ETF Research Center

The iShares MSCI EAFE ESG Optimized ETF& tracks an index of developed market international companies that have been selected and weighted for positive environmental, social, and governance characteristics.

FUND BASICS
Category	International Equities
Fund Sponsor	BlackRock
Website	www.ishares.com
Inception date	Jun 28, 2016
Assets (mns)	$1,299
Currency	USD
Expense ratio	20 bp
Distributions	Semi-Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Principles-based
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	457
Wgt avg mkt cap (mns)	$58,043
Large cap (>$10bn)	85.5%
Mid cap ($2-10bn)	13.9%
Small cap (<$2bn)	0.3%
Developed mkts	99.8%
Emerging mkts	0.2%

TOP TEN HOLDINGS
Total	11.8 %
NESTLE SA-REG	2.3 %
ROCHE HOLDING AG-GENUSSCHEIN	1.5 %
BP PLC	1.2 %
TOYOTA MOTOR CORP	1.2 %
TOTAL SA	1.0 %
SIEMENS AG-REG	0.9 %
ASML HOLDING NV	0.9 %
ALLIANZ SE-REG	0.9 %
ASTRAZENECA PLC	0.9 %
AIA GROUP LTD	0.9 %

TOP COUNTRY EXPOSURE
	JAPAN	24.4 %
	BRITAIN	15.4 %
	FRANCE	10.5 %
	SWITZERLAND	9.4 %
	GERMANY	7.5 %
	AUSTRALIA	6.7 %
	NETHERLANDS	4.3 %
	HONG KONG	3.0 %
	SPAIN	2.8 %
	SWEDEN	2.7 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
18.0%	12.4%	--	--	9.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.75	65%
MSCI EAFE	0.99	98%
MSCI Emg. Mkts.	0.70	79%

Technical Indicators
Recent close	$67.31
30d moving avg.	$65.37
Annualized volatility	11.2%
Short interest (ETF)	0.1%
Relative strength (RSI)	65

Liquidity measures
Avg. volume (thou.)	196
Turnover	1.0%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$33,405

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

ESGD

Expense:

20 bp

ALTAR Score™:

6.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ESGD
Ticker	Fund Name	Overlap¹ vs ESGD (%)	Expense ratio (bp)	Savings vs ESGD (bp)	ALTAR Score™ (%)	ALTAR vs ESGD (%)
EFA	iShares MSCI EAFE	70.0	31	-11	7.0	+0.1
EFAX	SPDR MSCI EAFE Fossil Fuel Free	69.2	20	0	7.1	+0.3
DBEF	Xtrackers MSCI EAFE Hedged	68.3	35	-15	6.8	-0.0
HFXI	IQ 50 Percent Hedged FTSE Int'l	67.1	20	0	7.2	+0.4
PBDM	Invesco PureBeta FTSE Developed ex-North America	63.5	7	13	7.5	+0.7
IEFA	iShares Core MSCI EAFE	61.7	7	13	7.1	+0.2
JHMD	John Hancock Multifactor Developed International	61.0	45	-25	7.2	+0.4
EASG	Xtrackers MSCI EAFE ESG Leaders Equity	60.4	14	6	6.7	-0.2
SCHF	Schwab International Equity	59.4	6	14	7.4	+0.5
QEFA	SPDR MSCI EAFE Quality Mix	57.9	30	-10	6.6	-0.3
IDEV	iShares Core MSCI Int'l Developed Markets	56.9	5	15	7.1	+0.3
SPDW	SPDR Portfolio World ex-US	56.4	4	16	7.2	+0.3
DOL	WisdomTree Int'l Large Cap Dividend	56.3	48	-28	7.7	+0.8
DWM	WisdomTree DEFA Fund	55.5	48	-28	7.7	+0.8
DBEU	Xtrackers Europe Hedged	55.3	45	-25	6.4	-0.4
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	55.2	35	-15	7.8	+0.9
BBEU	JPMorgan BetaBuilders Europe	55.2	9	11	6.9	+0.0
IEV	iShares S&P Europe 350	54.9	59	-39	6.4	-0.5
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE	54.6	30	-10	6.7	-0.2
FLEE	Franklin FTSE Europe	54.5	9	11	6.9	+0.0

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 EAFE ESG Optimized
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	10.7	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	20	bp
Equals: ALTAR Score	6.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.63	CATEGORY AVERAGE	1.63

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.