ETF Research Center

The iShares Mortgage Real Estate Capped ETF seeks to track the investment results of an index composed of U.S. REITs that hold U.S. residential and commercial mortgages.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Fund Advisors
Website	www.ishares.com
Inception date	May 04, 2007
Assets (mns)	$1,314
Currency	USD
Expense ratio	48 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	37
Wgt avg mkt cap (mns)	$4,272
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	64.0%
Small cap (<$2bn)	36.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	71.4 %
ANNALY CAPITAL MANAGEMENT IN	17.0 %
AGNC INVESTMENT CORP.	12.2 %
NEW RESIDENTIAL INVESTMENT	8.6 %
STARWOOD PROPERTY TRUST INC	8.5 %
TWO HARBORS INVESTMENT CORP.	4.7 %
MFA FINANCIAL INC	4.5 %
CHIMERA INVESTMENT CORPORATION	4.4 %
CAPITAL TRUST-CL A	4.3 %
APOLLO COMMERCIAL REAL ESTAT	4.0 %
INVESCO MORTGAGE CAPITAL	3.3 %

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.
15.4%	10.7%	7.9%	8.8%	-0.4%

Market Correlations
versus...	Beta	R-squared
S&P500	0.56	27%
MSCI EAFE	0.51	19%
MSCI Emg. Mkts.	0.35	15%

Technical Indicators
Recent close	$43.45
30d moving avg.	$42.68
Annualized volatility	12.8%
Short interest (ETF)	0.0%
Short interest (Underlying)	3.1%
Relative strength (RSI)	66

Liquidity measures
Avg. volume (thou.)	259
Turnover	0.9%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$699

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

REM

Expense:

48 bp

ALTAR Score™:

10.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH REM
Ticker	Fund Name	Overlap¹ vs REM (%)	Expense ratio (bp)	Savings vs REM (bp)	ALTAR Score™ (%)	ALTAR vs REM (%)
MORT	VanEck Vectors Mortgage REIT	82.7	42	6	11.1	+0.2
SRET	Global X SuperDividend REIT	44.8	59	-11	10.1	-0.8
KBWD	Invesco KBW High Dividend Financial	30.9	242	-194	10.3	-0.6
SDIV	Global X Superdividend	20.8	58	-10	11.1	+0.2
XSHD	Invesco S&P SmallCap High Div Low Volatility	16.6	30	18	8.2	-2.7
ROOF	IQ US Real Estate Small Cap	16.0	70	-22	8.6	-2.3
DIV	Global X SuperDividend US ETF	13.8	45	3	7.6	-3.3
XSLV	Invesco S&P SmallCap Low Volatility	10.0	25	23	6.9	-4.0
SMLV	SPDR Russell 2000 Low Volatility	9.2	12	36	6.7	-4.3
VFMV	Vanguard U.S. Minimum Volatility	8.7	13	35	5.5	-5.4
FDVV	Fidelity Core Dividend	8.0	29	19	7.4	-3.5
SMMV	iShares Edge MSCI Min Vol USA Small-Cap	7.9	20	28	5.2	-5.7
PSCF	Invesco S&P Small Cap Financials	7.5	29	19	8.7	-2.2
USVM	USAA MSCI USA Small Cap Value Momentum Blend Index	7.4	24	24	6.6	-4.3
PXSG	Invesco Fundamental Pure Small Growth	5.2	39	9	4.7	-6.2
AUSF	Global X Adaptive U.S. Factor	5.0	27	21	8.3	-2.7
FDRR	Fidelity Dividend for Rising Rates	4.6	29	19	7.8	-3.1
PSC	Principal U.S. Small Cap Index	4.6	38	10	6.3	-4.6
IYR	iShares U.S. Real Estate	4.5	42	6	5.9	-5.0
DDIV	First Trust Dorsey Wright Momentum & Dividend	4.3	60	-12	6.7	-4.2

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 Mortgage Real Estate Capped
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	10.1	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	48	bp
Equals: ALTAR Score	10.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.48	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.