ETF Research Center

iShares High Dividend Equity Fund seeks to track the performance of the Morningstar Dividend Yield Focus Index.

FUND BASICS
Category	US Equities
Fund Sponsor	BlackRock Fund Advisors
Website	www.ishares.com
Inception date	Mar 31, 2011
Assets (mns)	$7,501
Currency	USD
Expense ratio	8 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust
Weighting	Dividend
Index replication	n/a
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	75
Wgt avg mkt cap (mns)	$191,478
Large cap (>$10bn)	97.8%
Mid cap ($2-10bn)	2.1%
Small cap (<$2bn)	0.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	61.0 %
AT&T INC	9.8 %
EXXON MOBIL CORP	9.1 %
JOHNSON & JOHNSON	6.7 %
VERIZON COMMUNICATIONS INC	6.4 %
WELLS FARGO & CO	5.9 %
CHEVRON CORP	5.8 %
PFIZER INC	5.1 %
PROCTER & GAMBLE CO/THE	4.8 %
COCA-COLA CO/THE	3.8 %
CISCO SYSTEMS INC	3.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	98.4 %
	IRELAND	0.8 %
	BRITAIN	0.2 %
	NETHERLANDS	0.1 %

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.
15.2%	10.7%	8.1%	--	10.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.77	75%
MSCI EAFE	0.69	52%
MSCI Emg. Mkts.	0.44	34%

Technical Indicators
Recent close	$95.86
30d moving avg.	$94.55
Annualized volatility	10.7%
Short interest (ETF)	0.3%
Short interest (Underlying)	1.8%
Relative strength (RSI)	64

Liquidity measures
Avg. volume (thou.)	264
Turnover	0.3%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$17,015

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

HDV

Expense:

8 bp

ALTAR Score™:

6.6%

ALTERNATIVE ETFs BASED ON OVERLAP WITH HDV
Ticker	Fund Name	Overlap¹ vs HDV (%)	Expense ratio (bp)	Savings vs HDV (bp)	ALTAR Score™ (%)	ALTAR vs HDV (%)
DURA	VanEck Vectors Morningstar Durable Dividend	48.4	29	-21	6.7	+0.1
FDL	First Trust Morningstar Dividend Leaders	46.1	45	-37	8.5	+1.9
OUSA	O'Shares FTSE U.S. Quality Dividend	44.8	48	-40	5.9	-0.7
DHS	WisdomTree Equity Income	43.9	38	-30	7.3	+0.6
SCHD	Schwab US Dividend Equity	42.1	6	2	7.3	+0.7
JKF	iShares Morningstar Large Value	41.0	25	-17	7.7	+1.1
VYM	Vanguard High Dividend Yield ETF	40.9	6	2	7.2	+0.6
OYLD	Invesco Russell 1000 Yield Factor ETF	40.0	19	-11	7.0	+0.4
PWV	Invesco Dynamic Large Cap Value	36.0	55	-47	7.9	+1.3
DJD	Invesco Dow Jones Industrial Average Dividend	34.9	7	1	7.3	+0.7
MGV	Vanguard Mega Cap 300 Value	32.3	7	1	7.0	+0.4
DGRO	iShares Core Dividend Growth	31.7	8	0	6.4	-0.2
PFM	Invesco Dividend Achievers	31.4	54	-46	5.4	-1.2
SCHV	Schwab U.S. Large-Cap Value	30.5	4	4	7.0	+0.3
ACIO	Aptus Collared Income Opportunity	30.1	79	-71	6.7	+0.1
IWX	iShares Russell Top 200 Value	30.1	20	-12	6.9	+0.3
SPHQ	Invesco S&P High Quality Portfolio	30.0	15	-7	5.6	-1.0
DLN	WisdomTree Large Cap Dividend	29.9	28	-20	6.5	-0.2
USDY	Pacific Global US Equity Income	29.0	29	-21	7.6	+1.0
VTV	Vanguard Value ETF	28.9	4	4	7.2	+0.6

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 High Dividend
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	15.4	%
Divided by: Fwd. P/BV	2.3	x
Less: Expense ratio	8	bp
Equals: ALTAR Score	6.6	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.65	CATEGORY AVERAGE	1.55

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.