ETF Research Center

iShares MSCI Europe Financial Sector Index Fund is an exchange-traded fund incorporated in the USA. The Fund seeks results that correspond generally to the price and yield performance of the MSCI Europe Financial Sector Index.

FUND BASICS
Category	International Equities
Fund Sponsor	BlackRock Fund Advisors
Website	www.ishares.com
Inception date	Jan 22, 2010
Assets (mns)	$884
Currency	USD
Expense ratio	48 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	82
Wgt avg mkt cap (mns)	$52,383
Large cap (>$10bn)	92.3%
Mid cap ($2-10bn)	7.7%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	41.9 %
HSBC HOLDINGS PLC	9.3 %
ALLIANZ SE-REG	6.2 %
BANCO SANTANDER SA	4.0 %
BNP PARIBAS	3.8 %
ZURICH FINANCIAL SERVICES AG	3.7 %
LLOYDS BANKING GROUP PLC	3.2 %
AXA SA	3.1 %
UBS GROUP AG	3.0 %
PRUDENTIAL PLC	2.9 %
ING GROEP NV	2.7 %

TOP COUNTRY EXPOSURE
	BRITAIN	28.3 %
	SWITZERLAND	14.3 %
	GERMANY	12.6 %
	FRANCE	11.0 %
	SPAIN	7.8 %
	ITALY	6.5 %
	SWEDEN	5.0 %
	NETHERLANDS	4.9 %
	FINLAND	2.8 %
	BELGIUM	2.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
20.6%	20.6%	1.9%	--	2.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.93	42%
MSCI EAFE	1.42	79%
MSCI Emg. Mkts.	0.97	64%

Technical Indicators
Recent close	$19.21
30d moving avg.	$19.24
Annualized volatility	17.5%
Short interest (ETF)	3.3%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	779
Turnover	1.7%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$4,363

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

EUFN

Expense:

48 bp

ALTAR Score™:

8.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH EUFN
Ticker	Fund Name	Overlap¹ vs EUFN (%)	Expense ratio (bp)	Savings vs EUFN (bp)	ALTAR Score™ (%)	ALTAR vs EUFN (%)
RIDV	Invesco International Ultra Dividend Revenue ETF	23.9	42	6	8.8	+0.2
IXG	iShares S&P Global Financial Sector	22.6	46	2	8.0	-0.7
FDD	First Trust STOXX European Select Dividend	22.3	57	-9	7.3	-1.4
QGBR	SPDR MSCI UK Quality Mix	19.3	14	34	7.5	-1.2
EWU	iShares MSCI United Kingdom	19.2	47	1	7.0	-1.7
EFV	iShares MSCI EAFE Value	19.2	38	10	8.8	+0.1
HDEF	Xtrackers MSCI EAFE High Div Yld Hedged	18.2	20	28	8.4	-0.3
FLGB	Franklin FTSE United Kingdom	18.0	9	39	7.4	-1.2
CID	Victory CEMP International High Div Volatility Wtd	17.5	45	3	8.6	-0.1
IEV	iShares S&P Europe 350	17.2	59	-11	6.1	-2.6
FEZ	SPDR DJ Euro Stoxx 50	17.0	29	19	6.7	-1.9
BBEU	JPMorgan BetaBuilders Europe	16.7	9	39	6.6	-2.1
DBEU	Xtrackers Europe Hedged	16.7	45	3	6.1	-2.5
EURZ	Xtrackers Eurozone Equity	16.5	9	39	6.8	-1.9
EZU	iShares MSCI Euro Monetary Union	16.5	47	1	6.5	-2.2
FGD	First Trust DJ Global Select Dividend	16.5	58	-10	9.2	+0.5
HFXE	IQ 50 PERCENT HEDGED FTSE EUROPE	16.5	30	18	6.4	-2.3
FLEE	Franklin FTSE Europe	16.5	9	39	6.6	-2.1
FLEH	Franklin FTSE Europe Hedged	16.2	9	39	6.6	-2.1
GSEU	Goldman Sachs ActiveBeta Europe Equity	15.5	25	23	6.1	-2.6

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 Europe Financial Sector
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	8.0	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	48	bp
Equals: ALTAR Score	8.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.71	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.