ETF Research Center

iShares Morningstar Small Value Index Fund seeks investment results that correspond to the price and yield performance of the Morningstar Small Value Index. The Index measures the performance

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Fund Advisors
Website	www.ishares.com
Inception date	Jul 06, 2004
Assets (mns)	$404
Currency	USD
Expense ratio	30 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	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	241
Wgt avg mkt cap (mns)	$3,503
Large cap (>$10bn)	2.6%
Mid cap ($2-10bn)	81.9%
Small cap (<$2bn)	15.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	10.3 %
AMCOR PLC	2.6 %
CHEMICAL FINANCIAL CORP	1.0 %
STERICYCLE INC	0.9 %
JABIL CIRCUIT INC	0.9 %
HANOVER INSURANCE GROUP INC/	0.8 %
WILLIAMS-SONOMA INC	0.8 %
RADIAN GROUP INC	0.8 %
FIRST HORIZON NATIONAL CORP	0.8 %
MGIC INVESTMENT CORP	0.8 %
PORTLAND GENERAL ELECTRIC CO	0.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	91.9 %
	BRITAIN	4.7 %
	BERMUDA	2.2 %
	IRELAND	0.5 %
	SWITZERLAND	0.5 %

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.
15.8%	1.1%	4.2%	11.0%	8.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.20	74%
MSCI EAFE	1.09	51%
MSCI Emg. Mkts.	0.70	34%

Technical Indicators
Recent close	$139.31
30d moving avg.	$138.76
Annualized volatility	16.8%
Short interest (ETF)	0.1%
Short interest (Underlying)	6.1%
Relative strength (RSI)	58

Liquidity measures
Avg. volume (thou.)	5
Turnover	0.2%
Bid/Ask (% of price)	0.12%
ADV underlying (mns)	$6,009

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

JKL

Expense:

30 bp

ALTAR Score™:

8.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH JKL
Ticker	Fund Name	Overlap¹ vs JKL (%)	Expense ratio (bp)	Savings vs JKL (bp)	ALTAR Score™ (%)	ALTAR vs JKL (%)
IVOV	Vanguard S&P Mid-Cap 400 Value	31.4	20	10	7.4	-1.5
MDYV	SPDR S&P400 Mid Cap Value	31.3	15	15	7.5	-1.5
IJJ	iShares S&P MidCap 400 Value	31.2	25	5	7.4	-1.6
EWMC	Invesco S&P Mid Cap 400 Equal Weight	28.3	40	-10	6.6	-2.3
IWN	iShares Russell 2000 Value	28.1	24	6	6.2	-2.7
VTWV	Vanguard Russell 2000 Value	27.8	20	10	6.3	-2.6
JHSC	John Hancock Multifactor Small Cap	27.5	50	-20	5.7	-3.2
VBR	Vanguard Small-Cap Value ETF	27.4	7	23	7.7	-1.2
FNK	First Trust Mid Cap Value AlphaDEX	26.6	70	-40	9.0	+0.1
AVUV	Avantis U.S. Small Cap Value	25.8	25	5	7.5	-1.5
EZM	WisdomTree Midcap Earnings	25.6	38	-8	7.7	-1.2
RWK	Invesco S&P MidCap 400 Revenue ETF	25.5	39	-9	7.8	-1.2
PSC	Principal U.S. Small Cap Index	24.4	38	-8	6.6	-2.3
ISMD	Inspire Small/Mid Cap Impact	23.9	61	-31	4.6	-4.3
SCHA	Schwab U.S. Small-Cap	21.3	4	26	5.0	-3.9
FYT	First Trust Small Cap Value AlphaDEX	21.0	76	-46	7.2	-1.7
RFV	Invesco S&P Midcap 400 Pure Value	21.0	35	-5	9.5	+0.6
OUSM	O'Shares FTSE Russell Small Cap Quality Dividend	20.7	48	-18	6.7	-2.2
FNX	First Trust Mid Cap Core Alpadex	20.6	62	-32	6.6	-2.3
SPSM	SPDR Portfolio Small Cap	20.5	5	25	4.8	-4.1

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 Morningstar Small Cap Value
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	11.0	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	30	bp
Equals: ALTAR Score	8.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.69	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.