iShares S&P National Municipal Bond Fund (MUB): Overview

About This Fund:

»	Overview
	Returns
	Holdings
	Distribution History

Related Documents:
For a general audience.	Fund Fact Sheet
For a general audience.	Prospectus

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S&P National Municipal Bond Fund (MUB)

The iShares S&P National Municipal Bond Fund seeks results that correspond generally to the price and yield performance, before fees and expenses, of the municipal bond sector of the United States as defined by the S&P National Municipal Bond Index.

Fund Inception Date: 9/7/2007

View Quotes & Charts

NAV as of 7/2/2009		Price as of 7/2/2009
Net Asset Value	$99.13	Price	$99.70
Change	$0.02	Change	$-0.14
Change	0.02%	Change	-0.14%

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 "Returns" link in the left navigation.

Profile as of 7/2/2009
Total Net Assets (000)	$1,258,923		S&P
Shares Outstanding	12,700,000	Fund Rating	AA-
Management Fees	0.25%
Acquired Fund Fees & Expenses‡	0.00%
Total Annual Fund Operating Expenses	0.25%

Fundamentals	Fund as of 7/1/2009	Index as of 4/30/2009
Number of Holdings	408	8001
The mean of the remaining term to maturity of the underlying bonds in a portfolio. Weighted Average Maturity	10.57 yr	14.22 yr
The mean of the coupon rate of the underlying bonds in a portfolio. Weighted Average Coupon	5.09%	5.01%
A measure of the responsiveness of a bond or portfolio's price to changes in interest rates. Effective Duration takes into account the possible changes in expected bond cash flows due to interest rate changes. Effective Duration	7.55	8.66

Yield	Fund as of 6/30/2009	Index as of 4/30/2009
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. Distribution Yield	3.66%	N/A
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. 30-Day SEC Yield	3.57%	N/A
The average YTM is the interest rate that will make the present value of the cash flows from a bond equal to its market price plus accrued interest. The average yield to maturity considers not only the coupon income, but any capital gain or loss that the investor will realize by holding the bonds to maturity. It also considers the reinvestment of the coupons. Average Yield to Maturity	3.93%	4.05%

Tax Equivalent Yield	Fund as of 7/1/2009
Tax equivalent yield (TEY) is used by investors to compare yields on taxable and tax-exempt securities after accounting for taxes. TEY represents the yield a taxable bond would have to earn in order to match, after taxes, the yield available on a tax-exempt municipal bond. Tax Equivalent Yield (TEY) = Tax Free Municipal Bond Yield/(1 � Tax Rate) For the iShares National Municipal Bond Fund (MUB), the highest Federal individual income tax rate of 35% is assumed. For example, an investor in the 35% tax bracket would have to earn a yield of 6.2% on a taxable bond to match a 4.0 yield on a tax-exempt security. Tax Equivalent Distribution Yield	5.63%
Tax equivalent yield (TEY) is used by investors to compare yields on taxable and tax-exempt securities after accounting for taxes. TEY represents the yield a taxable bond would have to earn in order to match, after taxes, the yield available on a tax-exempt municipal bond. Tax Equivalent Yield (TEY) = Tax Free Municipal Bond Yield/(1 � Tax Rate) For the iShares National Municipal Bond Fund (MUB), the highest Federal individual income tax rate of 35% is assumed. For example, an investor in the 35% tax bracket would have to earn a yield of 6.2% on a taxable bond to match a 4.0 yield on a tax-exempt security. Tax Equivalent 30-Day SEC Yield	5.48%

Tax Equivalent Yield

Fund as of 7/1/2009

Tax equivalent yield (TEY) is used by investors to compare yields on taxable and tax-exempt securities after accounting for taxes. TEY represents the yield a taxable bond would have to earn in order to match, after taxes, the yield available on a tax-exempt municipal bond.

Tax Equivalent Yield (TEY) = Tax Free Municipal Bond Yield/(1 � Tax Rate*)

*For the iShares National Municipal Bond Fund (MUB), the highest Federal individual income tax rate of 35% is assumed.

For example, an investor in the 35% tax bracket would have to earn a yield of 6.2% on a taxable bond to match a 4.0 yield on a tax-exempt security.

