ETF Research Center

The iShares FactorSelect MSCI USA Small-Cap ETF tracks an index of small-cap US equities. Stocks are selected and weighted to increase exposure to 4 factors (quality, value, momentum and size) while maintaining similar characteristics to the MSCI USA Small Cap Index.

FUND BASICS
Category	US Equities
Fund Sponsor	BlackRock
Website	www.ishares.com
Inception date	Apr 30, 2015
Assets (mns)	$319
Currency	USD
Expense ratio	30 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Multi-Factor
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	459
Wgt avg mkt cap (mns)	$3,273
Large cap (>$10bn)	0.0%
Mid cap ($2-10bn)	64.7%
Small cap (<$2bn)	35.3%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	10.1 %
ASPEN TECHNOLOGY INC	1.4 %
MASIMO CORPORATION	1.2 %
RELIANCE STEEL & ALUMINUM	1.1 %
CHEMED CORP	1.0 %
NOVOCURE LIMITED	1.0 %
ENCOMPASS HEALTH CORPORATION	0.9 %
CACI INTERNATIONAL INC -CL A	0.9 %
FIRST AMERICAN FINANCIAL	0.9 %
BRIXMOR PROPERTY GROUP INC	0.9 %
JABIL CIRCUIT INC	0.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	92.8 %
	PUERTO RICO	1.6 %
	BRITAIN	1.5 %
	BERMUDA	1.4 %
	ISRAEL	0.8 %
	CAYMAN ISLANDS	0.4 %
	CANADA	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
21.5%	21.5%	--	--	9.8%

Market Correlations
versus...	Beta	R-squared
S&P500	1.12	78%
MSCI EAFE	0.95	46%
MSCI Emg. Mkts.	0.58	30%

Technical Indicators
Recent close	$43.69
30d moving avg.	$42.86
Annualized volatility	15.3%
Short interest (ETF)	0.3%
Relative strength (RSI)	74

Liquidity measures
Avg. volume (thou.)	35
Turnover	0.5%
Bid/Ask (% of price)	0.18%
ADV underlying (mns)	$6,809

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

SMLF

Expense:

30 bp

ALTAR Score™:

6.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH SMLF
Ticker	Fund Name	Overlap¹ vs SMLF (%)	Expense ratio (bp)	Savings vs SMLF (bp)	ALTAR Score™ (%)	ALTAR vs SMLF (%)
FLQS	Franklin LibertyQ U.S. Small Cap Equity	35.7	35	-5	5.9	-0.6
USVM	USAA MSCI USA Small Cap Value Momentum Blend Index	34.4	24	6	6.2	-0.3
VIOO	Vanguard S&P Small-Cap 600	33.4	15	15	5.7	-0.8
IJR	iShares Core S&P Small-Cap	33.1	7	23	6.0	-0.5
SLY	SPDR S&P 600 Small Cap	32.8	15	15	6.0	-0.5
GSSC	Goldman Sachs Activebeta U.S. Small Cap Equity	31.9	20	10	5.5	-0.9
JPSE	JPMorgan Diversified Return U.S. Small Cap Equity	30.4	29	1	4.7	-1.8
PSC	Principal U.S. Small Cap Index	30.1	38	-8	6.3	-0.2
TPSC	Timothy Plan US Small Cap Core	29.8	52	-22	6.6	+0.1
ROGS	Lattice Global Small Cap Strategy	27.6	39	-9	7.0	+0.6
CSF	Compass EMP US Discovery 500 Enhanced Vol.	27.2	35	-5	7.0	+0.5
CSA	Victory CEMP US Small Cap Volatility Wtd	27.1	35	-5	7.0	+0.5
EWSC	Invesco S&P Small Cap 600 Equal Weight	27.1	40	-10	5.5	-1.0
FYX	First Trust Small Cap Core Alphadex	25.5	66	-36	5.3	-1.2
AFSM	First Trust Active Factor Small Cap	25.4	75	-45	6.3	-0.2
EES	WisdomTree SmallCap Earnings	24.8	38	-8	8.2	+1.7
IWN	iShares Russell 2000 Value	24.7	24	6	6.1	-0.4
IUSS	Invesco Strategic US Small Company	24.7	23	7	5.9	-0.5
VTWV	Vanguard Russell 2000 Value	24.7	20	10	6.2	-0.3
FSMD	Fidelity Small-Mid Factor ETF	24.4	29	1	6.1	-0.3

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 FactorSelect MSCI USA Small-Cap
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	12.3	%
Divided by: Fwd. P/BV	1.8	x
Less: Expense ratio	30	bp
Equals: ALTAR Score	6.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.60	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.