ETF Research Center

The iShares Transportation Average ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of Dow Jones Transportation Average Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	Oct 10, 2003
Assets (mns)	$546
Currency	USD
Expense ratio	42 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust
Weighting	Price
Index replication	Optimized
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	21
Wgt avg mkt cap (mns)	$38,718
Large cap (>$10bn)	76.9%
Mid cap ($2-10bn)	20.9%
Small cap (<$2bn)	2.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	71.7 %
NORFOLK SOUTHERN CORP	10.7 %
UNION PACIFIC CORP	9.7 %
FEDEX CORP	9.0 %
KANSAS CITY SOUTHERN	8.4 %
UNITED PARCEL SERVICE-CL B	6.8 %
HUNT (JB) TRANSPRT SVCS INC	6.6 %
LANDSTAR SYSTEM INC	6.4 %
UNITED CONTINENTAL HOLDINGS	5.1 %
KIRBY CORP	4.6 %
C.H. ROBINSON WORLDWIDE INC	4.3 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.8 %

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.
15.6%	4.4%	5.0%	12.6%	9.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.37	74%
MSCI EAFE	1.04	37%
MSCI Emg. Mkts.	0.66	24%

Technical Indicators
Recent close	$195.14
30d moving avg.	$190.02
Annualized volatility	19.2%
Short interest (ETF)	0.0%
Short interest (Underlying)	4.4%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	193
Turnover	6.9%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$3,150

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

IYT

Expense:

42 bp

ALTAR Score™:

8.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IYT
Ticker	Fund Name	Overlap¹ vs IYT (%)	Expense ratio (bp)	Savings vs IYT (bp)	ALTAR Score™ (%)	ALTAR vs IYT (%)
XLTY	Cushing Transportation & MLP	60.2	65	-23	7.7	-1.0
FTXR	First Trust Nasdaq Transportation	48.1	60	-18	10.2	+1.5
XTN	SPDR S&P Transportation	45.5	35	7	8.3	-0.4
XLI	Industrials Select Sector SPDR	21.1	13	29	6.2	-2.5
RGI	Invesco S&P Equal Weight Industrials	19.9	40	2	6.6	-2.1
JETS	US Global Jets	18.2	60	-18	16.6	+7.9
JHMI	John Hancock Multifactor Industrials	17.1	40	2	6.6	-2.1
VIS	Vanguard Industrials	16.8	10	32	6.3	-2.4
FXR	First Trust Industrials/Producer Durables	15.7	62	-20	7.0	-1.7
FIDU	Fidelity Industrials	14.6	8	34	6.0	-2.7
PAVE	Global X U.S. Infrastructure Development	12.3	47	-5	5.8	-2.9
IYJ	iShares DJ US Industrials	11.2	42	0	5.4	-3.3
EXI	iShares Global Industrials	11.0	46	-4	6.1	-2.6
ACSI	American Customer Satisfaction Core Alpha	9.8	66	-24	7.8	-0.9
PEJ	Invesco Dynamic Leisure & Entertainment	9.4	63	-21	6.2	-2.5
PKW	Invesco Buyback Acheivevers	9.0	62	-20	6.0	-2.7
EQRR	ProShares Equities for Rising Rates	9.0	35	7	8.1	-0.6
QGRO	American Century STOXX U.S. Quality Growth	7.5	29	13	4.8	-3.9
QQXT	First Trust NASDAQ-100 Ex-Tech	6.7	60	-18	6.1	-2.6
HONR	InsightShares Patriotic Employers	6.6	65	-23	7.0	-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%.

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 Transportation Average
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	22.6	%
Divided by: Fwd. P/BV	2.5	x
Less: Expense ratio	42	bp
Equals: ALTAR Score	8.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.62	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.