FOR PROFESSIONAL INVESTORS. NOT FOR US ......• tracking fund and 175 bps for the average active...

Industry Review from BlackRockNovember 2009

ETF LandscapeFOR PROFESSIONAL INVESTORS. NOT FOR US INVESTORS.

ETF Landscape Industry Review November 2009

This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 1

TABLE OF CONTENTS ETF Background Page 02 Current ETF and ETP Landscape Page 03 Global ETF and ETP asset growth Page 06 Global ETF and ETP providers Page 11 Global mutual fund assets and flows Page 17 Global ETF fund flows Page 18 ETFs in Europe Page 19 European listed ETF and ETP asset growth 0 European ETF and ETP providers Page 21 Top 10 ETFs by AUM, trading volume and change in AUM Page 22 European mutual fund assets and flows Page 24 European ETF fund flows Page 25 Average expenses of ETFs versus open-end mutual funds Page 26 European exchange ETF statistics Page 26 ETFs in North America Page 28 US listed ETF and ETP asset growth Page 29 US ETF and ETP providers Page 30 Top 10 ETFs by AUM, trading volume and change in AUM Page 31 US mutual fund assets and flows Page 32 US ETF fund flows Page 33 Average expenses of ETFs versus open-end mutual funds Page 34 US exchange turnover Page 36 Short Interest Page 37 ETFs in Asia Pacific (ex-Japan) Page 38 Asia Pacific (ex-Japan) listed ETF and ETP asset growth Page 39 Asia Pacific (ex-Japan) ETF providers Page 40 Top 10 ETFs by AUM, trading volume and change in AUM Page 41 Asia Pacific (ex-Japan) mutual fund and ETF fund flows Page 42 ETFs in Japan Page 43 Japanese listed ETF and ETP asset growth Page 44 ETF providers in Japan Page 44 Top 5 ETFs by AUM and trading volume Page 45 Japanese mutual fund and ETF fund flows Page 46 ETFs in the Middle East and Africa Page 47 ETF providers in the Middle East and Africa Page 47 Middle East and Africa listed ETF and ETP asset growth Page 48 ETFs in Latin America Page 49 ETF Providers in Latin America Page 49 Latin American ETF and mutual fund asset growth Page 50 Implementing Asset Allocation with ETFs Page 51 Macro asset allocation and Index performance Page 54 Core/satellite applications Page 56 How can ETFs be used and why use ETFs? Page 57 The ETF toolbox Page 58 Commodity index comparison Page 62 ETF Launches 2009 Page 66 ETP Launches 2009 Page 69 Planned New ETFs Page 70 Planned New ETPs Page 77

GLOBAL ETF RESEARCH AND IMPLEMENTATION STRATEGY TEAM Deborah Fuhr Managing Director Global Head of ETF Research and Implementation Strategy +44 20 7668 4276 [email protected]

Shane Kelly Investment Strategist ETF Research and Implementation Strategy +44 20 7668 8426 [email protected]



Source: Various ETF Providers, Exchanges, ETF Research and Implementation Strategy Team, BlackRock.

ETF Landscape – Industry Review is BlackRock’s comprehensive monthly market commentary, which covers Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) across the globe. ETFs are open-end index funds that provide daily portfolio transparency, are listed and traded on exchanges like stocks on a secondary basis as well as utilising a unique creation and redemption process for primary transactions. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use a mutual fund 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. This document includes rankings of ETF and ETP providers, ETFs, index providers and exchanges globally, in the United States, Europe, Japan, Asia, Latin America, the Middle East and Africa, as well as by country. This commentary should not be regarded as a research report0F

1.

ETF Background ETFs are one of the more innovative new financial products to emerge from the financial industry in the last two decades. Since the launch of the first ETF in the United States in 1993, ETFs have opened a new panorama of investment opportunities. Essentially, ETFs are open-end index funds that are listed and traded on exchanges like stocks. They allow investors to gain broad exposure to stock markets of different countries, emerging markets, sectors and styles as well as fixed income and commodity indices with relative ease on a real-time basis and at a lower cost than many other forms of investing. ETFs, unlike traditional funds, are transparent as the managers provide the ETF portfolio composition to the market on a daily basis. ETFs are bought on a commission basis, just like many other shares. Generally: 1) they can be purchased on margin and are lendable, 2) they can be bought and sold at market, limit or as stop orders, and 3) they do not have any sales loads, although they do have annual expenses that range from 0.05% to 1.60%1F

2. ETFs have some of the lowest expense ratios among registered investment products. The annual expenses are usually deducted from dividend payments, which are typically paid on a semi-annual basis.

1 Certain terms used in this publication may differ from those applied by other industry participants. 2 As at 31 May 2009

ETFs possess characteristics that make them an alternative to futures and portfolios of shares for investors who are seeking to gain or reduce country, regional, sector and style as well as fixed income and commodity exposure. ETFs are index funds and not synthetic derivatives. They trade and settle like single shares and are typically backed by baskets of securities designed to track indices. On most exchanges ETFs can be used to go long and short2F

3. ETFs offer diversified exposure and generally have lower expense ratios than traditional active and index funds. ETFs may prove as liquid as the underlying basket of securities as they have a unique daily creation and redemption process. The ability to continually create or redeem shares helps keep an ETF’s market price in line with its underlying Net Asset Value (NAV). A key feature that distinguishes ETFs is that the shares are created by Authorised Participants (APs) or creation/redemption brokers in block-size ‘creation units’. The creator of ETF shares typically deposits into the applicable fund a portfolio of securities closely approximating the holdings of the index in exchange for an institutional block of ETF shares (usually 50,000). Similarly, they can only be redeemed in redemption units, mainly ‘in-kind’ for a portfolio of securities held by the fund. The redemption and creation processes are very similar. A key benefit of the in-kind distribution of securities is that it does not create a tax event in the United States, which could occur if the fund sold securities and delivered cash. This is a special advantage of ETFs versus an open-end mutual fund, which might have to sell securities to meet cash redemptions. In the United States the term ETFs is increasingly being used to cover a broad set of products with dissimilar characteristics from those described above including products such as closed-end funds, Holding Company Depository Receipts (HOLDRS) and notes. These product structures do not fall within the Securities and Exchange Commission’s (SEC) definition of an ETF, which is posted on the Internet: “Exchange-traded funds, or ETFs, are investment companies that are legally classified as open-end companies or Unit Investment Trusts (UITs), but that differ from traditional open-end companies and UITs in several respects: These differences can be found at: www.sec.gov/answers/etf.htm.” Many institutional investors, intermediaries, family offices and self-directed retail investors have embraced the idea that ETFs are tools that can help them to equitise cash, establish a core holding, use for Tactical Asset Allocation (TAA) and which can be a substitute for a program trade or using futures. They can be used to gain exposure to equity sectors, styles, country, regional, international and emerging market indices, government, corporate bond, money market indices as well as commodity indices at real-time prices during the trading day.

3 With short sales, you risk paying more for a security than you received from the sale.



Current ETF and ETP Landscape, as at end October 2009 Global

• Global ETF assets have hit an all time high of US$942 Bn at the end of October 2009 – 0.9% above the previous all time high of US$933 Bn set in Q3 2009.

• At the end of October 2009 the Global ETF industry had 1,859 ETFs with 3,327 listings, assets of $941.85 Bn, from 97 providers on 40 exchanges around the world.

• YTD assets have risen by 32.5% which is more than the 20.2% rise in the MSCI World Index in US dollar terms.

• YTD the number of ETFs increased by 16.8% with 337 new ETFs launched, while 73 ETFs were closed.

• In 2009 the number of ETFs listed in Europe has surpassed the US with 801 ETFs listed in Europe, compared to 732 in the US.

• There are currently plans to launch 805 new ETFs.

• YTD the number of exchanges with official listings decreased by three to 40.

• YTD the average daily trading volume in US dollars decreased by 7.7% to US$74.4 Bn.

• MSCI ranks first in terms of ETF AUM tied to their benchmarks with assets of US$222.66 Bn and 267 ETFs, while Standard & Poor’s (S&P) ranks second with US$218.83 Bn and 229 ETFs, followed by Barclays Capital in third with US$81.33 Bn and 62 ETFs.

• Globally, iShares is the largest ETF provider in terms of both number of products, 405 ETFs, and assets of US$455.72 Bn, reflecting 48.4% market share; State Street Global Advisors is second with 106 products and US$137.08 Bn, 14.6% market share; followed by Vanguard with 40 products and assets of US$80.76 Bn and 8.6% market share at the end of October 2009.

• Globally, net sales of mutual funds (excluding ETFs) were US$13.3 Bn, while net sales of ETFs were US$93.8 Bn during the first nine months of 2009 according to Strategic Insight.

• Over the five year market cycle from mid-year 2004 to mid-year 2009, S&P 500 outperformed 63.0% of actively managed large-cap funds, S&P MidCap 400 outperformed 73.5% of mid-cap funds and S&P SmallCap 600 outperformed 67.7% of small-cap funds. The script was similar for non-US equity funds, in which indices outperformed a majority of actively managed non-US equity funds over the past five years.3F

1

• Additionally, there were 569 other Exchange Traded Products (ETPs) with assets of US$137.70 Bn from 40 providers on 19 exchanges.

• Combined, there were 2,428 products with 4,166 listings, assets of US$1,081.54 Bn from 124 providers on 43 exchanges around the world at the end of October 2009.

1 Source: Standard & Poor's Indices Versus Active Funds Scorecard, Midyear 2009.

Europe

• European ETF assets have hit an all time high of US$206 Bn at the end of October 2009 which is 0.6% above the previous all time high of US$204 Bn set in Q3 2009 and 28.6% above the high of US$160 Bn recorded in July 2008.

• At the end of October 2009 the European ETF industry had 801 ETFs with 2,001 listings, assets of $205.54 Bn, from 32 providers on 18 exchanges.

• YTD assets have risen by 43.2%, which is greater than the 27.4% rise in the MSCI Europe Index in US dollar terms.

• YTD the number of ETFs increased by 44.2% with 193 new ETFs launched.

• YTD the number of exchanges with official listings decreased by three to 18.

• YTD the average daily trading volume in US dollars has increased by 34.0% to US$3.0 Bn. 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).

• The average Total Expense Ratio (TER) for equity ETFs in Europe is 37 bps versus 87 bps per annum for the average equity index tracking fund and 175 bps for the average active equity fund.4F

2

• In Europe net sales of mutual funds (excluding ETFs) were US$177.7 Bn while net sales of ETFs domiciled in Europe were US$28.6 Bn during the first nine months of 2009 according to Lipper FMI.

• Additionally, there were 150 other Exchange Traded Products (ETPs) with assets of US$17.96 Bn from five providers on six exchanges.

• Combined, there were 951 products with assets of US$223.51 Bn from 33 providers on 18 exchanges in Europe.

United States

• US ETF assets have hit an all time high of US$640 Bn at the end of October 2009 which tops the previous all time high of US$631 Bn set in Q3 2009.

• At the end of October 2009 the US ETF industry had 732 ETFs, assets of $639.58 Bn, from 25 providers on three exchanges.

• YTD assets have risen by 28.7%, which is more than the 15.3% rise in the MSCI US Index in US dollar terms.

• YTD the number of ETFs increased by 4.9% with 76 new ETFs launched, while 42 ETFs were delisted.

• YTD the average daily trading volume in US dollars has decreased by 10.3% to US$69.1 Bn.

• The average Total Expense Ratio (TER) for equity ETFs in the US is 32 bps versus 78 bps per annum for the average equity index tracking fund and 141 bps for the average active equity fund.2

• In the US net sales of mutual funds (excluding ETFs) were minus US$131.5 Bn, while net sales of ETFs domiciled in the US were positive US$64.0 Bn in the first nine months of 2009 according to Strategic Insight.

• Additionally, there were 137 other Exchange Traded Products (ETPs) with assets of US$78.86 Bn from 18 providers on one exchange.

• Combined, there were 869 products with assets of US$718.44 Bn from 39 providers on three exchanges in the US.

2 Source: Morningstar (March 2009).

Source: Various ETF Providers, Exchanges, ETF Research and Implementation Strategy Team, BlackRock.



FINRA Regulatory Notice 09-31 FINRA, the Financial Industry Regulatory Authority which regulates all securities firms doing business in the US, 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 1 December 2008 and 30 April 2009: ! The Dow Jones U.S. Oil & Gas Index gained 2%, while an ETF

seeking to deliver twice the index's daily return fell 6% and the related ETF seeking to deliver twice the inverse of the index's daily return fell 26%.

! An ETF seeking to deliver three times the daily return of the

Russell 1000 Financial Services Index fell 53% while the index actually gained around 8%. The related ETF seeking to deliver three times the inverse of the index's daily return declined by 90% 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%; but in the more volatile scenario the inverse ETF loses 1.82%. 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. UK Retail Distribution Review (RDR) The use of ETFs is likely to increase significantly by Independent Financial Advisers (IFAs) in the UK based on the regulatory proposals outlined on 25 November 2008 in the Retail Distribution Review (RDR) feedback statement by the UK’s Financial Services Authority (FSA). The proposals outline the changes the FSA plans to make for the retail investment market to establish a new level of consumer trust and confidence by distinguishing between independent advice and sales advice to create better clarity for consumers. There are three main measures 1) improve the clarity for consumers of the characteristics of different service types and the distinctions between them, 2) raise professional standards and 3) reduce the

conflicts of interest inherent in remuneration practices and improve transparency of the cost for all advisory services. Clarity of services ! Providing greater clarity to consumers by distinguishing between

independent advice and sales advice. ! Independent advice will be truly independent. With advisers

providing recommendations that consider all the products and providers that could meet a customer’s needs. All independent advisers, not just those advising on packaged products, will need to provide unbiased, unrestricted advice that targets the best outcome for each customer, based on a comprehensive and fair analysis of relevant markets.

! Sales advice will be where firms recommend the products of one

or a limited range of providers, and make this clear to customers. Remuneration ! The FSA will modernise the way that advice is 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 is clear to consumers whenever it is given.

! For consumers to understand clearly the different services

provided and to recognise the value of advice, the FSA will require separate disclosure of the costs of advisory services from product costs for both independent and non-independent advisory firms.

These changes will be significant as today many IFAs are ‘multi-tied’ and ‘tied’, which respectively describe those selling products from a limited range of providers, and those selling only the products of one provider, such as in a bank. Although there is a further six-month consultation period, to iron out some practical application issues, there is an expectation that financial firms will start to implement changes soon. The deadline for industry compliance is 31 December 2012. In the US, 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 UK the use of ETFs among IFAs is very limited as they are typically multi-tied and 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. ETFs may afford investors two forms of liquidity. The first is through trading the shares on a secondary basis on the exchange. The second is on a primary basis via the unique ‘creation’ process, whereby an AP purchases the underlying basket of securities in the local market and deposits the basket ‘in kind’ into the ETF, creating more shares in that ETF. The unique daily creation/redemption process means that the liquidity in the ETF is driven by the liquidity in the underlying securities. ETFs tend to trade at, or close to, their underlying NAVs. This is because there are arbitrageurs waiting to take advantage of a significant premium or discount relative to the underlying index. An arbitrageur will buy/sell the ETF and place an offsetting buy/sell transaction in the underlying basket of component securities. Divergence in the performance of an ETF, relative to the index it tracks, is possible. Differences tend to be caused by fund fees and expenses, tracking error or other market forces, rebalancing due to corporate actions and index changes and the dividend reinvestment policy of the fund. The motivations for using ETFs have expanded, including the ever-relevant cost advantage and broad market access, as well as themes that have emerged over the past year. Examples of strategies being



implemented include managing asset allocation, taking tactical positions and increasing diversification. Investors are also using ETFs to take negative positions in asset classes, either to remove existing unwanted exposure or to express a negative view. This expansion has been fuelled by the increase in the range of asset classes accessible through ETFs. Moreover, the introduction of ETFs covering emerging markets, commodities and property has allowed investors to access some of the best performing asset classes of the past few years. On top of greater asset breadth, the range of instruments has also grown. This expansion in usage, breadth and product flexibility has driven a steady growth in the use of ETFs over the past decade. The growth in beta investments in recent years has been driven by a number of factors. While market conditions have had a noteworthy influence, some other key factors are driving a more permanent shift towards beta, including: ! Access: beta products are providing access to an expanding range

of market and asset classes, and through a much wider range of instruments.

! Diversification: increasingly investors are widening the scope of their investments and looking for exposure to new asset classes and markets.

! The changing role of beta: as investors are altering the way they view their investment objectives, alpha and beta decisions are being combined in different ways.

The range of beta tools available to investors has also grown with traditional index funds, index futures, OTC derivatives and ETFs. ETFs share many characteristics with traditional index funds. Importantly, they also offer intra-day liquidity and enhanced flexibility, allowing investors to take both long and short positions. Source: Retail Distribution Review, Financial Services Authority. UK Retail Distribution Review (RDR) Update The FSA published the latest update on the Retail Distribution Review (RDR), Consultation Paper 09/18, ‘Distribution of retail investments: Delivering the RDR’ on Thursday 25 June 2009. The paper has put forward a new definition of independence. All investment firms will have to describe themselves as offering ‘independent advice’, giving recommendations from the whole of the market ‘based on comprehensive and fair analysis’, or ‘restricted advice’, giving recommendations on their own range of products. Firms that describe their advice as independent will genuinely have to make their recommendations based on a comprehensive and fair analysis, and provide unbiased, unrestricted advice. The firm will not be able to exclusively offer just their own funds or model investment portfolios, but will have to broaden the range of investments they advise on to include ETFs and structured products. Firms providing restricted advice must make oral disclosure indicating the firm they work for and the range of products they advise on. The paper says: “We are aware that few independent firms constrain themselves to looking at packaged products only. The new standards aim to reflect this while also ensuring any new developments in the market will be captured by the rules. For example, although many exchange-traded funds would be regarded as packaged products, evidence suggests that they are not generally sold to retail clients in significant numbers.” “This may be because advisers do not feel they are suitable for their clients or because advisers feel ETFs are not a product with which they need to familiarise themselves. However, to the extent that ETFs can be a cheap and transparent way to invest in a particular market, even under our current whole of market requirement, these products should

be considered when deciding which products are suitable for a retail client.” The FSA said: “The proposals bring to an end the current, commission-based system of adviser remuneration: we propose to ban product providers from offering amounts of commission to secure sales from adviser firms and, in turn, to ban adviser firms from recommending products that automatically pay commission.” Comments on the consultation paper must be submitted prior to 30 October 2009. The FSA will publish a Policy Statement (PS) giving feedback in the first quarter of 2010. The final timetable for implementation is likely to require firms to implement changes by 31 December 2012. Source: CP09/18: Distribution of retail investments: Delivering the RDR, Financial Services Authority. SEC-FINRA Investor Alert on Leveraged and Inverse ETFs 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.” Source: Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors, Financial Industry Regulatory Authority. CFTC Hearings on Energy Position Limits and Hedge Exemptions U.S. Commodity Futures Trading Commission (CFTC) held hearings on Energy Position Limits and Hedge Exemptions on 28 July, 29 July and 5 August, on 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. A number of ETPs/ETFs providing exposure to commodities have recently issued notices that they have suspended their creation process. Source: Hearings on Energy Position Limits and Hedge Exemptions, U.S. Commodity Futures Trading Commission.



North America - Equity, 40.1%

Emerging Markets - Equity, 15.3%

Fixed Income - All (ex-Cash), 15.9%Europe - Equity, 11.2%

Asia Pacific - Equity, 6.5%

Global (ex-US) - Equity, 5.7%

Commodities, 2.1%Global - Equity, 2.1%

Fixed Income - Cash (Money Market), 0.9%

Mixed (Equity & Fixed Income), 0.1%

Currency, 0.1%Alternative, 0%

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Figure 1: Global ETF and ETP asset growth, as at end October 2009 Assets (US$ Bn) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q2-09 Q3-09 OCT-09 ETF Assets 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 $710.9 $789.0 $933.5 $941.8 ETF Equity Assets $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 $639.0 $759.7 $762.6

ETF Fixed Income Assets $0.1 $0.1 $4.0 $5.8 $23.1 $21.3 $35.8 $59.9 $104.0 $132.8 $152.9 $157.7 ETF Commodity Assets $0.0 $0.1 $0.3 $0.5 $1.2 $3.4 $6.3 $9.9 $16.4 $19.7 $20.1

ETP Assets Total $0.0 $0.1 $0.1 $0.2 $0.4 $15.9 $28.7 $47.5 $55.4 $86.8 $105.9 $139.7 ETF/ETP Assets Total $0.8 $1.1 $2.3 $5.3 $8.2 $17.6 $39.6 $74.4 $104.9 $141.7 $212.2 $310.2 $428.0 $594.3 $844.2 $766.3 $875.8 $1,039.4 $1,081.5 # ETFs 3 3 4 21 21 31 33 92 202 280 282 336 461 714 1,172 1,592 1,707 1,819 1,859

# ETPs 1 1 1 3 17 63 167 337 511 561 568 569 # ETF/ETP Total 3 3 4 21 21 31 33 93 203 281 285 353 524 881 1,509 2,103 2,268 2,387 2,428 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 2: Global ETF assets by type of exposure, as at end October 2009 OCT-09 YTD CHANGE # TOTAL AUM # TOTAL AUM % % REGION OF EXPOSURE # ETFs LISTINGS (US$ BN) % TOTAL # ETFs LISTINGS (US$ BN) AUM TOTAL Equity 1,491 2,681 $762.65 81.0% 147 429 $165.74 27.8% -3.0% North America - Equity 484 675 $377.79 40.1% 12 49 $34.98 10.2% -8.1% Emerging Markets - Equity 272 548 $144.56 15.3% 42 103 $73.64 103.8% 5.4% Europe - Equity 414 875 $105.60 11.2% 64 181 $30.00 39.7% 0.6% Asia Pacific - Equity 147 247 $61.68 6.5% 12 36 $9.47 18.1% -0.8% Global - Equity 112 267 $19.53 2.1% 15 54 $8.63 79.2% 0.5% Global (ex-US) - Equity 62 69 $53.50 5.7% 2 6 $9.02 20.3% -0.6% Fixed Income 261 474 $157.73 16.7% 100 181 $53.97 52.0% 2.2% Fixed Income - All (ex-Cash) 244 439 $149.70 15.9% 96 171 $58.29 63.8% 3.0% Fixed Income - Cash (Money Market) 17 35 $8.03 0.9% 4 10 -$4.32 -35.0% -0.9% Commodities 60 124 $20.08 2.1% 12 46 $10.51 109.9% 0.8% Mixed (Equity & Fixed Income) 31 32 $0.55 0.1% 5 6 $0.27 98.7% 0.0% Currency 14 14 $0.78 0.1% 1 1 $0.39 100.4% 0.0% Alternative 2 2 $0.05 0.0% 2 2 $0.05 100.0% 0.0% Total 1,859 3,327 $941.85 100.0% 267 665 $230.95 32.5%

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

Assets US$ Bn # Products



Figure 3: ETF listings, as at end October 2009

AMERICAS EMEA ASIA/PACIFIC Brazil Austria Hungary South Africa Australia Malaysia P Listings: 4 P Listings: 1 P Listings: 1 P Listings: 22 P Listings: 4 P Listings: 3 T Listings: 4 T Listings: 21 T Listings: 1 T Listings: 22 T Listings: 25 T Listings: 3 Providers: 2 Providers: 1 Providers: 1 Providers: 5 Providers: 2 Providers: 2 AUM: US$1.48 Bn AUM: US$0.09 Bn AUM: US$0.02 Bn AUM: US$1.52 Bn AUM: US$2.24 Bn AUM: US$0.34 Bn

Canada Belgium Ireland Spain China New Zealand P Listings: 105 P Listings: 1 P Listings: 14 P Listings: 10 P Listings: 5 P Listings: 6 T Listings: 126 T Listings: 1 T Listings: 14 T Listings: 32 T Listings: 5 T Listings: 6 Providers: 4 Providers: 1 Providers: 2 Providers: 2 Providers: 4 Providers: 2 AUM: US$25.92 Bn AUM: US$0.07 Bn AUM: US$0.15 Bn AUM: US$2.34 Bn AUM: US$5.18 Bn AUM: US$0.46 Bn

Mexico Finland Italy Sweden Hong Kong Singapore P Listings: 13 P Listings: 1 P Listings: 14 P Listings: 9 P Listings: 16 P Listings: 8 T Listings: 181 T Listings: 1 T Listings: 319 T Listings: 9 T Listings: 37 T Listings: 40 Providers: 2 Providers: 1 Providers: 4 Providers: 2 Providers: 5 Providers: 6 AUM: US$5.99 Bn AUM: US$0.18 Bn AUM: US$1.65 Bn AUM: US$2.17 Bn AUM: US$20.28 Bn AUM: US$2.25 Bn

United States France Netherlands Switzerland India South Korea P Listings: 732 P Listings: 222 P Listings: 5 P Listings: 40 P Listings: 12 P Listings: 46 T Listings: 732 T Listings: 392 T Listings: 93 T Listings: 182 T Listings: 12 T Listings: 46 Providers: 25 Providers: 7 Providers: 3 Providers: 4 Providers: 6 Providers: 9 AUM: US$639.58 Bn AUM: US$49.72 Bn AUM: US$0.22 Bn AUM: US$16.94 Bn AUM: US$0.20 Bn AUM: US$3.27 Bn

Germany Norway Turkey Indonesia Taiwan P Listings: 329 P Listings: 6 P Listings: 9 P Listings: 1 P Listings: 12 T Listings: 590 T Listings: 6 T Listings: 9 T Listings: 1 T Listings: 14 Providers: 9 Providers: 2 Providers: 4 Providers: 1 Providers: 2 AUM: US$88.43 Bn AUM: US$0.65 Bn AUM: US$0.19 Bn AUM: US$0.00 Bn AUM: US$2.48 Bn

Greece Slovenia United Kingdom Japan Thailand P Listings: 2 P Listings: 1 P Listings: 136 P Listings: 66 P Listings: 3 T Listings: 2 T Listings: 1 T Listings: 328 T Listings: 69 T Listings: 3 Providers: 2 Providers: 1 Providers: 6 Providers: 5 Providers: 2 AUM: US$0.14 Bn AUM: US$0.01 Bn AUM: US$42.58Bn AUM: US$24.94 Bn AUM: US$0.07 Bn

T P

P Listings = # Primary listings T Listings = # Total listings Providers = # Primary ETF Providers AUM = Assets Under Management


1 5 11

18 302

3

4

6

7

8

9

10

12

13

14

15

16

19

20

21

22

25

26

27

28

29

31

32

33

34

17 23

24



Index providers do not issue products or manage assets, however ETFs are designed to track indices, so investors do consider the underlying index methodology and how representative the index is of the desired exposure. Globally, MSCI ranks first in terms of ETF assets tracking their indices, with US$222.66 Bn in 267 ETFs, reflecting 23.6% market share while Standard & Poor’s (S&P) is second with 229 products, assets of US$218.83 Bn and 23.2% market share, followed by Barclays Capital in third with 62 products and assets of US$81.33 Bn, an 8.6% market share at the end of October 2009. Figure 4: Global ETF assets by index provider, as at end October 2009 OCT-09 YTD CHANGE # TOTAL AUM # TOTAL AUM % % INDEX PROVIDER # ETFs LISTINGS (US$ BN) % TOTAL # ETFs LISTINGS (US$ BN) AUM TOTAL MSCI 267 651 $222.66 23.6% 65 163 $85.90 62.8% 4.4% S&P 229 352 $218.83 23.2% 18 43 $15.71 7.7% -5.3% Barclays Capital 62 148 $81.33 8.6% 17 48 $31.70 63.9% 1.7% Russell 61 96 $60.99 6.5% 10 34 $3.37 5.8% -1.6% STOXX 198 472 $45.00 4.8% 38 107 $11.67 35.0% 0.1% FTSE 115 248 $40.10 4.3% -6 8 $15.69 64.3% 0.8% Dow Jones 129 199 $37.91 4.0% 20 37 $3.21 9.3% -0.9% Markit 69 127 $37.19 3.9% 28 56 $16.59 80.5% 1.1% Deutsche Boerse 30 78 $22.81 2.4% 2 19 $5.22 29.7% -0.1% NASDAQ 29 46 $21.75 2.3% 1 4 $4.87 28.8% -0.1% Topix 53 62 $12.92 1.4% 1 4 -$1.90 -12.8% -0.7% Nikkei 8 9 $12.46 1.3% 1 2 -$0.71 -5.4% -0.5% Hang Seng 9 20 $11.72 1.2% -1 1 $3.99 51.6% 0.2% EuroMTS 21 49 $11.05 1.2% 8 14 $0.00 0.0% -0.4% CAC 17 22 $7.16 0.8% 4 7 $0.40 5.9% -0.2% NYSE 8 10 $5.48 0.6% 4 6 $2.68 96.1% 0.2% WisdomTree 44 44 $5.24 0.6% 44 44 $5.24 100.0% 0.6% Intellidex 42 52 $2.51 0.3% -3 -3 -$0.01 -0.5% -0.1% Indxis 7 8 $2.34 0.2% 0 1 $1.00 75.1% 0.1% Morningstar 13 13 $1.55 0.2% 0 0 $0.19 14.2% 0.0% S-Network 13 31 $1.03 0.1% 13 31 $1.03 100.0% 0.1% Zacks 14 15 $0.49 0.1% 0 1 $0.19 64.3% 0.0% Value Line 5 5 $0.31 0.0% 0 0 $0.00 0.5% 0.0% Other 416 570 $79.02 8.4% 3 38 $24.91 46.0% 0.8% Total 1,859 3,327 $941.85 100.0% 267 665 $230.95 32.5% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

MSCI, 23.6%S&P, 23.2%BarCap, 8.6%Russell, 6.5%STOXX, 4.8%FTSE, 4.3%Dow Jones, 4%Markit, 3.9%Deutsche Boerse, 2.4%NASDAQ, 2.3%Topix, 1.4%Nikkei, 1.3%Hang Seng, 1.2%EuroMTS, 1.2%CAC, 0.8%NYSE, 0.6%WisdomTree, 0.6%Intellidex, 0.3%Indxis, 0.2%Morningstar, 0.2%S-Network, 0.1%Zacks, 0.1%Value Line, 0%Other, 8.4%



