Blackrock ETF Landscape (PDF)

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					   ETF Landscape
   Industry Highlights
   February 2011

   Deborah Fuhr, Managing Director
   Global Head of ETF Research and Implementation Strategy
   Phone: +44 20 7668 4276 Email: Deborah.Fuhr@blackrock.com




FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.
Table of contents

I.     Current ETF and ETP landscape                                                                                                      3
       ETFs/ETPs listed globally                                                                                                          3
       Global ETF and ETP asset growth                                                                                                    6
       Global ETF and ETP providers                                                                                                       8
       ETFs/ETPs listed in the United States                                                                                             20
       United States ETF and ETP asset growth                                                                                            23
       ETFs/ETPs listed in Europe                                                                                                        44
       European ETF and ETP asset growth                                                                                                 47
       ETFs/ETPs listed in Asia Pacific (ex-Japan)                                                                                       65
       ETFs/ETPs listed in Japan                                                                                                         72
       ETFs/ETPs listed in Latin America                                                                                                 76
       ETFs/ETPs listed in Canada                                                                                                        79
       Middle East and Africa ETF and ETP asset growth                                                                                   83
II.    Investment applications                                                                                                       85
       Product overview                                                                                                              85
       ETF/ETP toolbox                                                                                                               87
       How and why ETFs are used                                                                                                     90
       Growth in institutional users of ETFs                                                                                         96
       Core-satellite                                                                                                               101
       Fixed income index trading characteristics                                                                                   105
       Commodity index comparison                                                                                                   108
       Structures of ETFs and ETNs                                                                                                  113
III.   Appendix – regulatory update                                                                                                 118
IV.    ETF Landscape reports                                                                                                        133


                                                         FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.    2
ETFs and ETPs listed globally

At the end of February 2011, the global ETF industry had 2,557 ETFs with 5,802 listings and assets of US$1,367.4 Bn, from 140 providers on
48 exchanges around the world. This compares to 2,091 ETFs with 3,998 listings and assets of US$1,001.9 Bn from 115 providers on 40
exchanges, at the end of February 2010.
We expect global AUM in ETFs and ETPs1 to increase by 20–30% annually over the next three years, taking the global ETF/ETP industry to
approximately US$2 trillion in AUM by early 2012. Considering ETFs separately, AUM should reach US$2 trillion globally by the end of 2012,
US$1 trillion in the United States in 2011 and US$500 billion in Europe in 2013.
Taking ETFs and ETPs together, United States AUM should reach US$2 trillion in 2013, with European AUM reaching US$500 billion in 2012.
Anniversaries
     • 29 January 2011 marked the 18th anniversary of ETFs in the United States.
     • 9 March 2011 will mark the 21st anniversary of the first ETF globally, which listed in Canada in 1990.
     • 11 April 2011 will mark the 11th anniversary of ETFs in Europe.
     • 27 August 2011 will mark the 10th anniversary of ETFs in Australia.
Assets
     • YTD, assets have increased by 4.3% from US$1,311.3 Bn to US$1,367.4 Bn, which is less than the 5.6% increase in the MSCI World
       Index in US dollar terms. This compares to a 3.3% decrease in assets over the same period in 2010.
     • US$9.6 Bn of net new assets went into ETFs/ETPs in February 20112. US$3.3 Bn net inflows went into equity ETFs/ETPs, of which
       US$9.3 Bn went into ETFs/ETPs tracking developed market indices while ETFs/ETPs tracking emerging market indices saw net
       outflows of US$6.0 Bn. Fixed income ETFs/ETPs saw net inflows of US$0.6 Bn, of which ETFs/ETPs providing high yield exposure saw
       US$0.6 Bn net inflows while Government bond ETFs/ETPs saw net outflows of US$1.1 Bn. US$5.2 Bn net inflows went into ETFs/ETPs
       with commodity exposure, of which ETFs/ETPs with exposure to agricultural commodities saw US$1.8 Bn net inflows and ETFs/ETPs
       providing exposure to energy saw net inflows of US$1.0 Bn.


1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including
   grantor trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
2. Global flows approximated by combining United States and European flows.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                  3
ETFs and ETPs listed globally (continued)

Assets (continued)
    • US$24.0 Bn of net new assets went into ETFs/ETPs in 2011 YTD1. US$16.6 Bn net inflows went into equity ETFs/ETPs, of which
      US$25.7 Bn went into ETFs/ETPs tracking developed market indices while ETFs/ETPs tracking emerging market indices saw net
      outflows of US$9.1 Bn. Fixed income ETFs/ETPs saw net inflows of US$3.2 Bn, of which ETFs/ETPs providing high yield exposure saw
      US$1.9 Bn net inflows while Government bond ETFs/ETPs saw net outflows of US$0.9 Bn. US$3.2 Bn net inflows went into ETFs/ETPs
      with commodity exposure, of which ETFs/ETPs with exposure to agricultural commodities saw US$2.8 Bn net inflows while ETFs/ETPs
      providing exposure to precious metals saw net outflows of US$3.4 Bn.
    • US$24.0 Bn of net new assets went into ETFs/ETPs1 YTD compared to US$3.1 Bn net outflows over the same period in 2010.
      US$16.6 Bn net new asset inflows went into equity ETFs/ETPs YTD, compared to US$9.2 Bn net outflows over the same period in 2010.
      Net new asset flows into ETFs/ETPs tracking developed market equity indices were US$25.7 Bn YTD, compared to US$8.0 Bn net
      outflows over the same period in 2010 and ETFs/ETPs tracking emerging market indices saw US$9.1 Bn net outflows YTD, greater than
      the US$1.2 Bn net outflows in the same period in 2010. Fixed income ETF/ETP net new asset inflows were US$3.2 Bn YTD, less than
      the US$6.6 Bn net inflows over the same period in 2010 and net inflows into ETFs/ETPs with commodity exposure were US$3.2 Bn YTD
      compared to net outflows of US$0.5 Bn in the same period in 2010.
ETFs
    • YTD, the number of ETFs have increased by 3.9% with 97 new ETFs launched. This compares to a 7.3% increase in the number of ETFs
      over the same period in 2010, when 143 new ETFs launched.
    • There are currently plans to launch 1,019 new ETFs compared to 838 at the end of February 2010.
    • The top 100 ETFs, out of 2,557, account for 62.4% of global ETF AUM, while 1,567 ETFs have less than US$100.0 Mn in assets,
      1,271 ETFs have less than US$50.0 Mn in assets and 439 ETFs have less than US$10.0 Mn in assets.
Trading volume
    • In February 2011, the ETF average daily trading volume in US dollars increased by 27.5% to US$59.1 Bn compared to December 2010.
      This compares to average daily trading volume of US$74.3 Bn in February 2010.


1. Global flows approximated by combining United States and European flows.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   4
ETFs and ETPs listed globally (continued)

ETF providers
    • Globally, iShares is the largest ETF provider in terms of both number of products and assets, 476 ETFs and US$593.6 Bn respectively,
      reflecting 43.4% market share; State Street Global Advisors is second with 118 ETFs, assets of US$202.2 Bn, and 14.8% market share;
      followed by Vanguard with 66 ETFs, assets of US$157.7 Bn and 11.5% market share; as at end of February 2011.
    • The top three ETF providers, out of 140, account for 69.7% of global ETF AUM. This compares to 71.1% out of 116 providers, at the end
      of February 2010.
    • Four new providers have entered the industry in 2011, launching their first ETFs, while 37 firms plan to launch their first ETF in the future.
Exchanges
    • YTD, the number of exchanges with official listings has increased from 46 to 48.
Index providers
    • MSCI ranks first in terms of AUM and number of products tracking its benchmarks with assets of US$339.5 Bn and 400 ETFs, while
      Standard & Poor’s (S&P) ranks second with US$322.0 Bn and 330 ETFs, followed by Barclays Capital with US$114.8 Bn and 86 ETFs.
Mutual funds
    • Globally, net sales of mutual funds (excluding ETFs) were minus US$132.4 Bn, while net sales of ETFs were positive US$170.4 Bn
      during 2010 according to Strategic Insight.
ETPs
    • Additionally, there were 1,092 other ETPs with 1,781 listings and assets of US$175.3 Bn from 57 providers on 23 exchanges. This
      compares to 630 ETPs with 921 listings and assets of US$150.3 Bn from 40 providers on 18 exchanges, at the end of February 2010.
ETFs and ETPs
    • Combined, there were 3,649 products with 7,583 listings, assets of US$1,542.7 Bn from 174 providers on 52 exchanges around the
      world. This compares to 2,721 products with 4,919 listings, assets of US$1,152.2 Bn from 139 providers on 43 exchanges, at the end of
      February 2010.


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   5
Global ETF and ETP asset growth

                 Assets US$ Bn                                                                                                                                           # products
                 1,600                                                                                                                                                          3,000


                 1,400
                                                                                                                                                                                2,500

                 1,200

                                                                                                                                                                                2,000
                 1,000


                   800                                                                                                                                                          1,500


                   600
                                                                                                                                                                                1,000

                   400

                                                                                                                                                                                500
                   200


                       0                                                                                                                                                        0
 Assets (US$ Bn)           1993   1994   1995   1996   1997   1998    1999    2000    2001   2002   2003   2004    2005    2006    2007    2008    2009      2010    Feb-11
    ETF total              $0.8   $1.1   $2.3   $5.3   $8.2   $17.6   $39.6   $74.3 $104.8 $141.6 $212.0 $309.8 $412.1 $565.6 $796.7 $711.1 $1,036.0 $1,311.3 $1,367.4
    ETF equity             $0.8   $1.1   $2.3   $5.3   $8.2   $17.6   $39.6   $74.3 $104.7 $137.5 $205.9 $286.3 $389.6 $526.5 $729.9 $596.4        $841.6   $1,053.8 $1,101.2
    ETF fixed income                                                          $0.1    $0.1   $4.0   $5.8   $23.1   $21.3   $35.8   $59.9 $104.0    $167.0   $207.3    $212.5
    ETF commodity                                                                     $0.0   $0.1   $0.3   $0.5    $1.2    $3.4    $6.3    $10.0   $25.6     $45.7    $48.9
    ETP total                                                         $2.0    $5.1    $3.9   $4.1   $6.3   $9.3    $15.9   $32.5   $54.6   $61.2   $119.7   $170.6    $175.3
    # ETFs                  3      3      4      21     21     31      33      92     202    280    282    336     461     713     1,170   1,595   1,944     2,460    2,557
    # ETPs                                                             2       14      17     17     18     21      63     170     371     615      739      1,065    1,092


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                  6
ETFs/ETPs listed by region

                                                                                                                                                                   Middle East
                              Global            United States            Europe              Japan        Asia ex-Japan     Latin America           Canada          & Africa
                                   YTD                    YTD                 YTD                YTD               YTD               YTD                YTD                YTD
                                  change                 change              change             change            change            change             change             change
  Metric              Feb-11        (%)       Feb-11       (%)    Feb-11       (%)    Feb-11      (%)    Feb-11     (%)    Feb-11     (%)    Feb-11      (%)     Feb-11     (%)
  ETFs
  AUM (US$ Bn)        1,367.4          4.3%    929.1      4.3%    299.1       5.3%     32.4      0.7%     54.0     1.4%     10.2     0.7%     40.3      5.1%      2.3     -2.4%
  # ETFs               2,557           3.9%     919       2.6%    1,116       4.1%     81        1.3%     217      8.5%     26       0.0%     169       7.6%      29       0.0%
  # listings           5,802           4.4%     919       2.6%    3,884       5.0%     84        1.2%     324      5.5%     365      2.8%     197       6.5%      29       0.0%
  # providers           140            2.9%     28        0.0%      40        2.6%      7        0.0%     62       5.1%      4       0.0%      4        0.0%      10       0.0%
  # exchanges           48             4.3%      2        0.0%      23        4.5%      3       50.0%     13       0.0%      3       0.0%      1        0.0%       3       0.0%
  ADV (US$ Mn)       59,064.2      27.5%      51,930.1   26.4%    4,492.1    43.4%    159.4      9.6%    928.5    15.9%    394.6    179.4%   1,145.8    10.6%     13.7    85.5%
  ETPs
  Assets (US$ Bn)      175.3           2.7%    122.9      2.3%     32.5       3.8%     0.4       7.7%     1.4     -0.2%      -        -         -            -    18.0     4.0%
  # ETPs               1,092           2.5%     198       7.0%     535        2.7%      9        0.0%     23       0.0%      -        -         -            -    327      0.0%
  # listings           1,781           1.7%     198       7.0%    1,151       1.3%     29        0.0%     26       0.0%     25       8.7%      24       0.0%      328      0.0%
  # providers           57             1.8%     22        4.8%      9         0.0%      4        0.0%     15       0.0%      -        -         -            -    12       0.0%
  # exchanges           23             4.5%      1        0.0%      8         0.0%      2        0.0%      5       0.0%      2      100.0%     1        0.0%       4       0.0%
  Total
  Assets (US$ Bn)     1,542.7          4.1%   1,052.0     4.0%    331.6       5.2%     32.9      0.8%     55.4     1.4%     10.2     0.7%     40.3      5.1%      20.3     3.3%
  # ETFs/ETPs          3,649           3.5%    1,117      3.3%    1,651       3.6%     90        1.1%     240      7.6%     26       0.0%     169       7.6%      356      0.0%
  # listings           7,583           3.8%    1,117      3.3%    5,035       4.1%     113       0.9%     350      5.1%     390      3.2%     221       5.7%      357      0.0%
  # providers           174            2.4%     46        2.2%      45        2.3%      9        0.0%     68       4.6%      4       0.0%      4        0.0%      20       0.0%
  # exchanges           52             4.0%      2        0.0%      24        4.3%      3       50.0%     13       0.0%      3       0.0%      1        0.0%       6       0.0%




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                            7
Top 25 ETF providers around the world: ranked by AUM

                                                                               Feb-11                                       YTD change
                                                           #         AUM        %         ADV         #     #      %        AUM       %       % market
                    Provider                              ETFs     (US$ Bn)    total    (US$ Bn)   planned ETFs   ETFs    (US$ Bn)   AUM       share
                    iShares                                474      $579.7    43.4%      $17.6       15     1     0.2%      $1.1     0.2%      -0.7%
                    State Street Global Advisors           116      $199.3    14.9%      $24.3       35     3     2.7%      $8.7     4.6%      0.4%
                    Vanguard                               66       $152.9    11.5%       $2.0       2      1     1.5%      $4.4     3.0%      0.1%
                    Lyxor Asset Management                 158      $54.5      4.1%       $1.0       1      2     1.3%      $1.2     2.2%      0.0%
                    db x-trackers                          180      $50.0      3.7%       $0.8       12     1     0.6%      $0.9     1.8%      0.0%
                    PowerShares                            130      $46.4      3.5%       $3.2       49     0     0.0%      $3.6     8.4%      0.2%
                    ProShares                              100      $22.1      1.7%       $3.3       99     0     0.0%      $0.5     2.5%      0.0%
                    Van Eck Associates Corp                29       $19.2      1.4%       $0.9       35     0     0.0%     -$0.8     -4.0%     -0.1%
                    Nomura Asset Management                32       $15.8      1.2%       $0.1       0      0     0.0%     -$0.6     -3.6%     -0.1%
                    Credit Suisse Asset Management         54       $15.7      1.2%       $0.1       2      0     0.0%      $0.0     0.2%      0.0%
                    Bank of New York                        1       $11.9      0.9%       $0.1       0      0     0.0%     -$0.4     -2.9%     0.0%
                    Zurich Cantonal Bank                    7       $11.2      0.8%       $0.5       0      0     0.0%     -$0.6     -4.9%     -0.1%
                    WisdomTree Investments                 45       $10.1      0.8%       $0.2       72     1     2.3%      $0.2     1.6%      0.0%
                    Commerzbank                            90        $8.9      0.7%       $0.1       0      0     0.0%      $0.3     3.2%      0.0%
                    Amundi ETF                             92        $7.9      0.6%       $0.1       0      0     0.0%      $0.8     10.6%     0.0%
                    HSBC/Hang Seng                         19        $7.8      0.6%       $0.1       9      2     11.8%     $0.4     6.0%      0.0%
                    ETFlab Investment                      35        $7.1      0.5%       $0.0       5      0     0.0%      $0.4     5.4%      0.0%
                    Nikko Asset Management                 17        $6.9      0.5%       $0.0       0      0     0.0%      $0.3     4.6%      0.0%
                    UBS Global Asset Management            31        $6.9      0.5%       $0.0       0      2     6.9%      $0.3     4.5%      0.0%
                    Direxion Shares                        39        $6.4      0.5%       $0.1      174     0     0.0%     -$0.1     -2.1%     0.0%
                    Daiwa Asset Management                 23        $6.0      0.5%       $2.3       1      0     0.0%     -$0.8     -12.3%    -0.1%
                    First Trust Advisors                   43        $6.0      0.4%       $0.6       16     0     0.0%      $0.5     10.0%     0.0%
                    Source Markets                         57        $5.9      0.4%       $0.0       16     1     1.8%      $1.0     19.5%     0.1%
                    EasyETF                                49        $5.9      0.4%       $0.0       1      0     0.0%      $0.3     5.6%      0.0%
                    Claymore Investments                   29        $5.6      0.4%       $0.0       6      0     0.0%      $0.1     1.7%      0.0%

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.      8
Global ETF assets by type of exposure

                                                        Feb-11                        YTD change
                                        #     AUM           %        ADV       #         AUM        %
Exposure                               ETFs (US$ Bn)       total   (US$ Bn)   ETFs     (US$ Bn)    AUM
Equity                                 1,939 $1,101.0     80.5%     $54.4      54       $47.2      4.5%
  North America                        590    $567.3      41.5%     $40.1      10       $44.1      8.4%                  North America – equity 41.5%
  Emerging markets                     450    $220.8      16.1%      $9.1      21       -$16.8     -7.1%                 Emerging markets – equity 16.1%
  Europe                               503    $132.6       9.7%      $2.8      13       $11.3      9.3%                  Fixed income – all (ex-cash) 15.0%
                                                                                                                         Europe – equity 9.7%
  Asia Pacific                         187    $82.8        6.1%      $1.0      2         $0.5      0.6%
                                                                                                                         Asia Pacific – equity 6.1%
  Global (ex-US)                        73    $68.8        5.0%      $1.0      2         $5.1      8.0%
                                                                                                                         Global (ex-US) – equity 5.0%
  Global                               136    $28.6        2.1%      $0.3      5         $3.0      11.7%                 Commodities 3.6%
Fixed income                           400    $212.5      15.5%      $3.2      23        $5.2      2.5%                  Global – equity 2.1%
  Fixed income – all (ex-cash)         376    $204.6      15.0%      $3.1      19        $4.8      2.4%                  Fixed income – cash (money market) 0.6%

  Fixed income – cash (money market)    24     $7.9        0.6%      $0.1      4         $0.5      6.2%                  Alternative 0.2%
                                                                                                                         Currency 0.1%
Commodities                            143    $48.7        3.6%      $1.4      13        $3.0      6.6%
                                                                                                                         Mixed 0.1%
Alternative                             19     $2.3        0.2%      $0.0      4         $0.3      14.3%
Currency                                17     $1.7        0.1%      $0.0      2         $0.2      12.2%
Mixed                                   39     $1.2        0.1%      $0.0      2         $0.2      14.4%
Total                                  2,557 $1,367.4     100.0%    $59.1      97       $56.1      4.3%




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.               9
Global ETF/ETP net new assets by type of exposure

                                                         Feb-11           Nov-10
                             # ETFs         ADV         Assets                 NNA                       YTD-11 NNA                    2010 NNA             2009 NNA
Exposure                      /ETPs    (US$ Mn)       (US$ Mn)              (US$ Mn)                       (US$ Mn)                     (US$ Mn)            (US$ Mn)
Equity                         1,609    53,460.9      990,762.2       3,284.4                     16,625.9                    106,345.7             69,099.1
 Developed markets             1,368    45,413.1      816,215.9       9,284.3                     25,743.4                     64,233.6             34,594.3
  North America                  566    40,495.1        551,056         5,096                       17,260                        41,795               3,548
  Asia Pacific                    88       760.4       36,363.8         260.2                        656.0                       4,922.6             4,487.8
  Europe                         507     2,808.5      132,690.6       1,460.6                      3,514.9                       8,665.3            19,714.7
  Global                         135       323.1       28,642.3       1,159.6                      1,912.3                       4,156.6             6,152.0
  Global (ex-US)                  72     1,026.0       67,462.8       1,308.4                      2,400.1                       4,693.7               691.4
 Emerging markets                241     8,047.9      174,546.3     (5,999.9)                    (9,117.5)                    42,112.1              34,504.9
  Broad                           69     4,804.2      106,265.6     (5,194.4)                   (10,302.3)                    32,996.2             20,356.3
  Regional                        34       219.9        8,565.6       (157.5)                      (332.4)                      1,235.2             2,179.5
  Country                        138     3,023.7       59,715.1       (648.0)                     1,517.2                       7,880.6            11,969.1
    Brazil                        19     1,061.0       16,493.5         (94.6)                    1,111.3                       1,280.3             3,356.8
    Chile                          2        23.3           907.8        (10.6)                         5.0                        528.1                50.1
    China                         34       662.0       12,347.7       (585.2)                    (1,273.1)                     (1,185.0)            3,054.0
    Colombia                       1         3.2           133.6        (21.1)                       (27.4)                       158.2                  5.3
    Egypt                          1         6.8            28.4          -                           17.6                          (0.2)               (5.2)
    Hungary                        1         0.0            17.5          0.1                         (0.4)                         (0.6)               (0.3)
    India                         15       169.9         5,898.8         32.5                        (60.8)                     1,699.2             1,390.9
    Indonesia                      2        15.6           623.5        (44.2)                      424.8                         600.7               167.5
    Kuwait                         1         0.1            50.3          -                            -                            14.6               14.5
    Malaysia                       2        39.2        1,056.9       (103.9)                        (50.8)                       324.8                71.1
    Mexico                         5       173.2         1,533.5        (72.6)                     (197.1)                        330.1               302.0
    Peru                           1        15.6           670.9       127.1                        151.8                         299.8                96.3
    Philippines                    1         0.8            21.8          4.4                          7.9                          16.0                 -
    Poland                         4         3.8           269.6          9.2                         31.2                        132.3                  7.3
    Russia                        12       262.3         6,520.0       458.9                      1,044.6                       1,911.7               552.9
    South Africa                   7        28.8           961.5      (110.0)                        (23.1)                       123.1                82.7
    South Korea                    7       279.1        5,528.7          16.4                       317.4                         825.7               922.9
    Taiwan                         7       182.0         4,224.2        (46.3)                      254.5                        (396.2)            1,231.4
    Thailand                       1        11.5           569.2        (24.0)                       (88.6)                       280.0               169.2
    Turkey                        13        73.1         1,240.2      (206.2)                      (233.8)                        516.6               318.0
    UAE                            0         0.0             0.0          -                            -                           (13.2)                7.2
    Vietnam                        2        12.4           617.5          22.1                       106.6                        357.2                151.8

                                                                                                                                                                continued…

Note: Global ETF/ETP data approximated by combining United States and European data. NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                    10
Global ETF/ETP net new assets by type of exposure (continued)

                                                         Feb-11
                             # ETFs         ADV         Assets                NNA                       YTD-11 NNA                    2010 NNA             2009 NNA
Exposure                      /ETPs    (US$ Mn)       (US$ Mn)              (US$ Mn)                      (US$ Mn)                     (US$ Mn)            (US$ Mn)
Fixed income                     351     3,162.4      198,907.0        588.4                       3,174.3                     37,700.6            54,255.3
  Broad                            2         2.0           609.3          -                          42.1                         460.5               102.3
  Active                           6          8.9          985.1        42.3                        132.9                         798.7                48.8
  Aggregate                       11       204.3       29,205.6         72.9                        123.0                       5,039.0             8,216.7
  Corporate                       37       287.7       38,032.1        274.9                        852.2                       7,445.6           15,331.5
  Convertible                      1        10.2           716.7        75.2                        161.4                         271.7               212.0
  Covered                          8         3.6        1,072.8         20.9                         28.0                         360.3               438.4
  Credit spreads                  13        12.0           920.8          4.7                         5.1                         (25.3)             (291.1)
  Government                     190     2,049.5       65,253.6     (1,126.3)                      (931.6)                    15,313.3            12,900.1
  High yield                      10       248.2       16,860.6        647.0                      1,852.0                       6,085.0             4,429.4
  Inflation                       25       139.7       26,539.2         84.6                        330.5                         738.1           12,505.6
  Money market                    17       110.2        7,251.3        362.7                        633.6                        (999.2)           (4,518.2)
  Mortgage                         4        20.0        4,073.2         60.7                         94.7                         500.6             1,305.2
  Municipal                       27        66.1        7,386.7         68.8                       (149.5)                      1,712.7             3,574.6
Commodities                      617     5,149.5      181,623.4       5,233.3                      3,219.5                     22,694.2            46,209.7
  Broad                           98         311         23,835         1,450                     2,249.2                       2,502.2                7,944
  Agriculture                    133       370.8       14,934.5       1,752.3                     2,794.0                         (38.9)             3,221.8
  Energy                         124       980.1       12,372.9       1,040.5                       925.5                        (443.1)             7,890.1
  Industrial metals               96        85.6        4,869.4         240.4                       572.1                         751.4              1,141.5
  Livestock                       24         6.8           266.9         20.8                        66.4                         (22.4)                48.3
  Precious metals                142     3,395.6      125,344.5         729.4                    (3,387.7)                    19,945.1             25,963.8
Currency                         126       264.2        6,902.2         124.9                       334.9                      (1,825.0)             4,345.6
Alternative                       33       579.4        4,252.3         266.2                       460.6                       4,062.4              2,157.2
Mixed                             32         8.2         1,184.6         86.8                       145.2                         477.2                240.3
Total                          2,768      62,625      1,383,632       9,584.0                    23,960.5                     169,455.2           176,307.2




Note: Global ETF/ETP data approximated by combining United States and European data. NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                 11
Global inverse and leveraged ETF assets by type of exposure

                                                                              Feb-11                             YTD change
                                                                  #      # total   AUM       %       #      # total   AUM         %      %
                                Exposure                        ETFs    listings (US$ Bn)   total   ETFs   listings (US$ Bn)     AUM    total
                                Inverse                          83        229     $7.6    19.1%     6        18      $0.3      3.6%
                                Equity                           58        167     $5.2    13.0%     5        17      $0.1      2.7%    0.0%
                                  North America                  17        28      $2.6    6.7%      0         0      -$0.1     -2.0%   -0.3%
                                  Europe                         33        128     $2.0    5.0%      5        17      $0.1      6.2%    0.2%
                                  Emerging markets                6         7      $0.4    1.1%      0         0      $0.1     28.0%    0.2%
                                  Global (ex-US)                  1         1      $0.1    0.2%      0         0      $0.0     -25.3%   -0.1%
                                  Asia Pacific                    1         3      $0.0    0.1%      0         0      $0.0     16.1%    0.0%
                                Fixed income                     21        58      $2.4    6.0%      1         1      $0.1      5.8%    0.2%
                                Commodities                       3         3      $0.0    0.0%      0         0      $0.0     -49.5%   0.0%
                                Alternative                       1         1      $0.0    0.0%      0         0      $0.0     100.0%   0.0%
                                Leveraged                        113       199     $15.6   39.2%     0         7      -$0.1     -0.8%
                                Equity                           97        180     $14.2   35.7%     0         7      $0.0      0.1%    -0.8%
                                  North America                  51        71      $10.9   27.5%     0         1      $0.4      3.3%    0.3%
                                  Europe                         28        89      $2.2    5.6%      0         5      -$0.4    -15.6%   -1.2%
                                  Emerging markets               14        16      $0.9    2.4%      0         1      $0.1      7.2%    0.1%
                                  Global (ex-US)                  2         2      $0.0    0.1%      0         0      $0.0     25.0%    0.0%
                                  Asia Pacific                    2         2      $0.0    0.0%      0         0      $0.0      6.2%    0.0%
                                Fixed income                      6         9      $0.1    0.3%      0         0      $0.0     11.1%    0.0%
                                Commodities                       8         8      $1.3    3.2%      0         0      -$0.1    -10.1%   -0.4%
                                Currency                          1         1      $0.0    0.0%      0         0      $0.0     65.1%    0.0%
                                Alternative                       1         1      $0.0    0.0%      0         0      $0.0     100.0%   0.0%
                                Leveraged inverse                103       166     $16.6   41.7%     1         7      $0.8      4.9%
                                Equity                           84        140     $9.2    23.2%     0         6      $0.3       3.9%   0.3%
                                  North America                  48        68      $7.0    17.7%     0         1      $0.0      0.3%    -0.4%
                                  Europe                         22        56      $1.5    3.9%      0         4      $0.2     14.7%    0.4%
                                  Emerging markets               10        12      $0.6    1.5%      0         1      $0.1     29.3%    0.3%
                                  Global (ex-US)                  2         2      $0.0    0.1%      0         0      $0.0     -20.9%   0.0%
                                  Asia Pacific                    2         2      $0.0    0.0%      0         0      $0.0      -8.3%   0.0%
                                Fixed income                      8        15      $7.0    17.7%     1         1      $0.4      6.1%    0.6%
                                Commodities                      10        10      $0.3    0.8%      0         0      $0.0      7.9%    0.0%
                                Currency                          1         1      $0.0    0.0%      0         0      $0.0     -32.1%   0.0%
                                Total                            299       594     $39.7  100.0%     7        32      $0.9      2.3%
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   12
Index providers worldwide: ranked by AUM

                                            Feb-11                           YTD change
                              #         AUM        %        ADV       #         AUM        %
Index provider               ETFs     (US$ Bn)    total   (US$ Bn)   ETFs     (US$ Bn)    AUM
MSCI                          400      $339.5    24.8%      $9.7       10        $1.7      0.5%                             MSCI 24.8%
S&P                           330      $322.0    23.5%      $26.9      15       $20.9      6.9%                             S&P 23.5%
Barclays Capital               86      $114.8     8.4%      $2.4        2        $3.6      3.2%                             Barclays Capital 8.4%
Russell                        72       $83.9     6.1%      $6.7        2        $3.4      4.3%                             Russell 6.1%
FTSE                          168       $56.6     4.1%      $1.4        7        $1.7      3.0%                             FTSE 4.1%
STOXX                         225       $53.1     3.9%      $1.3        4        $4.4      9.0%                             STOXX 3.9%
Dow Jones                     143       $52.2     3.8%      $2.1        5        $4.7      9.8%                             Dow Jones 3.8%
Markit                        115       $45.8     3.4%      $0.4        3        $0.7      1.5%                             Markit 3.4%
NASDAQ OMX                     62       $35.8     2.6%      $3.9        1        $4.1     12.9%                             NASDAQ OMX 2.6%
Deutsche Boerse                51       $35.5     2.6%      $0.7        6        $3.5     10.9%                             Deutsche Boerse 2.6%
Topix                          54       $16.6     1.2%      $0.1        1        $0.0      0.2%                             Topix 1.2%
NYSE Euronext                  43       $15.9     1.2%      $0.7        2       -$0.7      -4.1%                            NYSE Euronext 1.2%
Nikkei                         9        $15.1     1.1%      $0.1        0        $0.5      3.3%                             Nikkei 1.1%
Hang Seng                      13       $15.1     1.1%      $0.1        0       -$0.2      -1.5%                            Hang Seng 1.1%
EuroMTS                        29       $9.3      0.7%      $0.1        0       -$0.2      -1.6%                            EuroMTS 0.7%
                                                                                                                            SIX Swiss Exchange 0.6%
SIX Swiss Exchange             17       $8.8      0.6%      $0.0        0       -$0.1      -1.6%
                                                                                                                            WisdomTree 0.6%
WisdomTree                     35       $8.6      0.6%      $0.1        0        $0.1      1.4%
                                                                                                                            PC-Bond 0.6%
PC-Bond                        18       $7.8      0.6%      $0.0        0        $0.2      2.3%
                                                                                                                            Grupo Bolsa 0.6%
Grupo Bolsa                    13       $7.8      0.6%      $0.2        0        $0.1      1.9%
                                                                                                                            SSE 0.5%
SSE                            17       $7.1      0.5%      $0.2        3        $0.6      9.1%
                                                                                                                            Indxis 0.5%
Indxis                         6        $6.7      0.5%      $0.0        0        $0.9     16.1%
                                                                                                                            Structured Solutions 0.4%
Structured Solutions           26       $6.0      0.4%      $0.2        1        $0.2      4.1%                             CSI 0.3%
CSI                            32       $3.4      0.3%      $0.1        1       -$0.1      -3.8%                            Intellidex 0.2%
Intellidex                     36       $3.2      0.2%      $0.0        0        $0.3     10.8%                             BNY Mellon 0.2%
BNY Mellon                     16       $2.2      0.2%      $0.0        0       -$0.4     -15.6%                            Morningstar 0.2%
Morningstar                    10       $2.1      0.2%      $0.0        0        $0.2      8.9%                             S-Network 0.1%
S-Network                      15       $2.0      0.1%      $0.0        0        $0.3     15.9%                             ISE 0.1%
ISE                            10       $1.2      0.1%      $0.0        0        $0.1     10.4%                             Zacks 0.1%
Zacks                          11       $0.9      0.1%      $0.0        0        $0.1     13.1%                             Other 6.5%
Other                         495       $88.3     6.5%      $1.7       34        $5.6      6.7%
Total                        2,557    $1,367.4   100.0%     $59.1      97       $56.1      4.3%
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.     13
Top 20 ETFs worldwide

Ranked by Assets Under Management (AUM)                                                          Ranked by US$ Average Daily Trading Volumes (ADV)
                                                                             ADV                                                                                             ADV
                                             Country Bloomberg     AUM       (‘000      ADV                                                Country   Bloomberg     ADV       (‘000      AUM
ETF                                           listed   ticker    (US$ Mn)   shares)   (US$ Mn)   ETF                                        listed     ticker    (US$ Mn)   shares)   (US$ Mn)
SPDR S&P 500                                   US     SPY US     94,779.0   137,432   18,178.1   SPDR S&P 500                                US       SPY US     18,178.1   137,432   94,779.0

Vanguard MSCI Emerging Markets ETF             US     VWO US     42,825.5   23,570    1,091.8    iShares Russell 2000 Index Fund             US       IWM US     3,695.1    45,499    16,300.4

iShares MSCI EAFE Index Fund                   US     EFA US     39,125.4   13,561     825.4     iShares MSCI Emerging Markets               US       EEM US     3,271.5    71,400    36,420.6

iShares MSCI Emerging Markets                  US     EEM US     36,420.6   71,400    3,271.5    PowerShares QQQ Trust                       US      QQQQ US     3,027.7    52,531    25,435.2

iShares S&P 500 Index Fund                     US      IVV US    28,142.7    2,490     330.7     Energy Select Sector SPDR Fund              US       XLE US     1,126.6    14,911    10,866.7

PowerShares QQQ Trust                          US     QQQQ US    25,435.2   52,531    3,027.7    Vanguard MSCI Emerging Markets ETF          US       VWO US     1,091.8    23,570    42,825.5

iShares Barclays TIPS Bond Fund                US      TIP US    19,497.5    787        83.8     iShares MSCI Brazil Index Fund              US       EWZ US      999.6     13,734    12,690.6

Vanguard Total Stock Market ETF                US      VTI US    19,066.0    1,975     134.6     iShares Barclays 20+ Year Treasury          US       TLT US      892.5      9,893    2,676.1

iShares Russell 2000 Index Fund                US     IWM US     16,300.4   45,499    3,695.1    iShares MSCI EAFE Index Fund                US       EFA US      825.4     13,561    39,125.4

iShares Russell 1000 Growth                    US     IWF US     13,677.6    2,313     139.7     Financial Select Sector SPDR Fund           US       XLF US      807.7     48,083    7,920.9

iShares iBoxx $ Investment Grade Corporate     US     LQD US     12,962.7    1,045     112.7     SPDR Dow Jones Industrial Average ETF       US       DIA US      785.9      6,354    9,841.8

iShares MSCI Brazil Index Fund                 US     EWZ US     12,690.6   13,734     999.6     Direxion Daily Financial Bull 3x Shares     US       FAS US      628.7     19,540    1,656.9

iShares S&P/TSX 60 Index Fund                Canada    XIU CN    11,864.2   17,449     364.2     ProShares UltraShort 20+ Year Treasury      US       TBT US      592.5     14,868    5,695.3

S&P 400 MidCap SPDR                            US     MDY US     11,821.0    2,867     501.6     iShares FTSE China 25 Index Fund            US       FXI US      582.1     13,865    6,809.5

iShares Russell 1000 Value Index Fund          US     IWD US     11,675.9    1,635     111.2     ProShares Ultra S&P500                      US       SSO US      551.9     10,465    1,703.7

iShares Barclays Aggregate Bond Fund           US     AGG US     11,030.1    669        70.1     Direxion Daily Small Cap Bull 3x Shares     US       TNA US      548.2      6,899     614.2

Energy Select Sector SPDR Fund                 US     XLE US     10,866.7   14,911    1,126.6    S&P 400 MidCap SPDR                         US       MDY US      501.6      2,867    11,821.0

iShares S&P MidCap 400 Index Fund              US      IJH US    10,673.0    817        78.2     ProShares UltraShort S&P500                 US       SDS US      483.5     22,458    2,193.3

SPDR Dow Jones Industrial Average ETF          US      DIA US    9,841.8     6,354     785.9     SPDR S&P Retail ETF                         US       XRT US      461.6      9,508     607.7

iShares S&P 500                                UK     IUSA LN    9,388.3     7,905     186.9     Industrial Select Sector SPDR Fund          US       XLI US      437.2     11,826    3,847.9


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                             FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                       14
Global ETF listings

Americas
                       # primary         # total        #   AUM
Country                  listings      listings providers US$ Bn
 1   Brazil                       7         7          2      1.8
 2   Canada                     169      197           4     40.3
 3                                                                                                                                            8
     Chile                         -       50           -       -                                                                16 24
                                                                                                                                                               19
 4   Mexico                       19     308           3      8.4
                                                                                                                         13 28    15 17
 5
                                                                                                                               9 7 10 6 12
     United States              919      919          28    929.1                        2
EMEA                                                                                                                              25 21
                                                                                             5                           18 23      14 11 26
                                                                                                                                                                                        38   34
                           # primary # total             #   AUM
Country                      listings listings   providers US$ Bn                                                                                                               30
                                                                                   4                                                                      27                    31 39
 6 Austria                         1       21           1     0.1                                                                                                   32
                                                                                                                                                     20
 7 Belgium                         1       23           1     0.1                                                                                                         40
                                                                                                                                                                         35
 8 Finland                         1        1           1     0.3
                                                                                                                                                                           37
 9 France                        261      484           9    62.6
                                                                                                                                                                             33
 10 Germany                      409     1,221         11   116.2                                        1
 11 Greece                         3        3           2     0.1
 12 Hungary                        1        1           1     0.0
                                                                                                 3                                       22
 13 Ireland                       14       14           2     0.5                                                                                                                                 29
 14 Italy                         23      509           4     2.7                                                                                                                                           36
 15 Netherlands                   12      108           4     0.3
 16 Norway                         6        6           2     0.7
 17 Poland                         1        1           1     0.1
 18 Portugal                       3        3           2     0.0
 19 Russia                         1        1           1     0.0
 20 Saudi Arabia                   2        2           1     0.0   Asia Pacific                                                                  Asia Pacific (continued)
 21 Slovenia                       1        1           1     0.0                       # primary          # total        #   AUM                                        # primary    # total        #   AUM
 22 South Africa                  26       26           8     2.2   Country               listings       listings providers US$ Bn                Country                  listings listings providers US$ Bn
 23 Spain                         12       68           2     1.3   29 Australia                 20          41          6     3.7                35 Malaysia                     4          5         3         0.1
 24 Sweden                        25       80           2     2.9   30 China                     20          20         14    11.3                36 New Zealand                  6          6         2         0.4
 25 Switzerland                  114      615           7    40.1   31 Hong Kong                 43          72         10    26.6                37 Singapore                    21         74        8         3.0
 26 Turkey                        12       12           5     0.2   32 India                     17          17          7     0.4                38 South Korea                  67         67        13        5.4
 27 United Arab Emirates           1        1           1     0.0   33 Indonesia                     1        1          1     0.0                38 Taiwan                       14         17        2         2.8
 28 United Kingdom               215      712          10    71.0   34 Japan                     81          84          7    32.4                40 Thailand                     4          4         3         0.1

