ETF Research Center

iShares Dow Jones US Pharmaceuticals Index Fund seeks investment results that correspond to the price and yield of the Dow Jones US Select Pharmaceuticals Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Fund Advisors
Website	www.ishares.com
Inception date	May 05, 2006
Assets (mns)	$353
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	45
Wgt avg mkt cap (mns)	$165,861
Large cap (>$10bn)	68.6%
Mid cap ($2-10bn)	21.4%
Small cap (<$2bn)	10.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	76.0 %
JOHNSON & JOHNSON	22.5 %
MERCK & CO. INC.	18.1 %
ELI LILLY & CO	4.9 %
ZOETIS INC	4.7 %
ELANCO ANIMAL HEALTH, INC.	4.6 %
PFIZER INC	4.5 %
MYLAN N.V.	4.4 %
BRISTOL-MYERS SQUIBB CO	4.4 %
ALLERGAN PLC	4.3 %
CATALENT INC	3.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	81.3 %
	IRELAND	13.8 %
	BRITAIN	4.4 %
	CAYMAN ISLANDS	0.4 %
	SINGAPORE	0.1 %

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.
15.5%	15.5%	2.5%	12.3%	10.7%

Market Correlations
versus...	Beta	R-squared
S&P500	1.00	65%
MSCI EAFE	0.85	39%
MSCI Emg. Mkts.	0.58	31%

Technical Indicators
Recent close	$160.61
30d moving avg.	$159.89
Annualized volatility	15.0%
Short interest (ETF)	4.5%
Short interest (Underlying)	5.8%
Relative strength (RSI)	73

Liquidity measures
Avg. volume (thou.)	24
Turnover	1.1%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$5,075

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

IHE

Expense:

42 bp

ALTAR Score™:

5.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IHE
Ticker	Fund Name	Overlap¹ vs IHE (%)	Expense ratio (bp)	Savings vs IHE (bp)	ALTAR Score™ (%)	ALTAR vs IHE (%)
XPH	SPDR S&P Pharmaceuticals ETF	63.7	35	7	4.6	-0.4
FTXH	First Trust Nasdaq Pharmaceuticals	54.9	60	-18	4.3	-0.7
PPH	VanEck Vectors Pharmaceuticals	43.0	36	6	9.0	+4.0
IEIH	iShares Evolved U.S. Innovative Healthcare	41.6	18	24	3.9	-1.1
PBE	Invesco Dynamic Biotechnology & Genome	38.8	57	-15	10.8	+5.8
PJP	Invesco Dynamic Pharmaceuticals	38.8	56	-14	10.8	+5.8
XLV	Health Care Select Sector SPDR	31.2	13	29	7.0	+1.9
IYH	iShares US Healthcare	30.1	43	-1	6.0	+1.0
FHLC	Fidelity MSCI Health Care	29.0	8	34	5.6	+0.6
VHT	Vanguard Health Care	28.8	10	32	5.6	+0.6
JHMH	John Hancock Multifactor Health Care	24.2	40	2	6.4	+1.4
IXJ	iShares S&P Global Healthcare	22.1	46	-4	6.1	+1.1
DURA	VanEck Vectors Morningstar Durable Dividend	18.7	29	13	6.5	+1.5
FXH	First Trust Health Care Alphadex	15.2	63	-21	6.8	+1.8
RYH	Invesco S&P Equal Weight Healthcare	15.1	40	2	6.8	+1.7
SPHQ	Invesco S&P 500 Quality	14.4	15	27	5.4	+0.4
OUSA	O'Shares FTSE U.S. Quality Dividend	13.0	48	-6	5.7	+0.7
BTEC	Principal Healthcare Innovators Index	12.8	42	0	-4.1	-9.1
FTCS	First Trust Capital Strength	11.8	60	-18	5.1	+0.0
HDV	iShares High Dividend	11.4	8	34	7.0	+2.0

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%.

Content on this tab for subscribers only**

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

Content on this tab for subscribers only

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 DJ US Pharmaceuticals
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	16.3	%
Divided by: Fwd. P/BV	3.0	x
Less: Expense ratio	42	bp
Equals: ALTAR Score	5.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.38	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.