iShares
POTENTIAL USE
Seek higher yield
EXPOSURE
High yield corporate bonds
FUND NAME
iShares iBoxx $ High Yield Corporate Bond Fund

Yield as of 5/22/2013

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Description %
30-Day SEC Yield 30-Day SEC Yield

A standard yield calculation developed by the Securities and Exchange Commission that allows for fairer comparisons among bond funds. It is based on the most recent 30-day period. This yield figure reflects the interest earned during the period after deducting the fund's expenses for the period.

For funds holding To-Be-Announced (TBA) contracts, the 30 day SEC yield includes income earned on cash holdings and direct holdings of mortgage pools, net of fund expenses . Certain funds obtain a significant amount of its mortgage market exposure through TBA transactions. Those Funds invest cash pending settlement of any TBA transactions in high-quality, liquid short-term instruments. TBA contracts provide the fund with economic exposure to the mortgage market. The income that they generate is paid out in fund distributions but is not included in the SEC yield calculation. As a result, for funds holding TBA contracts, the SEC yield will generally be below the stated fund distribution yield.

4.35%
Average Yield to Maturity Average Yield to Maturity

Yield to Maturity (YTM) is the discount rate that equates the present value of a bond's cash flows with its market price (including accrued interest). The Fund Average YTM is the weighted average of the fund's individual bond holding YTMs based upon Net Asset Value ('NAV'). The measure does not include fees and expenses.

 		4.86%
Distribution Yield Distribution Yield

The annual yield an investor would receive if the most recent fund distribution stayed the same going forward. The yield represents a single distribution from the fund and does not represent the total return of the fund. The yield is calculated by annualizing the most recent distribution and dividing by the fund NAV from the as-of date.

 		5.99%
12-Month Yield 12-Month Yield

The yield an investor would have received if they had held the fund over the last twelve months assuming the most recent NAV. The 12-Month yield is calculated by summing any income distributions over the past twelve months and dividing by the sum of the most recent NAV and any capital gain distributions made over the past twelve months.
as of 5/22/2013 		6.32%

Fundamentals as of 5/23/2013

Description Value
Weighted Average Maturity Weighted Average Maturity

The mean of the remaining term to maturity of the underlying bonds in a portfolio.

 		4.20 yr
Weighted Average Coupon Weighted Average Coupon

The mean of the coupon rate of the underlying bonds in a portfolio.

 		7.43%
Effective Duration Effective Duration

A measure of the potential responsiveness of a bond or portfolio price to small parallel shifts in interest rates. Effective Duration takes into account the possible changes in expected bond cash flows due to small parallel shifts in interest rates.

 		3.90
Standard Deviation (3 year) Standard Deviation

The Standard Deviation is the statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution. It is widely applied in modern portfolio theory, where the past performance of securities is used to determine the range of possible future performance, and a probability is attached to each performance.
as of 4/30/2013 		8.01%

Avg. Annualized Total Returns (NAV) qtr. as of 3/31/2013

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  1 Year 3 Years 5 Years 10 Years Since Inception
HYG 11.35% 10.33% 8.76% -- 6.89%
Index Index

Markit iBoxx USD Liquid High Yield Index

 		11.50% 10.52% 9.50% -- 7.34%

Sector Breakdown as of 5/22/2013*

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Sector % of Fund Sector % of Fund  
 
Consumer S...
16.07%
 
Basic Mate...
6.90%
 
Oil & Gas
13.51%
 
Technology
6.22%
 
Financials
12.03%
 
Consumer G...
6.03%
 
Telecommun...
11.32%
 
Utilities
5.78%
 
Industrials
11.14%
 
Other/Unde...
1.94%
 
Health Care
9.06%
 

Maturity as of 5/22/2013

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Time to Maturity % of Fund
0-1 Years0.08%
1-5 Years25.46%
5-10 Years69.99%
10-15 Years1.51%
15-20 Years0.00%
20-25 Years0.00%
25 Years and Over1.02%
Average4.20 years

Top Holdings as of 5/22/2013*

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Name % of Fund Coupon Maturity Moody's/S&P Rating
BLACKROCK FDS III 0.77% 0.01 Aaa /AA
SPRINT NEXTEL CORPORATION 0.54% 9.00 11/15/2018 Ba3 /BB-
HCA INC 0.46% 6.50 2/15/2020 Ba3 /BB
FIRST DATA CORP 0.46% 12.62 1/15/2021 Caa1 /B-
CIT GROUP INC 0.45% 5.50 2/15/2019 Ba3 /BB-
SPRINGLEAF FINANCE CORP 0.42% 6.90 12/15/2017 Caa1 /CCC+
REYNOLDS GROUP ISSUER LLC 0.37% 9.88 8/15/2019 Caa2 /CCC+
DISH DBS CORP 0.36% 5.88 7/15/2022 Ba3 /BB-
FIRST DATA CORPORATION 0.36% 11.25 3/31/2016 Caa2 /CCC+
REYNOLDS GROUP ISSUER LLC 0.35% 5.75 10/15/2020 B1 /B+
Total4.54% 
*Holdings are subject to change.