Tax Equivalent Distribution Yield

5.63%

Tax Equivalent 30-Day SEC Yield

5.48%

*Top Holdings (Daily)** as of 7/1/2009 View All Holdings
% of Fund	Name	Coupon	Maturity	Ratings (Moody's/S&P)
1.36%	NC ST	5.00	3/1/2012	Aaa /AAA
1.27%	MASSACHUSETTS ST SCH BLDG AUTH DED	4.50	8/15/2035	Aa2 /AA+
1.22%	IL ST	5.00	3/1/2013	A1 /AA-
1.20%	OREGON ST	4.50	8/1/2032	Aa2 /AA
1.18%	SALT RIVER PROJ ARIZ AGRIC IMP	5.00	1/1/2038	Aa1 /AA
1.10%	REGIONAL TRANSN DIST COLO SALES TA	4.50	11/1/2034	Aa3 /AAA
1.07%	NORTH CAROLINA ST	5.00	4/1/2013	Aaa /AAA
1.01%	NEW YORK ST TWY AUTH HWY & BRD	5.00	4/1/2014	Aa3 /AAA
0.96%	NORTH TEX TWY AUTH	5.12	1/1/2028	A2 /A
0.95%	CALIFORNIA ST	6.00	4/1/2038	A2 /A

*Holdings are subject to change.

Top Sectors as of 7/1/2009

Trading Information

20.77%	Transportation
18.21%	Various Purpose
18.20%	Utility
12.84%	Tax-Revenue
7.33%	School District
5.91%	Education
5.25%	Improvement
3.05%	Building
2.45%	General Purpose
1.63%	Authority

Related Index	SPMUNUST
NAV Per Share	MUB.NV
Und. Trading Value	MUB.IV
Shares Outstanding	MUB.SO
Est. Cash	MUB.EU
Total Cash	MUB.TC
CUSIP	464288414

Quality Ratings as of 7/1/2009
	% of Fund (Moody's)	% of Fund (S&P)
U.S. Gov't/Agency	0.00	0.00
Aaa/AAA	11.98	37.08
Aa1/AA+	10.51	6.01
Aa2/AA	22.27	18.97
Aa3/AA-	25.92	15.13
A1/A+	7.29	7.64
A2/A	10.27	8.07
A3/A-	2.86	1.42
Baa1/BBB+	1.18	1.25
Baa2/BBB	0.13	1.50
Baa3/BBB-	1.55	1.03
Ba1/BB+	0.00	0.00
Ba2/BB	0.00	0.00
Ba3/BB-	0.00	0.00
B1/B+	0.00	0.00
B2/B	0.00	0.00
B3/B-	0.00	0.00
Caa1/CCC+	0.00	0.00
Caa2/CCC	0.00	0.00
Caa3/CCC-	0.00	0.00
Ca/CC	0.00	0.00
C/C	0.00	0.00
CI	-	0.00
R	-	0.00
SD	-	0.00
D	-	0.00
Other/NR	6.05	1.91
Average	Aa3	AA

Maturity as of 7/1/2009
Years	% of Fund
0-1	1.83
1-5	18.15
5-10	13.53
10-15	12.24
15-20	16.75
20-25	16.35
25 and Over	20.09
Average	10.57 yr

Top States as of 7/1/2009
Name	% of Fund
CALIFORNIA	18.26
NEW YORK	16.32
TEXAS	7.58
MASSACHUSETTS	6.66
ILLINOIS	6.12
NEW JERSEY	5.35
NORTH CAROLINA	3.81
FLORIDA	3.50
Puerto Rico	3.36
MARYLAND	2.96

Carefully consider the 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 click here to view or download a prospectus. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

‡ “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 SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as the investment advisor to the Funds. BGFA is a subsidiary of Barclays Global Investors, N.A., a majority-owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.

There is no guarantee that the Fund's income will be exempt from federal or state income taxes. Federal or state changes in income or alternative minimum tax rates or in the tax treatment of municipal bonds may make them less attractive as investments and cause them to lose value. Capital gains, if any, are subject to capital gains tax. Bonds and bond funds will decrease in value as interest rates rise.

S&P and Standard & Poor's are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Barclays Global Investors, N.A. iShares Funds are not sponsored, endorsed, issued, sold or promoted by Standard & Poor's. Nor does this company make any representation regarding the advisability of investing in iShares Funds. Index data source: Standard & Poors.

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.

©2009 Barclays Global Investors. All rights reserved. iShares® is a registered trademark of Barclays Global Investors, N.A.. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.