ETF Research Center

iShares U.S. Healthcare ETF is an exchange-traded fund incorporated in the USA. The Fund's objective seeks investment results that correspond to the performance of the Dow Jones U.S. Healthcare Sector Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Fund Advisors
Website	www.ishares.com
Inception date	Jun 16, 2000
Assets (mns)	$2,109
Currency	USD
Expense ratio	43 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	122
Wgt avg mkt cap (mns)	$132,809
Large cap (>$10bn)	92.7%
Mid cap ($2-10bn)	6.8%
Small cap (<$2bn)	0.4%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	47.4 %
JOHNSON & JOHNSON	9.2 %
UNITEDHEALTH GROUP INC	6.6 %
MERCK & CO. INC.	5.5 %
PFIZER INC	5.4 %
MEDTRONIC PLC	3.8 %
ABBOTT LABORATORIES	3.7 %
AMGEN INC	3.5 %
BRISTOL-MYERS SQUIBB CO	3.4 %
ABBVIE INC	3.2 %
THERMO FISHER SCIENTIFIC INC	3.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.2 %
	IRELAND	5.9 %
	BRITAIN	0.3 %

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.
17.0%	6.5%	9.1%	14.6%	7.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.88	65%
MSCI EAFE	0.75	40%
MSCI Emg. Mkts.	0.58	37%

Technical Indicators
Recent close	$209.90
30d moving avg.	$202.39
Annualized volatility	13.1%
Short interest (ETF)	4.1%
Short interest (Underlying)	2.5%
Relative strength (RSI)	75

Liquidity measures
Avg. volume (thou.)	52
Turnover	0.5%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$22,818

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

IYH

Expense:

43 bp

ALTAR Score™:

6.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IYH
Ticker	Fund Name	Overlap¹ vs IYH (%)	Expense ratio (bp)	Savings vs IYH (bp)	ALTAR Score™ (%)	ALTAR vs IYH (%)
FHLC	Fidelity MSCI Health Care	92.1	8	35	5.8	-0.5
VHT	Vanguard Health Care	90.3	10	33	5.9	-0.4
XLV	Health Care Select Sector SPDR	90.3	13	30	7.2	+1.0
JHMH	John Hancock Multifactor Health Care	77.1	40	3	6.6	+0.4
IXJ	iShares S&P Global Healthcare	65.5	46	-3	6.4	+0.1
RYH	Invesco S&P Equal Weight Healthcare	56.4	40	3	7.0	+0.8
IEHS	iShares Evolved U.S. Healthcare Staples	56.1	18	25	5.9	-0.3
IEIH	iShares Evolved U.S. Innovative Healthcare	51.5	18	25	4.4	-1.8
FXH	First Trust Health Care Alphadex	40.9	63	-20	7.1	+0.8
PJP	Invesco Dynamic Pharmaceuticals	38.2	56	-13	9.4	+3.2
FTXH	First Trust Nasdaq Pharmaceuticals	34.6	60	-17	5.4	-0.9
GDNA	Goldman Sachs Motif Human Evolution	29.3	50	-7	1.0	-5.2
IHE	iShares DJ US Pharmaceuticals	29.1	42	1	5.4	-0.9
LNGR	Global X Longevity Thematic	29.0	50	-7	3.3	-2.9
IHI	iShares DJ US Medical Devices	27.3	43	0	3.8	-2.5
PPH	VanEck Vectors Pharmaceuticals	26.6	36	7	9.4	+3.2
DURA	VanEck Vectors Morningstar Durable Dividend	24.0	29	14	6.8	+0.5
XPH	SPDR S&P Pharmaceuticals ETF	23.2	35	8	4.3	-1.9
HLAL	Wahed FTSE USA Shariah	22.9	50	-7	5.7	-0.5
MGV	Vanguard Mega Cap 300 Value	21.2	7	36	7.1	+0.8

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 US Healthcare
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	21.9	%
Divided by: Fwd. P/BV	3.3	x
Less: Expense ratio	43	bp
Equals: ALTAR Score	6.3	%

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.