Figure 5: Top 20 ETFs worldwide by AUM, as at end October 2009 AUM ADV ADV ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) SPDR S&P 500 SPY US $69,228 213,434 $22,829 iShares MSCI Emerging Markets Index Fund EEM US $36,125 89,114 $3,531 iShares MSCI EAFE Index Fund EFA US $34,606 19,558 $1,077 iShares S&P 500 Index Fund IVV US $20,600 3,978 $426 iShares Barclays TIPS Bond Fund TIP US $17,182 1,269 $131 PowerShares QQQ Trust QQQQ US $16,649 109,099 $4,624 Vanguard Emerging Markets VWO US $16,155 10,645 $423 iShares iBoxx $ Investment Grade Corporate Bond Fund LQD US $12,904 1,245 $130 Vanguard Total Stock Market ETF VTI US $12,468 1,822 $98 iShares Russell 2000 Index Fund IWM US $11,255 58,042 $3,481 iShares Barclays Aggregate Bond Fund AGG US $10,880 570 $60 iShares MSCI Brazil Index Fund EWZ US $10,820 23,281 $1,671 iShares Russell 1000 Growth Index Fund IWF US $10,336 2,721 $127 iShares FTSE/Xinhua China 25 Index Fund FXI US $9,331 22,645 $977 iShares CDN LargeCap 60 Index Fund XIU CN $9,187 21,023 $321 iShares Russell 1000 Value Index Fund IWD US $8,412 1,930 $108 S&P 400 MidCap SPDR MDY US $7,794 3,686 $462 DIAMONDS DIA US $7,684 12,827 $1,264 iShares Barclays 1-3 Year Treasury Bond Fund SHY US $7,544 983 $82 Lyxor DJ Euro STOXX 50 MSE FP $6,957 2,436 $113 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 6: Top 20 ETFs worldwide by average daily US dollar trading volume, as at end October 2009 ADV ADV AUM ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) SPDR S&P 500 SPY US $22,829 213,434 $69,228 PowerShares QQQ Trust QQQQ US $4,624 109,099 $16,649 iShares MSCI Emerging Markets Index Fund EEM US $3,531 89,114 $36,125 iShares Russell 2000 Index Fund IWM US $3,481 58,042 $11,255 Direxion Daily Financial Bull 3x Shares FAS US $2,796 34,560 $1,361 ProShares UltraShort S&P500® SDS US $1,872 47,446 $3,487 Direxion Daily Financial Bear 3x Shares FAZ US $1,821 89,612 $1,099 iShares MSCI Brazil Index Fund EWZ US $1,671 23,281 $10,820 Financial Select Sector SPDR Fund XLF US $1,637 109,735 $6,873 Energy Select Sector SPDR Fund XLE US $1,320 23,229 $5,635 DIAMONDS DIA US $1,264 12,827 $7,684 iShares MSCI EAFE Index Fund EFA US $1,077 19,558 $34,606 ProShares Ultra S&P500 SSO US $1,063 30,448 $1,697 iShares Dow Jones U.S. Real Estate Index Fund IYR US $1,060 25,436 $2,656 iShares FTSE/Xinhua China 25 Index Fund FXI US $977 22,645 $9,331 ProShares UltraShort Financials SKF US $589 23,683 $823 Market Vectors Gold Miners GDX US $582 12,588 $5,105 ProShares Ultra QQQ QLD US $567 11,072 $873 SPDR S&P Retail ETF XRT US $548 15,587 $359 ProShares UltraShort QQQ® QID US $506 22,204 $1,011 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 7: Top 20 ETFs worldwide with largest change in AUM, as at end October 2009 AUM (US$ MN) AUM (US$ MN) CHANGE ETF TICKER OCT-09 DEC-08 (US$ MN) SPDR S&P 500 SPY US $69,228 $93,905 -$24,678 iShares MSCI Emerging Markets Index Fund EEM US $36,125 $19,473 $16,652 Vanguard Emerging Markets VWO US $16,155 $5,037 $11,118 iShares Barclays TIPS Bond Fund TIP US $17,182 $8,902 $8,280 iShares MSCI Brazil Index Fund EWZ US $10,820 $3,544 $7,275 iShares iBoxx $ Investment Grade Corporate Bond Fund LQD US $12,904 $7,237 $5,666 iShares S&P 500 Index Fund IVV US $20,600 $15,624 $4,977 PowerShares QQQ Trust QQQQ US $16,649 $12,521 $4,128 db x-trackers II EONIA Total Return Index ETF XEON GY $3,039 $6,941 -$3,901 iShares CDN LargeCap 60 Index Fund XIU CN $9,187 $5,618 $3,569 Vanguard Total Stock Market ETF VTI US $12,468 $9,095 $3,373 iShares FTSE/Xinhua China 25 Index Fund FXI US $9,331 $6,000 $3,331 iShares Barclays 1-3 Year Credit Bond Fund CSJ US $4,136 $827 $3,309 ProShares UltraShort Lehman 20+ Year Treasury TBT US $4,630 $1,562 $3,068 Vanguard Total Bond Market ETF BND US $5,769 $3,009 $2,761 iShares FTSE/Xinhua A50 China Tracker 2823 HK $6,368 $3,620 $2,748 iShares ! Corporate Bond IBCS GY $4,794 $2,211 $2,583 China 50 ETF 510050 CH $3,072 $567 $2,505 Market Vectors Gold Miners GDX US $5,105 $2,621 $2,484 ZKB Gold ETF (CHF) ZGLD SW $5,006 $2,736 $2,270 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 8: ETF providers worldwide ranked by AUM, as at end October 2009 OCT-09 YTD CHANGE AUM # AUM % % MARKET PROVIDER # ETFs (US$ BN) % TOTAL PLANNED # ETFs % ETFs (US$ BN) AUM SHARE iShares 405 $455.72 48.4% 24 43 11.9% $127.24 38.7% 2.2% State Street Global Advisors 106 $137.08 14.6% 27 8 8.2% -$8.92 -6.1% -6.0% Vanguard 40 $80.76 8.6% 10 2 5.3% $35.61 78.9% 2.2% Lyxor Asset Management 120 $42.87 4.6% 0 -13 -9.8% $8.01 23.0% -0.4% db x-trackers 118 $34.68 3.7% 0 20 20.4% $10.62 44.1% 0.3% PowerShares 124 $31.64 3.4% 38 -18 -12.7% $9.36 42.0% 0.2% ProShares 78 $24.51 2.6% 98 14 21.9% $4.19 20.6% -0.3% Nomura Asset Management 29 $13.99 1.5% 0 0 0.0% -$0.95 -6.3% -0.6% Van Eck Associates Corp 21 $10.37 1.1% 14 5 31.3% $5.92 133.0% 0.5% Credit Suisse Asset Management 24 $7.81 0.8% 0 16 200.0% $1.87 31.4% 0.0% Bank of New York 1 $7.79 0.8% 0 0 0.0% $1.11 16.5% -0.1% Zurich Cantonal Bank 4 $6.35 0.7% 0 0 0.0% $3.05 92.5% 0.2% EasyETF 64 $5.90 0.6% 2 10 18.5% $1.44 32.1% 0.0% WisdomTree Investments 51 $5.70 0.6% 68 1 2.0% $2.47 76.6% 0.2% Nikko Asset Management 10 $5.64 0.6% 0 2 25.0% -$0.55 -8.9% -0.3% Hang Seng Investment Management 3 $5.18 0.6% 0 0 0.0% $2.36 83.8% 0.2% ETFlab Investment 30 $5.04 0.5% 0 20 200.0% $2.52 100.0% 0.2% Claymore Securities 58 $5.02 0.5% 16 4 7.4% $3.41 211.0% 0.3% Commerzbank 62 $4.96 0.5% 8 12 24.0% $2.36 91.2% 0.2% Daiwa Asset Management 23 $4.67 0.5% 1 0 0.0% -$1.39 -22.9% -0.4% Direxion Shares 22 $4.62 0.5% 112 8 57.1% $3.68 393.5% 0.4% Credit Agricole Structured AM 63 $4.21 0.4% 0 39 162.5% $2.35 126.3% 0.2% China Asset Management 2 $3.51 0.4% 1 0 0.0% $2.22 171.7% 0.2% UBS Global Asset Management 12 $2.98 0.3% 0 4 50.0% $1.58 113.2% 0.1% Rydex 31 $2.81 0.3% 82 0 0.0% $0.99 54.4% 0.0% XACT Fonder 10 $2.57 0.3% 0 0 0.0% $1.05 69.4% 0.1% BetaPro Management 39 $2.48 0.3% 3 11 39.3% $1.00 67.5% 0.1% Source Markets 31 $2.40 0.3% 21 31 100.0% $2.40 100.0% 0.3% BBVA Asset Management 9 $2.23 0.2% 0 1 12.5% $0.14 6.9% -0.1% Polaris 8 $1.96 0.2% 2 1 14.3% $0.67 52.7% 0.0% Samsung Investment Trust Management 14 $1.60 0.2% 0 -1 -6.7% $0.46 40.2% 0.0% First Trust Advisors 39 $1.60 0.2% 3 1 2.6% $0.86 115.3% 0.1% Banco Itau 1 $1.42 0.2% 0 0 0.0% $0.45 46.0% 0.0% Satrix Managers 7 $1.19 0.1% 1 1 16.7% $0.17 16.8% 0.0% E Fund Management 1 $0.98 0.1% 1 0 0.0% $0.44 81.4% 0.0% BOCI-Prudential Asset Management 3 $0.93 0.1% 0 1 50.0% $0.40 75.7% 0.0% ABN Amro 10 $0.73 0.1% 0 0 0.0% $0.50 217.1% 0.0% Mitsubishi UFJ Asset Management 4 $0.60 0.1% 0 3 300.0% $0.38 172.5% 0.0% Woori Credit Suisse Asset Management 8 $0.55 0.1% 7 0 0.0% -$0.20 -26.2% 0.0% AIG-Huatai Fund Management 1 $0.53 0.1% 0 0 0.0% $0.16 44.7% 0.0% Fubon Asset Management 4 $0.52 0.1% 0 0 0.0% $0.45 645.5% 0.0% Mirae Asset MAPS Global Investments 11 $0.40 0.0% 0 2 22.2% -$0.13 -24.1% 0.0% HSBC 3 $0.34 0.0% 0 2 200.0% $0.04 13.8% 0.0% KB Asset Management 3 $0.31 0.0% 0 2 200.0% $0.30 2557.1% 0.0% RevenueShares 6 $0.27 0.0% 8 1 20.0% $0.20 306.6% 0.0% ETF Securities 21 $0.26 0.0% 0 8 61.5% $0.24 1361.1% 0.0% Korea Investment Trust Management 5 $0.26 0.0% 0 3 150.0% -$0.04 -12.3% 0.0% DBS Asset Management 2 $0.25 0.0% 0 1 100.0% $0.03 11.3% 0.0% DnB NOR Asset Management 3 $0.25 0.0% 0 0 0.0% $0.16 167.8% 0.0% AMP 1 $0.24 0.0% 0 0 0.0% $0.11 90.1% 0.0% Smartshares Limited 5 $0.22 0.0% 0 0 0.0% $0.08 52.8% 0.0% PIMCO 5 $0.20 0.0% 9 5 100.0% $0.20 100.0% 0.0% JPM Structured Fund Management 6 $0.20 0.0% 0 0 0.0% -$0.04 -15.2% 0.0% i-VCAP Management 1 $0.19 0.0% 0 0 0.0% $0.04 30.5% 0.0% Benchmark Asset Management 6 $0.18 0.0% 12 1 20.0% -$0.69 -79.5% -0.1% Seligson & Co Fund Management 1 $0.18 0.0% 0 0 0.0% $0.07 67.7% 0.0% Huaan Fund Management 1 $0.17 0.0% 0 0 0.0% $0.11 185.6% 0.0% XShares Advisors 5 $0.17 0.0% 34 0 0.0% $0.04 30.1% 0.0% CIMB-GK Securities 1 $0.16 0.0% 0 0 0.0% $0.06 60.9% 0.0% AmInvestment Management 2 $0.15 0.0% 0 0 0.0% $0.00 -1.5% 0.0% Alpha Asset Management 1 $0.13 0.0% 0 0 0.0% $0.05 62.6% 0.0% Fidelity Management & Research 1 $0.12 0.0% 0 0 0.0% $0.04 53.6% 0.0% NewFunds 7 $0.12 0.0% 4 5 250.0% $0.00 0.0% 0.0%

continued…



Figure 8 (continued): ETF providers worldwide ranked by AUM, as at end October 2009

OCT-09 YTD CHANGE AUM # AUM % % MARKET PROVIDER # ETFs (US$ BN) % TOTAL PLANNED # ETFs % ETFs (US$ BN) AUM SHARE Finans Portfoy Yonetimi 6 $0.11 0.0% 0 1 20.0% $0.00 0.4% 0.0% Yurie Asset Management 2 $0.09 0.0% 0 1 100.0% $0.08 1414.8% 0.0% IndexIQ Advisors 4 $0.08 0.0% 36 4 100.0% $0.08 100.0% 0.0% BMO Asset Management 13 $0.08 0.0% 1 13 100.0% $0.08 100.0% 0.0% Is Investment 1 $0.08 0.0% 0 0 0.0% $0.08 100.0% 0.0% One Asset Management 2 $0.07 0.0% 0 1 100.0% $0.01 12.8% 0.0% Beta1 ETFund 3 $0.06 0.0% 0 0 0.0% -$0.02 -26.1% 0.0% Jefferies Asset Management 3 $0.06 0.0% 0 3 100.0% $0.06 100.0% 0.0% Bank of Ireland AM 1 $0.03 0.0% 0 0 0.0% $0.00 18.0% 0.0% Emerging Global Advisors 4 $0.03 0.0% 10 4 100.0% $0.03 100.0% 0.0% Bips Investment Managers 2 $0.03 0.0% 0 1 100.0% $0.03 100.0% 0.0% Tong Yang Investment Trust Management 1 $0.03 0.0% 0 1 100.0% $0.03 100.0% 0.0% Investec Fund Management 1 $0.02 0.0% 0 -2 -66.7% $0.01 179.6% 0.0% ALPS ETF Trust 2 $0.02 0.0% 5 1 100.0% $0.02 348.2% 0.0% AdvisorShares 1 $0.02 0.0% 2 1 100.0% $0.02 100.0% 0.0% Prudential Asset Management 1 $0.02 0.0% 0 1 100.0% $0.02 100.0% 0.0% Kotak Mahindra Asset Management 2 $0.02 0.0% 0 0 0.0% -$0.39 -95.7% -0.1% OTP Fund Management 1 $0.02 0.0% 0 0 0.0% $0.01 64.4% 0.0% Daishin Investment Trust Management 1 $0.02 0.0% 0 1 100.0% $0.02 100.0% 0.0% Grail Advisors 5 $0.01 0.0% 4 5 100.0% $0.01 100.0% 0.0% NBG Asset Management 1 $0.01 0.0% 1 1 100.0% $0.01 100.0% 0.0% Global X Funds 2 $0.01 0.0% 17 2 100.0% $0.01 100.0% 0.0% Medvesek Pusnik AM 1 $0.01 0.0% 0 0 0.0% $0.00 14.3% 0.0% TMB Asset Management 1 $0.01 0.0% 0 0 0.0% $0.00 -0.7% 0.0% Javelin Investment Management 1 $0.00 0.0% 0 1 100.0% $0.00 100.0% 0.0% OOK Advisors 1 $0.00 0.0% 1 1 100.0% $0.00 100.0% 0.0% Reliance Capital Asset Management 1 $0.00 0.0% 1 0 0.0% $0.00 0.0% 0.0% UTI Asset Management 1 $0.00 0.0% 1 0 0.0% $0.00 15.5% 0.0% Indo Premier Securities 1 $0.00 0.0% 0 0 0.0% $0.00 -21.9% 0.0% Bizim Menkul Degerler 1 $0.00 0.0% 0 0 0.0% $0.00 -53.6% 0.0% PRUDENTIAL ICICI 1 $0.00 0.0% 0 0 0.0% $0.00 104.6% 0.0% Quantum Asset Management 1 $0.00 0.0% 0 0 0.0% $0.00 16.1% 0.0% Ak Securities 1 $0.00 0.0% 0 0 0.0% $0.00 0.0% 0.0% HQ Fonder 2 $0.00 0.0% 0 2 100.0% $0.00 100.0% 0.0% SPA ETF International 0 $0.00 0.0% 7 -13 -100.0% -$0.04 -100.0% 0.0% Northern Trust 0 $0.00 0.0% 0 -17 -100.0% -$0.03 -100.0% 0.0% Kaupthing Bank Asset Management 0 $0.00 0.0% 0 -1 -100.0% $0.00 -100.0% 0.0% Al Mal Capital - - - 1 - - - - - Amas Bank - - - 1 - - - - - Bosera Asset Management - - - 1 - - - - - Capital West Securities - - - 1 - - - - - Charles Schwab Investment Management - - - 9 - - - - - Exchange Traded Spreads Trust - - - 4 - - - - - Factor Advisors - - - 22 - - - - - FaithShares - - - 5 - - - - - Firsthand Capital - - - 1 - - - - - Florentez Investment - - - 1 - - - - - FocusShares - - - 6 - - - - - Gaon Investment House - - - 2 - - - - - Government Service Insurance Systems - - - 1 - - - - - Guotai Asset Management - - - 1 - - - - - Macro Securities Depositor - - - 2 - - - - - Next Investments - - - 1 - - - - - Old Mutual Global Shares - - - 5 - - - - - Pax World Funds - - - 3 - - - - - Tata Mutual Fund - - - 1 - - - - - TXF Funds - - - 1 - - - - - United Overseas Bank - - - 1 - - - - - Other (Planned) - - - 19 - - - - - Total 1,859 $941.85 100.0% 781 268 16.8% $230.95 32.5% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 9: Top five global ETF providers by average daily turnover, as at end October 2009 AVERAGE DAILY TURNOVER (US$ MN) % MARKET % MARKET CHANGE % PROVIDER DEC-08 SHARE OCT-09 SHARE (US$ MN) CHANGE SSgA $35,245.1 43.7% $30,295.9 40.7% -$4,949.2 -14.0% iShares $17,712.6 22.0% $18,865.6 25.4% $1,152.9 6.5% ProShares $17,674.6 21.9% $7,460.8 10.0% -$10,213.8 -57.8% Direxion Shares $1,280.2 1.6% $6,654.9 8.9% $5,374.8 419.8% PowerShares $4,033.4 5.0% $4,765.9 6.4% $732.5 18.2% Others $4,653.9 5.8% $6,361.3 8.5% $1,707.4 36.7% Total $80,599.9 100.0% $74,404.4 100.0% -$6,195.5 -7.7% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 10: ETP providers around the world ranked by assets, as at end October 2009

OCT-09 YTD CHANGE ASSETS # ASSETS % % MARKET PROVIDER # ETPs (US$ BN) % TOTAL PLANNED # ETPs % ETPs (US$ BN) ASSETS SHARE State Street Global Advisors 1 $37.14 26.6% 0 0 0.0% $15.09 68.4% -13.2% KSM 96 $18.26 13.1% 0 -1 -1.0% $18.26 N/A 13.1% ETF Securities 130 $15.04 10.8% 18 6 4.8% $7.74 106.1% -2.4% Mabat 3 $10.72 7.7% 1 -42 -93.3% $9.72 970.0% 5.9% Deutsche Bank 45 $10.16 7.3% 0 10 28.6% $5.68 126.7% -0.8% iShares 34 $9.18 6.6% 2 31 1033.3% $4.33 89.2% -2.2% United States Commodity Funds 6 $6.26 4.5% 1 1 20.0% $3.12 99.5% -1.2% Tachlit 30 $5.33 3.8% 3 -11 -26.8% $5.33 N/A 3.8% Barclays (iPath) 17 $5.29 3.8% 0 -11 -39.3% $2.70 104.4% -0.9% Merrill Lynch 45 $5.05 3.6% 0 28 164.7% $0.04 0.8% -5.4% Psagot 35 $4.03 2.9% 0 4 12.9% $3.23 401.4% 1.4% Rydex 9 $2.91 2.1% 13 0 0.0% $0.48 20.0% -2.3% Julius Baer 1 $2.21 1.6% 0 0 0.0% $2.09 1775.6% 1.4% NewFunds 20 $1.74 1.2% 0 19 1900.0% $1.43 448.6% 0.7% Index 1 $1.64 1.2% 0 -19 -95.0% $1.64 N/A 1.2% Credit Suisse Asset Management 1 $1.21 0.9% 0 1 100.0% $1.21 100.0% 0.9% ProShares 12 $0.80 0.6% 38 0 0.0% $0.63 357.4% 0.3% Swedish Export Credit Corp 7 $0.79 0.6% 0 0 0.0% $0.54 210.9% 0.1% JPMorgan Chase 2 $0.46 0.3% 0 1 100.0% $0.46 20326.1% 0.3% Nomura Asset Management 4 $0.31 0.2% 0 0 0.0% -$0.03 -9.3% -0.4% Source Markets 1 $0.24 0.2% 0 1 100.0% $0.24 100.0% 0.2% GreenHaven Commodity Services 24 $0.22 0.2% 0 23 2300.0% $0.21 1180.1% 0.1% Lyxor 1 $0.10 0.1% 0 1 100.0% $0.10 100.0% 0.1% Benchmark Asset Management 2 $0.09 0.1% 0 1 100.0% $0.05 128.3% 0.0% HSBC USA 1 $0.08 0.1% 0 0 0.0% $0.05 149.3% 0.0% Hadas 1 $0.07 0.1% 0 -4 -80.0% $0.07 N/A 0.1% Goldman Sachs 1 $0.07 0.0% 0 -1 -50.0% $0.01 22.7% -0.1% Morgan Stanley 1 $0.07 0.0% 0 -3 -75.0% -$0.01 -9.3% -0.1% SBI Funds Management 1 $0.04 0.0% 0 1 100.0% $0.04 100.0% 0.0% UTI Asset Management 9 $0.04 0.0% 0 8 800.0% $0.00 5.8% 0.0% Reliance Capital Asset Management 4 $0.04 0.0% 0 3 300.0% $0.00 10.8% 0.0% Simplex Asset Management 1 $0.04 0.0% 0 1 100.0% $0.04 100.0% 0.0% Macro Securities Depositor 1 $0.02 0.0% 0 -1 -50.0% $0.00 -1.8% 0.0% Kotak Mahindra Asset Management 2 $0.02 0.0% 0 1 100.0% $0.00 8.2% 0.0% Barclays Capital 1 $0.01 0.0% 0 -2 -66.7% -$0.09 -89.0% -0.2% Dubai Commodities Asset Management 3 $0.01 0.0% 0 3 100.0% $0.01 100.0% 0.0% Credit Suisse 1 $0.00 0.0% 0 -3 -75.0% $0.00 -64.1% 0.0% Quantum Asset Management 1 $0.00 0.0% 0 0 0.0% $0.00 233.4% 0.0% Harel 1 $0.00 0.0% 0 1 100.0% $0.00 100.0% 0.0% Clade Investment Management 13 $0.00 0.0% 0 12 1200.0% $0.00 -100.0% 0.0% Bear Stearns Asset Management 0 $0.00 0.0% 0 -1 -100.0% -$0.05 -100.0% -0.1% Birla Sun Life Mutual Fund - - - 1 - - - - - OptiMix - - - 1 - - - - - Tata Mutual Fund - - - 1 - - - - - Other (Planned ETP) - - - 5 - - - - - Total 569 $139.70 100.0% 84 58 11.4% $84.33 152.3% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

SSgA, 40.7%

iShares, 25.4%ProShares, 10.0%

Direxion Shares, 8.9%PowerShares, 6.4%

Others, 8.5%



Figure 11: ETF listings by exchange, as at end October 2009 # PRIMARY # TOTAL AUM ADV REGION COUNTRY EXCHANGE ETF LISTINGS ETF LISTINGS (US$ BN) (US$ MN)

Asia Pacific 182 261 61.72 1,034.61 Australia Australian Securities Exchange 4 25 2.24 27.53 China Shanghai Stock Exchange 3 3 3.77 336.49 Shenzhen Stock Exchange 2 2 1.41 132.50 Hong Kong Hong Kong Stock Exchange 16 37 20.28 244.91 India Bombay Stock Exchange 2 2 0.01 0.03 National Stock Exchange 10 10 0.19 3.80 Indonesia Indonesia Stock Exchange 1 1 0.00 0.00 Japan Osaka Securities Exchange 6 6 8.60 73.72 Tokyo Stock Exchange 60 63 16.34 78.66 Malaysia Bursa Malaysia Securities Berhad 3 3 0.34 0.06 New Zealand New Zealand Stock Exchange 6 6 0.46 0.26 Singapore Singapore Stock Exchange 8 40 2.25 10.61 South Korea Korea Stock Exchange 46 46 3.27 101.79 Taiwan Taiwan Stock Exchange 12 14 2.48 23.61 Thailand Stock Exchange of Thailand 3 3 0.07 0.63 Americas 854 1,043 673.07 70,363.74 Brazil Sao Paulo 4 4 1.58 14.20 Canada Toronto Stock Exchange 105 126 25.92 1,101.24 Mexico Mexican Stock Exchange 13 181 5.99 177.06 US BATS (Better Alternative Trading System) - - - 9,912.08 Boston Stock Exchange - - - 1,533.34 Chicago Board Options Exchange (CBOE) - - - 236.48 Chicago Stock Exchange - - - 1,071.91 FINRA Alternative Display Facility (ADF) - - - 18,502.79 International Securities Exchange (ISE) - - - 638.16 NASDAQ Stock Market 41 41 22.37 21,642.81 National Stock Exchange (NSX) - - - 285.96 NYSE Amex Equities 4 4 77.03 0.00 NYSE Arca 687 687 540.18 15,247.72 Europe, Middle East and Africa (EMEA) 823 2,023 207.06 3,006.09 Austria Wiener Borse 1 21 0.09 0.38 Belgium Euronext Brussels 1 1 0.07 1.34 Finland Helsinki Stock Exchange 1 1 0.18 1.97 France Euronext Paris 222 392 49.72 459.19 Germany Deutsche Boerse 329 539 88.43 1,015.49 Boerse Stuttgart - 51 0.00 1.05 Greece Athens Exchange 2 2 0.14 0.45 Hungary Budapest Stock Exchange 1 1 0.02 1.44 Ireland Irish Stock Exchange 14 14 0.15 0.15 Italy Borsa Italiana 14 319 1.65 375.88 Netherlands Euronext Amsterdam 5 93 0.22 75.85 Norway Oslo Stock Exchange 6 6 0.65 104.65 Slovenia Ljubljana Stock Exchange 1 1 0.01 0.00 South Africa Johannesburg Stock Exchange 22 22 1.52 8.03 Spain Bolsa de Madrid 10 32 2.34 21.13 Sweden Stockholm Stock Exchange 9 9 2.17 86.79 Switzerland SIX Swiss Exchange 40 182 16.94 150.61 Turkey Istanbul Stock Exchange 9 9 0.19 37.59 United Kingdom London Stock Exchange 136 328 42.58 333.27 Chi-X (not an official exchange) 52.71 European Reported OTC 278.11 Total 1,859 3,327 941.85 74,404.44 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 12: ETF and ETP listings, as at end October 2009 NEW IN ASSETS UNDER # # # PRIMARY NEW IN 2009 TOTAL MANAGEMENT (US$ BN) CHANGE IN AUM # EXCHANGES PLANNED LOCATION LISTINGS 2008 YTD LISTINGS 2008 2009 YTD US$ BN % PROVIDERS (OFFICIAL) NEW Exchange Traded Funds (ETFs) US 732 144 76 732 $497.12 $639.58 $142.46 28.7% 25 3 678 Europe 801 220 193 2,001 $142.58 $205.54 $62.96 44.2% 32 18 56* Austria 1 - - 21 $0.03 $0.09 $0.06 178.5% 1 1 Belgium 1 - - 1 $0.05 $0.07 $0.02 42.7% 1 1 Finland 1 - - 1 $0.10 $0.18 $0.07 67.7% 1 1 France 222 55 52 392 $38.54 $49.72 $11.18 29.0% 7 1 Germany 329 99 78 590 $63.17 $88.43 $25.26 40.0% 9 2 Greece 2 1 1 2 $0.08 $0.14 $0.06 77.1% 2 1 Hungary 1 - - 1 $0.01 $0.02 $0.01 64.4% 1 1 Ireland 14 - - 14 $0.03 $0.15 $0.13 473.5% 2 1 Italy 14 9 - 319 $0.95 $1.65 $0.70 73.8% 4 1 Netherlands 5 14 2 93 $0.26 $0.22 -$0.04 -16.3% 3 1 Norway 6 4 - 6 $0.14 $0.65 $0.51 355.1% 2 1 Slovenia 1 - - 1 $0.01 $0.01 $0.00 14.3% 1 1 Spain 10 2 1 32 $2.15 $2.34 $0.19 8.7% 2 1 Sweden 9 - 2 9 $1.47 $2.17 $0.70 47.7% 2 1 Switzerland 40 2 19 182 $10.60 $16.94 $6.34 59.9% 4 1 Turkey 9 - 2 9 $0.11 $0.19 $0.08 68.2% 4 1 United Kingdom 136 34 36 328 $24.87 $42.58 $17.70 71.2% 6 1 Japan 66 45 5 69 $27.43 $24.94 -$2.50 -9.1% 5 2 0 Canada 105 31 28 126 $13.26 $25.92 $12.66 95.5% 4 1 8 Hong Kong 16 1 5 37 $13.50 $20.28 $6.79 50.3% 5 1 1 Mexico 13 1 7 181 $4.48 $5.99 $1.51 33.7% 2 1 1 China 5 - - 5 $2.25 $5.18 $2.93 130.0% 4 2 5 South Korea 46 13 14 46 $2.73 $3.27 $0.55 20.1% 9 1 7 Taiwan 12 4 - 14 $1.35 $2.48 $1.13 83.4% 2 1 4 India 12 3 1 12 $1.28 $0.20 -$1.08 -84.3% 6 2 15 South Africa 22 6 5 22 $1.25 $1.52 $0.27 21.4% 5 1 16 Brazil 4 3 - 4 $1.02 $1.58 $0.56 54.9% 2 1 0 Singapore 8 1 1 40 $1.31 $2.25 $0.94 72.3% 6 1 2 Australia 4 - 1 25 $0.71 $2.24 $1.52 213.6% 2 1 2 New Zealand 6 - - 6 $0.27 $0.46 $0.19 70.1% 2 1 0 Malaysia 3 1 - 3 $0.30 $0.34 $0.04 14.1% 2 1 1 Thailand 3 1 1 3 $0.07 $0.07 $0.01 11.5% 2 1 0 Indonesia 1 - - 1 $0.00 $0.00 $0.00 -21.9% 1 1 0 Israel - - - - - - - - - - 5 UAE - - - - - - - - - - 2 Egypt - - - - - - - - - - 1 Philippines - - - - - - - - - - 1 ETF Total 1,859 474 337 3,327 $710.90 $941.85 $230.95 32.5% 97 40 805 *Includes 21 undisclosed ABN Amro ETFs. continued…



Figure 12 (continued): ETF and ETP listings, as at end October 2009 NEW IN # # # PRIMARY NEW IN 2009 TOTAL ASSETS (US$ BN) CHANGE IN ASSETS # EXCHANGES PLANNED LOCATION LISTINGS 2008 YTD LISTINGS 2008 2009 YTD US$ BN % PROVIDERS (OFFICIAL) NEW Exchange Traded Products (ETPs) US ETPs (HOLDRS) 17 - - 17 $5.01 $5.05 $0.04 0.8% 1 1 0 US ETPs (Equity) 16 8 5 16 $0.51 $2.23 $1.72 336.6% 7 1 0 US ETPs (Currency) 27 15 - 27 $3.43 $4.70 $1.27 37.1% 6 1 25 US ETPs (Commodity) 77 50 3 77 $36.39 $66.88 $30.49 83.8% 11 1 36 Europe ETPs (Commodity) 150 68 28 405 $7.09 $17.96 $10.88 153.4% 5 6 15 India ETPs (Commodity) 6 1 1 6 $0.13 $0.24 $0.10 76.7% 6 1 4 Japan ETPs (Commodity) 2 - 1 8 $0.28 $0.31 $0.03 12.1% 2 2 3 Japan ETPs (Currency) 3 3 - 3 $0.07 $0.04 -$0.03 -46.5% 1 1 0 South Africa ETPs (Commodity) 1 - - 1 $0.32 $1.74 $1.43 448.6% 1 1 1 South Africa ETPs (Fixed Income) 1 - - 1 $0.00 $0.00 $0.00 -100.0% 1 1 0 UAE ETPs (Commodity) 1 - 1 1 $0.00 $0.01 $0.01 100.0% 1 1 1 Israel ETPs (Equity) 186 16 13 186 $0.49 $34.31 $33.82 6969.8% 6 1 0 Israel ETPs (Fixed Income) 68 20 12 68 $1.32 $4.82 $3.51 266.4% 7 1 0 Israel ETPs (Commodity) 6 - - 6 $0.01 $0.92 $0.91 17608.6% 3 1 0 Israel ETPs (Currency) 3 - - 3 $0.00 $0.00 $0.00 100.0% 1 1 0 Australia ETPs (Commodity) 5 - 4 5 $0.33 $0.49 $0.16 50.0% 1 1 0 Mexico ETPs (Commodity) - - - 6 - - - - - 1 0 Canada ETPs (Commodity) - - - 1 - - - - - 1 0 Hong Kong ETPs (Commodity) - - - 1 - - - - - 1 0 Singapore ETPs (Commodity) - - - 1 - - - - - 1 0 ETPs (Commodities) Total 248 119 38 518 $44.54 $88.55 $44.01 98.8% 28 18 60 ETPs Total 569 181 68 839 $55.36 $139.70 $84.33 152.3% 40 19 85 ETF/ETP Total 2,428 655 405 4,166 $766.27 $1,081.54 $315.28 41.1% 124 43 890 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Many investors are increasingly using ETFs to easily gain beta exposure to international and emerging market benchmarks in order to have more time to capture alpha by selecting stocks in markets where they feel they can add value – the ‘asset management barbell’. The use of ETFs by mutual funds in the US and Europe are expected to increase in both number of users and amount invested in ETFs, based

on exemptive relief granted by the SEC to more ETFs listed in the US and from the implementation of UCITS III in Europe. According to the Investment Company Institute (ICI), at the end of Q2 2009 there were 66,472 mutual funds worldwide with assets of US$20.34 trillion, down from US$18.92 trillion in 68,574 funds at the end of 2008.

Figure 13: Global mutual fund industry Q2 Q3 Q4 Q1 Q2 Assets (US$ Bn) 2001 2002 2003 2004 2005 2006 2007 2008 2008 2008 2009 2009 Total Assets 11,655 11,324 14,048 16,165 17,771 21,823 26,151 24,649 21,645 18,917 18,164 20,335 Equity 5,134 4,204 5,923 7,219 8,333 10,508 12,446 10,437 8,618 6,497 5,925 7,247 Bond 2,212 2,534 3,047 3,313 3,450 3,871 4,277 4,184 3,793 3,388 3,380 3,847 Money Market 2,986 3,190 3,206 3,323 3,364 3,864 4,961 5,591 5,424 5,786 5,799 5,719 Balanced/Mixed 942 918 1,198 1,445 1,566 2,049 2,632 2,476 2,159 1,773 1,688 1,944 Other 190 229 311 398 512 676 884 975 823 676 641 731 # Funds 52,849 54,110 54,569 54,982 56,868 61,855 66,350 68,513 69,496 68,574 67,007 66,472 Source: Investment Company Institute (ICI).

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Globally, open-end mutual funds (excluding ETFs) have seen US$13.3 Bn net new inflows during the first nine months of 2009 according to data from Strategic Insight. European listed funds were the most popular with US$80.8 Bn net inflows, followed by International/Offshore with US$38.7 Bn while US listed funds experienced net outflows of US$131.5 Bn. Figure 14: Global mutual fund flows (excluding ETFs) Region (US$ Bn) 2005 2006 2007 2008 YTD-SEP 09 Asia Pacific (ex-Japan) 48.3 75.9 325.3 15.3 11.6 Japan 67.7 91.0 87.8 14.6 13.7 Europe 232.2 134.2 -120.4 -344.1 80.8 International/Offshore 318.2 337.4 238.3 -240.9 38.7 US 269.5 448.9 869.1 434.0 -131.5 Total 936.0 1,087.3 1,400.0 -121.1 13.3 Source: Strategic Insight Simfund Global. Globally, ETFs have seen US$93.8 Bn net new inflows during the first nine months of 2009 according to data from Strategic Insight. US listed ETFs were the most popular with US$64.0 Bn net inflows, followed by International/Offshore (which includes Dublin and Luxembourg) with US$21.1 Bn while Japanese listed ETFs experienced outflows of US$3.4Bn. Figure 15: Global ETF fund flows Region (US$ Bn) 2005 2006 2007 2008 YTD-SEP 09 Asia Pacific (ex-Japan) 1.9 1.2 2.4 16.3 2.5 Japan -4.9 2.3 3.1 3.1 -3.4 Europe 9.3 14.5 6.9 34.2 9.6 International/Offshore 5.1 7.6 17.8 42.9 21.1 US 53.7 68.6 149.3 175.8 64.0 Total 65.2 94.2 179.5 272.3 93.8 Includes ETFs of all legal structures (open-end, UIT, Grantor Trusts, Partnerships) and Exchange Traded Notes. Source: Strategic Insight Simfund Global.

Net New Flows US$ Bn




ETFs IN EUROPE In Europe there were 801 ETFs, assets of US$205.54 Bn, with 2,001 listings from 32 providers on 18 exchanges at the end of October 2009. European ETF AUM has increased by 44.2% while the MSCI Europe Index is up 25.5% YTD in US dollar terms. In Europe net sales of mutual funds (excluding ETFs) were US$177.7 Bn while net sales of ETFs domiciled in Europe were US$28.6 Bn during the first nine months of 2009 according to Lipper FMI. ETFs providing exposure to fixed income are the most popular with 24.4% of assets followed by ETFs covering European country indices with 17.1% of the assets in Europe. YTD 193 new ETFs were launched in Europe with a further 56 planned, while 24 ETFs were closed.

iShares is the largest provider of ETFs in Europe in terms of both number of products, 168, and AUM of US$80.20 Bn, reflecting 39.0% market share; Lyxor Asset Management is second with 118 products and US$41.94 Bn, a 20.4% market share. db x-trackers is third with 113 products and assets of US$34.53 Bn and a 16.8% market share. Additionally, there were 150 Exchange Traded Products (ETPs), assets of US$17.96 Bn, with 405 listings from five providers on six exchanges. YTD ETP assets in Europe increased by 153.4% to US$17.96 Bn at the end of October 2009. 11 April 2009 marked the ninth anniversary of ETFs in Europe. Since the launch of the first ETFs in Europe in April 2000 the rate of growth in terms of assets, number of products and providers has been greater than the experience of ETFs in the early years in the US.

