iShares
Asset Class Solutions
Insights for constructing portfolios around key asset classes

Accessing targeted asset classes using iShares ETFs

Asset allocation can play a large role in determining the overall potential return of a portfolio. This section covers the benefits of different asset classes — large-cap and small-cap, emerging and developed international markets, the fixed income landscape, and important categories like alternatives — to help you carefully determine the asset class weighting that will help you strike the right balance between risk and return in your portfolios.

By investing across a variety of asset classes and across a range of geographies, sector funds, and styles, you can help reduce the impact of a poor-performing single investment in a portfolio. The broad family of iShares ETFs makes ETF diversification easy both across and within asset classes, with low-cost, efficient funds tracking established indexes in virtually every asset class.

Additionally, iShares Target Risk Index Funds and iShares Target Date Index Funds are a convenient, single transaction way to access tailored portfolios that offer cost-effective, efficient, and diversified solutions to help meet specific needs based upon your clients’ risk tolerance (from conservative to aggressive) or anticipated time-frame for needing funds (i.e. for college, retirement, etc.). Both solutions are dynamically managed by professionals who constantly monitor and rebalance to the specific asset allocation parameters.

Each iShares Target Date Index Fund has a number (a target date) at the end of the name that designates an approximate year when an investor plans to start withdrawing their money. The asset allocation of the Fund will become progressively more conservative as the specified target date approaches. An investment in the Funds is not guaranteed, and an investor may experience losses, including near, at or after the target date.

US Equity

US Equity ETFs can offer efficient, low-cost core equity exposure with transparency and trading flexibility, which can make them beneficial for both strategic and tactical uses.
Learn more about US Equity ETFs

Fixed Income

Fixed income has the potential to offset some of the volatility associated with equities, and can provide a measure of principal preservation for investors. Investors can also obtain exposure to a certain segment of the bond market in one trade, reducing the need to research, price, purchase, and manage a large number of individual bonds.
Go to the Fixed Income page

Emerging Markets

By offering access to companies—and even entire industries—that may not exist in the United States, emerging market equities can play important strategic and tactical portfolio roles. Visit our Emerging Markets page to learn how an allocation to emerging markets equities can provide ETF diversification and enhance your portfolio's risk/return profile.
Go to the Emerging Markets page

Carefully consider the iShares Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses, which may be obtained by calling 1-800-iShares (1-800-474-2737), or by viewing or downloading a prospectus. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal. Asset allocation and diversification may not protect against market risk. Investment in the Funds is subject to the risks of the underlying funds.

Each target date fund has a number (a target date) at the end of the name that designates an approximate year when an investor plans to start withdrawing their money. The asset allocation of the fund will become progressively more conservative as the specified target date approaches. An investment in the fund is not guaranteed, and an investor may experience losses, including near, at, or after the target date.

Buying and selling shares of iShares Funds will result in brokerage commissions.

In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments typically exhibit higher volatility. Bonds and bond funds will decrease in value as interest rates rise.

The iShares Funds ("Funds") are distributed by BlackRock Investments, LLC (together with its affiliates, "BlackRock").

© 2000-2013 BlackRock. All rights reserved. iSHARES® and BLACKROCK® are registered trademarks of BlackRock. All other marks are the property of their respective owners.

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