ETF Research Center

iShares US Dow Jones Medical Equipment Index seeks investment results that correspond generally to the price and yield performance of the Dow Jones US Select Medical Equipment Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Fund Advisors
Website	www.ishares.com
Inception date	May 05, 2006
Assets (mns)	$4,679
Currency	USD
Expense ratio	43 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	57
Wgt avg mkt cap (mns)	$80,922
Large cap (>$10bn)	90.1%
Mid cap ($2-10bn)	7.4%
Small cap (<$2bn)	2.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	70.9 %
MEDTRONIC PLC	13.1 %
ABBOTT LABORATORIES	13.0 %
THERMO FISHER SCIENTIFIC INC	10.9 %
DANAHER CORP	7.6 %
EDWARDS LIFESCIENCES CORP	4.8 %
INTUITIVE SURGICAL INC	4.8 %
BOSTON SCIENTIFIC CORP	4.3 %
BECTON DICKINSON AND CO	4.2 %
BAXTER INTERNATIONAL INC	4.1 %
STRYKER CORP	4.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	84.7 %
	IRELAND	12.9 %
	BRITAIN	0.4 %
	NETHERLANDS	0.4 %

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.
30.3%	20.4%	18.8%	18.2%	13.9%

Market Correlations
versus...	Beta	R-squared
S&P500	0.95	64%
MSCI EAFE	0.83	40%
MSCI Emg. Mkts.	0.61	35%

Technical Indicators
Recent close	$259.93
30d moving avg.	$252.11
Annualized volatility	14.3%
Short interest (ETF)	9.3%
Short interest (Underlying)	3.1%
Relative strength (RSI)	69

Liquidity measures
Avg. volume (thou.)	205
Turnover	1.1%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$6,353

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

IHI

Expense:

43 bp

ALTAR Score™:

3.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IHI
Ticker	Fund Name	Overlap¹ vs IHI (%)	Expense ratio (bp)	Savings vs IHI (bp)	ALTAR Score™ (%)	ALTAR vs IHI (%)
IEHS	iShares Evolved U.S. Healthcare Staples	46.6	18	25	5.9	+2.1
XHE	SPDR S&P Health Care Equipment	36.2	35	8	2.1	-1.7
PTH	Invesco DWA Healthcare Momentum	28.5	60	-17	-1.2	-5.0
GDNA	Goldman Sachs Motif Human Evolution	28.0	50	-7	1.0	-2.8
XLV	Health Care Select Sector SPDR	27.4	13	30	7.2	+3.4
IYH	iShares US Healthcare	27.3	43	0	6.3	+2.5
RYH	Invesco S&P Equal Weight Healthcare	27.1	40	3	7.0	+3.2
FHLC	Fidelity MSCI Health Care	26.1	8	35	5.8	+2.0
VHT	Vanguard Health Care	25.8	10	33	5.9	+2.1
LNGR	Global X Longevity Thematic	25.2	50	-7	3.3	-0.5
JHMH	John Hancock Multifactor Health Care	24.3	40	3	6.6	+2.9
FXH	First Trust Health Care Alphadex	22.8	63	-20	7.1	+3.3
HTEC	Robo Global Healthcare Technology and Innovation	21.7	68	-25	-0.0	-3.8
IXJ	iShares S&P Global Healthcare	18.5	46	-3	6.4	+2.6
PWB	Invesco Dynamic Large Cap Growth	12.9	55	-12	4.3	+0.5
CWS	AdvisorShares Focused Equity	12.0	85	-42	5.5	+1.7
ACT	AdvisorShares Vice	11.6	99	-56	7.9	+4.2
CLRG	IQ Chaikin U.S. Large Cap	10.8	25	18	8.1	+4.3
DEF	Invesco Defensive Equity	10.8	59	-16	4.9	+1.1
INAU	Innovation United States	10.4	81	-38	5.4	+1.7

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

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	16.1	%
Divided by: Fwd. P/BV	3.8	x
Less: Expense ratio	43	bp
Equals: ALTAR Score	3.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.35	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.