ETF Research Center

The iShares U.S. Broker-Dealers Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Select Investment Services Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	May 05, 2006
Assets (mns)	$242
Currency	USD
Expense ratio	42 bp
Distributions	Quarterly

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	26
Wgt avg mkt cap (mns)	$46,014
Large cap (>$10bn)	81.5%
Mid cap ($2-10bn)	14.7%
Small cap (<$2bn)	3.8%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	77.3 %
GOLDMAN SACHS GROUP INC	17.8 %
CME GROUP INC	17.5 %
MORGAN STANLEY	10.6 %
RAYMOND JAMES FINANCIAL INC	4.6 %
NASDAQ OMX GROUP/THE	4.6 %
SCHWAB (CHARLES) CORP	4.5 %
MARKETAXESS HOLDINGS INC	4.5 %
INTERCONTINENTALEXCHANGE INC	4.5 %
CBOE HOLDINGS INC	4.5 %
E*TRADE FINANCIAL CORP	4.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.8 %

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.
16.5%	7.7%	11.6%	10.6%	4.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.87	41%
MSCI EAFE	0.56	14%
MSCI Emg. Mkts.	0.34	9%

Technical Indicators
Recent close	$66.38
30d moving avg.	$63.73
Annualized volatility	16.4%
Short interest (ETF)	0.5%
Short interest (Underlying)	2.7%
Relative strength (RSI)	79

Liquidity measures
Avg. volume (thou.)	57
Turnover	1.6%
Bid/Ask (% of price)	0.07%
ADV underlying (mns)	$2,142

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

IAI

Expense:

42 bp

ALTAR Score™:

7.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IAI
Ticker	Fund Name	Overlap¹ vs IAI (%)	Expense ratio (bp)	Savings vs IAI (bp)	ALTAR Score™ (%)	ALTAR vs IAI (%)
KCE	SPDR KBW Capital Markets	37.0	35	7	8.2	+1.2
PLAT	WisdomTree Modern Tech Platforms	18.1	45	-3	2.9	-4.1
RYF	Invesco S&P Equal Weight Financials	14.6	40	2	7.5	+0.6
IYG	iShares DJ US Financial Services	12.2	42	0	6.5	-0.4
EQRR	ProShares Equities for Rising Rates	11.9	35	7	8.1	+1.2
XLF	Financials Select Sector SPDR	10.7	13	29	7.1	+0.2
FNCL	Fidelity MSCI Financials	9.9	8	34	7.5	+0.5
VFH	Vanguard Financials	9.8	10	32	7.4	+0.5
BLOK	Amplify Transformational Data Sharing	9.4	70	-28	5.4	-1.5
IEFN	iShares Evolved U.S. Financials	9.3	18	24	7.5	+0.5
PFI	Invesco Dynamic Financial Sector	9.0	60	-18	4.7	-2.3
RWW	Invesco S&P Financials Revenue	8.6	45	-3	7.4	+0.5
JHMF	John Hancock Multifactor Financials	8.5	40	2	6.7	-0.2
FXO	First Trust Financial Alphadex	8.3	63	-21	8.0	+1.1
IYF	iShares DJ US Financials	7.0	42	0	6.2	-0.7
FMK	First Trust Mega Cap AlphaDEX	6.7	70	-28	5.6	-1.4
DIA	SPDR Dow Jones Industrial Average	5.4	17	25	6.1	-0.9
BLCN	Reality Shares NASDAQ NextGen Economy	5.3	68	-26	5.7	-1.3
IXG	iShares S&P Global Financial Sector	5.3	46	-4	8.4	+1.4
DFNL	Davis Select Financial	5.2	64	-22	6.8	-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 U.S. Broker Dealers
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	12.2	%
Divided by: Fwd. P/BV	1.7	x
Less: Expense ratio	42	bp
Equals: ALTAR Score	7.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.62	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.