Index the coreUsing iShares ETFs at the core of your portfolio
iCRMH0121U/S-1485165-1/20
Quality at a low cost iShares Core ETFs provide building blocks for a strong portfolio foundation.
U.S. EQUITIES INT’L EQUITIES BONDS
Market cap
IVV0.03%
IJH0.05%
IJR0.06%
S&P 500
S&P Mid-cap
S&P Small-Cap
IEFA0.07%
IEMG0.11%
MSCI Developed Markets
MSCI Emerging Markets
AGG0.04%
IUSB0.06%*
U.S. Investment Grade
U.S. Total Market
Style
IUSG0.04%
IUSV0.04%
S&P 500 Value
S&P 500 Growth
ITOT0.03%
S&P Total Market Index
*Gross expense ratio for IUSB is 0.07%. BlackRock Investments, LLC, has contractually agreed to waive a portion of its management fees through Feb 29, 2024.
iCRMH0121U/S-1485165-2/20
Index the core
How to play
Three reasons to index the core
International equitiesIXUS, IEFA, IEMG
Fixed incomeAGG, IUSB
The iShares difference
US equity building blocksCustomize your core
Insights
ETF education
Using iShares ETFs at the core of your portfolio
iCRMH0121U/S-1485165-3/20
Competitive performanceThink index means average? Over the last 10 years, three iShares Core ETFs have outperformed both their ETF and mutual fund peers.
THREE REASONS TO INDEX THE CORE
1
Source: Morningstar, as of 12/31/2020. Comparison universe is ETFs and mutual funds in each Morningstar category and uses total return. For 1 year and 5 year performance, please see the end of this document. For more information on Morningstar Rankings, please see the end of this document. Performance may be different for other time periods. P ast performance is no guarantee of future results.
IVV
88%814
IJH
76%215
IJR
93%367
% of funds it has outperformed (%)
# of funds in category
(Based on total return)Morningstar category
Focus on portfolio construction
IVV, IJH, and IJR have 0% overlap and 100% coverage of the
S&P 1500 index
Large BlendS&P 500
Mid-Cap BlendS&P 400
Small BlendS&P 600
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Low costiShares has focused on keeping costs low to help investors reach their investment goals.
THREE REASONS TO INDEX THE CORE
2
Source: Morningstar and BlackRock as of 12/31/2020. Comparison is between the prospectus net expense ratio for the oldest share class of active U.S. mutual funds and iShares ETFs with their respective Morningstar category.
Average mutual fund cost by investment category
vs. iShares Core ETFs
0.06%
0.05%
0.03%
0.91%
0.88%
0.67%
Large Blend
Mid-Cap Blend
Small Blend
Morningstar active category average
IJH
IJR
IVV
Morningstar active category average
Morningstar active category average
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Tax efficientTHREE REASONS TO INDEX THE CORE
3
*Represented by the oldest share class of each Active Open-End Equity Mutual Fund available in the United States incepted before 10/31 in each year and excludes funds that closed before 10/31 in each year, as of 12/31/20
1 Source: BlackRock as of 12/31/2020; Morningstar, average of years 2016-2020 as of 12/31/20. Past distributions are not indicative of future distributions.
Percentage of funds that paid capital gains over last 5 years1
iShares Core Equity ETFsUS Active Equity Mutual Funds*
0%
64%
iCRMH0121U/S-1485165-6/20
Index the core
How to play
Three reasons to index the core
International equitiesIXUS, IEFA, IEMG
Fixed incomeAGG, IUSB
The iShares difference
US equity building blocksCustomize your core
Insights
ETF education
Using iShares ETFs at the core of your portfolio
iCRMH0121U/S-1485165-7/20
*Source: Bloomberg as of 11/31/2020. Subject to change. Indexes are unmanaged and one cannot invest directly in an index.
iShares: full market coverage, no overlapOverlapping exposures can disrupt your asset allocation. Get full market coverage without overlap using iShares’ low cost suite of S&P ETFs.
If you start with the S&P 500, stick with S&P
S&P only
S&P500
S&P Mid Cap 400
Zero overlapping stocks
100% coverage
IVV IJH
S&P + CRSP
S&P500
CRSP Mid Cap
251 overlapping stocks*
Some ETF providers
Value Blend Growth
LargeIVV
0.03%
MidIJH
0.05%
SmallIJR
0.06%
IVV, IJH, and IJR have 0% overlap and
100% coverage of the S&P 1500 index.