Figure 16: ETF listings in Europe, as at end October 2009

Austria Germany Italy Spain United Kingdom P Listings: 1 P Listings: 329 P Listings: 14 P Listings: 10 P Listings: 136 T Listings: 21 T Listings: 590 T Listings: 319 T Listings: 32 T Listings: 328 Providers: 1 Providers: 9 Providers: 4 Providers: 2 Providers: 6 AUM: US$0.09 Bn AUM: US$88.43 Bn AUM: US$1.65 Bn AUM: US$2.34 Bn AUM: US$42.58 Bn

Belgium Greece Netherlands Sweden P Listings: 1 P Listings: 2 P Listings: 5 P Listings: 9 T Listings: 1 T Listings: 2 T Listings: 93 T Listings: 9 Providers: 1 Providers: 2 Providers: 3 Providers: 2 AUM: US$0.07 Bn AUM: US$0.14 Bn AUM: US$0.22 Bn AUM: US$2.17 Bn

Finland Hungary Norway Switzerland P Listings: 1 P Listings: 1 P Listings: 6 P Listings: 40 T Listings: 1 T Listings: 1 T Listings: 6 T Listings: 182 Providers: 1 Providers: 1 Providers: 2 Providers: 4 AUM: US$0.18 Bn AUM: US$0.02 Bn AUM: US$0.65 Bn AUM: US$16.94 Bn

France Ireland Slovenia Turkey P Listings: 222 P Listings: 14 P Listings: 1 P Listings: 9 T Listings: 392 T Listings: 14 T Listings: 1 T Listings: 9 Providers: 7 Providers: 2 Providers: 1 Providers: 4 AUM: US$49.72 Bn AUM: US$0.15 Bn AUM: US$0.01 Bn AUM: US$0.19 Bn P Listings = # Primary listings T Listings = # Total listings Providers = # Primary ETF Providers AUM = Assets Under Management Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

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Figure 17: European listed ETF and ETP asset growth Assets (US$ Bn) 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q2-09 Q3-09 OCT-09 ETF Assets Total $0.7 $5.7 $10.7 $20.4 $34.0 $54.9 $89.7 $128.5 $142.6 $165.8 $204.2 $205.5 ETF Equity Assets $0.7 $5.7 $10.7 $19.4 $31.0 $49.3 $75.7 $103.5 $96.6 $112.5 $144.8 $144.0 ETF Fixed Income Assets $1.0 $2.9 $5.2 $12.1 $21.0 $41.1 $44.5 $48.7 $50.3 ETF Commodity Assets $0.4 $2.0 $3.3 $4.7 $8.6 $10.3 $10.9 ETP Assets $1.10 $2.08 $4.88 $7.09 $12.78 $16.35 $17.96 ETF/ETP Assets Total $56.0 $91.8 $133.3 $149.7 $178.6 $220.6 $223.5 # ETFs 6 71 118 104 114 165 273 423 632 713 783 801 # ETPs 2 32 56 124 148 148 150 # ETFs/ETPs Total 6 71 118 104 114 167 305 479 756 861 931 951 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.




iShares, 29.7%

Lyxor AM, 27.7%

db x-trackers, 23.3%

XACT Fonder, 6%

Commerzbank, 3.4%

Others, 9.8%

Figure 18: ETF providers in Europe ranked by AUM, as at end October 2009

OCT-09 YTD CHANGE AUM # AUM % % MARKET PROVIDER # ETFs (US$ BN) % TOTAL PLANNED # ETFs % ETFs (US$ BN) AUM SHARE iShares 168 $80.20 39.0% 1 23 15.9% $24.31 43.5% -0.18% Lyxor Asset Management 118 $41.94 20.4% 0 -13 -9.9% $7.54 21.9% -3.72% db x-trackers 113 $34.53 16.8% 0 20 21.5% $10.57 44.1% -0.01% Credit Suisse Asset Management 24 $7.81 3.8% 0 16 200.0% $1.87 31.4% -0.37% Zurich Cantonal Bank 4 $6.35 3.1% 0 0 0.0% $3.05 92.5% 0.78% EasyETF 64 $5.90 2.9% 2 10 18.5% $1.44 32.1% -0.26% ETFlab Investment 30 $5.04 2.5% 0 20 200.0% $2.52 100.0% 0.68% Commerzbank 62 $4.96 2.4% 8 12 24.0% $2.36 91.2% 0.59% Credit Agricole Structured AM 63 $4.21 2.0% 0 39 162.5% $2.35 126.3% 0.74% UBS Global Asset Management 12 $2.98 1.5% 0 4 50.0% $1.58 113.2% 0.47% XACT Fonder 10 $2.57 1.3% 0 0 0.0% $1.05 69.4% 0.19% Source Markets 31 $2.40 1.2% 21 31 100.0% $2.40 100.0% 1.17% BBVA Asset Management 8 $2.23 1.1% 0 0 0.0% $0.14 6.9% -0.38% State Street Global Advisors 13 $1.40 0.7% 0 0 0.0% $0.25 21.4% -0.13% PowerShares 19 $0.90 0.4% 1 1 5.6% $0.44 94.2% 0.11% ABN Amro 10 $0.73 0.4% 21 0 0.0% $0.50 217.1% 0.19% ETF Securities 21 $0.26 0.1% 0 8 61.5% $0.24 1361.1% 0.11% DnB NOR Asset Management 3 $0.25 0.1% 0 0 0.0% $0.16 167.8% 0.06% JPM Structured Fund Management 6 $0.20 0.1% 0 0 0.0% -$0.04 -15.2% -0.07% Seligson & Co Fund Management 1 $0.18 0.1% 0 0 0.0% $0.07 67.7% 0.01% Alpha Asset Management 1 $0.13 0.1% 0 0 0.0% $0.05 62.6% 0.01% Finans Portfoy Yonetimi 6 $0.11 0.1% 0 1 20.0% $0.00 0.4% -0.02% Is Investment 1 $0.08 0.0% 0 0 0.0% $0.08 100.0% 0.04% Beta1 ETFund 3 $0.06 0.0% 0 0 0.0% -$0.02 -26.1% -0.03% HSBC 2 $0.05 0.0% 0 2 100.0% $0.05 100.0% 0.02% Bank of Ireland AM 1 $0.03 0.0% 0 0 0.0% $0.00 18.0% 0.00% OTP Fund Management 1 $0.02 0.0% 0 0 0.0% $0.01 64.4% 0.00% NBG Asset Management 1 $0.01 0.0% 1 1 100.0% $0.01 100.0% 0.01% Medvesek Pusnik AM 1 $0.01 0.0% 0 0 0.0% $0.00 14.3% 0.00% HQ Fonder 2 $0.00 0.0% 0 2 100.0% $0.00 100.0% 0.00% Bizim Menkul Degerler 1 $0.00 0.0% 0 0 0.0% $0.00 -53.6% 0.00% Ak Securities 1 $0.00 0.0% 0 0 0.0% $0.00 0.0% 0.00% Kaupthing Bank Asset Management 0 $0.00 0.0% 0 -1 -100.0% $0.00 -100.0% 0.00% SPA ETF International 0 $0.00 0.0% 0 -7 -100.0% -$0.02 -100.0% -0.02% Amas Bank - - - 1 - - - - - Total 801 $205.54 100.0% 56 169 26.7% $62.96 44.2% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 19: Top five European ETF providers by average daily US dollar turnover, as at end October 2009 AVERAGE DAILY TURNOVER (US$ MN) % MARKET % MARKET CHANGE % PROVIDER DEC-08 SHARE OCT-09 SHARE (US$ MN) CHANGE iShares $812.1 36.3% $891.9 29.7% $79.8 9.8% Lyxor AM $535.0 23.9% $830.3 27.7% $295.3 55.2% db x-trackers $502.9 22.5% $699.7 23.3% $196.7 39.1% XACT Fonder $156.7 7.0% $180.1 6.0% $23.4 14.9% Commerzbank $33.5 1.5% $100.9 3.4% $67.4 201.3% Others $197.6 8.8% $295.2 9.8% $97.6 49.4% Total $2,237.8 100.0% $2,998.1 100.0% $760.3 34.0% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 20: ETP providers in Europe ranked by assets, as at end October 2009 OCT-09 YTD CHANGE ASSETS # ASSETS % % MARKET PROVIDER # ETPs (US$ BN) % TOTAL PLANNED # ETPs % ETPs (US$ BN) ASSETS SHARE ETF Securities 123 $14.21 79.1% 15 0 0.0% $7.24 103.8% -19.2% Julius Baer 1 $2.21 12.3% 0 0 0.0% $2.09 1,775.6% 10.7% Credit Suisse Asset Management 1 $1.21 6.7% 0 1 100.0% $1.21 100.0% 6.7% Source Markets 24 $0.24 1.3% 0 24 100.0% $0.24 100.0% 1.3% Lyxor 1 $0.10 0.6% 0 1 100.0% $0.10 100.0% 0.6% Total 150 $17.96 100.0% 15 26 21.0% $10.87 153.4% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 21: Top 10 ETFs in Europe by AUM, as at end October 2009 AUM ADV ADV ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) Lyxor DJ Euro STOXX 50 MSE FP $6,957 2,436 $113 iShares DJ EURO STOXX 50 (DE) SX5EEX GY $6,110 1,582 $67 iShares S&P 500 IUSA LN $5,945 4,229 $45 iShares FTSE 100 ISF LN $5,648 10,050 $85 iShares DJ Euro STOXX 50 EUN2 GY $5,366 1,227 $52 ZKB Gold ETF (CHF) ZGLD SW $5,006 10 $18 iShares ! Corporate Bond IBCS GY $4,794 174 $31 Lyxor CAC 40 CAC FP $4,296 1,083 $61 Xmtch (CH) on SMI XMSMI SW $3,963 344 $21 iShares DAX® (DE) DAXEX GY $3,696 2,067 $161 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 22: Top 10 ETFs in Europe by average daily US dollar trading volume, as at end October 2009 ADV ADV AUM ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) iShares DAX® (DE) DAXEX GY $161 2,067 $3,696 db x-trackers FTSE 100 ETF XUKX GY $146 816 $409 Lyxor DJ Euro STOXX 50 MSE FP $113 2,436 $6,957 db x-trackers DAX ETF XDAX GY $100 1,192 $1,787 iShares FTSE 100 ISF LN $85 10,050 $5,648 db x-trackers ShortDAX ETF XSDX GY $78 756 $1,188 db x-trackers Euro Stoxx 50 ETF XESX GY $73 1,666 $3,424 iShares DJ EURO STOXX 50 (DE) SX5EEX GY $67 1,582 $6,110 Lyxor CAC 40 CAC FP $61 1,083 $4,296 Lyxor ETF DAX LYXDAX GY $59 713 $524 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 23: Top 10 ETFs in Europe with largest change in AUM, as at end October 2009 AUM (US$ MN) AUM (US$ MN) CHANGE ETF TICKER OCT-09 DEC-08 (US$ MN) db x-trackers II EONIA Total Return Index ETF XEON GY $3,039 $6,941 -$3,901 iShares ! Corporate Bond IBCS GY $4,794 $2,211 $2,583 ZKB Gold ETF (CHF) ZGLD SW $5,006 $2,736 $2,270 iShares FTSE 100 ISF LN $5,648 $3,921 $1,727 iShares MSCI Emerging Markets IEEM LN $2,670 $970 $1,700 iShares DJ EURO STOXX 50 (DE) SX5EEX GY $6,110 $4,591 $1,520 db x-trackers Euro Stoxx 50 ETF XESX GY $3,424 $1,932 $1,492 db x-trackers MSCI Emerging Market TRN Index XMEM GY $2,822 $1,477 $1,345 Lyxor ETF Euro Cash (EONIA) CSH FP $2,180 $3,379 -$1,199 iShares S&P 500 IUSA LN $5,945 $4,794 $1,151 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 24: European ETF assets by type of exposure, as at end October 2009 OCT-09 YTD CHANGE AUM AUM % % MARKET EXPOSURE # ETFs (US$ BN) % TOTAL # ETFs % ETFs (US$ BN) AUM SHARE Equity - Total 572 $138.47 67.4% 93 19.4% $45.06 48.2% 1.9% Country Exposure Europe - Equity 85 $35.11 17.1% 14 19.7% $8.77 33.3% -1.4% Regional Exposure Eurozone - Equity 34 $29.65 14.4% 7 25.9% $5.81 24.4% -2.3% Emerging Markets - Equity 84 $18.79 9.1% 11 15.1% $11.30 150.8% 3.9% Regional Exposure Europe - Equity 47 $10.98 5.3% 15 46.9% $4.00 57.3% 0.4% Country Exposure United States - Equity 36 $10.72 5.2% 1 2.9% $2.31 27.5% -0.7% International - Equity 54 $9.97 4.8% 8 17.4% $3.48 53.5% 0.3% European Sector Exposure - Equity 126 $9.58 4.7% 22 21.2% $4.14 75.9% 0.8% Global Exposure - Equity 46 $7.41 3.6% 6 15.0% $3.00 68.0% 0.5% Style - Equity 41 $4.24 2.1% 9 28.1% $1.61 61.3% 0.2% Eurozone Sector Exposure - Equity 18 $2.00 1.0% 0 0.0% $0.63 46.3% 0.0% US Sector Exposure - Equity 1 $0.02 0.0% 0 0.0% $0.02 482.6% 0.0% Fixed Income 146 $50.08 24.4% 62 73.8% $9.22 22.6% -4.3% Commodities 26 $10.93 5.3% 3 13.0% $6.19 130.6% 2.0% Inverse 27 $3.14 1.5% 6 28.6% $1.41 81.2% 0.3% Leveraged Inverse 7 $1.24 0.6% 2 40.0% $0.46 59.8% 0.1% Leveraged 12 $1.16 0.6% 1 9.1% $0.51 78.7% 0.1% Currency 6 $0.33 0.2% 0 0.0% $0.03 9.8% -0.1% Alternative 4 $0.12 0.1% 2 100.0% $0.03 26.0% 0.0% Mixed (Equity & Fixed Income) 1 $0.07 0.0% 0 0.0% $0.05 365.0% 0.0% Total 801 $205.54 100.0% 169 26.7% $62.96 44.2%

Fixed Income, 24.4%Country Exposure Europe - Equity, 17.1%

Regional Exposure Eurozone - Equity, 14.4%

Emerging Markets - Equity, 9.1%

Regional Exposure Europe - Equity, 5.3%Commodities, 5.3%

Country Exposure United States - Equity, 5.2%

International - Equity, 4.8%European Sector Exposure - Equity, 4.7%

Global Exposure - Equity, 3.6%Style - Equity, 2.1%

Inverse, 1.5%Eurozone Sector Exposure - Equity, 1%Leveraged Inverse, 0.6%

Leveraged, 0.6%Currency, 0.2%

Alternative, 0.1%Mixed (Equity & Fixed Income), 0%

US Sector Exposure - Equity, 0%




0

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According to European Fund and Asset Management Association (EFAMA), UCITS posted net inflows of !30 Bn in the second quarter of 2009. Net inflows have now been positive for two quarters in a row, following 18 months of net withdrawals from UCITS. This development reflected net inflows of !60 Bn into equity, bond and balanced funds in the second quarter, compared to net outflows of !18 Bn in the first quarter. The stock market rally and less stressed financial market conditions have ignited greater investor confidence since mid March, leading to gradual portfolio asset allocation shifts towards more stocks and fixed income securities-oriented investments. Confirming this evolution in investor sentiment, net inflows into money market funds turned significantly negative in the second quarter. Figure 25: Net assets of European investment funds Assets (! Bn) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q2-09 Total Assets 4,156 4,561 4,619 4,296 4,835 5,373 6,569 7,574 7,924 6,123 6,378 UCITS Assets 3,195 3,550 3,619 3,346 3,785 4,212 5,172 5,974 6,201 4,575 4,788 Non-UCITS Assets 961 1,011 1,000 950 1,050 1,161 1,397 1,600 1,723 1,548 1,590 Total # Funds 43,212 44,342 47,341 51,166 53,806 52,748 # UCITS Funds 30,167 30,837 33,600 36,079 37,643 36,935 # Non-UCITS Funds 9,345 13,505 13,741 15,087 16,163 15,813 Source: European Fund and Asset Management Association (EFAMA, formerly FEFSI). 2008 Q2-09 YTD CHANGE

COUNTRY # FUNDS ! MN US$ MN % SHARE # FUNDS ! MN US$ MN % SHARE # FUNDS ! MN % SHARE Austria 2,307 127,729 177,761 2.1% 2,267 129,156 182,549 2.0% -40 1,427 -0.1% Belgium 1,924 92,822 129,181 1.5% 1,994 84,311 119,165 1.3% 70 -8,511 -0.2% Bulgaria 82 164 229 0.0% 85 155 218 0.0% 3 -9 0.0% Czech Republic 107 4,495 6,255 0.1% 110 4,163 5,885 0.1% 3 -332 0.0% Denmark 789 97,788 136,092 1.6% 829 94,962 134,219 1.5% 40 -2,826 -0.1% Finland 522 41,338 57,530 0.7% 510 45,564 64,400 0.7% -12 4,226 0.0% France 12,232 1,293,265 1,799,837 21.1% 11,759 1,359,973 1,922,186 21.3% -473 66,708 0.2% Germany 6,052 911,330 1,268,298 14.9% 5,971 934,795 1,321,239 14.7% -81 23,465 -0.2% Greece 279 10,324 14,368 0.2% 254 9,859 13,935 0.2% -25 -465 0.0% Hungary 412 9,473 13,184 0.2% 408 9,079 12,832 0.1% -4 -394 0.0% Ireland 5,025 647,054 900,505 10.6% 5,030 671,915 949,685 10.5% 5 24,861 0.0% Italy 1,132 246,981 343,723 4.0% 1,071 240,865 340,438 3.8% -61 -6,116 -0.3% Liechtenstein 508 15,246 21,218 0.2% 520 20,651 29,188 0.3% 12 5,405 0.1% Luxembourg 12,325 1,559,653 2,170,569 25.5% 12,172 1,631,256 2,305,617 25.6% -153 71,603 0.1% Netherlands 522 67,504 93,945 1.1% 522 69,200 97,807 1.1% 0 1,696 0.0% Norway 530 29,573 41,157 0.5% 536 36,937 52,207 0.6% 6 7,364 0.1% Poland 436 17,446 24,279 0.3% 462 17,060 24,112 0.3% 26 -386 0.0% Portugal 523 25,054 34,868 0.4% 529 25,234 35,666 0.4% 6 180 0.0% Romania 68 1,701 2,367 0.0% 69 1,839 2,600 0.0% 1 138 0.0% Slovakia 124 3,278 4,562 0.1% 121 3,122 4,412 0.0% -3 -156 0.0% Slovenia 132 1,872 2,605 0.0% 131 2,032 2,872 0.0% -1 160 0.0% Spain 3,014 203,498 283,209 3.3% 2,836 193,523 273,525 3.0% -178 -9,975 -0.3% Sweden 565 86,624 120,555 1.4% 564 97,746 138,154 1.5% -1 11,122 0.1% Switzerland 777 157,040 218,553 2.6% 687 145,062 206,981 2.3% -90 -11,978 -0.3% Turkey 357 13,293 18,500 0.2% 333 15,343 21,686 0.2% -24 2,050 0.0% United Kingdom 3,062 458,116 637,560 7.5% 2,978 534,527 755,501 8.4% -84 76,411 0.9% All Funds 53,806 6,122,663 8,520,910 100.0% 52,748 6,378,327 9,017,078 100.0% -1,058 255,664 0.0% UCITS 37,643 4,574,799 6,366,747 74.7% 36,935 4,788,161 6,769,537 75.1% -708 213,362 0.4% Non-UCITS 16,163 1,547,864 2,154,163 25.3% 15,813 1,590,166 2,247,541 24.9% -350 42,302 -0.4% Source: European Fund and Asset Management Association (EFAMA, formerly FEFSI).

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In Europe, open-end mutual funds (excluding ETFs) have seen US$177.7 Bn net new inflows during the first nine months of 2009 according to data from Lipper FMI. Equity funds have been the most popular with US$85.8 Bn net inflows, followed by bond funds with US$61.2 Bn net inflows, while enhanced money market funds experienced net outflows of US$11.5 Bn. Figure 26: European mutual fund flows (excluding ETFs) Exposure (US$ Bn) 2002 2003 2004 2005 2006 2007 2008 YTD-SEP 09 Bond 9.8 87.5 60.8 158.7 -17.0 -109.3 -260.7 61.2 Equity 31.8 65.9 72.8 120.4 124.4 -32.3 -229.2 85.8 Mixed -26.0 -10.0 7.9 44.0 54.7 40.4 -60.6 21.0 Money Market 104.8 73.4 29.4 46.0 122.9 178.1 138.0 16.8 Money Market-Enhanced 1.7 14.5 15.6 36.4 46.0 -35.9 -59.5 -11.5 Other 29.0 58.7 46.8 40.5 67.5 63.6 -23.1 4.3 Total 151.2 290.1 233.2 445.9 398.5 104.7 -495.1 177.7 Source: Lipper FMI. In Europe, ETFs have seen US$28.6 Bn net new inflows during the first nine months of 2009 according to data from Lipper FMI. Equity funds have been the most popular with US$18.7 Bn net inflows, followed by bond funds with US$8.9 Bn net inflows, while money market funds experienced net outflows of US$4.9 Bn. Figure 27: European ETF fund flows Exposure (US$ Bn) 2002 2003 2004 2005 2006 2007 2008 YTD-SEP 09 Bond 1.7 0.1 3.0 2.3 4.7 2.4 8.2 8.9 Equity 7.1 4.0 8.8 10.1 13.1 14.5 54.3 18.7 Mixed 0.1 -0.0 0.0 -0.0 0.1 Money Market 3.4 11.0 -4.9 Other 0.6 1.6 0.8 3.1 5.7 Total 8.8 4.1 11.8 13.1 19.4 21.0 76.5 28.6 Source: Lipper FMI.





Figure 28: Average expenses of ETFs versus open-end mutual funds in Europe AVERAGE EXPOSURE TER (bps) Exchange Traded Funds* Alternative 65 Commodities 45 Country Exposure Europe - Equity 28 Country Exposure United States - Equity 38 Currency 19 European Sector Exposure - Equity 37 Eurozone Sector Exposure - Equity 43 Fixed Income 16 Global Exposure - Equity 49 International/Emerging Markets - Equity 63 Inverse 41 Leveraged 55 Leveraged Inverse 61 Mixed (Equity & Fixed Income) 72 Regional Exposure Europe - Equity 35 Regional Exposure Eurozone - Equity 23 Style - Equity 37 US Sector Exposure - Equity 72 Total – Equity ETFs 37 Total – Fixed Income ETFs 16 Total – All 31 Open-End Mutual Funds** Passive/Indexed European Equity 87 Passive/Indexed International Equity 84 Passive/Indexed Fixed Income 47 Actively Managed European Equity 175 Actively Managed International Equity 173 Actively Managed Fixed Income 101 *As at end February 2009. **Captured from Morningstar on 20 March 2009. Source: Morningstar, ETF Research and Implementation Strategy Team, BlackRock. Figure 29: European exchange ETF statistics, as at end October 2009 TURNOVER IN ! MN AVERAGE DAILY TURNOVER IN ! MN EXCHANGE OCT-09 DEC-08 % CHANGE % MARKET SHARE OCT-09 DEC-08 % CHANGE % MARKET SHARE Deutsche Boerse 15,158.2 12,405.4 22.2% 33.9% 689.0 590.3 16.7% 33.9% NYSE Euronext 8,006.7 5,489.4 45.9% 17.9% 363.9 261.4 39.2% 17.9% NYSE Euronext Paris 6,854.4 5,120.0 33.9% 15.3% 311.6 243.8 27.8% 15.3% NYSE Euronext Amsterdam 1,132.3 364.4 210.7% 2.5% 51.5 17.4 196.6% 2.5% NYSE Euronext Brussels 20.0 5.0 300.3% 0.0% 0.9 0.2 282.1% 0.0% Borsa Italiana 5,610.8 4,223.3 32.9% 12.6% 255.0 222.3 14.7% 12.5% London Stock Exchange 4,974.8 3,036.0 63.9% 11.1% 226.1 144.6 56.4% 11.1% SIX Swiss Exchange 2,248.2 1,792.7 25.4% 5.0% 102.2 85.9 18.9% 5.0% Stockholm Stock Exchange 1,295.5 1,701.7 -23.9% 2.9% 58.9 81.6 -27.8% 2.9% Oslo Stock Exchange 1,562.1 646.8 141.5% 3.5% 71.0 34.0 108.6% 3.5% Istanbul Stock Exchange 510.0 250.0 104.0% 1.1% 25.5 13.2 93.8% 1.3% Bolsa De Madrid 315.5 231.6 36.2% 0.7% 14.3 12.2 17.6% 0.7% Helsinki Stock Exchange 29.3 54.1 -45.7% 0.1% 1.3 2.8 -53.1% 0.1% Boerse Stuttgart 15.6 N/A N/A 0.0% 0.7 N/A N/A 0.0% Budapest Stock Exchange 20.6 1.6 1,216.3% 0.0% 1.0 0.1 11,53.6% 0.0% Athens Exchange 6.4 1.7 100.0% 0.0% 0.3 0.1 100.0% 0.0% Wiener Borse 5.4 8.7 -37.8% 0.0% 0.3 0.5 -46.7% 0.0% Irish Stock Exchange 2.3 3.2 -28.5% 0.0% 0.1 0.2 -31.8% 0.0% Ljubljana Stock Exchange 0.0 0.0 -99.3% 0.0% 0.0 0.0 -99.3% 0.0% Chi-X (not an official exchange) 786.7 211.0 272.9% 1.8% 35.8 10.0 255.9% 1.8% European reported OTC 4,151.3 2,985.4 39.1% 9.3% 188.7 142.2 32.7% 9.3% European ETF Market 44,699 33,043 35.3% 100.0% 2,034.18 1,601 27.0% 100.0% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 30: European exchange accumulated turnover market share, 2009 # TOTAL ETF EXCHANGE LISTINGS JAN-09 FEB-09 MAR-09 APR-09 MAY-09 JUN-09 JUL-09 AUG-09 SEP-09 OCT-09 NOV-09 DEC-09 Deutsche Boerse 539 30.3% 26.7% 31.4% 31.0% 31.2% 32.0% 34.2% 37.3% 37.2% 33.9%

NYSE Euronext 486 20.3% 18.1% 19.0% 18.4% 19.5% 20.2% 20.3% 17.3% 16.2% 17.9%

NYSE Euronext Paris 392 18.3% 16.0% 16.8% 16.1% 16.6% 17.4% 17.6% 14.6% 13.8% 15.3%

NYSE Euronext Amsterdam 93 2.0% 2.1% 2.1% 2.2% 2.8% 2.8% 2.6% 2.7% 2.3% 2.5%

NYSE Euronext Brussels 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Borsa Italiana 319 10.5% 10.7% 12.7% 11.7% 12.6% 11.5% 10.9% 11.0% 11.5% 12.6%

London Stock Exchange 328 13.5% 20.8% 12.8% 11.3% 11.4% 11.2% 11.8% 11.0% 10.8% 11.1%

SIX Swiss Exchange 182 4.7% 5.6% 5.2% 5.3% 5.0% 5.1% 5.1% 5.4% 5.1% 5.0%

Oslo Stock Exchange 6 4.9% 3.1% 3.0% 3.5% 4.7% 3.8% 2.7% 4.0% 3.4% 3.5%

Stockholm Stock Exchange 9 5.5% 7.1% 5.9% 6.8% 5.0% 4.5% 2.7% 3.6% 2.9% 2.9%

Istanbul Stock Exchange 9 1.2% 1.0% 1.0% 2.3% 2.2% 1.9% 1.4% 2.0% 1.2% 1.1%

Bolsa De Madrid 32 0.7% 0.7% 0.4% 0.7% 0.4% 1.3% 0.9% 0.6% 0.6% 0.7%

Helsinki Stock Exchange 1 0.1% 0.1% 0.1% 0.2% 0.1% 0.1% 0.0% 0.1% 0.2% 0.1%

Boerse Stuttgart 51 0.0% 0.0% 0.5% 0.7% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0%

Budapest Stock Exchange 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Athens Exchange 2 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Wiener Borse 21 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Irish Stock Exchange 14 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Ljubljana Stock Exchange 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

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Chi-X (not an official exchange) 1.5% 1.4% 0.8% 0.9% 1.0% 1.4% 1.3% 1.4% 1.7% 1.8%

European reported OTC 6.7% 4.5% 7.1% 7.2% 6.9% 7.0% 8.5% 6.0% 9.1% 9.3% TOTAL 2,001 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 31: European exchange accumulated turnover market share, 2008 # TOTAL ETF EXCHANGE LISTINGS JAN-08 FEB-08 MAR-08 APR-08 MAY-08 JUN-08 JUL-08 AUG-08 SEP-08 OCT-08 NOV-08 DEC-08 Deutsche Boerse 404 33.6% 34.1% 32.5% 37.7% 35.8% 32.9% 34.5% 36.5% 35.0% 37.3% 35.4% 37.7% NYSE Euronext 390 33.4% 31.9% 28.4% 23.1% 23.8% 25.9% 25.2% 23.4% 27.6% 22.0% 20.1% 16.7% Borsa Italiana 255 9.2% 11.1% 13.9% 13.6% 14.8% 17.0% 16.6% 13.7% 11.9% 10.8% 11.5% 12.8% London Stock Exchange 272 7.2% 8.8% 8.6% 9.2% 11.4% 9.1% 9.8% 11.3% 9.5% 10.2% 9.4% 9.2% SIX Swiss Exchange 126 4.2% 3.8% 5.1% 4.1% 4.3% 4.4% 4.1% 4.2% 4.6% 7.5% 6.1% 5.1% Stockholm Stock Exchange 7 5.1% 5.3% 6.2% 6.3% 4.0% 4.0% 4.9% 6.4% 6.4% 5.3% 5.7% 4.7% Oslo Stock Exchange 6 0.2% 1.1% 1.3% 2.0% 2.4% 1.4% 1.7% 1.7% 2.5% 2.4% 3.4% 2.0% Istanbul Stock Exchange 6 1.3% 1.7% 1.6% 1.6% 1.7% 1.4% 1.1% 1.4% 1.1% 0.8% 1.1% 0.8% Bolsa De Madrid 25 4.8% 1.4% 0.9% 1.6% 1.1% 3.4% 1.5% 0.8% 0.7% 2.5% 0.7% 0.7% SWX Europe 20 0.4% 0.5% 0.7% 0.3% 0.4% 0.4% 0.4% 0.4% 0.3% 0.5% 0.4% 0.3% Helsinki Stock Exchange 2 0.1% 0.0% 0.6% 0.0% 0.0% 0.0% 0.1% 0.1% 0.3% 0.3% 0.2% 0.2% Wiener Borse 21 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% Irish Stock Exchange 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Athens Exchange 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Budapest Stock Exchange 1 0.2% 0.2% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% Ljubljana Stock Exchange 1 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Iceland Stock Exchange 1 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Chi-X (not an official exchange) - - - - - - - - - 0.4% 6.1% 0.6% European reported OTC N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 9.1% TOTAL 1,539 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



ETFs IN NORTH AMERICA In the US there were 732 ETFs, assets of US$640 Bn, from 25 providers on three exchanges at the end of October 2009. ETF AUM in US listed ETFs increased by 28.7% YTD to US$639.58 Bn, which is more than the 15.3% rise in the MSCI US Index in US dollar terms. YTD 76 new ETFs have been launched in the US with another 678 new ETFs in the pipeline, while 42 have been delisted. iShares is the leading ETF provider in the US, based on both the number of products, 183, and AUM of US$341.21 Bn, a 53.3% market share, followed by State Street Global Advisors with 87 ETFs and AUM of US$126.12 Bn, a 19.7% market share. Additionally, there were 137 other ETPs listed in the US with assets of US$78.86 Bn, from 18 providers on one exchange at the end of October 2009.

29 January 2009 marked the 16th anniversary of ETFs in the US. Since the launch of the SPDR S&P 500 (SPY US) on 29 January 1993, it has grown to be the largest ETF globally and the most liquid equity security traded anywhere in the world. FINRA, the Financial Industry Regulatory Authority which regulates all securities firms doing business in the US, issued a regulatory notice in June 2009 to provide guidance on leveraged and inverse ETFs. 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.

