ETF Research Center

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

FUND BASICS
Category	International Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	May 10, 2000
Assets (mns)	$4,788
Currency	USD
Expense ratio	59 bp
Distributions	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	112
Wgt avg mkt cap (mns)	$86,657
Large cap (>$10bn)	68.5%
Mid cap ($2-10bn)	27.0%
Small cap (<$2bn)	4.6%
Developed mkts	0.0%
Emerging mkts	100.0%

TOP TEN HOLDINGS
Total	48.7 %
SAMSUNG ELECTRONICS CO LTD	24.1 %
HYNIX SEMICONDUCTOR INC	6.5 %
NHN CORP	3.2 %
KB FINANCIAL GROUP INC	2.3 %
POSCO	2.3 %
SHINHAN FINANCIAL GROUP LTD	2.2 %
HYUNDAI MOTOR CO	2.2 %
HYUNDAI MOBIS	2.1 %
CELLTRION INC	2.0 %
LG CHEM LTD	1.9 %

TOP COUNTRY EXPOSURE
	SOUTH KOREA	97.6 %

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.
7.9%	7.9%	4.4%	4.3%	7.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.95	34%
MSCI EAFE	1.43	64%
MSCI Emg. Mkts.	1.15	72%

Technical Indicators
Recent close	$63.25
30d moving avg.	$61.90
Annualized volatility	19.6%
Short interest (ETF)	3.7%
Relative strength (RSI)	65

Liquidity measures
Avg. volume (thou.)	3,268
Turnover	4.3%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$2,859

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

EWY

Expense:

59 bp

ALTAR Score™:

9.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH EWY
Ticker	Fund Name	Overlap¹ vs EWY (%)	Expense ratio (bp)	Savings vs EWY (bp)	ALTAR Score™ (%)	ALTAR vs EWY (%)
FLKR	Franklin FTSE South Korea	86.8	9	50	9.8	+0.6
FKO	First Trust South Korea AlphaDEX	41.7	80	-21	11.5	+2.4
BICK	First Trust BICK Index Fund	23.0	64	-5	5.0	-4.2
FPA	First Trust Asia Pac Ex-Japan AlphaDEX	21.7	80	-21	8.5	-0.7
AIA	iShares S&P Asia 50	21.6	50	9	8.6	-0.6
FRDM	Freedom 100 Emerging Markets ETF	20.8	49	10	7.8	-1.4
KEMX	KraneShares MSCI Emerging Markets EX China Index	18.7	49	10	8.2	-1.0
EMXC	iShares MSCI Emerging Markets ex China	17.2	49	10	8.1	-1.1
DOGS	Arrow Dogs of the World	16.7	164	-105	10.2	+1.0
UEVM	USAA MSCI Emerging Markets Value Momentum Blend Index	15.9	45	14	12.7	+3.5
XCEM	Columbia EM Core ex-China	15.7	16	43	7.4	-1.8
REEM	Invesco Emerging Markets Revenue ETF	15.7	46	13	11.2	+2.1
EEMA	iShares MSCI Emg Mkts Asia	15.7	50	9	8.2	-1.0
MFEM	PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity	14.8	49	10	8.5	-0.6
JHEM	John Hancock Multifactor Emerging Markets	13.7	55	4	8.3	-0.9
AAXJ	iShares MSCI Asia ex-Japan	13.1	67	-8	7.7	-1.5
GEM	Goldman Sachs ActiveBeta Emg Mkts Equity	13.0	45	14	8.5	-0.7
FLAX	Franklin FTSE Asia Ex Japan	12.6	19	40	8.1	-1.1
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	12.4	30	29	8.0	-1.2
XSOE	WisdomTree Emg Mkt ex-SOE	12.3	32	27	6.4	-2.8

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 Korea
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	8.6	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	59	bp
Equals: ALTAR Score	9.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.29	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.