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)	$2,054
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	306
Wgt avg mkt cap (mns)	$109,996
Large cap (>$10bn)	68.2%
Mid cap ($2-10bn)	29.5%
Small cap (<$2bn)	1.7%
Developed mkts	6.8%
Emerging mkts	91.4%

TOP TEN HOLDINGS
Total	27.5 %
ALIBABA GROUP HOLDING LTD. SPONSOR	6.2 %
TENCENT HOLDINGS LTD	5.3 %
TAIWAN SEMICONDUCTOR MANUFAC	5.0 %
SAMSUNG ELECTRONICS CO LTD	3.9 %
PING AN INSURANCE GROUP CO-H	1.3 %
NASPERS LTD-N SHS	1.3 %
HOUSING DEVELOPMENT FINANCE	1.2 %
E.SUN FINANCIAL HOLDING CO	1.1 %
BM&FBOVESPA SA	1.1 %
CHINA CONSTRUCTION BANK-H	1.1 %

TOP COUNTRY EXPOSURE
	CHINA	29.4 %
	TAIWAN	12.5 %
	SOUTH KOREA	11.5 %
	INDIA	9.3 %
	BRAZIL	6.7 %
	SOUTH AFRICA	5.1 %
	RUSSIA	4.1 %
	HONG KONG	3.3 %
	THAILAND	3.1 %
	MALAYSIA	2.7 %

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.
-5.5%	2.4%	--	--	9.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.90	53%
MSCI EAFE	1.14	71%
MSCI Emg. Mkts.	1.01	96%

Technical Indicators
Recent close	$33.67
30d moving avg.	$35.65
Annualized volatility	15.0%
Short interest (ETF)	1.1%
Relative strength (RSI)	45

Liquidity measures
Avg. volume (thou.)	1,805
Turnover	3.0%
Bid/Ask (% of price)	0.10%
ADV underlying (mns)	$17,984

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the iShares ESG MSCI EM ETF 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™:

8.6%

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 (%)
EEM	iShares MSCI Emerging Markets ETF	55.0	68	-43	8.1	-0.5
EMSG	Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF	54.7	20	5	7.6	-1.0
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free ETF	53.5	30	-5	8.1	-0.5
DBEM	Xtrackers MSCI Emerging Markets Hedged Equity ETF	52.2	65	-40	8.1	-0.6
GEM	Goldman Sachs ActiveBeta Emerging Markets Equity ETF	51.6	45	-20	8.9	+0.3
EEMA	iShares MSCI Emerging Markets Asia ETF	50.6	50	-25	8.3	-0.3
IEMG	iShares Core MSCI Emerging Markets ETF	50.2	14	11	8.5	-0.1
AAXJ	iShares MSCI All Country Asia ex Japan ETF	47.4	68	-43	7.8	-0.8
JHEM	John Hancock Multifactor Emerging Markets ETF	47.4	55	-30	8.8	+0.2
FLAX	Franklin FTSE Asia Ex Japan ETF	46.9	19	6	8.3	-0.3
SCHE	Schwab Emerging Markets Equity ETF	46.9	13	12	8.2	-0.4
NUEM	Nuveen ESG Emerging Markets Equity ETF	46.1	45	-20	7.6	-1.1
XSOE	WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	46.0	32	-7	6.8	-1.8
PBEE	Invesco PureBeta FTSE Emerging Markets ETF	43.2	14	11	8.9	+0.3
VWO	Vanguard FTSE Emerging Markets ETF	42.4	10	15	8.3	-0.3
RFEM	First Trust Riverfront Dynamic Emerging Markets ETF	39.6	95	-70	10.8	+2.2
KEMX	KraneShares MSCI Emerging Markets EX China Index ETF	39.3	49	-24	8.3	-0.4
BKF	iShares MSCI BRIC ETF	38.6	69	-44	8.2	-0.4
SPEM	SPDR Portfolio Emerging Markets ETF	37.7	11	14	8.3	-0.3
EMXC	iShares MSCI Emerging Markets ex China ETF	36.9	49	-24	8.4	-0.2

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 ESG MSCI EM 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	12.6	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	25	bp
Equals: ALTAR Score	8.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.46	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.