Figure 32: ETF listings in North America, as at end October 2009

Canada United States P Listings: 105 P Listings: 732 T Listings: 126 T Listings: 732 Providers: 4 Providers: 25 AUM: US$25.92 Bn AUM: US$639.58 Bn P Listings = # Primary listings T Listings = # Total listings Providers = # Primary ETF Providers AUM = Assets Under Management Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

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Figure 33: US listed ETF and ETP asset growth Assets (US$ Bn) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q2-09 Q3-09 OCT-09 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 $537.9 $631.4 $639.6

ETP Assets $2.0 $5.0 $3.8 $4.0 $6.1 $8.9 $14.4 $25.9 $40.5 $45.3 $69.6 $75.3 $78.9 ETF/ETP Total Assets $0.5 $0.4 $1.1 $2.4 $6.7 $15.6 $35.8 $70.6 $88.4 $106.3 $156.8 $236.6 $313.8 $432.8 $621.2 $542.5 $607.5 $706.7 $718.4 # ETFs 1 1 2 19 19 29 30 81 101 113 117 152 201 343 601 698 697 721 732

# ETPs 2 14 17 17 17 17 20 37 71 136 136 137 137 # ETFs/ETPs Total 1 1 2 19 19 29 32 95 118 130 134 169 221 380 672 834 833 858 869





Figure 34: ETF providers in the US ranked by AUM, as at end October 2009 OCT-09 YTD CHANGE AUM # AUM % % MARKET PROVIDER # ETFs (US$ BN) % TOTAL PLANNED # ETFs % ETFs (US$ BN) AUM SHARE iShares 183 $341.21 53.3% 22 8 4.6% $88.39 35.0% 2.5% State Street Global Advisors 87 $126.12 19.7% 26 8 10.1% -$11.79 -8.6% -8.0% Vanguard 39 $80.72 12.6% 8 1 2.6% $35.57 78.8% 3.5% Powershares 105 $30.74 4.8% 37 -19 -15.3% $8.92 40.9% 0.4% ProShares 78 $24.51 3.8% 98 14 21.9% $4.19 20.6% -0.3% Van Eck Associates Corp 21 $10.37 1.6% 14 5 31.3% $5.92 133.0% 0.7% Bank of New York 1 $7.79 1.2% 0 0 0.0% $1.11 16.5% -0.1% WisdomTree Investments 51 $5.70 0.9% 68 1 2.0% $2.47 76.6% 0.2% Direxion Shares 22 $4.62 0.7% 112 8 57.1% $3.68 393.5% 0.5% Rydex 31 $2.81 0.4% 82 0 0.0% $0.99 54.4% 0.1% Claymore Securities 35 $2.38 0.4% 12 2 6.1% $1.47 161.5% 0.2% First Trust Advisors 39 $1.60 0.3% 3 1 2.6% $0.86 115.3% 0.1% RevenueShares 6 $0.27 0.0% 8 1 20.0% $0.20 306.6% 0.0% PIMCO 5 $0.20 0.0% 9 5 100.0% $0.20 100.0% 0.0% XShares Advisors 5 $0.17 0.0% 34 0 0.0% $0.04 30.1% 0.0% Fidelity Management & Research 1 $0.12 0.0% 0 0 0.0% $0.04 53.6% 0.0% IndexIQ Advisors 4 $0.08 0.0% 36 4 100.0% $0.08 100.0% 0.0% Jefferies Asset Management 3 $0.06 0.0% 0 3 100.0% $0.06 100.0% 0.0% Emerging Global Advisors 4 $0.03 0.0% 10 4 100.0% $0.03 100.0% 0.0% ALPS ETF Trust 2 $0.02 0.0% 5 1 100.0% $0.02 348.2% 0.0% AdvisorShares 1 $0.02 0.0% 0 1 100.0% $0.02 100.0% 0.0% Grail Advisors 5 $0.01 0.0% 4 5 100.0% $0.01 100.0% 0.0% Global X Funds 2 $0.01 0.0% 17 2 100.0% $0.01 100.0% 0.0% Javelin Investment Management 1 $0.00 0.0% 0 1 100.0% $0.00 100.0% 0.0% OOK Advisors 1 $0.00 0.0% 1 1 100.0% $0.00 100.0% 0.0% Northern Trust 0 $0.00 0.0% 0 -17 -100.0% -$0.03 -100.0% 0.0% SPA ETF International 0 $0.00 0.0% 7 -6 -100.0% -$0.01 -100.0% 0.0% Capital West Securities - - - 1 - - - - - Charles Schwab Investment Management - - - 9 - - - - - Exchange Traded Spreads Trust - - - 4 - - - - - Firsthand Capital - - - 1 - - - - - Factor Advisors - - - 22 - - - - - Florentez Investment - - - 1 - - - - - FocusShares - - - 6 - - - - - Macro Securities Depositor - - - 2 - - - - - Next Investments - - - 1 - - - - - Old Mutual Global Shares - - - 5 - - - - - Pax World Funds - - - 3 - - - - - TXF Funds - - - 1 - - - - - FaithShares - - - 5 - - - - - Total 732 $639.58 100.0% 674 34 4.9% $142.46 28.7% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

Figure 35: Top five US ETF providers by average daily turnover, as at end October 2009 AVERAGE DAILY TURNOVER (US$ MN) % MARKET % MARKET CHANGE % PROVIDER DEC-08 SHARE OCT-09 SHARE (US$ MN) CHANGE SSgA $35,132.8 45.6% $30,228.5 43.8% -$4,904.4 -14.0% iShares $16,451.2 21.4% $17,179.3 24.9% $728.1 4.4% ProShares $17,674.6 22.9% $7,456.1 10.8% -$10,218.5 -57.8% Direxion Shares $1,280.2 1.7% $6,654.9 9.6% $5,374.8 419.8% Powershares $4,029.2 5.2% $4,754.1 6.9% $724.9 18.0% Others $2,460.6 3.2% $2,798.4 4.1% $337.8 13.7% Total $77,028.6 100.0% $69,071.2 100.0% -$7,957.3 -10.3% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

SSgA, 43.8%

iShares, 24.9%

ProShares, 10.8%

Direxion Shares, 9.6%

Powershares, 6.9%

Others, 4.1%



Figure 36: ETP providers in the US ranked by assets, as at end October 2009 OCT-09 YTD CHANGE ASSETS # ASSETS % % MARKET PROVIDER # ETPs (US$ BN) % TOTAL PLANNED # ETPs % ETPs (US$ BN) ASSETS SHARE State Street Global Advisors 1 $37.14 47.1% 0 0 0.0% $15.09 68.4% -1.5% Deutsche Bank 34 $10.16 12.9% 2 -1 -2.9% $5.68 126.7% 3.0% iShares 3 $9.18 11.6% 1 0 0.0% $4.33 89.2% 0.9% United States Commodity Funds 6 $6.26 7.9% 1 1 20.0% $3.12 99.5% 1.0% Barclays (iPath) 30 $5.29 6.7% 3 2 7.1% $2.70 104.4% 1.0% Merrill Lynch 17 $5.05 6.4% 0 0 0.0% $0.04 0.8% -4.6% Rydex 9 $2.91 3.7% 13 0 0.0% $0.48 20.0% -1.7% ProShares 12 $0.80 1.0% 38 0 0.0% $0.63 357.4% 0.6% Swedish Export Credit Corp 7 $0.79 1.0% 0 0 0.0% $0.54 210.9% 0.4% JPMorgan Chase 2 $0.46 0.6% 0 1 100.0% $0.46 100.0% 0.6% ETF Securities 2 $0.34 0.4% 3 2 100.0% $0.34 100.0% 0.4% GreenHaven Commodity Services 1 $0.22 0.3% 0 0 0.0% $0.21 1,180.1% 0.2% HSBC USA 1 $0.08 0.1% 0 0 0.0% $0.05 149.3% 0.0% Goldman Sachs 2 $0.07 0.1% 0 0 0.0% $0.01 22.7% 0.0% Morgan Stanley 4 $0.07 0.1% 0 0 0.0% -$0.01 -9.3% -0.1% Macro Securities Depositor 2 $0.02 0.0% 0 0 0.0% $0.00 -1.8% 0.0% Barclays Capital 3 $0.01 0.0% 0 0 0.0% -$0.09 -89.0% -0.2% Credit Suisse 1 $0.00 0.0% 0 -3 -75.0% $0.00 -64.1% 0.0% Bear Stearns Asset Management 0 $0.00 0.0% 0 -1 -100.0% -$0.05 -100.0% -0.1% Total 137 $78.86 100.0% 61 1 0.7% $33.52 73.9% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 37: Top 10 ETFs in the US by AUM, as at end October 2009 AUM ADV ADV ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) SPDR S&P 500 SPY US $69,228 213,434 $22,829 iShares MSCI Emerging Markets Index Fund EEM US $36,125 89,114 $3,531 iShares MSCI EAFE Index Fund EFA US $34,606 19,558 $1,077 iShares S&P 500 Index Fund IVV US $20,600 3,978 $426 iShares Barclays TIPS Bond Fund TIP US $17,182 1,269 $131 PowerShares QQQ Trust QQQQ US $16,649 109,099 $4,624 Vanguard Emerging Markets VWO US $16,155 10,645 $423 iShares iBoxx $ Investment Grade Corporate Bond Fund LQD US $12,904 1,245 $130 Vanguard Total Stock Market ETF VTI US $12,468 1,822 $98 iShares Russell 2000 Index Fund IWM US $11,255 58,042 $3,481 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 38: Top 10 ETFs in the US by average daily US dollar trading volume, as at end October 2009 ADV ADV AUM ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) SPDR S&P 500 SPY US $22,829 213,434 $69,228 PowerShares QQQ Trust QQQQ US $4,624 109,099 $16,649 iShares MSCI Emerging Markets Index Fund EEM US $3,531 89,114 $36,125 iShares Russell 2000 Index Fund IWM US $3,481 58,042 $11,255 Direxion Daily Financial Bull 3x Shares FAS US $2,796 34,560 $1,361 ProShares UltraShort S&P500® SDS US $1,872 47,446 $3,487 Direxion Daily Financial Bear 3x Shares FAZ US $1,821 89,612 $1,099 iShares MSCI Brazil Index Fund EWZ US $1,671 23,281 $10,820 Financial Select Sector SPDR Fund XLF US $1,637 109,735 $6,873 Energy Select Sector SPDR Fund XLE US $1,320 23,229 $5,635 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



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Figure 39: Top 10 ETFs in the US with largest change in AUM, as at end October 2009 AUM (US$ MN) AUM (US$ MN) CHANGE ETF TICKER OCT-09 DEC-08 (US$ MN) SPDR S&P 500 SPY US $69,228 $93,905 -$24,678 iShares MSCI Emerging Markets Index Fund EEM US $36,125 $19,473 $16,652 Vanguard Emerging Markets VWO US $16,155 $5,037 $11,118 iShares Barclays TIPS Bond Fund TIP US $17,182 $8,902 $8,280 iShares MSCI Brazil Index Fund EWZ US $10,820 $3,544 $7,275 iShares iBoxx $ Investment Grade Corporate Bond Fund LQD US $12,904 $7,237 $5,666 iShares S&P 500 Index Fund IVV US $20,600 $15,624 $4,977 PowerShares QQQ Trust QQQQ US $16,649 $12,521 $4,128 Vanguard Total Stock Market ETF VTI US $12,468 $9,095 $3,373 iShares FTSE/Xinhua China 25 Index Fund FXI US $9,331 $6,000 $3,331 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 40: United States mutual fund industry, as at end October 2009 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 OCT-09 Assets (US$ Bn) 4,468 5,525 6,846 6,965 6,975 6,391 7,414 8,107 8,905 10,413 12,020 9,601 10,688 # Funds 6,684 7,314 7,791 8,156 8,307 8,250 8,126 8,042 7,975 8,117 8,119 8,020 7,762 Source: Investment Company Institute (ICI), ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. In the United States, Bank of New York, Claymore Securities, Emerging Global Advisors, Global X Funds, iShares, PowerShares, ProShares, Rydex, State Street Global Advisors, Van Eck Associates Corp, Vanguard, WisdomTree Investments and XShares Advisors are among the ETF providers who have been granted the exemptive order from the US Securities and Exchange Commission (SEC) permitting mutual funds to invest in their ETFs in excess of the limits of sections 12(d)(1).

Section 12(d)(1) of the Investment Company Act of 1940 prohibits an investment company from 1) acquiring more than 3% of the total outstanding voting securities of another investment company, 2) investing more than 5% of its total assets in a single investment company, and 3) investing more than 10% of its total assets in two or more investment companies. The combined assets of the nation’s 7,762 mutual funds increased by US$1,087 Bn YTD, or 11.3% to US$10.7 trillion in October 2009, according to the Investment Company Institute’s official survey of the mutual fund industry.

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In the US, open-end mutual funds (excluding ETFs) have seen US$131.5 Bn net outflows during the first nine months of 2009 according to data from Strategic Insight. Bond funds were the most popular with US$249.1 Bn net inflows, while the least popular were money market funds and domestic equity funds which experienced net outflows of US$395.1 Bn and US$5.1 Bn respectively. Figure 41: US mutual fund flows (excluding ETFs), as at end September 2009 Exposure (US$ Bn) 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEP-09 Domestic Equity 208.3 80.4 15.2 138.3 134.1 54.0 3.4 -38.1 -138.6 -5.1

International Equity 45.3 -20.0 4.7 36.0 85.8 124.4 158.9 156.6 -58.9 19.5 Bond -47.0 78.6 132.1 36.1 -8.0 27.9 58.0 97.5 22.0 249.1 Money Market 170.6 397.3 -13.0 -222.1 -137.1 63.1 228.6 653.2 609.4 -395.1 Total above 377.1 536.4 139.0 -11.7 74.7 269.5 448.9 869.1 434.0 -131.5 Includes US registered open-end funds (excluding ETFs, ETNs and variable annuities). Source: Strategic Insight Simfund MF. In the US, ETFs have seen US$64.0 Bn net new inflows during the first nine months of 2009 according to data from Strategic Insight. Bond funds were the most popular with US$35.5 Bn net inflows, followed by international equity funds with US$20.9 Bn net inflows, while money market funds were the least popular with US$0.6 Bn net inflows. Figure 42: US ETF fund flows, as at end September 2009

Exposure (US$ Bn) 2000 2001 2002 2003 2004 2005 2006 2007 2008 SEP-09 Domestic Equity 41.9 27.7 36.5 8.4 35.6 24.3 35.7 87.8 133.5 7.0 International Equity 0.7 1.3 3.8 5.7 15.3 23.0 26.7 46.2 19.5 20.9 Bond 0.0 0.0 3.8 0.6 3.6 6.3 5.1 13.1 22.5 35.5 Money Market 0.0 0.0 0.0 0.0 0.0 0.1 1.1 2.2 0.4 0.6 Total 42.6 29.1 44.0 14.7 54.6 53.7 68.6 149.3 175.8 64.0 Includes ETFs of all legal structures (open-end, UIT, Grantor Trusts, Partnerships) and Exchange Traded Notes.

Source: Strategic Insight Simfund MF.





Figure 43: Average expenses of ETFs versus open-end mutual funds in the US AVERAGE EXPOSURE TER (bps) Exchange Traded Funds* Active 64 Broad Market - Equity 17 Commodities 55 Currency 43 Custom 46 Fixed Income 20 Growth - Equity 20 International - Equity 50 Inverse 95 Large-Cap - Equity 12 Leveraged 95 Leveraged Inverse 95 Mid-Cap - Equity 22 Sector - Equity 34 Small-Cap - Equity 20 Value - Equity 21 Total – Equity ETFs 32 Total – Fixed Income ETFs 25 Total – All 31 Open-End Mutual Funds** Passive/Indexed Domestic Equity 78 Passive/Indexed International Equity 86 Passive/Indexed Fixed Income 34 Actively Managed Domestic Equity 141 Actively Managed International Equity 156 Actively Managed Fixed Income 106 *As at end February 2009. **Captured from Morningstar on 20 March 2009. Source: Morningstar, ETF Research and Implementation Strategy Team, BlackRock.



Figure 44: US ETF assets by type of exposure, as at end October 2009 OCT-09 YTD CHANGE AUM AUM % % MARKET EXPOSURE # ETFs (US$ BN) % TOTAL # ETFs % ETFs (US$ BN) AUM SHARE Equity - Total 464 $501.28 78.4% -13 -2.7% $89.60 21.8% -4.4% Large-Cap - Equity 34 $127.61 20.0% 1 3.0% -$17.08 -11.8% -9.2% Emerging Markets - Equity 55 $93.93 14.7% 10 22.2% $52.15 124.8% 6.3% International - Equity 144 $92.63 14.5% 1 0.7% $25.39 37.8% 1.0% Sector - Equity 137 $64.76 10.1% -24 -14.9% $11.83 22.4% -0.5% Growth - Equity 26 $32.17 5.0% -1 -3.7% $3.80 13.4% -0.7% Value - Equity 26 $27.84 4.4% 1 4.0% $1.94 7.5% -0.9% Broad Market - Equity 13 $22.34 3.5% 1 8.3% $3.69 19.8% -0.3% Mid-Cap - Equity 12 $20.69 3.2% -1 -7.7% $5.11 32.8% 0.1% Small-Cap - Equity 17 $19.31 3.0% -1 -5.6% $2.78 16.8% -0.3% Fixed Income 73 $94.50 14.8% 19 35.2% $37.68 66.3% 3.3% Leveraged Inverse 52 $15.97 2.5% 8 18.2% $6.45 67.7% 0.6% Leveraged 46 $10.42 1.6% 8 21.1% -$0.81 -7.2% -0.6% Custom 57 $8.14 1.3% 1 1.8% $4.09 101.0% 0.5% Commodities 10 $5.66 0.9% 3 42.9% $2.83 100.2% 0.3% Inverse 11 $3.03 0.5% 1 10.0% $2.25 286.1% 0.3% Currency 8 $0.53 0.1% 1 14.3% $0.32 155.6% 0.0% Active 11 $0.06 0.0% 6 120.0% $0.05 303.2% 0.0% Total 732 $639.58 100.0% 34 4.9% $142.46 28.7%

Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 45: US exchanges average % market share per ETF exposure, as at end October 2009 TOTAL ADV TOTAL AVERAGE % MARKET SHARE AUM (# ‘000) ADV NYSE FINRA NYSE EXPOSURE # ETFs (US$ BN) Shares (US$ MN) Amex BATS Boston CBOE Chicago NSX ISE -ADF NASDAQ Arca International - Equity 144 $92.6 83,644 $2,291 0.0% 2.7% 0.3% 0.5% 0.1% 0.7% 2.4% 41.4% 9.2% 42.7% Emerging Markets - Equity 55 $93.9 183,987 $7,673 0.0% 5.2% 0.8% 0.3% 0.1% 0.8% 2.8% 37.6% 9.9% 42.6% Large-Cap - Equity 34 $127.6 345,433 $29,449 0.0% 5.6% 0.8% 2.3% 0.2% 1.7% 2.0% 32.1% 21.4% 33.8% Sector - Equity 137 $64.8 289,273 $8,061 0.0% 7.8% 1.8% 2.0% 0.1% 1.6% 3.1% 35.2% 16.1% 32.3% Fixed Income 73 $94.5 18,297 $1,445 0.0% 2.4% 0.9% 0.3% 0.1% 0.9% 2.6% 45.6% 12.2% 35.0% Growth - Equity 26 $32.2 9,696 $505 0.0% 7.2% 1.3% 2.0% 0.0% 1.6% 2.5% 44.7% 13.0% 27.7% Value - Equity 26 $27.8 9,014 $436 0.0% 7.1% 1.3% 1.8% 0.0% 2.0% 2.4% 41.5% 13.8% 30.1% Broad Market - Equity 13 $22.3 3,495 $177 0.0% 5.4% 0.6% 0.9% 0.1% 1.4% 1.7% 41.3% 14.2% 34.6% Mid-Cap - Equity 12 $20.7 6,103 $633 0.0% 6.9% 0.6% 1.9% 0.0% 1.7% 4.3% 32.4% 13.7% 38.5% Small-Cap - Equity 17 $19.3 60,132 $3,585 0.0% 6.9% 0.3% 2.1% 0.0% 2.4% 3.6% 32.6% 14.1% 38.0% Custom 57 $8.1 2,909 $81 0.0% 2.6% 0.1% 0.4% 0.0% 0.8% 2.3% 35.8% 11.9% 46.1% Leveraged 46 $10.4 180,880 $6,818 0.0% 10.8% 2.0% 0.2% 0.1% 1.3% 1.3% 30.7% 21.9% 31.8% Inverse 11 $3.0 5,427 $293 0.0% 12.1% 1.5% 0.0% 0.0% 0.9% 1.7% 42.0% 17.0% 24.7% Leveraged Inverse 52 $16.0 317,521 $7,010 0.0% 11.7% 1.7% 1.0% 0.1% 1.2% 1.4% 35.9% 20.4% 26.6% Commodities 10 $5.7 13,242 $603 0.0% 2.1% 0.4% 0.1% 0.1% 0.3% 3.1% 36.1% 17.9% 40.0% Active 11 $0.1 47 $1 0.0% 0.2% 0.5% 0.0% 0.0% 0.5% 0.7% 15.9% 12.5% 69.7% Currency 8 $0.5 484 $12 0.0% 1.0% 0.0% 0.0% 0.0% 1.2% 4.9% 36.6% 4.6% 51.7% Total 732 $639.6 1,529,585 $69,071 0.0% 5.9% 1.0% 0.9% 0.1% 1.2% 2.4% 38.8% 14.1% 35.4% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

Large-Cap - Equity, 20%Fixed Income, 14.8%Emerging Markets - Equity, 14.7%International - Equity, 14.5%Sector - Equity, 10.1%Growth - Equity, 5%Value - Equity, 4.4%Broad Market - Equity, 3.5%Mid-Cap - Equity, 3.2%Small-Cap - Equity, 3%Leveraged Inverse, 2.5%Leveraged, 1.6%Custom, 1.3%Commodities, 0.9%Inverse, 0.5%Currency, 0.1%Active, 0%



Figure 46: US exchanges total average daily turnover (US$ Mn) per ETF exposure, as at end October 2009 EXPOSURE NYSE Amex BATS Boston CBOE Chicago NSX ISE FINRA-ADF NASDAQ NYSE Arca International - Equity $0 $367 $53 $6 $10 $5 $23 $654 $408 $765 Emerging Markets - Equity $0 $1,062 $191 $21 $74 $19 $73 $1,981 $1,893 $2,359 Large-Cap - Equity $0 $3,825 $413 $122 $887 $67 $219 $6,612 $11,495 $5,809 Sector - Equity $0 $1,483 $340 $28 $36 $33 $90 $1,968 $2,220 $1,863 Fixed Income $0 $138 $27 $4 $5 $6 $29 $636 $203 $398 Growth - Equity $0 $80 $10 $4 $0 $5 $6 $178 $99 $124 Value - Equity $0 $68 $9 $4 $0 $5 $7 $144 $93 $106 Broad Market - Equity $0 $14 $2 $1 $1 $2 $2 $77 $25 $54 Mid-Cap - Equity $0 $101 $10 $5 $1 $4 $10 $140 $179 $183 Small-Cap - Equity $0 $705 $66 $26 $14 $8 $21 $619 $1,198 $928 Custom $0 $5 $0 $0 $0 $1 $3 $39 $14 $18 Leveraged $0 $873 $158 $8 $16 $75 $81 $2,451 $1,910 $1,246 Inverse $0 $52 $6 $0 $1 $2 $4 $113 $63 $52 Leveraged Inverse $0 $1,068 $225 $6 $26 $51 $64 $2,709 $1,682 $1,179 Commodities $0 $72 $23 $2 $2 $4 $8 $177 $160 $156 Active $0 $0 $0 $0 $0 $0 $0 $0 $0 $1 Currency $0 $0 $0 $0 $0 $0 $0 $5 $1 $6 Total ETFs $0 $9,912 $1,533 $236 $1,072 $286 $638 $18,503 $21,643 $15,248 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 47: US exchanges accumulated volume market share: 2009 EXCHANGE JAN-09 FEB-09 MAR-09 APR-09 MAY-09 JUN-09 JUL-09 AUG-09 SEP-09 OCT-09 NOV-09 DEC-09 BATS 15.5% 16.0% 16.4% 14.5% 14.2% 14.5% 14.9% 13.8% 14.3% 14.4%

Boston 0.1% 0.4% 0.9% 1.4% 1.3% 1.6% 1.9% 2.0% 2.4% 2.2%

CBOE 0.6% 0.4% 0.5% 0.6% 0.6% 0.6% 0.5% 0.5% 0.4% 0.3%

Chicago 0.6% 0.5% 0.9% 0.8% 1.1% 1.6% 1.4% 1.5% 1.6% 1.6%

Cincinnati 0.4% 0.5% 0.3% 0.5% 0.5% 0.5% 0.4% 0.5% 0.4% 0.4%

ISE 0.9% 1.0% 1.0% 1.4% 1.2% 1.2% 1.1% 1.2% 1.1% 0.9%

FINRA-ADF 22.7% 23.9% 23.9% 26.6% 28.3% 28.5% 29.3% 28.3% 27.8% 26.8%

NASDAQ 33.3% 32.4% 31.2% 28.9% 28.2% 27.1% 27.6% 29.1% 29.8% 31.3%

NYSE Arca 25.8% 24.9% 24.9% 25.3% 24.5% 24.5% 23.0% 23.2% 22.1% 22.1%

NYSE Amex 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 48: US exchanges accumulated volume market share: 2008 EXCHANGE JAN-08 FEB-08 MAR-08 APR-08 MAY-08 JUN-08 JUL-08 AUG-08 SEP-08 OCT-08 NOV-08 DEC-08 AMEX 2.8% 1.9% 2.1% 2.0% 1.6% 1.4% 1.5% 1.3% 1.4% 1.1% 0.3% 0.0%

BATS - - - - - - - - - - 13.5% 19.7%

Boston 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

CBOE 0.0% 0.3% 0.2% 0.5% 0.3% 0.3% 0.3% 0.7% 0.4% 0.4% 0.6% 0.2%

Chicago 1.0% 0.4% 0.8% 0.4% 0.3% 0.3% 0.6% 0.9% 0.5% 0.7% 0.6% 0.2%

Cincinnati 2.0% 2.2% 2.6% 1.8% 2.0% 1.8% 1.1% 1.6% 1.8% 2.0% 0.6% 0.2%

ISE 0.6% 0.1% 0.8% 0.2% 0.2% 0.2% 0.1% 0.2% 0.2% 0.3% 0.5% 1.1%

FINRA-ADF 28.7% 25.2% 28.0% 28.5% 31.0% 30.2% 30.0% 32.4% 31.1% 29.0% 17.8% 15.6%

NASDAQ 38.2% 39.1% 36.9% 37.5% 35.1% 37.1% 37.8% 36.7% 36.2% 38.6% 37.9% 35.2%

NYSE 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

NYSE Arca 26.5% 30.7% 28.4% 29.1% 29.2% 28.6% 28.4% 26.1% 28.4% 27.9% 28.0% 27.9%

Philadelphia 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



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Figure 49: US listed ETF and HOLDRS short interest versus S&P 500 index levels (based on mid-month statistics) SHORT INTEREST % OF SHARES S&P 500 PERIOD # OF SHARES (MN) OUTSTANDING INDEX LEVEL 2003 Avg 812 27.1% 983 2004 Avg 952 26.3% 1,127 2005 Avg 781 17.2% 1,206 2006 Avg 837 13.5% 1,283 2007 Avg 1,242 16.1% 1,475 2008 Avg 1,693 17.0% 1,209 2009 Avg YTD 1,643 12.3% 917 Jan-09 1,358 10.6% 844 Feb-09 1,450 11.7% 827 Mar-09 1,856 14.0% 757 Apr-09 1,647 12.5% 852 May-09 1,679 13.4% 883 Jun-09 1,801 13.8% 924 Jul-09 1,759 13.9% 933 Aug-09 1,620 11.3% 1,004 Sep-09 1,626 11.3% 1,053 Oct-09 1,630 11.1% 1,097 Mid-month data captured from Bloomberg. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Based on data through October 2009 the average number of ETF shares short during 2009 YTD is 1,643 million shares which is lower than the average of 1,693 million in 2008, but significantly higher than the average of 1,242 million during 2007 and 837 million in 2006. The October 2009 short interest level for US-listed ETFs was 11.1% of shares outstanding or 1,630 million shares, up 13.3% from 1,439 million in December 2008. 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. FINRA, the Financial Industry Regulatory Authority which regulates all securities firms doing business in the US, issued a regulatory notice in June 2009 to provide guidance on leveraged and inverse ETFs. 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.

Figure 50: Top 20 US listed ETFs based on short interest, as at end October 2009 SHORT SHARES SHORT BLOOMBERG INTEREST OUTSTANDING INTEREST ETF TICKER (000’ SHARES) (000’ SHARES) RATIO (%) SPDR S&P 500 SPY US 287,221 634,061 45.3%

PowerShares QQQ Trust QQQQ US 137,499 395,550 34.8%

iShares Russell 2000 Index Fund IWM US 130,962 197,400 66.3%

Financial Select Sector SPDR Fund XLF US 110,414 530,245 20.8%

iShares Dow Jones U.S. Real Estate Index Fund IYR US 77,763 55,050 141.3%

SPDR S&P Retail ETF XRT US 69,584 17,900 388.7%

iShares MSCI Emerging Markets Index Fund EEM US 66,657 889,200 7.5%

SPDR KBW Regional Banking ETF KRE US 51,411 17,653 291.2%

iShares FTSE/Xinhua China 25 Index Fund FXI US 39,259 216,300 18.2%

iShares MSCI EAFE Index Fund EFA US 34,917 627,600 5.6%

iShares MSCI Japan Index Fund EWJ US 30,081 523,200 5.7%

Energy Select Sector SPDR Fund XLE US 28,038 104,574 26.8%

DIAMONDS DIA US 21,666 78,942 27.4%

Technology Select Sector SPDR Fund XLK US 20,084 183,606 10.9%

iShares MSCI Brazil Index Fund EWZ US 19,799 150,150 13.2%

Industrial Select Sector SPDR Fund XLI US 18,605 76,576 24.3%

Health Care Select Sector SPDR Fund XLV US 16,953 74,265 22.8%

iShares Russell 1000 Index Fund IWB US 16,594 87,400 19.0%

Consumer Discretionary Select Sector SPDR Fund XLY US 15,978 47,203 33.8%

Consumer Staples Select Sector SPDR Fund XLP US 15,903 73,372 21.7% Mid-month data captured from Bloomberg. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

Figure 51: US listed ETF and HOLDRS short interest versus S&P 500 index levels, as at end October 2009

Mid-month data captured from Bloomberg. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

With short sales, you risk paying more for a security than you received from its sale.



ETFs IN ASIA PACIFIC (EX-JAPAN) Figure 52: ETF listings in Asia Pacific (ex-Japan), as at end October 2009

Australia India New Zealand Taiwan P Listings: 4 P Listings: 12 P Listings: 6 P Listings: 12 T Listings: 25 T Listings: 12 T Listings: 6 T Listings: 14 Providers: 2 Providers: 6 Providers: 2 Providers: 2 AUM: US$2.24 Bn AUM: US$0.20 Bn AUM: US$0.46 Bn AUM: US$2.48 Bn

China Indonesia Singapore Thailand P Listings: 5 P Listings: 1 P Listings: 8 P Listings: 3 T Listings: 5 T Listings: 1 T Listings: 40 T Listings: 3 Providers: 4 Providers: 1 Providers: 6 Providers: 2 AUM: US$5.18 Bn AUM: US$0.00 Bn AUM: US$2.25 Bn AUM: US$0.07 Bn

Hong Kong Malaysia South Korea P Listings: 16 P Listings: 3 P Listings: 46 T Listings: 37 T Listings: 3 T Listings: 46 Providers: 5 Providers: 2 Providers: 9 AUM: US$20.28 Bn AUM: US$0.34 Bn AUM: US$3.27 Bn P Listings = # Primary listings T Listings = # Total listings Providers = # Primary ETF Providers AUM = Assets Under Management Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

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Figure 53: Asia Pacific (ex-Japan) listed ETF and ETP asset growth Assets (US$ Bn) 2001 2002 2003 2004 2005 2006 2007 2008 Q1-09 Q2-09 Q3-09 OCT-09 ETF Assets $3.73 $3.82 $6.62 $8.62 $10.54 $18.05 $27.05 $23.76 $23.13 $31.08 $35.58 $36.78 ETP Assets $0.13 $0.46 $0.55 $0.60 $0.66 $0.73 ETF/ETP Assets Total $27.18 $23.76 $23.68 $31.68 $36.23 $37.51 # ETFs 4 11 20 27 32 49 68 96 98 106 114 116 # ETPs 4 6 6 11 11 11 # ETFs/ETPs Total 4 11 20 27 32 49 72 102 104 117 125 127 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.




Figure 54: ETF providers in Asia Pacific (ex-Japan) ranked by AUM, as at end October 2009 OCT-09 YTD CHANGE # # AUM % # # % AUM % % MARKET PROVIDER ETFs LISTINGS (US$ BN) TOTAL PLANNED ETFs ETFs (US$ BN) AUM SHARE State Street Global Advisors 6 8 $9.57 26.0% 1 0 0.0% $2.63 37.9% -3.2% iShares 8 32 $7.41 20.1% 0 4 100.0% $3.27 79.1% 2.7% Hang Seng Investment Management 3 5 $5.18 14.1% 0 0 0.0% $2.36 83.8% 2.2% China Asset Management 2 2 $3.51 9.5% 1 0 0.0% $2.22 171.7% 4.1% Polaris 8 9 $1.96 5.3% 2 1 14.3% $0.67 52.7% -0.1% Samsung Investment Trust Management 14 14 $1.60 4.4% 0 -1 -6.7% $0.46 40.2% -0.5% E Fund Management 1 1 $0.98 2.7% 1 0 0.0% $0.44 81.4% 0.4% BOCI-Prudential Asset Management 3 3 $0.93 2.5% 0 1 50.0% $0.40 75.7% 0.3% Lyxor Asset Management 2 32 $0.93 2.5% 0 0 0.0% $0.47 101.8% 0.6% Woori Credit Suisse Asset Management 8 8 $0.55 1.5% 7 0 0.0% -$0.20 -26.2% -1.6% AIG-Huatai Fund Management 1 1 $0.53 1.4% 0 0 0.0% $0.16 44.7% -0.1% Fubon Asset Management 4 4 $0.52 1.4% 0 0 0.0% $0.45 645.5% 1.1% Mirae Asset MAPS Global Investments 11 11 $0.40 1.1% 0 2 22.2% -$0.13 -24.1% -1.1% KB Asset Management 3 3 $0.31 0.8% 0 2 200.0% $0.30 2,557.1% 0.8% HSBC 1 1 $0.29 0.8% 0 0 0.0% -$0.01 -2.8% -0.5% Korea Investment Trust Management 5 5 $0.26 0.7% 0 3 150.0% -$0.04 -12.3% -0.5% DBS Asset Management 2 2 $0.25 0.7% 0 1 100.0% $0.03 11.3% -0.3% AMP 1 1 $0.24 0.6% 0 0 0.0% $0.11 90.1% 0.1% Smartshares Limited 5 5 $0.22 0.6% 0 0 0.0% $0.08 52.8% 0.0% i-VCAP Management 1 1 $0.19 0.5% 0 0 0.0% $0.04 30.5% -0.1% Benchmark Asset Management 6 6 $0.18 0.5% 12 1 20.0% -$0.69 -79.5% -3.2% Huaan Fund Management 1 1 $0.17 0.5% 0 0 0.0% $0.11 185.6% 0.2% CIMB-GK Securities 1 1 $0.16 0.4% 0 0 0.0% $0.06 60.9% 0.0% AmInvestment Management 2 2 $0.15 0.4% 0 0 0.0% $0.00 -1.5% -0.2% Yurie Asset Management 2 2 $0.09 0.2% 0 1 100.0% $0.08 1,414.8% 0.2% One Asset Management 2 2 $0.07 0.2% 0 1 100.0% $0.01 12.8% -0.1% Vanguard 1 3 $0.04 0.1% 2 1 100.0% $0.04 100.0% 0.1% Tong Yang Investment Trust Management 1 1 $0.03 0.1% 0 1 100.0% $0.03 100.0% 0.1% Prudential Asset Management 1 1 $0.02 0.0% 0 1 100.0% $0.02 100.0% 0.0% Kotak Mahindra Asset Management 2 2 $0.02 0.0% 0 0 0.0% -$0.39 -95.7% -1.7% Daishin Investment Trust Management 1 1 $0.02 0.0% 0 1 100.0% $0.02 100.0% 0.0% Daiwa Asset Management 1 1 $0.01 0.0% 1 0 0.0% $0.00 6.3% 0.0% TMB Asset Management 1 1 $0.01 0.0% 0 0 0.0% $0.00 -0.7% 0.0% Reliance Capital Asset Management 1 1 $0.00 0.0% 1 0 0.0% $0.00 0.0% 0.0% UTI Asset Management 1 1 $0.00 0.0% 1 0 0.0% $0.00 15.5% 0.0% Indo Premier Securities 1 1 $0.00 0.0% 0 0 0.0% $0.00 -21.9% 0.0% PRUDENTIAL ICICI 1 1 $0.00 0.0% 0 0 0.0% $0.00 104.6% 0.0% Quantum Asset Management 1 1 $0.00 0.0% 0 0 0.0% $0.00 16.1% 0.0% db x-trackers 0 15 $0.00 0.0% 0 0 0.0% $0.00 0.0% 0.0% Bosera Asset Management - - - - 1 - - - - - Government Service Insurance Systems - - - - 1 - - - - - Guotai Asset Management - - - - 1 - - - - - Tata Mutual Fund - - - - 1 - - - - - United Overseas Bank - - - - 1 - - - - - Other (Planned) - - - - 4 - - - - - Total 116 192 $36.78 100.0% 38 20 20.8% $13.02 54.8% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 55: Top five Asia Pacific (ex-Japan) ETF providers by average daily US dollar turnover, as at end October 2009 AVERAGE DAILY TURNOVER (US$ MN) % MARKET % MARKET CHANGE % PROVIDER DEC-08 SHARE OCT-09 SHARE (US$ MN) CHANGE China AM $155.08 29.5% $277.21 31.4% $122.1 78.8% iShares $139.64 26.6% $178.53 20.2% $38.9 27.8% E Fund Mgt $14.35 2.7% $118.46 13.4% $104.1 725.6% Samsung ITM $63.32 12.0% $66.06 7.5% $2.7 4.3% SSgA $39.04 7.4% $52.82 6.0% $13.8 35.3% Others $114.16 21.7% $189.14 21.4% $75.0 65.7% Total $525.59 100.0% $882.23 100.0% $356.6 67.9% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

China AM, 31.4%

iShares, 20.2%E Fund Mgt, 13.4%

Samsung ITM, 7.5%SSgA, 6%

Others, 21.4%



Figure 56: Top 10 ETFs in Asia Pacific (ex-Japan) by AUM, as at end October 2009 COUNTRY AUM ADV ADV ETF LISTED TICKER (US$ MN) (‘000 SHARES) (US$ MN) iShares FTSE/Xinhua A50 China Tracker Hong Kong 2823 HK $6,368 90,724 $167 Tracker Fund of Hong Kong (TraHK) Hong Kong 2800 HK $5,024 9,978 $28 Hang Seng Index ETF Hong Kong 2833 HK $3,124 50 $1 China 50 ETF China 510050 CH $3,072 755,281 $263 Hang Seng H-Share Index ETF Hong Kong 2828 HK $2,023 1,866 $31 SPDR S&P/ASX 200 Fund Australia STW AU $1,839 541 $21 ABF Pan Asia Bond Index Fund Hong Kong 2821 HK $1,827 5 $1 Polaris Taiwan Top 50 Tracker Taiwan 0050 TT $1,453 9,993 $16 Samsung Kodex200 ETF South Korea 069500 KS $1,161 3,173 $56 E FUND SI100 INDEX FUND China 159901 CH $975 212,561 $118 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 57: Top 10 ETFs in Asia Pacific (ex-Japan) by average daily US dollar trading volume, as at end October 2009 COUNTRY ADV ADV AUM ETF LISTED TICKER (US$ MN) (‘000 SHARES) (US$ MN) China 50 ETF China 510050 CH $263 755,281 $3,072 iShares FTSE/Xinhua A50 China Tracker Hong Kong 2823 HK $167 90,724 $6,368 E FUND SI100 INDEX FUND China 159901 CH $118 212,561 $975 Samsung Kodex200 ETF South Korea 069500 KS $56 3,173 $1,161 AIG Huatai Dividend China 510880 CH $48 129,917 $528 Hang Seng H-Share Index ETF Hong Kong 2828 HK $31 1,866 $2,023 Tracker Fund of Hong Kong (TraHK) Hong Kong 2800 HK $28 9,978 $5,024 SHANGHAI SSE180 INDEX FUND China 510180 CH $26 246,048 $174 SPDR S&P/ASX 200 Fund Australia STW AU $21 541 $1,839 Woori Credit Suisse KOSEF 200 - KOSPI 200 South Korea 069660 KS $19 1,077 $209 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 58: Top 10 ETFs in Asia Pacific (ex-Japan) with largest change in AUM, as at end October 2009 COUNTRY AUM (US$ MN) AUM (US$ MN) CHANGE ETF LISTED TICKER OCT-09 DEC-08 (US$ MN) iShares FTSE/Xinhua A50 China Tracker Hong Kong 2823 HK $6,368 $3,620 $2,748 China 50 ETF China 510050 CH $3,072 $567 $2,505 Hang Seng Index ETF Hong Kong 2833 HK $3,124 $1,752 $1,372 SPDR S&P/ASX 200 Fund Australia STW AU $1,839 $605 $1,234 Hang Seng H-Share Index ETF Hong Kong 2828 HK $2,023 $1,047 $976 Tracker Fund of Hong Kong (TraHK) Hong Kong 2800 HK $5,024 $4,239 $785 Banking Index Benchmark Exchange Traded Scheme - Bank BeES India BBEES IN $32 $736 -$704 Woori Credit Suisse KOSEF 200 - KOSPI 200 South Korea 069660 KS $209 $691 -$482 Fubon MSCI Taiwan Taiwan 0057 TT $477 $19 $458 E FUND SI100 INDEX FUND China 159901 CH $975 $538 $438 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



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In Asia Pacific (ex-Japan), open-end mutual funds (excluding ETFs) have seen US$11.6 Bn net new inflows during the first nine months of 2009 according to data from Strategic Insight. Equity funds were the most popular with US$11.3 Bn net inflows, followed by bond funds with US$9.6 Bn net inflows. Figure 59: Asia Pacific (ex-Japan) mutual fund flows (excluding ETFs)

Exposure (US$ Bn) 2005 2006 2007 2008 YTD-SEP 09 Equity 23.6 58.7 268.8 -14.6 18.7 Bond 1.8 5.2 15.4 6.2 20.6 Mixed 11.3 10.2 20.3 -11.8 1.3 Money Market 7.4 -8.9 5.6 41.4 16.2 Real Estate 1.6 6.6 9.7 -2.1 0.8 Guaranteed 1.1 2.2 0.3 0.6 0.5 Other -0.1 0.5 2.6 -1.6 -0.2 Total 46.8 74.6 322.6 18.0 57.9 Source: Strategic Insight Simfund Global. In Asia Pacific (ex-Japan), ETFs have seen US$2.5 Bn net outflows during the first nine months of 2009 according to data from Strategic Insight. Equity funds were the most popular with US$1.4 Bn net outflows, while money market funds experienced US$0.01 Bn net outflows. Figure 60: Asia Pacific (ex-Japan) ETF fund flows

Exposure (US$ Bn) 2005 2006 2007 2008 YTD-SEP 09 Equity 0.2 0.8 2.0 16.3 1.43 Bond 1.8 0.3 0.1 0.0 0.90 Mixed 0.0 0.0 0.0 0.0 0.00 Money Market 0.0 0.0 0.0 0.1 -0.01 Real Estate -0.1 0.0 0.0 0.0 0.09 Guaranteed 0.0 0.0 0.0 0.0 0.00 Other 0.0 0.0 0.2 -0.1 0.12 Total 1.9 1.2 2.4 16.3 2.53 Source: Strategic Insight Simfund Global.