Expense ratios are shown below the ticker symbols.
The CRSP Mid Cap has more in common with the S&P 500 than
with the S&P Mid Cap 400!
THE iSHARES DIFFERENCE
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Source: Morningstar as of 12/31/2020. P erformance data represents past performance and does not guarantee future results. Investment return and principal value wil l fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance see www.iShares.com. For standardized performance, please see the end of the presentation. The chart above reflects a hypothetical $100,000 investment and assumes reinvestment of
dividends and capital gains. Fund expenses, including management fees and other expenses were deducted. The three active categories shown (US Active Fund Large Blend, US Active Fund Mid-Cap Blend, and US Active Fund Small Blend) are averages calculated by Morningstar that represent the equally weighted return for all actively managed funds in the respective Morningstar Category.
Indexing can be more than just averageIVV, IJH, and IJR have delivered strong performance over the last 20 years and have outperformed the average actively managed fund in their Morningstar categories.
THE iSHARES DIFFERENCE
IVV US active fund large blend
IJHUS active fund mid-cap blend
IJR US active fund small blend
$396K
$297K
$652K
$419K
$715K
$502K
Hypothetical Growth of $100,000 over 20 years(5/22/2000 to 12/31/2020)
iCRMH0121U/S-1485165-9/20
Index the core
How to play
Three reasons to index the core
International equitiesIXUS, IEFA, IEMG
Fixed incomeAGG, IUSB
The iShares difference
US equity building blocksCustomize your core
Insights
ETF education
Using iShares ETFs at the core of your portfolio
iCRMH0121U/S-1485165-10/20
Source: Morningstar, as of 12/31/2020. Comparison universe is ETFs and mutual funds in their Morningstar categories. Overall figure is a weighted average of the percentage of funds that the iShares style box ETF outperformed in their Morningstar
category based on total return, The 9 iShares S&P style box ETFs outperformed 44%, 62% and 70% of peers on a 1, 5 and 10 yearbasis, respectively. Performance may be different for other time periods. Past performance is no guarantee of future results.
GETTING STARTED | US EQUITY BUILDING BLOCKS
The full roster of iShares S&P style box ETFs
Morningstar categories
Value Blend Growth
Large cap IVE0.18%
IVV0.03%
IVW0.18%
Mid cap IJJ0.18%
IJH0.05%
IJK0.17%
Small cap IJS0.18%
IJR0.06%
IJT0.18%
Net expense ratio
Think index means average?Think again.
Over the last 10 years, iShares S&P style box ETFs outperformed 70%
of their peers, based on total return.
iCRMH0121U/S-1485165-11/20
ITOT0.03%
S&P Total Market Index
IVV0.03%
S&P 500
IJH0.05%
S&P 400
Total U.S. Stock Market
IUSG0.04%
S&P 900 Growth
IUSV0.04%
S&P 900 Value
Precision by stylePrecision by size
TickerExpense ratio
Index
IJR 0.06%
S&P 600
IJR 0.06%
S&P 600
iShares makes it easyCustomize your U.S. stock market allocation with iShares Core building blocks
GETTING STARTED | US EQUITY BUILDING BLOCKS
iCRMH0121U/S-1485165-12/20
Bond ETFsWith today’s market volatility and low return expectations, bond diversification at a low cost is more important than ever. Keep equity correlations and costs to a minimum while seeking attractive returns.
GETTING STARTED | FIXED INCOME
*Gross expense ratio for IUSB is 0.07%. BlackRock Investments, LLC, has contractually agreed to waive a portion of its manage ment fees through Feb 29, 2024.Source: Morningstar as of 12/31/20. Correlation, risk and return based on 3-year annualized NAV return ending 12/31/20 where risk represented by standard deviation measures how dispersed returns are around the average. A higher standard deviation indicates that returns are spread out over a larger range of values and thus, more volatile. Diversification may not protect against market risk or loss of principal. This information should not be relied upon as research, investment advice or a recomme ndation regarding the Funds or any security in particular. This information is strictly for illustrative and educational purposes and is subject to change. This information does not represent the actual current, past or future holdings or portfolio of any BlackR ock client.