Note: Providers = primary ETF providers. AUM = Assets Under Management in primary listings only. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                               FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                                       15
Top 25 ETP providers around the world: ranked by assets

                                                                                     Feb-11                               YTD change
                                                                     #       Assets       %         #        #     %       Assets      %       % market
                    Provider                                       ETPs     (US$ Bn)     total   planned   ETPs   ETPs    (US$ Bn)   assets     share
                    State Street Global Advisors                    1        $54.8      31.3%      0        0     0.0%     -$3.7       -6.3%    -3.0%
                    ETF Securities                                 230       $25.9      14.8%      55       13    6.0%      $0.5       2.0%     -0.1%
                    iShares                                         4        $18.9      10.8%      2        0     0.0%      $0.8       4.4%     0.2%
                    Deutsche Bank                                   36       $14.5       8.3%      5        0     0.0%      $2.0     15.6%      0.9%
                    Barclays (iPath)                                64        $9.3       5.3%      22       1     1.6%      $0.7       8.6%     0.3%
                    Merrill Lynch                                   17        $5.6       3.2%      0        0     0.0%      $0.8     17.8%      0.4%
                    United States Commodity Funds                   9         $5.1       2.9%      4        0     0.0%      $0.1       2.1%     0.0%
                    Societe Generale                                42        $4.3       2.5%      0        0     0.0%      $0.3       6.8%     0.1%
                    UBS AG                                         180        $3.6       2.1%      0        2     1.1%      $0.4     11.0%      0.2%
                    JPMorgan Chase                                  4         $2.6       1.5%      1        0     0.0%      $0.3     13.1%      0.1%
                    ProShares                                       14        $2.6       1.5%      38       2     16.7%     $0.5     25.9%      0.3%
                    Rydex SGI                                       9         $2.5       1.5%      13       0     0.0%      $0.1       2.7%     0.0%
                    Absa Capital                                    1         $2.3       1.3%      3        0     0.0%      $0.0       -2.0%    -0.1%
                    Swedish Export Credit Corp                      7         $1.8       1.0%      0        0     0.0%      $0.4     31.6%      0.2%
                    db ETC                                          32        $1.4       0.8%      0        0     0.0%      $0.3     23.1%      0.1%
                    Source Markets                                  28        $1.2       0.7%      0        0     0.0%      $0.0       0.3%     0.0%
                    GreenHaven Commodity Services                   1         $0.7       0.4%      0        0     0.0%      $0.2     29.6%      0.1%
                    Benchmark Asset Management                      1         $0.4       0.2%      0        0     0.0%      $0.0       4.8%     0.0%
                    Credit Suisse                                   4         $0.2       0.1%      1        0     0.0%      $0.0     10.1%      0.0%
                    RBS                                             21        $0.2       0.1%      0        2     10.5%     $0.0     11.8%      0.0%
                    Lyxor                                           3         $0.2       0.1%      0        0     0.0%      $0.0       3.6%     0.0%
                    Nomura Asset Management                         3         $0.2       0.1%      0        0     0.0%      $0.0     -12.7%     0.0%
                    Morgan Stanley                                  4         $0.2       0.1%      0        0     0.0%      $0.1     41.5%      0.0%
                    Mitsubishi UFJ Trust and Banking Corporation    4         $0.2       0.1%      0        0     0.0%      $0.0     26.9%      0.0%
                    UTI Asset Management                            1         $0.1       0.1%      0        0     0.0%      $0.0       -1.3%    0.0%

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   16
Top 20 ETPs worldwide

Ranked by assets                                                                                     Ranked by US$ Average Daily Trading Volumes (ADV)
                                                                                 ADV                                                                                              ADV
                                            Country       Bloomberg Assets       (‘000      ADV                                                 Country   Bloomberg     ADV       (‘000     Assets
ETP                                          listed         ticker  (US$ Mn)    shares)   (US$ Mn)   ETP                                         listed     ticker    (US$ Mn)   shares)   (US$ Mn)
SPDR Gold Trust                                US          GLD US    54,816.2   13,640    1,874.0    SPDR Gold Trust                              US       GLD US     1,874.0    13,640    54,816.2

iShares Silver Trust                           US          SLV US    11,461.1   26,534     864.0     iShares Silver Trust                         US       SLV US      864.0     26,534    11,461.1

PowerShares DB Commodity Index                 US          DBC US    5,874.7     2,234      66.3     Oil Services HOLDRS                          US       OIH US      816.4      4,998    3,151.6

ETFS Physical Gold                             UK         PHAU LN    5,553.5     236        32.7     United States Oil Fund LP                    US       USO US      798.3     20,119    1,912.6

iShares Gold Trust                             US          IAU US    5,369.6     6,398      88.1     iPath S&P 500 VIX Short-Term Futures ETN     US       VXX US      624.1     19,806    1,305.0

GBS Bullion Securities                         UK          GBS LN    5,277.4     106        14.5     Semiconductor HOLDRS                         US       SMH US      256.2      7,113     750.2

PowerShares DB Agriculture Fund                US          DBA US    3,790.3     3,725     129.3     ProShares Ultra Silver                       US       AGQ US      203.1      1,130     710.3

Oil Services HOLDRS                            US          OIH US    3,151.6     4,998     816.4     ProShares Ultra DJ-UBS Crude Oil             US       UCO US      139.0      2,776     468.3

iPath Dow Jones-UBS Commodity Index TR         US          DJP US    3,145.7     488        24.5     PowerShares DB Agriculture Fund              US       DBA US      129.3      3,725    3,790.3

JPMorgan Alerian MLP Index ETN                 US          AMJ US    2,565.7     901        34.2     United States Natural Gas Fund LP            US       UNG US      117.5     21,929    2,384.6

United States Natural Gas Fund LP              US          UNG US    2,384.6    21,929     117.5     Euro Currency Trust                          US       FXE US      116.6      851       376.7

NewGold ETF                                South Africa    GLD SJ    2,270.8     462        6.4      iShares Gold Trust                           US       IAU US       88.1      6,398    5,369.6

iShares S&P GSCI Commodity-Indexed Trust       US          GSG US    1,975.8     550        19.9     Retail HOLDRS                                US       RTH US       76.7      726       287.5

United States Oil Fund LP                      US          USO US    1,912.6    20,119     798.3     PowerShares DB Commodity Index               US       DBC US       66.3      2,234    5,874.7

ETFS Agriculture DJ-UBSCI                      UK          AIGA LN   1,332.4     1,220      11.7     PowerShares DB US Dollar Index Bullish       US       UUP US       54.3      2,449     896.3

iPath S&P 500 VIX Short-Term Futures ETN       US          VXX US    1,305.0    19,806     624.1     iPath S&P GSCI Crude Oil Total TR            US       OIL US       46.4      1,773     831.0

ETFS Physical Swiss Gold Shares                US         SGOL US    1,239.7     183        25.7     iPath S&P 500 VIX Mid-Term Futures ETN       US       VXZ US       46.4      814       722.2

Gold Source P-ETC                              UK         SGLD LN     944.1       50        7.0      Regional Bank HOLDRS                         US       RKH US       36.3      409       108.6

ETFS Physical Palladium Shares                 US          PALL US    907.6      241        18.9     ProShares UltraShort Silver                  US       ZSL US       35.6      1,118     136.7

PowerShares DB US Dollar Index Bullish         US          UUP US     896.3      2,449      54.3     JPMorgan Alerian MLP Index ETN               US       AMJ US       34.2      901      2,565.7


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                         17
Global ETP listings




Americas                                                                                                                  14 7 10
                                                                                          1                                 6 12
                           # primary    # total        # Assets
 Country                     listings listings providers US$ Bn                               4                                     9
                                                                                                                                                                                      20   18
                                                                                                                                              8
 1   Canada                        -      24          -       -
                                                                                  3                                                                 13                       16
 2   Chile                         -       2          -       -                                                                                               17

 3   Mexico                        -      23          -       -
                                                                                                                                                                        19
 4   United States              198      198         22   122.9

                                                                                                                                         5
EMEA
                                                                                                                                        11
                           # primary # total           # Assets
                                                                                                  2                                                                                             15
 Country                     listings listings providers US$ Bn
 5   Botswana                      -       1          -       -

 6   France                       3       46          1     0.2

 7   Germany                     93      408          6     1.8

 8   Israel                     319      319          7    15.8

 9   Italy                       12       97          1     0.0

 10 Netherlands                    -       6          -       -   Asia Pacific                                                               Asia Pacific (continued)
                                                                                        # primary    # total           # Assets                                    # primary # total           # Assets
 11 South Africa                  7        7          4     2.3   Country                 listings listings    providers US$ Bn              Country                 listings listings providers US$ Bn
 12 Switzerland                 111      141          1     3.3   15 Australia                        5   5           1     0.6              18 Japan                             9        29        4   0.4

 13 United Arab Emirates          1        1          1     0.0   16 Hong Kong                        6   7           2     0.0              19 Singapore                         -        2         -     -

 14 United Kingdom              316      453          5    27.1   17 India                        10      10         10     0.8              20 South Korea                       2        2         2   0.0


Note: Providers = primary ETP providers. Assets = Assets Under Management in primary listings only. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                             FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                                 18
Top 25 ETF/ETP providers around the world: ranked by assets

                                                                                  Feb-11                               YTD change
                                                                    # ETFs/ Assets      %         #    # ETFs/ % ETFs/ Assets   %       % market
                          Provider                                   ETPs (US$ Bn)     total   planned ETPs     ETPs (US$ Bn) assets     share
                          iShares                                     480     $612.5   39.7%     17      3     0.6%     $15.8   2.6%     -0.6%
                          State Street Global Advisors                119     $257.1   16.7%     30      5     4.4%     $7.9    3.2%     -0.1%
                          Vanguard                                    66      $157.7   10.2%     1       1     1.5%     $9.2    6.2%     0.2%
                          PowerShares/Deutsche Bank                   161     $61.7    4.0%      54      0     0.0%     $6.4    11.6%    0.3%
                          Lyxor Asset Management                      158     $54.4    3.5%      1       2     1.3%     $1.1    2.0%     -0.1%
                          db x-trackers/db ETC                        212     $51.2    3.3%      11      1     0.5%     $1.0    2.0%     -0.1%
                          ETF Securities                              257     $26.8    1.7%      58     14     5.8%     $0.6    2.5%     0.0%
                          ProShares                                   115     $25.2    1.6%     136      3     2.7%     $1.6    6.9%     0.0%
                          Van Eck Associates Corp                     29      $21.1    1.4%      35      0     0.0%     $1.1    5.5%     0.0%
                          Nomura Asset Management                     35      $16.5    1.1%      0       0     0.0%     -$0.1   -0.6%    -0.1%
                          Credit Suisse Asset Management              58      $16.3    1.1%      0       4     7.4%     $0.7    4.4%     0.0%
                          Zurich Cantonal Bank                         7      $12.0    0.8%      0       0     0.0%     $0.2    2.0%     0.0%
                          Bank of New York                             1      $11.8    0.8%      0       0     0.0%     -$0.4   -3.2%    -0.1%
                          WisdomTree Investments                      45      $10.2    0.7%      72      1     2.3%     $0.3    3.3%     0.0%
                          Barclays (iPath)                            64       $9.3    0.6%      22      1     1.6%     $0.7    8.6%     0.0%
                          Commerzbank                                 90       $9.0    0.6%      0       0     0.0%     $0.4    5.2%     0.0%
                          Amundi ETF                                  94       $8.4    0.5%      0       2     2.2%     $1.3    17.8%    0.1%
                          UBS Global Asset Management                 34       $8.0    0.5%      0       5     17.2%    $1.4    21.3%    0.1%
                          HSBC/Hang Seng                              22       $7.9    0.5%      7       4     22.2%    $0.4    5.7%     0.0%
                          Rydex SGI                                   34       $7.6    0.5%     108      1     3.0%     $0.1    1.8%     0.0%
                          Source Markets                              85       $7.6    0.5%      15      1     1.2%     $1.4    23.0%    0.1%
                          Nikko Asset Management                      17       $7.2    0.5%      3       0     0.0%     $0.7    10.0%    0.0%
                          ETFlab Investment                           39       $6.7    0.4%      5       4     11.4%    -$0.1   -1.7%    0.0%
                          First Trust Advisors                        44       $6.7    0.4%      15      1     2.3%     $1.2    22.3%    0.1%
                          Direxion Shares                             39       $6.5    0.4%     174      0     0.0%     -$0.1   -1.8%    0.0%



Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   19
ETFs and ETPs listed in the United States

At the end of February 2011, the ETF industry in the United States had 919 ETFs and assets of US$929.1 Bn, from 28 providers on two
exchanges. This compares to 807 ETFs and assets of US$678.6 Bn, from 28 providers on two exchanges at the end of February 2010.
29 January 2011 marked the 18th anniversary of ETFs in the United States.
Assets
    • YTD, assets have increased by 4.3% from US$891.0 Bn to US$929.1 Bn, which is less than the 5.5% increase in the MSCI US Index in
      US dollar terms. This compares to a 3.8% decrease in assets over the same period in 2010.
    • US$7.5 Bn of net new assets went into United States listed ETFs/ETPs in February 2011. US$2.7 Bn net inflows went into equity
      ETFs/ETPs, of which US$4.2 Bn went into ETFs/ETPs tracking North American indices, while ETFs/ETPs tracking emerging market
      indices saw net outflows of US$5.3 Bn. Fixed income ETFs/ETPs saw net inflows of US$1.0 Bn, of which US$0.5 Bn went into high yield
      bond ETFs/ETPs while government bond ETFs/ETPs saw net outflows of US$0.1 Bn. Commodity ETFs/ETPs experienced net inflows of
      US$3.5 Bn, of which ETFs/ETPs providing exposure to agricultural commodities saw net inflows of US$1.5 Bn and US$0.8 Bn net inflows
      went into broad commodity exposure ETFs/ETPs in February 2011.
    • US$17.8 Bn of net new assets went into United States listed ETFs/ETPs in 2011 YTD. US$11.3 Bn net inflows went into equity
      ETFs/ETPs, of which US$14.8 Bn went into ETFs/ETPs tracking North American indices, while ETFs/ETPs tracking emerging market
      indices saw net outflows of US$9.2 Bn. Fixed income ETFs/ETPs saw net inflows of US$3.8 Bn, of which US$1.6 Bn went into high yield
      bond ETFs/ETPs while municipal bond ETFs/ETPs saw net outflows of US$0.1 Bn. Commodity ETFs/ETPs experienced net inflows of
      US$1.9 Bn, of which ETFs/ETPs providing exposure to agricultural commodities saw net inflows of US$2.6 Bn and US$1.3 Bn net inflows
      went into broad commodity exposure ETFs/ETPs in 2011 YTD.
    • YTD, US$17.8 Bn net new asset flows went into United States listed ETFs/ETPs compared to US$11.8 Bn net outflows over the same
      period in 2010. Net new asset flows into ETFs/ETPs tracking North American indices were US$14.8 Bn YTD compared to US$14.5 Bn
      net outflows over the same period in 2010 and net outflows from emerging market indices were US$9.2 Bn YTD, greater than the
      US$2.6 Bn net outflows over the same period in 2010. Fixed income ETF/ETP net inflows were US$3.8 Bn YTD, less than the US$5.4 Bn
      net inflows over the same period in 2010, and net inflows into commodity ETFs/ETPs were US$1.9 Bn YTD compared to US$1.2 Bn net
      outflows over the same period in 2010.


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   20
ETFs and ETPs listed in the United States (continued)

ETFs
    • YTD, the number of ETFs have increased by 2.6% with 23 new ETFs launched. This compares to a 4.5% increase in the number of ETFs
      over the same period in 2010, when 35 new ETFs launched.
    • The top 100 ETFs, out of 919, account for 81.8% of United States ETF AUM, while 460 ETFs have less than US$100.0 Mn in assets,
      371 ETFs have less than US$50.0 Mn in assets and 124 ETFs have less than US$10.0 Mn in assets.
Trading volume
    • In February 2011, the ETF average daily trading volume in US dollars increased by 26.4% to US$51.9 Bn, compared to December 2010.
      This compares to average daily trading volume of US$69.2 Bn in February 2010.
    • In February 2011, United States ETF turnover was 21.2% of all United States equity turnover, which is less than the 21.6% reported in
      December 2010.
ETF providers
    • iShares is the largest ETF provider in terms of both number of products and assets, 216 ETFs and US$438.9 Bn respectively, reflecting
      47.2% market share; State Street Global Advisors is second with 97 ETFs, assets of US$188.8 Bn and 20.3% market share; followed by
      Vanguard with 64 ETFs, assets of US$157.5 Bn and 16.9% market share, at the end of February 2011.
    • Of the US$4.2 Bn of net new assets in United States listed ETFs in February 2011, Vanguard gathered the largest net inflows with
      US$2.5 Bn, followed by iShares with US$1.2 Bn net inflows, while State Street Global Advisors saw US$1.6 Bn net outflows.
    • YTD, of the US$16.3 Bn net new assets into United States listed ETFs, Vanguard gathered the largest net inflows with US$6.7 Bn,
      followed by State Street Global Advisors with US$3.5 Bn net inflows, while Bank of New York had the largest net outflows with
      US$1.1 Bn YTD.
    • The top three ETF providers, out of 28, account for 84.5% of United States ETF AUM. This compares to 85.4% out of 28 providers, at the
      end of February 2010.
    • 26 firms in the United States plan to launch their first ETF in the future.

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   21
ETFs and ETPs listed in the United States (continued)

Mutual funds
     • During 2010, according to Strategic Insight, net sales of mutual funds (excluding ETFs) were minus US$270.6 Bn in the United States,
       while net sales of ETFs domiciled in the United States were positive US$110.4 Bn.
ETPs
     • Additionally, there were 198 other ETPs1 with assets of US$122.9 Bn from 22 providers on one exchange. This compares to 145 ETPs
       with assets of US$84.5 Bn from 17 providers on one exchange, at the end of February 2010.
ETFs and ETPs
     • Assets in United States listed ETFs and ETPs crossed the US$1 trillion milestone in December 2010.
     • Combined, there were 1,117 products with assets of US$1,052.0 Bn, from 46 providers on two exchanges in the United States.
       This compares to 952 products with assets of US$763.1 Bn from 41 providers on two exchanges, at the end of February 2010.




1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including
   grantor trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                  22
United States ETF and ETP asset growth

                   Assets (US$ Bn)                                                                                                                                   # products
                   1,000                                                                                                                                                   1,000


                    900                                                                                                                                                    900


                    800                                                                                                                                                    800


                    700                                                                                                                                                    700


                    600                                                                                                                                                    600


                    500                                                                                                                                                    500


                    400                                                                                                                                                    400


                    300                                                                                                                                                    300


                    200                                                                                                                                                    200


                    100                                                                                                                                                    100


                      0                                                                                                                                                    0

 Assets (US$ Bn)           1993   1994   1995    1996   1997    1998     1999   2000    2001   2002   2003   2004   2005    2006    2007    2008    2009   2010   Feb-11
    ETF assets             $0.5   $0.4   $1.1    $2.4    $6.7   $15.6   $33.9   $65.6   $84.6 $102.3 $150.7 $227.7 $299.4 $406.8 $580.7 $497.1 $705.5 $891.0 $929.1
    ETP assets                                                           $2.0   $5.0    $3.8   $4.0   $6.1   $8.9   $14.4   $25.9   $40.5   $45.3   $88.1 $120.2 $122.9
    # ETFs                  1        1     2      19      19     29       30     81     101    113    117    152    201     343     601     698     772    896     919
    # ETPs                                                                2      14      17     17     17     17     20      37      71     136     142    185     198



Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                            23
ETF providers in the United States: ranked by AUM

                                                                      Feb-11                                                             YTD change
                                                                                                   Feb-11
                                                     #    AUM     %      ADV              #         NNA       YTD NNA     #       %        AUM        %     % market
          Provider                                 ETFs (US$ Bn) total (US$ Bn)        planned    (US$ Bn)    (US$ Bn)   ETFs   ETFs     (US$ Bn)   AUM      share
          iShares                                   216  $438.9 47.2%    $15.2            12        $1.2        -$1.1     0     0.0%        $7.5    1.7%     -1.2%
          State Street Global Advisors               97  $188.8 20.3%    $24.1            29        -$1.6       $3.5      5     5.4%       $12.0    6.8%      0.5%
          Vanguard                                   64  $157.5 16.9%    $2.0             1         $2.5        $6.7      1     1.6%        $9.2    6.2%      0.3%
          PowerShares                               111    $45.9    4.9%       $3.2       48        -$0.3        $2.6     0     0.0%       $4.3     10.4%     0.3%
          ProShares                                 101    $22.7    2.4%       $3.3       98        $0.8         $1.0     1     1.0%       $1.1      5.1%     0.0%
          Van Eck Associates Corp                    29    $21.1    2.3%       $0.9       35        $1.0         $2.0     0     0.0%       $1.1      5.5%    0.0%
          Bank of New York                           1     $11.8    1.3%       $0.5       0         -$0.6        -$1.1    0     0.0%      -$0.4     -3.2%    -0.1%
          WisdomTree Investments                     45    $10.2    1.1%       $0.2       72        $0.1         $0.5     1     2.3%      $0.3       3.3%    0.0%
          First Trust Advisors                       44    $6.7     0.7%       $0.1       15        $0.5         $0.9     1     2.3%      $1.2      22.3%    0.1%
          Direxion Shares                           39      $6.5    0.7%       $2.3      174        $0.0         -$0.2    0     0.0%      -$0.1     -1.8%    0.0%
          Rydex SGI                                 25      $5.1    0.5%       $0.1       95        -$0.4        -$0.2    1     4.2%      $0.1       1.4%    0.0%
          Guggenheim Funds                          42      $3.6    0.4%       $0.0       29        $0.1         $0.0     4     10.5%     $0.0       0.0%    0.0%
          Charles Schwab Investment Management      13      $3.5    0.4%       $0.1       0         $0.4         $0.7     2     18.2%     $0.8      28.6%    0.1%
          PIMCO                                     13      $2.4    0.3%       $0.0       8         $0.1         $0.3     0     0.0%      $0.3      12.1%    0.0%
          Global X Funds                            22      $1.5    0.2%       $0.0       29        $0.1         $0.2     5     29.4%     $0.2      13.0%    0.0%
          ALPS ETF Trust                             3      $0.9    0.1%       $0.0        7         $0.1        $0.2     0     0.0%       $0.2     29.1%    0.0%
          RevenueShares                              6      $0.6    0.1%       $0.0        8         $0.0        $0.0     0     0.0%       $0.1     10.6%    0.0%
          Emerging Global Advisors                   9      $0.5    0.1%       $0.0       14         $0.0        $0.1     0     0.0%       $0.0      8.6%    0.0%
          IndexIQ Advisors                           9      $0.5    0.0%       $0.0       24         $0.1        $0.2     0     0.0%       $0.2     52.0%    0.0%
          AdvisorShares                              6      $0.2    0.0%       $0.0       7          $0.0        $0.0     1     20.0%      $0.0     28.8%    0.0%
          Fidelity Management & Research             1      $0.2    0.0%       $0.0       0          $0.0        $0.0     0     0.0%       $0.0     18.6%    0.0%
          Jefferies Asset Management                 4      $0.2    0.0%       $0.0       2          $0.0        $0.0     0     0.0%       $0.0     32.3%    0.0%
          DBX Strategic Advisors                     5      $0.1    0.0%       $0.0       39         $0.0        $0.0     0     0.0%       $0.0      5.0%    0.0%
          Grail Advisors                             5      $0.0    0.0%       $0.0       3          $0.0        $0.0     0     0.0%       $0.0     11.9%    0.0%
          Javelin Investment Management              1      $0.0    0.0%       $0.0        0         $0.0        $0.0     0      0.0%      $0.0     22.4%    0.0%
          US One Trust                               1      $0.0    0.0%       $0.0        2         $0.0        $0.0     0      0.0%      $0.0     47.1%    0.0%
          FaithShares                                5      $0.0    0.0%       $0.0        0         $0.0        $0.0     0      0.0%      $0.0     -7.9%    0.0%
          Pax World Management                       2      $0.0    0.0%       $0.0        1         $0.0        $0.0     1     100.0%     $0.0     98.2%    0.0%
                                                                                                                                                       continued…
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                   24
ETF providers in the United States: ranked by AUM (continued)

                                                                      Feb-11                       Feb-11                              YTD change
                                                     #       AUM     %         ADV          #       NNA       YTD NNA     #      %       AUM       %     % market
          Provider                                  ETFs   (US$ Bn) total    (US$ Bn)   planned   (US$ Bn)    (US$ Bn)   ETFs   ETFs   (US$ Bn)   AUM     share
          AllianceBernstein                           -       -       -         -           1        -           -         -      -       -        -        -
          Dreyfus Corp                                -       -       -         -           1        -           -         -      -       -        -        -
          Eaton Vance                                 -       -       -         -           5        -           -         -      -       -        -        -
          Exchange Traded Spreads Trust               -       -       -         -           5        -           -         -      -       -        -        -
          Factor Advisors                             -       -       -         -          22        -           -         -      -       -        -        -
          FactorShares                                -       -       -         -           0        -           -         -      -       -        -        -
          Firsthand Capital                           -       -       -         -           1        -           -         -      -       -        -        -
          Florentez Investment                        -       -       -         -           1        -           -         -      -       -        -        -
          FocusShares                                 -       -       -         -          21        -           -         -      -       -        -        -
          Georgetown Investment Management            -       -       -         -           5        -           -         -      -       -        -        -
          Hartford                                    -       -       -         -           1        -           -         -      -       -        -        -
          Huntington Asset Advisors                   -       -       -         -           3        -           -         -      -       -        -        -
          Janus Capital Management                    -       -       -         -           1        -           -         -      -       -        -        -
          John Hancock                                -       -       -         -           1        -           -         -      -       -        -        -
          JP Morgan Asset Management                  -       -       -         -           2        -           -         -      -       -        -        -
          Legg Mason                                  -       -       -         -           1        -           -         -      -       -        -        -
          Macro Securities Depositor                  -       -       -         -           2        -           -         -      -       -        -        -
          Neuberger Berman                            -       -       -         -           1        -           -         -      -       -        -        -
          Next Investments                            -       -       -         -           2        -           -         -      -       -        -        -
          Northern Trust                              -       -       -         -           2        -           -         -      -       -        -        -
          OppenheimerFunds                            -       -       -         -           1        -           -         -      -       -        -        -
          RiverPark Advisors                          -       -       -         -           4        -           -         -      -       -        -        -
          Russell Investments                         -       -       -         -          36        -           -         -      -       -        -        -
          ShariahShares                               -        -       -         -         2           -             -    -      -        -         -       -
          Spinnaker ETF Trust                         -        -       -         -         1           -             -    -      -        -         -       -
          T Rowe Price                                -        -       -         -         1           -             -    -      -        -         -       -
                                                                      100.
          Total                                     919     $929.1             $51.9      875        $4.2       $16.3     23    2.6%    $38.1     4.3%
                                                                      0%


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                25
United States ETF/ETP net new assets by type of exposure

                                                            Feb-11
                                 # ETFs        ADV         Assets                NNA                    YTD-11 NNA           2010 NNA             2009 NNA
Exposure                          /ETPs    (US$ Mn)      (US$ Mn)             (US$ Mn)                     (US$ Mn)           (US$ Mn)            (US$ Mn)
Equity                              782    49,570.9     778,979.5       2,660.4                   11,263.4            74,846.7            36,476.3
 North America                      481    40,073.4     525,866.7       4,232.7                   14,804.5            37,000.6             1,987.0
  Active                              4         2.6          54.9          26.9                       39.4                 5.6                12.8
  Broad                             265    31,715.2     404,625.6       1,768.0                   10,061.4            26,660.8           (11,180.1)
  Consumer goods/services            25       965.0       9,587.4        (327.3)                  (1,116.0)            2,278.4               287.2
  Energy                             31     2,429.8      28,492.6       3,613.1                    3,963.9             2,562.8             1,145.3
  Financials                         31     2,070.9      19,783.9      (1,309.0)                    (284.4)            1,281.8             1,409.1
  Healthcare                         21       306.3       8,100.4        (464.3)                    (322.2)             (587.1)             (400.8)
  Industrials                        15       534.4       6,062.2        (299.9)                     (19.3)            1,031.7               914.1
  Materials                          11       726.2       6,928.9         418.8                      251.7               857.5             1,206.2
  Other                               6        16.7       2,720.1          33.0                       43.5                 7.6               (77.1)
  Real estate                        20       535.5      17,074.6         389.3                      634.4             1,121.5             4,377.4
  Technology                         36       603.9      16,257.2         672.2                    1,788.1             1,459.5             2,626.7
  Telecommunications                  6        10.4       1,094.5         (68.8)                    (114.4)               88.6               139.4
  Utilities                          10       156.5       5,084.5        (219.2)                    (121.4)              232.0             1,526.9
 Asia Pacific                        28       604.4      22,121.9         298.3                      218.2             1,231.1             1,825.8
 Europe                              28       292.8      12,220.6       1,311.5                    1,530.1               834.4             1,574.0
 Global                              57       130.9      14,293.6         854.9                    1,463.7             1,282.7             3,353.7
 Global (ex-US)                      72     1,026.0      67,462.8       1,308.4                    2,400.1             4,693.7               691.4
                                                                                                                                                     continued…




Note: NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.          26
United States ETF/ETP net new assets by type of exposure (continued)

                                                            Feb-11
                                 # ETFs        ADV         Assets                NNA                     YTD-11 NNA           2010 NNA            2009 NNA
Exposure                          /ETPs    (US$ Mn)      (US$ Mn)             (US$ Mn)                      (US$ Mn)           (US$ Mn)           (US$ Mn)
 Emerging markets – equity          116     7,443.5     137,013.9      (5,345.4)                   (9,153.3)           29,804.2           27,044.5
  Broad – emerging markets           41     4,622.5      88,500.3      (4,246.5)                   (9,464.3)           25,546.1           16,691.3
  Regional – emerging markets        13       115.1       4,475.2        (307.9)                     (514.6)              269.3            1,400.7
  Country – emerging markets         62     2,705.9      44,038.4        (791.0)                      825.6             3,988.9            8,952.5
    Brazil                            9     1,021.9      13,846.7         (50.3)                    1,187.7               951.2            2,545.7
    Chile                             1        22.4         851.5         (10.6)                      (14.4)              486.4               50.1
    China                            22       624.7       9,158.7        (501.1)                   (1,172.8)           (1,612.1)           2,191.1
    Colombia                          1         3.2         133.6         (21.1)                      (27.4)              158.2                5.3
    Egypt                             1         6.8          28.4           -                          17.6                 8.8
    India                             7       128.0       2,996.5         (68.0)                     (166.8)            1,008.6             774.6
    Indonesia                         2        14.8         623.5         (44.2)                      424.8               600.7             167.5
    Malaysia                          1        36.1         925.7         (72.3)                      (40.2)              225.8              61.0
    Mexico                            3       171.9       1,475.3         (79.0)                     (207.9)              288.3             302.0
    Peru                              1        15.6         670.9         127.1                       151.8               299.8              96.3
    Philippines                       1         0.8          21.8           4.4                         7.9                16.0
    Poland                            2         3.4         179.4           9.2                        26.2               132.3                7.3
    Russia                            3       170.5       3,462.8         233.5                       501.2               960.0              378.8
    South Africa                      1        21.3         601.1         (80.8)                      (38.9)               35.7               18.4
    South Korea                       2       254.2       4,311.5           6.0                       247.5               336.8              770.6
    Taiwan                            2       160.4       3,401.3         (41.4)                      173.0              (648.8)           1,093.7
    Thailand                          1        11.4         569.2         (24.0)                      (88.6)              280.0              174.8
    Turkey                            1        33.1         508.4        (195.8)                     (195.8)              301.5              204.7
    Vietnam                           1         5.6         272.2          17.5                        40.9               159.8               88.2

                                                                                                                                                     continued…




Note: NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.              27
United States ETF/ETP net new assets by type of exposure (continued)

                                                            Feb-11
                                 # ETFs        ADV         Assets               NNA                      YTD-11 NNA           2010 NNA             2009 NNA
Exposure                          /ETPs    (US$ Mn)      (US$ Mn)            (US$ Mn)                       (US$ Mn)           (US$ Mn)            (US$ Mn)
Fixed income                        138     2,726.5     141,243.1        994.4                      3,843.5            29,424.8            44,801.9
  Active                              6         8.9         985.1         42.3                        132.9               798.7                48.8
  Aggregate                          11       204.3      29,205.6         72.9                        123.0             5,039.0             8,216.7
  Convertible                         1        10.2         716.7         75.2                        161.4               271.7               212.0
  Corporate                          21       221.5      27,035.6        227.4                        897.3             5,044.7            10,560.6
  Government                         52     1,862.9      35,284.0        (89.2)                       728.1             9,578.6             6,706.9
  High yield                          8       227.6      16,025.2        476.1                      1,557.9             5,612.1             4,429.4
  Inflation                           9       108.7      22,189.8         31.5                        269.2               860.5            10,139.8
  Mortgage                            3        16.3       2,414.3         89.3                        123.3               506.9               913.1
  Municipal                          27        66.1       7,386.7         68.8                       (149.5)            1,712.7             3,574.6
Commodities                         113     4,635.3     122,023.8      3,527.7                      1,858.6            13,291.3            32,551.8
  Agriculture                        18       315.5       9,725.3      1,463.3                      2,569.4               340.6             1,927.6
  Broad                              20       255.5      14,179.7        783.1                      1,305.1               795.2             4,958.1
  Energy                             23       866.2       7,513.3        548.0                        484.3              (953.1)            6,055.9
  Industrial metals                  20        61.8       2,476.7        212.8                        494.0               420.9               798.1
  Livestock                           1         5.7         116.9         18.3                         49.8               (37.0)               18.9
  Precious metals                    31     3,130.6      88,011.9        502.2                     (3,044.1)           12,724.5            18,793.2
Currency                             36       254.0       6,342.8        107.9                        367.2            (2,169.7)            4,154.9
Alternative                          17       565.9       2,384.3        102.5                        342.4             3,354.7             1,258.7
Mixed                                31         7.8       1,067.6         86.8                        141.4               441.8               225.5

Total                              1,117    57,760.5   1,052,041.2      7,479.6                    17,816.4            119,189.5          119,469.1




Note: NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.          28
Sector ETF net new assets

                                                                       Index total return       ETF AUM         ETF short
                                                                             (US$)              (US$ Mn)         interest
                                                    ETF       Index                                   YTD %     (US$ Mn)    ETF ADV     Feb-11 net flows   YTD 2011 net flows    2010 net flows
Sector                                             ticker     ticker    Feb-11    YTD       Feb-11    change      15-Feb    (US$ Mn)       (US$ Mn)            (US$ Mn)            (US$ Mn)
Dow Jones United States sector ETFs                                                         7,354.5     12.4%     210.4      140.3      268.4                454.0               -112.4
iShares Dow Jones U.S. Basic Materials            IYM US    DJUSBM       2.8%      2.6%     1,218.2      8.5%     60.7       40.3        45.8                 66.7                 85.0
iShares Dow Jones U.S. Consumer Goods              IYK US   DJUSNC       3.4%     1.7%       298.6      -3.7%      17.3        4.0       -9.6                -16.1                -62.5
iShares Dow Jones U.S. Consumer Services          IYC US    DJUSCY       4.7%     4.8%       212.4       1.3%     19.4         4.1       -0.5                 -7.3                 19.3
iShares Dow Jones U.S. Energy                      IYE US   DJUSEN       7.4%     15.5%     1,145.4     42.1%      15.4       17.5      121.9                202.3                -21.1
iShares Dow Jones U.S. Financial                   IYF US   DJUSFN       2.9%     5.5%       559.9      20.3%     22.7       32.7        12.3                 68.5                -54.5
iShares Dow Jones U.S. Healthcare                 IYH US    DJUSHC       3.4%     4.0%       587.7       6.5%      26.6        6.0        0.0                 13.0                -70.1
iShares Dow Jones U.S. Industrial                  IYJ US   DJUSIN       2.7%     7.1%       500.0      35.4%       9.2       10.3       63.6                103.9                 16.1
iShares Dow Jones U.S. Technology                 IYW US    DJUSTC       2.0%     6.1%      1,676.2     15.5%     22.0       15.1        93.8                137.1                -35.7
iShares Dow Jones U.S. Telecommunications          IYZ US   DJSTELT      1.5%     -0.2%      634.6     -16.4%       7.7        7.8      -66.8               -121.9                 16.3
iShares Dow Jones U.S. Utilities                  IDU US    DJUSUT       1.7%      3.3%      521.4       4.8%       9.6        2.6        7.9                  7.8                 -5.1
S&P equal weight sector ETFs                                                                 406.9      18.2%     19.9        4.8        18.9                38.8                  26.2
Rydex S&P Equal Weight Consumer Discretionary     RCD US       S25       6.1%     5.2%        24.1     -12.3%      2.1        0.3        -4.8                -4.8                   5.0
Rydex S&P Equal Weight Consumer Staples           RHS US       S30       5.1%     2.5%        14.7       2.7%      0.1        0.1         0.0                 0.0                   2.5
Rydex S&P Equal Weight Energy                     RYE US       S10       7.8%     16.0%       40.1      82.4%      2.9        1.1        10.4                13.5                   0.1
Rydex S&P Equal Weight Financial                  RYF US       S40       3.7%     6.3%        23.7      31.0%      0.3        0.3         2.9                 4.3                   1.9
Rydex S&P Equal Weight Health Care                RYH US       S35       3.2%     5.9%        49.9      -0.7%      0.8        0.3        -9.7                -3.1                 -22.3
Rydex S&P Equal Weight Industrial                 RGI US       S20       1.0%      4.4%       53.8      10.6%      0.8        0.3         2.9                 2.9                  21.5
Rydex S&P Equal Weight Materials                  RTM US       S15       2.2%      3.9%       45.9      12.1%      0.5        0.5         0.0                 3.2                   0.2
Rydex S&P Equal Weight Technology                 RYT US       S45       4.4%     8.4%       131.4      28.4%     10.1        1.6        14.7                20.3                   9.9
Rydex S&P Equal Weight Utilities                  RYU US       S55       0.6%      2.4%       23.4      14.6%      2.3        0.3         2.5                 2.5                   7.4
S&P select sector ETFs                                                                      43,949.2     9.6%    8,667.6    3,790.2      155.7             1,218.8              4,791.3
Consumer Discretionary Select Sector SPDR         XLY US       IXY       6.0%     5.3%      2,124.1    -14.3%     727.9      181.1      -106.6              -465.5                641.7
Consumer Staples Select Sector SPDR               XLP US       IXR       2.8%     1.3%      3,028.0     -2.4%     607.6      168.6      -123.7              -107.2                521.7
Energy Select Sector SPDR                         XLE US       IXE       7.3%     15.1%     10,932.3    30.4%    2,458.1    1,145.7    1,568.1             1,282.9              1,392.0
Financial Select Sector SPDR                      XLF US       IXM       2.9%      5.8%     7,962.9      6.6%    1,489.5     870.1      -688.7                53.7                 87.0
Health Care Select Sector SPDR                    XLV US       IXV       3.1%     3.7%      2,623.1     -3.1%     649.7      217.1      -261.3              -181.3               -274.5
Industrial Select Sector SPDR                     XLI US        IXI      2.2%      6.2%     3,867.7      3.3%     856.6      455.3      -386.5              -106.8              1,136.7
Materials Select Sector SPDR                      XLB US       IXB       2.6%     2.6%      2,703.9      4.2%     721.1      368.2       257.6                53.5                499.1
Technology Select Sector SPDR                     XLK US       IXT       2.1%     5.4%      7,013.4     19.9%     598.8      225.0       118.7               842.2                730.5
Utilities Select Sector SPDR                      XLU US       IXU       1.4%     2.5%      3,693.9     -1.7%     558.3      159.0      -221.8              -152.7                 57.2