ETFs IN JAPAN Figure 61: ETF listings in Japan, as at end October 2009

Japan P Listings: 66 T Listings: 69 Providers: 5 AUM: US$24.94 Bn P Listings = # Primary listings T Listings = # Total listings Providers = # Primary ETF Providers AUM = Assets Under Management Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

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Figure 62: Japanese listed ETF and ETP asset growth Assets (US$ Bn) 2001 2002 2003 2004 2005 2006 2007 2008 Q1-09 Q2-09 Q3-09 OCT-09 ETF Assets $6.6 $21.0 $27.6 $30.3 $31.8 $34.6 $34.2 $27.4 $23.4 $25.5 $26.6 $24.9 ETP Assets $0.0 $0.3 $0.3 $0.3 $0.3 $0.3 ETF/ETP Assets Total $34.2 $27.8 $23.7 $25.8 $26.9 $25.3 # ETFs 8 18 18 15 13 13 15 61 62 64 66 66 # ETPs 1 4 4 4 5 5 # ETFs/ETPs Total 8 18 18 15 13 13 16 65 66 68 71 71 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 63: ETF providers in Japan ranked by AUM, as at end October 2009 OCT-09 YTD CHANGE # # AUM % # # % AUM % % MARKET PROVIDER ETFs LISTINGS (US$ BN) TOTAL PLANNED ETFs ETFs (US$ BN) AUM SHARE Nomura Asset Management 29 29 $13.99 56.1% - 0 0.0% -$0.95 -6.3% 1.7% Nikko Asset Management 10 10 $5.64 22.6% - 2 25.0% -$0.55 -8.9% 0.0% Daiwa Asset Management 22 22 $4.65 18.7% - 0 0.0% -$1.39 -22.9% -3.4% Mitsubishi UFJ Asset Management 4 4 $0.60 2.4% - 3 300.0% $0.38 172.5% 1.6% iShares 1 1 $0.05 0.2% - 0 0.0% $0.01 14.6% 0.0% EasyETF 0 1 $0.00 0.0% - 0 0.0% $0.00 0.0% 0.0% Samsung Investment Trust Management 0 1 $0.00 0.0% - 0 0.0% $0.00 0.0% 0.0% State Street Global Advisors 0 1 $0.00 0.0% - 0 0.0% $0.00 0.0% 0.0% Total 66 69 $24.94 100.0% - 5 8.2% -$2.50 -9.1% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 64: Top five Japanese ETF providers by average daily US dollar turnover, as at end October 2009 AVERAGE DAILY TURNOVER (US$ MN) % MARKET % MARKET CHANGE % PROVIDER DEC-08 SHARE OCT-09 SHARE (US$ MN) CHANGE Nomura AM $105.59 62.4% $107.84 70.8% $2.25 2.1% Nikko AM $38.65 22.8% $30.88 20.3% -$7.77 -20.1% Daiwa AM $24.74 14.6% $13.20 8.7% -$11.54 -46.6% Mitsubishi UFJ AM $0.01 0.0% $0.17 0.1% $0.17 3,171.4% iShares $0.21 0.1% $0.15 0.1% -$0.06 -29.9% Others $0.00 0.0% $0.13 0.1% $0.13 100.0% Total $169.2 100.0% $152.38 100.0% -$16.82 -9.9% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.


Nomura AM, 70.8%

Nikko AM, 20.3%

Daiwa AM, 8.7%

Mitsubishi UFJ AM, 0.1%

iShares, 0.1%

Others, 0.1%



Figure 65: ETP providers in Japan ranked by assets, as at end October 2009 OCT-09 YTD CHANGE ASSETS # ASSETS % % MARKET PROVIDER # ETPs (US$ BN) % TOTAL PLANNED # ETPs % ETPs (US$ BN) ASSETS SHARE Nomura Asset Management 4 $0.31 89.9% 0 0 0.0% -$0.03 -9.3% -10.1% Simplex Asset Management 1 $0.04 10.1% 0 1 100.0% $0.04 100.0% 10.1% Other (Planned ETP) - - - 3 - - - - - Total 5 $0.35 100.0% 3 1 25.0% $0.00 0.8% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 66: Top five ETFs in Japan by AUM, as at end October 2009 AUM ADV ADV ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) TSE TOPIX ETF 1306 JP $6,518 2,766 $28 OSE NIKKEI 225 ETF 1321 JP $6,046 473 $53 Listed Index Fund 225 1330 JP $3,360 239 $27 Daiwa ETF- NIKKEI 225 1320 JP $2,191 107 $12 Daiwa ETF-TOPIX 1305 JP $1,961 126 $1 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 67: Top five ETFs in Japan by average daily US dollar trading volume, as at end October 2009 ADV ADV AUM ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) OSE NIKKEI 225 ETF 1321 JP $53 473 $6,046 TSE TOPIX ETF 1306 JP $28 2,766 $6,518 Listed Index Fund 225 1330 JP $27 239 $3,360 NEXT FUNDS Ibovespa 1325 JP $13 3,412 $62 Daiwa ETF- NIKKEI 225 1320 JP $12 107 $2,191 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 68: Japanese ETF assets by type of exposure, as at end October 2009 OCT-09 YTD CHANGE AUM AUM % % MARKET EXPOSURE # ETFs (US$ BN) % TOTAL # ETFs % ETFs (US$ BN) AUM SHARE Nikkei 225 5 $11.87 47.6% 1 25.0% -$0.78 -6.2% 1.5% TOPIX 8 $10.93 43.9% 1 14.3% -$1.78 -14.0% -2.5% Japanese Sectors 43 $1.46 5.9% 1 2.4% -$0.15 -9.5% 0.0% International 5 $0.48 1.9% 0 0.0% $0.21 74.8% 0.9% Nikkei 300 1 $0.11 0.4% 0 0.0% -$0.01 -6.5% 0.0% Other 2 $0.04 0.2% 2 100.0% $0.04 100.0% 0.2% Small Cap 1 $0.03 0.1% 0 0.0% -$0.03 -45.9% -0.1% Growth 1 $0.00 0.0% 0 0.0% $0.00 60.5% 0.0% Total 66 $24.94 100.0% 5 8.2% -$2.50 -9.1%

Nikkei 225, 47.6%

TOPIX, 43.9%

Japanese Sectors, 5.9%

International, 1.9%

Nikkei 300, 0.4%

Other, 0.2%

Small Cap, 0.1%

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Exposure (US$ Bn) 2005 2006 2007 2008 YTD-SEP 09 Equity 6.1 24.4 28.2 -5.2 4.5 Bond 38.6 15.1 13.3 24.4 5.7 Mixed 14.8 37.4 34.4 -7.0 -6.2 Money Mkt 0.3 -0.1 0.3 0.3 0.0 Real Estate 6.5 9.6 5.6 -1.8 8.6 Guaranteed 0.2 3.8 7.4 4.3 0.7 Other 1.2 0.7 -1.5 -0.4 0.4 Total 67.7 91.0 87.8 14.6 13.7 Source: Strategic Insight Simfund Global. In Japan, ETFs have seen US$3.4 Bn net outflows during the first nine months of 2009 according to data from Strategic Insight. Equity funds appeared unpopular with US$3.3 Bn net outflows. Figure 70: ETF fund flows in Japan

Exposure (US$ Bn) 2005 2006 2007 2008 YTD-SEP 09 Equity -4.9 2.3 2.9 2.9 -3.3 Bond 0.0 0.0 0.0 0.0 0.0 Real Estate 0.0 0.0 0.0 0.1 0.0 Other 0.0 0.0 0.2 0.1 0.0 Total -4.9 2.3 3.1 3.1 -3.4 Source: Strategic Insight Simfund Global.





ETFs IN THE MIDDLE EAST AND AFRICA Figure 71: ETF listings in the Middle East and Africa, as at end October 2009

South Africa P Listings: 22 T Listings: 22 Providers: 5 AUM: US$1.52 Bn P Listings = # Primary listings T Listings = # Total listings Providers = # Primary ETF Providers AUM = Assets Under Management


Figure 72: ETF providers in the Middle East and Africa ranked by AUM, as at end October 2009 OCT-09 YTD CHANGE AUM # AUM % % MARKET PROVIDER # ETFs (US$ BN) % TOTAL PLANNED # ETFs % ETFs (US$ BN) AUM SHARE Satrix Managers 7 $1.19 78.7% 1 1 16.7% $0.17 16.8% -3.1% db x-trackers 5 $0.15 9.9% 0 0 0.0% $0.05 50.2% 1.9% NewFunds 7 $0.12 7.9% 4 5 250.0% $0.00 0.0% -1.7% Investec Fund Management 1 $0.02 1.5% 0 -2 -66.7% $0.01 179.6% 0.9% Bips Investment Managers 2 $0.03 2.0% 0 1 100.0% $0.03 100.0% 2.0% Al Mal Capital - - - 1 - - - - - Gaon Investment House - - - 2 - - - - - Other (Planned) - - - 15 - - - - - Total 22 $1.52 100.0% 23 5 29.4% $0.27 21.4% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 73: Top five ETFs in the Middle East and Africa by AUM, as at end October 2009 AUM ADV ADV ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) SATRIX40 STX40 SJ $755 1,711 $5 SATRIX Financials STXFIN SJ $132 188 $0 Satrix Dividend Plus STXDIV SJ $86 2,051 $0 NewRand ETF NRD SJ $82 11 $0 SATRIX Industrials STXIND SJ $73 20 $0 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

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Assets (US$ Bn) 2000 2001 2002 2003 2004 2005 2006 2007 2008 Q1-09 Q2-09 Q3-09 OCT-09 ETF Assets $0.32 $0.55 $0.82 $1.23 $1.58 $1.22 $2.20 $1.25 $0.93 $1.31 $1.53 $1.52 ETP Assets $0.04 $0.09 $0.10 $0.22 $0.48 $0.39 $0.68 $1.99 $2.12 $2.22 $3.51 $13.18 $41.80 # ETFs 1 3 4 5 7 8 11 17 19 22 22 22 # ETPs 1 1 1 3 18 41 98 205 241 253 262 267 266 Asset data and history not available for all ETP Providers which causes the sharp rise in assets shown above for ETPs. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 75: Top five ETFs in the Middle East and Africa by average daily US dollar trading volume, as at end October 2009 ADV ADV AUM ETF TICKER (US$ MN) (‘000 SHARES) (US$ MN) SATRIX40 STX40 SJ $5 1,711 $755 SATRIX RAFI 40 Total Return STXRAF SJ $1 903 $54 Bips Top 40 BIPS40 SJ $1 199 $31 Satrix Dividend Plus STXDIV SJ $0 2,051 $86 Zshares GOVI ZGOVI SJ $0 267 $23 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 76: Top five ETFs in the Middle East and Africa by change in AUM, as at end October 2009 AUM AUM (US$ MN) (US$ MN) CHANGE ETF TICKER OCT-09 DEC-08 (US$ MN) SATRIX Industrials STXIND SJ $73 $186 -$113 SATRIX40 STX40 SJ $755 $652 $103 Satrix Dividend Plus STXDIV SJ $86 $21 $66 SATRIX RAFI 40 Total Return STXRAF SJ $54 $0 $54 SATRIX RESI STXRES SJ $64 $14 $50 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 77: ETP providers in the Middle East and Africa ranked by assets, as at end October 2009 OCT-09 YTD CHANGE ASSETS # ASSETS % % MARKET PROVIDER # ETPs (US$ BN) % TOTAL PLANNED # ETPs % ETPs (US$ BN) ASSETS SHARE KSM 96 $18.26 43.7% 0 -1 -1.0% $18.26 N/A 43.7% Mabat 45 $10.72 25.7% 0 0 0.0% $9.72 970.0% -21.5% Tachlit 45 $5.33 12.7% 0 4 9.8% $5.33 N/A 12.7% Psagot 35 $4.03 9.7% 0 4 12.9% $3.23 N/A -28.2% NewFunds 1 $1.74 4.2% 0 0 0.0% $1.43 448.6% -10.8% Index 20 $1.64 3.9% 0 0 0.0% $1.64 N/A 3.9% Hadas 9 $0.07 0.2% 0 4 80.0% $0.07 N/A 0.2% Dubai Commodities Asset Management 1 $0.01 0.0% 0 1 100.0% $0.01 N/A 0.0% Harel 13 $0.00 0.0% 0 13 100.0% $0.00 N/A 0.0% Clade Investment Management 1 $0.00 0.0% 0 0 0.0% $0.00 0.0% 0.0% Other (Planned ETP) - - - 2 - - - - - Total 266 $41.80 100.0% 2 25 10.4% $39.67 1,867.4% Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Assets data not available for all ETP Providers.




ETFs IN LATIN AMERICA At the end of October 2009 the Latin American ETF industry had 17 locally domiciled ETFs, 185 exchange listings, and assets of $7.57 Bn from three providers on two exchanges.

YTD assets have increased by 37.7%, which is less than the 80.1% rise in the MSCI EM Latin America Index in US dollar terms.

YTD the number of ETFs increased by 70% with seven new ETFs launched.

YTD the average daily trading volume in US dollars has increased by 48.4% to US$191.3 Mn.

iShares is the largest ETF provider in terms of assets with US$6.15 Bn under management in 15 ETFs, reflecting 81.2% market share;

Banco Itau is second with US$1.4 Bn in one locally domiciled ETF; an 18.8% market share at the end of October 2009.

There are 168 ETFs cross listed in Mexico at the end of October 2009 from eight providers, while there are 340 ETFs registered for sale in Chile from 10 providers, and 250 ETFs registered for sale in Peru from 12 providers.

The first ETF to launch in Latin America was the NAFTRAC, designed to track the Mexican Bolsa Index. Since launching in 2002 in Mexico by Nacional Financiera it became the largest ETF in the region with over US$3.7 Bn in assets under management at the end of October 2009, and was acquired by iShares on May 14, 2009, and has since been renamed iShares NAFTRAC.

Figure 78: ETF listings in Latin America, as at end October 2009

P Listings = # Primary listings T Listings = # Total listings Providers = # Primary ETF Providers AUM = Assets Under Management

*ETFs registered for sale in Peru and Chile are only available as admissible investments for pension funds. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, Comision Clasificadora de Riesgo (CCR), Superintendencia de Banca (SBS).

Figure 79: ETF providers in Latin America ranked by AUM, as at end October 2009 # CROSS # REGISTERED # REGISTERED # # LOCAL LISTINGS FOR SALE FOR SALE AUM PLANNED PROVIDER ETFs IN MEXICO IN CHILE* IN PERU* (US$ BN) % TOTAL NEW ETFs iShares 15 97 179 189 $6.15 81.2% 1 Banco Itau 1 - - - $1.42 18.8% - BBVA Asset Management 1 4 - - $0.00 0.0% - Bank of New York - - - 1 - - - Credit Agricole Structured AM - - 2 2 - - - Credit Suisse Asset Management - - - 2 - - - db x-trackers - - 14 2 - - - EasyETF - - 26 3 - - - Lyxor Asset Management - 4 14 - - - - PowerShares - 1 7 2 - - - ProShares - 10 - - - - - State Street Global Advisors - 11 25 25 - - - UBS Global Asset Management - - - 2 - - - Van Eck Associates Corp - 12 11 8 - - - Vanguard - 29 30 12 - - - WisdomTree Investments - - 32 - - - - XACT Fonder - - - 2 - - - Total 17 168 340 250 $7.57 100.0% 1 *ETFs registered for sale in Peru and Chile are only available as admissible investments for pension funds. AUM reflects only the assets in the locally listed ETFs to avoid double counting. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, Comision Clasificadora de Riesgo (CCR), Superintendencia de Banca (SBS).

Brazil Mexico P Listings: 4 P Listings: 13 T Listings: 4 T Listings: 181 Providers: 2 Providers: 2 AUM: US$1.58 Bn AUM: US$5.99 Bn

Chile Peru # Registrations*: 340 # Registrations*: 250

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Figure 80: Latin America ETF asset growth Assets (US$ Mn) 2002 2003 2004 2005 2006 2007 2008 Q1-09 Q2-09 Q3-09 OCT-09 ETF Assets $0.1 $0.4 $0.4 $1.3 $2.6 $6.0 $5.1 $4.6 $7.1 $7.4 $7.6 # ETFs 1 1 2 2 2 6 10 10 11 17 17 Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

Figure 81: Latin America net new ETF assets Assets (US$ Mn) 2002 2003 2004 2005 2006 2007 2008 Q1-09 Q2-09 Q3-09 YTD OCT-09 ETF Net Flows $148.7 $209.2 ($360.2) $720.3 $619.4 $1,919.7 $2,876.2 ($50.8) $877.0 ($783.0) ($67.4)



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Figure 82: Latin America mutual fund industry Mutual Fund Assets (US$ Mn) 2004 2005 2006 2007 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Latin America Total Assets 271,739 368,579 506,256 723,229 857,839 686,749 562,308 582,617 722,203 Argentina Assets 2,355 3,626 6,153 6,789 6,188 4,997 3,867 3,606 3,717 Brazil Assets 220,586 302,927 418,771 615,365 738,485 579,174 479,321 498,259 623,925 Chile Assets 12,588 13,969 17,700 24,444 23,296 19,772 17,587 22,434 26,617 Costa Rica Assets 1,053 804 1,018 1,203 1,450 1,254 1,098 1,264 1,517 Mexico Assets 35,157 47,253 62,614 75,428 88,420 81,552 60,435 57,054 66,427 # Mutual Funds Latin America Total # Funds 4,108 4,094 4,593 5,395 6,116 6,372 6,422 6,627 6,846 Argentina # Funds 186 200 223 241 244 250 253 251 257 Brazil # Funds 2,859 2,685 2,907 3,381 3,939 4,178 4,169 4,302 4,494 Chile # Funds 537 683 926 1,260 1,436 1,427 1,484 1,565 1,594 Costa Rica # Funds 115 110 100 93 88 88 85 77 77 Mexico # Funds 411 416 437 420 409 429 431 432 424 Source: Investment Company Institute (ICI)

Implementing Asset Allocation with ETFs Investment applications ETFs have many investment applications. ETFs on broad-based indices can serve as diversified core holdings, while style and sector ETFs can be used to complete parts of a portfolio or for tactical strategies. Due to their targeted exposure to specific market segments, ETFs generally work well within the macro asset allocation and sector emphasis models developed by equity strategists. They also help provide efficient ways to gain international diversification. Another benefit of ETFs is that they are complimentary to many other investment products. They can be used together with common stocks, private asset managers, and other fund products. Investors may buy ETFs to diversify their assets. Most ETFs are passively managed portfolios designed to provide relatively low-cost investments in broad-based or proprietary indices. Some ETFs offer relatively low-risk, broadly diversified portfolios, which many investors may find attractive as the core equity components of their portfolios. Others offer diversified investments in particular styles, sectors, industries, regions, or countries. ETFs based on broad-market indices serve as core holdings, which is essential, especially in today’s environment of increased market volatility. Since no single sector, style, or stock consistently outperforms its peers, having core holdings invested in broad-market indices not only helps reduce volatility but also can achieve competitive returns for the overall portfolio.

ETFs work well with strategic asset-allocation models. In our view, asset-allocation models have two primary applications for investors: 1. As the framework for an entire portfolio. Investors desiring a

complete asset allocation strategy may find this appealing, as they merely have to purchase appropriate investments for each market segment in their proper weightings and occasionally rebalance their portfolios.

2. As the core portion of a portfolio. Those seeking an approach with more active trading may find a core/satellite investment strategy appropriate. In this case, the model can serve as a core. In an effort to increase returns, shorter-term tactical strategies, such as stock, sector, style or country overweights may then be employed as satellite investments. Core holdings can help ensure that a portfolio’s performance does not deviate widely from established benchmarks, while satellite investments constitute active plays in an effort to increase returns.

Assets US$ Mn # Mutual Funds



ETFs can be used for targeted sector exposure. Sector ETFs can be used for the tactical portion of a portfolio or to gain exposure to underrepresented sectors in a portfolio. They can also serve as the building blocks for a sector model. Figure 83: Sector weights and YTD performance World, Emerging Markets MSCI WORLD MSCI EMERGING MARKETS # % % YTD # % % YTD SECTOR STOCKS WEIGHT RETURN STOCKS WEIGHT RETURN Consumer Discretionary 239 9.20% 28.05% 70 5.23% 91.40% Consumer Staples 127 10.32% 14.15% 57 5.09% 49.59% Energy 116 11.08% 19.02% 48 15.20% 73.38% Financials 338 20.80% 27.21% 172 24.40% 67.93% Healthcare 120 10.12% 7.08% 12 2.16% 24.03% Industrials 265 10.44% 16.00% 114 6.95% 46.41% Information Technology 149 11.54% 37.89% 84 13.47% 78.43% Materials 159 7.46% 39.96% 110 14.42% 82.40% Telecommunications 48 4.46% 3.38% 55 9.53% 17.48% Utilities 93 4.59% -4.33% 42 3.54% 39.56% Total 1,654 100.00% 20.21% 764 100.00% 61.23% United States S&P 500 # % % YTD SECTOR STOCKS WEIGHT RETURN Consumer Discretionary 40 11.65% 9.28% Consumer Staples 30 3.47% 28.61% Energy 59 10.15% 6.71% Financials 79 9.45% 24.61% Healthcare 41 12.45% 7.82% Industrials 52 12.52% 5.38% Information Technology 79 14.78% 11.99% Materials 76 19.03% 44.24% Telecommunications 9 3.01% -7.75% Utilities 35 3.51% -2.56% Total 500 100.00% 14.72% DJ US TOTAL MARKET # % % YTD SECTOR STOCKS WEIGHT RETURN Basic Materials 69 3.34% 42.64% Consumer Goods 125 9.86% 12.91% Consumer Services 198 11.44% 20.87% Financials 257 16.37% 9.86% Health Care 133 12.38% 7.23% Industrials 256 12.80% 11.48% Oil & Gas 93 10.84% 12.64% Technology 173 16.37% 45.89% Telecommunications 18 2.68% -7.01% Utilities 74 3.91% -1.71% Total 1,396 100.00% 16.36% 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 30/12/2008 to 30/10/2009. Index weights captured from Bloomberg on 01/12/2009. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

Continued…

Consumer Discretionary, 11.7%

Consumer Staples, 3.5%

Energy, 10.1%

Financials, 9.4%

Healthcare, 12.5%Industrials, 12.5%

Information Technology, 14.8%

Materials, 19%

Telecommunications, 3%

Utilities, 3.5%

Basic Materials, 3.3%

Consumer Goods, 9.9%

Consumer Services, 11.4%

Financials, 16.4%

Health Care, 12.4%Industrials, 12.8%

Oil & Gas, 10.8%

Technology, 16.4%

Telecommunications, 2.7%

Utilities, 3.9%



Figure 83 (continued): Sector weights and YTD performance Europe DJ STOXX 600 DJ EURO STOXX # % % YTD # % % YTD SECTOR STOCKS WEIGHT RETURN STOCKS WEIGHT RETURN Automobiles & Parts 13 1.75% 19.57% 12 3.39% 18.84% Banks 54 16.86% 55.62% 38 18.37% 56.60% Basic Resources 29 5.11% 71.86% 12 2.13% 31.17% Chemicals 19 3.87% 29.35% 13 6.29% 29.05% Construction & Materials 28 2.72% 27.87% 21 4.05% 24.67% Financial Services 33 1.54% 31.29% 12 1.21% 15.92% Food & Beverage 26 7.16% 28.71% 13 4.81% 34.71% Health Care 36 9.34% 10.38% 15 3.95% 13.16% Industrial Goods & Services 94 7.90% 33.24% 42 8.27% 29.30% Insurance 35 5.70% 14.46% 16 7.13% 11.30% Media 25 2.00% 14.31% 15 2.41% 2.24% Oil & Gas 38 10.12% 22.82% 18 7.56% 15.45% Personal & Household Goods 28 4.50% 31.84% 12 3.64% 29.93% Real Estate 19 1.11% 30.76% 10 1.19% 44.76% Retail 24 3.32% 31.13% 11 2.66% 19.43% Technology 25 2.94% 21.66% 16 4.24% 12.15% Telecommunications 20 6.77% 12.09% 11 8.09% 9.36% Travel & Leisure 23 1.12% 10.59% 8 0.96% -0.89% Utilities 31 6.16% -2.18% 20 9.67% -3.23% Total 600 100.00% 26.15% 314 100.00% 21.71%

MSCI EUROPE # % % YTD SECTOR STOCKS WEIGHT RETURN Consumer Discretionary 61 7.25% 26.54% Consumer Staples 39 11.92% 25.13% Energy 24 11.16% 22.23% Financials 106 24.67% 41.75% Healthcare 32 10.19% 10.60% Industrials 85 9.39% 28.27% Information Technology 16 2.71% 13.97% Materials 49 9.23% 48.77% Telecommunications 22 7.17% 12.46% Utilities 30 6.30% 0.35% Total 464 100.00% 25.47%

Japan TOPIX-17 # % % YTD SECTOR STOCKS WEIGHT RETURN Automobiles & Transportation Equipment 73 10.73% 41.39% Banks 84 5.67% -14.25% Commercial & Wholesale Trade 137 4.94% 30.31% Construction & Materials 165 6.97% 7.65% Electric Appliances & Precision Instruments 181 15.36% 32.08% Electric Power & Gas 17 0.69% -23.38% Energy Resources 16 10.86% 5.85% Financials Ex Banks 52 5.16% -12.44% Foods 71 3.58% -0.43% IT & Services Others 240 4.32% -10.57% Machinery 124 0.43% 24.73% Pharmaceutical 33 4.38% -11.43% Raw Materials & Chemicals 172 5.06% 11.31% Real Estate 47 2.38% 6.63% Retail Trade 144 3.63% -10.41% Steel & Nonferrous 60 9.96% 23.98% Transportation & Logistics 67 5.87% -14.78% Total 1,683 100.00% 4.51% 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 30/12/2008 to 30/10/2009. Index weights captured from Bloomberg on 01/12/2009. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

Automobiles & Transportation Equipment, 10.7%

Banks, 5.7%

Commercial & Wholesale Trade, 4.9%

Construction & Materials, 7%

Electric Appliances & Precision Instruments, 15.4%

Electric Power & Gas, 0.7%

Energy Resources, 10.9%

Financials Ex Banks, 5.2%

Foods, 3.6%

IT & Services Others, 4.3%

Machinery, 0.4%

Pharmaceutical, 4.4%

Raw Materials & Chemicals, 5.1%

Real Estate, 2.4%

Retail Trade, 3.6%

Steel & Nonferrous, 10%

Transportation & Logistics, 5.9%



Figure 84: Macro asset allocation strategies ETFs can be used to implement the country and regional allocations suggested by strategists and analysts. # % % YTD MSCI WORLD STOCKS WEIGHT RETURN Australia 73 3.93% 59.47% Austria 8 0.15% 42.43% Belgium 13 0.47% 48.28% Canada 98 4.75% 35.98% Denmark 13 0.43% 33.19% Finland 17 0.54% 0.60% France 76 5.13% 19.94% Germany 50 3.86% 12.14% Greece 12 0.27% 60.88% Hong Kong 40 1.09% 54.56% Ireland 4 0.12% 0.18% Italy 33 1.67% 18.12% Japan 346 9.70% 5.01% Netherlands 20 1.23% 29.89% New Zealand 5 0.05% 44.23% Norway 8 0.37% 64.34% Portugal 9 0.15% 34.18% Singapore 28 0.66% 51.44% Spain 30 2.27% 32.67% Sweden 30 1.22% 58.58% Switzerland 37 3.68% 18.07% United Kingdom 104 10.11% 28.73% United States 600 48.15% 15.32% Total 1,654 100.00% 20.21% # % % YTD MSCI EUROPE STOCKS WEIGHT RETURN Austria 8 0.48% 42.43% Belgium 13 1.48% 48.28% Denmark 13 1.35% 33.19% Finland 17 1.69% 0.60% France 76 16.19% 19.94% Germany 50 12.19% 12.14% Greece 12 0.85% 60.88% Ireland 4 0.39% 0.18% Italy 33 5.26% 18.12% Netherlands 20 3.90% 29.89% Norway 8 1.15% 64.34% Portugal 9 0.49% 34.18% Spain 30 7.16% 32.67% Sweden 30 3.87% 58.58% Switzerland 37 11.62% 18.07% United Kingdom 104 31.92% 28.73% Total 464 100.00% 25.47% # % % YTD MSCI GCC COUNTRIES STOCKS WEIGHT RETURN Bahrain 7 8.41% -27.76% Kuwait 21 17.12% 1.73% Oman 11 2.67% 20.14% Qatar 14 7.07% 3.01% Saudi Arabia 37 53.89% 38.25% UAE 16 10.84% 60.27% Total 106 100.00% 25.95%

# % % YTD MSCI EMERGING MARKETS STOCKS WEIGHT RETURN Brazil 75 16.95% 102.09% Chile 16 1.38% 58.97% China 115 18.27% 54.28% Colombia 8 0.63% 63.88% Czech Republic 3 0.46% 19.42% Egypt 12 0.47% 47.65% Hungary 4 0.59% 66.54% India 60 7.55% 78.66% Indonesia 22 1.77% 103.68% Israel 17 2.72% 35.42% Malaysia 42 2.69% 45.90% Mexico 23 4.51% 36.54% Morocco 4 0.27% -0.71% Peru 3 0.65% 61.81% Philippines 12 0.43% 48.71% Poland 18 1.29% 28.27% Russia 27 6.41% 89.57% South Africa 45 6.96% 40.78% South Korea 98 12.38% 58.76% Taiwan 117 11.11% 55.37% Thailand 23 1.21% 57.30% Turkey 21 1.30% 70.29% Total 765 100.00% 61.23% # % % YTD MSCI FRONTIER MARKETS STOCKS WEIGHT RETURN Argentina 6 3.05% 57.67% Bahrain 7 11.26% -27.76% Bulgaria 2 0.19% 31.46% Croatia 7 2.62% 49.06% Estonia 2 0.40% 27.18% Jordan 8 2.36% -6.98% Kazakhstan 3 3.70% 96.77% Kenya 6 1.93% -2.26% Kuwait 21 22.92% 1.73% Lebanon 6 2.60% 44.75% Lithuania 2 0.24% 67.83% Mauritius 3 0.95% 46.27% Nigeria 12 6.91% -22.94% Oman 11 3.58% 20.14% Pakistan 14 3.53% 77.99% Qatar 14 9.47% 3.01% Romania 5 0.98% 5.65% Serbia 2 0.22% 27.18% Slovenia 6 3.20% 40.15% Sri Lanka 3 0.58% 142.56% Trinidad 2 1.01% -4.49% Tunisia 4 0.53% 24.15% UAE 16 14.52% 56.75% Ukraine 7 0.34% 58.48% Vietnam 14 2.92% 52.85% Total 183 100.00% 15.04%

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 31/12/2008 to 30/10/2009. Trinidad and Tobago YTD return reflects US dollar price performance only from 19/05/2009 to 30/10/2009. Index weights captured from Bloomberg on 01/12/2009. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 85: Index performance (annual US dollar price performance) # YTD INDEX TICKER CONSTITUENTS 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 OCT-09 MSCI World MXWO 1,654 14.2% 22.8% 23.6% -14.1% -17.8% -21.1% 30.8% 12.8% 7.6% 18.0% 7.1% -42.1% 20.2% MSCI Emerging Markets MXEF 765 -13.4% -27.5% 63.7% -31.8% -4.9% -8.0% 51.6% 22.4% 30.3% 29.2% 36.5% -54.5% 61.2% MSCI Europe MXEU 464 19.6% 27.8% 15.2% -9.9% -21.3% -20.0% 34.1% 18.0% 7.2% 29.8% 10.6% -47.9% 25.5% MSCI Pacific ex Japan MXPCJ 146 -32.7% -9.6% 39.3% -17.5% -12.2% -9.0% 41.3% 24.6% 10.2% 28.0% 27.2% -52.2% 59.5% MSCI Japan MXJP 346 -24.6% 4.0% 61.9% -28.9% -29.9% -10.7% 34.3% 15.0% 24.2% 5.1% -6.4% -29.6% 5.0% S&P 500 SPX 500 31.0% 26.7% 19.5% -10.1% -13.0% -23.4% 26.4% 9.0% 3.0% 13.6% 3.5% -38.5% 14.7% MSCI EAFE MXEA 956 0.2% 18.2% 25.3% -15.2% -22.6% -17.5% 35.3% 17.6% 10.9% 23.5% 8.6% -45.1% 23.9% S&P GSCI SPGCCI -18.4% -24.3% 46.2% 26.9% -31.5% 39.0% 10.8% 19.2% 39.1% 0.4% 40.7% -42.8% 42.3% DJ-UBS Commodity DJUBS -8.2% -30.5% 18.6% 24.2% -22.3% 23.9% 22.7% 7.6% 17.5% -2.7% 11.1% -36.6% 12.5% Barclays Capital Global Aggregate Bond Index LEGATRUU 12,498 3.8% 13.7% -5.1% 3.1% 1.6% 16.5% 12.5% 9.1% -4.4% 6.6% 9.5% 4.8% 8.4%

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MSCI WorldMSCI Emerging MarketsMSCI EuropeMSCI Pacific ex JapanMSCI JapanS&P 500S&P GSCIMSCI EAFEBarclays Capital Global Aggregate Bond IndexDJ-UBS Commodity

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. Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Number of constituents captured from Bloomberg on 01/12/2009.