P erformance data represents past performance and does not guarantee future results. Investment return and principal value wil l fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance see www.iShares.com. Fo r standardized performance, please see the end of the presentation.
AGG IUSB
Core Bond Fund Core-Plus Bond Fund
IUSBMorningstar
Core-Plus Bond Category Average
Lower cost (net/gross)
0.06%/0.07%* 0.78%
Competitive returns (3 year)
5.41% 5.34%
Lower correlation to equities
0.30 0.47
Percent high yield exposure
7.5% 9.6%
iShares Core Total USD Bond Market ETFiShares Core US Aggregate Bond ETF
AGGMorningstar Core Bond
Category Average
Lower cost 0.04% 0.64%
Competitive returns (3 year)
5.28% 5.11%
Lower correlation to equities
0.07 0.26
Percent high yield exposure
0.0% 5.4%
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International equitiesExposure to international equities doesn’t necessarily require an expensive active manager. Consider diversifying your U.S. centric portfolio and seek potential growth with our iShares Core International ETFs.
GETTING STARTED | INTERNATIONAL EXPOSURE
*Net Expense ratio shown below the ticker symbols. 1Morningstar as of 12/31/20. Comparison is between IXUS, IEFA and IEMG and all funds in respective Morningstar category based on total return. Past performance does not guarantee future results. O t her time periods may have other results. Please see page 18 for more information on Morningstar rankings. 2Morningstar as of 12/31/20. Comparison is between the Prospectus Net Expense Ratio for IXUS, IEFA and IEMG ranked against all funds in their respective Morningstar category. 3 Source: Morningstar, as of 12/31/20. Past distributions not indicative of future distributions
Developed international
Broad international
Emerging market
iShares Core MSCI Total International Stock ETF
iShares Core MSCI EAFE ETF
iShares Core MSCI Emerging Markets ETF
IXUS0.09%
IEFA0.07%
IEMG0.11%
IXUS, IEFA, and IEMG have never paid out a capital gain3
Competitive performance% of funds outperformed on a 5-year basis (based on total return)1
Low cost Expense ratio lower than % of peers2
85%Rated against 576 funds
in the US Fund Foreign Large Blend Morningstar category
58%Rated against 576 funds
in the US Fund Foreign Large Blend Morningstar category
60%Rated against 593 funds
in the US Fund Diversified Emerging Mkts Morningstar category
96% 96% 98%
iCRMH0121U/S-1485165-14/20
Index the core
How to play
Three reasons to index the core
International equitiesIXUS, IEFA, IEMG
Fixed incomeAGG, IUSB
The iShares difference
US equity building blocksCustomize your core
Insights
ETF education
Using iShares ETFs at the core of your portfolio
iCRMH0121U/S-1485165-15/20
There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. When comparing stocks or bonds and iShares Funds, it should be remembered that management fees associated with fund investments, like iShares Funds, are not borne by investors in individual stocks or bonds.
ETFs are efficient index investmentsETFs are investment funds that aim to track the performance of a specific index, such as the S&P 500.
ETF EDUCATION
StockTradable during the day
Mutual fundDiversified
ETFsDiversified funds that
trade like stocks
Like a mutual fund, an ETFis a professionallymanaged,
diversifiedportfolio
Like a stock,an ETF canbebought and sold whenever
the market is open
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1 Source: Due to fund structure, mutual fund holders may be subject to taxable capital gains distributions due to other investors’ redemptions directly to the mutual fund. Taxable capital gain distributions can occur to ETF investors based on stocks tradin g within the fund as the ETF creates and redeems shares and rebalances its holdings. ETFs and stocks will also distribute taxable capital gains when an investor sells their own shares. Certain traditional mutual funds can also be tax efficient.For more information about the differences between ETFs and mutual funds, see the slide entitled ETFs vs. active mutual funds: key differences
ETFs and active mutual funds: key differencesETF EDUCATION
ETFs Active Mutual Funds
Performance goalTrack a benchmarke.g., S&P500
Seek to outperform a benchmarki.e., Generate alpha
Buying/selling shares Intraday on exchanges Once per day via fund company
Tax impact ofbuyers/sellers1
Shareholders only impactedby their own action
Shareholders impacted byother shareholders’actions
Holdings disclosures Daily Typically quarterly
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Important notesMore information on Morningstar rankings
