1. The document provides an overview of iShares exchange traded funds (ETFs), including BlackRock's growth in the ETF market, what ETFs are and their benefits, key areas to consider when selecting ETFs, and iShares' product range. 2. iShares is the leading ETF provider globally with over $1 trillion in assets under management and 780 ETFs listed. ETFs provide diversified exposure to indexes with the trading flexibility of stocks at a low cost. 3. The document discusses factors to consider when selecting ETFs like the underlying index, domicile and registration, and structure and risks. It also outlines the evolution of the large and

1. iShares
Exchange Traded Funds
Maarja Vaikla
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2. Agenda
 BlackRock & ETF Growth Story
 Intro to ETFs – What is an ETF and Why ETFs?
 Key areas of consideration for ETF selection
 Growth and evolution of the ETF market
 Products: iShares ETFs on the Nordnet platform
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3. BlackRock & ETF Growth Story
• iShares is the leading ETF provider in the world
• iShares has over $1 trillion in assets under management
• iShares has 780 ETFs listed globally, more than 200 ETFs registered in Norway
Source: BlackRock ETP Landscape, August 2016
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4. US Domiciled Funds: AUM Split by ETFs,
Index and Active Funds
European Domiciled Funds: AUM Split by
ETFs, Index and Active Funds
1. Industry overview
The growth of index investing
4
Source: Morningstar, as of 30 June 2016.
Note: Fund categories include open-end mutual funds (excluding money market funds and fund of funds) and exchange traded funds (ETFs) domiciled globally, offered to both retail and
institutional investors.
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5. Intro to ETFs – What is an ETF and Why ETFs?
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6. Structure of an ETF
ETFs seek to deliver the performance of a chosen index.
They typically do this by holding the index constituent stocks at their index weights, or a
representative sample (This is called physical replication)
References to the names and logos of each company mentioned is merely for explaining the investment strategy and should not be constructed as investment advice or investment
recommendation of those companies.
INDEX
Fund
manager
purchases
securities
to
represent
the index
Exchange
Traded
Fund
(eg. FTSE 100, MSCI World,
S&P 500, OBX25)
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7. What is an ETF? Two great investment ideas brought together
DiversifiedTradable
during the
day
Diversified
funds that
trade like
stocks
ETFs
Stock
Like a
Mutual Fund
Like a stock
 Trading flexibility intraday on the exchange
 Options frequently available
Like an index fund
 Constructed to track benchmark indexes
 Low expense ratios
What sets ETFs apart?
 The creation/redemption process enables the
unique benefits of ETFs such as liquid access
Familiar ground…best of both worlds Two great investment ideas brought together
With short sales, an investor faces the potential for unlimited losses as the security's price rises. There can be no assurance that an active trading market for shares of an ETF will
develop or be maintained. Transactions in shares of the iShares Funds will result in brokerage commissions and will generate tax consequences. iShares Funds are obliged to
distribute portfolio gains to shareholders. Diversification may not protect against market risk or loss of principal.
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8. An ETF is an index tracker
Source: BlackRock – www.ishares.no, Net Total Return, 5 year period, September 2011 – September 2016
Past performance is not a guide to current or future performance. The value of investments and the income from them can
fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
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9. Why ETFs?
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ETFs are index funds listed and traded like a stock on major stock exchanges globally.
Like an
index fund
Like
a stock
ETFs
 What you see is what you get
 Full transparency on constituents, performance versus benchmark and costs on a daily basis. Everything
published on our website.
 Total Expense Ratio (TER) start from 0.07% for plain vanilla broad equity exposures*
 ETFs seek to offer a cost-effective route to diversified market exposure
 ETFs offer immediate exposure to a basket or group of securities for diversification through a single trade
 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
 ETFs, bought on exchange, offer a way to access both diversified broad market and niche exposures in one
trade
ETFs offer two sources of liquidity:
 Traditional liquidity measured by secondary market trading volume
 The liquidity of the underlying assets via the creation and redemption process**
Transparency
Cost-effective
Diversification
Flexibility
Additional
liquidity
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*iShares S&P500 UCITS ETF
** The mechanism used to ensure that the price of the ETF shares remains linked to the price of the underlying holdings is called the creation/redemption
process.

10. The building blocks : Complete range of iShares ETFs
Corporate
Asset Backed
Securities
BasketsProperty
Short – term
Treasuries
Developed
Markets
Global
Global
Government
Index Linked Infrastructure
Emerging
Markets
Large, Mid,
Small - Cap
Growth, Value,
Dividend,Min Vol
Sectors /
Industry Groups
Domestic
Government
Equities
Fixed
Income
Alternatives Commodities
Cash
Equivalents
Maturity
Buckets
Single
Regional,
Country
Investors can expand their
portfolios beyond traditional
investments
Extensive range of index fund
building blocks – across all
asset classes, regions and
markets Private Equity
Emerging
Markets
Constructing a Low Cost, Diversified Portfolio with Index Building Blocks
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11. Key areas of consideration for ETF selection
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12. 12
Some key areas of consideration for ETF selection
Overview
1.
