ETF Research Center

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

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	BlackRock
Website	www.ishares.com
Inception date	Jun 28, 2016
Assets (mns)	$755
Currency	USD
Expense ratio	25 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	311
Wgt avg mkt cap (mns)	$88,211
Large cap (>$10bn)	68.6%
Mid cap ($2-10bn)	28.8%
Small cap (<$2bn)	1.8%
Developed mkts	7.8%
Emerging mkts	90.4%

TOP TEN HOLDINGS
Total	24.9 %
TAIWAN SEMICONDUCTOR MANUFAC	5.1 %
TENCENT HOLDINGS LTD	4.5 %
ALIBABA GROUP HOLDING LTD. SPONSOR	4.5 %
SAMSUNG ELECTRONICS CO LTD	3.9 %
PING AN INSURANCE GROUP CO-H	1.2 %
CHINA CONSTRUCTION BANK-H	1.2 %
E.SUN FINANCIAL HOLDING CO	1.2 %
BM&FBOVESPA SA	1.1 %
NASPERS LTD-N SHS	1.1 %
HOUSING DEVELOPMENT FINANCE	1.0 %

TOP COUNTRY EXPOSURE
	CHINA	24.7 %
	TAIWAN	13.0 %
	SOUTH KOREA	12.4 %
	INDIA	9.1 %
	BRAZIL	6.7 %
	SOUTH AFRICA	5.3 %
	RUSSIA	4.2 %
	HONG KONG	4.1 %
	THAILAND	3.7 %
	MALAYSIA	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.
11.6%	12.9%	--	--	9.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.84	48%
MSCI EAFE	1.09	69%
MSCI Emg. Mkts.	1.00	95%

Technical Indicators
Recent close	$34.33
30d moving avg.	$34.08
Annualized volatility	14.6%
Short interest (ETF)	1.5%
Relative strength (RSI)	66

Liquidity measures
Avg. volume (thou.)	141
Turnover	0.6%
Bid/Ask (% of price)	0.16%
ADV underlying (mns)	$13,027

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

ESGE

Expense:

25 bp

ALTAR Score™:

9.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ESGE
Ticker	Fund Name	Overlap¹ vs ESGE (%)	Expense ratio (bp)	Savings vs ESGE (bp)	ALTAR Score™ (%)	ALTAR vs ESGE (%)
EMSG	Xtrackers MSCI Emerging Markets ESG Leaders Equity	55.1	20	5	8.3	-1.1
EEM	iShares MSCI Emerging Markets	54.5	67	-42	8.6	-0.7
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	52.7	30	-5	8.6	-0.8
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	52.3	65	-40	8.5	-0.8
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	49.8	45	-20	9.2	-0.1
IEMG	iShares Core MSCI Emerging Markets	49.6	14	11	8.7	-0.7
EEMA	iShares MSCI Emg Mkts Asia	49.4	50	-25	8.7	-0.6
AAXJ	iShares MSCI Asia ex-Japan	46.4	67	-42	8.3	-1.1
JHEM	John Hancock Multifactor Emerging Markets	46.1	55	-30	8.9	-0.5
FLAX	Franklin FTSE Asia Ex Japan	45.8	19	6	8.7	-0.6
SCHE	Schwab Emerging Markets Equity	45.4	13	12	8.7	-0.6
XSOE	WisdomTree Emg Mkt ex-SOE	43.1	32	-7	7.0	-2.4
PBEE	Invesco PureBeta FTSE Emerging Markets	42.9	14	11	9.3	-0.1
NUEM	NuShares ESG Emerging Markets Equity	42.7	45	-20	8.5	-0.9
KEMX	KraneShares MSCI Emerging Markets EX China Index	40.7	49	-24	8.7	-0.6
VWO	Vanguard Emerging Markets	40.4	12	13	8.8	-0.6
EMXC	iShares MSCI Emerging Markets ex China	38.0	49	-24	8.7	-0.7
BKF	iShares MSCI BRIC	37.3	67	-42	8.9	-0.5
SPEM	SPDR Portfolio Emerging Markets	37.1	11	14	8.5	-0.9
RFEM	First Trust Riverfront Dynamic Emerging Markets	36.8	95	-70	10.8	+1.4

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 EM 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	13.4	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	25	bp
Equals: ALTAR Score	9.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	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.