ETF Research Center

The iShares MSCI Emerging Markets Index fund seeks investment results that correspond to the price and yield performance of the MSCI Emerging Markets Index. The index consists of the stocks in developing economies around the world.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	Apr 11, 2003
Assets (mns)	$28,860
Currency	USD
Expense ratio	68 bp
Distributions	Semi-Annually

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	1216
Wgt avg mkt cap (mns)	$109,270
Large cap (>$10bn)	70.5%
Mid cap ($2-10bn)	27.2%
Small cap (<$2bn)	1.3%
Developed mkts	7.4%
Emerging mkts	90.1%

TOP TEN HOLDINGS
Total	25.9 %
ALIBABA GROUP HOLDING LTD. SPONSOR	6.0 %
TENCENT HOLDINGS LTD	5.0 %
TAIWAN SEMICONDUCTOR MANUFAC	4.5 %
SAMSUNG ELECTRONICS CO LTD	4.0 %
CHINA CONSTRUCTION BANK-H	1.3 %
NASPERS LTD-N SHS	1.3 %
PING AN INSURANCE GROUP CO-H	1.1 %
RELIANCE INDUSTRIES LTD	1.0 %
HOUSING DEVELOPMENT FINANCE	0.9 %
CHINA MOBILE LIMITED	0.8 %

TOP COUNTRY EXPOSURE
	CHINA	29.8 %
	SOUTH KOREA	12.1 %
	TAIWAN	11.7 %
	INDIA	8.8 %
	BRAZIL	7.1 %
	HONG KONG	4.7 %
	SOUTH AFRICA	4.5 %
	RUSSIA	3.8 %
	MEXICO	2.4 %
	THAILAND	2.3 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-6.2%	0.5%	3.8%	3.1%	9.9%

Market Correlations
versus...	Beta	R-squared
S&P500	0.90	50%
MSCI EAFE	1.20	73%
MSCI Emg. Mkts.	1.04	95%

Technical Indicators
Recent close	$43.54
30d moving avg.	$44.43
Annualized volatility	15.5%
Short interest (ETF)	14.3%
Relative strength (RSI)	48

Liquidity measures
Avg. volume (thou.)	73,317
Turnover	11.1%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$49,975

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

EEM

Expense:

68 bp

ALTAR Score™:

7.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH EEM
Ticker	Fund Name	Overlap¹ vs EEM (%)	Expense ratio (bp)	Savings vs EEM (bp)	ALTAR Score™ (%)	ALTAR vs EEM (%)
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	92.7	65	3	7.7	-0.0
IEMG	iShares Core MSCI Emerging Markets	88.4	14	54	8.1	+0.4
SCHE	Schwab Emerging Markets Equity	77.6	13	55	7.9	+0.2
VWO	Vanguard Emerging Markets	73.5	10	58	8.0	+0.3
AAXJ	iShares MSCI Asia ex-Japan	73.5	68	0	7.5	-0.3
EEMA	iShares MSCI Emg Mkts Asia	72.5	50	18	8.0	+0.2
FLAX	Franklin FTSE Asia Ex Japan	70.5	19	49	8.0	+0.2
PBEE	Invesco PureBeta FTSE Emerging Markets	70.0	14	54	8.5	+0.8
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	69.8	30	38	7.8	+0.0
JHEM	John Hancock Multifactor Emerging Markets	69.1	55	13	8.4	+0.6
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	66.5	45	23	8.5	+0.8
TLTE	FlexShares Mngstr Emerging Markets Factor Tilt	59.5	59	9	12.7	+5.0
XSOE	WisdomTree Emg Mkt ex-SOE	59.2	32	36	6.5	-1.3
SPEM	SPDR Portfolio Emerging Markets	57.2	11	57	8.0	+0.3
ESGE	iShares MSCI EM ESG Optimized	55.3	25	43	8.3	+0.5
EMXC	iShares MSCI Emerging Markets ex China	53.8	49	19	8.1	+0.3
BKF	iShares MSCI BRIC	53.4	69	-1	7.9	+0.1
QEMM	SPDR MSCI Emerging Markets Quality Mix	50.8	30	38	8.6	+0.9
EMSG	Xtrackers MSCI Emerging Markets ESG Leaders Equity	50.1	20	48	7.3	-0.4
KEMX	KraneShares MSCI Emerging Markets EX China Index	49.1	49	19	7.9	+0.1

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
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 Emerging Markets ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	12.4	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	68	bp
Equals: ALTAR Score	7.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.43	CATEGORY AVERAGE	1.48

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.