                                                                                                                                                                                   continued…



Note: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses.
Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                             FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                          29
Sector ETF net new assets (continued)

                                                                          Index total return       ETF AUM        ETF short
                                                                                (US$)              (US$ Mn)        interest
                                                       ETF       Index                                   YTD %    (US$ Mn)    ETF ADV    Feb-11 net flows   YTD 2011 net flows    2010 net flows
Sector                                                ticker     ticker   Feb-11     YTD       Feb-11    change     15-Feb    (US$ Mn)      (US$ Mn)            (US$ Mn)            (US$ Mn)
MSCI United States investable market sector ETFs                                               8,491.0   18.0%      64.2        78.1     587.9              1,333.1              2,588.0
Vanguard Consumer Discretionary                      VCR US    MZUSI0CD    5.4%      4.4%       385.7     8.2%       4.0         3.9       6.5                 12.6                 97.7
Vanguard Consumer Staples                            VDC US    MZUSI0CS    2.6%       0.9%      616.6     1.3%       3.6         3.2     -14.8                 -0.2                -32.3
Vanguard Energy                                      VDE US     MSCIEN     7.0%      14.5%     2,078.3   35.1%      21.8        28.9     165.1                287.8                274.2
Vanguard Financials                                  VFH US    MZUSI0FN    2.8%      5.2%       680.3    18.1%       1.3         5.8       3.3                 71.0                 13.4
Vanguard Health Care                                 VHT US    MZUSI0HC    3.3%      3.9%       663.7     9.0%       3.2         2.9       6.0                 28.9                 -9.4
Vanguard Industrials                                  VIS US    MSCIIN     2.4%      6.1%       558.3    26.8%      12.0         6.7      55.6                 88.7                 27.8
Vanguard Information Technology                      VGT US    MZUSI0IT    2.2%       6.3%     1,815.4   21.9%       4.8        14.0     120.2                227.9                361.8
Vanguard Materials                                   VAW US    MZUSI0MT    2.8%      3.1%       685.9    11.7%      11.3         8.3      25.8                 50.4                 32.0
Vanguard Telecommunication Services                  VOX US     MSCITC     2.3%      -1.3%      325.2     3.1%       0.7         1.6       0.0                  6.6                 73.2
Vanguard Utilities                                   VPU US    MZUSI0UT    1.2%      2.6%       681.5     5.3%       1.5         2.8      -6.9                 13.7                169.3
Vanguard REIT                                        VNQ US      RMZ       4.6%       8.1%     8,682.6   15.8%      182.6       78.9     227.1                545.8              1,580.4
S&P global sector ETFs                                                                         5,217.6    9.3%      62.3        38.3      57.1               138.3                 -25.9
iShares S&P Global Consumer Discretionary            RXI US      SGD       4.3%      4.8%       139.6    6.9%        0.3         0.9       2.7                 2.7                  25.5
iShares S&P Global Consumers Staples                 KXI US      SGCS      3.0%       0.7%      316.7    -3.3%       1.8         2.1     -12.3               -12.3                 -15.4
iShares S&P Global Energy                            IXC US      SGES      6.4%      13.0%     1,559.6   18.8%      20.4        12.0      30.5                72.5                 112.9
iShares S&P Global Financials                        IXG US      SGFS      3.9%       8.0%      310.3     7.8%      17.0         3.7       0.0                 0.0                 -44.1
iShares S&P Global Healthcare                        IXJ US      SGH       3.6%      4.0%       486.4    2.0%        0.1         2.0      -7.9                -7.9                 -46.3
iShares S&P Global Industrials                       EXI US      SGN       2.3%       6.0%      236.4    18.8%       2.3         1.9      11.3                25.2                  10.1
iShares S&P Global Materials                         MXI US      SGM       3.8%       1.8%      825.2     6.1%       8.4         5.8      29.7                37.0                -252.1
iShares S&P Global Technology                        IXN US       SGI      1.2%       5.2%      647.4     7.7%       8.3         4.3       9.8                16.1                  98.1
iShares S&P Global Telecommunications                IXP US       SGT      2.4%      4.3%       428.7    4.7%        1.0         4.3      -9.0                 2.7                  67.0
iShares S&P Global Utilities                         JXI US      SGU       2.4%      5.4%       267.3    5.8%        2.9         1.4       2.3                 2.3                  18.4
MSCI ACWI ex. United States sector ETFs                                                         53.1      3.4%       0.3        0.2        0.0                  0.0                43.1
iShares MSCI ACWI ex US Consumer Discretionary       AXDI US   MSWDUCDN     1.8%      2.3%      6.6       2.3%       0.0        0.0        0.0                  0.0                 5.3
iShares MSCI ACWI ex US Consumer Staples             AXSL US   MSWDUCSN     2.6%     -0.8%      3.0      -0.4%       0.0        0.0        0.0                  0.0                 2.4
iShares MSCI ACWI ex US Energy                       AXEN US   MSWDUENN     5.8%      9.4%      6.7       9.4%       0.1        0.1        0.0                  0.0                 5.1
iShares MSCI ACWI ex US Health Care                  AXHE US   MSWDUHCN     3.0%      2.9%      5.8       3.2%       0.0        0.0        0.0                  0.0                 5.0
iShares MSCI ACWI ex US Industrials                  AXID US   MSWDUINN     0.7%      2.7%      6.3       3.3%       0.0        0.0        0.0                  0.0                 5.0
iShares MSCI ACWI ex US Information Technology       AXIT US   MSWDUITN    -1.2%      1.4%      6.1       1.6%       0.1        0.0        0.0                  0.0                 5.1
iShares MSCI ACWI ex US Materials                    AXMT US   MSWDUMTN     3.5%      0.7%      6.9       0.5%       0.0        0.0        0.0                  0.0                 5.1
iShares MSCI ACWI ex US Telecommunication Services   AXTE US   MSWDUTCN     1.9%      4.4%      6.0       4.4%       0.0        0.0        0.0                  0.0                 5.1
iShares MSCI ACWI ex US Utilities                    AXUT US   MSWDUUTN     1.8%     4.6%       5.7      4.8%        0.0        0.0        0.0                  0.0                 5.0




Note: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses.
Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. NNA – Net New Assets. Data as at end February 2011.
Source: National Stock Exchange (NSX), Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                       30
United States leveraged and inverse ETF/ETP net new assets by type of exposure

                                                          Feb-11
                                # ETFs        ADV         Assets               NNA                       YTD NNA            2010 NNA            2009 NNA
Exposure                         /ETPs    (US$ Mn)      (US$ Mn)            (US$ Mn)                      (US$ Mn)           (US$ Mn)           (US$ Mn)
Leveraged                           88     3,370.0      13,685.8         91.8                      (580.6)           (3,044.7)          (6,956.1)
  Equity                            64     3,052.9      11,434.1       (170.9)                     (930.6)           (2,878.6)          (6,405.6)
    Asia Pacific                     2         0.4          16.5          -                           0.0                 3.0                8.7
    Emerging markets                10        77.8         609.4         89.5                        10.6                27.7              316.2
    Europe – equity                  1         0.0           3.8          -                           0.0                 2.8                -
    Global (ex-United States)        3         1.5          44.9          3.8                         3.8                (3.9)              23.9
    North America                   48     2,973.1      10,759.4       (264.2)                     (945.0)           (2,908.3)          (6,754.3)
  Alternative                        2         6.2          27.8         13.3                        16.0                27.0
  Commodities                        9       298.2       2,121.8        216.7                       297.9              (183.3)            (586.3)
  Currency                           3         0.5          12.5         (1.5)                       (3.2)               (1.0)              10.7
  Fixed income                       5        12.0          64.8          9.5                        14.6                (8.9)              25.1
  Mixed                              5         0.1          24.8         24.7                        24.7                   -
Inverse                             32       189.2       4,234.1         50.1                       344.9             1,562.5            3,284.3
  Equity                            15       138.9       2,747.7        (25.6)                      128.0               938.2            2,766.2
    Emerging markets                 2         5.7         266.6         47.6                        52.1                44.5              273.3
    Global (ex-United States)        1         1.0          78.5        (21.4)                      (21.4)               93.5               43.3
    North America                   12       132.3       2,402.6        (51.8)                       97.3               800.2            2,449.6
  Alternative                        4        13.9         100.2         10.5                        41.5                40.4                -
  Commodities                        6         3.6         115.4         (9.4)                       64.0                (2.7)             165.9
  Currency                           2         4.8         213.9         (9.8)                       (5.4)             (128.7)             122.3
  Fixed income                       5        27.9       1,056.8         84.4                       116.8               715.3              229.9
Leveraged inverse                   84     2,438.0      15,477.1        918.9                     1,622.5             6,407.8           16,649.9
  Equity                            64     1,657.2       7,490.0        410.5                     1,119.3             2,910.8           13,636.1
    Asia Pacific                     2         0.2          14.2          -                           0.0                (0.5)              18.6
    Emerging markets                10        92.1         577.8         52.7                       100.7               136.4              645.8
    Europe – equity                  1         1.4          42.3         (3.8)                       (2.4)              100.6                9.4
    Global – equity                  1         0.2          28.8          3.3                         5.5                21.3                -
    Global (ex-United States)        3         0.9          29.9          0.5                        (2.7)               31.1               13.5
    North America                   47     1,562.3       6,797.0        357.8                     1,018.1             2,621.9           12,948.9
  Commodities                       10        98.6         542.8          1.6                        49.5               316.9              337.3
  Currency                           2        28.5         767.6         69.7                       145.9               514.6              170.2
  Fixed income                       8       653.8       6,676.8        437.0                       307.9             2,665.5            2,506.2
Total                              204     5,997.2      33,397.0      1,060.8                     1,386.8             4,925.5           12,978.1



Note: NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.       31
Types of ETF exposure in the United States

                                                Feb-11                         YTD change
                               #        AUM           %        ADV       #        AUM        %
Type of exposure              ETFs    (US$ Bn)       total   (US$ Bn)   ETFs    (US$ Bn)    AUM
Equity                         563     $732.1       78.8%     $43.6      14      $30.9      4.4%
  Large-cap                    40      $179.8       19.4%     $22.6      0       $14.4      8.7%                         Large-cap – equity 19.4%
  Emerging markets             93      $134.8       14.5%      $7.2      4       -$16.4     -10.9%                       Emerging markets – equity 14.5%
  International                160     $125.0       13.4%      $2.3      3       $11.8      10.5%                        Fixed income 14.2%
  Sector                       151     $103.9       11.2%      $5.8      5       $10.4      11.1%                        International – equity 13.4%

  Growth                       30       $45.9       4.9%       $0.5      0        $3.9      9.2%                         Sector – equity 11.2%
                                                                                                                         Growth – equity 4.9%
  Value                        30       $39.2       4.2%       $0.4      0        $3.1      8.6%
                                                                                                                         Value – equity 4.2%
  Broad market                 21       $38.3       4.1%       $0.3      1        $1.7      4.8%
                                                                                                                         Broad market – equity 4.1%
  Mid-cap                      17       $33.9       3.6%       $0.7      1        $2.1      6.5%
                                                                                                                         Mid-cap – equity 3.6%
  Small-cap                    21       $31.3       3.4%       $3.9      0        $0.0      -0.1%
                                                                                                                         Small-cap – equity 3.4%
Fixed income                   109     $132.3       14.2%      $2.0      5        $3.8      2.9%                         Custom 2.2%
Custom                         57       $20.6       2.2%       $0.1      0        $2.1      11.4%                        Leveraged inverse 1.5%
Leveraged inverse              62       $14.1       1.5%       $2.3      1        $0.5      3.9%                         Commodities 1.3%
Commodities                    22       $12.2       1.3%       $0.6      1       -$0.1      -0.6%                        Leveraged 1.2%

Leveraged                      62       $11.4       1.2%       $3.1      0        $0.3      2.8%                         Inverse 0.4%
                                                                                                                         Currency 0.1%
Inverse                        15       $3.6        0.4%       $0.2      0        $0.1      2.2%
                                                                                                                         Active 0.1%
Currency                        9       $1.4        0.1%       $0.0      0        $0.2      16.7%
Active                         20       $1.3        0.1%       $0.0      2        $0.2      21.8%
Total                          919     $929.1      100.0%     $51.9      23      $38.1      4.3%




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.      32
Index providers in the United States: ranked by AUM

                                            Feb-11                           YTD change
                              #         AUM        %        ADV        #        AUM        %
Index provider               ETFs     (US$ Bn)    total   (US$ Bn)    ETFs    (US$ Bn)    AUM
S&P                           182      $278.1    29.9%      $25.9       4       $17.8     6.8%
                                                                                                                            S&P 29.9%
MSCI                          119      $264.9    28.5%      $8.7        3        $0.3     0.1%
                                                                                                                            MSCI 28.5%
Barclays Capital               65      $105.9    11.4%      $2.3        2        $2.9     2.9%
                                                                                                                            Barclays Capital 11.4%
Russell                        65      $83.2      9.0%      $6.7        2        $3.3     4.1%                              Russell 9.0%
Dow Jones                      84      $43.8      4.7%      $2.0        2        $3.8     9.4%                              Dow Jones 4.7%
NASDAQ OMX                     25      $30.4      3.3%      $3.7        1        $3.7     14.0%                             NASDAQ OMX 3.3%
FTSE                           43      $22.4      2.4%      $0.7        2        $0.3     1.2%                              FTSE 2.4%
Markit                         2       $21.2      2.3%      $0.2        0        $0.7     3.7%                              Markit 2.3%
WisdomTree                     35       $8.6      0.9%      $0.1        0        $0.1     1.4%                              WisdomTree 0.9%

NYSE Euronext                  10       $7.9      0.9%      $0.5        2       -$0.7     -7.6%                             NYSE Euronext 0.9%
                                                                                                                            Deutsche Boerse 0.8%
Deutsche Boerse                3        $7.3      0.8%      $0.3        0        $1.8     32.2%
                                                                                                                            Indxis 0.7%
Indxis                         6        $6.7      0.7%      $0.0        0        $0.9     16.1%
                                                                                                                            Structured Solutions 0.6%
Structured Solutions           24       $5.8      0.6%      $0.2        1        $0.2     3.7%
                                                                                                                            Intellidex 0.3%
Intellidex                     35       $3.1      0.3%      $0.0        0        $0.3     10.8%
                                                                                                                            Morningstar 0.2%
Morningstar                    10       $2.1      0.2%      $0.0        0        $0.2     8.9%
                                                                                                                            BNY Mellon 0.2%
BNY Mellon                     12       $1.8      0.2%      $0.0        0       -$0.4     -18.7%                            S-Network 0.2%
S-Network                      12       $1.8      0.2%      $0.0        0        $0.2     13.7%                             ISE 0.1%
ISE                            10       $1.2      0.1%      $0.0        0        $0.1     10.4%                             Zacks 0.1%
Zacks                          10       $0.8      0.1%      $0.0        0        $0.1     12.7%                             Value Line 0.0%
Value Line                     3        $0.3      0.0%      $0.0        0        $0.0     9.7%                              STOXX 0.0%

STOXX                          3        $0.2      0.0%      $0.0        0        $0.0     4.9%                              Other 3.4%

Other                         161      $31.5      3.4%      $0.5        4        $2.4     8.2%
Total                         919      $929.1    100.0%     $51.9      23       $38.1     4.3%
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.     33
Top 20 ETFs in the United States

Ranked by Assets Under Management (AUM)                                                  Ranked by US$ Average Daily Trading Volumes (ADV)
                                                                     ADV                                                                                    ADV
                                             Bloomberg     AUM       (‘000      ADV                                                 Bloomberg     ADV       (‘000      AUM
ETF                                            ticker    (US$ Mn)   shares)   (US$ Mn)   ETF                                          ticker    (US$ Mn)   shares)   (US$ Mn)

SPDR S&P 500                                  SPY US     94,779.0   137,432   18,178.1   SPDR S&P 500                                SPY US     18,178.1   137,432   94,779.0

Vanguard MSCI Emerging Markets ETF            VWO US     42,825.5   23,570     1,091.8   iShares Russell 2000 Index Fund             IWM US     3,695.1    45,499    16,300.4

iShares MSCI EAFE Index Fund                  EFA US     39,125.4   13,561      825.4    iShares MSCI Emerging Markets Index Fund    EEM US     3,271.5    71,400    36,420.6

iShares MSCI Emerging Markets Index Fund      EEM US     36,420.6   71,400     3,271.5   PowerShares QQQ Trust                      QQQQ US     3,027.7    52,531    25,435.2

iShares S&P 500 Index Fund                    IVV US     28,142.7    2,490      330.7    Energy Select Sector SPDR Fund              XLE US     1,126.6    14,911    10,866.7

PowerShares QQQ Trust                        QQQQ US     25,435.2   52,531     3,027.7   Vanguard MSCI Emerging Markets ETF          VWO US     1,091.8    23,570    42,825.5

iShares Barclays TIPS Bond Fund               TIP US     19,497.5    787        83.8     iShares MSCI Brazil Index Fund              EWZ US      999.6     13,734    12,690.6

Vanguard Total Stock Market ETF               VTI US     19,066.0    1,975      134.6    iShares Barclays 20+ Year Treasury          TLT US      892.5      9,893    2,676.1

iShares Russell 2000 Index Fund               IWM US     16,300.4   45,499     3,695.1   iShares MSCI EAFE Index Fund                EFA US      825.4     13,561    39,125.4

iShares Russell 1000 Growth Index Fund        IWF US     13,677.6    2,313      139.7    Financial Select Sector SPDR Fund           XLF US      807.7     48,083    7,920.9

iShares iBoxx $ Investment Grade Corporate    LQD US     12,962.7    1,045      112.7    SPDR Dow Jones Industrial Average ETF       DIA US      785.9      6,354    9,841.8

iShares MSCI Brazil Index Fund                EWZ US     12,690.6   13,734      999.6    Direxion Daily Financial Bull 3x Shares     FAS US      628.7     19,540    1,656.9

S&P 400 MidCap SPDR                           MDY US     11,821.0    2,867      501.6    ProShares UltraShort 20+ Year Treasury      TBT US      592.5     14,868    5,695.3

iShares Russell 1000 Value Index Fund         IWD US     11,675.9    1,635      111.2    iShares FTSE China 25 Index Fund            FXI US      582.1     13,865    6,809.5

iShares Barclays Aggregate Bond Fund          AGG US     11,030.1    669        70.1     ProShares Ultra S&P500                      SSO US      551.9     10,465    1,703.7

Energy Select Sector SPDR Fund                XLE US     10,866.7   14,911     1,126.6   Direxion Daily Small Cap Bull 3x Shares     TNA US      548.2      6,899     614.2

iShares S&P MidCap 400 Index Fund             IJH US     10,673.0    817        78.2     S&P 400 MidCap SPDR                         MDY US      501.6      2,867    11,821.0

SPDR Dow Jones Industrial Average ETF         DIA US     9,841.8     6,354      785.9    ProShares UltraShort S&P500                 SDS US      483.5     22,458    2,193.3

Vanguard Total Bond Market ETF                BND US     9,099.2     849        67.6     SPDR S&P Retail ETF                         XRT US      461.6      9,508     607.7

Vanguard REIT ETF                             VNQ US     8,479.4     1,349      78.1     Industrial Select Sector SPDR Fund          XLI US      437.2     11,826    3,847.9

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                           34
Top 20 ETFs in the United States (continued)

Ranked by largest change in AUM                                                                   Ranked by largest YTD net inflows
                                                                  AUM        AUM                                                                                         AUM        ADV
                                         Bloomberg   YTD NNA    (US$ Mn)   (US$ Mn)    Change                                                   Bloomberg   YTD NNA    (US$ Mn)   (US$ Mn)
ETF                                        ticker    (US$ Mn)    Feb-11     Dec-10    (US$ Mn)    ETF                                             ticker    (US$ Mn)    Feb-11     Feb-11

iShares MSCI Emerging Markets            EEM US      -9,210.8   36,420.6   47,551.5   -11,130.9   PowerShares QQQ Trust                         QQQQ US     1,969.0    25,435.2   3,027.7

SPDR S&P 500                             SPY US       114.5     94,779.0   89,915.3   4,863.7     Energy Select Sector SPDR Fund                 XLE US     1,263.6    10,866.7   1,126.6

PowerShares QQQ Trust                    QQQQ US     1,969.0    25,435.2   22,069.9   3,365.3     iShares MSCI Brazil Index Fund                 EWZ US     1,222.8    12,690.6    999.6

Energy Select Sector SPDR Fund           XLE US      1,263.6    10,866.7   8,396.4    2,470.3     iShares MSCI Japan Index Fund                  EWJ US     1,027.9    6,157.3     246.5

iShares S&P 500 Index Fund                IVV US      975.9     28,142.7   25,799.2   2,343.5     Market Vectors Agribusiness ETF                MOO US     1,026.6    3,777.3     115.5

iShares MSCI EAFE Index Fund             EFA US       428.0     39,125.4   36,923.1   2,202.3     iShares S&P 500 Index Fund                     IVV US      975.9     28,142.7    330.7

Vanguard MSCI Emerging Markets ETF       VWO US       263.3     42,825.5   44,569.8   -1,744.3    Technology Select Sector SPDR Fund             XLK US      825.5     6,992.2     217.5

iShares S&P MidCap 400 Index Fund         IJH US      731.8     10,673.0   9,332.0    1,341.0     iShares iBoxx $ High Yield Corporate           HYG US      751.4     8,283.6     113.1

iShares FTSE China 25 Index Fund          FXI US     -1,107.9   6,809.5    8,131.1    -1,321.6    iShares MSCI Canada Index Fund                 EWC US      747.0     5,723.6      86.6

iShares MSCI Japan Index Fund            EWJ US      1,027.9    6,157.3    4,883.3    1,273.9     SPDR Barclays Capital High Yield Bond ETF      JNK US      744.8     7,259.8     107.3

iShares Russell 2000 Index Fund          IWM US      -1,978.0   16,300.4   17,498.4   -1,198.0    iShares S&P MidCap 400 Index Fund              IJH US      731.8     10,673.0     78.2

Market Vectors Agribusiness ETF          MOO US      1,026.6    3,777.3    2,631.5    1,145.8     SPDR Dow Jones Industrial Average ETF          DIA US      661.7     9,841.8     785.9

Technology Select Sector SPDR Fund       XLK US       825.5     6,992.2    5,849.3    1,142.9     Vanguard Dividend Appreciation ETF             VIG US      636.5     5,462.2      39.6

SPDR Dow Jones Industrial Average ETF     DIA US      661.7     9,841.8    8,729.2    1,112.5     Vanguard S&P 500 ETF                           VOO US      632.1      909.9       11.4

iShares MSCI Canada Index Fund           EWC US       747.0     5,723.6    4,622.1    1,101.5     iShares MSCI Germany Index Fund                EWG US      591.2     2,606.1      89.4

iShares Russell 1000 Growth Index Fund   IWF US       410.6     13,677.6   12,580.0   1,097.6     iShares S&P 100 Index Fund                     OEF US      585.3     3,137.0      59.2

iShares Russell 1000 Value Index Fund    IWD US       406.7     11,675.9   10,697.1    978.8      Vanguard REIT ETF                              VNQ US      551.7     8,479.4      78.1

Vanguard REIT ETF                        VNQ US       551.7     8,479.4    7,503.7     975.7      SPDR S&P Oil & Gas Exploration & Production    XOP US      549.1     1,427.7     197.7

Market Vectors Gold Miners               GDX US      -588.5     6,764.7    7,680.8     -916.2     Market Vectors Indonesia ETF                   IDX US      501.8      406.5       8.1

iShares iBoxx $ High Yield Corporate     HYG US       751.4     8,283.6    7,376.7     906.9      Vanguard FTSE All-World Ex-US Index Fund       VEU US      468.0     7,356.4      39.5

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                    35
United States ETF turnover as % of United States equity turnover

ETF turnover (US$ Mn)                                                                                                                                                                                                                                                                     ETF turnover as % of US equity turnover
3,500,000                                                                                                                                                                                                                                                                                                                                                         45%



                                                                                                                                                                                                                                                                                                                                                                  40%
3,000,000

                                                                                                                                                                                                                                                                                                                                                                  35%

2,500,000
                                                                                                                                                                                                                                                                                                                                                                  30%


2,000,000
                                                                                                                                                                                                                                                                                                                                                                  25%



                                                                                                                                                                                                                                                                                                                                                                  20%
1,500,000


                                                                                                                                                                                                                                                                                                                                                                  15%
1,000,000

                                                                                                                                                                                                                                                                                                                                                                  10%

 500,000
                                                                                                                                                                                                                                                                                                                                                                  5%



        0                                                                                                                                                                                                                                                                                                                                                         0%
                                                                                                                                                   Apr-09




                                                                                                                                                                                                                                                                                                                                       Dec-10
                                                                                                                                                                              Jul-09



                                                                                                                                                                                                Sep-09
                                                                                                                                 Feb-09




                                                                                                                                                                                                         Oct-09




                                                                                                                                                                                                                                                                                                                     Oct-10




                                                                                                                                                                                                                                                                                                                                                         Feb-11
                                                                                                                        Jan-09




                                                                                                                                                                     Jun-09




                                                                                                                                                                                                                                    Jan-10




                                                                                                                                                                                                                                                                                                                                                Jan-11
                                                                                                                                                            May-09




                                                                                                                                                                                                                                                                                                            Sep-10
                                                                                                                                                                                                                                             Feb-10




                                                                                                                                                                                                                                                                                                                              Nov-10
                                                                                                                                          Mar-09
                                                                                                               Dec-08




                                                                                                                                                                                       Aug-09




                                                                                                                                                                                                                  Nov-09

                                                                                                                                                                                                                           Dec-09




                                                                                                                                                                                                                                                                                                   Aug-10
                                                                                             Oct-08

                                                                                                      Nov-08
                                       Apr-08




                                                                                                                                                                                                                                                               Apr-10
            Jan-08




                                                         Jun-08




                                                                                                                                                                                                                                                                                 Jun-10
                                                May-08




                                                                                                                                                                                                                                                                        May-10
                                                                                                                                                                                                                                                      Mar-10
                     Feb-08

                              Mar-08




                                                                           Aug-08

                                                                                    Sep-08
                                                                  Jul-08




                                                                                                                                                                                                                                                                                          Jul-10
                                                                                                               US ETF turnover (US$ Mn)                                                   ETF turnover as % of US equity turnover

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, NYSE Arca.



                                                                                                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                                                                                                                                36
Average expenses of ETFs versus open-end mutual funds in the United States

                                             Average TER(s)

                                                                                                      Average TER (bps)
                                               ETFs1
                                               Active                                                        57
                                               Broad market – equity                                         18
                                               Commodities                                                   57
                                               Currency                                                      48
                                               Custom                                                        44
                                               Emerging markets – equity                                     60
                                               Fixed income                                                  22
                                               Growth – equity                                               21
                                               International – equity                                        42
                                               Inverse                                                       95
                                               Large-cap – equity                                            13
                                               Leveraged                                                     95
                                               Leveraged inverse                                             95
                                               Mid-cap – equity                                              22
                                               Sector – equity                                               32
                                               Small-cap – equity                                            21
                                               Value – equity                                                21
                                               Total – equity ETFs                                           34
                                               Total – fixed income ETFs                                     25
                                               Total – all                                                   33

                                               Open-end mutual funds2
                                               Passive/indexed domestic equity                               93
                                               Passive/indexed international equity                          83
                                               Passive/indexed fixed income                                  40
                                               Actively managed domestic equity                             146
                                               Actively managed international equity                        160
                                               Actively managed fixed income                                105
1. As at end February 2010.
2. Captured from Morningstar on 15 March 2010.
Source: Morningstar, Global ETF Research and Implementation Strategy Team, BlackRock.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   37
Short interest: United States listed ETF and HOLDRS short interest

The rules on shorting ETFs on financial indices and the use of inverse and leveraged inverse ETFs on financial indices in the various markets are
continually being updated as regulators react to market conditions and the actions of other regulators – so the position is quite fluid.

                          Short interest          % of shares               S&P 500           On 26 February 2010, the SEC approved a new rule that places restrictions on short
 Date                      (Mn shares)            outstanding             Index Level         selling a security when it has experienced a price decline of at least 10% in a single
 2003 avg                      812                   27.1%                    983             day. If this level is reached, short selling is only allowed if the price of the security is
                                                                                              above the current national best bid.
 2004 avg                      952                   26.3%                   1,127
 2005 avg                      781                   17.2%                   1,206
                                                                                              Short interest in United States listed ETFs reached the highest ever during 2010.

 2006 avg                      837                   13.5%                   1,283                 • Based on data through to February 2011 the average number of ETF shares
                                                                                                     short during 2011 was 1,675 Mn shares, with an average of 1,703 Mn in 2010
 2007 avg                      1,242                 16.1%                   1,475
                                                                                                     and 1,653 Mn in 2009. The February 2011 short interest level for United
 2008 avg                      1,693                 17.0%                   1,209                   States-listed ETFs was 10.2% of shares outstanding or 1,786 Mn shares, up
 2009 avg                      1,653                 12.4%                    948                    8.7% from 1,644 Mn in December 2010.

 2010 avg                      1,703                 10.8%                   1,145            Investors are using ETFs for long/short and hedging strategies.

                                                                                                   • At end of February 2011, there were 919 ETFs listed in the United States and
 Jan-11                        1,564                  8.9%                   1,293                   2,557 ETFs worldwide, which provide exposure to equity sectors, styles,
 Feb-11                        1,786                 10.2%                   1,328                   countries and regional indices as well as fixed income, commodity indices
                                                                                                     and currencies.
 2011 avg                      1,675                  9.5%                   1,311
                                                                                              Security lending revenue on ETFs can be attractive.

                                                                                                   • For investors who own ETF shares, the lending revenue that can be earned
                                                                                                     on ETFs, may at times, and for some ETFs, more than cover the annual Total
                                                                                                     Expense Ratio (TER).

                                                                                              Short interest is often considered an indication of the level of scepticism in the market.

                                                                                                   • Short interest data is captured for United States listed securities on the 15th of
                                                                                                     each month or the next business day and reflects the number of shares that
                                                                                                     have yet to be repurchased to give back to lenders. The higher the short
                                                                                                     interest, the more investors are expecting a downturn. Short positions fall in
                                                                                                     value as stocks rise, and vice versa.

Note: With short sales, the investor faces the potential for unlimited losses as the security's price rises. Data as at mid February 2011.
Source: Regulatory Notice 09-31, Financial Industry Regulatory Authority, SEC, Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                         FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                       38
Short interest: top 20 United States listed ETFs and HOLDRS based on short interest

                                                                                                                   Shares           Short
                                                                                 Bloomberg     Short interest    outstanding    interest ratio
                          Name                                                     ticker      (000’shares)     (000’ shares)        (%)
                          SPDR S&P 500                                            SPY US          267,094         716,232          37.3%
                          iShares Russell 2000 Index Fund                         IWM US          206,709         198,350          104.2%
                          iShares MSCI Emerging Markets Index Fund                EEM US          164,756         800,100          20.6%
                          PowerShares QQQ Trust                                  QQQQ US          91,182          441,200          20.7%
                          Financial Select Sector SPDR Fund                           XLF US      88,346          472,295          18.7%
                          SPDR S&P Retail ETF                                     XRT US          71,833           12,350          581.6%
                          iShares Dow Jones U.S. Real Estate Index Fund               IYR US      60,518           55,400          109.2%
                          iShares FTSE/Xinhua China 25 Index Fund                     FXI US      45,140          162,750          27.7%
                          SPDR S&P Oil & Gas Exploration & Production ETF         XOP US          44,886           23,200          193.5%
                          SPDR KBW Regional Banking ETF                           KRE US          38,985           27,403          142.3%
                          iShares MSCI Japan Index Fund                           EWJ US          35,311          539,400           6.5%
                          Energy Select Sector SPDR Fund                              XLE US      31,350          139,424          22.5%
                          iShares MSCI EAFE Index Fund                                EFA US      28,010          641,400           4.4%
                          Industrial Select Sector SPDR Fund                          XLI US      23,138          104,476          22.1%
                          Technology Select Sector SPDR Fund                          XLK US      22,570          264,356           8.5%
                          Vanguard Emerging Markets                               VWO US          21,895          930,736           2.4%
                          Consumer Staples Select Sector SPDR Fund                    XLP US      20,470          102,022          20.1%
                          iShares Barclays 20+ Year Treasury Bond Fund                TLT US      20,375           29,000          70.3%
                          Health Care Select Sector SPDR Fund                         XLV US      19,906           80,365          24.8%
                          Consumer Discretionary Select Sector SPDR Fund              XLY US      18,489           53,953          34.3%




Note: Data as at mid February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                         FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   39
United States options on ETFs/ETPs

• In February 2011, there were 381 options on ETFs/ETPs in the United States, which means that 34% of United States listed ETFs/ETPs had options.
• Options on ETFs offer strategies for managing the risk or expanding the opportunities for profit. Because ETFs are traded like stocks, ETF options are very
  similar to stock options. Just as stock options settle in shares of stock, ETF options settle in ETFs.

# cleared contracts                                                                                                                                                # cleared transactions

180,000,000                                                                                                                                                                    6,000,000


160,000,000
                                                                                                                                                                               5,000,000
140,000,000


120,000,000                                                                                                                                                                    4,000,000


100,000,000
                                                                                                                                                                               3,000,000
 80,000,000


 60,000,000                                                                                                                                                                    2,000,000


 40,000,000
                                                                                                                                                                               1,000,000
 20,000,000


          0                                                                                                                                                                    0
                Oct-09   Nov-09   Dec-09   Jan-10   Feb-10   Mar-10   Apr-10   May-10      Jun-10   Jul-10   Aug-10   Sep-10   Oct-10   Nov-10   Dec-10   Jan-11    Feb-11


                                                                       Cleared contracts              Cleared transactions


Note: Data as at end February 2011.
Source: The Options Clearing Corporation (The OCC), Global ETF Research and Implementation Strategy Team, BlackRock.



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                    40
ETP providers in the United States: ranked by assets

                                                                           Feb-11                Feb-11                             YTD change
                                                              #     Assets       %         #      NNA    YTD NNA      #     %        Assets    %      % market
                   Provider                                 ETPs   (US$ Bn)     total   planned (US$ Bn) (US$ Bn)   ETPs   ETPs     (US$ Bn) assets    share
                   State Street Global Advisors               1      $54.8     44.6%      0      -$0.7    -$3.0      0     0.0%      -$3.7   -6.3%     -4.1%
                   iShares                                    4      $18.9     15.4%      2       $0.7    -$0.1      0     0.0%      $0.8     4.4%     0.3%
                   Deutsche Bank                             36      $14.5     11.8%      5       $0.9     $1.2      0     0.0%      $2.0    15.6%     1.4%
                   Barclays (iPath)                          51      $9.2      7.5%       22      $0.6     $1.1      1     2.0%      $0.7     8.3%     0.4%
                   Merrill Lynch                             17      $5.6      4.5%       0       $0.4     $0.4      0     0.0%      $0.8    17.8%     0.6%
                   United States Commodity Funds              9      $5.1      4.1%       4       $0.4     $0.3      0     0.0%      $0.1     2.1%     0.0%
                   ETF Securities                             7      $3.8      3.1%       24      $0.2     $0.2      1     16.7%     $0.3     7.5%     0.2%
                   JPMorgan Chase                             4      $2.6      2.1%       1       $0.2     $0.2      0     0.0%      $0.3    13.1%     0.2%
                   ProShares                                 14      $2.6      2.1%       38      $0.2     $0.5      2     16.7%     $0.5    25.9%     0.4%
                   Rydex SGI                                  9      $2.5      2.1%       13      $0.0     $0.0      0     0.0%      $0.1     2.7%     0.0%
                   Swedish Export Credit Corp                 7      $1.8      1.4%       0       $0.2     $0.3      0     0.0%      $0.4    31.6%     0.3%
                   GreenHaven Commodity Services              1      $0.7      0.6%       0       $0.1     $0.1      0     0.0%      $0.2    29.6%     0.1%
                   Credit Suisse                              4      $0.2      0.2%       0       $0.0     $0.0      0     0.0%      $0.0    10.1%     0.0%
                   Morgan Stanley                             4      $0.2      0.1%       0       $0.0     $0.1      0     0.0%      $0.1    41.5%     0.0%
                   Barclays Capital                           9      $0.1      0.1%       0       $0.0     $0.0      0     0.0%      $0.0    63.6%     0.0%
                   Teucrium Trading                           3      $0.1      0.1%       3       $0.0     $0.0      2     200.0%    $0.0    101.9%    0.0%
                   VelocityShares                             6      $0.1      0.1%       0       $0.0     $0.0      0     0.0%      $0.0    79.7%     0.0%
                   Goldman Sachs                              2      $0.1      0.1%       0       $0.0     $0.0      0     0.0%      $0.0     8.7%     0.0%
                   HSBC/Hang Seng                             1      $0.1      0.1%       0       $0.0     $0.0      0     0.0%      $0.0     7.7%     0.0%
                   FactorShares                               5      $0.0      0.0%       0       $0.0     $0.0      5     100.0%    $0.0    100.0%    0.0%
                   RBS                                        3      $0.0      0.0%       0       $0.0     $0.0      2     200.0%    $0.0    440.6%    0.0%
                   Citigroup                                  1      $0.0      0.0%       0       $0.0     $0.0      0     0.0%      $0.0    18.0%     0.0%
                   Jefferies Asset Management                 -        -            -     2        -        -        -       -         -       -         -
                   Sprott Asset Management                    -        -            -     1        -        -        -       -         -       -         -
                   WealthNotes Capital Management             -        -            -     1        -        -        -       -         -       -         -
                   Total                                     198    $122.9    100.0%     116      $3.3     $1.5      13    7.0%      $2.7     2.3%

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.              41
Top 25 ETF/ETP providers in the United States: ranked by assets

                                                                       Feb-11                                                   YTD change
                                                                                                Feb-11
                                                       # ETFs/ Assets         %         #        NNA    YTD NNA # ETFs/ % ETFs/ Assets     %     % market
               Provider                                 ETPs (US$ Bn)        total   planned   (US$ Bn) (US$ Bn) ETPs    ETPs (US$ Bn) assets     share
               iShares                                   220     $457.8     43.5%      14       $1.9      -$1.2      0   0.0%    $8.3    1.8%     -0.9%
               State Street Global Advisors               98     $243.6     23.2%      29       -$2.3      $0.4      5   5.4%    $8.3    3.5%     -0.1%
               Vanguard                                   64     $157.5     15.0%      1        $2.5       $6.7      1   1.6%    $9.2    6.2%     0.3%
               PowerShares/Deutsche Bank                 147      $60.3      5.7%      53       $0.6       $3.8      0   0.0%    $6.3    11.6%    0.4%
               ProShares                                 115      $25.2      2.4%     136       $1.0       $1.5      3   2.7%    $1.6    6.9%     0.1%
               Van Eck Associates Corp                    29      $21.1      2.0%      35       $1.0       $2.0      0   0.0%    $1.1    5.5%     0.0%
               Bank of New York                            1      $11.8      1.1%      0        -$0.6     -$1.1      0   0.0%    -$0.4   -3.2%    -0.1%
               WisdomTree Investments                     45      $10.2      1.0%      72       $0.1       $0.5      1   2.3%    $0.3    3.3%     0.0%
               Barclays (iPath)                           51       $9.2      0.9%      22       $0.6       $1.1      1   2.0%    $0.7    8.3%     0.0%
               Rydex SGI                                  34       $7.6      0.7%     108       -$0.4     -$0.2      1   3.0%    $0.1    1.8%     0.0%
               First Trust Advisors                       44       $6.7      0.6%      15       $0.5       $0.9      1   2.3%    $1.2    22.3%    0.1%
               Direxion Shares                            39       $6.5      0.6%     174       $0.0      -$0.2      0   0.0%    -$0.1   -1.8%    0.0%
               Merrill Lynch                              17       $5.6      0.5%      0        $0.4       $0.4      0   0.0%    $0.8    17.8%    0.1%
               United States Commodity Funds               9       $5.1      0.5%      4        $0.4       $0.3      0   0.0%    $0.1    2.1%     0.0%
               ETF Securities                              7       $3.8      0.4%      24       $0.2       $0.2      1   16.7%   $0.3    7.5%     0.0%
               Guggenheim Funds                           42       $3.6      0.3%      29       $0.1       $0.0      4   10.5%   $0.0    0.0%     0.0%
               Charles Schwab Investment Management       13       $3.5      0.3%      0        $0.4       $0.7      2   18.2%   $0.8    28.6%    0.1%
               JPMorgan Chase                              4       $2.6      0.2%      1        $0.2       $0.2      0   0.0%    $0.3    13.1%    0.0%
               PIMCO                                      13       $2.4      0.2%      8        $0.1       $0.3      0   0.0%    $0.3    12.1%    0.0%
               Swedish Export Credit Corp                  7       $1.8      0.2%      0        $0.2       $0.3      0   0.0%    $0.4    31.6%    0.0%
               Global X Funds                             22       $1.5      0.1%      29       $0.1       $0.2      5   29.4%   $0.2    13.0%    0.0%
               ALPS ETF Trust                              3       $0.9      0.1%      7        $0.1       $0.2      0   0.0%    $0.2    29.1%    0.0%
               GreenHaven Commodity Services               1       $0.7      0.1%      0        $0.1       $0.1      0   0.0%    $0.2    29.6%    0.0%
               RevenueShares                               6       $0.6      0.1%      8        $0.0       $0.0      0   0.0%    $0.1    10.6%    0.0%
               Emerging Global Advisors                    9       $0.5      0.0%      14       $0.0       $0.1      0   0.0%    $0.0    8.6%     0.0%

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).



