1Morningstar, as of 10/28/16. Based on the average Prospectus Net Expense Ratio for iShares ETFS (0.38%) and the average Prospectus Net Expense Ratio of active open-end mutual funds (1.03%) that are available in the U.S. and have 10-year track records (excluding municipal bond and money market funds).
2Morningstar, as 12/30/2015. Post-tax pre-liquidation comparison made between the 5-year NAV returns of the oldest share class of active, open-end mutual funds available in the U.S. from 10/1/2010 to 9/30/2015 and their stated benchmarks. 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. Performance may be different for other time periods. Past performance is no guarantee of future results.
3Morningstar, 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 80.6% (1955/2426), 83.6% (1804/2157) and 87.8% (1330/1515) of their active mutual fund peers 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.
44 Morningstar as of 12/31/15. “Tax Cost” is a Morningstar measure of the impact of taxes on capital gains and income distributions on performance. Averages are calculated using the oldest share class of all actively managed open-end mutual funds available in the U.S. (excluding municipal bond and money market funds) with 10 year track records as of 12/31/15
5Morningstar as of 12/31/15. Number of funds includes all funds that incepted on or before 10/31 of each year, and excludes any funds that closed on or before 10/31 of each year. Past distributions are not indicative of future distributions.