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)	$400
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	243
Wgt avg mkt cap (mns)	$3,525
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	87.6%
Small cap (<$2bn)	12.4%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	8.3 %
PROSPERITY BANCSHARES INC	1.0 %
NUANCE COMMUNICATIONS INC	0.9 %
STERICYCLE INC	0.8 %
RALPH LAUREN CORP	0.8 %
WILLIAMS-SONOMA INC	0.8 %
IDACORP INC	0.8 %
L BRANDS, INC.	0.8 %
PORTLAND GENERAL ELECTRIC CO	0.8 %
HAWAIIAN ELECTRIC INDS	0.8 %
CAPITAL TRUST-CL A	0.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	95.3 %
	BRITAIN	1.8 %
	BERMUDA	1.2 %
	SWITZERLAND	0.3 %
	IRELAND	0.3 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-4.5%	1.2%	4.4%	10.2%	8.1%

Market Correlations
versus...	Beta	R-squared
S&P500	1.21	74%
MSCI EAFE	1.12	52%
MSCI Emg. Mkts.	0.71	37%

Technical Indicators
Recent close	$137.87
30d moving avg.	$141.84
Annualized volatility	17.1%
Short interest (ETF)	0.1%
Short interest (Underlying)	6.1%
Relative strength (RSI)	50

Liquidity measures
Avg. volume (thou.)	7
Turnover	0.2%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$6,503

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the iShares Morningstar Small Cap Value ETF 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™:

9.0%

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 (%)
IJJ	iShares S&P Mid-Cap 400 Value ETF	40.0	25	5	7.9	-1.2
MDYV	SPDR S&P 400 Mid Cap Value ETF	40.0	15	15	8.0	-1.1
IVOV	Vanguard S&P Mid-Cap 400 Value ETF	38.8	15	15	8.0	-1.1
FNK	First Trust Mid Cap Value AlphaDEX Fund	32.7	70	-40	9.6	+0.6
EWMC	Invesco S&P MidCap 400 Equal Weight ETF	32.0	40	-10	6.5	-2.5
JHSC	John Hancock Multifactor Small Cap ETF	30.3	50	-20	5.8	-3.3
VBR	Vanguard Small Cap Value Index Fund	30.3	7	23	7.9	-1.1
RWK	Invesco S&P MidCap 400 Revenue ETF	28.5	39	-9	7.8	-1.3
SMDY	Syntax Stratified MidCap ETF	28.1	30	0	6.5	-2.6
EZM	WisdomTree U.S. MidCap Earnings Fund	26.7	38	-8	8.8	-0.2
VTWV	Vanguard Russell 2000 Value Index Fund	26.4	15	15	6.4	-2.7
IWN	iShares Russell 2000 Value ETF	26.3	24	6	6.3	-2.7
FNX	First Trust Mid Cap Core AlphaDEX Fund	23.6	61	-31	6.6	-2.4
SMLF	iShares Edge MSCI Multifactor USA Small-Cap ETF	23.5	30	0	7.2	-1.8
AVUV	Avantis U.S. Small Cap Value ETF	23.3	25	5	8.2	-0.8
RFV	Invesco S&P Midcap 400 Pure Value ETF	23.2	35	-5	11.4	+2.4
MDY	SPDR S&P Midcap 400 ETF Trust	22.7	23	7	5.8	-3.3
SPMD	SPDR Portfolio Mid Cap ETF	22.7	5	25	5.9	-3.1
IJH	iShares Core S&P Mid-Cap ETF	22.6	6	24	5.9	-3.1
OUSM	O'Shares FTSE Russell Small Cap Quality Dividend ETF	22.6	48	-18	6.5	-2.5

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
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 ETF
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	11.2	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	30	bp
Equals: ALTAR Score	9.0	%

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.