                                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.     42
Top 25 brokers trading US listed ETFs/ETPs: ranked by advertised volume

                                                Feb-11                           Monthly change
                                          Broker    % broker         # broker   Broker    % broker
                            # broker   advertised advertised % total reported advertised advertised % total
                            reported     volume      market exchange trades    volume      market exchange                   Knight Securities 12.7%
Broker                        trades    (US$ Mn)      share  volume     (%)       (%)       share   volume                   Credit Suisse 12%
Knight Securities            124,350    $84,040.2     12.7%    6.9%    -5.8%    -10.2%      -9.9%    -7.4%
                                                                                                                             UBS 11.4%
Credit Suisse                 11,253    $79,700.3     12.0%    6.6%    -3.6%    -14.7%     -14.4%   -12.0%
                                                                                                                             Merrill Lynch 9.8%
UBS                           28,392    $75,614.1     11.4%    6.2%    -7.0%     1.0%       1.3%     4.2%
                                                                                                                             Citigroup Global Markets 7.2%
Merrill Lynch                 28,493    $64,638.5      9.8%    5.3%    -2.4%     -6.6%      -6.3%    -3.6%
                                                                                                                             Barclays Capital 6.5%
Citigroup Global Markets      10,504    $47,933.2      7.2%    3.9%    -4.6%     7.2%       7.5%     10.7%
                                                                                                                             Citadel Securities 4.7%
Barclays Capital              12,406    $42,981.3      6.5%    3.5%    2.5%     21.6%      22.0%     25.6%
Citadel Securities           119,489    $31,038.1      4.7%    2.6%   227.1%   208.7%     210.3%    218.8%                   JPMorgan Chase Bank 4.6%
JPMorgan Chase Bank           10,295    $30,530.0      4.6%    2.5%   -11.2%     -3.8%      -3.6%    -0.8%                   Morgan Stanley 4%
Morgan Stanley                16,837    $26,559.2      4.0%    2.2%    1.4%      6.0%       6.4%     9.0%                    Deutsche Bank Securities 4%
Deutsche Bank Securities       6,871    $26,479.6      4.0%    2.2%    -5.2%     -9.1%      -8.7%    -6.5%                   Goldman Sachs 3.8%
Goldman Sachs                 32,713    $25,166.7      3.8%    2.1%    -4.7%     1.5%       1.9%     5.1%                    Susquehanna Capital Group 3.6%
Susquehanna Capital Group 16,812        $23,543.4      3.6%    1.9%    -0.4%     -4.6%      -4.2%    -1.5%                   Fidelity Capital Markets 2.9%
Fidelity Capital Markets      16,365    $19,511.8      2.9%    1.6%    -8.4%     -9.9%      -9.6%    -7.0%                   BNP Paribas Securities 2%
BNP Paribas Securities         1,505    $13,112.2      2.0%    1.1%    -9.1%    -34.1%     -33.8%   -31.6%                   BTIG 0.9%
BTIG                            740      $6,091.3      0.9%    0.5%    7.2%     16.5%      16.4%     19.0%                   Royal Bank Of Canada 0.9%
Royal Bank Of Canada           5,068     $6,007.7      0.9%    0.5%    -6.1%    30.9%      31.5%     32.4%                   GFI Group 0.9%
GFI Group                     13,297     $5,784.5      0.9%    0.5%   -11.7%    13.7%      13.4%     20.0%                   Instinet 0.9%
Instinet                       1,933     $5,776.9      0.9%    0.5%    -5.6%     -0.3%      0.3%     2.2%                    Jefferies & Co 0.7%
Jefferies & Co                  944      $4,412.5      0.7%    0.4%   -11.7%    25.0%      25.7%     28.6%                   Bloomberg Tradebook 0.7%
Bloomberg Tradebook            1,442     $4,339.3      0.7%    0.4%    -8.3%     4.7%       5.7%     9.1%                    ConvergEx 0.5%
ConvergEx                      4,000     $3,059.4      0.5%    0.3%   17.0%      4.7%       5.0%     8.7%
                                                                                                                             State Street Bank & Trust Co 0.4%
State Street Bank & Trust Co 1,409       $2,917.2      0.4%    0.2%   -46.5%    -10.3%     -10.1%    -7.7%
                                                                                                                             HSBC Bank 0.3%
HSBC Bank                      1,543     $2,275.6      0.3%    0.2%    1.6%     -46.0%     -45.5%   -44.1%
                                                                                                                             JonesTrading 0.3%
JonesTrading                  11,978     $2,019.8      0.3%    0.2%   110.9%   125.9%     134.6%    142.9%
                                                                                                                             Newedge Group 0.2%
Newedge Group                    77      $1,587.5      0.2%    0.1%    1.3%      -7.1%      -7.8%    -7.1%
                                                                                                                             Others 4.1%
Others                        51,597    $27,222.8      4.1%    2.2%    4.8%      8.7%      11.7%     14.7%
Total                        530,313   $662,343.1 100.0%      54.4%   15.9%      -0.3%               2.9%

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.          43
ETFs and ETPs listed in Europe

At the end of February 2011, the European ETF industry had 1,116 ETFs with 3,884 listings and assets of US$299.1 Bn, from 40 providers on
23 exchanges. This compares to 901 ETFs with 2,490 listings and assets of US$220.1 Bn from 35 providers on 18 exchanges, at the end of
February 2010.
11 April 2011 will mark the 11th anniversary of ETFs in Europe.
Assets
    • YTD, assets have increased by 5.3% from US$284.0 Bn to US$299.1 Bn, which is less than the 7.3% increase in the MSCI Europe Index
      in US dollar terms. This compares to a 3.0% decrease in assets over the same period in 2010.
    • US$2.1 Bn of net new assets went into European listed ETFs/ETPs in February 2011. US$0.6 Bn net inflows went into equity
      ETFs/ETPs, of which US$0.9 Bn went into ETFs/ETPs tracking North American indices while ETFs/ETPs tracking emerging market
      indices saw net outflows of US$0.7 Bn. Fixed income ETFs/ETPs saw net outflows of US$0.4 Bn, of which government bond ETFs/ETPs
      saw net outflows of US$1.0 Bn while US$0.4 Bn went into money market ETFs/ETPs. US$1.7 Bn net inflows went into commodity
      ETFs/ETPs, of which US$0.7 Bn went into ETFs/ETPs providing broad commodity exposure and US$0.5 Bn went into ETFs/ETPs
      providing energy exposure.
    • US$6.1 Bn of net new assets went into European listed ETFs/ETPs in 2011 YTD. US$5.4 Bn net inflows went into equity ETFs/ETPs, of
      which US$2.5 Bn went into ETFs/ETPs tracking North American indices and US$2.0 Bn into ETFs/ETPs tracking European indices.
      Fixed income ETFs/ETPs saw net outflows of US$0.7 Bn, of which government bond ETFs/ETPs saw net outflows of US$1.7 Bn while
      US$0.6 Bn went into money market ETFs/ETPs. US$1.4 Bn net inflows went into commodity ETFs/ETPs, of which US$0.9 Bn went into
      ETFs/ETPs providing broad commodity exposure while ETFs/ETPs providing exposure to precious metals saw US$0.3 Bn net outflows.
    • YTD, US$5.4 Bn net new asset flows went into equity ETFs/ETPs, less than the US$6.7 Bn net inflows over the same period in 2010.
      Net new asset flows into ETFs/ETPs tracking North American indices were US$2.5 Bn YTD, greater than the net inflows of US$0.9 Bn
      over the same period in 2010. Net inflows into ETFs/ETPs tracking European indices were smaller at US$2.0 Bn YTD versus US$2.1 Bn
      net inflows over the same period in 2010. Fixed income ETF/ETP net outflows were US$0.7 Bn YTD compared to US$1.2 Bn net inflows
      over the same period in 2010, and the net new asset inflows into commodity ETFs/ETPs were US$1.4 Bn YTD, greater than the net
      inflows of US$0.8 Bn over the same period in 2010.


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, Federation of European Stock Exchanges (FESE).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   44
ETFs and ETPs listed in Europe (continued)

ETFs
    • YTD, the number of ETFs have increased by 4.1% with 44 new ETFs launched. This compares to an 8.7% increase over the same period
      in 2010 when 72 new ETFs launched.
    • The top 100 ETFs, out of 1,085, account for 63.3% of European ETF AUM, while 700 ETFs have less than US$100.0 Mn in assets,
      554 ETFs have less than US$50.0 Mn in assets and 172 ETFs have less than US$10.0 Mn in assets.
Trading volume
    • In February 2011, the ETF average daily trading volume in US dollars increased by 43.4% to US$4.5 Bn compared to December 2010.
      This compares to average daily trading volume of US$3.1 Bn in February 2010. Most ETF trades are not required to be reported in
      Europe as ETFs are not covered by the European Union directive on markets in financial instruments (MiFID).
    • In January 2011, reported European ETF turnover was 5.0% of all European equity turnover, which was less than the 5.1% in
      December 2010.
Exchanges
    • YTD, the number of exchanges with official listings has increased from 22 to 23.
ETF providers
    • iShares is the largest ETF provider in terms of both number of products and assets, 184 ETFs and US$107.6 Bn respectively, reflecting
      36.0% market share; Lyxor Asset Management is second with 156 products, assets of US$53.7 Bn, and 17.9% market share; followed
      by db x-trackers with 153 ETFs, assets of US$48.6 Bn, and 16.2% market share at the end of February 2011.
    • Of the US$1.3 Bn of net new assets in European listed ETFs in February 2011, iShares gathered the largest net inflows with US$1.0 Bn,
      followed by UBS Global Asset Management with US$0.5 Bn net inflows, while Lyxor Asset Management had the largest net outflows
      with US$1.0 Bn.
    • YTD, of the US$5.9 Bn net new assets into European listed ETFs, iShares gathered the largest net inflows with US$2.9 Bn net new
      assets, followed by Source Markets with US$1.2 Bn net inflows, while Lyxor Asset Management had the largest net outflows with
      US$1.2 Bn YTD.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, Federation of European Stock Exchanges (FESE).



                                                                       FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   45
ETFs and ETPs listed in Europe (continued)

ETF providers (continued)
     • The top three ETF providers, out of 40, account for 70.2% of European ETF AUM. This compares to 73.5% out of 35 providers, at the
       end of February 2010.
     • YTD, one new provider has entered the industry, launching their first ETF, while three firms plan to launch their first ETFs in Europe in
       the future.
Mutual funds
     • In Europe, net sales of mutual funds (excluding ETFs) were US$186.5 Bn, while net sales of ETFs domiciled in Europe were US$43.8 Bn
       during 2010 according to Lipper FMI.
ETPs
     • Additionally, there were 535 other ETPs¹ with 1,151 listings, and assets of US$32.5 Bn, from nine providers on eight exchanges. This
       compares to 185 ETPs with 452 listings and assets of US$15.6 Bn, from four providers, at the end of
       February 2010.
ETFs and ETPs
     • Combined, there were 1,651 products with 5,035 listings and assets of US$331.6 Bn, from 45 providers on 24 exchanges in Europe.
       This compares to 1,086 products with 2,942 listings and assets of US$235.7 Bn from 36 providers on 18 exchanges, at the end of
       February 2010.




1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including grantor
   trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                          46
European ETF and ETP asset growth


                    Assets US$ Bn                                                                                                                 # products

                    350                                                                                                                                1,200


                    300
                                                                                                                                                       1,000


                    250
                                                                                                                                                       800

                    200
                                                                                                                                                       600
                    150

                                                                                                                                                       400
                    100


                                                                                                                                                       200
                       50


                       0                                                                                                                               0

 Assets (US$ Bn)            2000        2001        2002        2003         2004     2005    2006     2007     2008     2009     2010     Feb-11
    ETF total               $0.7        $5.7        $10.7       $20.4        $34.0    $54.9   $89.7    $128.5   $142.7   $226.9   $284.0   $299.1
    ETF equity              $0.7        $5.7        $10.7       $19.4        $31.0    $49.3   $75.7    $103.5   $96.6    $159.8   $198.5   $210.9
    ETF fixed income                                             $1.0        $2.9     $5.2    $12.1    $21.0    $41.1    $51.6    $57.1    $57.7
    ETF commodity                                                                     $0.4    $2.0      $3.3     $4.9    $15.2    $26.4    $28.0
    ETP total                                                                         $1.1    $2.1      $4.9     $7.0    $15.7    $31.3    $32.5
    # ETFs                   6           71          118         104         114      165      273      423      636      827     1,072    1,116
    # ETPs                                                                             2       32       80       218      278      521      535


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.          47
ETF providers in Europe: ranked by AUM

                                                                     Feb-11                       Feb-11                             YTD change
                                               #       # total   AUM      %       ADV       #      NNA    YTD NNA   #      %         AUM       %      % market
        Provider                              ETFs    listings (US$ Bn) total   (US$ Bn) planned (US$ Bn) (US$ Bn) ETFs   ETFs     (US$ Bn) assets     share
        iShares                                184      804     $107.6    36.0%   $1.4      2      $1.0     $2.9    3     1.7%       $5.8    5.7%       0.1%
        Lyxor Asset Management                 156      638     $53.7     17.9%       $1.0   0    -$1.0    -$1.2    2     1.3%       $1.3    2.5%       -0.5%
        db x-trackers                          153      642     $48.6     16.2%       $0.7   11   -$0.4    $0.0     1     0.7%       $0.7    1.4%       -0.6%
        Credit Suisse Asset Management          58      294     $16.3      5.5%       $0.1   0    $0.3     $0.4     4     7.4%       $0.7    4.4%       0.0%
        Zurich Cantonal Bank                    7       12      $12.0      4.0%       $0.1   0    $0.0     $0.1     0     0.0%       $0.2    2.0%       -0.1%
        Commerzbank                             90      364      $9.0      3.0%       $0.1   0    $0.1     $0.2     0     0.0%       $0.4    5.2%       0.0%
        Amundi ETF                              94      267      $8.4      2.8%       $0.1   0    $0.3     $0.9     2     2.2%       $1.3   17.8%       0.3%
        UBS Global Asset Management             34      142      $8.0      2.7%       $0.1   0    $0.5     $0.7     5     17.2%      $1.4   21.3%       0.4%
        ETFlab Investment                       39      75       $6.7      2.2%       $0.0   5    -$0.8    -$0.5    4     11.4%     -$0.1   -1.7%       -0.2%
        Source Markets                          57      57       $6.4      2.1%       $0.6   15   $0.3     $1.2     1     1.8%       $1.4   28.5%       0.4%
        EasyETF                                 49      74       $6.0      2.0%       $0.0   0    $0.0     $0.2     0     0.0%       $0.5    8.8%       0.1%
        Swiss & Global Asset Management         16      32       $4.4      1.5%       $0.0   0    $0.1     $0.1     0     0.0%       $0.1    3.0%       0.0%
        XACT Fonder                             21      41       $3.3      1.1%       $0.2   1    $0.0     $0.0     0     0.0%       $0.1    2.7%       0.0%
        RBS                                     22      77       $1.7      0.6%       $0.0   0    $0.3     $0.3    12     120.0%     $0.4   26.4%       0.1%
        PowerShares                             19      66       $1.4      0.5%       $0.0   1    $0.0     $0.1     0     0.0%       $0.1   10.5%       0.0%
        State Street Global Advisors            13      50       $1.2      0.4%       $0.0   0    $0.1     $0.1     0     0.0%       $0.1   12.3%       0.0%
        BBVA Asset Management                   10      10       $1.2      0.4%       $0.0   0    $0.0     $0.0     2     25.0%      $0.0    2.7%       0.0%
        ETF Securities                          27      109      $0.9      0.3%       $0.0   3    $0.1     $0.1     1     3.8%       $0.1   18.9%       0.0%
        HSBC/Hang Seng                          17      53       $0.9      0.3%       $0.0   6    $0.1     $0.2     4     30.8%      $0.3   42.2%       0.1%
        Marshall Wace LLP                       3        4       $0.3      0.1%       $0.0   0    $0.0     $0.0     0     0.0%       $0.0    4.7%       0.0%
        Seligson & Co Fund Management           1        1       $0.3      0.1%       $0.0   0    $0.0     $0.0     0     0.0%       $0.0    0.8%       0.0%
        DnB NOR Asset Management                3        8       $0.3      0.1%       $0.0   0    $0.0     $0.0     0     0.0%       $0.0   -3.9%       0.0%
        Finans Portfoy Yonetimi                 7        7       $0.2      0.1%       $0.0   0    $0.0     $0.0     0     0.0%       $0.0   20.7%       0.0%
        JP Morgan Mansart Investments           6       12       $0.1      0.0%       $0.0   0    $0.0     $0.0     0     0.0%       $0.0    5.6%       0.0%

Note: Data as at end February 2011.                                                                                                                  continued…
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                         FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.            48
ETF providers in Europe: ranked by AUM (continued)

                                                                    Feb-11                         Feb-11                              YTD change
                                            #       # total     AUM       %        ADV       #      NNA    YTD NNA     #      %         AUM       %     % market
       Provider                            ETFs    listings   (US$ Bn)   total   (US$ Bn) planned (US$ Bn) (US$ Bn)   ETFs   ETFs     (US$ Bn) assets    share
       PIMCO Source                          3        3         $0.1     0.0%      $0.0      0      $0.0     $0.0      3     100.0%    $0.1    100.0%    0.0%
       Alpha Asset Management                1        1         $0.1     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0    14.8%     0.0%
       ThinkCapital                          5        5         $0.0     0.0%         $0.0   4      $0.0     $0.0      0     0.0%      $0.0    37.5%     0.0%
       Carnegie Fonder                       7        7         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0     3.3%     0.0%
       NCB Investment Services               1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0     6.3%     0.0%
       OTP Fund Management                   1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0     7.3%     0.0%
       Is Investment                         2        2         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0    -6.9%     0.0%
       NBG Asset Management                  2        2         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0     4.4%     0.0%
       Osmosis Investment Management         1        2         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0     0.3%     0.0%
       Troika Dialog Asset Management        1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0    12.5%     0.0%
       Garanti Bank                          1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0    -13.0%    0.0%
       Medvesek Pusnik AM                    1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0    -6.5%     0.0%
       Bizim Menkul Degerler                 1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0    -9.4%     0.0%
       ESAF                                  1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0     0.0%     0.0%
       Goldman Sachs Asset Management        1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0     0.0%     0.0%
       Kuveyt Turk Katilim Bankasi           1        1         $0.0     0.0%         $0.0   0      $0.0     $0.0      0     0.0%      $0.0     0.0%     0.0%
       Direxion Shares                       -        4          -         -          $0.0   0       -        -        -       -         -       -         -
       ProShares                             -        8          -         -          $0.0   0       -        -        -       -         -       -         -
       Van Eck Associates Corp               -        1          -         -          $0.0   0       -        -        -       -         -       -         -
       Vanguard                              -        1          -         -          $0.0   0       -        -        -       -         -       -         -
       Hinduja Bank (Switzerland)            -        -          -         -           -     1       -        -        -       -         -       -         -
       Ossiam                                -        -          -         -           -     5       -        -        -       -         -       -         -
       Qbasis Invest                         -        -          -         -           -     1       -        -        -       -         -       -         -
       Total                               1,116    3,884      $299.1   100.0%        $4.5   55     $1.3     $5.9      44    4.1%      $15.1    5.3%

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.              49
European ETF/ETP net new assets by type of exposure

                                                            Feb-11
                                  # ETFs        ADV         Assets              NNA            YTD-11 NNA            2010 NNA              2009 NNA
Exposure                           /ETPs    (US$ Mn)      (US$ Mn)           (US$ Mn)             (US$ Mn)            (US$ Mn)             (US$ Mn)
Equity                               827     3,890.0     211,782.7       624.0            5,362.5             31,499.0             32,622.8
  Europe                             479     2,515.8     120,470.0       149.2            1,984.8              7,831.0             18,140.7
      Broad                          300     1,817.7     104,381.9      (722.6)            (196.1)             7,538.9             14,753.7
      Consumer Goods/Services         41       132.8       1,700.4      (175.5)            (159.7)               162.7                335.4
      Energy                          13        45.1       1,554.8       253.3              378.6                 12.4                322.1
      Financials                      28       145.3       4,155.6       522.7            1,206.0                 (9.6)               825.5
      Healthcare                      12        31.7         982.7       (29.4)             (21.0)              (139.5)               145.9
      Industrials                     13       100.0         697.5        18.6               30.5                 28.4                136.6
      Information Technology          12        15.1         626.8       100.0              218.8                (33.1)                12.4
      Materials                       21       147.5       1,937.2       (74.0)             (31.5)               (91.5)               522.5
      Private Equity                   1         4.5         235.6        20.7               88.1                 64.4                 34.2
      Real Estate                     12        17.1       2,280.9       138.4              221.6                479.3                333.6
      Telecommunications              11        28.1         874.9        23.3               65.5               (192.1)               425.0
      Utilities                       11        29.8         982.4        73.8              183.8                 11.9                361.3
      Other                            4         1.1          59.4         -                  0.0                 (1.3)               (67.4)
  North America                       85       421.7      25,189.7       862.8            2,455.6              4,794.8              1,561.5
  Asia Pacific                        60       156.0      14,241.9       (38.1)             437.8              3,691.5              2,662.0
  Global                              78       192.2      14,348.7       304.6              448.6              2,873.9              2,798.3
                                                                                                                                              continued…




Note: NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.    50
European ETF/ETP net new assets by type of exposure (continued)

                                                            Feb-11
                                  # ETFs        ADV         Assets              NNA             YTD-11 NNA           2010 NNA             2009 NNA
Exposure                           /ETPs    (US$ Mn)      (US$ Mn)           (US$ Mn)             (US$ Mn)            (US$ Mn)            (US$ Mn)
  Emerging Markets                   125       604.4      37,532.3      (654.5)              35.8             12,307.9             7,460.3
     Broad - EM                        28      181.8      17,765.3      (947.9)            (838.0)             7,450.2             3,665.0
     Regional - EM                     21      104.9       4,090.3       150.4              182.1                965.9               778.8
     Country - EM                      76      317.8      15,676.7       143.0              691.6              3,891.8             3,016.6
      Brazil                           10       39.1       2,646.9       (44.2)             (76.5)               329.1               811.2
      Chile                             1        1.0          56.3         -                 19.4                 41.8                 -
      China                            12       37.4       3,189.0       (84.1)            (100.4)               427.1               862.9
      Egypt                          -           -             -           -                  -                   (9.0)               (5.2)
      Hungary                           1        0.0          17.5         0.1               (0.4)                (0.6)               (0.3)
      India                             8       41.9       2,902.3       100.4              105.9                690.6               616.3
      Indonesia                      -           0.8           -           -                  -                    -                   -
      Kuwait                            1        0.1          50.3         -                  -                   14.6                14.5
      Malaysia                          1        3.1         131.2       (31.6)             (10.6)                99.0                10.1
      Mexico                            2        1.2          58.2         6.4               10.8                 41.8                 -
      Poland                            2        0.4          90.2         -                  5.0                 77.5                 -
      Russia                            9       91.8       3,057.2       225.4              543.5                951.8               174.2
      South Africa                      6        7.5         360.4       (29.2)              15.8                 87.5                64.3
      South Korea                       5       24.9       1,217.2        10.5               69.9                488.9               152.3
      Taiwan                            5       21.6         822.8        (4.9)              81.5                252.5               137.7
      Thailand                       -           0.2           -           -                  -                    -                  (5.5)
      Turkey                           12       40.0         731.8       (10.4)             (38.0)               215.1               113.3
      UAE                            -           -             -           -                  -                  (13.2)                7.2
      Vietnam                           1        6.8         345.4         4.7               65.7                197.4                63.6
                                                                                                                                             continued…




Note: NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   51
European ETF/ETP net new assets by type of exposure (continued)

                                                            Feb-11
                                  # ETFs        ADV         Assets                NNA           YTD-11 NNA           2010 NNA              2009 NNA
Exposure                           /ETPs    (US$ Mn)      (US$ Mn)             (US$ Mn)            (US$ Mn)           (US$ Mn)             (US$ Mn)
Fixed Income                         213       435.9      57,663.9       (406.0)            (669.1)            8,275.9              9,453.3
   Broad                               2         2.0         609.3           -                42.1               460.5                102.3
   Corporate                          16        66.2      10,996.5          47.5             (45.0)            2,400.8              4,770.8
   Covered                             8         3.6       1,072.8          20.9              28.0               360.3                438.4
   Credit Spreads                     13        12.0         920.8           4.7               5.1               (25.3)              (291.1)
   Government                        138       186.7      29,969.6     (1,037.1)          (1,659.7)            5,734.8              6,193.2
   High Yield                          2        20.6         835.4        170.8              294.1               472.8                  -
   Inflation                          16        31.0       4,349.4          53.2              61.3              (122.4)             2,365.8
   Money Market                       17       110.2       7,251.3        362.7              633.6              (999.2)            (4,518.2)
   Mortgage                            1         3.7       1,658.8         (28.6)            (28.6)               (6.4)               392.1
Commodities                          504       514.2      59,599.6      1,705.6            1,361.0             9,403.0             13,657.9
   Broad                              78        55.1       9,655.6        666.7              944.2             1,707.0              2,985.9
   Agriculture                       115        55.3       5,209.2        289.0              224.6              (379.6)             1,294.3
   Energy                            101       113.9       4,859.5        492.5              441.1               510.0              1,834.2
   Industrial Metals                  76        23.8       2,392.7          27.6              78.1               330.5                343.5
   Livestock                          23         1.1         150.0           2.5              16.6                14.5                 29.4
   Precious Metals                   111       265.0      37,332.5        227.2             (343.6)            7,220.6              7,170.7
Currency                              90        10.2         559.3          17.0             (32.3)              344.7                190.7
Alternative                           16        13.5       1,868.0        163.7              118.2               707.7                898.6
Mixed                                  1         0.4         116.9           -                 3.7                35.4                 14.8
Total                              1,651     4,864.1     331,590.5       2,104.4           6,144.1            50,265.6             56,838.1




Note: NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   52
STOXX 600 Sector ETF net flows: week ending 25 February 2011

• The week ending 25 February saw US$201.3 Mn net outflows from STOXX                                               • YTD, STOXX Europe 600 sector ETFs have seen US$1,476.5 Mn
  Europe 600 sector ETFs.                                                                                             net inflows.
• The largest sector ETF net outflows last week were in basic resources with                                        • Banks has seen the largest net inflows with US$580.2 Mn, followed by oil
  US$95.7 Mn followed by financial services with US$74.5 Mn net outflows                                              and gas with US$338.5 Mn net inflows while chemicals experienced the
  while oil and gas experienced net inflows of US$117.0 Mn.                                                           largest net outflows with US$100.6 Mn.


                                                                                                       Futures
                                           STOXX 600               US$ total return performance                    ETF AUM (US$ Mn)
                                                                                                        open                             ETF
                                            #      %                                                   interest               YTD %    5-day ADV     Weekly ETF net flows     MTD ETF net flows      YTD ETF net flows
Sector                          Ticker   stocks   weight   Weekly       Rank        YTD       Rank     (US$ Mn)   25-Feb-11   change   (US$ Mn)             (US$ Mn)                (US$ Mn)                (US$ Mn)

Automobiles and parts           SXAR      14      2.3%     -2.6%         14        4.1%           11     389.4     394.6      1.6%        11.0     -25.7                    -49.6                   -11.9
Banks                           SX7R      52      15.3%    -2.9%         16        15.6%          2      971.6    2,078.1     60.7%       32.9     -33.2                    286.1                  580.2
Basic resources                 SXPR      31      5.6%     -1.8%         10        -1.0%          18     873.8    1,416.6     4.4%        36.3     -95.7                     20.3                   78.1
Chemicals                       SX4R      23      4.3%     -2.7%         15        1.5%           15     169.2     179.8      -34.9%      2.8      -10.7                    -76.6                 -100.6
Construction and materials      SXOR      27      2.6%     -1.8%          9        6.0%           10     126.9     315.9      17.4%       3.4       11.2                     16.8                   28.3
Financial services              SXFR      30      1.5%     -2.9%         17        6.2%           9      63.1      210.1      134.1%      1.0      -74.5                     -2.4                  117.5
Food and beverage               SX3R      28      6.9%     0.4%           1        -1.3%          19     293.1     352.0      -9.0%       2.7       27.5                    -46.8                   -29.8
Healthcare                      SXDR      34      9.2%     -0.9%          4        3.6%           13     516.1     852.4      0.4%        6.6      -35.1                    -35.3                   -28.4
Industrial goods and services   SXNR      93      9.6%     -1.6%          7        3.8%           12     452.2     575.3      2.9%        10.3       -4.9                    -7.9                    -2.6
Insurance                       SXIR      33      5.6%     -3.0%         18        17.6%          1      320.9     913.8      64.3%       11.2       -0.4                    81.0                  246.8
Media                           SXMR      28      2.3%     -1.4%          5        7.2%           7      156.4     148.6      -4.9%       0.9        -0.4                   -11.1                   -18.9
Oil and gas                     SXER      34      8.7%     0.2%           2        11.4%          3      828.6    1,431.5     47.0%       19.1     117.0                    227.3                  338.5
Personal and household goods    SXQR      28      5.4%     -1.4%          6        1.2%           16     232.6     343.3      4.7%        3.6        8.0                     28.3                   12.2
Real estate                     SX86R     21      1.1%     -0.1%          3        6.5%           8      35.6       65.5      6.5%        0.5        2.5                     -0.1                    0.0
Retail                          SXRR      25      3.6%     -1.8%          8        2.0%           14     125.4     188.9      -25.6%      1.3      -19.3                    -50.4                   -70.9
Technology                      SX8R      26      2.9%     -2.1%          12       10.9%          4      173.5     407.4      93.6%       3.2      -24.2                     57.6                  167.8
Telecommunications              SXKR      20      6.0%     -2.2%          13       7.9%           6      340.8     781.0      13.6%       4.2      -14.0                     -5.9                   38.1
Travel and leisure              SXTR      22      1.3%     -4.5%          19       0.8%           17     81.5      116.5      -18.5%      3.4        -5.6                   -27.8                   -27.7
Utilities                       SX6R      31      5.7%     -1.9%          11       8.3%           5      454.9     917.2      30.7%       5.2      -23.8                     54.5                  159.8

Total                                     600     100.0%   -1.6%                   6.8%                 6,605.7   11,688.6    22.5%      159.5     -201.3                   457.9                 1,476.5


Note: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses.
Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Index YTD returns reflect US dollar total return performance from
30 December 2010 to 25 February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                           FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                                 53
STOXX Europe 600 sector ETF net flows, history

Net flows (US$ Mn)                                                                                                                                                                                          Net flows (US$ Mn)

2,000                                                                                                                                                                                                                           2,000

1,800                                                                                                                                                                                                                           1,800

1,600                                                                                                                                                                                                                           1,600

1,400                                                                                                                                                                                                                           1,400

1,200                                                                                                                                                                                                                           1,200

1,000                                                                                                                                                                                                                           1,000

  800                                                                                                                                                                                                                           800

  600                                                                                                                                                                                                                           600

  400                                                                                                                                                                                                                           400

  200                                                                                                                                                                                                                           200

    0                                                                                                                                                                                                                           0

 -200                                                                                                                                                                                                                           -200

 -400                                                                                                                                                                                                                           -400

 -600                                                                                                                                                                                                                           -600

 -800                                                                                                                                                                                                                           -800

-1,000                                                                                                                                                                                                                          -1,000




                                                                                                                                                                                    31-Dec-10




                                                                                                                                                                                                                    25-Feb-11
                                                                                          18-Jun-10




                                                                                                                       13-Aug-10




                                                                                                                                                08-Oct-10
                                                                             21-May-10




                                                                                                           16-Jul-10




                                                                                                                                    10-Sep-10




                                                                                                                                                                                                28-Jan-11
                                 26-Feb-10




                                             26-Mar-10
         01-Jan-10




                     29-Jan-10




                                                                 23-Apr-10




                                                                                                                                                            05-Nov-10




                                                                                                                                                                        03-Dec-10
                                                         Weekly net flows (US$ Mn)                    YTD 2010 net flows (US$ Mn)               YTD 2011 net flows (US$ Mn)

Note: Data as at 25 February 2011
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                         FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                                                  54
European leveraged and inverse ETF/ETP net new assets by type of exposure

                                                            Feb-11
                                  # ETFs        ADV         Assets              NNA             YTD-11 NNA           2010 NNA             2009 NNA
Exposure                           /ETPs    (US$ Mn)      (US$ Mn)           (US$ Mn)             (US$ Mn)            (US$ Mn)            (US$ Mn)
Leveraged                             82       297.1       3,333.0        40.2             (518.0)               708.7             1,229.8
   Equity                             30       247.4       2,307.0       (92.3)            (617.2)               346.2               765.4
     Europe                           27       242.9       2,229.6       (93.6)            (627.4)               335.8               751.6
     North America                     3         4.5          77.4         1.3               10.1                 10.4                13.7
   Commodities                        37        49.4         966.8       131.6               98.3                305.7               464.5
   Currency                           14         0.2           3.8         0.8                1.0                  0.2
   Fixed Income                        1         0.1          55.4         -                  -                   56.6
Inverse                              121       128.0       4,340.6        42.1              116.4                892.9             2,763.1
   Equity                             37        98.2       2,226.3       (21.1)             (12.9)               (18.5)            1,713.6
     Asia Pacific                      1         1.0          24.2        (0.3)               3.6                 16.9                 8.6
     Europe                           33        89.8       1,995.5       (23.4)             (33.6)               (90.0)            1,537.4
     Emerging markets                  1         0.9          20.2        11.2               19.9                  -                 167.6
     North America                     2         6.6         186.3        (8.5)              (2.8)                54.6
   Commodities                        35        15.1         390.4        41.8               85.6                111.2              197.7
   Currency                           29         6.0         230.2         7.0               49.0                169.0               22.5
   Fixed Income                       19         8.7       1,485.2        14.4               (5.3)               650.0              801.4
   Alternative                         1         -             8.4         -                  -                  (18.8)              27.9
Leveraged Inverse                     41       178.6       1,899.3        41.2              271.2                706.3              958.1
   Equity                             22       170.1       1,508.8        36.4              265.3                375.7              958.1
     Europe                           21       169.5       1,498.6        33.1              261.9                364.4              958.1
     North America                     1         0.6          10.2         3.3                3.3                 11.2                -
   Fixed Income                        2         8.1         369.4         -                  -                  329.2
   Currency                           14         0.4           9.2         4.7                5.9                  1.5
   Commodities                         3         -            11.8         -                  -                    -                   -
Total                                 244      603.7       9,572.9       123.4             (130.4)             2,307.8             4,951.0




Note: NNA – Net New Assets. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   55
Types of ETF exposure in Europe: ranked by AUM

ETFs should be viewed as a tool for both active and passive managers.

