1 Morningstar, as of 12/31/15. Comparison is between the average Prospectus Net Expense Ratio for the iShares ETFs (0.37%) and the oldest share class of active open-end mutual funds (1.08%) with 10-year track records that were available in the U.S. between 1/1/2006 and 12/31/2015. Analysis excludes municipal bond and money market funds.
2 Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Fidelity and BlackRock have entered into a long-term marketing program that compensates Fidelity to promote iShares ETFs; as part of this agreement, Fidelity offers 70 iShares ETFs commission-free online for qualified buyers and sellers. Additional information about this arrangement, including any compensation, is contained in the ETF’s registration statement. ETFs are subject to a short–term trading fee by Fidelity, if held less than 30 days. Other conditions and fees may apply. See Fidelity.com/commissions for details.
3 Morningstar, as of 12/31/15. "Tax Cost Ratio" is a Morningstar measure of the impact of taxes on capital gains and income distributions on performance. The average 10-year Tax Cost Ratio of iShares ETFs and the oldest share class of all actively managed open-end mutual funds available in the U.S. between 1/1/2006 and 12/31/2015 (excluding municipal bond and money market funds) included in the comparison is 0.53% and 1.21%, respectively.
4 Source: Morningstar, as of 1/31/2016. Post-tax comparison between the 1, 3 and 5 year returns at NAV of the iShares Core ETFs and the oldest share class of active open-end mutual funds within the same Morningstar categories as the iShares Core ETFs. Mutual funds are generally more tax inefficient than ETFs and, as a result, are typically more negatively impacted than ETFs when comparing performance based on post-tax returns rather than total returns. The number of ETFs and mutual funds used for each period varies based on the inception date of the iShares Core ETFs. iShares Core ETFs included in this comparison vary based on the time period analyzed: 1 year (19 Core ETFs existed for the full 1-year period ended 1/31/15); 3 year (15 Core ETFs existed for the full 3-year period ended 1/31/13); and 5 year (9 Core ETFs existed for the full 5-year period ended 1/31/11). iShares Core ETFs outperformed their active mutual fund peers by 80.6% (1955/2426), 83.6% (1804/2157) and 87.8% (1330/1515) over the 1, 3 and 5 year periods ended 1/31/16, respectively. Performance was averaged for Morningstar categories containing more than one iShares fund, and may be different for other time periods. Returns are calculated after taxes on distributions, including capital gains and dividends, assuming the highest federal tax rate for each type of distribution in effect at the time of the distribution. Past performance is no guarantee of future results. For more information on the differences between iShares ETFs and mutual funds, click here.