ETF Research Center

The iShares MSCI Hong Kong Index fund seeks investment results that correspond to the price and yield performance of the MSCI Hong Kong Index. The index consists primarily of large cap stocks traded on the Hong Kong Stock Exchange.

FUND BASICS
Category	International Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	Mar 18, 1996
Assets (mns)	$1,866
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	Optimized
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	44
Wgt avg mkt cap (mns)	$53,053
Large cap (>$10bn)	93.0%
Mid cap ($2-10bn)	5.8%
Small cap (<$2bn)	0.0%
Developed mkts	96.7%
Emerging mkts	3.3%

TOP TEN HOLDINGS
Total	63.0 %
AIA GROUP LTD	25.0 %
HONG KONG EXCHANGES & CLEAR	7.9 %
CK HUTCHISON HOLDINGS LTD	4.8 %
SUN HUNG KAI PROPERTIES	4.6 %
LINK REIT	4.1 %
HONG KONG & CHINA GAS	3.7 %
CK ASSET HOLDINGS LIMITED	3.5 %
CLP HOLDINGS LTD	3.2 %
GALAXY ENTERTAINMENT GROUP L	3.2 %
HANG SENG BANK LTD	3.0 %

TOP COUNTRY EXPOSURE
	HONG KONG	92.0 %
	MACAU	3.3 %
	BERMUDA	2.5 %
	CHINA	1.1 %

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.
10.6%	10.6%	6.7%	7.7%	5.6%

Market Correlations
versus...	Beta	R-squared
S&P500	0.86	46%
MSCI EAFE	1.13	65%
MSCI Emg. Mkts.	0.94	77%

Technical Indicators
Recent close	$25.54
30d moving avg.	$24.32
Annualized volatility	15.4%
Short interest (ETF)	9.6%
Relative strength (RSI)	76

Liquidity measures
Avg. volume (thou.)	4,887
Turnover	6.7%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$1,237

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

EWH

Expense:

48 bp

ALTAR Score™:

6.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH EWH
Ticker	Fund Name	Overlap¹ vs EWH (%)	Expense ratio (bp)	Savings vs EWH (bp)	ALTAR Score™ (%)	ALTAR vs EWH (%)
ZHOK	SPDR Solactive Hong Kong	82.8	14	34	6.5	+0.0
FLHK	Franklin FTSE Hong Kong	82.6	9	39	6.9	+0.4
2800-HK	Tracker Fund of Hong Kong	36.0	9	39	9.8	+3.3
FHK	First Trust Hong Kong	33.7	80	-32	8.5	+2.1
EPP	iShares MSCI Pacific ex-Japan	29.6	48	0	6.0	-0.5
BBAX	JPMorgan BetaBuilders Developed Asia ex-Japan	26.2	19	29	6.2	-0.3
TAO	Invesco China Real Estate	22.4	70	-22	11.7	+5.2
SCIX	Global X Scientific Beta Asia ex-Japan	18.9	38	10	5.8	-0.7
AIA	iShares S&P Asia 50	16.8	50	-2	8.5	+2.0
DRW	WisdomTree Global ex-US Real Estate	13.1	58	-10	8.4	+1.9
IFGL	iShares FTSE EPRA/NARIET Developed REIT	12.9	48	0	6.3	-0.2
FPA	First Trust Asia Pac Ex-Japan AlphaDEX	11.7	80	-32	8.2	+1.8
WPS	iShares S&P Developed ex-US Property	11.4	48	0	6.6	+0.1
AAXJ	iShares MSCI Asia ex-Japan	9.8	67	-19	7.4	+1.0
DBAP	Xtrackers MSCI Asia Pacific Ex-Japan Hedged	9.5	10	38	7.7	+1.2
VNQI	Vanguard Global ex-US Real Estate	9.3	12	36	8.4	+1.9
FLAX	Franklin FTSE Asia Ex Japan	9.3	19	29	7.9	+1.4
AXJL	WisdomTree Asia Pacific Ex-Japan	8.8	48	0	8.5	+2.0
EFAV	iShares MSCI EAFE Minimum Volatility	8.5	20	28	5.6	-0.9
GQRE	FlexShares Global Quality Real Estate	8.3	45	3	6.3	-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

	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 Hong Kong
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	8.6	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	48	bp
Equals: ALTAR Score	6.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.43	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.