                                                 Feb-11                            YTD change
                                     #        AUM        %        ADV        #        AUM        %
Type of exposure                    ETFs    (US$ Bn)    total   (US$ Bn)    ETFs    (US$ Bn)    AUM
Equity – Total                       736     $206.0    68.9%      $3.4       19      $12.6      6.5%
  Country exposure Europe            108     $46.6     15.6%      $0.7       2        $2.5      5.6%                      Fixed income 19.0%
  Emerging markets                   117     $37.4     12.5%      $0.6       4       -$1.7      -4.3%                     Country exposure Europe – equity 15.6%

  Regional Exposure Eurozone         40      $33.8     11.3%      $0.5       0        $2.1      6.5%                      Emerging markets – equity 12.5%
                                                                                                                          Regional Exposure Eurozone – equity 11.3%
  Country exposure United States     54      $20.7     6.9%       $0.3       3        $3.2     18.3%
                                                                                                                          Commodities 9.3%
  International                      75      $18.9     6.3%       $0.3       2        $1.0      5.3%
                                                                                                                          Country exposure United States – equity 6.9%
  Regional exposure Europe           56      $14.2     4.7%       $0.1       2        $1.2      8.9%
                                                                                                                          International – equity 6.3%
  European sector exposure           143     $12.5     4.2%       $0.7       0        $2.2     21.9%                      Regional exposure Europe – equity 4.7%
  Global exposure                    66      $12.4     4.1%       $0.1       2        $0.9      8.1%                      European sector exposure – equity 4.2%
  Style                              46       $6.6     2.2%       $0.1       3        $0.7     11.4%                      Global exposure – equity 4.1%
  Eurozone sector exposure           19       $2.6     0.9%       $0.0       0        $0.5     23.2%                      Style – equity 2.2%
                                                                                                                          Inverse 0.9%
  US sector exposure                 12       $0.2     0.1%       $0.0       0        $0.1     30.7%
                                                                                                                          Eurozone sector exposure – equity 0.9%
Fixed income                         197     $56.9     19.0%      $0.4       12       $0.5      0.9%
                                                                                                                          Alternative 0.7%
Commodities                          69      $27.8     9.3%       $0.2       2        $1.7      6.6%
                                                                                                                          Leveraged inverse 0.6%
Inverse                              50       $2.6     0.9%       $0.1       3        $0.1      4.3%                      Leveraged 0.5%
Alternative                          13       $2.1     0.7%       $0.0       2        $0.2     11.7%                      Currency 0.1%
Leveraged                            25       $1.6     0.5%       $0.2       5       -$0.2     -12.9%                     US sector exposure – equity 0.1%
Leveraged inverse                    18       $1.7     0.6%       $0.2       2        $0.2     14.2%                      Mixed (equity & fixed income) 0.0%

Currency                              4       $0.3     0.1%       $0.0       0        $0.0     -11.0%
Mixed (equity and fixed income)       4       $0.1     0.0%       $0.0       0        $0.0      5.2%
Total                               1,116    $299.1    100.0%     $4.5       44      $15.1      5.3%

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                           FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                 56
Index providers in Europe: ranked by AUM

                                            Feb-11                           YTD change
                              #         AUM        %        ADV        #         AUM       %
Index provider               ETFs     (US$ Bn)    total   (US$ Bn)    ETFs     (US$ Bn)   AUM
MSCI                          251       $71.0    23.7%       $0.9       7        $1.9     2.8%
STOXX                         221       $52.8    17.7%       $1.3       4        $4.4     9.0%                            MSCI 23.7%
Deutsche Boerse                48       $28.2     9.4%       $0.4       6        $1.7     6.4%                            STOXX 17.7%
FTSE                           89       $21.6     7.2%       $0.4       5        $1.1     5.3%                            Deutsche Boerse 9.4%
                                                                                                                          FTSE 7.2%
Markit                        105       $21.1     7.1%       $0.1       3        -$0.1    -0.3%
                                                                                                                          Markit 7.1%
S&P                            60       $15.4     5.1%       $0.3       5        $2.2     16.6%                           S&P 5.1%
EuroMTS                        29       $9.3      3.1%       $0.1       0        -$0.2    -1.6%                           EuroMTS 3.1%
SIX Swiss Exchange             17       $8.8      2.9%       $0.0       0        -$0.1    -1.6%                           SIX Swiss Exchange 2.9%
                                                                                                                          Barclays Capital 2.9%
Barclays Capital               19       $8.7      2.9%       $0.1       0        $0.6     7.8%
                                                                                                                          NYSE Euronext 2.7%
NYSE Euronext                  33       $8.0      2.7%       $0.2       0        $0.0     -0.4%
                                                                                                                          NASDAQ OMX 1.8%
NASDAQ OMX                     32       $5.3      1.8%       $0.2       0        $0.3     6.8%                            Dow Jones 1.8%
Dow Jones                      33       $5.2      1.8%       $0.1       3        $0.6     12.6%                           Hang Seng 0.6%
                                                                                                                          Topix 0.3%
Hang Seng                      6        $1.8      0.6%       $0.0       0        -$0.1    -6.8%
                                                                                                                          Nikkei 0.3%
Topix                          5        $0.9      0.3%       $0.0       1        $0.1     13.8%
                                                                                                                          Russell 0.2%
Nikkei                         3        $0.8      0.3%       $0.0       0        $0.2     30.2%                           Structured Solutions 0.1%
Russell                        4        $0.5      0.2%       $0.0       0        $0.1     33.8%                           S-Network 0.1%
Structured Solutions           2        $0.2      0.1%       $0.0       0        $0.0     18.1%                           Intellidex 0.0%
                                                                                                                          Other 13.1%
S-Network                      3        $0.2      0.1%       $0.0       0        $0.1     45.6%
Intellidex                     1        $0.0      0.0%       $0.0       0        $0.0     4.8%
Other                         155       $39.3    13.1%       $0.4       8        $2.1     5.7%
Total                        1,116     $299.1    100.0%      $4.5       44      $15.1     5.3%


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   57
Top 20 ETFs in Europe

Ranked by Assets Under Management (AUM)                                                           Ranked by US$ Average Daily Trading Volumes (ADV)
                                                                              ADV                                                                                                ADV
                                          Country      Bloomberg   AUM        (‘000      ADV                                                         Country Bloomberg   ADV     (‘000    AUM
ETF                                        listed        ticker  (US$ Mn)    shares)   (US$ Mn)    ETF                                                listed   ticker  (US$ Mn) shares) (US$ Mn)

iShares S&P 500                              UK         IUSA LN    9,388.3   7,905      186.9      iShares S&P 500                                     UK      IUSA LN   186.9   7,905   9,388.3

Lyxor ETF Euro STOXX 50                    France       MSE FP     8,463.1   2,623      109.7      Lyxor ETF Euro STOXX 50                           France    MSE FP    109.7   2,623   8,463.1

ZKB Gold ETF                             Switzerland   ZGLD SW     7,689.0     9        20.7       iShares DAX (DE)                                  Germany DAXEX GY    109.5   1,180   6,296.6

iShares MSCI Emerging Markets                UK         IEEM LN    6,488.8   1,484      65.0       STOXX 600 Optimised Industrial Goods & Services   Germany   XNPS GY   96.9    556     245.3

iShares DAX (DE)                          Germany      DAXEX GY    6,296.6   1,180      109.5      iShares FTSE 100                                    UK       ISF LN   84.2    8,663   6,049.2

iShares FTSE 100                             UK         ISF LN     6,049.2   8,663      84.2       db x-trackers DAX ETF                             Germany   XDAX GY   81.9    817     4,385.6

iShares EURO STOXX 50 (DE)                Germany      SX5EEX GY   5,591.2   1,741      73.9       iShares MSCI North America                          UK      INAA LN   81.6    607     1,914.6

db x-trackers MSCI Emerging Market TRN    Germany      XMEM GY     5,072.0   1,332      55.4       iShares FTSE Developed Markets Property             UK      IWDP LN   81.6    431     1,104.6

iShares Markit iBoxx Euro Corporate       Germany       IBCS GY    4,636.6    175       28.9       STOXX 600 Optimised Basic Resources Source        Germany   XPPS GY   77.2    146     231.3

iShares EURO STOXX 50                     Germany      EUN2 GY     4,388.9   1,803      75.1       iShares EURO STOXX 50                             Germany   EUN2 GY   75.1    1,803   4,388.9

db x-trackers DAX ETF                     Germany      XDAX GY     4,385.6    817       81.9       iShares EURO STOXX 50 (DE)                        Germany SX5EEX GY   73.9    1,741   5,591.2

Lyxor ETF CAC 40                           France       CAC FP     4,009.4    939       53.0       db x-trackers Euro Stoxx 50 ETF                   Germany   XESX GY   71.1    1,651   3,155.7

iShares MSCI World                           UK         IWRD LN    3,675.3   1,021      29.3       db x-trackers II EONIA Total Return Index         Germany   XEON GY   70.7    294     1,853.8

CS ETF (CH) on SMI                       Switzerland   CSSMI SW    3,595.6    148       10.5       Lyxor ETF Leverage CAC 40                         France    LVC FP    69.2    5,346   352.5

db x-trackers Euro Stoxx 50 ETF           Germany      XESX GY     3,155.7   1,651      71.1       iShares MSCI Emerging Markets                       UK      IEEM LN   65.0    1,484   6,488.8

db x-trackers MSCI World TRN ETF          Germany      XMWO GY     2,631.5    825       27.0       Lyxor ETF XBEAR CAC 40                            France    BX4 FP    56.1    1,150   391.3

ZKB Silver ETF (CHF)                     Switzerland    ZSIL SW    2,545.9     6        18.8       db x-trackers MSCI Emerging Market TRN            Germany XMEM GY     55.4    1,332   5,072.0

db x-trackers MSCI USA TRN ETF            Germany      XMUS GY     2,362.3    351       11.2       Lyxor ETF DAX                                     Germany LYXDAX GY   53.6    545     1,258.4

iShares MSCI Japan                           UK         IJPN LN    2,306.0   1,296      14.9       Lyxor ETF CAC 40                                  France    CAC FP    53.0    939     4,009.4

Lyxor ETF MSCI India                       France       INR FP     2,253.5   1,799      28.4       iShares MSCI Eastern Europe 10/40                   UK      IEER LN   52.8    258     534.6


Note: AUM reflects total fund AUM. ADV reflects total of all exchange listings, share classes and OTC volumes. NNA reflects the total fund NNA. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                             FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                         58
Top 20 ETFs in Europe (continued)

Ranked by largest change in AUM                                                                      Ranked by largest YTD net inflows
                                                                      AUM        AUM
                                             Bloomberg   YTD NNA    (US$ Mn)   (US$ Mn)    Change                                                Bloomberg    YTD NNA       AUM        ADV
ETF                                            ticker    (US$ Mn)    Feb-11     Dec-10    (US$ Mn)   ETF                                           ticker     (US$ Mn)    (US$ Mn)   (US$ Mn)

iShares S&P 500                              IUSA LN     1,119.0    9,388.3    7,905.8    1,482.5    iShares S&P 500                              IUSA LN     1,119.0     9,388.3     186.9

db x-trackers MSCI Emerging Market TRN       XMEM GY     -879.5     5,072.0    6,263.3    -1,191.2   db x-trackers DAX ETF                        XDAX GY      466.0      4,385.6      81.9

db x-trackers DAX ETF                        XDAX GY      466.0     4,385.6    3,693.1     692.6     iShares STOXX Europe 600 (DE)               SXXPIEX GY    306.7      1,877.0      11.7

iShares EURO STOXX 50 (DE)                  SX5EEX GY     239.5     5,591.2    5,030.7     560.4     MAN GLG Europe Plus Source ETF               MPFE GY      296.5       299.1       7.5

ETFlab EURO STOXX 50                        ETFSX5E GY   -584.7     1,698.6    2,120.3    -421.7     iShares Markit iBoxx Euro High Yield Bond    IHYG LN      288.7       781.1       17.3

Lyxor ETF Russia (DJ RusIndex Titans 10)      RUS FP      227.0     1,606.4    1,204.9     401.5     UBS-ETF MSCI USA                            USACHA SW     275.3      1,641.6      10.2

UBS-ETF MSCI USA                            USACHA SW     275.3     1,641.6    1,241.5     400.1     CS ETF (IE) on MSCI EMU                     CSEMU SW      270.9       915.3       6.9

iShares STOXX Europe 600 (DE)               SXXPIEX GY    306.7     1,877.0    1,493.9     383.1     Lyxor ETF Commodities CRB                    CRB FP       243.1      1,688.2      15.1

Lyxor ETF Commodities CRB                     CRB FP      243.1     1,688.2    1,305.3     383.0     iShares EURO STOXX 50 (DE)                  SX5EEX GY     239.5      5,591.2      73.9

iShares DAX (DE)                            DAXEX GY      101.1     6,296.6    5,917.7     379.0     Lyxor ETF Russia (DJ RusIndex Titans 10)     RUS FP       227.0      1,606.4      30.1

db x-trackers DJ STOXX 600                   XSX6 GY     -424.7     870.3      1,237.7    -367.4     iShares FTSE UK Dividend Plus                IUKD LN      220.0       901.5       14.5

CS ETF (IE) on MSCI EMU                     CSEMU SW      270.9     915.3      582.0       333.3     Lyxor ETF Euro Cash (EONIA)                  CSH FP       207.2      1,653.7      23.4

iShares MSCI Emerging Markets                IEEM LN      42.6      6,488.8    6,821.7    -332.9     STOXX 600 Optimised Banks Source ETF         X7PS GY      205.2       349.9       40.1

Lyxor ETF Leverage CAC 40                     LVC FP     -384.0     352.5      676.8      -324.3     iShares eb.rexx Money Market (DE)           EBMMEX GY     201.2      1,096.2      6.3

Lyxor ETF MSCI India                          INR FP      43.3      2,253.5    2,564.5    -311.1     RDX Source ETF                               RDXS LN      191.7       567.2       30.6

iShares Markit iBoxx Euro High Yield Bond    IHYG LN      288.7     781.1      477.0       304.1     STOXX 600 Optimised Oil & Gas Source ETF     XEPS GY      174.2       367.1       23.3

MAN GLG Europe Plus Source ETF               MPFE GY      296.5     299.1        0.0       299.1     iShares STOXX Europe 600 Banks (DE)         SX7PEX GY     167.0       442.1       9.0

iShares MSCI AC Far East ex-Japan             IFFF LN    -191.7     1,972.6    2,264.4    -291.7     iShares EURO STOXX 50 (Acc)                  IEUA LN      165.2       185.9       24.1

Lyxor ETF EuroMTS 1-3Y                        MTA FP     -329.8     1,306.2    1,597.9    -291.7     Lyxor ETF Stoxx Europe 600 Banks             BNK FP       159.8       642.0       17.5

iShares EURO STOXX 50                        EUN2 GY      -34.9     4,388.9    4,097.5     291.3     iShares BarCap Euro Government Bond 7-10     IBGM LN      156.9       579.0       3.1


Note: AUM reflects total fund AUM. ADV reflects total of all exchange listings, share classes and OTC volumes. NNA reflects the total fund NNA. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                   59
European ETF turnover as % of European equity turnover

ETF turnover (US$ Mn)                                                                                                                                                                                                 ETF turnover as % of European equity turnover

120,000                                                                                                                                                                                                                                                                                    7%



                                                                                                                                                                                                                                                                                           6%
100,000



                                                                                                                                                                                                                                                                                           5%
 80,000


                                                                                                                                                                                                                                                                                           4%

 60,000

                                                                                                                                                                                                                                                                                           3%


 40,000
                                                                                                                                                                                                                                                                                           2%



 20,000
                                                                                                                                                                                                                                                                                           1%



       0                                                                                                                                                                                                                                                                                   0%
                                                                                                       Jul-09

                                                                                                                Aug-09




                                                                                                                                  Oct-09

                                                                                                                                           Nov-09




                                                                                                                                                                                        Apr-10




                                                                                                                                                                                                                                              Oct-10
                                                                                                                                                                               Mar-10
                                                                                   May-09




                                                                                                                         Sep-09




                                                                                                                                                    Dec-09




                                                                                                                                                                      Feb-10




                                                                                                                                                                                                                                                       Nov-10

                                                                                                                                                                                                                                                                Dec-10




                                                                                                                                                                                                                                                                                  Feb-11
                                                                                              Jun-09




                                                                                                                                                             Jan-10




                                                                                                                                                                                                                                                                         Jan-11
                                                                                                                                                                                                                   Jul-10
                    Oct-08




                                                        Feb-09




                                                                          Apr-09




                                                                                                                                                                                                 May-10
           Sep-08




                             Nov-08

                                      Dec-08

                                               Jan-09




                                                                 Mar-09




                                                                                                                                                                                                          Jun-10




                                                                                                                                                                                                                            Aug-10

                                                                                                                                                                                                                                     Sep-10
                                                                                            ETF turnover (US$ Mn)                           ETF turnover as % of European equity turnover

Note: European equity turnover from main market and multilateral trading facilities includes electronic order book equity trading, off-electronic order book equity trading, reporting transactions and
dark pool equity trading. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, Federation of European Stock Exchanges (FESE).



                                                                                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                                                                               60
Average expenses of ETFs versus open-end mutual funds in Europe

                                             Average TER(s)
                                                                                                      Average TER (bps)
                                               ETFs1
                                               Alternative                                                   25
                                               Commodities                                                   44
                                               Country exposure Europe – equity                              30
                                               Country exposure United States – equity                       38
                                               Currency                                                      30
                                               Emerging markets – equity                                     69
                                               European sector exposure – equity                             35
                                               Eurozone sector exposure – equity                             42
                                               Fixed income                                                  17
                                               Global exposure – equity                                      49
                                               International – equity                                        56
                                               Inverse                                                       41
                                               Leveraged                                                     59
                                               Leveraged inverse                                             61
                                               Mixed                                                         72
                                               Regional exposure Europe – equity                             38
                                               Regional exposure Eurozone – equity                           23
                                               Style – equity                                                37
                                               United States sector exposure – equity                        52
                                               Total – equity ETFs                                           40
                                               Total – fixed income ETFS                                     17
                                               Total – all                                                   35

                                               Open-end mutual funds2
                                               Passive/indexed domestic equity                               91
                                               Passive/indexed international equity                          78
                                               Passive/indexed fixed income                                  49
                                               Actively managed domestic equity                             180
                                               Actively managed international equity                        176
                                               Actively managed fixed income                                100
1. As at end February 2010.
2. Captured from Morningstar on 15 March 2010.
Source: Morningstar, Global ETF Research and Implementation Strategy Team, BlackRock.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   61
ETP providers in Europe: ranked by assets

                                                                   Feb-11                                                       YTD change
                                                                                               Feb-11
                                                    #     # total Assets       %         #      NNA    YTD NNA      #     %      Assets    %      % market
                 Provider                         ETPs   listings (US$ Bn)    total   planned (US$ Bn) (US$ Bn)   ETPs   ETPs   (US$ Bn) assets    share
                 ETF Securities                   218      704      $21.4     66.0%     31      $0.5     $0.0      12    5.8%     $0.3    1.2%     -1.7%
                 Societe Generale                  42       44      $4.3      13.3%     0       $0.0     $0.0      0     0.0%     $0.3    6.8%     0.4%
                 UBS AG                           180      180      $3.6      11.1%     0       $0.0     $0.0      2     1.1%     $0.4   11.0%     0.7%
                 db ETC                            32       69      $1.4      4.3%      0       $0.2     $0.2      0     0.0%     $0.3   23.1%     0.7%
                 Source Markets                    28       70      $1.2      3.7%      0       $0.1     $0.0      0     0.0%     $0.0    0.3%     -0.1%
                 RBS                               18       33      $0.2      0.6%      0       $0.0     $0.0      0     0.0%     $0.0    2.3%     0.0%
                 Lyxor                              3       8       $0.2      0.6%      0       $0.0     $0.0      0     0.0%     $0.0    3.6%     0.0%
                 Barclays (iPath)                  13       32      $0.1      0.4%      0       $0.0     $0.0      0     0.0%     $0.0   28.5%     0.1%
                 Standard Commodities               1       6       $0.1      0.2%      0       $0.0     $0.0      0     0.0%     $0.0   -1.9%     0.0%
                 iShares                            -       1         -         -       0        -        -        -      -        -         -       -
                 State Street Global Advisors       -       1         -         -       0        -        -        -      -        -         -       -
                 Merrill Lynch                      -       3         -         -       0        -        -        -      -        -         -       -
                 Credit Suisse                      -       -         -         -       1        -        -        -      -        -         -       -
                 GAM Holding                        -       -         -         -       4        -        -        -      -        -         -       -
                 Total                            535     1,151     $32.5    100.0%     36      $0.8     $0.3      14    2.7%     $1.2    3.8%




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.      62
Top 25 ETF/ETP providers in Europe: ranked by assets

                                                                     Feb-11                                                        YTD change
                                                                                                 Feb-11
                                                   # ETFs/ # total Assets        %         #      NNA      YTD NNA # ETFs/ % ETFs/ Assets   %    % market
              Provider                              ETPs listings (US$ Bn)      total   planned (US$ Bn)   (US$ Bn) ETPs    ETPs (US$ Bn) assets  share
              iShares                                184      805     $107.6   32.5%      2       $1.0       $2.9     3     1.7%      $5.8      5.7%    0.2%
              Lyxor Asset Management                 156      638      $53.7   16.2%      0       -$1.0     -$1.2     2     1.3%      $1.3      2.5%    -0.4%
              db x-trackers/db ETC                   185      711      $50.0   15.1%      11      -$0.1      $0.2     1     0.5%      $0.9      1.9%    -0.5%
              ETF Securities                         245      813      $22.3    6.7%      34      $0.6       $0.1    13     5.6%      $0.4      1.8%    -0.2%
              Credit Suisse Asset Management          58      294      $16.3    4.9%      0       $0.3       $0.4     4     7.4%      $0.7      4.4%    0.0%
              Zurich Cantonal Bank                    7        12      $12.0    3.6%      0       $0.0       $0.1     0     0.0%      $0.2      2.0%    -0.1%
              Commerzbank                             90      364      $9.0     2.7%      0       $0.1       $0.2     0     0.0%      $0.4      5.2%    0.0%
              Amundi ETF                              94      267      $8.4     2.5%      0       $0.3       $0.9     2     2.2%      $1.3      17.8%   0.3%
              UBS Global Asset Management             34      142      $8.0     2.4%      0       $0.5       $0.7     5    17.2%      $1.4      21.3%   0.3%
              Source Markets                          85      127      $7.6     2.3%      15      $0.3       $1.2     1     1.2%      $1.4      23.0%   0.3%
              ETFlab Investment                       39       75      $6.7     2.0%      5       -$0.8     -$0.5     4    11.4%     -$0.1      -1.7%   -0.1%
              EasyETF                                 49       74      $6.0     1.8%      0       $0.0       $0.2     0     0.0%      $0.5      8.8%    0.1%
              Swiss & Global Asset Management         16       32      $4.4     1.3%      0       $0.1       $0.1     0     0.0%      $0.1      3.0%    0.0%
              Societe Generale                        42       44      $4.3     1.3%      0       $0.0       $0.0     0     0.0%      $0.3      6.8%    0.0%
              UBS AG                                 180      180      $3.6     1.1%      0       $0.0       $0.0     2     1.1%      $0.4      11.0%   0.1%
              XACT Fonder                             21       41      $3.3     1.0%      1       $0.0       $0.0     0     0.0%      $0.1      2.7%    0.0%
              RBS                                     40      110      $1.9     0.6%      0       $0.3       $0.3    12    42.9%      $0.4      23.6%   0.1%
              PowerShares                             19       66      $1.4     0.4%      1       $0.0       $0.1     0     0.0%      $0.1      10.5%   0.0%
              State Street Global Advisors            13       51      $1.2     0.4%      0       $0.1       $0.1     0     0.0%      $0.1      12.3%   0.0%
              BBVA Asset Management                   10       10      $1.2     0.3%      0       $0.0       $0.0     2    25.0%      $0.0      2.7%    0.0%
              HSBC/Hang Seng                          17       53      $0.9     0.3%      6       $0.1       $0.2     4    30.8%      $0.3      42.2%   0.1%
              Marshall Wace LLP                       3        4       $0.3     0.1%      0       $0.0       $0.0     0     0.0%      $0.0      4.7%    0.0%
              Seligson & Co Fund Management           1        1       $0.3     0.1%      0       $0.0       $0.0     0     0.0%      $0.0      0.8%    0.0%
              DnB NOR Asset Management                3        8       $0.3     0.1%      0       $0.0       $0.0     0     0.0%      $0.0      -3.9%   0.0%
              Lyxor                                   3        8       $0.2     0.1%      0       $0.0       $0.0     0     0.0%      $0.0      3.6%    0.0%
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.             63
Top 25 brokers trading European listed ETFs/ETPs: ranked by traded volume

                                                Feb-11                              Monthly change
                                                Broker      % broker     # broker       Broker     % broker
                                                                                                                              Deutsche Bank Securities 13.6%
                                  # broker    advertised   advertised    reported     advertised advertised
                                  reported      volume       market       trades       volume       market                    Goldman Sachs International 10.5%
Broker                             trades      (US$ Mn)      share          (%)           (%)        share                    Morgan Stanley 9.7%
Deutsche Bank Securities            5,251        $7,229      13.6%         4.7%         -22.3%      -16.8%                    Societe Generale 8.5%
Goldman Sachs International         2,068       $5,543       10.5%        -10.0%        25.6%      34.6%
                                                                                                                              CA Cheuvreux 6.9%
Morgan Stanley                      1,283       $5,154        9.7%        21.6%         30.1%      39.4%
                                                                                                                              Credit Suisse 6.8%
Societe Generale                    1,486       $4,481        8.5%         5.2%         13.8%      22.0%
                                                                                                                              Merrill Lynch 6.6%
CA Cheuvreux                        6,260       $3,638        6.9%        -6.7%         24.5%      33.4%
                                                                                                                              UniCredit 5.4%
Credit Suisse                        960        $3,603        6.8%        1.3%          9.7%       17.5%
Merrill Lynch                       4,194       $3,505        6.6%        -14.6%        -4.0%       2.9%                      JPMorgan Chase Bank 5.4%
UniCredit                           2,117       $2,884        5.4%        -12.8%        1.5%        8.8%                      Citigroup Global Markets 4.1%
JPMorgan Chase Bank                  952        $2,860        5.4%        29.2%         43.5%      53.8%                      Labranche Structured Products 3.5%
Citigroup Global Markets            1,733       $2,148        4.1%         2.3%         -7.3%      -0.7%                      Winterflood Securities 3.2%
Labranche Structured Products        725        $1,872        3.5%        -33.4%       -50.2%      -46.6%                     Nomura International 1.6%
Winterflood Securities              4,044       $1,701        3.2%        -3.3%         -4.9%       1.9%                      Knight Securities 1.5%
Nomura International                1,539        $852         1.6%        14.2%          5.9%      13.5%                      Peel Hunt 1.5%
Knight Securities                   1,229        $785         1.5%        50.6%         50.9%      61.7%
                                                                                                                              UBS 1.3%
Peel Hunt                           2,975        $776         1.5%        6.2%          18.2%      26.6%
                                                                                                                              HSBC Bank 1.2%
UBS                                  111         $674         1.3%        -5.1%         6.0%       13.5%
                                                                                                                              Barclays Capital 1.1%
HSBC Bank                           2,337        $622         1.2%        -1.6%        -25.1%      -19.8%
                                                                                                                              Macquarie Group 1.0%
Barclays Capital                     105         $582         1.1%        31.3%        245.4%      270.0%
Macquarie Group                      290         $539         1.0%        23.9%         41.1%      51.2%                      RBS 1.0%
RBS                                  712         $517         1.0%        -9.9%         21.0%      29.7%                      Exane 0.6%
Exane                                59          $344         0.6%        -39.8%        52.2%      63.1%                      Carnegie 0.5%
Carnegie                             237         $257         0.5%        -5.2%        -39.2%      -34.9%                     Newedge Group 0.5%
Newedge Group                         55         $248         0.5%        -1.8%        -14.2%      -8.0%                      Enskilda Securities 0.5%
Enskilda Securities                 1,099        $243         0.5%        -9.1%         1.1%       8.3%                       Svenska Handelsbanken London 0.3%
Svenska Handelsbanken London          60         $177         0.3%        -4.8%        -43.7%      -39.7%                     Others 3.4%
Others                              3,077       $1,785        3.4%        -9.6%        -73.4%      -71.5%
Total                              44,958       $53,020      100.0%       -2.5%         -6.7%

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.


                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.          64
ETFs and ETPs listed in Asia Pacific (ex-Japan)

At the end of February 2011, the Asia Pacific (ex-Japan) ETF industry had 217 ETFs with 324 listings and assets of US$54.0 Bn, from 62
providers on 13 exchanges. This compares to 138 ETFs with 226 listings and assets of US$38.4 Bn, from 49 providers on 13 exchanges, at the
end of February 2010.

27 August 2011 will mark the 10th anniversary of ETFs in Australia.

Assets

    • YTD, assets have increased by 1.4% from US$53.3 Bn to US$54.0 Bn, compared to the 3.3% fall in the MSCI AC Asia Pacific ex-Japan
      Index in US dollar terms. This compares to a decrease in assets of 1.4% over the same period in 2010.

ETFs

    • YTD, the number of ETFs increased by 8.5% with 17 new ETFs launched. This compares to a 6.2% increase over the same period in
      2010, when eight new ETFs launched.

Trading volume

    • In January 2011, the ETF average daily trading volume in US dollars increased by 15.9% to US$0.9 Bn, compared to December 2010.
      This compares to average daily trading volume of US$0.7 Bn in February 2010.

ETF providers

    • State Street Global Advisors is the largest ETF provider in terms of assets with US$12.3 Bn, in eight ETFs, reflecting 22.7% market
      share; iShares is second with 19 ETFs, assets of US$9.9 Bn, and 18.4% market share; followed by HSBC/Hang Seng with four ETFs,
      assets of US$6.9 Bn and 12.8% market share, at the end of February 2011.

    • YTD, three new providers have entered the industry launching their first ETF, while eight firms plan to launch their first ETFs in the future.




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.    65
ETFs and ETPs listed in Asia Pacific (ex-Japan) (continued)

Mutual funds

     • During 2010, according to Strategic Insight, net sales of mutual funds (excluding ETFs) were minus US$72.4 Bn in Asia Pacific
       (ex-Japan), while net sales of ETFs domiciled in Asia Pacific (ex-Japan) were positive US$8.7 Bn.

ETPs

     • Additionally, there were 23 other ETPs1 with 26 listings and assets of US$1.4 Bn from 15 providers on
       five exchanges. This compares to 12 ETPs with 15 listings and assets of US$0.9 Bn from eight providers on five exchanges at the end
       of February 2010.




1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including
   grantor trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                  66
Asia Pacific (ex-Japan) ETF and ETP asset growth

                       Assets (US$ Bn)                                                                                                           # products

                       60                                                                                                                              250




                       50
                                                                                                                                                       200



                       40

                                                                                                                                                       150


                       30


                                                                                                                                                       100

                       20



                                                                                                                                                       50
                       10




                        0                                                                                                                              0

 Assets (US$ Bn)              2001          2002         2003         2004            2005    2006    2007    2008    2009      2010     Feb-11
    ETF assets                $3.7          $3.8         $6.6          $8.6           $10.5   $18.1   $27.0   $23.8   $38.5     $53.3    $54.0
    ETP assets                                                                                        $0.1    $0.5    $0.8      $1.4      $1.4
    # ETFs                      4            11           20           27              32      49      68      96      132      200       217
    # ETPs                                                                                             4       6       12        23        23


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.         67
ETF providers in Asia Pacific (ex-Japan): ranked by AUM

                                                                                     Feb-11                                        YTD change
                                                            #    # total   AUM            %        ADV       #     #      %         AUM        %      % market
                 Provider                                  ETFs listings (US$ Bn)        total   (US$ Bn) planned ETFs   ETFs     (US$ Bn)    AUM      Share
                 State Street Global Advisors                8      10       $12.3      22.7%     $0.1      1      0     0.0%      -$0.5     -3.9%     -1.2%
                 iShares                                    19      43        $9.9      18.4%     $0.2      0      0     0.0%      -$0.1     -0.8%     -0.4%
                 HSBC/Hang Seng                              4       6        $6.9      12.8%     $0.0      0      0     0.0%       $0.2     2.2%       0.1%
                 China Asset Management                      2       2        $3.7       6.8%     $0.1      2      0     0.0%       $0.1     2.1%       0.0%
                 E Fund Management                           2       2        $3.3       6.1%     $0.1      1      0     0.0%       $0.2     5.8%       0.3%
                 Samsung Investment Trust Management        17      17        $3.0       5.5%     $0.1      0      0     0.0%       $0.1     3.7%       0.1%
                 Polaris                                    10      11        $2.6       4.8%     $0.0      1      2     25.0%      $0.1     5.4%       0.2%
                 Hua An Fund Management                      2       2        $1.1       2.1%     $0.0      3      1     100.0%     $0.2     26.7%      0.4%
                 BOCI-Prudential Asset Management            5       6        $1.1       2.0%     $0.0      0      2     66.7%      $0.1     9.7%       0.2%
                 db x-trackers                              22      65        $1.0       1.9%     $0.1      0      0     0.0%       $0.0     4.0%       0.0%
                 Woori Asset Management                     11      11        $0.9       1.6%     $0.0      6      1     10.0%     -$0.1     -8.0%     -0.2%
                 Lyxor Asset Management                      2      33        $0.7       1.3%     $0.0      1      0     0.0%      -$0.3     -25.7%    -0.5%
                 China Southern Fund Management              2       2        $0.7       1.2%     $0.0      0      0     0.0%       $0.0     1.9%       0.0%
                 Mirae Asset MAPS Global Investments        19      19        $0.6       1.2%     $0.0      0      3     18.8%      $0.1     26.3%      0.2%
                 Bank Of Communications                      1       1        $0.6       1.1%     $0.0      0      0     0.0%       $0.0     0.4%       0.0%
                 Huatai-PineBridge Fund Management           1       1        $0.4       0.7%     $0.0      1      0     0.0%       $0.0     8.0%       0.0%
                 KB Asset Management                         4       4        $0.4       0.7%     $0.0      0      0     0.0%       $0.0     1.0%       0.0%
                 Da Cheng International Asset Management     4       4        $0.4       0.7%     $0.0      0      1     33.3%      $0.3     444.3%     0.5%
                 Korea Investment Trust Management           6       6        $0.3       0.6%     $0.0      0      0     0.0%       $0.0     -11.2%    -0.1%
                 Benchmark Asset Management                  8       8        $0.3       0.5%     $0.0      6      0     0.0%       $0.0     -1.0%      0.0%
                 DBS Asset Management                        2       2        $0.3       0.5%     $0.0      0      0     0.0%       $0.0     0.1%       0.0%
                 Bosera Asset Management                     1       1        $0.3       0.5%     $0.0      1      0     0.0%       $0.0     -2.6%      0.0%
                 GTJA Allianz                                1       1        $0.3       0.5%     $0.0      0      1     100.0%     $0.3     100.0%     0.5%
                 Smartshares Limited                         5       5        $0.3       0.5%     $0.0      0      0     0.0%       $0.0     -1.9%      0.0%

                                                                                                                                                    continued…
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                         FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.           68
ETF providers in Asia Pacific (ex-Japan): ranked by AUM (continued)

                                                                                      Feb-11                                    YTD change
                                                               #    # total   AUM     %      ADV         #       #      %         AUM        %      % market
                 Provider                                     ETFs listings (US$ Bn) total (US$ Bn)   planned   ETFs   ETFs     (US$ Bn)    AUM      share
                 ICBC Credit Suisse Asset Management            2      2       $0.2     0.5%   $0.0     0        1     100.0%     $0.1     55.5%     0.2%
                 Vanguard                                       2      4       $0.2     0.4%   $0.0     0        0     0.0%       $0.0     -0.3%     0.0%
                 Fubon Asset Management                         4      4       $0.2     0.4%   $0.0     0        0     0.0%      -$0.1     -36.5%    -0.2%
                 i-VCAP Management                              1      1       $0.2     0.4%   $0.0     0        0     0.0%       $0.0     -3.3%     0.0%
                 AmInvestment Management                        2      2       $0.2     0.4%   $0.0     0        0     0.0%       $0.0     1.1%      0.0%
                 CIMB-Principal Asset Management                2      3       $0.2     0.3%   $0.0     1        0     0.0%       $0.0     -6.5%     0.0%
                 Fortune SGAM Fund Management                   1      1       $0.2     0.3%   $0.0     0        0     0.0%       $0.0     0.9%      0.0%
                 Russell Investments                            1      1       $0.1     0.3%   $0.0     1        0     0.0%       $0.0     33.7%     0.1%
                 AMP                                            1      1       $0.1     0.2%   $0.0     0        0     0.0%       $0.0     -11.1%    0.0%
                 HFT Investment Management                      1      1       $0.1     0.2%   $0.0     0        0     0.0%       $0.0     -3.8%     0.0%
                 Yurie Asset Management                         2      2       $0.1     0.2%   $0.0     0        0     0.0%       $0.0     -22.0%    0.0%
                 BetaShares Capital                             3      3       $0.1     0.2%   $0.0     3        1     50.0%      $0.0     15.5%     0.0%
                 Ping An                                        1      1       $0.1     0.2%   $0.0     0        0     0.0%       $0.0     1.3%      0.0%
                 Penghua Fund Management                        1      1       $0.1     0.2%   $0.0     3        0     0.0%       $0.0     -10.7%    0.0%
                 One Asset Management                           2      2       $0.1     0.1%   $0.0     0        0     0.0%       $0.0     -7.5%     0.0%
                 Motilal Oswal Asset Management                 2      2       $0.1     0.1%   $0.0     3        1     100.0%     $0.0     18.6%     0.0%
                 CCB Principal Asset Management                 1      1       $0.1     0.1%   $0.0     0        0     0.0%       $0.0     -1.2%     0.0%
                 Hanwha Investment Trust Management             1      1       $0.1     0.1%   $0.0     0        0     0.0%       $0.0     -2.7%     0.0%
                 UOB Asset Management                           1      1       $0.0     0.1%   $0.0     0        0     0.0%       $0.0     -43.7%    -0.1%
                 Sensible Asset Management                      1      1       $0.0     0.1%   $0.0     0        0     0.0%       $0.0     -19.0%    0.0%
                 China Merchants Fund Management                1      1       $0.0     0.1%   $0.0     0        1     100.0%     $0.0     100.0%    0.1%
                 Daishin Investment Trust Management            1      1       $0.0     0.1%   $0.0     0        0     0.0%       $0.0     11.2%     0.0%
                 KTB Asset Management                           2      2       $0.0     0.1%   $0.0     0        1     100.0%     $0.0     9.6%      0.0%
                 Prudential Asset Management                    2      2       $0.0     0.1%   $0.0     0        0     0.0%       $0.0     4.3%      0.0%

                                                                                                                                               continued…
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.            69
ETF providers in Asia Pacific (ex-Japan): ranked by AUM (continued)

                                                                                      Feb-11                                         YTD change
                                                              #    # total   AUM         %        ADV         #       #      %         AUM        %      % market
                Provider                                     ETFs listings (US$ Bn)     total   (US$ Bn)   planned   ETFs   ETFs     (US$ Bn)    AUM      share
                Kotak Mahindra Asset Management                3      3       $0.0      0.1%      $0.0       0        0     0.0%       $0.0     -3.1%     0.0%
                Midas Asset Management                         1      1       $0.0      0.1%      $0.0       0        1     100.0%     $0.0     100.0%    0.1%
                Tong Yang Investment Trust Management          1      1       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     1.2%      0.0%
                Australian Index Investments                   6      6       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     -4.1%     0.0%
                Daiwa Asset Management                         1      1       $0.0      0.0%      $0.0       1        0     0.0%       $0.0     3.2%      0.0%
                Krung Thai Asset Management                    1      1       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     -3.6%     0.0%
                TMB Asset Management                           1      1       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     0.2%      0.0%
                Indo Premier Securities                        1      1       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     -6.9%     0.0%
                Reliance Capital Asset Management              1      1       $0.0      0.0%      $0.0       4        0     0.0%       $0.0     -6.9%     0.0%
                China International Capital Corp               1      1       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     -91.2%    0.0%
                Hyundai Investments                            1      1       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     4.6%      0.0%
                PRUDENTIAL ICICI                               1      1       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     83.1%     0.0%
                Quantum Asset Management                       1      1       $0.0      0.0%      $0.0       0        0     0.0%       $0.0     0.9%      0.0%
                UTI Asset Management                           1      1       $0.0      0.0%      $0.0       1        0     0.0%       $0.0     5.8%      0.0%
                Allianz SE                                     -       -        -         -        -         1        -       -         -         -         -
                EasyETF                                        -       -        -         -        -         1        -       -         -         -         -
                Fullgoal Fund Management                       -       -        -         -        -         1        -       -         -         -         -
                Birla Sun Life Mutual Fund                     -       -        -         -        -         1        -       -         -         -         -
                Government Service Insurance Systems           -       -        -         -        -         1        -       -         -         -         -
                Guotai Asset Management                        -       -        -         -        -         2        -       -         -         -         -
                Religare India Asset Management                -       -        -         -        -         1        -       -         -         -         -
                Tata Mutual Fund                               -       -        -         -        -         1        -       -         -         -         -
                Other (Planned)                                -       -        -         -        -         5        -       -         -         -         -
                Total                                         217    324      $54.0    100.0%     $0.9       54       17    8.5%       $0.7     1.4%