Profile as of 5/23/2013

Description Value
Total Net Assets$15,764,965,026

Expense Ratio as of 2/29/2012*

 0.50%

Expense Ratio as of 3/31/2013**

0.50%
Shares Outstanding166,100,000
Number of Holdings
as of 5/22/2013		 815
Fund Credit Rating - S&P** Fund Credit Rating - S&P

The purpose of the ratings is to provide investors with a simple system of gradation by which relative creditworthiness of a fund's securities may be noted. The ratings shown are provided by S&P.

 		B-f
Inception Date4/4/2007
IndexMarkit iBoxx USD Liquid High Yield Index
Index TickerIBOXHY
Net Asset Value
as of 5/23/2013		 $94.91
  • $-0.43
  • -0.45%
Price
as of 5/23/2013		 $94.89
  • $-0.26
  • -0.27%

*Expense ratio as reflected in the Fund’s prospectus as of the Fund’s fiscal year end.

**Expense ratio as of the most recent quarter end.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. This information must be accompanied by standardized returns. For standardized returns and performance data current to the most recent month end, click the "Performance" tab above.

Fees & Expenses

Expense Detail as of 2/29/2012*

%
Management Fees 0.50%
+ Acquired Fund Fees & Expenses ‡ 0.00%
= Total Annual Fund Operating Expenses 0.50%

Expense Detail as of 3/31/2013**

%

Management Fees

0.50%

+

Acquired Fund Fees & Expenses

0.00%

=

Total Expense Ratio

0.50%

*Management fee as reflected in the Fund’s prospectus as of the Fund’s fiscal year end.

**Management fee calculated on last day of most recent quarter. Management Fees were determined using the tiered fee schedule outlined in the Management section of the Fund’s prospectus and may fluctuate due to changes in asset values.

Credit Ratings as of 5/22/2013

S&P/Moody's
 S&P Moody's
AAA/Aaa 0.00% 0.92%
AA+/Aa1 0.00% 0.00%
AA/Aa2 0.77% 0.00%
AA-/Aa3 0.00% 0.00%
A+/A1 0.00% 0.00%
A/A2 0.00% 0.00%
A-/A3 0.20% 0.20%
BBB+/Baa1 0.13% 0.00%
BBB/Baa2 0.03% 0.29%
BBB-/Baa3 5.95% 1.15%
BB+/Ba1 9.85% 6.28%
BB/Ba2 12.23% 8.87%
BB-/Ba3 16.67% 21.65%
B+/B1 15.63% 21.28%
B/B2 12.27% 8.23%
B-/B3 12.08% 16.84%
CCC+/Caa1 8.01% 7.18%
CCC/Caa2 2.63% 3.86%
CCC-/Caa3 1.04% 0.41%
CC/Ca 0.41% 0.43%
C/C 0.02% 0.11%
R/-- 0.00% --
SD/-- 0.00% --
D/-- 0.11% --
Not Rated 0.72% 1.04%
Other 1.26% 1.26%

Ratings are measured on a scale that generally ranges from AAA (S&P highest) or Aaa (Moody's highest) to D (S&P lowest) or C (Moody's lowest). "R" applies to securities where the issuing company is under regulatory supervision due to its financial situation. "SD" applies to securities where the issuing company has selectively defaulted on some obligations. "Other" includes dividends booked but not yet received and, if applicable, short-term fixed income securities.

Trading Information

Identifier Type Symbol
TickerHYG
Index TickerIBOXHY
NAVHYG.NV
Underlying Trading ValueHYG.IV
Shares OutstandingHYG.SO
Estimated CashHYG.EU
Total CashHYG.TC
CUSIP464288513
Options Available

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** For more information on S&P fund credit ratings, please click here.

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.

Certain iShares funds are subject to management fee breakpoints as assets increase. The breakpoints take effect immediately after asset tier levels are reached, thus a fund's actual management fee being applied may not match the fund's web site or prospectus on a given day.

‡ “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the indirect fees and expenses incurred by investing in one or more acquired funds, such as mutual funds, business development companies, or other pooled investment vehicles. Acquired Fund Fees and Expenses are reflected in the prices of the acquired funds and thus included in the total returns of the Fund.

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

Bonds and bond funds will decrease in value as interest rates rise. High yield securities may be more volatile, be subject to greater levels of credit or default risk, and may be less liquid and more difficult to sell at an advantageous time or price to value than higher-rated securities of similar maturity.

Index returns are for illustrative purposes only and do not represent actual iShares performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-888-678-4667). The document contains information on options issued by The Options Clearing Corporation. The document discusses exchange traded options issued by The Options Clearing Corporation and is intended for educational purposes. No statement in the document should be construed as a recommendation to buy or sell a security or to provide investment advice.

If you need further information, please feel free to call the Options Industry Council Helpline. They will be able to provide you with balanced options education and tools to assist you with your iShares options questions and trading. The Options Industry Council Helpline phone number is 1-888-Options (1-888-678-4667) and their website is www.888options.com.

The Fund is not sponsored, endorsed, issued, sold or promoted by Markit Indices Limited, nor does this company make any representation regarding the advisability of investing in the Fund. iBoxx is a registered trademark of Markit Indices Limited.

Shares of iShares Funds are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Certain sectors and markets perform exceptionally well based on current market conditions and iShares funds can benefit from that performance. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such results will be repeated.

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

© 2000-2013