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  • 1. Investment Strategy Group Calls -- Weekly Update 7/9/12While we closely track investor sentiment, our near-term views on how the markets are likely to perform over the next 12months are chiefly based on a rigorous analysis of macroeconomic fundamentals. To come up with our country analysis, forinstance, we focus on how macroeconomic factors related to growth, corporate sector profitability and risk tend to get pricedin. Countries where the prevailing macroeconomic conditions cannot explain high (expensive) valuations are expected tounderperform, and countries where the opposite is true are expected to outperform.Long-Term Strategic Outlook New This Week: Over- Under- Asset Class weight Neutral weight *Reiteration of Overweight ChinaGlobal Equities X XTreasury Bonds GlossaryCorporate Bonds X Overweight= Potentially increase allocationMunicipals X Underweight = Potentially decrease allocationTIPS X Neutral = Consider benchmark allocationCommodities X Long-Term =Longer than one yearPrecious Metals X Near-Term =12 months or lessThis material represents an assessment of the market environment at a specifictime and is not intended to be a forecast of future events or a guarantee of futureresults. This information should not be relied upon by the reader as research,investment advice or a recommendation regarding the iShares Funds or anysecurity in particular. This information is strictly for illustrative and educationalpurposes and is subject to change.Near-Term Calls Global Region -- Developed Over- Under- Neutral Impacted iShares ETFs Tickers Markets weight weight iShares MSCI ACWI Index Fund; iShares MSCI ACWI Minimum Volatility Index ACWI, ACWV, Fund; iShares S&P 100 Index Fund; iShares S&P Global 100 Index Fund; OEF, IOO,Global Equities X iShares High Dividend Equity Fund; iShares Dow Jones International Select HDV, IDV, Dividend Index Fund; iShares MSCI World Index Fund URTH iShares MSCI EAFE Index Fund; iShares MSCI EAFE Minimum Volatility Index Fund; iShares Dow Jones International Select Dividend Index Fund; iShares EFA, EFAV,Developed Markets X MSCI ACWI ex US Index Fund, iShares MSCI EAFE Small Cap Index Fund IDV, ACWX, SCZ iShares MSCI Australia Index Fund; iShares MSCI Pacific ex-Japan Index EWA, EPP,Australia X Fund; iShares MSCI Australia Small Cap Index Fund; iShares Asia/Pacific EWAS, DVYA Dividend 30 Index Fund iShares MSCI Canada Index Fund, iShares MSCI Canada Small Cap IndexCanada X EWC, EWCS Fund1 InvestmentStrategyGroupWeeklyCalls -7-9-12 external.xls
  • 2. Global Region -- Developed Over- Under- Neutral Impacted iShares ETFs Tickers Markets weight weightFrance X iShares MSCI France Index Fund EWQ iShares MSCI Germany Index Fund; iShares MSCI Germany Small Cap IndexGermany X EWG, EWGS Fund iShares MSCI Hong Kong Index Fund; iShares MSCI Hong Kong Small CapHong Kong X EWH, EWHS Index FundItaly X iShares MSCI Italy Index Fund EWIJapan X iShares MSCI Japan Index Fund; iShares MSCI Japan Small Cap Index Fund EWJ, SCJNetherlands X iShares MSCI Netherlands Investable Market Index Fund EWNNorway X iShares MSCI Norway Capped Investable Market Index Fund ENOR iShares MSCI Singapore Index Fund; iShares MSCI Singapore Small CapSingapore X EWS, EWSS Index FundSpain X iShares MSCI Spain Index Fund EWPSweden X iShares MSCI Sweden Index Fund EWDSwitzerland X iShares MSCI Switzerland Index Fund EWL iShares MSCI United Kingdom Index Fund; iShares MSCI United KingdomUnited Kingdom X EWU, EWUS Small Cap Index Fund iShares MSCI USA Index Fund; iShares Russell 3000 Index Fund; iShares S&P EUSA, IWV,United States X 500 Fund; iShares MSCI USA Minimum Volatility Index Fund IVV, USMV Global Region -- Emerging Over- Under- Neutral Impacted