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                 70
Top 20 ETFs in Asia Pacific (ex-Japan)

Ranked by Assets Under Management (AUM)                                                               Ranked by US$ Average Daily Trading Volumes (ADV)
                                                                                  ADV                                                                                                   ADV
                                             Country      Bloomberg     AUM       (‘000      ADV                                                   Country      Bloomberg     ADV       (‘000      AUM
ETF                                           listed        ticker    (US$ Mn)   shares)   (US$ Mn)   ETF                                           listed        ticker    (US$ Mn)   shares)   (US$ Mn)

iShares FTSE A50 China Index ETF*           Hong Kong      2823 HK    7,655.5    109,764    179.6     iShares FTSE A50 China Index ETF            Hong Kong      2823 HK     179.6     109,764   7,655.5

Tracker Fund of Hong Kong (TraHK)           Hong Kong      2800 HK    6,613.0    16,953      50.5     China AMC SSE 50                              China       510050 CH     95.5     314,261   3,039.8

Hang Seng Index ETF                         Hong Kong      2833 HK    3,838.8      35        1.0      E Fund SZSE 100                               China       159901 CH     90.5     715,215   2,991.0

China AMC SSE 50                              China       510050 CH   3,039.8    314,261     95.5     Samsung KODEX Leverage ETF                  South Korea   122630 KS     53.5      4,184     291.3

E Fund SZSE 100                               China       159901 CH   2,991.0    715,215     90.5     Tracker Fund of Hong Kong (TraHK)           Hong Kong      2800 HK      50.5     16,953    6,613.0

Hang Seng H-Share Index ETF                 Hong Kong      2828 HK    2,713.2     1,674      26.4     SHANGHAI SSE180 ETF                           China       510180 CH     43.4     429,316    855.9

ABF Pan Asia Bond Index Fund                Hong Kong      2821 HK    2,392.5      6         0.7      Samsung Kodex200 ETF                        South Korea   069500 KS     38.5      1,648    1,700.1

SPDR S&P/ASX 200 Fund                        Australia     STW AU     2,392.1     546        25.4     Polaris Taiwan Top 50 Tracker                 Taiwan       0050 TT      38.0     19,151    1,779.1

Polaris Taiwan Top 50 Tracker                 Taiwan       0050 TT    1,779.1    19,151      38.0     GTJA Allianz SSE Commodity Equity Index       China       510170 CH     31.8     65,329     268.8

Samsung Kodex200 ETF                        South Korea   069500 KS   1,700.1     1,648      38.5     db x-trackers CSI300 Index ETF              Hong Kong      3049 HK      28.8     26,654     522.6

World Index Shares ETFs - CSI 300 *         Hong Kong      2827 HK    1,002.3     1,248      5.9      Samsung KODEX Inverse ETF                   South Korea   114800 KS     28.3      4,012     131.0

SHANGHAI SSE180 ETF                           China       510180 CH    855.9     429,316     43.4     China SME ETF                                 China       159902 CH     26.6     56,393     616.5

iShares MSCI India ETF                       Singapore    INDIA SP     814.2      808        5.6      Hang Seng H-Share Index ETF                 Hong Kong      2828 HK      26.4      1,674    2,713.2

China SME ETF                                 China       159902 CH    616.5     56,393      26.6     SPDR S&P/ASX 200 Fund                        Australia     STW AU       25.4      546      2,392.1

Bank Of Communications Schroder SSE180        China       510010 CH    598.7      2,039      0.2      db x-trackers CSI300 Banks Index ETF        Hong Kong      3061 HK      14.7     12,050      39.5

SSE Component Stock Index ETF                 China       159903 CH    570.1     29,902      5.8      W.I.S.E. Polaris CSI 300 Investment Trust     Taiwan       0061 TT      8.8      14,328     482.2

db x-trackers CSI300 Index ETF               Singapore     XCSI SP     522.6      137        1.5      E Fund SSE Mid-cap ETF                        China       510130 CH     8.5      17,143     321.8

W.I.S.E. Polaris CSI 300 Investment Trust     Taiwan       0061 TT     482.2     14,328      8.8      World Index Shares ETFs - CSI 300 China     Hong Kong      2827 HK      5.9       1,248    1,002.3

Samsung KODEX Samsung Group ETF             South Korea   102780 KS    450.5      822        4.5      Mirae Asset MAPS TIGER 200 ETF              South Korea   102110 KS     5.9       254       222.5

Huatai-PineBridge Dividend ETF                China       510880 CH    396.6      7,624      2.6      SSE Component Stock Index ETF                 China       159903 CH     5.8      29,902     570.1

*  This is a synthetic ETF. The relevant annotation that the fund is a synthetic ETF is a Hong Kong regulatory requirement. As such, for funds that are not authorized in Hong Kong, they may not
   carry the same annotation even though they may invest substantially in financial derivatives instruments.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                 FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                             71
ETFs and ETPs listed in Japan

At the end of February 2011, the Japanese ETF industry had 81 ETFs with 84 listings and assets of US$32.4 Bn, from seven providers on three
exchanges. This compares to 70 ETFs with 73 listings and assets of US$24.1 Bn from six providers on two exchanges, at the end of February
2010. There are 178 ETFs which have filed notifications in Japan.
Assets
     • YTD, assets have increased by 0.7% from US$32.2 Bn to US$32.4 Bn, compared to the 5.6% increase in the MSCI Japan Index in
       US dollar terms. This compares to a 2.3% decrease in assets over the same period in 2010.
ETFs
     • YTD, the number of ETFs increased by 1.3% with one new ETF launched. This compares to a 2.9% increase over the same period in
       2010, when two new ETFs launched.
Trading volume
     • In February 2011, the ETF average daily trading volume in US dollars increased by 9.6% to US$0.2 Bn compared to December 2010.
       This compares to average daily trading volume of US$0.1 Bn in February 2010.
ETF providers
     • Nomura Asset Management is the largest ETF provider in terms of assets, with US$16.4 Bn in 32 ETFs, reflecting 50.4% market share;
       Nikko Asset Management is second with 17 ETFs, assets of US$7.2 Bn, and 22.2% market share; followed by Daiwa Asset Management
       with 22 ETFs, assets of US$6.3 Bn and 19.3% market share, at the end of February 2011.
Mutual funds
     • In Japan, net sales of mutual funds (excluding ETFs) were US$65.1 Bn, while net sales of ETFs domiciled in Japan were US$3.9 Bn
       during 2010 according to Strategic Insight.
ETPs
     • Additionally, there were nine other ETPs1 with 20 cross listings and assets of US$0.4 Bn from four providers on two exchanges.
       This compares to four ETPs with ten cross listings and assets of US$0.3 Bn from three providers on two exchanges, at the end of
       February 2010.

1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including
   grantor trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                  72
Japan ETF and ETP asset growth

                          Assets (US$ Bn)                                                                                                     # products
                          40                                                                                                                          90



                          35                                                                                                                          80


                                                                                                                                                      70
                          30

                                                                                                                                                      60
                          25

                                                                                                                                                      50
                          20
                                                                                                                                                      40

                          15
                                                                                                                                                      30

                          10
                                                                                                                                                      20


                           5                                                                                                                          10


                           0                                                                                                                          0

 Assets (US$ Bn)                 2001         2002         2003          2004         2005    2006    2007    2008      2009      2010     Feb-11
    ETF assets                   $6.6         $21.0        $27.6        $30.3         $31.8   $34.6   $34.2   $27.4     $24.6    $32.2     $32.4
    ETP assets                                                                                        $0.0    $0.3      $0.3      $0.4      $0.4
    # ETFs                        8            18           18            15           13      13      15      61        68        80       81
    # ETPs                                                                                             1       4         5         9         9

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.       73
ETF providers in Japan: ranked by AUM

                                                                                     Feb-11                                           YTD change
                                                         #        # total     AUM          %        ADV         #       #      %        AUM         %      % market
             Provider                                   ETFs     listings   (US$ Bn)      total   (US$ Bn)   planned   ETFs   ETFs    (US$ Bn)     AUM      share
             Nomura Asset Management                     32        32        $16.4       50.4%      $0.1       0        0     0.0%      -$0.1      -0.4%    -0.6%
             Nikko Asset Management                      17        17         $7.2       22.2%      $0.0       3        0     0.0%      $0.7       10.0%    1.9%
             Daiwa Asset Management                      22        22         $6.3       19.3%      $0.0       0        0     0.0%      -$0.6      -8.8%    -2.0%
             Mitsubishi UFJ Asset Management              6         6         $2.5        7.7%      $0.0       0        1     20.0%     $0.2       10.8%    0.7%
             iShares                                      1         1         $0.0        0.1%      $0.0       0        0     0.0%      $0.0       1.0%     0.0%
             Simplex Asset Management                     2         2         $0.0        0.1%      $0.0       0        0     0.0%      $0.0       1.4%     0.0%
             Kokusai Asset Management                     1         1         $0.0        0.1%      $0.0       0        0     0.0%      $0.0     152.3%     0.0%
             EasyETF                                      -         1          -              -     $0.0        -       -       -         -          -        -
             Samsung Investment Trust Management          -         1          -              -     $0.0        -       -       -         -          -        -
             State Street Global Advisors                 -         1          -              -     $0.0        -       -       -         -          -        -
             Total                                       81        84        $32.4       100.0%     $0.2       3        1     1.3%      $0.2       0.7%




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                 74
Top 20 ETFs in Japan

Ranked by Assets Under Management (AUM)                                                          Ranked by US$ Average Daily Trading Volumes (ADV)
                                                                               ADV                                                                                            ADV
                                                            Bloomberg AUM      (‘000    ADV                                                           Bloomberg     ADV       (‘000      AUM
ETF                                                           ticker (US$ Mn) shares) (US$ Mn)   ETF                                                    ticker    (US$ Mn)   shares)   (US$ Mn)

TOPIX ETF                                                    1306 JP   7,885.9    2,639   30.9   NIKKEI 225 ETF                                        1321 JP     50.1       387      6,881.9

NIKKEI 225 ETF                                               1321 JP   6,881.9     387    50.1   Listed Index Fund 225                                 1330 JP     39.6       303      3,608.2

Listed Index Fund 225                                        1330 JP   3,608.2     303    39.6   TOPIX ETF                                             1306 JP     30.9      2,639     7,885.9

Listed Index Fund TOPIX                                      1308 JP   3,196.4     377    4.3    Daiwa ETF NIKKEI 225                                  1320 JP     13.4       104      3,036.7

Daiwa ETF NIKKEI 225                                         1320 JP   3,036.7     104    13.4   Listed Index Fund TOPIX                               1308 JP      4.3       377      3,196.4

Daiwa ETF TOPIX                                              1305 JP   2,912.2     241    2.8    MAXIS S&P Mitsubishi Group ETF                        1670 JP      3.0      2,211     1,215.9

MAXIS S&P Mitsubishi Group ETF                               1670 JP   1,215.9    2,211   3.0    Daiwa ETF TOPIX                                       1305 JP      2.8       241      2,912.2

MAXIS NIKKEI225 ETF                                          1346 JP   690.6       21     2.7    MAXIS NIKKEI225 ETF                                   1346 JP      2.7        21       690.6

TOPIX Banks Exchange Traded Fund                             1615 JP   382.3      1,508   2.5    TOPIX Banks Exchange Traded Fund                      1615 JP      2.5      1,508      382.3

SSE 50 Index Linked ETF                                      1309 JP   330.8        6     1.5    SSE 50 Index Linked ETF                               1309 JP      1.5        6        330.8

MAXIS TOPIX ETF                                              1348 JP   313.2       68     0.8    Kokusai S&P500 VIX Short-Term Futures Index ETF       1552 JP      1.1        8        19.4

MAXIS TOPIX Core30 ETF                                       1344 JP   213.1       16     0.1    NEXT FUNDS Tokyo Stock Exchange REIT                  1343 JP      1.1        78       102.1

TOPIX Core 30 Exchange Traded Fund                           1311 JP   200.3       11     0.1    MAXIS TOPIX ETF                                       1348 JP      0.8        68       313.2

NEXT FUNDS Ibovespa Linked ETF                               1325 JP   146.9       163    0.6    NEXT FUNDS Ibovespa Linked ETF                        1325 JP      0.6       163       146.9

NEXT FUNDS Tokyo Stock Exchange REIT Index ETF               1343 JP   102.1       78     1.1    Listed Index Fund J-REIT                              1345 JP      0.5        35       63.5

Daiwa ETF TOPIX Core 30                                      1310 JP    93.2        1     0.0    Simplex JASDAQ TOP 20 Exchange Traded Fund            1551 JP      0.4        20       14.9
Listed Index Fund China A Share (Panda) CSI 300              1322 JP    88.5        7     0.3    NEXT FUNDS India S&P CNX Nifty Linked ETF             1678 JP      0.4       325       43.1
Nikkei 300 Stock Index Listed Fund                           1319 JP    86.4       19     0.0    iShares Nikkei 225                                    1329 JP      0.4        3        46.6

Listed Index Fund J-REIT                                     1345 JP    63.5       35     0.5    Listed Index Fund International Emerging Countries    1681 JP      0.3        24       53.5

Listed Index Fund International Emerging Countries Equity    1681 JP    53.5       24     0.3    Listed Index Fund China A Share (Panda) CSI 300       1322 JP      0.3        7        88.5


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                 FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                    75
ETFs and ETPs listed in Latin America

At the end of February 2011, the Latin American ETF industry had 26 ETFs, with 365 listings and assets of US$10.2 Bn, from four providers on
three exchanges. This compares to 20 ETFs, with 223 listings and assets of US$9.3 Bn from three providers on three exchanges, at the end of
February 2010.
There were 289 ETFs cross listed in Mexico, 313 ETFs registered for sale in Chile and 299 ETFs registered for sale in Peru, at the end of
February 2011.
Assets
     • YTD, assets have increased by 0.7% from US$10.1 Bn to US$10.2 Bn, compared to the 2.8% decrease in the MSCI EM Latin America
       Index in US dollar terms. This compares to a 5.1% decrease in assets over the same period in 2010.
ETFs
     • YTD, the number of listings have increased by 2.8%, with ten new ETFs cross listed in Latin America. This compares to a 19.9% increase
       over the same period in 2010, with 3 new primary listings and 34 new cross listings.
Trading volume
     • In February 2011, the ETF average daily trading volume in US dollars increased by 179.4% to US$0.4 Bn, compared to December 2010.
       This compares to average daily trading volume of US$0.4 Bn in February 2010.
ETF providers
     • iShares is the largest ETF provider in terms of assets with US$7.6 Bn, in 18 ETFs, reflecting 74.6% market share; BBVA Asset
       Management is second with US$1.4 Bn in five ETFs and 13.3% market share, at the end of February 2011.
ETPs
     • Additionally, there were 25 other ETPs1 cross listed on two exchanges in Latin America at the end of February 2011. This compares to
       seven other ETPs cross listed on one exchange, at the end of February 2010.

1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including grantor
   trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                          76
Latin America ETF asset growth

                        Assets (US$ Bn)                                                                                                         # products

                        12                                                                                                                             30




                        10                                                                                                                             25




                         8                                                                                                                             20




                         6                                                                                                                             15




                         4                                                                                                                             10




                         2                                                                                                                             5




                         0                                                                                                                             0

 Assets (US$ Bn)                2002          2003           2004           2005      2006     2007       2008       2009      2010      Feb-11
    ETF assets                  $0.1           $0.4          $0.4           $1.3      $2.7     $6.3       $5.5       $9.8      $10.1      10.2
    # ETFs                       1              1              2              2        2        6          10         17        26         26




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.        77
ETF providers in Latin America: ranked by AUM

                                                                                             Feb-11                                                   YTD change
                                                                  #       # total      AUM         %        ADV          #          #           %       AUM          %    % market
                           Provider                             ETFs     listings    (US$ Bn)     total   (US$ Mn)    planned      ETFs       ETFs    (US$ Bn)     AUM     share
                           iShares                               18         221        $7.6      74.6%     $287.5        1          0         0.0%      $0.5      7.3%      4.6%
                           BBVA Asset Management                  5         10         $1.4      13.3%      $18.2        0          0        100.0%     -$0.4    100.0%    -3.8%
                           Itau Unibanco                          1          1         $1.2      12.0%      $1.3         1          0         0.0%      -$0.1     -5.7%    -0.8%
                           Protego                                2          2         $0.0      0.1%       $0.1         0          0         0.0%      $0.0      10.4%     0.0%
                           Direxion Shares                        -          4           -          -       $16.4        -           -          -         -          -        -
                           EasyETF                                -         10           -          -       $0.1         -           -          -         -          -        -
                           Global X Funds                         -          2           -          -       $0.0         -           -          -         -          -        -
                           Lyxor Asset Management                 -          4           -          -       $0.0         -           -          -         -          -        -
                           PowerShares                            -          1           -          -       $33.1        -           -          -         -          -        -
                           ProShares                              -         18           -          -       $5.1         -           -          -         -          -        -
                           State Street Global Advisors           -         28           -          -       $28.2        -           -          -         -          -        -
                           Van Eck Associates Corp                -         16           -          -       $1.6         -           -          -         -          -        -
                           Vanguard                               -         39           -          -       $2.3         -           -          -         -          -        -
                           WisdomTree Investments                 -          9           -          -       $0.5         -           -          -         -          -        -
                           Total                                 26         365        $10.2    100.0%     $394.6        2          0         0.0%      $0.1       0.7%


Top 10 ETFs in Latin America
Ranked by Assets Under Management (AUM)                                                                   Ranked by US$ Average Daily Trading Volumes (ADV)1
                                                                             ADV                                                                                                          ADV
                                     Country      Bloomberg     AUM          (‘000          ADV                                                       Country    Bloomberg      ADV       (‘000      AUM
ETF                                   listed        ticker    (US$ Mn)      shares)       (US$ Mn)        ETF                                          listed      ticker     (US$ Mn)   shares)   (US$ Mn)
iShares NAFTRAC                       Mexico    NAFTRAC MM    6,047.5        52,910         161.3         iShares NAFTRAC                              Mexico   NAFTRAC MM      161.3    52,910    6,047.5
PIBB FUNDO INDICE BRASIL 50            Brazil     PIBB11 BZ   1,220.8          24            1.3          PowerShares QQQ Trust                        Mexico   QQQQ* MM        33.1      574      25,435.2
BRTRAC 10                             Mexico     BRTRAC MM     998.8         5,836           17.0         iShares MSCI Brazil Index Fund               Mexico    EWZ* MM        27.5      373      12,690.6
iShares IPC Large Cap Total Return    Mexico     ILCTRAC MM    509.6          913            2.5          iShares Ibovespa Fundo de Índice             Brazil   BOVA11 BZ       22.6      569       489.3
iShares Ibovespa Fundo de Índice       Brazil    BOVA11 BZ     489.3          569            22.6         iShares MSCI Japan Index Fund                Mexico    EWJ* MM        17.9      1,587    6,157.3
MEXTRAC                               Mexico    MEXTRAC MM     344.0          138            0.9          BRTRAC 10                                    Mexico   BRTRAC MM       17.0      5,836     998.8
iShares Mexico Corporate Bond         Mexico    CORPTRC MM     160.1           75            0.1          Direxion Daily Financial Bull 3x Shares      Mexico     FAS* MM       12.2      381      1,656.9
iShares LATixx Mexico UDITRAC         Mexico    UDITRAC MM     150.5           30            0.3          iShares MSCI Canada Index Fund               Mexico    EWC* MM        11.2      337      5,723.6
iShares IPC Mid Cap Total Return      Mexico    IMCTRAC MM      70.7           18            0.0          SPDR S&P 500                                 Mexico    SPY* MM        10.0       76      94,779.0
iShares LATixx Mexico CETETRAC        Mexico    CETETRC MM      52.5           21            0.2          SPDR Dow Jones Industrial Average ETF        Mexico     DIA* MM        7.9       65        6.0
1. For ETFs cross listed into Latin America from the US, AUM reflects total fund AUM (which is not counted in previous totals). ADV reflects US dollar volume of the specific exchange
   listing shown.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                                 78
ETFs and ETPs listed in Canada

At the end of February 2011, the Canadian ETF industry had 169 ETFs and assets of US$40.3 Bn, from four providers on one exchange.
This compares to 132 ETFs and assets of US$29.7 Bn from four providers on one exchange, at the end of February 2010.

9 March 2011 will mark the 21st anniversary of the first ETF globally, which listed in Canada in 1990.

Assets

    • YTD, assets have increased by 5.1%, from US$38.4 Bn to US$40.3 Bn, which is less than the 7.7% increase in the MSCI Canada Index
      in US dollar terms. This compares to a 4.3% increase in assets over the same period in 2010.

    • In February 2011, net inflows into Canadian domiciled ETFs totalled US$0.3 Bn. ETFs with exposure to North American indices saw
      US$0.2 Bn net inflows, of which exposure to local Canadian equity indices saw US$0.1 Bn net inflows, while ETFs/ETPs with fixed
      income exposure saw US$0.1 Bn net inflows.

ETFs

    • YTD, the number of ETFs have increased by 7.6% with 12 new ETFs launched. This compares to a 21.1% increase over the same period
      in 2010, when 23 new ETFs launched.

Trading volume

    • In February 2011, the ETF average daily trading volume in US dollars increased by 10.6% to US$1.1 Bn, compared to December 2010.
      This compares to average daily trading volume of US$0.9 Bn in February 2010.




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   79
ETFs and ETPs listed in Canada (continued)

ETF providers

     • iShares is the largest ETF provider in terms of assets with US$29.6 Bn in 38 ETFs, reflecting 73.3% market share; Claymore Investments
       is second with 29 ETFs and US$5.9 Bn, a 14.7% market share; followed by BetaPro Management with 62 ETFs, assets of US$3.0 Bn
       and 7.3% market share, at the end of February 2011.

     • Of the US$0.3 Bn net inflows into Canadian listed ETFs in February 2011, BMO Asset Management saw net inflows of US$0.2 Bn and
       Claymore Investments saw net inflows of US$0.1 Bn.

ETPs

     • Additionally, there were 24 other ETPs1 cross listed on one exchange in Canada at the end of February 2011. This compares to eight
       other ETPs cross listed on one exchange, at the end of February 2010.




1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including grantor
   trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                          80
Canada ETF asset growth

                      Assets (US$ Bn)                                                                                                           # products

                      45                                                                                                                              180


                      40                                                                                                                              160


                      35                                                                                                                              140


                      30                                                                                                                              120


                      25                                                                                                                              100


                      20                                                                                                                              80


                      15                                                                                                                              60


                      10                                                                                                                              40


                       5                                                                                                                              20


                       0                                                                                                                              0

 Assets (US$ Bn)            1999        2000       2001        2002       2003        2004   2005    2006    2007    2008    2009    2010    Feb-11
   ETF assets                $0.4       $4.0        $3.1       $3.4        $5.5       $7.4   $10.6   $13.0   $18.0   $15.7   $28.5   $38.4   $40.3

   # ETFs                     1           3          14         15         16          16     20      26      46      77     110     157      169


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.        81
ETF providers in Canada: ranked by AUM

                                                                    Feb-11                                                                             YTD change
                                                                                                       Feb-11      2011 YTD
                                              #           AUM         %          ADV         #          NNA          NNA            #       %           AUM           %         % market
Provider                                     ETFs       (US$ Bn)     total     (US$ Bn)   planned     (US$ Bn)     (US$ Bn)        ETFs    ETFs       (US$ Bn)      assets       share
iShares                                       38         $29.6      73.3%        $0.5        0           $0.0         -$0.4            0   0.0%         $1.2        4.3%         -0.5%
Claymore Investments                          29          $5.9      14.7%        $0.0        6           $0.1         $0.3             0   0.0%         $0.4        7.7%         0.4%
BetaPro Management                            62          $3.0       7.3%        $0.6        3           $0.0         -$0.1            2   3.3%        -$0.1        -2.6%        -0.6%
BMO Asset Management                          40          $1.9       4.7%        $0.0        0           $0.2         $0.3          10     33.3%        $0.4        24.5%        0.7%
Total                                         169        $40.3     100.0%        $1.1        9           $0.3         $0.0          12     7.6%         $1.9        5.1%


Top 10 ETFs in Canada

Ranked by Assets Under Management (AUM)                                                   Ranked by US$ Average Daily Trading Volumes (ADV)

                                                                    ADV                                                                                                ADV
                                            Bloomberg     AUM       (‘000       ADV                                                        Bloomberg       ADV         (‘000        AUM
ETF                                           ticker    (US$ Mn)   shares)    (US$ Mn)    ETF                                                ticker      (US$ Mn)     shares)     (US$ Mn)

iShares S&P/TSX 60 Index Fund                XIU CN     11,864.2    17,449      364.2     iShares S&P/TSX 60 Index Fund                      XIU CN       364.2        17,449     11,864.2

iShares DEX Short Term Bond Index Fund       XSB CN      2,007.3     317         9.4      Horizons BetaPro NYMEX Crude Oil Bull Plus        HOU CN        127.6        15,460      334.9

iShares S&P 500 Index Fund (CAD-Hedged)      XSP CN      1,593.0     637         9.9      Horizons BetaPro NYMEX Natural Gas Bull Plus      HNU CN        124.5        22,988      613.7

iShares DEX Universe Bond Index Fund         XBB CN      1,487.8     306         9.3      Horizons BetaPro NYMEX Natural Gas Bear Plus      HND CN         99.7        9,974        86.9

iShares S&P/TSX Capped Composite Index       XIC CN      1,367.4     263         6.0      Horizons BetaPro NYMEX Crude Oil Bear Plus        HOD CN         61.9        8,917       113.4

iShares DEX All Corporate Bond Index Fund    XCB CN      1,306.7     317         6.6      Horizons BetaPro S&P/TSX Global Gold Bull Plus    HGU CN         48.0        3,056       182.4

iShares S&P/TSX Global Gold Index Fund       XGD CN      1,288.6    1,007       25.4      iShares S&P/TSX Capped Energy Index Fund          XEG CN         34.1        1,478      1,128.5

iShares S&P/TSX Capped REIT Index Fund       XRE CN      1,206.4     298         4.4      Horizons BetaPro S&P/TSX 60 Bull Plus Fund        HXU CN         32.1        1,287        66.1

iShares S&P/TSX Capped Energy Index Fund     XEG CN      1,128.5    1,478       34.1      iShares S&P/TSX Global Gold Index Fund            XGD CN         25.4        1,007      1,288.6

iShares MSCI EAFE Index Fund (CAD-Hedged)    XIN CN      1,118.1     209         4.1      Horizons BetaPro S&P/TSX Global Gold Bear Plus    HGD CN         18.1        1,770        57.6


Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                          82
Middle East and Africa ETF and ETP asset growth

                           Assets (US$ Bn)                                                                                                      # products

                           20                                                                                                                         350


                           18
                                                                                                                                                      300
                           16


                           14                                                                                                                         250


                           12
                                                                                                                                                      200

                           10

                                                                                                                                                      150
                             8


                             6                                                                                                                        100

                             4
                                                                                                                                                      50
                             2


                             0                                                                                                                        0

  Assets (US$ Bn)                 2000        2001         2002        2003        2004        2005    2006   2007   2008   2009    2010    Feb-11
    ETF assets                                 $0.3        $0.6        $0.8        $1.2         $1.6   $1.2   $2.2   $1.2   $1.8    $2.3     $2.3
    ETP assets                    $0.0         $0.1        $0.1        $0.2        $0.5         $0.4   $4.5   $9.1   $8.1   $14.8   $17.3    $18.0
    # ETFs                                      1           3            4           5           7      8      11     17     23      29       29
    # ETPs                          1           1           1            3          18           41     94    211    246    297      327     327



Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, Bank of Israel.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.      83
ETF providers in Middle East and Africa: ranked by AUM

                                                                                           Feb-11                                                       YTD change
                                                                  #         AUM              %              ADV             #            #        %        AUM              %        % market
                           Provider                              ETFs     (US$ Bn)          total         (US$ Mn)       planned        ETFs     ETFs    (US$ Bn)          AUM        share
                           Satrix Managers                         7        $1.5           67.2%            $7.5           1              0      0.0%      -$0.1       -5.8%          -2.5%
                           db x-trackers                           5        $0.2           10.1%            $0.3           0              0      0.0%      $0.0        19.0%           1.8%
                           Bips Investment Managers                2        $0.2            7.2%            $1.5           0              0      0.0%      $0.0        -4.3%          -0.1%
                           Absa Capital                            7        $0.1            6.5%            $0.1           0              0      0.0%      $0.0        -22.9%         -1.7%
                           STANLIB                                 2        $0.1            4.4%            $3.6           0              0      0.0%      $0.1        141.8%          2.6%
                           Fortress Asset Managers                 1        $0.0            1.9%            $0.0           0              0      0.0%      $0.0        -11.7%         -0.2%
                           Investec Fund Management                1        $0.0            1.4%            $0.6           0              0      0.0%      $0.0        -6.3%          -0.1%
                           Falcom Financial Services               2        $0.0            0.9%            $0.1           0              0      0.0%      $0.0        15.2%           0.1%
                           Nedbank Capital                         1        $0.0            0.2%            $0.0           1              0      0.0%      $0.0        -6.5%           0.0%
                           National Bank of Abu Dhabi              1        $0.0            0.2%            $0.0           2              0      0.0%      $0.0        -9.1%           0.0%
                           Al Mal Capital                          -            -             -              -             1              -       -          -              -            -
                           Gaon Investment House                   -            -             -              -             2              -       -          -              -            -
                           HSBC/Hang Seng                          -            -             -              -             1              -       -          -              -            -
                           Other (Planned)                         -            -             -              -             13             -       -          -              -            -
                           Total                                  29        $2.3           100.0%          $13.7           21             0      0.0%      -$0.1       -2.4%


Top 10 ETFs in Middle East and Africa
Ranked by Assets Under Management (AUM)                                                                            Ranked by US$ Average Daily Trading Volumes (ADV)
                                                                                 ADV                                                                                                                    ADV
                                                Country      Bloomberg   AUM     (‘000              ADV                                                          Country        Bloomberg       ADV     (‘000    AUM
ETF                                              listed        ticker  (US$ Mn) shares)           (US$ Mn)         ETF                                            listed          ticker      (US$ Mn) shares) (US$ Mn)
SATRIX40                                      South Africa   STX40 SJ    950.0      1,076           4.4            SATRIX40                                  South Africa        STX40 SJ       4.4    1,076    950.0
Satrix Dividend Plus                          South Africa STXDIV SJ     145.7      2,243           0.5            STANLIB Top 40 Fund                       South Africa       STAN40 SJ       3.0     716      95.2
SATRIX Financials                             South Africa   STXFIN SJ   113.5       120            0.1            SATRIX RESI                               South Africa       STXRES SJ       1.5     174      61.9
STANLIB Top 40 Fund                           South Africa STAN40 SJ     95.2        716            3.0            Bips Top 40                               South Africa        BIPS40 SJ      1.4     330      71.7
NewRand ETF                                   South Africa    NRD SJ     90.7         4             0.0            Zshares GOVI                              South Africa        ZGOVI SJ       0.6     404      32.4
Bips Government Inflation Linked Bond Fund    South Africa   BIPINF SJ   90.3        49             0.1            SATRIX Industrials                        South Africa        STXIND SJ      0.6     159      88.1
SATRIX Industrials                            South Africa STXIND SJ     88.1        159            0.6            STANLIB SWIX 40 Fund                      South Africa       STANSX SJ       0.6     638      5.2
SATRIX RAFI 40 Total Return                   South Africa STXRAF SJ     84.7        256            0.3            Satrix Dividend Plus                      South Africa        STXDIV SJ      0.5    2,243    145.7
db x-trackers MSCI World                      South Africa DBXWD SJ      77.2        56             0.1            SATRIX RAFI 40 Total Return               South Africa       STXRAF SJ       0.3     256      84.7
SATRIX SWIX TOP 40                            South Africa STXSWX SJ     75.7        145            0.1            SATRIX Financials                         South Africa        STXFIN SJ      0.1     120     113.5

Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                    FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                                       84
Exchange Traded Funds (ETFs): product overview

• Most ETFs in Europe are UCITS funds which are the same as                                       • ETFs will generally price around their NAV due to the creation/
  traditional mutual funds in Europe.                                                               redemption process.
• In the United States, most ETFs are registered investment                                       • Benefits:
  companies regulated under the Investment Company Act of 1940                                      – ETFs are not a derivative.
  (the “1940 Act”), the same as traditional mutual funds.
                                                                                                    – Flexible.
• ETFs in the United States require special exemptions from the
  Securities and Exchange Commission since they buy and sell                                        – Transparent.
  shares at Net Asset Value (“NAV”) at the end of each day to a                                     – Liquid.
  limited group of institutional investors.
                                                                                                    – Small minimum investment.
• As a result, other shareholders in the United States who wish to buy
                                                                                                    – Ability to trade with multiple counterparties.
  or sell shares must trade in the secondary market, rather than
  directly with the fund unlike mutual funds.                                                     • ETFs are generally liquid:
• ETFs are open-ended index tracking funds1.                                                        – Liquidity reflects liquidity of underlying basket of shares not the
                                                                                                      trading volume of the ETF – as long as trading with a broker which
• ETFs are managed by asset managers.
                                                                                                      is an authorised participant.
• ETFs are bought and sold through brokers.
                                                                                                    – Creation/redemption process makes ETFs as liquid as their
• Trade on the exchange like any other stock.                                                         underlying shares.
• Settle like any other share on the exchange.                                                      – Unique structure for brokers who enter into legal agreements with
• Can be purchased, cleared and held in brokerage or                                                  the ETF asset managers to be authorised participants, creation/
  custodial account.                                                                                  redemption agents or liquidity providers:
• Can go long or short.                                                                               • Portfolio of securities can be exchanged for ‘Creation Units’.
• Are lendable and marginable.                                                                        • ‘Creation Units’ can be redeemed for underlying portfolio.
• Transparent underlying portfolios generally available daily.                                        • Creation/redemption (‘in kind’) feature allows for arbitrage and
                                                                                                        results in the fund trading near NAV.
• Real time indicative NAV.

1. Note a few active funds which disclose their portfolios daily have been approved and listed.



                                                                             FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                 85
Exchange Traded Products (ETPs): product overview

• ETPs are products that have similarities to ETFs in the way they    • ETPs may not provide transparency on the underlying portfolio.
  trade and settle but they do not use a mutual fund structure.
                                                                      • ETPs may not have a real time indicative NAV.
• The use of other structures by ETPs can create different tax and
                                                                      • ETPs may expose the investor with up to 100% counterparty risk.
  regulatory implications for investors when compared to ETFs which
  are funds.                                                          • ETPs typically do not have an ‘in-kind’ creation/redemption process.
• Structures often used by ETPs:                                      • ETPs are open-ended.
  – Grantor Trusts.                                                   • ETPs are bought and sold through brokers.
  – Delaware Statutory Trust.                                         • Trade on the exchange like any other stock.
  – New York Grantor Trust.                                           • Settle like any other share on the exchange.
  – Special Purpose Company.                                          • Can be purchased, cleared and held in brokerage or
                                                                        custodial account.
  – Partnerships.
                                                                      • Can go long or short.
  – Secured Note.
                                                                      • Are lendable and marginable.
  – Unsecured Note.
  – Commodity Pool.




                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.      86
ETF/ETP tool box

 Equity                                        Fixed income                                 Cash                                         Currency
 • Global                                      • Government                                 • EONIA, SONIA                               • Developed currencies
 • Capitalisation                              • Corporate                                  • Fed funds                                  • Emerging market currencies
      – e.g. large, mid, small…                • Credit                                                                                  • Inverse/leveraged
 • Sectors                                     • Inflation                                  Alternatives                                 • Strategy
 • Broad markets                               • High yield                                 • Hedge funds                                     – e.g. carry, momentum…
 • Emerging markets                            • Mortgage backed                            • Carbon
                                                                                            • Volatility                                 Commodities
 • Countries                                   • Emerging markets
 • Inverse/leveraged                                                                                                                     • Broad
 • Styles                                                                                                                                     – e.g. S&P, GSCI, DJUBS,
                                                                                                                                                RICI, CRB…
      – Active
                                                                                                                                         • Sub-indices
      – Dividend
                                                                                                                                              – e.g. energy, livestock,
      – Fundamental                                                                                                                             precious metals, industrial
      – Infrastructure                                                                                                                          metals, agriculture…
      – Real estate                                                                                                                      • Individual commodities
      – Shariah                                                                                                                          • Based on physically held assets
      – Thematic                                                                                                                              – e.g. gold, silver,
      – Private equity                                                                                                                          platinum, palladium…

      – Value                                                                                                                            • Based on futures

      – Growth                                                                                                                           • Based on forwards
                                                                                                                                         • Inverse/leveraged


                           2,557 ETFs with 5,802 ETF listings 1,092 other ETPs1 with 1,781 ETP listings
                                           Total: 3,649 products with 7,583 listings
1. Other Exchange Traded Products (ETPs) include Holding Company Depository Receipts (HOLDRs), Exchange Traded Commodities (ETCs), Exchange Traded Currency products, and
   Exchange Traded Notes (ETNs). Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock.



                                                                     FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                            87
New asset classes


 New asset classes will continue to squeeze the traditional core of actively managed funds

CAGR, 2008-2012 (%)


                   ETFs
  Passive products/ETFs
                                                                                          Innovative products
            Passive fixed       Liability-driven
            income               investments
 Passive                                                                                                      Infrastructure funds
  equity
                                                                  Commodities                    Absolute return
               Fixed income    Structured                    Real estate
                 core and       products                     (including REITs)                          Short-extension funds
                specialities
                                                                  Quantitative products                                                             Hedge funds
                                   Equity
                                  core and
      Money                      specialities
      market                                                                                                                                    Private equity



Active products

                                                                                                                                     Net revenue margin (basis points)

                  Estimated size, 2008 ($trillions). Scale = $1 trillion                                                             Active     Passive           Innovative
Source: BCG Global Asset Management 2009, ‘Conquering the Crisis’, July 2009, Projections 2008–2012.



                                                                         FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                         88
How should I decide which product to use?



 Considerations                    • What is my benchmark?                          Products

 • Product structure          • What are my regulatory guidelines?                  • Portfolio trading

 • Domicile                   • What are my mandate constraints?                    • ETFs

 • Country registrations           • What are my counterparty                       • ETNs
                                         risk guidelines?
 • Portfolio holdings                                                               • ETPs

 • Assets Under Management
                             • What are my tracking risk guidelines?                • Swaps

 • Average daily                  • How can I gain long and/or                      • Futures
   trading volume                       short exposure?
                                                                                    • Options
 • ETF provider / manager    • How can securities lending add value?
                                                                                    • Securitised products:
 • Transparency                    • What is my time horizon?                         certificates, warrants,
                                                                                      equity linked notes,
 • Client service               • What are the tax implications?                      local access products

 • Product choice
                              • What are my liquidity requirements?
 • Liquidity
                                   • What costs are involved?




                                    FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   89
Why use ETFs?