% Accumulated US$ price return

% Accumulated US$ price return



Figure 86: Core/satellite applications

! A broad market index. ! Exposure to diversified baskets of securities. ! Optimised core: sector, style or country indices.

! Concentrated, focused ETFs. ! Sector and style. ! Individual countries and regions. ! Alternative asset class.

Source: ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. ETFs also offer a way to gain exposure to international and emerging market equities. They provide access to baskets of stocks in specific countries or regions in the form of an individual listed security. Most ETFs are well diversified and thus typically provide a less volatile way to obtain exposure to given countries than the purchase of individual stocks or GDRs. They also provide convenient investments in markets and securities that otherwise might be inaccessible. Investors can use ETFs as a cash management tool. They can purchase ETFs to ‘equitise’ cash inflows that could eventually be invested in stocks. Equitising cash simply refers to investing cash in a way that provides exposure to the performance of an equity security or index. This can be done in relatively small increments – ETFs typically trade in round lots with the price of a share ranging from approximately US$6 to US$150. As an alternative to futures, ETFs can be bought in smaller sizes, do not require any special documentation or accounts, and do not have roll costs or margin requirements. In addition, the current array of ETFs covers many benchmarks for which there is no futures contract.

ETFs can be sold short to hedge a portfolio of stocks, bonds, commodities, closed-end funds or open-end mutual funds. This allows an investor to preserve a portfolio while protecting it from overall market losses. In a market decline, profits on an ETF short position could offset some of the losses incurred by the portfolio. Listed options are available on certain ETFs and can be used for income-producing, risk-reducing, and speculative strategies. Listed options also exist for many of the same indices on which ETFs are based, allowing for additional hedging and arbitrage strategies. ETFs provide low-cost, liquid trading vehicles. They can be used by market timers wishing to gain or reduce exposure to entire market segments or sectors throughout the trading day. They also can be used for targeted asset allocation or sector rotation strategies. ETFs can be shorted throughout the trading day subject to the availability of applicable stock borrows.

Figure 87: ETF portfolios



Figure 88: Why use ETFs?

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

Liquidity ! 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.

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

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

Cost effectiveness ! ETFs offer a cost effective route to diversified market exposure. ! The average Total Expense Ratio (TER) for equity ETFs in Europe is 37 bps versus 87 bps per annum for the average

equity index tracking fund and 175 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 2009). Figure 89: How can ETFs be used?

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

Tactical ! Interim beta: Maintain exposure to given market while searching for specific market opportunity. ! Cash management: Invest cash rapidly and cost effectively to gain desired market exposures. ! Derivatives alternative: 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).

Figure 90: ETFs can offer solutions for a range of portfolio strategies*

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

Portfolio management ! Implement short-/long-term and/or neutral market views: - Hard to access asset classes, themes, sector, country. - Tactical Asset Allocations.

Strategic asset allocations

! Establish core holdings. ! Establish single country or sector satellites.

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

Cash equitisation ! Manage inflows, outflows, transitions. ! Obtain a wider exposure than offered by other Delta 1 products.

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

* 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.



ETFs afford investors two forms of liquidity. The first is through trading the shares on a secondary basis on the exchange. The second is on a primary basis via the unique ‘creation’ process, whereby an AP purchases the underlying basket of securities in the local market and deposits the basket ‘in kind’ into the ETF, creating more shares in that ETF. The unique creation/redemption process means that the liquidity in the ETF is driven by the liquidity in the underlying securities. ETFs tend to trade at, or close to, their underlying NAVs. This is because there are usually arbitrageurs waiting to take advantage of a significant premium or discount relative to the underlying index. An arbitrageur will buy/sell the ETF and place an offsetting buy/sell transaction in the underlying basket of component securities. Divergence in the performance of an ETF, relative to the index it tracks, is possible. Differences tend to be caused by fund fees and expenses, tracking error when optimisation strategies are used to track the index, rebalancing due to corporate actions and index changes, or the dividend reinvestment policy of the fund. Figure 91: Typical ETF trading process

Today the ETF toolbox is well stocked with a wide array of products: Figure 92: The ETF toolbox EQUITY FIXED INCOME CASH CURRENCY ! Global ! Government

! Corporate ! EONIA, SONIA ! Fed funds ! Capitalisation (large, mid,

small…) ! Credit ! Sectors ! Inflation ALTERNATIVES

! Developed currencies ! Emerging market currencies ! Inverse/leveraged ! Strategy (carry, momentum...)

! Broad markets ! High yield ! Emerging markets ! Mortgage backed COMMODITIES ! Countries ! Emerging markets

! Hedge funds ! Carbon

! Inverse/leveraged ! Broad (S&P GSCI, DJ-UBS, RICI,

CRB…) ! Styles ! Sub-indices (energy, livestock,

precious metals, industrial metals, agriculture...)

! Individual commodities ! Based on physically held

assets (gold, silver, platinum, palladium…)

! Based on futures ! Based on forwards

- Active - Dividend - Fundamental - Infrastructure - Real estate - Shariah - Thematic - Private equity

1,859 ETFs with 3,327 ETF listings 569 ETPs* with 839 listings Total: 2,428 products with 4,166 listings

! Inverse/leveraged * ETPs include Holding Company Depository Receipts (HOLDRs), Exchange Traded Commodities, Exchange Traded Currency Products, and Exchange Traded Notes, as at end October 2009.



ETFs cover many well known blue-chip indices such as S&P 500, CAC, DAX, FTSE 100, Hang Seng, Nikkei etc. Recently there has been a proliferation of new indices from index providers which they hope will form the basis of new ETFs. Many of the new indices use diverse weighting methodologies, including market capitalisation, equal weight, price, dividend and other fundamental factors. As an example the new FTSE RAFI Index Series is weighted using four fundamental factors; total cash dividends, free cash flow, total sales and book equity value rather than traditional market capitalisation. WisdomTree has created dividend-weighted indices where the stock’s weight is based on either the amount of cash dividend or the dividend yield of the companies in each index. Infrastructure ETFs: The first Infrastructure ETF was launched in January 2007. Infrastructure indices provide diversified exposure to three infrastructure clusters: energy (oil and gas storage and transportation), transportation (airport services, highways and railroads, marine ports and services) and utilities (electric, gas, water, multi-utilities). Fixed Income ETFs: The first Fixed Income ETF was launched in Canada in November 2000. A broad array of government, corporate, credit, high yield, emerging market, inflation protected and money market fixed income products are available to investors within the flexibility of an ETF wrapper, allowing investors to implement income generating strategies, fund future liabilities, hedge inflation and enhance portfolio risk-adjusted returns. There are global, regional and single country fixed income ETFs with TERs ranging from 0.05% to 0.70%. Commodity ETFs: The first Commodity ETF was launched in Canada in March 2001. Commodities as an asset class typically exhibit low correlation to equity indices, and the advent of commodity ETFs allows investors to satisfy asset allocation and diversification requirements, hedge inflation or speculate on commodity indices such as the S&P GSCI. Trading commodity indices as a single exchange traded product avoids the need to manage futures rolls, provides investors with deep underlying liquidity pools, and allows investors who are restricted from using derivatives or other commodity vehicles to gain exposure in an equity vehicle. Shari’ah ETFs: The first Shari’ah compliant ETF was launched in January 2007. Shari’ah compliance means compliance with certain Shari’ah principles that are derived from the Quaran and other sources of Islamic law, as determined by Shari’ah scholars. Methodologies exclude representation in the index by shares issued by producers of alcohol and pork-related products, providers of conventional financial services and providers of entertainment services (e.g. hotels, casinos/gambling, cinema etc.). Tobacco manufacturers, defence and weapons companies, although not strictly forbidden under Shari’ah law, are also excluded. In addition to excluding companies from certain sectors, Shari’ah compliant indices also exclude companies that employ excessive leverage or generate excessive interest income. Private Equity ETFs: The first Private Equity ETF was launched in October 2006. Private Equity firms raise capital primarily from institutional investors such as pension funds, banks, insurance companies, endowments, family offices, funds of funds and foundations to invest in venture capital, buy-outs and special situations (distressed companies). Typically, private equity companies invest in high growth, start-up companies or acquire businesses where superior efficiencies could be achieved.

Real Estate ETFs: The first Real Estate ETF was launched in the United States in June 2000. The existing range of real estate ETFs include listed real estate companies and Real Estate Investment Trusts (REITs) which own and usually actively manage income-producing commercial real estate. REITs are typically required to pay out at least 90% of all taxable income, providing dividend income to investors, along with the potential for long term share price appreciation. There are several ETFs available allowing investors to gain global, regional or single country REIT exposure. Dividend ETFs: The first Dividend weighted ETF was launched in November 2003. Several ETF providers have structured ETFs by selecting and weighting the constituents based on dividend yield or absolute dividend payments. Some research suggests that dividend weighted indices generate higher cumulative returns with lower volatility than comparable standard market cap weighted indices over the long term. There are many ETFs providing dividend weighted global, regional, single country and emerging markets exposure with Total Expense Ratios (TERs) ranging from 0.25% to 0.75%. Fundamental ETFs: The first Fundamental factor weighted ETF was launched in May 2000. Fundamental factors such as sales, cash flow, book value, dividends, earnings, and employees, are increasingly being used to create new indices. It has been argued that traditional market cap weighted indices are systematically inefficient by overweighting overvalued stocks and underweighting undervalued stocks. Sector ETFs: The first Sector ETFs were launched in December 1998 covering nine US economic sectors allowing investors to gain US sector exposure or implement sector rotation strategies. Certain sectors outperform in particular stages of the economic cycle. Sector rotation strategies are designed to beat the market by rotating the investment into the sector which is expected to outperform in the given stage of the economic cycle. There are many ETFs providing global, regional, and single country sector exposure with TERs ranging from 0.12% to 1.50%. Inverse/Leveraged ETFs: The first Inverse or Leveraged ETF was launched in February 2005. Leveraged ETFs are designed to provide up to 300% daily upside performance, while the inverse range of ETFs provide one and two times daily reverse (short) index performance. These ETFs can be used to magnify returns, hedge portfolios and manage risk without the need for a margin account or margin calls. TERs for these ETFs range from 0.40% to 1.60%. Global ETFs: The first Global ETF was launched in August 1997 in New Zealand. Global ETFs allow investors to gain diversified exposure to broad developed markets such as MSCI World which tracks the performance of 23 developed countries. International diversification can minimise the impact of economic downturns within individual countries or regions and reduce overall risk. There are global ETFs with TERs ranging from 0.25% to 0.94%. Emerging Market ETFs: The first Emerging Market ETF was launched in March 1996. Emerging Market countries are typically characterised by rapid economic growth, volatility, immature institutions and political instability. ETFs that track global emerging market indices such as the MSCI Emerging Markets Index provide investors with diversified exposure to 25 EM countries. There are many ETFs providing global, regional, and single country EM exposure with TERs ranging from 0.19% to 1.50%.



Figure 93: Comparison of fixed income index trading characteristics

Barclays Capital Citigroup eb.rexx EuroMTS FTSE JPMorgan Markit iBoxx

Government Government Government Government Gilt Emerging Market Government

Aggregate Corporate Inflation-Linked Corporate

Corporate Asset Backed Asset Backed

Inflation-Linked

INDEX FAMILY EXPOSURE INDEX CALCULATION PRICE SOURCE PRICE CONTRIBUTION PRICE TYPE Barclays Capital Aggregate Barclays Capital About 80% comes from Barclays Capital traders Daily Bid prices

(usually)

Government --- term Barclays Capital Barclays Capital traders Daily Mid prices

Government --- short treasury Barclays Capital About 80% comes from Barclays Capital traders

The rest comes from third party vendors Daily Bid prices

Corporate Barclays Capital About 80% comes from Barclays Capital traders Daily Bid prices

Inflation-linked Barclays Capital Barclays Capital traders Daily Mid market real prices

Inflation-linked world Barclays Capital

Euro government, US TIPS, UK linkers and 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

Daily Mid prices

Citigroup Citigroup Individual Citigroup trader pricing Daily Bid prices

(Japan mid prices)

eb.rexx Deutsche Börse Eurex Bonds Intraday 9:00 am - 5:00 pm CET

Traded price data

EuroMTS EuroMTS MTS Markets Intraday 9:00 am - 5:30 pm CET Bid prices

FTSE FTSE Gilt-Edged Market Makers Association (GEMMA) Daily Dirty prices

JP Morgan JP Morgan JP Morgan traders Daily Bid prices

Markit iBoxx Covered Markit iBoxx Consortium Intraday 8:00 am - 4:30 pm GMT

Bid/ask quotes

Government --- liquid capped and corporate

Markit iBoxx Consortium Intraday 9:00 am - 5:15 pm CET

Bid/ask quotes

Corporate Markit iBoxx Consortium Intraday Bid/ask quotes

Source: Fixed Income Index Guide, BlackRock.



Advantages of fixed income products ! Government, corporate, credit, inflation, interest rate indices. ! Security: Government issued fixed income products are usually

considered risk free. Corporate debt is also considered to be lower risk than the company’s equity. In the event of liquidation, bondholders are ranked above shareholders in the claim on company assets.

! Return of capital: The redemption value of bonds is pre-determined

at the time of purchase. ! Income: The coupon rate of bonds is known before investing and

provides the investor with a reliable income stream.

! Diversification: A diversified portfolio contains multiple asset classes and eliminates the concentration risk embedded in a single asset class portfolio.

! Benefit from falling interest rates: Interest rates can be locked in

for a defined period. The inverse relationship between bond prices and interest rates allows investors to benefit from rising bond prices during falling interest rate environments.

! Speculation: Fixed income products provide investors with

additional tolls to speculate on future prices of interest rates.

Figure 94: Fixed income exhibits low historical correlation with almost all asset classes potentially providing diversification benefits to a portfolio

Asset classes Global property1 Global equities2 Global bonds3 Cash4 Emerging markets5

Global property1 1.00 0.66 0.07 -0.06 0.60

Global equities2 0.66 1.00 -0.09 -0.04 0.57

Global bonds3 0.07 -0.09 1.00 0.03 -0.03

Cash4 -0.06 0.04 0.03 1.00 -0.06

Emerging markets5 0.60 0.57 -0.03 -0.06 1.00

1 FTSE EPRA/NAREIT Global Index. 2 MSCI World Index. 3 Barclays Capital Global Aggregate Bond Index. 4 LIBOR 3M Index. 5 MSCI Emerging Markets Index. Past performance is no guarantee of future results. Source: Bloomberg, Datastream, May 2001 to May 2008. Shorting and hedging with ETFs5F

6 ETFs can be sold short to hedge a portfolio of stocks, bonds, commodities or funds. This allows an investor to potentially preserve a portfolio while protecting it from overall market losses. In a market decline, profits on an ETF short position could offset some of the losses incurred by the portfolio. Options are available on most ETFs in the United States which can be used for a number of strategies. Securities 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 TER. Investors can also use inverse (short) and leverage inverse ETFs to implement hedges and short economic exposure. There are currently 65 inverse/inverse leveraged ETFs in the US and 70 inverse/inverse leveraged ETFs listed on exchanges outside the US. Short interest is often considered an indication of the level of scepticism in the market.

6 With short sales, you risk paying more for a security than you received from its sale.

Short interest data is captured for US 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. 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.



Energy, 65%

Livestock, 6%

Precious M etals, 4%

Industrial M etals, 7%

Agriculture, 18%

Energy, 33%

Livestock, 7%



Agriculture, 29%

Energy, 39%

Livestock, 7%



Agriculture, 34%

Energy, 44%

Livestock , 3%



Agriculture, 32%

Figure 95: Commodity index comparison

S&P GOLDMAN SACHS COMMODITY INDEX

DOW JONES UBS COMMODITY INDEX REUTERS JEFFERIES

CRB INDEX ROGERS INTERNATIONAL COMMODITY INDEX (RICI)

ROGERS DJ UBS REUTERS INTERNAT’L COMMODITY JEFFERIES COMMODITY S&P GSCI INDEX CRB INDEX (RICI) COMMODITY MEASURE (%) (%) (%) (%) Energy 65.29% 33.00% 39.00% 44.00% WTI Crude Oil $/barrel 34.77% 13.75% 23.00% 21.00% Brent Crude Oil $/barrel 12.11% - - 14.00% RBOB Gasoline $cents/gallon 4.69% 3.71% 5.00% 3.00% Heating Oil $cents/gallon 3.88% 3.65% 5.00% 1.80% Gasoil $/metric ton 4.31% - - 1.20% Natural Gas $/mmBtu 5.53% 11.89% 6.00% 3.00% Livestock 6.37% 6.68% 7.00% 3.00% Live Cattle $cents/pound 3.45% 4.29% 6.00% 2.00% Feeder Cattle $cents/pound 0.66% - - - Lean Hogs $cents/pound 2.26% 2.40% 1.00% 1.00% Precious Metals 4.00% 10.75% 7.00% 7.10% Gold $/troy oz 3.61% 7.86% 6.00% 3.00% Silver $/troy oz 0.39% 2.89% 1.00% 2.00% Palladium $/troy oz - - - 0.30% Platinum $/troy oz - - - 1.80% Industrial Metals 6.67% 20.33% 13.00% 14.00% Aluminium $/metric ton 2.32% 7.00% 6.00% 4.00% Copper $/metric ton 2.78% 7.31% 6.00% 4.00% Lead $/metric ton 0.42% - - 2.00% Nickel $/metric ton 0.57% 2.88% 1.00% 1.00% Tin $/metric ton - - - 1.00% Zinc $/metric ton 0.58% 3.14% - 2.00%

ROGERS DJ UBS REUTERS INTERNAT’L COMMODITY JEFFERIES COMMODITY S&P GSCI INDEX CRB INDEX (RICI) COMMODITY MEASURE (%) (%) (%) (%) Agriculture 17.65% 29.23% 34.00% 31.90% Wheat $cents/bushels 4.54% 4.80% 1.00% 7.00% Kansas Wheat $cents/bushels 1.00% - - - Corn $cents/bushels 4.85% 5.72% 6.00% 4.75% Soybeans $cents/bushels 3.00% 7.60% 6.00% 3.35% Soybean Oil $cents/pound - 2.88% - 2.17% Soybean Meal $/short ton - - - 0.75% Cotton $cents/pound 0.96% 2.27% 5.00% 4.20% Sugar $cents/pound 2.02% 2.99% 5.00% 2.00% Coffee $cents/pound 0.87% 2.97% 5.00% 2.00% Cocoa $/metric ton 0.41% - 5.00% 1.00% Orange Juice $cents/pound - - 1.00% 0.66% Rubber JPY/kilogram - - - 1.00% Lumber $/1k board fleet - - - 1.00% Canola CAD/metric ton - - - 0.67% Rice $/cwt - - - 0.50% Oats $cents/bushels - - - 0.50% Azuki Beans JPY/bag - - - 0.15% Barley CAD/metric ton - - - 0.10% Greasy Wool AUD/kilogram - - - 0.10% TOTAL 100.00% 100.00% 100.00% 100.00% Data as at: Mar-09 Jan-09 Jan-09 Feb-09

Source: ETF Research and Implementation Strategy Team, BlackRock, S&P, Dow Jones, Lyxor, RICI Handbook 2009.



Figure 96: Deciding on which product to use depends on many factors

CONSIDERATIONS QUESTIONS PRODUCTS

Transparency

Client service

Product choice

Liquidity

Portfolio management

! What is my benchmark?

! What are my regulatory guidelines?

! What are my mandate constraints?

! What are my counterparty risk guidelines?

! What are my tracking risk guidelines?

! How can I gain long and/or short exposure?

! How can securities lending add value?

! What is my time horizon?

! What are the tax implications?

! What are my liquidity requirements?

! What costs are involved?

Portfolio trading

ETFs

ETNs

ETPs

Swaps

Futures

Options

Securitised products: certificates, warrants, equity linked notes, local access products

Source: ETF Research and Implementation Strategy Team, BlackRock. Factors to consider when selecting an ETF Objectives: assess your financial goals. Strategy: look for the right ETF to complement your portfolio. Ensure you read the prospectus and other documentation published by the ETF provider prior to investing. Risks: the value of your investment may go up or down. Check the specific risks (i.e. political, economic and currency risks when investing in an ETF providing exposure to an emerging market, country or region) and tax implications. The index: even ETFs with very similar sounding names can be based on very different constituents. Index providers have different index methodologies which will determine the holdings, weights and rebalance frequency, which will result in different risk and reward characteristics. Understanding the index is an important step in the process. The structure: regulatory changes and innovations in structures have seen ETPs move beyond the conventional open-ended fund structure of an ETF. Additionally, open-ended funds can, in many jurisdictions, embrace the use of swaps and other derivatives, which may change the risk characteristics and may limit the product’s transparency compared to traditional physical ETFs, particularly in relation to the fund’s list of holdings. The size of the ETF in terms of AUM will often dictate how much certain investors can invest in an ETF. Total costs: the fund’s Total Expense Ratio (TER), not just the Management Expense Ratio (MER), is a major consideration when comparing costs between ETFs. Trading costs, tracking risk, registrations, trading currency, dividend withholding rates and securities lending within the fund and lending of the ETF should all be considered. Liquidity: ETFs afford investors two forms of liquidity. The first is through trading the shares on a secondary basis on-exchange. The second is on a primary basis via the unique ‘creation’ process, whereby an AP purchases the underlying basket of securities in the local market and deposits the basket ‘in kind’ into the ETF, creating more shares in that ETF. The unique creation/redemption process means that the liquidity in the ETF is driven by the liquidity in the underlying securities. Similar indices can have different liquidity profiles based on their index methodology. ETF provider: the type and amount of information provided on their ETFs, index construction and methodology, tax and index management knowledge, as well as the level and type of support provided to investors, intermediaries and brokers varies based on the size, scale and expertise of the provider.

Investment concerns ETFs possess risks related to the securities in their underlying indices. ETFs are subject to risks applicable to any investment in portfolios of common stocks or bonds, including that of generally lower prices and the chance that they may underperform more concentrated or actively managed portfolios. By targeting performance in line with indices, investors are also foregoing opportunities to outperform. ETFs are subject to ‘tracking error’ risks. Factors such as expenses, imperfect correlation between an ETF’s stocks and those in its underlying index and regulatory policies may cause an ETF’s return to deviate from its underlying index. Six major sources of tracking error are summarised below: ! Fees and expenses: expenses of all fund products reduce total

return. Although ETFs have the low expense ratios, fees will cause an ETF to underperform its index over time.

! Premiums/discounts: on any date, the closing price of an ETF may

be at a premium or discount to its Net Asset Value (NAV) due to supply and demand factors. This will affect reported performance of the ETF versus its index.

! Dividend reinvestment: some ETFs hold dividends in cash and

only pay them out to investors on a periodic basis. In contrast, some ETFs can reinvest dividends daily. A lag in dividend reinvestment can cause small underperformance in rising markets.

! Optimised replication: many ETFs use computer optimisation

techniques to design portfolios to closely track the index while minimising transaction costs. Under this technique, the ETF omits or underweights some stocks (usually the less liquid or smaller-cap stocks). This technique, if properly used, should have only a minor effect on tracking.

! Rebalancing: ETFs are required to make changes in the

composition of their portfolios when stocks are added to or dropped from the index. The timing, market impact, and transaction costs of the changes can affect performance.

! Nonconcurrent trading hours: some ETFs trade in the United

States when their underlying markets are closed. For example, the Japanese market is closed while an ETF tracking the Japanese market is trading on NYSE Arca. Given increased correlation between markets, ETFs based on the Japanese market may appear to be at a premium prior to the start of the trading day in Japan when the United States’ market is up in anticipation that the Japanese market will rally. Similarly, on a down day in the United States, the ETFs on the Japanese market may appear to trade at a discount.



Many European investors prefer ETFs that are UCITS funds from a regulatory and dividend withholding point of view. Some European investors are only allowed to invest in UCITS funds. For European and Asian investors, dividend withholding may be higher when investing in US listed ETFs as they may suffer dividend withholding within the ETFs as well as on dividends paid out of the ETF. Basic ETF structures ETFs have distinctive features. Each ETF is designed to track a specific index. They provide access to investment styles, asset classes, markets, and different sectors. They are structured as open-end funds which are domiciled and registered in many countries around the world. The assets of ETFs are held by custodians in a ring fenced structure. Most ETFs purchase the underlying securities in the index with the majority fully replicating their underlying index, many have the capacity to employ optimisation and sampling techniques. These ETFs may exclude certain securities and deviate from their benchmark constituent weights, which could lead to tracking error. The open-end structure typically allows funds to lend stock, which may generate extra income. In addition, these funds can hold other securities and financial instruments, including cash and equivalents and futures. Dividends are typically paid out quarterly, semi-annually or annually, although some ETFs do reinvest dividends in the fund.

In Europe, a new approach is being used to create funds and ETFs which utilise a total return swap plus a basket of securities to comply with the diversification rules under Undertakings for Collective Investments in Transferable Securities (UCITS III) to deliver index performance rather than purchasing the underlying securities in the index. 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 purchase the underlying securities in the index. ETFs tend to trade at or close to the NAV of the underlying basket of shares. Arbitrageurs would take advantage of significant premium or discount relative to the underlying index. An arbitrageur would typically buy or sell the ETF and place an offsetting buy or sell transaction in the underlying basket of component stocks or futures. ETF providers have continued to expand their product ranges in more specialised areas to cater for the growing number of professional and retail investors using ETFs as advanced portfolio construction tools. The increasing availability of these highly-specialised ETFs across the full spectrum of equities, fixed-income and alternative investments now ensures that investors can use ETFs to instantly reallocate capital to take advantage of new investment opportunities as market conditions stabilise.

Figure 97: Key tax considerations Example: iShares MSCI Emerging Markets: European vs US listed funds

* maximum rate, lower rate may apply based on local tax treaties with US. ** assumes impact of maximum rate 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.

European Listed ETF

(Irish Domiciled)

Non-US Based Investor

Local Shares

(3.01% Gross Div’s)

US Listed ETF

(US Domiciled)

Non-US Based Investor

Local Shares


US Listed ETF

(US Domiciled) US Based Investor

Local Shares


Net dividends (9.91% withholding [blended rate])

Gross dividends (no withholding out of the ETF)


Net dividends (up to 30%* withholding)


Gross dividends (no withholding out of the ETF)

2.71% 2.71%

2.77% 1.94%**

2.77% 2.77%



Figure 98: New asset classes will continue to squeeze the traditional core of actively managed funds

1 After deducting distribution fees. For funds of hedge funds and funds of private equity funds, fees include fees of hedge funds and private equity funds, as well as fees of multimanagers. Source: BCG Global Asset Management 2008, ‘Winning Strategies in Uncertain Times’, November 2008, Projections 2008–2012.



Figure 99: ETF launches in 2009 TICKER REGION/ LAUNCH ETF NAME (BB) COUNTRY DATE October 2009 Jefferies TR/J CRB Global Industrial Metals Equity Index Fund CRBI US US 29-Oct-09 OOK, INC. OOK US US 29-Oct-09 Jefferies TR/J CRB Global Agriculture Equity Index Fund CRBA US US 28-Oct-09 Prudential PREX LG Group ETF 117740 KS South Korea 27-Oct-09 IQ ARB Global Resources ETF GRES US US 27-Oct-09 IQ CPI Inflation Hedged ETF CPI US US 27-Oct-09 BMO Short Federal Bond Index ETF ZFS CN Canada 26-Oct-09 BMO Short Provincial Bond Index ETF ZPS CN Canada 26-Oct-09 BMO Short Corporate Bond Index ETF ZCS CN Canada 26-Oct-09 BMO High Yield US Corporate Bond Hedged to CAD Index ETF ZHY CN Canada 26-Oct-09 BMO S&P/TSX Equal Weight Banks Index ETF ZEB CN Canada 26-Oct-09 BMO S&P/TSX Equal Weight Oil & Gas Index ETF ZEO CN Canada 26-Oct-09 BMO Emerging Markets Equity Index ETF ZEM CN Canada 26-Oct-09 BMO International Equity Hedged to CAD Index ETF ZDM CN Canada 26-Oct-09 BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF ZMT CN Canada 26-Oct-09 ComStage ETF iBoxx ! Liquid Sovereigns Diversified Overall TR CBOXESOV GR Europe 26-Oct-09 ComStage ETF iBoxx ! Liquid Sovereigns Diversified 1-3 TR CBOXES1 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Liquid Sovereigns Diversified 3-5 TR CBOXES3 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Liquid Sovereigns Diversified 5-7 TR CBOXES5 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Liquid Sovereigns Diversified 7-10 TR CBOXES7 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Liquid Sovereigns Diversified 10-15 TR CBOXES10 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Liquid Sovereigns Diversified 15+ TR CBOXES15 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Liquid Sovereigns Diversified 25+ TR CBOXES25 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Sovereigns Germany Capped 1-5 TR CBOXGS1 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Sovereigns Germany Capped 5-10 TR CBOXGS5 GR Europe 26-Oct-09 ComStage ETF iBoxx ! Sovereigns Germany Capped 10+ TR CBOXGS10 GR Europe 26-Oct-09 Mirae Asset Maps Tiger China ETF 117690 KS South Korea 21-Oct-09 Claymore/AlphaShares China All-Cap ETF YAO US US 19-Oct-09 OMXS30 Double Long ETF OMXDL SS Europe 14-Oct-09 OMXS30 Double Short ETF OMXDS SS Europe 14-Oct-09 Samsung KODEX Energy & Chemicals ETF 117460 KS South Korea 12-Oct-09 iShares DJ STOXX Global Select Dividend 100 (DE) SDGPEX GY Europe 09-Oct-09 UBS-ETF MSCI Canada CANCDA SW Europe 08-Oct-09 UBS-ETF MSCI Europe EUREUA SW Europe 08-Oct-09 UBS-ETF MSCI EMU Value EMVEUA SW Europe 08-Oct-09 UBS-ETF MSCI Pacific (ex Japan) PACUSA SW Europe 08-Oct-09 HSBC FTSE 100 ETF HUKX LN Europe 06-Oct-09 iShares MSCI Emerging Markets Eastern Europe Index Fund ESR US US 02-Oct-09 RP Growth ETF RPX US US 02-Oct-09 RP Focused Large Cap Growth ETF RWG US US 02-Oct-09 RP Technology ETF RPQ US US 02-Oct-09 RP Financials ETF RFF US US 02-Oct-09 September 2009 Listed Index Fund International Bond (Citigroup WGBI) Monthly Dividend Payment Type 1677 JP Japan 30-Sep-09 CASAM ETF MSCI World Energy CWE FP Europe 29-Sep-09

continued…

Figure 99 (continued…): ETF launches in 2009 TICKER REGION/ LAUNCH ETF NAME (BB) COUNTRY DATE September 2009 (continued) CASAM ETF MSCI World Financials CWF FP Europe 29-Sep-09 CASAM ETF MSCI Europe Materials C8M FP Europe 29-Sep-09 CASAM ETF Short MSCI Europe Daily C8E FP Europe 29-Sep-09 CASAM ETF Short MSCI USA Daily C2U FP Europe 29-Sep-09 CASAM ETF Real Estate REIT IEIF C8R FP Europe 29-Sep-09 CASAM ETF FTSE 100 C1U FP Europe 29-Sep-09 CASAM ETF Short DAX 30 C2D FP Europe 29-Sep-09 CASAM ETF Dow Jones STOXX 50 C5E FP Europe 29-Sep-09 CASAM ETF Dow Jones STOXX 600 C6E FP Europe 29-Sep-09 iShares MSCI Europe (Acc) IMEA LN Europe 28-Sep-09 iShares MSCI World (Acc) IWDA LN Europe 28-Sep-09 iShares MSCI Emerging Markets (Acc) IEMA LN Europe 28-Sep-09 iShares MSCI Japan (Acc) IJPA LN Europe 28-Sep-09 iShares S&P 500 (Acc) IACC LN Europe 28-Sep-09 iShares Barclays Euro Corporate Bond ex-Financials IEXF LN Europe 28-Sep-09 iShares Barclays Euro Corporate Bond ex-Financials 1-5 IEX5 LN Europe 28-Sep-09 iShares Barclays Euro Corporate Bond 1-5 IE15 LN Europe 28-Sep-09 iShares iBoxx £ Corporate Bond ex-Financials SSXF LN Europe 28-Sep-09 iShares Russell Top 200 Index Fund IWL US US 25-Sep-09 iShares Russell Top 200 Growth Index Fund IWY US US 25-Sep-09 iShares Russell Top 200 Value Index Fund IWX US US 25-Sep-09 SPDR S&P VRDO Municipal Bond ETF VRD US US 24-Sep-09 EasyETF DJ Brazil 15 EEB FP Europe 24-Sep-09 EasyETF DJ China 15 ECC FP Europe 24-Sep-09 EasyETF DJ Russia Titans 10 ERR FP Europe 24-Sep-09 EasyETF DJ India 15 EIA FP Europe 24-Sep-09 db x-trackers HSI Short Index ETF XHSS GR Europe 23-Sep-09 Thomson Reuters/Jefferies CRB Global Commodity Equity Index Fund CRBQ US US 19-Sep-09 db x-trackers iBOXX £ Gilts TR Index XBUT LN Europe 17-Sep-09 db x-trackers iBOXX UK Gilt Inflation-Linked TR Index XBUI LN Europe 17-Sep-09 db x-trackers iBOXX $ Treasuries TR Index XUTD LN Europe 17-Sep-09 db x-trackers iBOXX $ Treasuries 1-3 TR Index XUT3 LN Europe 17-Sep-09 db x-trackers USD IG Inflation Linked TreasuriesTR Index XUIT LN Europe 17-Sep-09 SPDR Wells Fargo Preferred Stock ETF PSK US US 17-Sep-09 Pimco 7-15 Year U.S. Treasury Index Fund TENZ US US 17-Sep-09 Samsung KODEX Inverse ETF 114800 KS South Korea 16-Sep-09 Dent Tactical ETF DENT US US 16-Sep-09 Emerging Global Shares Dow Jones Emerging Markets Financials Titans Index Fund EFN US US 16-Sep-09 PIMCO Broad U.S. TIPS Index Fund TIPZ US US 09-Sep-09 PIMCO 15+ Year US TIPS Index Fund LTPZ US US 08-Sep-09 EasyETF iTraxx Europe Main EIE FP Europe 08-Sep-09 Turkish Large-Cap Banks ETF BNKTR TI Europe 01-Sep-09 August 2009 MEXTRAC MEXTRAC MM Mexico 27-Aug-09 Mirae Asset Maps Tiger KTB ETF 114820 KS South Korea 27-Aug-09 HSBC FTSE 100 ETF HUKX LN Europe 25-Aug-09 db x-trackers DJ STOXX 600 Basic Resources Short Daily ETF XBRS GY Europe 21-Aug-09 db x-trackers DJ STOXX 600 Industrial Goods Short Daily ETF XIGS GY Europe 21-Aug-09 PIMCO 1-5 Year U.S. TIPS Index Fund STPZ US US 21-Aug-09 ProShares Short 20+ Year Treasury TBF US US 20-Aug-09 Global X FTSE Nordic 30 ETF GXF US US 19-Aug-09 Market Vectors Vietnam ETF VNM US US 14-Aug-09 ThaiDEX FTSE SET Large Cap ETF TFTSE TB Thailand 05-Aug-09