iShares ETFs Tickers Markets weight weight iShares MSCI Emerging Markets Index Fund; iShares MSCI Emerging Markets EEM, EEMV,Emerging Markets X Minimum Volatility Index Fund; iShares Emerging Markets Dividend Index DVYE, EEMS Fund; iShares MSCI Emerging Markets Small Cap Index FundBrazil X iShares MSCI Brazil Index Fund; iShares MSCI Brazil Small Cap Index Fund EWZ, EWZSChile X iShares MSCI Chile Investable Market Index Fund ECHChina X iShares MSCI China Index Fund; iShares MSCI China Small Cap Index Fund MCHI, ECNS iShares S&P India Nifty 50 Index Fund; iShares MSCI India Index Fund; iShares MSCI India Small Cap Index Fund INDY, INDA,India X SMINIndonesia X iShares MSCI Indonesia Investable Market Index Fund EIDO iShares S&P Latin America 40 Index Fund; iShares MSCI Emerging MarketsLatin America ILF, EEML X Latin America Index FundMexico X iShares MSCI Mexico Investable Market Index Fund EWWRussia X iShares MSCI Russia Capped Index Fund ERUSSouth Africa X iShares MSCI South Africa Index Fund EZASouth Korea X iShares MSCI South Korea Index Fund EWYTaiwan X iShares MSCI Taiwan Index Fund EWTTurkey X iShares MSCI Turkey Investable Market Index Fund TUR2 InvestmentStrategyGroupWeeklyCalls -7-9-12 external.xls
  • 3. Over- Under- Global Sector Neutral Impacted iShares ETFs Tickers weight weightConsumer Discretionary X N/A N/A iShares Dow Jones U.S. Consumer Goods Sector Index Fund; iShares S&PConsumer Staples X Global Consumer Staples Sector Index Fund; iShares MSCI ACWI ex US IYK, KXI, AXSL Consumer Staples Sector Index Fund iShares S&P Global Energy Sector Index Fund; iShares MSCI Global Energy Producers Fund; iShares MSCI Emerging Markets Energy Sector Capped IXC, FILL,Energy X Index Fund; iShares MSCI ACWI ex US Energy Sector Index Fund EMEY, AXENEuropean Banks X iShares MSCI Europe Financials Sector Index Fund EUFN iShares Dow Jones U.S. Financial Sector Index Fund; iShares S&P Global Financials Sector Index Fund; iShares MSCI ACWI ex US Financials Sector Index Fund; iShares MSCI Emerging Markets Financials Sector Index Fund; IYF, IXG, iShares MSCI Europe Financials Sector Index Fund; iShares MSCI Far East AXFN, EMFN,Financials X Financials Sector Index Fund; iShares Dow Jones U.S. Regional Banks Index EUFN, FEFN, Fund IAT iShares S&P Global Healthcare Sector Index Fund; iShares S&P Global Healthcare Sector Index Fund; iShares MSCI ACWI ex US Health Care SectorHealthcare X Index Fund IYH, IXJ, AXHE iShares Dow Jones U.S. Industrial Sector Index Fund; iShares S&P GlobalIndustrials X Industrials Sector Index Fund; iShares MSCI ACWI ex US Industrials Sector IYJ, EXI, AXID Index Fund iShares S&P Global Technology Sector Index Fund; iShares MSCI ACWI ex US Information Technology Sector Index Fund; iShares MSCI All Country Asia IXN, AXIT, Information Technology Index Fund; iShares Dow Jones U.S. TechnologyInformation Technology X AAIT, IYW, Sector Index Fund; iShares PHLX SOX Semiconductor Sector Index Fund SOXX iShares Dow Jones U.S. Basic Materials Sector Index Fund; iShares S&P Global Materials Sector Index Fund; iShares MSCI ACWI ex US Materials IYM, MXI, Sector Index Fund; iShares MSCI Emerging Markets Materials Sector Index AXMT, EMMT,Materials X Fund; iShares MSCI Global Gold Miners Fund; iShares MSCI Global Select RING, PICK, Metals & Mining Producers Fund; iShares MSCI Global Silver Miners Fund SLVP iShares Cohen & Steers Realty Majors Index Fund; iShares Dow Jones U.S.REITS X ICF, IYR Real Estate Index Fund iShares S&P Global Telecommunications Sector Index Fund; iShares MSCI ACWI ex US Telecommunication Services Sector Index Fund; iShares Dow Jones U.S. Telecommunications Sector Index FundTelecommunications X IXP, AXTE, IYZUS Industrials X iShares Dow Jones U.S. Industrial Sector Index Fund IYJUS Regional Banks X iShares Dow Jones U.S. Regional Banks Index Fund IATUS Retail X N/A N/AUS Technology X iShares Dow Jones U.S. Technology Sector Index Fund IYWUS Utilities X iShares Dow Jones U.S. Utilities Sector Index Fund IDU iShares S&P Global Utilities Sector Index Fund; iShares MSCI ACWI ex USUtilities X Utilities Sector Index Fund; iShares Dow Jones International Select Dividend JXI, AXUT, IDV Index Fund3 InvestmentStrategyGroupWeeklyCalls -7-9-12 external.xls