 Transparency                         • Investors can generally see the ETF composition at any given time



                                      • ETFs offer two sources of liquidity:
 Liquidity                                – Traditional liquidity measured by secondary market trading volume
                                          – The liquidity of the underlying assets via the creation and redemption process



                                      • ETFs provide immediate exposure to a basket or group of securities for instant diversification
 Diversification
                                      • Broad range of asset classes including equities, bonds, commodities, investment themes etc


                                      • ETFs are listed on exchanges and can be traded at any time the market is open
 Flexibility
                                      • Pricing is continuous throughout the day



                                      • ETFs offer a cost-effective route to diversified market exposure
 Cost effectiveness                   • The average total expense ratio (TER) for equity ETFs in Europe is 40 bps versus 91 bps (per annum) for the
                                        average equity index tracking fund and 180 bps (per annum) for the average active equity fund1



 Securities lending                   • ETF units and underlying assets can be lent out to potentially offset holding costs


1. Source: Morningstar. March 2010.



                                                                  FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.       90
How can ETFs be used?


              • Market exposure:
                Implement a wide variety of investment strategies using a broad range of market exposures
              • Directional views:
                Establish a broad directional market position, use long and short trades to implement market view(s)
              • Core satellite:
Strategic
                Achieve strategic focus
              • Rebalancing:
                Adjust drift in a portfolio’s asset allocation or style
              • Completion:
                Add uncorrelated instruments and/or asset classes to strategy



              • Interim beta:
                Maintain exposure to a given market while searching for a specific market opportunity
              • Cash management:
                Invest cash rapidly and cost effectively to gain desired market exposures
              • Derivatives alternative:
Tactical
                Broad opportunity set of Delta 1 exposures with single line cash based settlement
              • Exposure management:
                Shift portfolio emphasis by adjusting exposures (e.g. duration, credit)
              • Thematic:
                Implement thematic exposures (e.g. dividends, alternatives)




                                           FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.   91
ETFs can offer solutions for a range of portfolio strategies


                                         • Fill allocations required by investment strategy
  Portfolio
                                         • Improve diversification
  construction
                                         • Gain exposure to size, style, yield, sector, geography



                                         • Implement short-, long- term and/or neutral market views:
  Portfolio
                                             – Hard to access asset classes, themes, sector, country
  management
                                             – Tactical asset allocation



  Strategic asset                        • Establish core holdings
  allocations                            • Establish single country or sector satellites


                                         • Active risk budgeting
  Risk management
                                         • Combine ETFs in managing total portfolio volatility or duration adjustments in fixed income portfolios


                                         • Manage inflows, outflows, transitions
  Cash equitisation
                                         • Obtain wider exposures than offered by other Delta 1 products


  Exposure                               • Exposures to markets or asset classes where one has no expertise or operational capabilities

Note: The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an
offer to buy any security. There is no guarantee that any strategies discussed will be effective.



                                                                               FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                             92
Asian institutions build out investment capabilities

     • Asian institutions’ appetite for using external asset managers is growing slowly with the recovery in global markets.

     • Although a recent flurry of RFPs marked a resumption in manager hiring after a near dead-stop during the market crisis, institutional
       investors in Asia continue to build out their own investment management capabilities with an eye towards internalising assets for specific
       investment strategies.

     • In addition, Asian institutions are not planning to limit their internal management to passive strategies; many are looking to go toe to toe
       with external managers in active strategies with the goal of generating alpha.

     • These conclusions are drawn from the results of Greenwich Associates’ 2010 Asian Investment Management Study1, in which 84 of the
       largest institutional investors in Hong Kong, Macau, China, Taiwan, South Korea, Singapore and other Asian countries were interviewed.

     • These institutions together manage some $5 trillion in assets, a sum that was roughly unchanged from 2009 to 2010.

     • About one third of Asian institutions use ETFs as part of their investment strategies.

     • ETFs are most widely employed due to their relatively high levels of liquidity and flexibility, and for their ability to provide institutions with a
       means of accessing specific investment strategies or exposures.




1. Greenwich Associates conducted interviews with 84 of the largest institutions in Brunei, China, Hong Kong/Macau, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan
   and Thailand. Interview topics included asset allocation, product fees paid and compensation.
Source: Greenwich Associates: Asian Institutions Build Out Internal Investment Capabilities, Asian Investment Management June 2010.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                         93
ETFs gain foothold in institutional market

• In the United States, where ETFs are most commonly thought of as a retail
  product, institutional investors are finding that ETFs can be helpful tools for                    How ETFs are used by United States Institutions2
  cash equitisation, transition management, rebalancing, and obtaining hard
  to achieve exposures.
                                                                                                  Tactical adjustments                   45%                                 56%
• According to a recent survey by Greenwich Associates1, ETF use among
  United States pension funds, endowments and foundations has grown to
  about 14%, according to the results of Greenwich Associates’ most recent                        Transitions                        38%                         31%
  annual study of the United States investment management market.
• Despite that relatively modest share, institutions actually represent roughly
  half the assets invested in ETFs in the United States according to recent                       Cash equitisation                31%                                 63%
  industry estimates.
• Almost half the institutional users in the Greenwich Associates annual                          Core/satellite                   28%               19%
  study say they employ ETFs for what they consider ‘tactical’ tasks related
  to the management of their portfolios.
                                                                                                  Rebalancing                  24%                   31%
• Approximately 20% of institutional ETF users say they employ the funds to
  implement ‘strategic or long-term’ investment decisions, and an equal
  share report that they use ETFs for both tactical and strategic purposes.
                                                                                                  Portfolio completion         24%               25%
• Greenwich Associates asked the institutions participating in the survey to
                                                                                                                          3%
  name the providers they use for ETFs. The results revealed the following:
                                                                                                  ETF overlay                      25%
   – iShares/BlackRock is by far the most widely used provider of ETFs
     among United States institutions; and                                                                                3%

   – Most institutions that employ ETFs use more than one provider: 89% of                        Other                       6%
     institutional ETF users obtain ETFs from iShares/BlackRock, whereas
     60% use SPDRs/State Street and 51% use Vanguard.                                                                    0%        15%         30%         45%     60%       75%   90%    105%

                                                                                                                                           Plan sponsors                 Money managers

1. Greenwich Associates surveyed United States pension funds, endowments, foundations, and money managers that identified themselves as ETF users. Seventy institutions participated in the
   survey, including 43 plan sponsors and 27 money managers. The survey was conducted from 8 March to 16 March 2010.
2. Based on responses from 70 United States plan sponsors and money managers using ETFs. Source 2010 Greenwich Market Pulse – ETFs.
Source: Greenwich Associates: ETFs Gain Foothold in Institutional Market, April 2010. 2010 Greenwich Market Pulse – ETFs.



                                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                       94
ETFs gain foothold in institutional market (continued)

• Institutions cite a range of criteria used in selecting an ETF provider.
                                                                                                     Expected change in asset allocation to ETFs1
• In addition to the obvious consideration of fees, institutions rank four
  factors as particularly important in selecting an ETF provider:
  liquidity, benchmark, the track record of the fund, and reputation of                            Increase >10%                                   10%
  the company behind the fund.

• Almost 55% of institutions currently employing ETFs expect their
                                                                                                   Increase 5%–10%                                        18%
  usage of the product to increase in the next three years, including
  nearly 20% that expect the amount of assets dedicated to ETFs to
  grow by 5–10% in that period.
                                                                                                   Increase 1%–4%                                               25%
• Money managers are slightly more apt to predict an increase
  in use: approximately 65% expect to be devoting more assets
  to ETFs in the next 12 months, compared with half of plan sponsors.
                                                                                                   No change                                                          33%

• About 20% of plan sponsors expect to reduce their use of ETFs.

• Nearly 30% of institutions that do not use ETFs say they lack                                    Decrease -1%–4%            (8%)
  familiarity with the product.

• One way to address this lack of information would be for providers
  to win over investment consultants, who would then be in a position                              Decrease -5%–10%             (5%)
  to explain the product to their institutional clients as both a tool for
  tactical adjustments and a means of obtaining desired exposures.
                                                                                                   Decrease >-10%                    (3%)
• The results of this recent Greenwich Market Pulse suggest that
  many investment consultants are not currently recommending ETFs
  or even initiating discussions with their clients about the product.
                                                                                                                      (20%)    (10%)        0%   10%     20%    30%     40%

1. Based on responses from 70 United States plan sponsors and money managers using ETFs.
Source: Greenwich Associates: ETFs Gain Foothold in Institutional Market, April 2010. 2010 Greenwich Market Pulse – ETFs.



                                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                       95
Growth in institutional users of ETFs

                          Number of institutions                                                                                           Number of institutions
                          3,000                                                                                                                            3,000



                          2,500                                                                                                                            2,500



                          2,000                                                                                                                            2,000



                          1,500                                                                                                                            1,500



                          1,000                                                                                                                            1,000



                           500                                                                                                                             500



                              0                                                                                                                            0

 Number of institutions             1997       1998       1999       2000        2001       2002    2003    2004    2005    2006    2007         2008
    United States                   145            241    342         561         782       889     1,010   1,154   1,333   1,559   1,781        2,045
    Europe                           16            29      60         152         233       302     315     351     430     461     608           618
    Canada                           3              7      24          32         55         68      62      58      73      77      95           101
    Asia Pacific                     1              1      4           11         23         19      23      35      38      51      60            79
    Latin America                    0              0      0           4           5         8       7       19      40      36      57            68
    Other                            0              0      1           2           5         11      10      10      10      30      15            15
    Total                           165            278    431         762        1,103      1,297   1,427   1,627   1,924   2,214   2,616        2,926


Source: Global ETF Research and Implementation Strategy Team, BlackRock, Thomson Reuters.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.              96
Global institutions reported assets: as at end December 2008

                                                               All reporting firms             Reported ETF users                  % of ETF users
                                                                    #   Reported assets              #     Reported ETF                #     Reported ETF
                               Firm reported assets      institutions         (US$ Mn)    institutions   assets (US$ Mn)    institutions   assets (US$ Mn)
                               >50 Bn                              39         5,404,681             28            68,250          71.8%               1.3%
                               20-50 Bn                           113         3,505,831             84            69,810          74.3%               2.0%
                               10-20 Bn                           125         1,763,371             71            35,571          56.8%               2.0%
                               5-10 Bn                            205         1,481,979             98            15,356          47.8%               1.0%
                               1-5 Bn                           1,216         2,638,240            428            41,249          35.2%               1.6%
                               500-1000 Mn                        864           610,428            246            14,123          28.5%               2.3%
                               250-500 Mn                       1,196           421,369            323            13,359          27.0%               3.2%
                               100-250 Mn                       2,141           345,296            535            11,739          25.0%               3.4%
                               <100 Mn                         31,542           303,393            686             4,710           2.2%               1.6%
                               Total                           37,441        16,474,589          2,499           274,167           6.7%               1.7%

                                                               All reporting firms             Reported ETF users                   % of ETF users
                                                                    #   Reported assets              #     Reported ETF                #     Reported ETF
                               Firm type                 institutions         (US$ Mn)    institutions   assets (US$ Mn)    institutions   assets (US$ Mn)
                               Investment managers              7,061        11,817,584          2,443           176,880          34.6%               1.5%
                                 Bank and trust                   493           419,345            158            15,959          32.0%               3.8%
                                 Endowment fund                    17            11,477              8             1,811          47.1%              15.8%
                                 Finance company                    2                 6              –                 –           0.0%               0.0%
                                 Foundation                        44            11,043              2                 4           4.5%               0.0%
                                 Hedge fund                     1,030           349,620            356            14,194          34.6%               4.1%
                                 Insurance company                136           160,902             16             1,670          11.8%               1.0%
                                 Investment advisor             4,462        10,209,252          1,857           134,501          41.6%               1.3%
                                 Pension fund                    226            553,665            38               8,692        16.8%               1.6%
                                 Private equity                  331             41,858             7                 21           2.1%              0.0%
                                 Sovereign wealth fund            15             45,210             1                 28           6.7%              0.1%
                                 Venture capital                 305             15,206             –                  –           0.0%              0.0%
                               Brokerage firms                   143            338,226            45             86,869         31.5%               25.7%
                               Strategic entities             30,237          4,318,779            11             10,418           0.0%              0.2%
                                 Holding company                 501            254,762             5               3,210          1.0%              1.3%
                                Government agency                 97            640,813             –                  –           0.0%              0.0%
                                Corporation                   29,639          3,423,204             6              7,207           0.0%              0.2%
                               Total                          37,441         16,474,589         2,499            274,167           6.7%              1.7%

Source: Global ETF Research and Implementation Strategy Team, BlackRock, Thomson Reuters.



                                                                        FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.        97
Types of institutional users of ETFs

                        Type of institution       1997      1998      1999      2000        2001    2002    2003    2004    2005    2006    2007    2008

                        Investment advisor          109      200       319       549         802     923    1,023   1,167   1,380   1,564   1,946   2,152
                        Hedge fund                    9        20       30        73         114     144     152     180     209     285     340     438
                        Bank and trust               14        19       30        67          92     109     120     139     161     174     189     193
                        Pension fund                  5         8        9        15          22      28      28      33      45      36      45      48
                        Brokerage firm               14        11       15        15          16      25      28      31      37      40      45      48
                        Insurance company            13        19       27        39          50      60      65      66      74      80      23      17
                        Endowment fund                1         1        1         3           3       3       5       5       7       8       9       9
                        Private equity                0         0        0         0           0       0       0       0       1       4       7       9
                        Holding company               0         0        0         0           0       1       2       3       3       4       3       5
                        Corporation                   0         0        0         0           1       1       1       1       4      16       5       4
                        Foundation                    0         0        0         0           1       0       2       1       2       3       3       2
                        Sovereign wealth fund         0         0        0         0           0       0       0       0       0       0       0       1
                        Venture capital               0         0        0         1           2       3       1       1       1       0       1       0
                        Total                       165      278       431       762        1,103   1,297   1,427   1,627   1,924   2,214   2,616   2,926




Source: Global ETF Research and Implementation Strategy Team, BlackRock, Thomson Reuters.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.         98
Growth in institutional users of ETFs

Country          1997   1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   Country               1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

United States    145    241    342    561    782    889 1,010 1,154 1,333 1,559 1,781 2,045          Japan                   1     1     1     3     6     4     3     4     5     8    9     7

United Kingdom     9     12     15     25     37     55     61     55     79     87    112    120    Norway                  0     0     0     0     2     3     3     3     3     4    7     7

Canada             3      7     24     32     55     68     62     58     73     77     95    101    Malaysia                0     0     0     0     0     0     0     0     0     1    2     7

Switzerland        0      3      7     19     26     35     31     48     62     62     92     94    South Africa            0     0     0     0     3     7     7     5     4   20     7     6

Spain              1      2      8     32     47     60     62     61     70     76     76     76    Finland                 0     0     0     1     3     4     3     3     3     3    7     6

Germany            1      1      1      6     14     19     21     29     35     43     60     70    Denmark                 0     0     0     1     1     2     3     2     1     4    5     5

France             0      2     10     24     29     32     30     36     47     42     56     59    Ireland                 0     1     2     2     6     6     7     8     5     3    5     5

Luxembourg         0      1      4     10     10     13     14     16     20     19     32     33    Bermuda                 0    0      0     1     2     3     3     3     3     6    4     5

Italy              4      6      7     14     20     26     26     25     24     23     41     30    Brazil                  0     0     0     0     0     0     0     0     0     0    0     4

Mexico             0      0      0      0      0      0      0      0      7     11     19     24    Iceland                 0     0     0     0     1     1     1     1     2     2    2     3

Sweden             0      0      2      7     12     15     17     16     17     19     20     22    India                   0     0     0     0     0     0     0     0     0     0    0     2

Austria            0      0      0      3      9     11     11      7      8     12     22     21    Czech Republic          0     0     0     0     1     1     0     3     3     2    3     2

Argentina          0      0      0      0      0      0      0      6     18      7     20     21    Poland                  0     0     0     0     1     0     0     0     0     0    2     2

Hong Kong          0      0      1      4     11     10     10      7     12     12     19     19    Virgin Islands (US)     0     0     0     0     0     1     0     0     1     2    1     2

Taiwan             0      0      0      0      0      0      5     14     12     12     10     19    Cayman Islands          0     0     0     0     0     0     0     1     1     1    2     1

Chile              0      0      0      4      5      6      6     12     15     18     18     18    Hungary                 0     0    0      0     0     0     0     0     0     1    1     1

Liechtenstein      0      0      0      0      0      1      0      2      3     10     14     16    Bahamas                 0     0     0     0     0     0     0     0     0     0    1     1

Singapore          0      0      2      4      6      5      5      9      7     10     13     16    Peru                    0     0     0     0     0     2     1     1     0     0    0     1

Portugal           0      0      0      2      3      3      5      7     13     16     16     14    Thailand                0     0     0     0     0     0     0     0     0     0    0     1

Belgium            1      1      4      6      9      9     11     12     13     13     16     12    Colombia                0     0     0     0     0     0     0     0     0     0    0     0

Greece             0      0      0      0      2      5      5      9      9      9      7     11    Slovenia                0     0     0     0     0     0     0     0     0     1    1     0

Netherlands        0      0      0      0      0      1      4      8     13     10     11      9    Barbados                0     0     1     1     0     0     0     1     1     1    0     0

Australia          0      0      0      0      0      0      0      1      2      8      7      8    Total                 165   278   431   762 1,103 1,297 1,427 1,627 1,924 2,214 2,616 2,926


Source: Global ETF Research and Implementation Strategy Team, BlackRock, Thomson Reuters.



                                                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.                                      99
ETF portfolios


  Conservative                                       Balanced                                            Growth                                              Dynamic




Fixed income                                                                 Equities                                                   Property
    BarCap € Government Bond 1–3                                                 MSCI Europe ex-UK                                           FTSE EPRA/NAREIT Global Property Yield
    BarCap € Government Bond 3–5                                                 FTSE 100                                               Alternatives
    BarCap € Government Bond 7–10                                                S&P 500                                                     FTSE/Macquarie Global Infrastructure 100
    iBoxx € Liquid Corporate Bond                                                MSCI North America                                          S&P Listed Private Equity
                                                                                 Nikkei 225                                                  Dow-Jones-UBS Commodity
                                                                                 MSCI Emerging Markets



        Lower                                                                              Expected risk                                                                                 Higher




        Lower                                                                            Expected return                                                                                 Higher


Note: Sample portfolios are for illustrative purposes only and should not be construed as a recommendation to purchase or sell, or an offer to sell, or a solicitation of an offer to buy any security.
Source: BlackRock.



                                                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 100
Core-satellite: ETFs can be used in the core portfolio, as well as in the satellite


 ETFs in the core                                                         ETFs in the satellite




                               ETFs                                                                  Portfolio
              Active                                   Active                           ETF                                ETF
             strategy                                 strategy                        satellite                          satellite
                 3                                        1

  Active
                                                                            ETF
 strategy
                                                                          satellite
     2




• A broad market index.                                                 • Concentrated, focused ETFs.
• Exposure to diversified baskets of securities.                        • Sector and style.
• Optimised core: sector, style or country indices.                     • Individual countries and regions.
                                                                        • Alternative asset class.




                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 101
MSCI World and MSCI EM Index: weights and performance

MSCI World                                                                                         MSCI Emerging Markets
  Country                           # stocks              % weight           % YTD return            Country                           # stocks              % weight           % YTD return
  Australia                             72                  3.8%                  1.7%               Brazil                                83                 16.3%                 -1.5%
  Austria                               8                   0.1%                  5.8%               Chile                                 17                  1.5%                 -11.8%
  Belgium                               14                  0.4%                  4.8%               China                                141                 17.5%                 -2.3%
  Canada                               100                  5.6%                  7.7%               Colombia                              9                   0.8%                 -4.5%
  Denmark                               12                  0.5%                  8.2%               Czech Republic                        3                   0.4%                  9.0%
  Finland                               17                  0.5%                  -1.2%              Egypt                                 11                  0.4%                 -21.5%
  France                                75                  4.5%                 10.9%               Hungary                               4                   0.4%                 16.2%
  Germany                               53                  3.8%                  8.7%               India                                 67                  7.3%                 -14.7%
  Greece                                8                   0.1%                 16.5%               Indonesia                             24                  2.3%                 -4.7%
  Hong Kong                             40                  1.2%                  -1.7%              Malaysia                              40                  2.9%                 -1.3%
  Ireland                               5                   0.1%                  9.5%               Mexico                                24                  4.5%                 -2.1%
  Israel                                14                  0.3%                  -5.4%              Morocco                               3                   0.2%                  7.9%
  Italy                                 30                  1.3%                 15.4%               Peru                                  3                   0.6%                 -11.0%
  Japan                                340                  9.9%                  5.6%               Philippines                           15                  0.5%                 -11.8%
  Netherlands                           21                  1.2%                  8.5%               Poland                                23                  1.7%                  2.3%
  New Zealand                           5                   0.0%                  -0.1%              Russia                                29                  7.4%                 10.6%
  Norway                                10                  0.4%                  7.0%               South Africa                          47                  7.5%                 -7.4%
  Portugal                              9                   0.1%                  8.7%               South Korea                          102                 13.7%                 -4.7%
  Singapore                             31                  0.7%                  -4.5%              Taiwan                               125                 11.4%                 -6.0%
  Spain                                 28                  1.6%                 15.0%               Thailand                              22                  1.7%                 -3.8%
  Sweden                                33                  1.4%                  3.7%               Turkey                                19                  1.3%                 -11.8%
  Switzerland                           37                  3.5%                  3.4%               Total                                811                 100.0%                -3.8%
  United Kingdom                       106                  9.7%                  6.2%
  United States                        591                  49.1%                 5.5%
  Total                               1,659                100.0%                 5.6%

Note: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses.
Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. YTD returns reflect US dollar price performance only from 31 December
2010 to 28 February 2011. Index weights captured from Bloomberg on 04 March 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 102
Fixed income ETF and ETP asset growth

                          Assets US$ Bn                                                                                                         # products
                          250                                                                                                                         450


                                                                                                                                                      400


                          200
                                                                                                                                                      350


                                                                                                                                                      300

                          150
                                                                                                                                                      250


                                                                                                                                                      200
                          100

                                                                                                                                                      150


                                                                                                                                                      100
                           50


                                                                                                                                                      50


                            0                                                                                                                         0

 Assets (US$ Bn)                 2000        2001        2002        2003        2004    2005    2006    2007    2008     2009     2010     Feb-11
    ETF/ETP assets                $0.1        $0.1        $4.0       $5.9        $11.1   $21.7   $35.9   $60.0   $103.9   $167.1   $207.4   $212.7
    # ETFs/ETPs                    2           2           6          17          22      31      51     122      173      295      409      432




Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 103
Fixed Income Index Guide

     • Understanding index methodology is the key to selecting and using ETFs.
     • Investors must understand the differences in pricing sources1, frequency of pricing updates and what prices are being captured:
           – Where (one bank or consortium..)
           – When (intraday, daily, weekly..)
           – What (bid, mid, dirty…)


     Barclays
                                  Citigroup                      eb.rexx                    EuroMTS          FTSE            JPMorgan             Markit
      Capital


     Government                   Government                   Government                   Government        Gilt         Emerging market      Government


      Aggregate                                                 Corporate                 Inflation-linked                                       Corporate


      Corporate                                               Asset backed                                                                      Asset backed


   Inflation-linked                                                                                                                            Inflation-linked


                                                                                                                                              Emerging market


                                                                                                                                                   Credit


1. A fund may price a security using a different pricing source than used by the Index Provider itself.
Source: Fixed Income Index Guide, BlackRock, Markit.



                                                                               FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 104
Comparison of fixed income index trading characteristics

Index                                 Index
family       Exposure                 calculation        Price source                                                           Price contribution        Price type
Barclays     Aggregate                Barclays Capital   About 80% comes from Barclays Capital traders                          Daily                     Bid prices (non-government bonds)
Capital                                                                                                                                                   Mid prices (government bonds)
             Government – term        Barclays Capital   Barclays Capital traders                                               Daily                     Mid prices

             Government – short       Barclays Capital   About 80% comes from Barclays Capital traders                          Daily                     Mid prices
             treasury                                    The rest comes from third party vendors
             Corporate                Barclays Capital   About 80% comes from Barclays Capital traders                          Daily                     Bid prices

             Inflation-linked         Barclays Capital   Barclays Capital traders                                               Daily                     Mid prices

             Inflation-linked world   Barclays Capital   Euro government, United States TIPS, United Kingdom linkers and        Daily                     Mid prices
                                                         Japanese linkers come from Barclays Capital. Prices for Australian
                                                         linkers are taken from ABN Amro. Canadian linker prices are taken from
                                                         RBC Dominion and Swedish linker prices are taken from PMI Exchange
Citigroup                             Citigroup          Individual Citigroup trader pricing                                    Daily                     Bid prices
                                                                                                                                                          (Japan mid prices)
eb.rexx                               Deutsche Börse     Eurex Bonds                                                            Intraday 9:00 am          Traded price data
                                                                                                                                - 5:00 pm CET
EuroMTS                               EuroMTS            MTS Markets                                                            Intraday 9:00 am          Bid prices
                                                                                                                                - 5:30 pm CET
FTSE                                  FTSE               Gilt-Edged Market Makers Association (GEMMA) via Reuters               Daily                     Mid prices

JP Morgan                             JP Morgan          JP Morgan traders                                                      Daily                     Bid prices

Markit       Covered                  Markit Indices     Markit iBoxx consortium of up to 10 dealers                            Intraday for EUR and      Bid prices
                                                                                                                                GBP indices, all others
                                                                                                                                are end of day
             Government – liquid  Markit Indices         Markit iBoxx consortium of up to 10 dealers                            Intraday for EUR and      Bid prices
             capped and corporate                                                                                               GBP indices, all others
                                                                                                                                are end of day
             $ Corporate              Markit Indices     Markit iBoxx consortium of up to 10 dealers                            Intraday for EUR and      Bid prices
                                                                                                                                GBP indices, all others
                                                                                                                                are end of day

Source: Fixed Income Index Guide, BlackRock, Markit.



                                                                             FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 105
Global commodity ETF and ETP asset growth

                         Assets US$ Bn                                                                                                          # products
                         200                                                                                                                          800
                         180
                         160
                                                                                                                                                      600
                         140
                         120
                         100                                                                                                                          400
                          80
                          60
                                                                                                                                                      200
                          40
                          20
                            0                                                                                                                         0

 Assets (US$ Bn)                 2001         2002         2003         2004          2005   2006    2007    2008      2009     2010     Feb-11
   Agriculture                     -            -            -            -             -     $0.0    $2.9    $2.9     $7.7    $11.6      $15.3
   Alternative                     -            -            -            -             -      -       -      $0.0     $0.0     $0.0       $0.0
   Broad                           -            -            -            -           $0.4    $3.5    $7.6    $5.2    $15.2    $20.9      $24.5
   Energy                          -            -            -            -           $0.1    $1.0    $1.5    $5.0    $14.2    $13.1      $13.9
   Livestock                       -            -            -            -             -     $0.0    $0.0    $0.2     $0.2     $0.2       $0.3
   Industrial metals               -            -            -            -             -     $0.0    $0.4    $0.3     $1.9     $4.2       $5.0
   Precious metals               $0.0         $0.1         $0.3         $2.6          $6.5   $15.5   $28.8   $41.3    $80.8    $134.9    $131.6
   ETF/ETP total                 $0.0         $0.1         $0.3         $2.6          $7.0   $20.1   $41.3   $54.9    $120.0   $184.8    $190.6
 # ETFs/ETPs
   Agriculture                     -            -            -            -            -      10     27      85        96       133       135
   Alternative                     -            -            -            -            -       -      -       3         2        2         2
   Broad                           -            -            -            -            1      14     30      52        62       101       108
   Energy                          -            -            -            -            1      10     37      79        92       136       141
   Livestock                       -            -            -            -            -       3      7      20        20       24        24
   Industrial metals               -            -            -            -            -       6     12      54        64       102       105
   Precious metals                 1            1            2            5            6      13     34      71        98       184       187
   Total ETFs/ETPs                 1            1            2            5            8      56     147     364       434      682       702
Note: Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 106
Commodity indices

Indices are a convenient way to access a group of commodities. Indices can represent the asset class as a whole or a particular
sub-sector, such as energy, agriculture or precious metals.
     • Commodity indices differ in the rules used to gain exposure to the asset class.
     • Does the index track futures prices or spot prices? How often is the index rebalanced? Are there minimum and maximum weightings
       for different sectors or individual commodities? Investors should be aware of these rules before investing in structured products linked
       to indices.
     • This section describes the components and methodologies of some of the main commodity indices. Some of the key features are
       outlined below:

                                                                                                   % accumulated US$ total return
Commodity index comparison                                                                         500%                                                                                     500%

                                # of                  Weighting             Recomposition
                                                                                                   400%                                                                                     400%
Index                        commodities               method                 frequency

S&P GSCI                           24              World production             Monthly            300%                                                                                     300%

Rogers International
                                   38          Discretion of committee           Annual            200%                                                                                     200%
Commodity Index

Thomson Reuters/                                Equal weighted within                              100%                                                                                     100%
                                   19                                           Irregular
Jefferies CRB Index                                broad sectors

Dow Jones UBS                                                                                         0%                                                                                    0%
                                   19          Liquidity and production          Annual
Commodity Index

                                                                                                   -100%                                                                                    -100%
                                                                                                       Oct-98          Apr-01          Oct-03          Mar-06          Sep-08          Feb-11

                                                                                                       S&P GSCI TR                                      Thomson Reuters/Jefferies CRB Index TR
                                                                                                       Rogers International Commodity Index TR          DJ-UBS Commodity TR


Note: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses.
Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 107
Commodity index comparison

 S&P                                              Dow Jones UBS                                   Thomson Reuters Jefferies                        Rogers International
 GSCI                                             Commodity Index                                 CRB Index                                        Commodity Index (RICI)




                                                 DJ UBS       Thomson      Rogers International                                                   DJ UBS       Thomson      Rogers International
                                       S&P    Commodity        Reuters       Commodity Index                                           S&P     Commodity        Reuters       Commodity Index
 Commodity           Measure          GSCI         Index Jefferies CRB                   (RICI)   Commodity       Measure             GSCI          Index Jefferies CRB                   (RICI)
 Energy                              66.5%        32.7%          39.0%                   44.0%    Agriculture                        17.4%         31.1%          34.0%                   31.9%
 WTI crude oil       $/barrel        34.6%        14.6%          23.0%                   21.0%    Wheat           $cents/bushels      3.8%           4.7%           1.0%                   4.8%
 Brent crude oil     $/barrel        14.3%              -              -                 14.0%    Kansas wheat    $cents/bushels      0.8%               -              -                  1.0%
 RBOB gasoline       $cents/gallon    4.3%          3.5%           5.0%                   3.0%    Corn            $cents/bushels      4.3%           7.4%           6.0%                   4.8%
 Heating oil         $cents/gallon    4.5%          3.8%           5.0%                   1.8%    Soybeans        $cents/bushels      2.7%           7.8%           6.0%                   3.4%
 Gas oil             $/metric ton     5.5%              -              -                  1.2%    Soybean oil     $cents/pound            -          2.9%               -                  2.0%
 Natural gas         $/mmBtu          3.2%        10.9%            6.0%                   3.0%    Soybean meal    $/short ton             -              -              -                  0.8%
 Livestock                            4.3%          5.7%           7.0%                   3.0%    Cotton          $cents/pound        1.8%           2.3%           5.0%                   4.2%
 Live cattle         $cents/pound     2.5%          3.5%           6.0%                   2.0%    Sugar           $cents/pound        2.8%           3.6%           5.0%                   2.0%
 Feeder cattle       $cents/pound     0.4%              -              -                      -   Coffee          $cents/pound        1.0%           2.4%           5.0%                   2.0%
 Lean hogs           $cents/pound     1.4%          2.3%           1.0%                   1.0%    Cocoa           $/metric ton        0.3%               -          5.0%                   1.0%
 Precious metals                      3.4%        12.9%            7.0%                   7.1%    Orange juice    $cents/pound            -              -          1.0%                   0.6%
 Gold                $/troy oz        2.9%          9.8%           6.0%                   3.0%    Rubber          JPY/kilogram            -              -              -                  1.0%
 Silver              $/troy oz        0.5%          3.1%           1.0%                   2.0%    Lumber          $/1k board fleet        -              -              -                  1.0%
 Palladium           $/troy oz           –             –              –                   0.3%    Milling wheat   $cents/bushels          -              -              -                  1.0%
 Platinum            $/troy oz           –             –              –                   1.8%    Canola          CAD/metric ton          -              -              -                  0.8%
 Industrial metals                    8.3%        17.6%          13.0%                   14.0%    Rice            $/cwt                   -              -              -                  0.8%
 Aluminium           $/metric ton     2.4%          5.0%           6.0%                   4.0%    Oats            $cents/bushels          -              -              -                  0.5%
 Copper              $/metric ton     4.0%          7.5%           6.0%                   4.0%    Rapeseed        EUR/metric ton          -              -              -                  0.3%
 Lead                $/metric ton     0.5%              -              -                  2.0%    Azuki beans     JPY/bag                 -              -              -                  0.2%
 Nickel              $/metric ton     0.8%          2.4%           1.0%                   1.0%    Greasy wool     AUD/kilogram            -              -              -                  0.1%
 Tin                 $/metric ton         -             -              -                  1.0%
 Zinc                $/metric ton     0.6%          2.7%               -                  2.0%    Total                              100.0%        100.0%         100.0%                 100.0%
                                                                                                                  Data as at:         Dec-10        Jan-11         Dec-10                 Jan-11

Source: Global ETF Research and Implementation Strategy Team, BlackRock, S&P, Dow Jones, Jefferies, RICI Handbook 2011.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 108
Leveraged/inverse ETFs

• At the end of February 2011 there were 299 leveraged and inverse ETFs with US$39.7 Bn assets under management from 20 providers
  globally. There are currently 77 inverse/inverse leveraged ETFs in the United States and 109 inverse/inverse leveraged ETFs listed on
  exchanges outside the United States.
• These types of products are designed to rebalance daily which means that investors cannot expect the ETF to achieve its stated performance
  objective (-1x,-2x,+2x,+3x etc) over any period greater than one trading day. Investors can also use inverse (short) and leveraged inverse
  ETFs to implement hedges and short economic exposure.
• A significant effect on longer term returns is index volatility and its effect on compounding. In periods of high volatility the relationship breaks
  down as the effects of compounding become more pronounced, while in periods of low index volatility the effects are less apparent.

                                    Example return series
                                                                                Leveraged                Inverse           Leveraged/inverse
                                                          Index                    (x2)                    (x1)                  (x2)

                                        Period   Index        % return       ETF      % return    ETF         % return      ETF      % return

                                        Start    100.00                     100.00               100.00                    100.00

                                        Day 1    102.50           2.5%      105.00      5.0%     97.50             -2.5%   95.00       -5.0%

                                        Day 2    101.00           1.5%      101.93      2.9%     98.93             1.5%    97.78       2.9%

                                        Day 3    98.00            -3.0%     95.87      -5.9%     101.87            3.0%    103.59      5.9%

                                        Day 4    99.00            1.0%      97.83       2.0%     100.83            -1.0%   101.48      -2.0%

                                        Day 5    102.00           3.0%      103.76      6.1%     97.77             -3.0%   95.33       -6.1%

                                        Day 6    105.00           2.9%      109.86      5.9%     94.89             -2.9%   89.72       -5.9%

                                        Day 7    110.00           4.8%      120.32      9.5%     90.38             -4.8%   81.17       -9.5%

                                        Day 8    102.00           -7.3%     102.82     -14.5%    96.95             7.3%    92.98      14.5%

                                        Day 9    108.00           5.9%      114.92     11.8%     91.25             -5.9%   82.04      -11.8%

                                        Day 10   100.00           -7.4%     97.89      -14.8%    98.00             7.4%    94.20      14.8%

                                        Total                     0.0%                 -2.1%                       -2.0%               -5.8%
Note: For illustrative purposes only.
Source: BlackRock.