continued…



Figure 99 (continued…): ETF launches in 2009 TICKER REGION/ LAUNCH ETF NAME (BB) COUNTRY DATE July 2009 KITM KINDEX KTB ETF 114460 KS South Korea 31-Jul-09 Woori Credit Suisse KOSEF KTB ETF 114470 KS South Korea 31-Jul-09 Samsung KODEX Treasury Bond ETF 114260 KS South Korea 29-Jul-09 KStar KTB ETF 114100 KS South Korea 29-Jul-09 Dow Jones STOXX 600 Optimised Oil & Gas Source ETF XEPS GR Europe 28-Jul-09 Dow Jones STOXX 600 Optimised Financial Services Source ETF XFPS GR Europe 28-Jul-09 Dow Jones STOXX 600 Optimised Automobiles & Parts Source ETF XAPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Banks Source ETF X7PS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Basic Resources Source ETF XPPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Chemicals Source ETF Source ETF X4PS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Construction & Materials Source ETF XOPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Food & Beverage Source ETF X3PS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Health Care Source ETF XDPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Personal & Household Goods Source ETF XQPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Industrial Goods & Services Source ETF XNPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Insurance Source ETF XIPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Media Source ETF XMPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Retail Source ETF XRPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Technology Source ETF X8PS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Telecommunications Source ETF XKPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Travel & Leisure Source ETF XTPS GR Europe 27-Jul-09 Dow Jones STOXX 600 Optimised Utilities Source ETF X6PS GR Europe 27-Jul-09 db x-trackers DB Commodity Booster DJ-UBSCI EUR ETF XCBE GY Europe 24-Jul-09 Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index ETF EEG US US 22-Jul-09 MAXIS S&P Mitsubishi Group ETF 1670 JP Japan 17-Jul-09 Direxion Daily Real Estate Bull 3x Shares DRN US US 16-Jul-09 Direxion Daily Real Estate Bear 3x Shares DRV US US 16-Jul-09 Lyxor ETF Ibex 35 Inverso INVEX SM Europe 16-Jul-09 ProShares Credit Suisse 130/30 CSM US US 14-Jul-09 db x-trackers S&P U.S. Carbon Efficient ETF XGRD LN Europe 13-Jul-09 Xmtch (IE) on iBoxx USD Inflation Linked XMBILU SW Europe 13-Jul-09 EasyETF BNP Paribas Global Renewable Energy ERW FP Europe 10-Jul-09 EasyETF DJ BRIC 50 EBR FP Europe 10-Jul-09 iShares LATixx Mexico UMSTRAC UMSTRAC MM Mexico 09-Jul-09 iShares LATixx Mexico M5TRAC M5TRAC MM Mexico 09-Jul-09 iShares LATixx Mexico M10TRAC M10TRAC MM Mexico 09-Jul-09 iShares LATixx Mexico CETETRAC CETETRC MM Mexico 09-Jul-09 iShares LATixx Mexico UDITRAC UDITRAC MM Mexico 09-Jul-09 db x-trackers - Euro Inflation Swap 5 Year Total Return Index ETF XIF5 GY Europe 08-Jul-09 ALPS Equal Sector Weight ETF EQL US US 07-Jul-09 Horizons BetaPro COMEX Silver Bear Plus ETF HZD CN Canada 06-Jul-09 Xmtch (IE) on iBoxx EUR Govt 3-7 XMBGE7 SW Europe 06-Jul-09 Xmtch (IE) on iBoxx EUR Inflation Linked XMBILE SW Europe 06-Jul-09 Xmtch (IE) on MSCI Japan Large Cap XMJPLC SW Europe 03-Jul-09 Xmtch (IE) on MSCI UK Large Cap XMUKLC SW Europe 03-Jul-09 Xmtch (IE) on MSCI USA Large Cap XMUSLC SW Europe 03-Jul-09

continued…

Figure 99 (continued…): ETF launches in 2009 TICKER REGION/ LAUNCH ETF NAME (BB) COUNTRY DATE July 2009 (continued) Xmtch (IE) on iBoxx EUR Govt 1-3 XMBGE3 SW Europe 03-Jul-09 Xmtch (IE) on iBoxx USD Govt 1-3 XMBGU3 SW Europe 03-Jul-09 Xmtch (IE) on iBoxx USD Govt 3-7 XMBGU7 SW Europe 03-Jul-09 Xmtch (IE) on iBoxx EUR Govt 7-10 XMBGE0 SW Europe 03-Jul-09 Xmtch (IE) on MSCI EMU Small Cap XMEUSC SW Europe 03-Jul-09 Xmtch (IE) on MSCI Japan Small Cap XMJPSC SW Europe 03-Jul-09 Xmtch (IE) on MSCI UK Small Cap XMUKSC SW Europe 03-Jul-09 Xmtch (IE) on MSCI USA Small Cap XMUSSC SW Europe 03-Jul-09 Xmtch (CH) on Swiss Bond Index Domestic Government 1-3 XTBIK SW Europe 03-Jul-09 ProShares Ultra Russell3000 UWC US US 02-Jul-09 ProShares UltraShort Russell3000 TWQ US US 02-Jul-09 JETS Dow Jones Islamic Market International Index FundJVS US US 01-Jul-09 First Trust Nasdaq ABA Community Bank Fund QABA US US 01-Jul-09 June 2009 NBGAM ETF Athex General Domestic Equities Fund ETFASE GA Europe 29-Jun-09 ETFS CAC 40 2x Long Fund FRL2 NA Europe 29-Jun-09 ETFS CAC 40 2x Short Fund FRS2 NA Europe 29-Jun-09 CASAM ETF MSCI World CW8 FP Europe 29-Jun-09 CASAM ETF MSCI World Ex EMU CM9 FP Europe 29-Jun-09 CASAM ETF MSCI World Ex Europe CE8 FP Europe 29-Jun-09 CASAM ETF EuroMTS Broad CB3 FP Europe 29-Jun-09 CASAM ETF EuroMTS Broad 1-3 C13 FP Europe 29-Jun-09 CASAM ETF EuroMTS Broad 3-5 C33 FP Europe 29-Jun-09 CASAM ETF EuroMTS Broad 5-7 C53 FP Europe 29-Jun-09 CASAM ETF EuroMTS Broad 7-10 C73 FP Europe 29-Jun-09 CASAM ETF EuroMTS Broad 10-15 C10 FP Europe 29-Jun-09 CASAM ETF EuroMTS Cash 3 Months C3M FP Europe 29-Jun-09 CASAM ETF Euro Corporates CC4 FP Europe 29-Jun-09 CASAM ETF Euro Inflation CI3 FP Europe 29-Jun-09 CASAM ETF Short Dow Jones Euro STOXX 50 C5S FP Europe 29-Jun-09 CASAM ETF Leveraged CAC 40 CL4 FP Europe 29-Jun-09 CASAM ETF Leveraged Dow Jones Euro STOXX 50 C5L FP Europe 29-Jun-09 CASAM ETF Leveraged MSCI USA CL2 FP Europe 29-Jun-09 CASAM ETF Leveraged MSCI Europe CLE FP Europe 29-Jun-09 ProShares UltraPro Short S&P 500 SPXU US US 25-Jun-09 ProShares UltraPro S&P 500 UPRO US US 25-Jun-09 Horizons BetaPro COMEX Gold ETF HUG CN Canada 25-Jun-09 Horizons BetaPro COMEX Silver ETF HUZ CN Canada 25-Jun-09 Horizons BetaPro Winter-Term NYMEX Crude Oil ETF HUC CN Canada 25-Jun-09 Horizons BetaPro Winter-Term NYMEX Natural Gas ETF HUN CN Canada 25-Jun-09 iShares CDN MSCI Emerging Markets Index Fund XEM CN Canada 24-Jun-09 iShares CDN MSCI World Index Fund XWD CN Canada 24-Jun-09 ProShares UltraShort MSCI Pacific ex-Japan JPX US US 23-Jun-09 iShares MSCI All Peru Capped Index Fund EPU US US 22-Jun-09 ETFS FTSE 100 Leveraged (2x) Fund LUK2 LN Europe 22-Jun-09 ETFS FTSE 100 Super Short Strategy (2x) Fund SUK2 LN Europe 22-Jun-09 ETFS Dow Jones EURO STOXX 50 Leveraged (2x) Fund LEU2 LN Europe 22-Jun-09 ETFS Dow Jones EURO STOXX 50 Double Short (2x) Fund SEU2 LN Europe 22-Jun-09 ETFS DAX 2x Long Fund DEL2 LN Europe 22-Jun-09 ETFS DAX 2x Short Fund DES2 LN Europe 22-Jun-09 iShares S&P Emerging Markets Infrastructure Index Fund EMIF US US 19-Jun-09 ProShares UltraShort MSCI Brazil BZQ US US 19-Jun-09 ProShares UltraShort MSCI Europe EPV US US 18-Jun-09 ProShares UltraShort MSCI Mexico Investable Market SMK US US 18-Jun-09 ETFlab MSCI USA ETFUSAC GR Europe 16-Jun-09

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Figure 99 (continued…): ETF launches in 2009 TICKER REGION/ LAUNCH ETF NAME (BB) COUNTRY DATE June 2009 (continued) ETFlab MSCI USA MC ETFUSMC GR Europe 16-Jun-09 eRAFI SA Resources 20 Index ETF Portfolio RAFRES SJ South Africa 15-Jun-09 eRAFI SA Financial 15 Index ETF Portfolio RAFFIN SJ South Africa 15-Jun-09 eRAFI SA Industrial 25 Index ETF Portfolio RAFIND S J South Africa 15-Jun-09 ETFlab MSCI Europe ETFEUAC GR Europe 10-Jun-09 ETFlab MSCI Europe MC ETFEUMC GR Europe 10-Jun-09 ETFlab MSCI Japan ETFJPAC GR Europe 10-Jun-09 ETFlab MSCI Japan MC ETFJPMC GR Europe 10-Jun-09 IQ Hedge Macro Tracker ETF MCRO US US 09-Jun-09 ProShares Ultra MSCI Japan EZJ US US 05-Jun-09 BMO Canadian Government Bond Index ETF BGB CN Canada 04-Jun-09 BMO Dow Jones Canada Titans 60 Index ETF BCA CN Canada 04-Jun-09 BMO US Equity Index ETF BUE CN Canada 04-Jun-09 BMO Dow Jones Diamonds Index ETF BDJ CN Canada 04-Jun-09 ProShares Ultra MSCI EAFE EFO US US 04-Jun-09 ProShares Ultra MSCI Emerging Markets EET US US 04-Jun-09 ProShares Ultra FTSE/Xinhua China 25 XPP US US 04-Jun-09 PIMCO 1-3 Year U.S. Treasury Index Fund TUZ US US 02-Jun-09 May 2009 ComStage Commerzbank Commodity EW Index TR CBCOMM GY Europe 28-May-09 Emerging Global Shares Dow Jones Emerging Markets Metals & Mining Titans ETF EMT US US 21-May-09 Emerging Global Shares Dow Jones Emerging Markets Energy Titans ETF EEO US US 21-May-09 MAXIS TOPIX ETF 1348 JP Japan 15-May-09 Market Vectors Brazil Small-Cap ETF BRF US US 14-May-09 Vanguard Australian Shares Index ETF VAS AU Australia 08-May-09 db x-trackers MSCI Pan-Euro TRN Index ETF XMPE GR Europe 08-May-09 WisdomTree Dreyfus Emerging Currency Fund CEW US US 06-May-08 db x-trackers DB Commodity Booster - S&P GSCI Light Energy Euro ETF XCBL GY Europe 05-May-09 Grail American Beacon Large Cap Value ETF GVT US US 04-May-09 April 2009 SPDR KBW Mortgage Finance ETF KME US US 30-Apr-09 ETFlab DJ STOXX 50 ETFSTX5 GR Europe 28-Apr-09 Listed Index Fund FTSE Japan Green Chip 35 1347 JP Japan 28-Apr-09 iShares MSCI Asia APEX 50 Index ETF 3010 HK Hong Kong 23-Apr-09 iShares MSCI Asia APEX Mid Cap Index ETF 3032 HK Hong Kong 23-Apr-09 iShares MSCI Asia APEX Small Cap Index ETF 3004 HK Hong Kong 23-Apr-09 iShares MSCI Emerging Asia Index ETF 2802 HK Hong Kong 23-Apr-09 DJ EURO STOXX 50 Source ETF SDJE50 GY Europe 20-Apr-09 DJ EURO STOXX Select Dividend 30 Source ETF SDJDIV GY Europe 20-Apr-09 DJ STOXX 50 Source ETF SDJS50 GY Europe 20-Apr-09 DJ STOXX 600 Source ETF SDJ600 GY Europe 20-Apr-09 DJ STOXX Mid 200 Source ETF SDJMID GY Europe 20-Apr-09 DJ STOXX Small 200 Source ETF SDJSML GY Europe 20-Apr-09 FTSE 100 Source ETF SF100 GY Europe 20-Apr-09 FTSE 250 Source ETF SF250 GY Europe 20-Apr-09 MSCI Europe Source ETF SMSEUR GY Europe 20-Apr-09 MSCI Japan Source ETF SMSJPN GY Europe 20-Apr-09 MSCI USA Source ETF SMSUSA GY Europe 20-Apr-09 MSCI World Source ETF SMSWLD GY Europe 20-Apr-09 Russell 2000 Source ETF SR2000 GY Europe 20-Apr-09 iShares Barclays Euro Government Bond 5-7 IBGY LN Europe 20-Apr-09 iShares Barclays Euro Government Bond 10-15 IBGZ LN Europe 20-Apr-09 iShares Barclays Euro Treasury Bond SEGA LN Europe 20-Apr-09 iShares FTSE UK Gilts 0-5 IGLS LN Europe 20-Apr-09 iShares FTSE Developed World ex-UK SWXU LN Europe 20-Apr-09 iShares MSCI Europe ex-EMU SXMU LN Europe 20-Apr-09 iShares MSCI Pacific ex-Japan SPXJ LN Europe 20-Apr-09 SPDR Barclays Capital Convertible Bond ETF CWB US US 16-Apr-09 Direxion Daily 10-Year Treasury Bull 3x Shares TYD US US 16-Apr-09

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Figure 99 (continued…): ETF launches in 2009 TICKER REGION/ LAUNCH ETF NAME (BB) COUNTRY DATE April 2009 (continued) Direxion Daily 10-Year Treasury Bear 3x Shares TYO US US 16-Apr-09 Direxion Daily 30-Year Treasury Bull 3x Shares TMF US US 16-Apr-09 Direxion Daily 30-Year Treasury Bear 3x Shares TMV US US 16-Apr-09 World Index Shares ETFS - SSE 50 China Tracker 3024 HK Hong Kong 15-Apr-09 ETFlab DAXplus Maximum Dividend ETFDXMD GR Europe 15-Apr-09 db x-trackers EURO Interest Rates Volatility TR XVOL GR Europe 08-Apr-09 db x-trackers EURO Interest Rates Volatility Short Total Return XVLS GR Europe 08-Apr-09 IST 30 ETF IST30 TI Europe 07-Apr-09 Claymore Broad Emerging Markets ETF CWO CN Canada 07-Apr-09 Lyxor ETF Euro Corporate Bond CRP FP Europe 07-Apr-09 Vanguard FTSE All World ex-US Small-Cap ETF VSS US US 06-Apr-09 iShares Mexico Corporate Bond TRAC CORPTRC MM Mexico 02-Apr-09 CASAM ETF EONIA CE3 FP Europe 02-Apr-09 Shariah Benchmark Exchange Traded Scheme - Shariah BeES SBEES IN India 01-Apr-09 March 2009 IQ Hedge Multi-Strategy Tracker ETF QAI US US 25-Mar-09 ETFlab Dt. Boerse EUROGOV Germany ETFGS11 GR Europe 23-Mar-09 ETFlab Dt. Boerse EUROGOV Germany 1-3 ETFGS13 GR Europe 23-Mar-09 ETFlab Dt. Boerse EUROGOV Germany 3-5 ETFGS35 GR Europe 23-Mar-09 ETFlab Dt. Boerse EUROGOV Germany 5-10 ETFGS51 GR Europe 23-Mar-09 ETFlab Dt. Boerse EUROGOV Germany 10+ ETFGS10 GR Europe 23-Mar-09 ETFlab Dt. Boerse EUROGOV Germany Money Market ETFGSMM GR Europe 23-Mar-09 iShares MSCI GCC Countries ex-Saudi Arabia IGCC LN Europe 20-Mar-09 Horizons BetaPro S&P/TSX Capped Energy Inverse HIE CN Canada 18-Mar-09 Horizons BetaPro S&P/TSX Global Gold Inverse HIG CN Canada 12-Mar-09 SPDR Barclays Capital Long Term Credit Bond LWC US US 11-Mar-09 db x-trackers - Russell 2000 XRU2 GR Europe 11-Mar-09 db x-trackers - db Hedge Fund XHFI GR Europe 11-Mar-09 ETFlab iBoxx ! Liquid Sovereign Diversified 5-7 ETFES57 GR Europe 10-Mar-09 iShares Citigroup Global Government Bond SGLO LN Europe 09-Mar-09 iShares Barclays Euro Aggregate Bond SEAG LN Europe 09-Mar-09 iShares Barclays Euro Treasury Bond 0-1 IBGE LN Europe 09-Mar-09 iShares Barclays Euro Corporate Bond IEBC LN Europe 09-Mar-09 iShares MSCI Emerging Markets SmallCap IEMS LN Europe 09-Mar-09 Horizons BetaPro S&P/TSX Capped Financials Inverse HIF CN Canada 09-Mar-09 ETFlab iBoxx ! Liquid Sovereign Diversified 1-10 ETFES11 GR Europe 09-Mar-09 ETFlab iBoxx ! Liquid Sovereign Diversified 1-3 ETFES13 GR Europe 09-Mar-09 ETFlab iBoxx ! Liquid Sovereign Diversified 10+ ETFES10 GR Europe 09-Mar-09 ETFlab iBoxx ! Liquid Sovereign Diversified 7-10 ETFES71 GR Europe 09-Mar-09 ETFlab iBoxx ! Liquid Sovereign Diversified 3-5 ETFES35 GR Europe 09-Mar-09 Horizons BetaPro S&P/TSX 60 Inverse HIX CN Canada 06-Mar-09 CASAM ETF MSCI Pacific Ex Japan CP9 FP Europe 04-Mar-09 CASAM ETF MSCI Europe Growth CG9 FP Europe 04-Mar-09 CASAM ETF MSCI Europe Value CV9 FP Europe 04-Mar-09 CASAM ETF MSCI Europe High Dividend CD9 FP Europe 04-Mar-09 CASAM ETF MSCI EMU High Dividend CD8 FP Europe 04-Mar-09 CASAM ETF MSCI Europe IT CI6 FP Europe 04-Mar-09 CASAM ETF MSCI Europe Telecom Services CT5 FP Europe 04-Mar-09 CASAM ETF CAC 40 Short C4S FP Europe 04-Mar-09 CASAM ETF MSCI Eastern Europe Ex Russia CE9 FP Europe 03-Mar-09 CASAM ETF MSCI China CC1 FP Europe 03-Mar-09 CASAM ETF MSCI India CI2 FP Europe 03-Mar-09 EasyETF CAC40 Double Short EZC FP Europe 02-Mar-09

continued…



Figure 99 (continued…): ETF launches in 2009 TICKER REGION/ LAUNCH ETF NAME (BB) COUNTRY DATE February 2009 EasyETF Topix EJP FP Europe 26-Feb-09 EasyETF DJ Stoxx 600 Double Short EZZ FP Europe 26-Feb-09 MAXIS NIKKEI 225 ETF 1346 JP Japan 25-Feb-09 EasyETF Euro Stoxx 50 Double Short EZD FP Europe 25-Feb-09 DBS Singapore STI ETF DBSSTI SP Singapore 25-Feb-09 SPDR Barclays Capital Intermediate Term Credit Bond ETF ITR US US 11-Feb-09 db x-trackers - MSCI AC Asia ex Japan TRN XAXJ GR Europe 10-Feb-09 db x-trackers - MSCI Pacific ex Japan XPXJ GR Europe 10-Feb-09 db x-trackers - DJ STOXX 600 XSX6 GR Europe 10-Feb-09 Global X/InterBolsa FTSE Colombia 20 ETF GXG US US 09-Feb-09 Market Vectors High Yield Municipal Index ETF HYD US US 05-Feb-09 KITM KINDEX SAMSUNG Group SW ETF 108450 KS South Korea 03-Feb-09 Tongyang First Star Bluechip ETF 108630 KS South Korea 03-Feb-09 Market Vectors Pre-Refunded Municipal Index ETF PRB US US 03-Feb-09 January 2009 PowerShares Middle East North Africa Nasdaq OMX Fund PSM FP Europe 29-Jan-09 SPDR Barclays Capital Short Term International Treasury Bond ETF BWZ US US 27-Jan-09 SPDR Barclays Capital Mortgage Backed Bond ETF MBG US US 27-Jan-09 Claymore/NYSE Arca Airline ETF FAA US US 26-Jan-09 Yurie TREX 200 ETF 108590 KS South Korea 23-Jan-09 RevenueShares Navellier Overall A-100 RWV US US 23-Jan-09 KITM KINDEX KOSDAQ STAR ETF 108440 KS South Korea 22-Jan-09 KStar KOSDAQ Elite30 ETF 108480 KS South Korea 22-Jan-09 iShares S&P/Citigroup International Treasury Bond IGOV US US 21-Jan-09 iShares S&P/Citigroup 1-3 Year International Treasury Bond ISHG US US 21-Jan-09 Market Vectors Indonesia Index ETF IDX US US 20-Jan-09 Direxion Mid Cap Bear 3x Shares MWN US US 09-Jan-09 Direxion Mid Cap Bull 3x Shares MWJ US US 08-Jan-09 Horizons AlphaPro Managed S&P/TSX 60 ETF HAX CN Canada 07-Jan-09 Source: Various ETF Providers, Exchanges, ETF Research and Implementation Strategy Team, BlackRock, Bloomberg. Figure 100: ETP launches in 2009 TICKER REGION/ LAUNCH ETP NAME (BB) COUNTRY DATE September 2009 United States Short Oil Fund LP DNO US US 24-Sep-09 ETFS Physical Swiss Gold Shares SGOL US US 09-Sep-09 August 2009 Tachlit Short Tel Bond 60 TBN6028 IT Israel 20-Aug-09 Simplex WTI Crude Oil Price Linked ETF 1671 JP Japan 03-Aug-09 July 2009 ETFS Silver Trust SIVR US US 24-Jul-09 Hadas Gilon Gov. Bonds HDSGLN5 IT Israel 05-Jul-09 Hadas Shahar Gov. Bonds 0-2 Years HDS206 IT Israel 05-Jul-09 Hadas Shahar Gov. Bonds 2-5 Years HDS257 IT Israel 05-Jul-09 Hadas Shahar Gov. Bonds 5+Years HDS58 IT Israel 05-Jul-09 June 2009 MacroShares Major Metro Housing Down Shares DMM US US 30-Jun-09 MacroShares Major Metro Housing Up Shares UMM US US 30-Jun-09 Source Physical Gold P-ETC SGLD LN Europe 30-Jun-09 Harel TA-25 HRL25 IT Israel 24-Jun-09 Psagot Sal Yeter 120 PS12019 IT Israel 11-Jun-09 May 2009 SBI Gold Exchange Traded Scheme SGETS IN India 28-May-09 Tachlit Real-Estate 15 TCLGL32 IT Israel 27-May-09 Harel TA-Banks HRLBNK IT Israel 25-May-09 Harel TA-75 HRL75 IT Israel 25-May-09

continued…

Figure 100 (continued…): ETP launches in 2009 TICKER REGION/ LAUNCH ETP NAME (BB) COUNTRY DATE May 2009 (continued) Harel Tel-Bond 40 HRLTB40 IT Israel 10-May-09 Harel TA-100 HRL100 IT Israel 10-May-09 April 2009 Harel Gilon Gov. Bonds HRLGIL IT Israel 23-Apr-09 Harel Galil Bonds 0-2 y HRLGLL02 IT Israel 23-Apr-09 Harel Shahar Gov. Bonds 2-5 Years HRLSHA IT Israel 23-Apr-09 Agriculture Source T-ETC SFARM GY Europe 20-Apr-09 Coffee Source T-ETC SCOFF GY Europe 20-Apr-09 Corn Source T-ETC SCORN GY Europe 20-Apr-09 Cotton Source T-ETC SCOTN GY Europe 20-Apr-09 Crude Oil Source T-ETC SWTI GY Europe 20-Apr-09 Energy Source T-ETC SENERGY GY Europe 20-Apr-09 Gold Source T-ETC SGLD GY Europe 20-Apr-09 Grains Source T-ETC SGRAIN GY Europe 20-Apr-09 Industrial Metals Source T-ETC SIMETL GY Europe 20-Apr-09 Light Energy Source T-ETC SGSLE GY Europe 20-Apr-09 Livestock Source T-ETC SLIVE GY Europe 20-Apr-09 Natural Gas Source T-ETC SNGAS GY Europe 20-Apr-09 Non-Energy Source T-ETC SNONEN GY Europe 20-Apr-09 Petroleum Source T-ETC SPETRO GY Europe 20-Apr-09 Precious Metals Source T-ETC SPMETL GY Europe 20-Apr-09 S&P GSCI Source T-ETC SGSCI GY Europe 20-Apr-09 Silver Source T-ETC SSILVR GY Europe 20-Apr-09 Softs Source T-ETC SSOFT GY Europe 20-Apr-09 Soybeans Source T-ETC SSOYB GY Europe 20-Apr-09 Sugar Source T-ETC SSUGAR GY Europe 20-Apr-09 Ultra-Light Energy Source T-ETC SGSULE GY Europe 20-Apr-09 Wheat Source T-ETC SWHEAT GY Europe 20-Apr-09 JPMorgan Alerian MLP Index ETN AMJ US US 02-Apr-09 March 2009 Lyxor ETN Long Gold LTNG LN Europe 23-Mar-09 Psagot Sal Short Tel Aviv 100 PT10039 IT Israel 16-Mar-09 Psagot Sal Short Tel Aviv 25 PTA2536 IT Israel 16-Mar-09 Dubai Gold Securities GOLD DU UAE 02-Mar-09 February 2009 ETFS Physical Platinum ETPMPT AU Australia 12-Feb-09 Harel Tel-Bond 20 HRLTB20 IT Israel 09-Feb-09 Harel Tel-Bond 60 HRLTB60 IT Israel 09-Feb-09 ETFS Physical Palladium ETPMPD AU Australia 04-Feb-09 Tachlit Short 75 (strike 900) TCT7534 IT Israel 02-Feb-09 ETFS Physical Silver ETPMAG AU Australia 02-Feb-09 ETFS Physical PM Basket ETPMPM AU Australia 02-Feb-09 January 2009 iPath S&P 500 VIX Mid-Term Futures ETN VXZ US US 29-Jan-09 iPath S&P 500 VIX Short-Term Futures ETN VXX US US 29-Jan-09 Harel Galil Bonds 2-5 y HRLGLL25 IT Israel 27-Jan-09 Psagot Sal Tel Aviv 75 PST7517 IT Israel 26-Jan-09 Tachlit Short 25 (strike 1200) TCT2531 IT Israel 26-Jan-09 Harel TA-25 HRLS25 IT Israel 20-Jan-09 Harel TA-25 HRLA25 IT Israel 20-Jan-09 Source: Various ETP Providers, Exchanges, ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 101: Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE EUROPE Amas Bank Amas Bank Sensex Commerzbank ComStage ETF CAC40 ComStage ETF CAC40 Short TR ComStage ETF CAC40 Leverage ComStage ETF iBoxx ! Liquid Sovereigns Diversified 3m-1 TR ComStage ETF iBoxx ! Sovereigns Germany Capped 3m-2 TR ComStage ETF iBoxx ! Sovereigns Inflation-Linked Euro-Inflation TR ComStage ETF PSI 20® ComStage ETF PSI 20® Leverage EasyETF EasyETF FTSE EPRA UK EasyETF iBoxx Euro Inflation Finans Portfoy Yonetimi Turkish Large Cap Banks ETF iShares iShares Barclays Global Aggregate Bond NBG Asset Management NBGAM ETF Stoxx Greece - Turkey 30 Equities Fund PowerShares PowerShares Nasdaq OMX Ireland Source Markets CAC Source ETF CECE Source ETF DAX Source ETF DJ EURO STOXX Mid Cap Source ETF DJ EURO STOXX Small Cap Source ETF Dow Jones Industrial Average Source ETF EONIA Source ETF EPRA Eurozone Source ETF MDAX Source ETF MSCI Brazil Source ETF MSCI BRIC Source ETF MSCI China Source ETF MSCI Emerging Markets Source ETF MSCI India Source ETF MSCI Mexico Source ETF MSCI North America Source ETF MSCI Pacific ex Japan Source ETF MSCI Turkey Source ETF RDX Source ETF S&P/MIB Source ETF SMI Source ETF

UNITED STATES AdvisorShares Legacy Long/Short ETF WCM/BNY Mellon Focused Growth ADR ETF ALPS ETF Trust Agricultural Producers ETF Energy Producers ETF Industrial Metals Producers ETF Precious Metals Producers ETF Commodity Producers Composite ETF Capital West Securities Capital West Oklahoma Charles Schwab Investment Management Schwab Emerging Markets Equity ETF Schwab International Equity ETF Schwab International Small-Cap Equity ETF Schwab U.S. Broad Markets ETF Schwab U.S. Large-Cap ETF Schwab U.S. Large-Cap Growth ETF

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Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE Charles Schwab Investment Management (continued) Schwab U.S. Large-Cap Value ETF Schwab U.S. Mid-Cap ETF Schwab U.S. Small-Cap ETF Claymore Securities Claymore Active National Municipal ETF Claymore Delta Global Agribusiness ETF Claymore Delta Global Hard Assets ETF Claymore Delta Global Infrastructure ETF Claymore Lafer MacroEconomic Global Equity ETF Claymore/BIR All-Star Select Claymore/Clear Canadian Royalty Trust ETF Claymore/Dorchester: The Capital Markets Equities ETF Claymore/S&P Commodity Trends Strategy ETF Claymore/Sabrient CEF Balanced Opportunity Claymore/Sabrient CEF Income Opportunity Claymore/Zacks Growth & Income Direxion Shares 2-Year Treasury Bear 3X Shares 2-Year Treasury Bull 3X Shares 5-Year Treasury Bear 3X Shares 5-Year Treasury Bull 3X Shares 10-Year Treasury Bear 3X Shares 10-Year Treasury Bull 3X Shares 30-Year Treasury Bear 3X Shares 30-Year Treasury Bull 3X Shares BRIC Bear 3X Shares BRIC Bull 3X Shares China Bear 3X Shares China Bull 3X Shares Clean Energy Bear 3X Shares Clean Energy Bull 3X Shares Commodity Bear 3X Shares Commodity Bull 3X Shares Direxion Monthly 10-Year Treasury Bear 2X Shares Direxion Monthly 10-Year Treasury Bear 3X Shares Direxion Monthly 10-Year Treasury Bull 2X Shares Direxion Monthly 10-Year Treasury Bull 3X Shares Direxion Monthly 2-Year Treasury Bear 2X Shares Direxion Monthly 2-Year Treasury Bear 3X Shares Direxion Monthly 2-Year Treasury Bull 2X Shares Direxion Monthly 2-Year Treasury Bull 3X Shares Direxion Monthly 30-Year Treasury Bear 2X Shares Direxion Monthly 30-Year Treasury Bear 3X Shares Direxion Monthly 30-Year Treasury Bull 2X Shares Direxion Monthly 30-Year Treasury Bull 3X Shares Direxion Monthly 5-Year Treasury Bear 2X Shares Direxion Monthly 5-Year Treasury Bear 3X Shares Direxion Monthly 5-Year Treasury Bull 2X Shares Direxion Monthly 5-Year Treasury Bull 3X Shares Direxion Monthly BRIC Bear 2X Shares Direxion Monthly BRIC Bear 3X Shares Direxion Monthly BRIC Bull 2X Shares Direxion Monthly BRIC Bull 3X Shares Direxion Monthly China Bear 2X Shares Direxion Monthly China Bear 3X Shares Direxion Monthly China Bull 2X Shares Direxion Monthly China Bull 3X Shares Direxion Monthly Clean Energy Bear 2X Shares Direxion Monthly Clean Energy Bear 3X Shares Direxion Monthly Clean Energy Bull 2X Shares Direxion Monthly Clean Energy Bull 3X Shares

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Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE Direxion Shares (continued…) Direxion Monthly Developed Markets Bear 2X Shares Direxion Monthly Developed Markets Bear 3X Shares Direxion Monthly Developed Markets Bull 2X Shares Direxion Monthly Developed Markets Bull 3X Shares Direxion Monthly Emerging Markets Bear 2X Shares Direxion Monthly Emerging Markets Bear 3X Shares Direxion Monthly Emerging Markets Bull 2X Shares Direxion Monthly Emerging Markets Bull 3X Shares Direxion Monthly Energy Bear 2X Shares Direxion Monthly Energy Bear 3X Shares Direxion Monthly Energy Bull 2X Shares Direxion Monthly Energy Bull 3X Shares Direxion Monthly Financial Bear 2X Shares Direxion Monthly Financial Bear 3X Shares Direxion Monthly Financial Bull 2X Shares Direxion Monthly Financial Bull 3X Shares Direxion Monthly Homebuilders Bear 2X Shares Direxion Monthly Homebuilders Bear 3X Shares Direxion Monthly Homebuilders Bull 2X Shares Direxion Monthly Homebuilders Bull 3X Shares Direxion Monthly India Bear 2X Shares Direxion Monthly India Bear 3X Shares Direxion Monthly India Bull 2X Shares Direxion Monthly India Bull 3X Shares Direxion Monthly Large Cap Bear 2X Shares Direxion Monthly Large Cap Bear 3X Shares Direxion Monthly Large Cap Bull 2X Shares Direxion Monthly Large Cap Bull 3X Shares Direxion Monthly Latin America Bear 2X Shares Direxion Monthly Latin America Bear 3X Shares Direxion Monthly Latin America Bull 2X Shares Direxion Monthly Latin America Bull 3X Shares Direxion Monthly Mid Cap Bear 2X Shares Direxion Monthly Mid Cap Bear 3X Shares Direxion Monthly Mid Cap Bull 2X Shares Direxion Monthly Mid Cap Bull 3X Shares Direxion Monthly Real Estate Bear 2X Shares Direxion Monthly Real Estate Bull 2X Shares Direxion Monthly Small Cap Bear 2X Shares Direxion Monthly Small Cap Bear 3X Shares Direxion Monthly Small Cap Bull 2X Shares Direxion Monthly Small Cap Bull 3X Shares Direxion Monthly Technology Bear 2X Shares Direxion Monthly Technology Bear 3X Shares Direxion Monthly Technology Bull 2X Shares Direxion Monthly Technology Bull 3X Shares Direxion Monthly Total Market Bear 2X Shares Direxion Monthly Total Market Bear 3X Shares Direxion Monthly Total Market Bull 2X Shares Direxion Monthly Total Market Bull 3X Shares Dow 30 Bear 3X Shares Dow 30 Bull 3X Shares Homebuilders Bear 3X Shares Homebuilders Bull 3X Shares India Bear 3X Shares India Bull 3X Shares Japan Bear 3X Shares Japan Bull 3X Shares Latin America Bear 3X Shares Latin America Bull 3X Shares

