ETF Research Center

The iShares U.S. Aerospace & Defense 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 Aerospace & Defense Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	May 05, 2006
Assets (mns)	$5,629
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	35
Wgt avg mkt cap (mns)	$79,774
Large cap (>$10bn)	83.8%
Mid cap ($2-10bn)	13.7%
Small cap (<$2bn)	2.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	73.8 %
BOEING CO	21.0 %
UNITED TECHNOLOGIES CORP	16.7 %
LOCKHEED MARTIN CORP	6.7 %
RAYTHEON COMPANY	4.9 %
TRANSDIGM GROUP INC	4.8 %
NORTHROP GRUMMAN CORP	4.3 %
GENERAL DYNAMICS CORP	4.3 %
HARRIS CORP	4.2 %
TELEDYNE TECHNOLOGIES INC	3.5 %
ARCONIC INC.	3.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.7 %

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.
28.4%	15.9%	15.8%	18.6%	13.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.14	64%
MSCI EAFE	0.94	37%
MSCI Emg. Mkts.	0.63	27%

Technical Indicators
Recent close	$230.71
30d moving avg.	$224.27
Annualized volatility	17.2%
Short interest (ETF)	0.0%
Short interest (Underlying)	3.8%
Relative strength (RSI)	62

Liquidity measures
Avg. volume (thou.)	141
Turnover	0.6%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$3,966

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

ITA

Expense:

42 bp

ALTAR Score™:

5.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH ITA
Ticker	Fund Name	Overlap¹ vs ITA (%)	Expense ratio (bp)	Savings vs ITA (bp)	ALTAR Score™ (%)	ALTAR vs ITA (%)
XAR	SPDR S&P Aerospace & Defense	61.2	35	7	5.0	-0.4
PPA	Invesco Aero & Defense	60.4	59	-17	5.1	-0.3
XKFF	SPDR Kensho Final Frontiers	47.1	45	-3	4.9	-0.5
XLI	Industrials Select Sector SPDR	27.5	13	29	6.2	+0.8
FITE	SPDR Kensho Future Security	26.9	45	-3	4.1	-1.3
FIDU	Fidelity Industrials	24.6	8	34	6.0	+0.6
VIS	Vanguard Industrials	24.1	10	32	6.3	+0.9
IFLY	ETFMG Drone Economy Strategy	21.5	75	-33	0.5	-4.9
IYJ	iShares DJ US Industrials	19.7	42	0	5.4	+0.0
RGI	Invesco S&P Equal Weight Industrials	15.8	40	2	6.7	+1.3
JHMI	John Hancock Multifactor Industrials	15.8	40	2	6.7	+1.3
EXI	iShares Global Industrials	14.6	46	-4	6.1	+0.7
FXR	First Trust Industrials/Producer Durables	14.4	62	-20	7.0	+1.6
PRN	Invesco DWA Industrials Momentum	13.9	60	-18	4.2	-1.2
KOMP	SPDR Kensho New Economies Composite	13.1	20	22	3.8	-1.6
DIA	SPDR Dow Jones Industrial Average	12.6	17	25	6.1	+0.7
UFO	Procure Space	12.2	75	-33	2.2	-3.2
PDP	Invesco DWA Technical Leaders	8.6	62	-20	3.9	-1.6
INAU	Innovation United States	8.5	81	-39	5.5	+0.1
TTFS	AdvisorShares Whilshire Buyback	8.1	91	-49	6.5	+1.0

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%.

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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. Aerospace & Defense
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	25.7	%
Divided by: Fwd. P/BV	4.4	x
Less: Expense ratio	42	bp
Equals: ALTAR Score	5.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.45	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.