                                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 109
European ETF asset growth: physical and synthetic replication

                              Assets US$ Bn                                                                                                                                                        # ETFs

                              320                                                                                                                                                                      800
                                                                                                                                                                                       +5.3%
                                                                                                                                                               +25.2%
                              280


                              240                                                                                                      +59.0%                                                          600


                              200
                                                                                                                  +11.1%
                              160                                                                                                                                                                      400
                                                                                           +43.3%
                              120
                                                                   +63.3%
                               80                                                                                                                                                                      200


                               40


                                0                                                                                                                                                                      0

  Assets (US$ Bn)                           2005                   2006                   2007                   2008                   2009                   2010                  Feb-11
    Physical                                $41.3                  $64.1                  $80.6                  $76.4                 $125.0                 $155.1                 $164.6
    Synthetic                               $13.6                  $25.6                  $48.0                  $66.4                 $101.9                 $128.6                 $134.1
    Hybrid                                    -                      -                      -                      -                      -                    $0.3                   $0.3
    ETF AUM total                           $54.9                  $89.7                 $128.5                 $142.7                 $226.9                 $284.0                 $299.1
    Physical                                 138                    184                    231                    252                    314                    385                    397
    Synthetic                                27                     89                     192                    383                    515                    683                    716
    Hybrid                                    -                      -                      -                      -                      -                      3                      3
    # ETFs total                             165                    273                    423                    635                    829                   1,072                  1,116


Note: Synthetic replication refers to the use of derivatives to replicate the index performance such as swaps, futures, forwards, options etc. Physical replication refers to the use of physical securities
such as stocks, bonds and commodities to generate the index performance. Hybrid replication refers to a combination of both physical and synthetic products. Data as at end February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 110
ETFs listed globally by type of replication method

      Country/region                                                    # ETFs                          # total listings                        AUM (US$ Mn)
      listed            Exchange                           Physical Synthetic Hybrid   Total   Physical Synthetic Hybrid Total     Physical    Synthetic Hybrid     Total
      Asia Pacific                                           237        61        -    298       271      137          -   408     72,980.5    13,454.2     -     86,434.7
      Australia         Australian Securities Exchange       18          2        -     20       39         2          -    41      3,592.3      74.9       -      3,667.3
      China             Shanghai Stock Exchange              15          -        -     15       15         -          -    15      6,716.9        -        -      6,716.9
                        Shenzhen Stock Exchange               5          -        -     5         5         -          -    5       4,561.2        -        -      4,561.2
      Hong Kong         Hong Kong Stock Exchange             20         23        -     43       23        49          -    72     16,788.5     9,818.5     -     26,607.0
      India             Bombay Stock Exchange                 2          -        -     2         2         -          -    2         8.2          -        -        8.2
                        National Stock Exchange              15          -        -     15       15         -          -    15      386.2          -        -      386.2
      Indonesia         Indonesia Stock Exchange              1          -        -     1         1         -          -    1         3.4          -        -        3.4
      Japan             Osaka Securities Exchange             7          4        -     11        7         4          -    11     10,711.8     394.1       -     11,106.0
                        Tokyo Stock Exchange                 63          6        -     69       65         7          -    72     20,973.4     312.4       -     21,285.8
      Malaysia          Nagoya Stock Exchange                 1          -        -     1         1         -          -    1        45.8          -        -       45.8
      Malaysia          Bursa Malaysia Securities Berhad      4          -        -     4         5         -          -    5       392.9          -        -      392.9
      New Zealand       New Zealand Stock Exchange            6          -        -     6         6         -          -    6       391.0          -        -      391.0
      Singapore         Singapore Stock Exchange              5         16        -     21       10        64          -    74      628.4       2,335.2     -      2,963.6
      South Korea       Korea Stock Exchange                 58          9        -     67       58         9          -    67      4,874.5     507.5       -      5,382.0
      Taiwan            Taiwan Stock Exchange                14          -        -     14       16         1          -    17      2,824.0        -        -      2,824.0
      Americas                                               895       216        3    1,114    1,227     251          3   1,481   945,695.7   33,813.3   120.0   979,628.9
      Brazil            BM&F Bovespa                          7          -        -     7         7         -          -    7       1,793.4        -        -      1,793.4
      Canada            Toronto Stock Exchange               101        67        1    169       128       68          1   197     37,155.5     3,150.9   21.3    40,327.7
      Chile             Bolsa Comercio Santiago               -          -        -      -       50         -          -    50         -           -        -         -
      Mexico            Mexican Stock Exchange               17          2        -     19       272       36          -   308      8,368.8      13.3       -      8,382.2
      US                NASDAQ                               66          5        -     71       66         5          -    71     38,623.7     252.6       -     38,876.3
                        NYSE Arca                            704       142        2    848       704      142          2   848     859,754.2   30,396.4   98.6    890,249.3
                                                                                                                                                                continued…




Note: Data as at February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 111
ETFs listed globally by type of replication method (continued)

      Country/region                                                   # ETFs                         # total listings                        AUM (US$ Mn)
      listed         Exchange                             Physical Synthetic Hybrid Total Physical Synthetic Hybrid Total        Physical    Synthetic Hybrid       Total
      Europe, Middle East and Africa (EMEA)                 425        717       3    1,145   1,439     2,470        4   3,913   166,901.1   134,127.0   345.8   301,373.8
      Austria         Wiener Borse                           1          -        -      1       7        14          -    21       99.3          -         -       99.3
      Belgium         NYSE Euronext Brussels                 -          1        -      1       -         23         -     23        -         53.7        -       53.7
      Finland        NASDAQ OMX Helsinki                     1          -        -     1       1           -         -    1        279.3         -         -       279.3
      France         NYSE Euronext Paris                    24         237       -    261     143        341         -   484      5,551.5    57,053.6      -     62,605.0
      Germany        Boerse Stuttgart                        -          -        -     -      168        244         -   412         -           -         -         -
                     Deutsche Boerse                        109        300       -    409     282        526         1   809     48,638.3    67,532.1      -     116,170.4
      Greece         Athens Exchange                         3          -        -     3       3           -         -    3        74.0          -         -       74.0
      Hungary        Budapest Stock Exchange                 1          -        -     1       1           -         -    1        17.5          -         -       17.5
      Ireland        Irish Stock Exchange                    1         13        -    14       1          13         -   14        25.1        427.3       -       452.4
      Italy          Borsa Italiana                          4         19        -    23      157        352         -   509      1,144.9     1,553.9      -      2,698.8
      Netherlands    NYSE Euronext Amsterdam                 6          6        -    12       75         33         -   108       221.2       113.0       -       334.2
      Norway         Oslo Stock Exchange                     2          4        -     6       2          4          -    6        353.8       379.0       -       732.8
      Poland         Warsaw Stock Exchange                   -          1        -     1        -         1          -    1          -         85.3        -       85.3
      Portugal       NYSE Euronext Lisbon                    1          2        -     3       1          2          -    3          -         31.7        -       31.7
      Russia         RTS Stock Exchange                      1          -        -     1       1           -         -    1         8.9          -         -        8.9
      Saudi Arabia   Saudi Stock Exchange                    2          -        -     2       2           -         -    2        20.5          -         -       20.5
      Slovenia       Ljubljana Stock Exchange                1          -        -     1       1           -         -    1         4.0          -         -        4.0
      South Africa   Johannesburg Stock Exchange            26          -        -    26       26          -         -   26       2,236.5        -         -      2,236.5
      Spain          Bolsa de Madrid                         8          4        -    12       8          59         -   67       1,139.4      205.7       -      1,345.1
                     Latibex                                 -          -        -     -       1           -         -    1          -           -         -         -
      Sweden         NASDAQ OMX Stockholm                    7         18        -    25       13         52         -   65       2,040.8      820.9       -      2,861.7
                     Burgundy                                -          -        -     -       5          10         -   15          -           -         -         -
      Switzerland    SIX Swiss Exchange                     88         26        -    114     212        403         -   615     38,852.1     1,203.5      -     40,055.6
      Turkey         Istanbul Stock Exchange                12          -        -    12       12          -         -   12        177.7         -         -       177.7
      UAE            Abu Dhabi                               -          1        -     1        -         1          -    1          -          4.6        -        4.6
      United Kingdom London Stock Exchange                  127        85        3    215     269        356         3   628     66,016.2     4,662.8    345.8   71,024.7
                     Chi-X (not an official exchange)        -          -        -     -       24         26         -   50          -           -         -         -
                     Turquoise                               -          -        -     -       24         10         -   34          -           -         -         -
      Total                                                1,557       994       6    2,557   2,937     2,858        7   5,802 1,185,577.2 181,394.5     465.7   1,367,437.4
Note: Data as at February 2011.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



                                                                      FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 112
Structures of ETFs and ETNs

General product features common to ETFs and ETNs are:                      Specific features of swap-based ETFs are:

   • Exchange traded.                                                         • Fund holds a basket of securities (which can be different from
                                                                                the underlying index securities) and an index swap.
   • Easy accessible investment vehicles for a wide range of
     asset classes.                                                           • The swap counterparty risk is limited to a maximum of 10% of
                                                                                the value of the fund under UCITS rules.
   • Low tracking error.
                                                                              • The investor has recourse to the basket of securities in the case
   • Exposure to market risk of the asset class/index.                          of failure of the fund issuer.
Specific features of physical ETFs are:                                       • Structure allows compliance with UCITS rules on more indices
   • Fund holds underlying securities in a ring-fenced separate                 than physical ETFs (i.e. commodity ETFs).
     account exposing the investor to no counterparty risk of                 • Sometimes tax advantages possible (i.e. avoidance of
     the issuer.                                                                stamp tax).
   • In the case of failure of the fund issuer, the investor has              • While multiple market-makers can price swap-based ETFs
     recourse directly to the pool of underlying shares or bonds.               on- and off-exchange, every creation and redemption with the
   • High transparency with regards to the holdings of the fund.                fund company generally involves a single swap counterparty.

   • Opportunity for additional income to further reduce costs             Specific features of ETNs are:
     (i.e. through securities lending inside the ETF) is better than for      • Investor owns a note, exposing the investor to the counterparty
     other ETPs as physical ETFs hold index securities.                         risk of the note issuer which is sometimes mitigated through
   • Multiple market-makers can create and redeem new shares with               collateral or guarantees.
     the fund company promoting a highly competitive pricing, both            • More flexibility to issue products, i.e. on single commodities
     on- and off-exchange (‘multi-dealer model’).                               and currencies.

                                                                              • Possible access to structured product type solutions.




                                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 113
Structures of ETFs and ETNs (continued)

                                                                                 Exchange Traded Funds (ETFs)                                           Exchange Traded Notes (ETNs)


  Exchange listed                                                                                 Yes                                                                 Yes

  Easily accessible investment vehicles for a
                                                                                                  Yes                                                                 Yes
  range of asset classes

  Low tracking error                                                                              Yes                                                                 Yes

  Low costs                                                                                       Yes                                                                Mostly

  Exposure to market risk of the asset
                                                                                                  Yes                                                                 Yes
  class/index

  Structure                                                                                    Mutual fund                                                            Note

  UCITS fund                                                                                      Yes1                                                                 No

                                                                                                         Index swap plus a basket of non-index
  Underlying holdings                                     Index securities for physical ETFs                                                                           N/A
                                                                                                            securities for swap-based ETFs

                                                                       No, mutual funds hold assets in separate ring-fenced                                Yes, full exposure to credit
  Fund/note issuer risk
                                                                       segregated accounts or a ring-fenced fund company                                    worthiness of note issuer

                                                                                                         Yes, for swap-based ETFs but limited to
  Swap counterparty risk                                        No, for physical ETFs                                                                                  N/A
                                                                                                                    10% under UCITS

                                                                                                                                                   Some notes are backed by physical assets
  Other counterparty risk considerations                               Securities lending and dividend enhancement activity2
                                                                                                                                                     or guarantees to decrease issuer risk

                                                             Yes, full holdings disclosed
  Transparency                                                                                                Limited for swap-based ETFs                            Limited
                                                                  for physical ETFs

  Competitive multi-dealer model to trade on-
                                                           Yes, possible for physical ETFs                    Limited for swap-based ETFs                            Limited
  and off-exchange


1. With exemptions possible.
2. In addition to securities lending, the fund can earn extra income through dividend enhancement. Dividend enhancement describes partly recovering withholding taxes through the purchase of
   listed single stock notes during the period of dividend payments.
Source: BlackRock.



                                                                            FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 114
Key tax considerations


  Example: iShares MSCI Emerging Markets: European versus United States listed funds



      Local shares                                   2.71%                               European listed                                  2.71%
                                                                                              ETF                                                                            Non-United States
         (3.01%                                                                                                                                                               based investor
     gross dividends)                           Net dividends                             (Irish domiciled)                       Gross dividends
                                             (9.91% withholding                                                            (no withholding out of the ETF)
                                                [blended rate])



                                                                                       United states listed
      Local shares                                   2.77%                                    ETF                                        1.94%1                              Non-United States
         (3.01%                                                                                                                                                               based investor
     gross dividends)                           Net dividends                              (United states                           Net dividends
                                             (8.06% withholding                              domiciled)                        (up to 30%2 withholding)
                                                [blended rate])



                                                                                       United states listed
      Local shares                                   2.77%                                    ETF                                         2.77%                                 United States
        (3.01%                                                                                                                                                                 based investor
    Gross dividends)                            Net dividends                              (United states                         Gross dividends
                                             (8.06% withholding                              domiciled)                    (no withholding out of the ETF)
                                                [blended rate])


1. Assumes impact of maximum rate.
2. Maximum rate, lower rate may apply based on local tax treaties with United States.
Note: The information given does not constitute tax or legal advice and prospective investors should consult their own professional advisers as to the implications of their subscribing for,
purchasing, holding, switching or disposing of shares under the laws of the jurisdiction in which they may be subject to tax. Tax legislation may change.
Source: BlackRock, July 2009.



                                                                               FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 115
Delta 1 products comparison


                                       ETFs                                Futures                          Swaps



Round trip execution costs   Commission, bid/ask spread          Commission, bid/ask spread           Usually commission


Holding cost                 Total Expense Ratio (TER)              Roll, basis risk, margin               Financing


Tracking error                          Yes                                   No                              No


Minimum trade size                    1 share                             1 contract                  Variable on exposure


Expiry                                  No                            Monthly, quarterly                     Fixed


Available to lend                       Yes                                   No                              No


Legal structure                        Fund                            Listed derivative                OTC derivative


Liquidity provided               Exchange dealers                     Exchange dealers                   Single dealer




                                                FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 116
Liquidity: the ETF transaction process

Primary market                                                                                    Secondary market




                             Securities                                       Cash (OTC)
                                                ETF market
       ETF manager                                                                                    Investor
                                               makers/broker
                             ETF                                              ETF




                                                   Cash



                                                          ETF¹
                                                 Exchange




1. ETF or Creation Basket.



                                          FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 117
Appendix: regulatory update

FINRA regulatory notice 09-31

FINRA, the Financial Industry Regulatory Authority which regulates all securities firms doing business in the United States, issued a regulatory notice in
June 2009 to provide guidance on leveraged and inverse ETFs. The notice states that "...inverse and leveraged ETFs that are reset daily typically are
unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets...”.

The following is taken from the notice: Exchange-traded funds (ETFs) that offer leverage or that are designed to perform inversely to the index or benchmark
they track – or both – are growing in number and popularity. While such products may be useful in some sophisticated trading strategies, they are highly
complex financial instruments that are typically designed to achieve their stated objectives on a daily basis. Due to the effects of compounding, their
performance over longer periods of time can differ significantly from their stated daily objective. Therefore, inverse and leveraged ETFs that are reset daily
typically are unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets.

This Notice reminds firms of their sales practice obligations in connection with leveraged and inverse ETFs. In particular, recommendations to customers must
be suitable and based on a full understanding of the terms and features of the product recommended; sales materials related to leveraged and inverse ETFs
must be fair and accurate; and firms must have adequate supervisory procedures in place to ensure that these obligations are met.

Most leveraged and inverse ETFs “reset” daily, meaning that they are designed to achieve their stated objectives on a daily basis. Due to the effect of
compounding, their performance over longer periods of time can differ significantly from the performance (or inverse of the performance) of their underlying
index or benchmark during the same period of time. For example, between December 1, 2008, and April 30, 2009:

     • The Dow Jones U.S. Oil and Gas Index gained 2 percent, while an ETF seeking to deliver twice the index's daily return fell 6 percent and the related
       ETF seeking to deliver twice the inverse of the index's daily return fell 26 percent.

     • An ETF seeking to deliver three times the daily return of the Russell 1000 Financial Services Index fell 53 percent while the index actually gained
       around 8 percent. The related ETF seeking to deliver three times the inverse of the index's daily return declined by 90 percent over the same period.

This effect can be magnified in volatile markets. Using a two-day example, if the index goes from 100 to close at 101 on the first day and back down to close at
100 on the next day, the two-day return of an inverse ETF will be different than if the index had moved up to close at 110 the first day but then back down to
close at 100 on the next day. In the first case with low volatility, the inverse ETF loses 0.02 percent; but in the more volatile scenario the inverse ETF loses
1.82 percent. The effects of mathematical compounding can grow significantly over time, leading to scenarios such as those noted above.




Source: Regulatory Notice 09-31, Financial Industry Regulatory Authority.



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Appendix: regulatory update (continued)

UK Retail Distribution Review (RDR) update

The use of ETFs is likely to increase significantly by Independent Financial Advisors (IFAs) in the United Kingdom based on the regulatory proposals outlined
in RDR feedback statement by the United Kingdom’s FSA.

In January 2011, the FSA published the final rules on professional standards (PS11/1). This paper completes the rules on RDR along with those on advisor
charging and the labelling of services, which were finalised in March 2010. The new framework will come into effect at the end of 2012.

The four key aims of this FSA policy are to:

     • Improve the clarity with which firms describe their services to consumers.

     • Make sure the cost of advisor services is agreed between adviser and client, rather than determined by product providers.

     • Increase the professional standards of investment advisors.

     • Ensure personal investment firms have adequate capital resources for complaint redress.

The RDR is designed to provide a clean and sustainable market for the future. It will ensure that customers get good quality advice, products and services
suited to their needs, from advisors displaying higher standards of professionalism and expertise. The regime needs to change and this change will be
supported by the FSA’s intensive supervisory approach which will include a greater focus on individuals.

Clarity of advice services

On 26 March 2010, the FSA published its feedback statement (Policy Statement 10/6) to its Consultation Paper of June 2009 (CP09/18) relating to proposals
to improve the clarity with which advisor firms describe their services to consumers.

The FSA proposals required that firms describe their advice services as either ‘independent’ or ‘restricted’. Firms offering independent advice would need to
demonstrate that their recommendations were based on a comprehensive and unbiased analysis of the market and that any products selected were made in
the interests of clients.

If a firm elected to limit its product range to certain investments or strategies, it needed to describe the services it offered as ‘restricted’ and this fact must
needed to be clearly disclosed to the consumer.


Source: Retail Distribution Review Newsletter, February 2011, Financial Services Authority; Policy Statement 11/1, Distribution of retail investments: Delivering the RDR – professionalism, Financial
Services Authority; Policy Statement 10/6, Distribution of retail investments: Delivering the RDR – feedback to CP09/18 and final rules Financial Services Authority; Feedback to CP10/14 and
CP10/22 and final rules, Financial Services Authority; Financial Services Authority; BlackRock.



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Appendix: regulatory update (continued)

UK Retail Distribution Review (RDR) update (continued)

Clarity of advice services (continued)

The FSA also noted that it may be possible for certain advisors servicing specialist client groups to retain the independence ‘label’ even where certain products
were excluded from the scope of their advice, although the firm would have to demonstrate that the product or strategy was not appropriate for their clients.

In addition, the FSA observed that this exception was unlikely to be of benefit to most firms since most retail investment products were likely to be appropriate
for the vast majority of retail investors.

Separately, the FSA noted it was clear from responses received that it was not widely understood that ETFs already fell within the current definition of
packaged products and for the avoidance of doubt, it made clear that any products which might achieve similar outcomes as more traditional retail investment
products were potentially caught by the new rules.

Remuneration

On 26 March 2010, the FSA published its feedback statement (Policy Statement 10/6) to its Consultation Paper of June 2009 (CP09/18) relating to the
introduction of a system of ‘adviser-charging’ to remove the potential commission-bias through the influence of product providers.

The FSA stated they would modernise the way that advice was paid for by requiring advisers to agree the cost of financial advice with customers up-front,
removing the possibility of commission bias and ensuring the cost of all advice was clear to consumers whenever it was given. The FSA also noted that it
wanted adviser firms to have charging structures that were product neutral in that the charges reflected the services provided to the client, not the particular
product provider or type of product. The Policy Statement contained final rules in relation to ‘adviser-charging’ and ‘service-labelling’ and the FSA stated that
they would proceed with the proposals set out in the consultation. As a result of this, it was expected that with effect from 1 January 2013, advisers would be
prevented from receiving commissions paid by product providers.

Product providers are no longer required to monitor ‘appropriate adviser-charging’ (with reference to so-called ‘decency limits’) though there remains a
requirement to obtain and validate instructions from the client if the charge is deducted (by the provider) from the client’s investment. This creates a significant
challenge for providers as due to a result of increasing disintermediation, in part due to the growth of platforms, the end-consumer will not be a direct client of
the firm. The FSA accepts that bespoke share classes to provide for a full range of possible adviser charges (when taken from funds) is impractical and
recognises the value of cash accounts provided by platforms or other third-parties to collect adviser charges. These changes would be significant as many
IFAs were ‘tied’ and ‘multi-tied’, which respectively described those selling only the products of one provider, such as in a bank, and those selling products
from a limited range of providers.

Source: Retail Distribution Review Newsletter, February 2011, Financial Services Authority; Policy Statement 10/6, Distribution of retail investments: Delivering the RDR – feedback to CP09/18
and final rules, Financial Services Authority; Feedback to CP10/14 and CP10/22 and final rules; Financial Services Authority; BlackRock.



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Appendix: regulatory update (continued)

UK Retail Distribution Review (RDR) update (continued)

Remuneration (continued)

This is a particularly important development for factory-gate priced products such as most ETFs, however, it is uncertain whether the current practice of
rebating a proportion of the annual management charge (if this is used to fund the consumer cash account) will be acceptable and the FSA states that it
intends to consult further on whether any rebates should be prohibited. In addition, the FSA will proceed with proposals for advisers to describe the advice
provided as either independent or ‘restricted’.

Professional standards of advisers

On 20 January 2011, FSA published its feedback statement and final rules (Policy Statement 11/1) relating to the professional standards of
investment advisers.

The scope of the changes set out in the paper covers all investment advisers, whether they will offer independent or restricted advice, covering advisers within
all types of firms (e.g. banks, product providers, and Independent Financial Advisers or wealth managers).

The FSA confirmed that, after extensive consultation, retail investment advisers will need to hold a Statement of Professional Standing (SPS) if they want to
give independent or restricted advice after January 2013. The statement will provide customers with evidence that the adviser subscribes to a code of ethics, is
qualified, and has kept their knowledge up to date.

When the RDR comes into force in January 2013, the FSA will start collecting information about individual advisers, such as the qualifications they hold and
which accredited body they use. However, in preparation for 2013, the first of the Professionalism rules will come into force in July 2011, and from this point
firms will be obliged to notify the FSA if any adviser falls below the required standard of competence or ethical behaviour.

Initial and ongoing knowledge

Advisers deemed competent on or before 30 June 2009 will need to attain an appropriate qualification by the end of 2012. Advisers who are assessed as
competent after June 2009 must attain an appropriate qualification within 30 months of starting.

Advisers holding certain appropriate qualifications do not need to take further exams to meet RDR standards, but are likely to need to carry out qualifications
gap-fill using relevant structured Continuing Professional Development (CPD).CPD activity carried out in the past can be used towards this gap filling, where it
meets a learning outcome set out in the gap fill template. Advisers will need to have this qualification gap fill verified by an accredited body.

Source: Retail Distribution Review Newsletter, February 2011, Financial Services Authority. Policy Statement 10/6, Distribution of retail investments: Delivering the RDR – feedback to CP09/18
and final rules, Financial Services Authority; Policy Statement 11/1, Distribution of retail investments: Delivering the RDR – professionalism, Financial Services Authority; Feedback to CP10/14 and
CP10/22 and final rules, Financial Services Authority; Financial Services Authority; BlackRock.



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Appendix: regulatory update (continued)

UK Retail Distribution Review (RDR) update (continued)

Statement of Professional Standing (SPS)

From 1 January 2013, advisers will be required to have obtained an annual SPS from an accredited body. The statement will provide customers with
evidence that the adviser has subscribed to a code of ethics, is qualified, and has kept their knowledge up-to-date. The FSA has not introduced a rule
requiring firms or advisers to present the adviser’s SPS to consumers, but expects that some advisers will choose to do this to help raise consumers’
awareness of the profession.

RDR timetable

2011 publications:

     • Consultation Paper – RDR-related changes to complaints reporting.

     • Consultation Paper – product disclosure changes to reflect adviser charging.

     • Policy Statement – platforms.

     • Consultation Paper – capital requirements: how to apply a consistent approach to the Expenditure Based Requirements (EBR).

Actions for firms, advisers and providers:

     • End 2011 – Personal Investment Firms (PIFs) should hold a minimum of one-month EBR (minimum £15,000).

     • End 2012 – advisers should hold an appropriate qualification including gap-filling, where required.

     • End 2012 – all advisers and product providers must be ready to operate adviser charging and consultancy charging and meet the
       associated requirements.

     • End 2012 – all advisers should describe their services as either independent or restricted.

     • End 2013 – PIFs should hold a minimum of three-months EBR (minimum £20,000).




Source: Retail Distribution Review Newsletter, February 2011, Financial Services Authority; BlackRock.



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Appendix: regulatory update (continued)

UK Retail Distribution Review (RDR) update (continued)

In the United States, fee-based advisers (paid by the consumer) have embraced the use of ETFs to a greater degree than commission-based advisers (paid by
the product provider).

In the United Kingdom the use of ETFs among IFAs is very limited as they are typically tied and multi-tied.

ETFs are not currently included in the tied or multi-tied product sets. Investors who are expressing concerns over counterparty risk, transparency and liquidity
when using structured products, swaps, certificates, and notes are showing a preference for ETFs where the structure is a fund, and often, more specifically for
ETFs which invest exclusively in physical securities.

The role of platforms in a RDR world

One area of growing importance is the platforms market. In November 2010 the FSA published a Consultation Paper (CP10/29) on this topic.

The FSA’s aim is to:

     • Prevent product providers from making payments that advisers could use to disguise the charge the customer is paying for advice, which could
       influence advisers in recommending one product over another. Allowing such payments could undermine what the FSA has set out to achieve for
       consumers by removing commission bias and could leave product charges at an artificially high level.

     • Ensure platforms and other nominee services allow their customers to transfer their investments elsewhere without having to cash them in first (re-
       registration).

     • Require platforms to be upfront about the income they receive from fund managers or product providers. This will make it easier for advisers and
       consumers to compare different types of platform and the services provided.

     • Make sure that customers who invest in funds through platforms and other nominee services are provided with information about the fund from their
       fund managers, and maintain their voting rights.

The consultation period closed on 17 February 2011 and the FSA plans to issue a Policy Statement later this year.




Source: Retail Distribution Review Newsletter, February 2011, Financial Services Authority; Feedback to CP10/14 and CP10/22 and final rules, Financial Services Authority; Financial Services
Authority; BlackRock.



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Appendix: regulatory update (continued)

Australia’s future of financial advice reform

The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, said that the Future of Financial Advice reforms are designed
to tackle conflicts of interest that have threatened the quality of financial advice that has been provided to Australian investors, and the mis-selling of
financial products.

     • No more new commissions from 2012. Ban on commissions and volume-based payments and any other type of remuneration structure that creates a
       conflict of interest for the adviser. The ban applies to all retail investment products including managed investments, superannuation and margin loans
       but the ban won’t apply to risk insurance products.

     • Must act in the best interests of clients. From 1 July 2012, all financial advisers will be subject to a statutory fiduciary duty to act in the best interests
       of clients.

     • Introduction of ‘product neutral’ adviser charging regime.

     • Advisers can charge asset-based fees, but not on borrowed money. The client must agree with the asset-based fee. One of the greediest tactics used
       by some commission-based advisers was to recommend that a client borrow money to invest, and then charge a commission on the borrowed money
       as well.

     • Remove exemption for accountants to provide advice on self-managed super funds (SMSFs). This change will cause quite a
       few ripples in the accounting profession, but there is positive news for this sector. The Government also mentions introducing a streamlined licensing
       regime for accountants advising on SMSFs.

     • Simpler disclosure information for clients. Financial Services Guides (FSG) must be more effective at disclosing any restrictions on the adviser when
       providing advice, any potential conflicts of interest and how the adviser is remunerated.

     • ASIC (Australian Securities and Investments Commission) to be given more powers to ban individuals from providing advice.

     • Review definitions of retail (unsophisticated) or wholesale (sophisticated) clients.

     • Review of professional standards for financial advisers. The Government will appoint a panel to review professional standards, including conduct and
       competency standards, and potentially a code of ethics.

     • Consider possibility of introducing a statutory compensation scheme to compensate clients of financial advisers.


Source: Super Guide, Treasury Ministers Portal, The Future of Financial Advice, Information Pack, 26 April 2010.



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Appendix: regulatory update (continued)

SEC-FINRA investor alert on leveraged and inverse etfs1

The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) issued an investor alert on Tuesday 18 August 2009
entitled ‘Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors’:

     “The SEC staff and FINRA are issuing this Alert because we believe individual investors may be confused about the performance objectives of leveraged
     and inverse exchange-traded funds (ETFs). Leveraged and inverse ETFs typically are designed to achieve their stated performance objectives on a daily
     basis. Some investors might invest in these ETFs with the expectation that the ETFs may meet their stated daily performance objectives over the long
     term as well. Investors should be aware that performance of these ETFs over a period longer than one day can differ significantly from their stated daily
     performance objectives.”


CFTC hearings on energy position limits and hedge exemptions2

The United States Commodity Futures Trading Commission (CFTC) held hearings regarding Energy Position Limits and Hedge Exemptions on 28 July 2009,
29 July 2009, and 5 August 2009, discussing whether federal position limits should be set on the energy markets.

The hearings provided critical input from a wide range of industry participants and academics to the Commission’s efforts to examine different approaches to
regulate energy markets. The Commodity Exchange Act states that the Commission shall impose limits on trading and positions as necessary to eliminate,
diminish or prevent the undue burdens on interstate commerce that may result from excessive speculation. The CFTC’s hearings examined the role of position
limits in energy markets in fulfilling the CFTC’s mission to ensure the fair, open and efficient functioning of futures markets.

Goldman Sachs, JPMorgan Chase and other leading banks are exempt from most commodity-trading limits in order to manage risks as they serve as market
makers. The Commodity Futures Trading Commission is looking into whether those exemptions should stand, as it considers blanket limits on a variety of
commodity markets.

As a result, a number of ETPs/ETFs providing exposure to commodities issued notices that they have suspended their creation process.




1. Source: Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors, Financial Industry Regulatory Authority.
2. Source: Hearings on Energy Position Limits and Hedge Exemptions, U.S. Commodity Futures Trading Commission.



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Appendix: regulatory update (continued)

SEC approves new stock-by-stock circuit breaker rules1

On 10 June 2010, the Securities and Exchange Commission (SEC) approved rules that will require the exchanges and the Financial Industry Regulatory
Authority (FINRA) to pause trading in certain individual stocks if the price moves 10% or more in a five-minute period. The proposal from the SEC and FINRA
came in response to the market disruption of 6 May 2010, which saw $862 Bn of share value wiped out in 20 minutes.

Under the rules, trading in a stock would pause across U.S. equity markets for a five-minute period in the event that the stock experiences a 10 percent change
in price over the preceding five minutes. The pause, which would apply to stocks in the S&P 500® Index, would give the markets the opportunity to attract new
trading interest in an affected stock, establish a reasonable market price, and resume trading in a fair and orderly fashion. Initially, these new rules were in
effect on a pilot basis through to 10 December 2010.


SEC approves rules expanding stock-by-stock circuit breakers and clarifying process for breaking erroneous trades2

On 10 September 2010, the Securities and Exchange Commission (SEC) approved new rules submitted by the national securities exchanges and FINRA to
expand a recently-adopted circuit breaker program to include all stocks in the Russell 1000 Index and certain exchange-traded funds. The SEC also approved
new exchange and FINRA rules that clarify the process for breaking erroneous trades.

The circuit breaker pilot program was approved in June in response to the market disruption of 6 May and currently applies to stocks listed in the S&P 500
Index. Trading in a security included in the program is paused for a five-minute period if the security experiences a 10 percent price change over the preceding
five minutes. The pause gives the markets an opportunity to attract new trading interest in an affected stock, establish a reasonable market price, and resume
trading in a fair and orderly fashion. The circuit breaker program was in effect on a pilot basis through to 10 December 2010.




1. Source: Press Release: SEC approves New Stock-by-Stock Circuit Breaker Rules, 2010-98, U.S. Securities and Exchange Commission. Bloomberg.
2. Source: Press Release: SEC Approves Rules Expanding Stock-by-Stock Circuit Breakers and Clarifying Process for Breaking Erroneous Trades, 2010-167, U.S. Securities and
   Exchange Commission.



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Appendix: regulatory update (continued)

The legal and structural strength of ETFs

The Financial Times Alphaville blog posting, “Can ETFs Collapse?” and subsequent media coverage on CNBC explores a theory that BlackRock has
researched and addressed many times in the past. It is our assessment that the blog's conclusions regarding the “unfunded liability” caused by ETF short
selling is incorrect and does not take into account the general mechanics of the ETF structure and marketplace. The primary reasons for their inaccuracies are
as follows:


The legal and structural design of ETFs protects ETF shareholders

All orders for creation and redemption of shares of a fund must be in proper form when placed to ensure that such orders will be settled. The requirements for
proper form are addressed in each prospectus and Statement of Additional Information (SAI) and provide the funds with the right to refuse any order (creation
or redemption) that is deemed to be placed in improper form. Requirements for proper form may be impacted based on size of the order, market and volatility
conditions. Any concern regarding the form of an AP’s order may cause the ETF provider to request additional information from the AP to validate the AP’s
ability to settle an order prior to accepting that order.


Differences in “naked” and bona fide short selling

Naked short selling is when the seller does not borrow or arrange to borrow for the securities in time to make delivery to the buyer within the standard three-
day settlement period. While naked shorting may occur for bona fide market making, it is not legal to sell securities short and fail to deliver shares at the time of
settlement with the purpose of driving down a security’s price.

Bona fide short selling is a necessary part of functioning market making practices. This activity improves secondary market liquidity for an ETF represented
through tighter bid/ask spreads, which benefit all investors seeking to buy or sell a fund.


Counter party risk is minimised in ETFs

The assets in an exchange traded fund are separate and distinct from the assets of the various service providers such as asset managers, index providers,
custodians, etc. Generally, the ETF is not directly subject to the credit risk of a service provider.




Source: BlackRock, The Legal and Structural Strengths of ETFs, September 2010.



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Appendix: regulatory update (continued)

SEC proposal to replace rule 12b-11

The Securities and Exchange Commission (SEC) is proposing a new rule and rule amendments that would replace rule 12b–1 under the Investment Company
Act, the rule that has permitted registered open-end management investment companies (‘‘mutual funds’’ or ‘‘funds’’) to use fund assets to pay for the cost of
promoting sales of fund shares. The new rule and amendments would continue to allow funds to bear promotional costs within certain limits, and would also
preserve the ability of funds to provide investors with alternatives for paying sales charges. Unlike the current rule 12b–1 framework, the proposed rules would
limit the cumulative sales charges each investor pays, no matter how they are imposed. To help investors make better-informed choices when selecting a fund
that imposes sales charges, the Commission is also proposing to require clearer disclosure about all sales charges in fund prospectuses, annual and semi-
annual reports to shareholders, and in investor confirmation statements.

As part of the new regulatory framework, the Commission is proposing to give funds and their underwriters the option of offering classes of shares that could
be sold by dealers with sales charges set at competitively established rates – rates that could better reflect the services offered by the particular intermediary
and the value investors place on those services. For funds electing this option, the proposal would provide relief from restrictions that currently limit retail price
competition for distribution services.

The proposed rule and rule amendments are designed to protect individual investors from paying disproportionate amounts of sales charges in certain share
classes, promote investor understanding of fees, eliminate outdated requirements, provide a more appropriate role for fund directors, and allow greater
competition among funds and intermediaries in setting sales loads and distribution fees generally.


SEC evaluating the use of derivatives by funds2

The following is taken from the SEC’s press release announced on 25 March 2010: The SEC staff is conducting a review to evaluate the use of derivatives by
mutual funds, exchange-traded funds (ETFs) and other investment companies. The review will examine whether and what additional protections are necessary
for those funds under the Investment Company Act of 1940.

Pending the review's completion, the SEC has determined to defer consideration of exemptive requests under the Investment Company Act to permit ETFs
that would make significant investments in derivatives. The staff's decision will affect new and pending exemptive requests from certain actively-managed and
leveraged ETFs that particularly rely on swaps and other derivative instruments to achieve their investment objectives. The deferral does not affect any existing
ETFs or other types of fund applications.

“It's appropriate to engage in a more thorough review of the use of derivatives by ETFs and mutual funds given the questions surrounding the risks associated
with the derivative instruments underlying many funds,” said SEC Chairman Mary Schapiro.

1. Source: Federal Register, Mutual Fund Distribution Fees; Confirmations; Proposed Rule, August 4, 2010, Securities and Exchange Commission.
2. Source: Press Release: SEC Staff Evaluating the Use of Derivatives by Funds, 2010-45, U.S. Securities and Exchange Commission.



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Appendix: regulatory update (continued)

Changes to United States tax law may affect non-United States resident holders of United States ETFs

Funds registered under the Investment Company Act of 1940 and structured for tax purposes as Regulated Investment Companies (RICs) under the U.S. Tax
Code were previously allowed a package of U.S. tax benefits to non-U.S. shareholders (generally called ‘flow-through’ benefits) as a result of the 2004
American Jobs Creation Act. These flow-through benefits generally expired as of 31 December 2009.

The three effected flow-through benefits are:

     • Exemption from U.S. withholding tax (30% or lower treaty rate) on fund distributions where such distributions represent Qualified Interest Income (QII).
       QII is certain fund income derived from interest income on debt of U.S. resident issuers (i.e., obligations issued by Treasury and U.S. corporations).
       This applied to fixed income ETFs.

     • Exemption from U.S. withholding tax on any short-term capital gains included in fund distributions. This applied to fixed income and equity ETFs.

     • Relief from U.S. Estate Tax on fund holdings by non-U.S. resident persons, where the underlying assets would have been exempt from Estate Tax if
       held directly by the non-U.S. resident person.

The purpose of these three flow-through benefits was to allow a non-U.S. resident RIC shareholder the same treatment on a flow-through basis as if the
investments were owned directly by the non-U.S. resident RIC shareholder.

FATCA (foreign account withholding provisions in the HIRE Act)

On 18 March 2010, the United States Congress passed the Hiring Incentives to Restore Employment Act of 2010 (the HIRE Act). This Act contains provisions
still commonly known as the FATCA (the Foreign Account Tax Compliance Act).

The FATCA is a system designed to request financial institutions of all descriptions around the world to identify United States investors – even where they hold
indirectly via non-United States entities – and report details of these to the United States Internal Revenue Service (IRS).




Source: BlackRock, April 2010.



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Appendix: regulatory update (continued)

Changes to United States tax law may affect non-United States resident holders of United States ETFs (continued)

FATCA (foreign account withholding provisions in the HIRE Act) (continued)

This initiated in response to high levels of political concern in the United States with regards to tax evasion, particularly by wealthy individuals.

In order to encourage compliance with this legislation, from 1 January 2013, the United State will impose a 30% withholding tax on the gross sales proceeds
(as well as income) derived by any part of that financial institution from holdings of United States financial assets, unless that institution agrees to enter the
reporting regime.

Funds and fund managers are included in the definition of ‘Foreign Financial Institutions’ (FFIs), therefore the FATCA goes much wider in reach than the
existing ‘Qualified Intermediary’ system, with which it will coexist.

The impacts on the financial world will undoubtedly be complex and potentially far reaching. The basic wording of the HIRE Act still leaves many questions
unanswered and the financial institutions are keenly waiting for draft regulations to be issued by the United States Treasury.

However, it does appear that holdings of United States ETFs by non-United States investors would be subject to the 30% withholding from gross sales
proceeds, where held through a non-United States financial intermediary who does not become FATCA compliant when the regime goes live in 2013.




Source: BlackRock, April 2010.



                                                                  FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 130
2011 ETF ecosystem


                                                                                       ETFs




                                                                                  Regulations

                                         ETPs                Tax                                                              ETNs
                                                                                                                  Fund
                                                                               Manager/provider                  ratings



                                                                                                      Exchange
                                           Consultants         Index                                                   ETF
                                                              provider             Investor                         research:
                                                                                                                      banks,
                                                                                                                     brokers,
                                                                                                 Market             managers
                                                                           Liquidity             maker
                                                                           provider
                                                          Fund
                                                       supermarkets
                                                                                       ETF portals,
                                                ETVs                                    websites,                      ETCs
                                                                                         centres




Source: Global ETF Research and Implementation Strategy Team, BlackRock.



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About us

About BlackRock
   • BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. As at
     31 December 2010, BlackRock's AUM was US$3.561 trillion.
   • BlackRock offers products that span the risk spectrum to meet clients' needs, including active, enhanced and index strategies across markets and asset
     classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares ETPs, and other pooled investment vehicles.
   • BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through
     BlackRock Solutions.
   • Headquartered in New York City, as at 31 December 2010, the firm has approximately 9,100 employees in 25 countries and a major presence in key
     global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit
     BlackRock's website at www.blackrock.com.


About BlackRock’s Global ETF Research and Implementation Strategy Team
   • BlackRock's Global ETF Research and Implementation Strategy Team is regarded as the industry's pre-eminent source of data, analysis and
     perspective on the ETF/ETP marketplace worldwide.
   • While the team's focus is ETFs/ETPs, the team operates independently from the iShares business and provides an independent source of marketplace
     research and advice to clients on the implementation of asset allocation strategies using ETFs and ETPs.
   • Led by Deborah Fuhr, Managing Director, the team produces the 'ETF Landscape' reports, a comprehensive series of weekly, monthly, and quarterly
     ETF market commentaries as well as handbooks covering all ETFs and ETPs from all 169 providers (as at 31 December 2010).
   • The scope of research is unequalled industry-wide, covering the world as well as all major regional markets and ETF genres, with a focus on North
     America, Latin America, Europe, the Middle East, Asia, and Japan.
   • The research produced is a key source of expertise and comment for representatives of global exchanges, regulatory bodies and the financial media.
   • Through the team's timely and comprehensive research and market insight, BlackRock demonstrates its dedication to the industry by building greater
     market understanding of the dynamic ETF vehicle and supporting the efforts of all market participants to realise optimal investment value from the
     ETF approach.




                                                             FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 132
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   • Includes the price tickers, index tickers, annual total expense ratio (TER), dividend policy, fund structure, assets under management
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   • Provides an up-to-date snapshot of the latest key industry trends with a view to helping professional investors make more
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