Total return represents changes to the NAV and accounts for distributions from the funds (excluding any applicable sales charges). In reference to previous slides, this is how iShares Core ETFs performed against their peers for the 1, 5, and 10 year periods:
Funds: ranking data as of 12/31/2020
Ticker Morningstar category
1 year 5 year 10 year
Outperformed (%)
# of funds
Outperformed (%)
# of funds
Outperformed (%)
# of funds
iShares Core S&P 500 ETF IVV US Fund Large Blend 62 1,363 80 1,072 88 814
iShares Core S&P 500 ETF IJH US Fund Mid-Cap Blend65 407 68 309 76 215
iShares Core S&P Small-Cap ETF
IJR US Fund Small Blend49 671 75 517 93 367
iShares Core MSCI Total International Stock ETF
IXUS US Foreign Large Blend 31 771 15 576 - -
iShares Core MSCI EAFE ETF IEFA US Fund Foreign Large Blend 50 771 42 576 - -
iShares Core MSCI Emerging Markets ETF
IEMGUS Fund Diversified Emerging Mkts
40 790 40 593 - -
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Important notes: Standardized performance for the iShares funds as of 12/31/20
Fund NameFund
Inception Date
Gross Expense
Ratio*
30-Day SEC Yield (With / Without
Waiver)
Contractual Fee Waiver Expiration
(If Applicable)
1-Year Returns 5-Year Returns 10-Year Returns Since Inception
NAVMkt
PriceNAV
Mkt Price
NAV Mkt Price
NAVMkt
Price
iShares Core S&P 500 ETF 5/15/2000 0.03% 1.71% -- 18.37% 18.38% 15.18% 15.18% 13.83% 13.81% 6.71% 6.71%iShares Core S&P Mid-Cap ETF 5/22/2000 0.05% 1.71% -- 13.61% 13.58% 12.28% 12.28% 11.42% 11.40% 9.52% 9.52%iShares Core S&P Small-Cap ETF 5/22/2000 0.06% 1.84% -- 11.24% 11.30% 12.36% 12.38% 11.89% 11.89% 10.01% 10.01%iShares Core MSCI Emerging Markets ETF 10/18/2012 0.13% 1.88% -- 18.18% 17.93% 12.25% 12.35% -- -- 5.39% 5.36%iShares Core MSCI EAFE ETF 10/18/2012 0.07% 2.33% -- 8.55% 8.14% 7.92% 7.94% -- -- 7.32% 7.25%iShares Core U.S. Aggregate Bond ETF 9/22/2003 0.04% 1.14% / 1.13% -- 7.43% 7.45% 4.38% 4.35% 3.76% 3.75% 4.24% 4.24%
iShares Core Total USD Bond Market ETF 6/10/2014 0.07%** 1.42% / 1.41% February 29, 2024 7.59% 7.64% 4.81% 4.78% -- -- 4.05% 4.06%
*Fees as of Current Prospectus. All Other Data as of 12/31/20**Net expense ratio for IUSB is 0.06%. BlackRock Investments, LLC, has contractually agreed to waive a portion of its management fees through Feb 29, 2024.
The performance quoted represents past performance of specific funds and does not guarantee future results for such funds. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Any applicable brokerage commissions will reduce returns. Beginning August 10, 2020, market price returns for BlackRock and iShares ETFs are calculated using the closing price and account for distributions from the fund. Prior to August 10, 2020, market price returns for BlackRock and i Shares ETFs were calculated using the midpoint price and accounted for distributions from the fund. The midpoint is the average of the bid/ask prices at 4:00 PM ET (when NAV is normally determined for most ETFs). The returns shown do not represent the returns you would receive if yo u traded shares at other times.
iCRMH0121U/S-1485165-19/20
Important notesCarefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.comorwww.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Investment comparisons are for illustrative purposes only. To better understand the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is important to read the products' prospectuses.
Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries. Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.
Small-capitalization companies may be less stable and more susceptible to adverse developments, and their securities may be morevolatile and less liquid than larger capitalization companies.
The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. The information presented does not take intoconsideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
Transactions in shares of ETFs will result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.
A fund's environmental, social and governance (“ESG”) investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have an ESG focus. A fund's ESG investment strategy may result in the fund investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices LLC, nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with S&P Dow Jones Indices LLC.
©2021 BlackRock. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock. All other marks are the property of their respective owners. Must be preceded or accompanied by a prospectus.
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