ETF Research Center

iShares MSCI China Index Fund seeks to track the performance of the MSCI China Index.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	BlackRock Fund Advisors
Website	www.ishares.com
Inception date	Mar 31, 2011
Assets (mns)	$3,945
Currency	USD
Expense ratio	59 bp
Distributions	Semi-Annually

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	461
Wgt avg mkt cap (mns)	$160,679
Large cap (>$10bn)	82.1%
Mid cap ($2-10bn)	17.0%
Small cap (<$2bn)	0.8%
Developed mkts	22.7%
Emerging mkts	77.3%

TOP TEN HOLDINGS
Total	47.0 %
ALIBABA GROUP HOLDING LTD. SPONSOR	14.3 %
TENCENT HOLDINGS LTD	12.9 %
CHINA CONSTRUCTION BANK-H	4.3 %
PING AN INSURANCE GROUP CO-H	3.6 %
CHINA MOBILE LIMITED	2.7 %
IND & COMM BK OF CHINA - H	2.6 %
BAIDU INC - SPON ADR	1.9 %
BANK OF CHINA LTD - H	1.8 %
CNOOC LTD	1.6 %
JD.COM INC-ADR	1.3 %

TOP COUNTRY EXPOSURE
	CHINA	83.4 %
	HONG KONG	15.6 %
	SINGAPORE	0.1 %
	UNITED STATES	0.1 %

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.
11.8%	11.6%	5.3%	--	3.2%

Market Correlations
versus...	Beta	R-squared
S&P500	1.27	57%
MSCI EAFE	1.41	60%
MSCI Emg. Mkts.	1.28	81%

Technical Indicators
Recent close	$59.05
30d moving avg.	$58.55
Annualized volatility	20.3%
Short interest (ETF)	4.1%
Relative strength (RSI)	61

Liquidity measures
Avg. volume (thou.)	3,059
Turnover	4.6%
Bid/Ask (% of price)	0.02%
ADV underlying (mns)	$20,814

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

MCHI

Expense:

59 bp

ALTAR Score™:

9.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH MCHI
Ticker	Fund Name	Overlap¹ vs MCHI (%)	Expense ratio (bp)	Savings vs MCHI (bp)	ALTAR Score™ (%)	ALTAR vs MCHI (%)
FLCH	Franklin FTSE China	91.0	19	40	10.1	+0.6
GXC	SPDR S&P China ETF	81.3	59	0	9.3	-0.2
KALL	KraneShares MSCI China All Shares	64.3	49	10	9.2	-0.3
BKF	iShares MSCI BRIC	61.3	67	-8	8.9	-0.6
CN	Xtrackers Harvest MSCI All China	57.7	50	9	9.7	+0.2
CHIL	Global X MSCI China Large-Cap 50	55.2	29	30	10.7	+1.2
CXSE	WisdomTree China ex-State Owned Enterprises	53.6	32	27	7.3	-2.3
WCHN	WisdomTree ICBCCS S&P China 500	53.2	55	4	9.2	-0.3
EEMA	iShares MSCI Emg Mkts Asia	44.0	50	9	8.8	-0.7
GMF	SPDR S&P Emerging Asia Pacific	43.7	49	10	8.2	-1.3
FXI	iShares China Large-Cap	41.1	74	-15	14.2	+4.6
AAXJ	iShares MSCI Asia ex-Japan	37.4	67	-8	8.3	-1.2
2800-HK	Tracker Fund of Hong Kong	37.3	9	50	9.7	+0.2
FLAX	Franklin FTSE Asia Ex Japan	35.4	19	40	8.8	-0.8
PBEE	Invesco PureBeta FTSE Emerging Markets	34.6	14	45	9.4	-0.2
SCHE	Schwab Emerging Markets Equity	34.4	13	46	8.8	-0.7
AIA	iShares S&P Asia 50	32.8	50	9	9.6	+0.0
EEMX	SPDR MSCI Emerging Markets Fossil Fuel Free	32.4	30	29	8.7	-0.9
EEM	iShares MSCI Emerging Markets	32.2	67	-8	8.7	-0.9
DBEM	Xtrackers MSCI Emg. Mkts. Hedged	31.4	65	-6	8.6	-1.0

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 MSCI China
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	14.5	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	59	bp
Equals: ALTAR Score	9.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.27	CATEGORY AVERAGE	1.49

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.