  • 4. Over- Under- Fixed Income Sector Neutral Impacted iShares ETFs Tickers weight weight g g g g g Markets Local Currency Bond Fund; iShares Emerging Markets Corporate Bond Fund; iShares Emerging Markets High Yield Bond Fund EMB, LEMB,Emerging Markets X CEMB, EMHY iShares iBoxx $ High Yield Corporate Bond Fund; iShares Global ex USD High Yield Corporate Bond Fund; iShares Global High Yield Corporate Bond Fund; iShares Baa - Ba Rated Corporate Bond Fund; iShares B - Ca Rated Corporate HYG, HYXU, Bond FundHigh-Yield Credit X GHYG, QLTB, QLTC iShares iBoxx $ Investment Grade Corporate Bond Fund; iShares Floating Rate Note Fund; iShares Aaa - A Rated Corporate Bond Fund; iShares Financials Sector Bond Fund; iShares Industrials Sector Bond Fund; iShares Utilities Sector Bond Fund; iShares Barclays 1-3 Year Credit Bond Fund; iShares LQD, FLOT, Barclays Intermediate Credit Bond Fund; iShares Barclays Credit Bond Fund; QLTA, MONY,Investment Grade Credit X iShares iShares 10+ Year Credit Bond Fund; iShares Aaa - A Rated Corporate ENGN, AMPS, Bond Fund CSJ, CIU, CFT, CLY, QLTAMortgage-Backed Securities X iShares Barclays MBS Bond Fund; iShares Barclays GNMA Bond Fund MBB, GNMA iShares S&P Short Term National AMT-Free Municipal Bond Fund; iSharesMunicipals X SUB, MUB S&P National AMT-Free Municipal Bond Fund iShares S&P/Citigroup 1-3 Year International Treasury Bond Fund; iSharesNon-US Developed Markets X ISHG, IGOV S&P/Citigroup International Treasury Bond Fund iShares Barclays 0-5 Year TIPS Bond Fund; iShares Barclays TIPS Bond Fund; STIP, TIP,TIPS/Global Inflation-Linked X iShares Global Inflation-Linked Bond Fund; iShares International Inflation- GTIP, ITIP Linked Bond Fund iShares Barclays 1-3 Year Treasury Bond Fund; iShares Barclays 3-7 Year Treasury Bond Fund; iShares Barclays 7-10 Year Treasury Bond Fund; iShares Barclays 10-20 Year Treasury Bond Fund; iShares Barclays 20+ Year Treasury SHY, IEI, IEF,US Treasuries X Bond Fund; iShares Barclays U.S. Treasury Bond Fund; iShares Barclays Short TLH, TLT, Treasury Bond Fund GOVT, SHV Over- Under- Global Style/Other Neutral Impacted iShares ETFs Tickers weight weight iShares S&P 100 Index Fund; iShares S&P Global 100 Index Fund; iShares High Dividend Equity Fund; iShares Dow Jones Select Dividend Index Fund; OEF, IOO,Global Mega Caps X iShares Dow Jones International Select Dividend Index Fund HDV, DVY, IDV iShares Russell 2000 Index FundSmall Caps X IWM iShares S&P U.S. Preferred Stock Index FundPreferred X PFFThis material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This informationshould not be relied upon by the reader as research, investment advice or a recommendation regarding the iShares Funds or any security in particular. This information is strictly for illustrativeand educational purposes and is subject to change. This information does not represent the actual current, past or future holdings or portfolio of any BlackRock client.4 InvestmentStrategyGroupWeeklyCalls -7-9-12 external.xls
