iShares

ETF Dividend Investing Strategy

Between 1988 and 2009, reinvested dividends accounted for 40% of S&P 500 index total return.* For many equity investors, ETF dividends (when not reinvested) can be an important source of portfolio income. Investors should be aware that a company's dividend may fluctuate over time, and it may choose not to pay one at all for a period of time. Many individuals who rely on dividends as a source of cash flow as part of their investing strategy can invest in preferred stock ETFs, which, in contrast to common stock, seeks to provide regular dividend payments regardless of market or company performance. ETFs that focus on either high-dividend-paying companies or preferred stocks provide investors an investing strategy with the potential for dividend income with the added benefit of diversification.

*Source: Bloomberg, based on oldest data available (1988); as of 12/31/09. Past performance is no guarantee of future results.
Related Funds
DVY
iShares Dow Jones Select Dividend Index Fund
HDV
iShares High Dividend Equity Fund
IDV
iShares Dow Jones International Select Dividend Index Fund
PFF
iShares S&P U.S. Preferred Stock Index Fund

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. Diversification may not protect against market risk.

In addition to the normal risks associated with investing, narrowly focused investments typically exhibit higher volatility. Preferred stocks are not necessarily correlated with securities markets generally. Rising interest rates may cause the value of the Fund’s investments to decline significantly. Payment of dividends is not guaranteed. Removal of stocks from the index due to maturity, redemption, call features or conversion may cause a decrease in the yield of the index and the Fund.

There is no guarantee that dividends will be paid.

Investment comparisons are for illustrative purposes only and are not meant to be all-inclusive. To better understand the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is important to read the products' prospectuses.

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.

The iShares Funds ("Funds") are distributed by SEI Investments Distribution Co. ("SEI"). BlackRock Fund Advisors ("BFA") serves as the investment advisor to the Funds. BFA is a subsidiary of BlackRock Institutional Trust Company, N.A., neither of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Dow Jones & Company, Inc. or Standard & Poor's. Neither of these companies make any representation regarding the advisability of investing in the Funds. Neither SEI, nor BlackRock Institutional Trust Company, N.A., nor any of their affiliates, are affiliated with the companies listed above.

© 2000-2012 BlackRock Institutional Trust Company, N.A. All rights reserved. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. BlackRock® is a registered trademark of BlackRock, Inc. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

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