Index
Selection
2. Domicile/
Registration/
Listing
3.Structure and
Risk
Various dimensions in benchmark selection
Understand the ETF structure and structural risk
Being aware of different domiciles and product listings
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13. 13
 Several tracking instruments are available to investors via stock exchanges: Exchange Traded Funds
(ETFs) are often traded side-by-side with Exchange Traded Notes (ETNs), Exchange Traded
Commodities (ETCs) and Exchange Traded Instruments (ETIs)
 Each of these products implies different levels of complexity and carries different structural risks
Structure and risk
The alphabet soup
 UCITS-compliant
 Possible counterparty risk among others
 Possible additional risks dependent on
an individual’s circumstances
 Not UCITS-compliant
 Non-fund debt structures
 Effectively unregulated
 Possible counterparty risk among
others
 Possible additional risks
dependent on an individual’s
circumstances
 Neither notes
nor funds
 Non UCITS-compliant
 Possible additional
risks dependent on an
individual’s
circumstances
Exchange Traded Products (ETPs)
Exchange Traded Funds (ETFs)
 Physically replicating ETFs:
– Fully replicating
– Optimised/partially replicating
 Derivative replicating ETFs
Exchange Traded Notes
(ETNs)/Exchange Traded
Commodities (ETCs)
Exchange Traded
Instruments (ETIs)
Source: BlackRock. For illustrative purposes only.
1
2
3
4
5
6
7
8
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14. Growth and evolution of the ETF market
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15. Growth and evolution of the ETF Market -
2016 a record year for global and European ETFs
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Global ETPs
European ETPs
Distribution of Most Recent Assets, US$ bn
Distribution of Most Recent Assets, US$ bn
Source: BlackRock Global ETP Landscape, July 2016.
-
1,000
2,000
3,000
4,000
5,000
-
500
1,000
1,500
2,000
2,500
3,000
3,500
# of ProductsAssets, US$ bn
ETF Assets Other ETP Assets
# ETFs # Other ETPs
Equity
2,520.4
Fixed
Income
630.2
Commodity
138.9
Alternative
18.2
Currency
4.4
-
200
400
600
800
1,000
1,200
1,400
1,600
-
100
200
300
400
500
600
# of ProductsAssets, US$ bn
ETF Assets Other ETP Assets
# ETFs # Other ETPs
Equity
351.5
Fixed
Income
151.3
Commodity
50.0
Alternative
1.5
Currency
0.4
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16. iShares EMEA product range
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17. iShares EMEA product range
Overview
Core & Precision
Broad Markets
Strategies
Equity Fixed Income
CreditGov.t
Sovereign
Inflation
Commodity
Emerging
Markets
High Yield
IG Corp
Covered
USD
Local
Broad
Market
Developed Markets
Emerging Markets
Sectors
Source: BlackRock, as at September 2016
Income
Global, Regional, Country
Size, Style, Thematic
Currency Hedged
Global, Regional, Country
Broad
Aggregate
EUR, USD,
Currency Hedged
Corp
Interest Rate
Hedged
Short Duration
203 EMEA iShares
registered in Norway
All UCITS
2 Domiciles: Irish (IE),
German (DE)
138 Equity, 64 Fixed
Income, 1 Commodity
Distributing, Accumulating
Maturity
Buckets
202 Physical Replication &
1 Synthetic Replication
Factors
Sustainability
Crossover
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18. Regulatory Information
BlackRock Advisors (UK) Limited, which is authorised and regulated by the Financial Conduct Authority ('FCA'), registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England,
Tel +44 (0)20 7743 3000. For your protection, calls are usually recorded.
Restricted Investors
This document is not, and under no circumstances is to be construed as an advertisement or any other step in furtherance of a public offering of shares in the United States or Canada.
This document is not aimed at persons who are resident in the United States, Canada or any province or territory thereof, where the companies/securities are not authorised or registered
for distribution and where no prospectus has been filed with any securities commission or regulatory authority. The companies/securities may not be acquired or owned by, or acquired with
the assets of, an ERISA Plan.
Risk Warnings
Investment in the products mentioned in this document may not be suitable for all investors. Past performance is not a guide to future performance and should not be the sole factor of
consideration when selecting a product. The price of the investments may go up or down and the investor may not get back the amount invested. Your income is not fixed and may
fluctuate. The value of investments involving exposure to foreign currencies can be affected by exchange rate movements. We remind you that the levels and bases of, and reliefs from,
taxation can change.
BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. The data displayed provides summary information, investment should be
made on the basis of the relevant Prospectus which is available from your Broker, Financial Adviser or BlackRock Advisors (UK) Limited. We recommend you seek independent
professional advice prior to investing.
In respect of the products mentioned this document is intended for information purposes only and does not constitute investment advice or an offer to sell or a solicitation of an offer to buy
the securities described within. This document may not be distributed without authorisation from the manager.
© 2016 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and the stylized i logo
are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.
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Disclaimer
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