  • 5. Carefully consider the iShares Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can befound in the Funds’ prospectuses, which may be obtained by calling 1-800-iShares (1-800-474-2737) or by visiting www.iShares.com. Read theprospectuses carefully before investing.Investing involves risk, including possible loss of principal.In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, fromdifferences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related tothe same factors as well as increased volatility and lower trading volume. Narrowly focused investments, securities focusing on a single country and investments insmaller companies may be subject to higher volatility. Bonds and bond funds will decrease in value as interest rates rise. A portion of a municipal bond fund’s may besubject to federal or state income taxes or the alternative minimum tax. Capital gains, if any, are subject to capital gains tax. High-yield securities may be more volatile,be subject to greater levels of credit or default risk, and may be less liquid and more difficult to sell at an advantageous time or price to value than higher-ratedsecurities of similar maturity.Mortgage-backed securities are subject to prepayment and extension risk and therefore react differently to changes in interest rates than other bonds. Smallmovements in interest rates may quickly and significantly reduce the value of certain mortgage-backed securities. TIPS can provide investors a hedge against inflation,as the inflation adjustment feature helps preserve the purchasing power of the investment. Because of this inflation adjustment feature, inflation protected bondstypically have lower yields than conventional fixed rate bonds and will likely decline in price during periods of deflation, which could result in losses. Governmentbacking applies only to government issued securities, not iShares exchange traded funds. An investment in the Fund(s) is not insured or guaranteed by the FederalDeposit Insurance Corporation or any other government agency.The iShares Funds registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 (“Funds”) are distributed byBlackRock Investments LLC (together with its affiliates, "BlackRock").The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., Dow Jones Trademark Holdings, LLC,European Public Real Estate Association (“EPRA® ”), FTSE International Limited (“FTSE”), JPMorgan Chase & Co., MSCI Inc., Marketit Indices Limited, Morningstar,Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell Investment Groupor Standard & Poor’s, nor are they sponsored, endorsed or issued by Barclays Capital Inc. None of these companies make any representation regarding theadvisability of investing in the Funds. BlackRock is not affiliated with the companies listed above.This material is solely for educational purposes and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any shares of any fund (nor shallany such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of thatjurisdiction.In Latin America, for Institutional and Professional Investors Only (Not for public Distribution):This material is solely for educational purposes and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any shares of any fund (nor shallany such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of thatjurisdiction. It is possible that some or all of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile,Colombia, Mexico, Peru, Uruguay or any other securities regulator in any Latin American country, and thus, might not be publicly offered within any such country. Thesecurities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to thegeneral public in Latin America.©2011, 2012 BlackRock. All rights reserved. iShares® and BlackRock® are registered trademarks of BlackRock. All other trademarks, servicemarks or registeredtrademarks are the property of their respective owners. iS-7136-0412Not FDIC Insured • No Bank Guarantee • May Lose Value5 InvestmentStrategyGroupWeeklyCalls -7-9-12 external.xls