ETF Research Center

The iShares Nasdaq Biotechnology Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of companies primarily engaged in the biotechnology industry, as represented by the NASDAQ Biotechnology Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	Feb 09, 2001
Assets (mns)	$7,748
Currency	USD
Expense ratio	47 bp
Distributions	Quarterly

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	215
Wgt avg mkt cap (mns)	$38,183
Large cap (>$10bn)	55.8%
Mid cap ($2-10bn)	25.6%
Small cap (<$2bn)	17.5%
Developed mkts	99.2%
Emerging mkts	0.8%

TOP TEN HOLDINGS
Total	50.7 %
AMGEN INC	8.4 %
GILEAD SCIENCES INC	7.9 %
VERTEX PHARMACEUTICALS INC	7.5 %
ILLUMINA INC	6.2 %
BIOGEN IDEC INC	5.1 %
REGENERON PHARMACEUTICALS	4.8 %
ALEXION PHARMACEUTICALS INC	3.4 %
INCYTE CORP	2.7 %
SEATTLE GENETICS INC	2.7 %
BIOMARIN PHARMACEUTICAL INC	1.9 %

TOP COUNTRY EXPOSURE
	UNITED STATES	87.9 %
	IRELAND	3.6 %
	BRITAIN	2.9 %
	CHINA	1.8 %
	NETHERLANDS	0.9 %
	DENMARK	0.7 %
	SWITZERLAND	0.6 %
	SPAIN	0.4 %
	CANADA	0.3 %
	BELGIUM	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
24.3%	9.8%	3.6%	16.7%	7.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.33	58%
MSCI EAFE	1.14	35%
MSCI Emg. Mkts.	0.93	38%

Technical Indicators
Recent close	$120.03
30d moving avg.	$112.33
Annualized volatility	21.2%
Short interest (ETF)	27.2%
Short interest (Underlying)	5.2%
Relative strength (RSI)	76

Liquidity measures
Avg. volume (thou.)	2,497
Turnover	3.9%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$7,726

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

IBB

Expense:

47 bp

ALTAR Score™:

0.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IBB
Ticker	Fund Name	Overlap¹ vs IBB (%)	Expense ratio (bp)	Savings vs IBB (bp)	ALTAR Score™ (%)	ALTAR vs IBB (%)
BBH	VanEck Vectors Biotech	55.1	35	12	4.5	+4.1
XBI	SPDR S&P Biotech ETF	43.7	35	12	-4.4	-4.8
FBT	First Trust NYSE-ARCA Biotechnology	43.2	57	-10	-0.7	-1.1
IEIH	iShares Evolved U.S. Innovative Healthcare	42.8	18	29	4.4	+4.0
BTEC	Principal Healthcare Innovators Index	37.5	42	5	-4.2	-4.6
BBP	BioShares Biotech Products	34.8	79	-32	-3.7	-4.1
LNGR	Global X Longevity Thematic	22.6	50	-3	3.3	+2.9
GNOM	Global X Genomics & Biotechnology	21.3	68	-21	-5.2	-5.6
PJP	Invesco Dynamic Pharmaceuticals	20.7	56	-9	9.3	+8.9
PBE	Invesco Dynamic Biotechnology & Genome	20.7	57	-10	-0.5	-0.9
GDNA	Goldman Sachs Motif Human Evolution	19.3	50	-3	1.0	+0.6
FXH	First Trust Health Care Alphadex	19.2	63	-16	7.0	+6.6
FHLC	Fidelity MSCI Health Care	17.3	8	39	5.7	+5.4
QQXT	First Trust NASDAQ-100 Ex-Tech	17.1	60	-13	5.8	+5.4
VHT	Vanguard Health Care	17.1	10	37	5.9	+5.5
BBC	Virtus LifeSci Biotech Clinical Trials	17.0	79	-32	-11.1	-11.5
IDNA	iShares Genomics Immunology and Healthcare	16.8	47	0	-4.3	-4.7
RYH	Invesco S&P Equal Weight Healthcare	15.7	40	7	7.0	+6.6
IYH	iShares US Healthcare	15.5	43	4	6.2	+5.8
JHMH	John Hancock Multifactor Health Care	15.5	40	7	6.6	+6.2

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 NASDAQ Biotechnology
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	4.0	%
Divided by: Fwd. P/BV	4.7	x
Less: Expense ratio	47	bp
Equals: ALTAR Score	0.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.40	CATEGORY AVERAGE	1.56

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.