ETF Research Center

The iShares U.S. Telecommunications Sector Index Fund seeks investment results that generally correspond price and yield performance, before fees and expenses, of U.S. telecommunications stocks, as represented by the Dow Jones U.S. Select Telecommunications Index.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	May 26, 2000
Assets (mns)	$376
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	42
Wgt avg mkt cap (mns)	$134,888
Large cap (>$10bn)	69.7%
Mid cap ($2-10bn)	27.3%
Small cap (<$2bn)	3.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	78.3 %
AT&T INC	23.1 %
VERIZON COMMUNICATIONS INC	22.4 %
CENTURYTEL INC	4.9 %
GARMIN LTD	4.7 %
T-MOBILE US, INC.	4.6 %
MOTOROLA SOLUTIONS	4.5 %
CISCO SYSTEMS INC	4.4 %
ARISTA NETWORKS, INC.	3.5 %
JUNIPER NETWORKS INC	3.1 %
F5 NETWORKS INC	3.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.3 %
	SWITZERLAND	4.7 %

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.
15.0%	7.5%	2.0%	8.4%	-0.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.80	45%
MSCI EAFE	0.74	32%
MSCI Emg. Mkts.	0.41	16%

Technical Indicators
Recent close	$29.94
30d moving avg.	$29.26
Annualized volatility	14.5%
Short interest (ETF)	0.0%
Short interest (Underlying)	5.2%
Relative strength (RSI)	57

Liquidity measures
Avg. volume (thou.)	397
Turnover	3.2%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$3,994

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

IYZ

Expense:

42 bp

ALTAR Score™:

8.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IYZ
Ticker	Fund Name	Overlap¹ vs IYZ (%)	Expense ratio (bp)	Savings vs IYZ (bp)	ALTAR Score™ (%)	ALTAR vs IYZ (%)
XTL	SPDR S&P Telecom	49.0	35	7	5.2	-2.8
IGN	iShares S&P N. American Tech- MM & Networking	30.0	46	-4	6.6	-1.5
JHCS	John Hancock Multifactor Media & Communications	21.0	40	2	6.3	-1.8
HDV	iShares High Dividend	19.8	8	34	6.6	-1.5
FIVG	Defiance Next Gen Connectivity ETF	19.4	30	12	6.1	-2.0
FXU	First Trust Utilities Alphadex	18.9	63	-21	5.3	-2.8
FCOM	Fidelity MSCI Communication Services	18.6	8	34	5.2	-2.9
PXQ	Invesco Dynamic Networking	18.5	63	-21	4.1	-4.0
EWCO	Invesco S&P 500 Equal Weight Comm. Services	18.4	40	2	7.9	-0.2
VOX	Vanguard Communication Services	18.1	10	32	5.4	-2.7
FDL	First Trust Morningstar Dividend Leaders	16.6	45	-3	8.6	+0.5
XLC	Communication Services Select Sector SPDR	14.1	13	29	6.5	-1.6
IXP	iShares S&P Global Comm. Services	13.1	46	-4	6.4	-1.7
BUL	Pacer US Cash Cows Growth	12.9	60	-18	5.4	-2.7
FONE	First Trust Cea Smartphone	12.3	70	-28	6.3	-1.8
FDN	First Trust DJ Internet	11.3	52	-10	3.4	-4.7
JKF	iShares Morningstar Large Value	11.0	25	17	7.7	-0.3
CIBR	First Trust NASDAQ Cybersecurity	10.5	60	-18	3.6	-4.5
TDIV	First Trust NASDAQ Technology Dividend	10.5	50	-8	6.6	-1.5
VLUE	iShares MSCI USA Value Factor	10.4	15	27	10.9	+2.8

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 U.S. Telecommunications
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	15.5	%
Divided by: Fwd. P/BV	1.8	x
Less: Expense ratio	42	bp
Equals: ALTAR Score	8.1	%

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.