49

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.