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Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE Direxion Shares (continued…) Nasdaq-100 Bear 3X Shares Nasdaq-100 Bull 3X Shares Real Estate Bear 3X Shares Real Estate Bull 3X Shares Technology Bear 3X Shares Technology Bull 3X Shares Total Market Bear 3X Shares Total Market Bull 3X Shares Emerging Global Advisors Emerging Global Shares DJ Emerging Markets Basic Materials Titans Index Fund Emerging Global Shares DJ Emerging Markets Basic Resources Titans Index Fund Emerging Global Shares DJ Emerging Markets Consumer Goods Titans Index Fund Emerging Global Shares DJ Emerging Markets Consumer Services Titans Index Fund Emerging Global Shares DJ Emerging Markets Health Care Titans Index Fund Emerging Global Shares DJ Emerging Markets Industrials Titans Index Fund Emerging Global Shares DJ Emerging Markets Oil and Gas Titans Index Fund Emerging Global Shares DJ Emerging Markets Technology Titans Index Fund Emerging Global Shares DJ Emerging Markets Telecommunications Titans Index Fund Emerging Global Shares DJ Emerging Markets Utilities Titans Index Fund Exchange Traded Spreads Trust ETSpreads High Yield CDS Tighten Fund ETSpreads High Yield CDS Widen Fund ETSpreads Investment Grade CDS Tighten Fund ETSpreads Investment Grade CDS Widen Fund Factor Advisors FactorETF 2x Value Factor Shares FactorETF 2x Growth Factor Shares FactorETF 2x Small Factor Shares FactorETF 2x Large Factor Shares FactorETF 2x Momentum Factor Shares FactorETF 2x Reversal Factor Shares FactorETF 2x Non-US Developed Factor Shares FactorETF 2x US Developed Factor Shares FactorETF 2x Emerging Factor Shares FactorETF 2x Non-Emerging Factor Shares FactorETF 2x Financial Factor Shares FactorETF 2x Technology Factor Shares FactorETF 2x REIT Factor Shares FactorETF 2x Gold Factor Shares FactorETF 2x Equity Premium Shares FactorETF 2x Anti-Equity Premium Shares FactorETF 2x Steepening Yield Curve Factor Shares FactorETF 2x Flattening Yield Curve Factor Shares FactorETF 2x Falling Credit Spread Factor Shares FactorETF 2x Rising Credit Spread Factor Shares FactorETF 2x Falling Inflation Factor Shares FactorETF 2x Rising Inflation Factor Shares FaithShares FaithShares Baptist Values Fund FaithShares Catholic Values Fund FaithShares Christian Values Fund FaithShares Lutheran Values Fund FaithShares Methodist Values Fund First Trust Advisors First Trust Europe Select AlphaDEX First Trust Japan Select AlphaDEX First Trust Global IPO Index Fund Firsthand Capital Firsthand Technology FocusShares Progressive Principal Protection 2015 Target Date Index Progressive Principal Protection 2020 Target Date Index Progressive Principal Protection 2025 Target Date Index Progressive Principal Protection 2030 Target Date Index

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Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE FocusShares (continued) Progressive Principal Protection 2035 Target Date Index Progressive Principal Protection 2040 Target Date Index Global X Funds Global X China Consumer ETF Global X China Energy ETF Global X China Financials ETF Global X China Industrials ETF Global X China Materials ETF Global X China Technology ETF Global X Denmark ETF Global X Emerging Africa ETF Global X Finland ETF Global X FTSE Argentina 20 ETF Global X FTSE Egypt 30 ETF Global X FTSE Peru 20 ETF Global X FTSE Philippines 30 Global X Norway ETF Global X Pakistan ETF Global X Poland ETF Global X United Arab Emirates ETF Grail Advisors Grail American Beacon International Equity ETF Grail McDonnell Core Taxable Bond ETF Grail McDonnell Intermediate Municipal Bond ETF RP Short Duration Bond ETF IndexIQ IndexIQ Best Corporate Governance All Cap IndexIQ Best Corporate Governance Large Cap IndexIQ Best Operating Companies All Cap IndexIQ Best Operating Companies Large Cap IndexIQ Competitive Momentum Leaders All Cap IndexIQ Competitive Momentum Leaders Large Cap IndexIQ Customer Loyalty Leaders All Cap IndexIQ Customer Loyalty Leaders Large Cap IndexIQ Fastest Growing Companies All Cap IndexIQ Fastest Growing Large Cap Companies IndexIQ Most Elite Workforces All Cap IndexIQ Most Elite Workforces Large Cap IndexIQ Most Innovative Companies All Cap IndexIQ Most Innovative Companies Small Cap IndexIQ Most Powerful Companies IndexIQ Most Powerful Companies Large Cap IndexIQ Most Productive Companies All Cap IndexIQ Most Productive Companies Large Cap IndexIQ Most Sustainable Companies All Cap IndexIQ Most Sustainable Companies Large Cap IQ ARB Global Infrastructure ETF IQ ARB Global Real Estate ETF IQ ARB Merger Arbitrage ETF IQ Hedge Absolute Return Tracker ETF IQ Hedge Asset Weight Multi-Strategy Tracker ETF IQ Hedge Convertible Arbitrage Tracker ETF IQ Hedge Dedicated Short Bias Tracker ETF IQ Hedge Distressed Tracker ETF IQ Hedge Equal Weight Multi-Strategy Tracker ETF IQ Hedge Event-Driven IQ Hedge Inverse Multi-Strategy Tracker ETF IQ Hedge Long/Short Equity IQ Hedge Managed Futures Tracker ETF IQ Hedge Market Directional Tracker ETF IQ Hedge Market Neutral IQ Hedge Relative Value Tracker ETF

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Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE iShares iShares 10+ Year Credit Bond Fund iShares 10+ Year Government/Credit Bond Fund iShares 2012 S&P AMT-Free Municipal Series Index Fund iShares 2013 S&P AMT-Free Municipal Series Index Fund iShares 2014 S&P AMT-Free Municipal Series Index Fund iShares 2015 S&P AMT-Free Municipal Series Index Fund iShares 2016 S&P AMT-Free Municipal Series Index Fund iShares 2017 S&P AMT-Free Municipal Series Index Fund iShares MSCI ACWI ex US Consumer Discretionary Index Fund iShares MSCI ACWI ex US Consumer Staples Index Fund iShares MSCI ACWI ex US Energy Index Fund iShares MSCI ACWI ex US Financials Index Fund iShares MSCI ACWI ex US Health Care Index Fund iShares MSCI ACWI ex US Industrials Index Fund iShares MSCI ACWI ex US Information Technology Index Fund iShares MSCI ACWI ex US Materials Index Fund iShares MSCI ACWI ex US Telecom Services Index Fund iShares MSCI ACWI ex US Utilities Index Fund iShares MSCI Emerging Markets Eastern Europe iShares MSCI Israel iShares S&P Global Listed Private Equity iShares S&P India Nifty 50 Index Macro Securities Depositor MacroShares Medical Inflation Trust Up MacroShares Medical Inflation Trust Down Next Investments S&P 500 SPDR ETF Old Mutual Global Shares Old Mutual FTSE All-Cap Asia Pacific ex Japan Fund Old Mutual FTSE All-World Fund Old Mutual FTSE All-World ex US Fund Old Mutual FTSE Developed Markets ex US Fund Old Mutual FTSE Emerging Markets Fund OOK Advisors Texas Exchange-Traded Fund Pax World Funds ESG Shares FTSE Environmental Technologies Index Fund ESG Shares FTSE KLD Europe Asia Pacific Sustainability Index Fund ESG Shares FTSE KLD North America Sustainability Index Fund PIMCO PIMCO 0-1 Year U.S. Treasury Index Fund PIMCO 3-7 Year U.S. Treasury Index Fund PIMCO 15+ Year U.S. Treasury Index Fund PIMCO 20+ Year Zero Coupon U.S. Treasury Index Fund PIMCO Enhanced Short Maturity Strategy Fund PIMCO Government Limited Maturity Strategy Fund PIMCO Intermediate-Term Municipal Bond Strategy Fund PIMCO Prime Limited Maturity Strategy Fund PIMCO Short-Term Municipal Bond Strategy Fund PowerShares PowerShares 1-5 Laddered Treasury PowerShares 1-10 Laddered Treasury PowerShares 1-20 Laddered Treasury PowerShares Aggregate Bond PowerShares Aggregate Preferred PowerShares Alt-A Non-Agency RMBS Opportunity Fund PowerShares Build America Bond Portfolio PowerShares Cohen & Steers Global Realty Majors PowerShares Developed Markets Infrastructure PowerShares DJIA BuyWrite PowerShares Dynamic Internet Software & Services PowerShares Dynamic QSG Australia PowerShares Dynamic QSG Canada PowerShares Dynamic QSG Developed International Growth

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Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE PowerShares (continued) PowerShares Dynamic QSG Developed International Value PowerShares Dynamic QSG France PowerShares Dynamic QSG Germany PowerShares Dynamic QSG Japan PowerShares Dynamic QSG UK PowerShares FTSE RAFI Australia PowerShares FTSE RAFI Brazil PowerShares FTSE RAFI Canada PowerShares FTSE RAFI China PowerShares FTSE RAFI France PowerShares FTSE RAFI Germany PowerShares FTSE RAFI Hong Kong PowerShares FTSE RAFI Latin America PowerShares FTSE RAFI Mexico PowerShares FTSE RAFI South Africa PowerShares FTSE RAFI South Korea PowerShares FTSE RAFI Taiwan PowerShares FTSE RAFI United Kingdom PowerShares Investment Grade Corporate Bond PowerShares Ireland PowerShares National Municipal Bond PowerShares Prime Non-Agency RMBS Opportunity Fund PowerShares Zacks Rank Large Cap ProShares ProShares Barron's 400 ProShares CDX North America High Yield ProShares CDX North America Investment Grade ProShares Mega 7-10 Year Treasury ProShares Mega 20+ Year Treasury ProShares Mega Dow30 ProShares Mega MidCap400 ProShares Mega MSCI EAFE ProShares Mega MSCI Emerging Markets ProShares Mega QQQ ProShares Mega Russell2000 ProShares Mega S&P500 ProShares MegaShort 7-10 Year Treasury ProShares MegaShort 20+ Year Treasury ProShares MegaShort Dow30 ProShares MegaShort MidCap400 ProShares MegaShort MSCI EAFE ProShares MegaShort MSCI Emerging Markets ProShares MegaShort QQQ ProShares MegaShort Russell2000 ProShares MegaShort S&P500 ProShares Short Basic Materials ProShares Short Biotechnology ProShares Short CDX North America High Yield ProShares Short CDX North America Investment Grade ProShares Short Consumer Goods ProShares Short Consumer Services ProShares Short Dow Jones Select Biotechnology ProShares Short Dow Jones Select Telecommunications ProShares Short FTSE Xinhua China 25 ProShares Short Health Care ProShares Short iBoxx $ Liquid High Yield ProShares Short iBoxx $ Liquid Investment Grade ProShares Short Industrials ProShares Short MSCI Japan ProShares Short NASDAQ Biotechnology ProShares Short NASDAQ Biotechnology Equal-Weighted

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Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE ProShares (continued…) ProShares Short NASDAQ Clean Edge US Liquid Series ProShares Short NASDAQ Composite ProShares Short NASDAQ-100 Equal Weighted ProShares Short Precious Metals ProShares Short Real Estate ProShares Short S&P MidCap 400/Citigroup Growth ProShares Short S&P MidCap 400/Citigroup Value ProShares Short S&P SmallCap 600/Citigroup Growth ProShares Short S&P SmallCap 600/Citigroup Value ProShares Short S&P500/Citigroup Growth ProShares Short S&P500/Citigroup Value ProShares Short Semiconductors ProShares Short Technology ProShares Short Telecommunications ProShares Short Utilities ProShares Ultra 7-10 Year Treasury ProShares Ultra 20+ Year Treasury ProShares Ultra Biotechnology ProShares Ultra CDX North America High Yield ProShares Ultra CDX North America Investment Grade ProShares Ultra DJ Wilshire Total Market ProShares Ultra Dow Jones Select Biotechnology ProShares Ultra Dow Jones Select Telecommunications ProShares Ultra NASDAQ Biotechnology ProShares Ultra NASDAQ Biotechnology Equal-Weighted ProShares Ultra NASDAQ Clean Edge US Liquid Series ProShares Ultra NASDAQ Composite ProShares Ultra NASDAQ-100 Equal Weighted ProShares Ultra Precious Metals ProShares Ultra S&P MidCap 400 Citigroup Value ProShares Ultra S&P MidCap 400/Citigroup Growth ProShares Ultra S&P SmallCap 600/Citigroup Growth ProShares Ultra S&P SmallCap 600/Citigroup Value ProShares Ultra S&P500/Citigroup Growth ProShares Ultra S&P500/Citigroup Value ProShares UltraShort Biotechnology ProShares UltraShort CDX North America High Yield ProShares UltraShort CDX North America Investment Grade ProShares UltraShort DJ Wilshire Total Market ProShares UltraShort Dow Jones Select Biotechnology ProShares UltraShort Dow Jones Select Telecommunications ProShares UltraShort iBoxx $ Liquid High Yield ProShares UltraShort iBoxx $ Liquid Investment Grade ProShares UltraShort MSCI Australia ProShares UltraShort MSCI BRIC ProShares UltraShort MSCI Latin America ProShares UltraShort MSCI South Korea ProShares UltraShort MSCI Taiwan ProShares UltraShort NASDAQ Biotechnology ProShares UltraShort NASDAQ Biotechnology Equal-Weighted ProShares UltraShort NASDAQ Clean Edge US Liquid Series ProShares UltraShort NASDAQ Composite ProShares UltraShort NASDAQ-100 Equal Weighted ProShares UltraShort Precious Metals ProShares UltraShort S&P Europe 350 ProShares UltraShort S&P MidCap 400/Citigroup Growth ProShares UltraShort S&P MidCap 400/Citigroup Value ProShares UltraShort S&P SmallCap 600/Citigroup Growth ProShares UltraShort S&P SmallCap 600/Citigroup Value ProShares UltraShort S&P500/Citigroup Growth ProShares UltraShort S&P500/Citigroup Value

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Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE RevenueShares RevenueShares Consumer Discretionary RevenueShares Consumer Staples RevenueShares Energy RevenueShares Health Care RevenueShares Industrial RevenueShares Materials RevenueShares Utilities RevenueShares Information Technology Sector Fund Rydex Rydex Dynamic Consumer Discretionary Rydex Dynamic Consumer Staples Rydex Dynamic Industrials Rydex Dynamic Inverse Consumer Discretionary Rydex Dynamic Inverse Consumer Staples Rydex Dynamic Inverse Industrials Rydex Dynamic Inverse Materials Rydex Dynamic Inverse NASDAQ 100 Rydex Dynamic Inverse NASDAQ Biotech Rydex Dynamic Inverse Russell 1000 Rydex Dynamic Inverse Russell 1000 Growth Rydex Dynamic Inverse Russell 1000 Value Rydex Dynamic Inverse Russell 2000 Growth Rydex Dynamic Inverse Russell 2000 Value Rydex Dynamic Inverse Russell 3000 Rydex Dynamic Inverse Russell 3000 Growth Rydex Dynamic Inverse Russell 3000 Value Rydex Dynamic Inverse Russell MidCap Rydex Dynamic Inverse Russell MidCap Growth Rydex Dynamic Inverse Russell MidCap Value Rydex Dynamic Inverse S&P 500 Growth Rydex Dynamic Inverse S&P 500 Value Rydex Dynamic Inverse S&P MidCap 400 Growth Rydex Dynamic Inverse S&P MidCap 400 Value Rydex Dynamic Inverse S&P SmallCap 600 Rydex Dynamic Inverse S&P SmallCap 600 Growth Rydex Dynamic Inverse S&P SmallCap 600 Value Rydex Dynamic Inverse Utilities Rydex Dynamic Materials Rydex Dynamic NASDAQ 100 Rydex Dynamic NASDAQ Biotech Rydex Dynamic Russell 1000 Rydex Dynamic Russell 1000 Growth Rydex Dynamic Russell 1000 Value Rydex Dynamic Russell 2000 Growth Rydex Dynamic Russell 2000 Value Rydex Dynamic Russell 3000 Rydex Dynamic Russell 3000 Growth Rydex Dynamic Russell 3000 Value Rydex Dynamic Russell MidCap Rydex Dynamic Russell MidCap Growth Rydex Dynamic Russell MidCap Value Rydex Dynamic S&P 500 Growth Rydex Dynamic S&P 500 Value Rydex Dynamic S&P MidCap 400 Growth Rydex Dynamic S&P MidCap 400 Value Rydex Dynamic S&P SmallCap 600 Rydex Dynamic S&P SmallCap 600 Growth Rydex Dynamic S&P SmallCap 600 Value Rydex Dynamic Utilities Rydex Inverse Consumer Discretionary

continued…

Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE Rydex (continued) Rydex Inverse Consumer Staples Rydex Inverse Energy Rydex Inverse Financials Rydex Inverse Health Care Rydex Inverse Industrials Rydex Inverse Materials Rydex Inverse NASDAQ 100 Rydex Inverse NASDAQ Biotech Rydex Inverse Russell 1000 Rydex Inverse Russell 1000 Growth Rydex Inverse Russell 1000 Value Rydex Inverse Russell 2000 Rydex Inverse Russell 2000 Growth Rydex Inverse Russell 2000 Value Rydex Inverse Russell 3000 Rydex Inverse Russell 3000 Growth Rydex Inverse Russell 3000 Value Rydex Inverse Russell MidCap Rydex Inverse Russell MidCap Growth Rydex Inverse Russell MidCap Value Rydex Inverse S&P 500 Rydex Inverse S&P 500 Growth Rydex Inverse S&P 500 Value Rydex Inverse S&P MidCap 400 Rydex Inverse S&P MidCap 400 Growth Rydex Inverse S&P MidCap 400 Value Rydex Inverse S&P SmallCap 600 Rydex Inverse S&P SmallCap 600 Growth Rydex Inverse S&P SmallCap 600 Value Rydex Inverse Technology Rydex Inverse Utilities ShariahShares ShariahShares FTSE Developed ex-U.S. Fund ShariahShares FTSE USA Fund SPA ETF International SPA MarketGrader Energy Sector SPA MarketGrader Industrials Sector SPA MarketGrader Materials Sector SPA MarketGrader Consumer Discretionary Sector SPA MarketGrader Consumer Staples Sector SPA MarketGrader Financials Sector SPA MarketGrader Technology Sector State Street Global Advisors SPDR Aerospace & Defense SPDR Barclays Global TIPS SPDR Building & Construction SPDR Computer Hardware SPDR Computer Software SPDR Health Care Equipment SPDR Health Care Services SPDR LeisureTime SPDR Outsourcing & IT Consulting SPDR S&P Asia Pacific SPDR S&P EPAC SPDR S&P Europe SPDR Telecom SPDR Transportation SPDR Barclays Capital Long Term Corporate Bond SPDR Barclays Capital Short Term Corporate Bond SPDR S&P Emerging Markets South East Asia ETF SPDR S&P Emerging GCC-Middle East ETF SPDR S&P Emerging Africa ETF

continued…



Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE State Street Global Advisors (continued) SPDR Ireland ETF SPDR S&P Commercial Paper ETF SPDR S&P Brazil ETF SPDR S&P Russia ETF SPDR S&P India ETF SPDR S&P Food & Beverage ETF TXF Funds TXF Large Companies ETF Van Eck Associates Corp Market Vectors China A-Shares ETF Market Vectors Egypt Index ETF Market Vectors India Small-Cap ETF Market Vectors Junior Gold Miners ETF Market Vectors Kuwait Index ETF Market Vectors Lehman Brothers AMT-Free California Long Muni Market Vectors Lehman Brothers AMT-Free Massachusetts Muni Market Vectors Lehman Brothers AMT-Free New Jersey Muni Market Vectors Lehman Brothers AMT-Free New York Long Muni Market Vectors Lehman Brothers AMT-Free Ohio Muni Market Vectors Lehman Brothers AMT-Free Pennsylvania Muni Market Vectors-Emerging Europe Market Vectors-Global Frontier Market Vectors-Municipal Index ETF Vanguard Vanguard IT Corporate Bond Index Vanguard IT Government Bond Index Vanguard LT Corporate Bond Index Vanguard LT Government Bond Index Vanguard Mortgage-Backed Securities Index Vanguard ST Corporate Bond Index Vanguard ST Government Bond Index Vanguard TIPS ETF WisdomTree Investments WisdomTree Asia Emerging Markets High-Yielding Equity WisdomTree Asia Emerging Markets Total Dividend WisdomTree Australia Total Dividend WisdomTree Canada Total Dividend WisdomTree CEF Fixed Income Fund WisdomTree China Total Dividend WisdomTree Communications Sector WisdomTree DEFA Hedged Fund WisdomTree Developing Markets WisdomTree DIPR (SM) WisdomTree DIPR High-Yielding Equity WisdomTree Dreyfus Australian Dollar Fund WisdomTree Dreyfus BRIC Currency Fund WisdomTree Dreyfus British Pound Sterling Fund WisdomTree Dreyfus Canadian Dollar Fund WisdomTree Dreyfus Chilean Peso Fund WisdomTree Dreyfus Czech Koruna Fund WisdomTree Dreyfus Developed Currency Fund WisdomTree Dreyfus Emerging Asia Currency Fund WisdomTree Dreyfus Emerging Europe Currency Fund WisdomTree Dreyfus Emerging Latin America Currency Fund WisdomTree Dreyfus Gulf Currency Fund WisdomTree Dreyfus Hong Kong Dollar Fund WisdomTree Dreyfus Hungarian Forint Fund WisdomTree Dreyfus Icelandic Krona Fund WisdomTree Dreyfus Indonesian Rupiah Fund WisdomTree Dreyfus Israeli Shekel Fund WisdomTree Dreyfus Malaysian Ringgit Fund WisdomTree Dreyfus Mexican Peso Fund

continued…

Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE WisdomTree Investments (continued) WisdomTree Dreyfus Norwegian Krone WisdomTree Dreyfus Oil Exporters Currency Fund WisdomTree Dreyfus Polish Zloty Fund WisdomTree Dreyfus Russian Ruble Fund WisdomTree Dreyfus Singapore Dollar Fund WisdomTree Dreyfus South Korean Won Fund WisdomTree Dreyfus Swedish Krona WisdomTree Dreyfus Swiss Franc Fund WisdomTree Dreyfus Taiwan Dollar Fund WisdomTree Dreyfus Thai Baht Fund WisdomTree Dreyfus Turkish Lira Fund WisdomTree Emerging Markets Dividend Top 100 WisdomTree Emerging Markets Hedged Fund WisdomTree Emerging Markets Total Dividend WisdomTree Financial Sector WisdomTree France Total Dividend WisdomTree Germany Total Dividend WisdomTree Global Dividend WisdomTree Global Equity Income WisdomTree Global SmallCap Dividend Fund WisdomTree Hong Kong Total Dividend WisdomTree India Total Dividend WisdomTree International LargeCap Growth Fund WisdomTree Israel Total Dividend WisdomTree Latin America Total Dividend WisdomTree Long-Short Equity Fund WisdomTree Malaysia Total Dividend WisdomTree Managed Futures Fund WisdomTree Real Return Fund WisdomTree REIT Sector WisdomTree Singapore Total Dividend WisdomTree South Africa Total Dividend WisdomTree South Korea Total Dividend WisdomTree Taiwan Total Dividend WisdomTree U.S. Cash Fund WisdomTree U.S. Government Cash Fund WisdomTree United Kingdom High-Yielding Equity WisdomTree United Kingdom Total Dividend WisdomTree Utilities Sector XShares Advisors Fortress Large Cap Enhanced BuyWrite Haverford Quality 250 StateShares California 50 StateShares Colorado 50 StateShares Composite StateShares Connecticut 50 StateShares Florida 50 StateShares Georgia 50 StateShares Illinois 50 StateShares Indiana 50 StateShares Maryland 50 StateShares Massachusetts 50 StateShares Michigan 50 StateShares Minnesota 50 StateShares Missouri 50 StateShares New Jersey 50 StateShares New York 50 StateShares North Carolina 50 StateShares Ohio 50 StateShares Pennsylvania 50 StateShares Tennessee 50

continued…



Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE XShares Advisors (continued) StateShares Texas 50 StateShares Virginia 50 StateShares Washington 50 Wilder Asian Emerging Markets Wilder Brazil Wilder China Wilder Diversified Healthcare Wilder Healthy Lifestyle Wilder Israel Wilder Latin America Wilder Worldwide Emerging Markets XShares Elliott Wave XShares/CRB-Research Global Energy Efficiency REST OF THE WORLD Canada Claymore Canadian Balanced CorePortfolio ETF Claymore Global Alternative Energy/Eco ETF Claymore Advantaged Canadian Bond ETF Claymore Advantaged High Yield Bond ETF BMO Global Infrastructure ETF Horizons AlphaPro Gartman ETF S&P/TSX 60 Shariah Index ETF Horizons AlphaPro Fiera Tactical Bond Fund ASIA EX-JAPAN Australia Diversified Bond ETF ASX Real Estate Investment Trust ETF China China Asset Management: ABF China Shenzhen 180 Nasdaq-100 Index ETF Shanghai Stock Exchange Mega-cap Index ETF Yinhua Shanghai and Shenzhen 300 Index Fund Hong Kong CSI 100 Index India Benchmark Automobiles Benchmark Cement Benchmark Electrical Equipment Benchmark Infotech Benchmark Pharmaceuticals Benchmark Power Benchmark Services Benchmark Steel Benchmark Telecommunications CNX mid-cap Index Benchmark Fixed Income ETF Benchmark Hang Seng Index ETF UTI-SSgA Global Navigator Tata CNX Banking Reliance MSCI India Exchange Traded Fund Malaysia Islamic ETF Philippines GSIS ETF Singapore FTSE Shariah Japan 100 United FTSE Xinhua China A50 ETF South Korea KOSPI Mid-Cap ETF Shariah Korea ETF Russia ETF India ETF

continued…

Figure 101 (continued…): Planned new ETFs TICKER LAUNCH ETF NAME (BB) DATE South Korea (continued) Leveraged ETF Inverse ETF Commodity ETF Taiwan Global Semi33 Index ISOCG (ISO Corporate Governance) Polaris Taiwan Islam ETF Polaris TSEC Taiwan non-finance, non-electrical ETF

LATIN AMERICA Mexico IBMTRAC-ISHRS

MIDDLE EAST AND AFRICA Egypt CASE 30 Index ETF Israel CECE Index NSE S&P CNX Nifty 50 Russell 2000 Japanese Yen ETF British Pound Sterling ETF South Africa NewWORLD ETF S&P500 ETF FTSE Xinhua China 25 ETF FTSE UK Dividend+ ETF Itrix Japan ETF Itrix North America ETF Itrix Global ETF PropTrax ETF Satrix FTSE/JSE Rafi 40 Dow Jones Industrial Average Russell 1000 DJ Eurostoxx 50 FTSE 250 TOPIX SA Government Bonds Indweza (SA Money Market) United Arab Emirates Al Mal UAE Falcon NBAD Middle East ETF Source: Various ETF Providers, Exchanges, ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



Figure 102: Planned new ETPs TICKER LAUNCH ETP NAME (BB) DATE EUROPE ETF Securities ETFS Forward Aluminium ETFS Forward Coffee ETFS Forward Copper ETFS Forward Corn ETFS Forward Cotton ETFS Forward Crude Oil ETFS Forward Gasoline ETFS Forward Gold ETFS Forward Nickel ETFS Forward Silver ETFS Forward Soybean Oil ETFS Forward Soybeans ETFS Forward Sugar ETFS Forward Wheat ETFS Forward Zinc UNITED STATES Barclays (iPath) iPath DJ-UBS Ex-Energy Total Return Sub-Index ETN iPath DJ-UBS Petroleum Total Return Sub-Index ETN iPath DJ-UBS Softs Total Return Sub-Index ETN Deutsche Bank ELEMENTS DB China Currency ELEMENTS DB BRIC Currencies ETF Securities ETFS Palladium Shares ETFS Platinum Shares iShares iShares Carbon Emissions ProShares ProShares Short Australian Dollar ProShares Short British Pound ProShares Short Canadian Dollar ProShares Short Crude Oil ProShares Short Dow Jones - AIG Agriculture ProShares Short Dow Jones - AIG Commodity ProShares Short Dow Jones - AIG Industrial Metals ProShares Short Dow Jones - AIG Precious Metals ProShares Short Euro ProShares Short Gold ProShares Short Japanese Yen ProShares Short Mexican Peso ProShares Short Natural Gas ProShares Short Silver ProShares Short Swedish Krona ProShares Short Swiss Franc ProShares Ultra Australian Dollar ProShares Ultra British Pound ProShares Ultra Canadian Dollar ProShares Ultra Crude Oil ProShares Ultra Dow Jones - AIG Agriculture ProShares Ultra Dow Jones - AIG Industrial Metals ProShares Ultra Dow Jones - AIG Precious Metals ProShares Ultra Mexican Peso ProShares Ultra Natural Gas ProShares Ultra Swedish Krona ProShares Ultra Swiss Franc ProShares UltraShort Australian Dollar ProShares UltraShort British Pound ProShares UltraShort Canadian Dollar ProShares UltraShort Crude Oil

continued…

Figure 102 (continued…): Planned new ETPs TICKER LAUNCH ETP NAME (BB) DATE ProShares (continued…) ProShares UltraShort Dow Jones - AIG Agriculture ProShares UltraShort Dow Jones - AIG Industrial Metals ProShares UltraShort Dow Jones - AIG Precious Metals ProShares UltraShort Mexican Peso ProShares UltraShort Natural Gas ProShares UltraShort Swedish Krona ProShares UltraShort Swiss Franc Rydex CurrencyShares Hong Kong Dollar Trust CurrencyShares Singapore Dollar Trust CurrencyShares South African Rand Trust Rydex 2X GSCI Agricultural Fund Rydex 2X GSCI Commodities Fund Rydex 2X GSCI Energy Fund Rydex 2X GSCI Industrial Metals Fund Rydex 2X GSCI Precious Metals Fund Rydex Inverse 2X GSCI Agricultural Fund Rydex Inverse 2X GSCI Commodities Fund Rydex Inverse 2X GSCI Energy Fund Rydex Inverse 2X GSCI Industrial Metals Fund Rydex Inverse 2X GSCI Precious Metals Fund United States Commodity Funds United States 12 Month Natural Gas Fund LP INDIA Birla Gold Fund Tata Gold Fund OptiMix Gold Fund ICICI Prudential Gold Exchange Traded Fund

JAPAN Gold ETC Silver ETC Crude Oil ETC SOUTH AFRICA Absa Platinum-linked ETF UNITED ARAB EMIRATES Dubai Silver Shares Source: Various ETP Providers, Exchanges, ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.



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AMERICAS

Mexico (as of January 2010)Impulsora y PromotoraBlackRock Mexico, S.A. de C.V.Paseo de la Reforma #505, piso 30Colonia CuauhtemocMexico Distrito Federal, 06500, MexicoMain Switchboard: +5255.5241.3268Main Fax: +5255.5241.3200

MontréalGestion d’actifs BlackRock Canada Limitée1000 Sherbrooke Street West (Ouest),Montréal, Quebec H3A 34G, CanadaMain Switchboard: +1.514.843.9595Main Fax: +1.514.843.1082

New York (as of 11 December 2009)BlackRock Institutional Trust Company, N.A.40 East 52nd Street,New York, NY 10022Main Switchboard: +1.212.548.4350Main Fax: +1.212.548.4371

San Francisco (as of 11 December 2009)BlackRock Institutional Trust Company, N.A.400 Howard StreetP.O. Box 7101 San Francisco, CA 94105, USAMain Switchboard: +1.415.597.2000Main Fax: +1.415.597.2140

São PauloBlackRock Brasil Gestora de Investimentos LtdPraça Professor José Lannes, 40 - 5thEd. Berrini 50004571-100 São Paulo - SP – BrazilMain Switchboard: +55.11.5509.3320Main Fax: +55.11.5509.3232

TorontoGestion d’actifs BlackRock Canada LimitéeBrookfield Place, 161 Bay StreetSuite 2500, P.O. Box 614Toronto, ON M5J 2S1, CanadaMain Switchboard: +1.416.643.4000Main Fax: +1.416.643.4001

ASIA/PACIFIC

Hong KongBlackRock Asset Management North Asia LimitedSuite 2503-5, 25th floorOne International Finance Centre1 Harbour View Street Central, Hong KongMain Switchboard: +852.2295.5288Main Fax: +852.2295.0055

SingaporeBlackRock Asset Management Southeast Asia Limited23 Church Street#13-04 Capital Square Singapore 049481Main Switchboard: +65.6395.3322Main Fax: +65.6395.3321

SydneyBlackRock Asset Management Australia LimitedLevel 43, Grosvenor Place225 George Street, SydneyNSW 2000 AustraliaMain Switchboard: +61.2.9272.2200Main Fax: +61.2.9272.2566

TokyoBlackRock Asset Management Japan LimitedMarunouchi Trust Tower Main1-8-3 Marunouchi, Chiyoda-kuTokyo 100-8217 JapanMain Switchboard: +81.3.6703.4100Main Fax: +81.3.6703.4200

EMEA

AmsterdamBlackRock Advisors (UK) Limited – Dutch BranchWTC - Tower D, 6th floorStrawinskylaan 6671077 XX Amsterdam, NetherlandsMain Switchboard: +31.20.798.0060Main Fax: +31.20.798.0079

DubaiBlackRock Advisors (UK) Limited - Dubai BranchDubai International Financial CentreGate Village Building No. 10Level 3, Office 7The Gate VillagePO Box 506661Dubai, UAEMain Switchboard: +971.4.365.2986Main Fax: +971.4.365.2998

LondonBlackRock Advisors (UK) LimitedMurray HouseOne Royal Mint CourtLondon EC3N 4HH, EnglandMain Switchboard: +44.20.7668.8000Main Fax: +44.20.7668.8001

MunichBlackRock Asset Management Deutschland AGMax-Joseph-Str. 6D-80333 MünchenGermanyMain Switchboard: +49.89.42729.5899Main Fax: +49.89.42729.5999

ParisBlackRock Advisors (UK) Limited - French BranchImmeuble Washington Plaza – Bâtiment Artois44 rue Washington75008 Paris, FranceMain Switchboard: +33.1.56.43.29.00Main Fax: +33.1.56.43.29.99

Zurich (as of 18 December 2009)BlackRock Asset Management Schweiz AGClaridenstrasse 25,P.O. Box 21188022 Zürich, SwitzerlandMain Switchboard: +41.44.297.73.73Main Fax: +41.44.297.73.74

This publication was produced by the ETF Research and Implementation Strategy Team at BlackRock.

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FOR PROFESSIONAL INVESTORS. NOT FOR US ......• tracking fund and 175 bps for the average active...

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Transcript of FOR PROFESSIONAL INVESTORS. NOT FOR US ......• tracking fund and 175 bps for the average active...