iShares
POTENTIAL USE
Seek to generate income
EXPOSURE
U.S. preferred stocks (which offer both stock and bond characteristics)
FUND NAME
iShares S&P U.S. Preferred Stock Index Fund

Top Holdings* as of 5/23/2013

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Name % of Fund
General Mtrs Co Jr Pfd Cnv Srb 2.74%
HSBC HOLDINGS PLC 2.49%
GMAC CAPITAL TRUST I 1.65%
BARCLAYS BANK PLC 1.57%
WELLS FARGO & CO 1.54%
Citigroup Cap XIII 7.875% TruPS 1.45%
HSBC HOLDINGS PLC 1.31%
DB CONT CAP TRUST III 1.28%
ING GROEP NV 1.20%
ARCELORMITTAL PFD 1.10%
Total16.32%

Sector Breakdown as of 5/23/2013*

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Sector % of Fund Sector % of Fund  
 
Diversifie...
35.78%
 
Telecommun...
2.07%
 
Banks
25.58%
 
Materials
1.65%
 
Real Estate
11.81%
 
Capital Go...
1.49%
 
Insurance
10.07%
 
Energy
1.42%
 
Utilities
5.09%
 
Other/Unde...
2.02%
 
Automobile...
3.03%
 

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
PFF 10.29% 8.35% 6.85% -- 3.86%
Index Index

S&P U.S. Preferred Stock Index

 		11.06% 9.18% 7.66% -- 4.22%

Yield as of 4/30/2013

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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.

5.51%
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 4/30/2013 		5.73%

Fundamentals & Risk as of 4/30/2013

Description Value
Price to Earnings Ratio Price to Earnings Ratio

The price to earnings ratio is a fundamental measure used to determine if an investment is valued appropriately. Each holdings' p/e is the latest closing price divided by the latest 12 months' earnings per share. Negative earnings are excluded, extraordinary items are excluded, and p/e ratios over 60 are set to 60.

 		--
Price to Book Ratio Price to Book Ratio

The price to book value ratio is a fundamental measure used to determine if an investment is valued appropriately. The book value of a company is a measure of how much a company's assets are worth assuming the company's debts are paid off. Negative book values are excluded from this calculation and holding price to book ratios over 25 are set to 25.

 		--
Beta Beta (vs S&P 500)

Beta measures the risk of the fund compared to market benchmark. Statistically, it is the covariance of the fund and benchmark, divided by the variance of the benchmark.
vs S&P 500 		0.20
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.

 		8.29%

Profile as of 5/24/2013

Description Value
Total Net Assets$12,473,174,189

Expense Ratio as of 3/31/2012*

 0.48%

Expense Ratio as of 3/31/2013**

0.47%
Shares Outstanding305,000,000
Number of Holdings
as of 5/23/2013		 316
Inception Date3/26/2007
IndexS&P U.S. Preferred Stock Index
Index TickerSPPREFTR
Net Asset Value
as of 5/24/2013		 $40.90
  • $0.06
  • 0.16%

Price

as of 5/24/2013 		$40.83
  • $0.08
  • 0.20%

*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.

Credit Ratings as of 5/23/2013

S&P S&P
AAA 0.00%
AA+ 0.53%
AA 0.40%
AA- 0.00%
A+ 0.10%
A 0.00%
A- 2.69%
BBB+ 10.80%
BBB 13.93%
BBB- 10.55%
BB+ 30.28%
BB 6.51%
BB- 0.00%
B+ 1.30%
B 0.23%
B- 0.26%
CCC+ 2.36%
CCC 0.00%
CCC- 0.11%
CC 0.00%
C 1.62%
CI 0.00%
R 0.00%
SD 0.00%
D 0.00%
Not Rated 5.25%
Other 13.09%

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.

Fees & Expenses

Expense Detail as of 3/31/2012*

%
Management Fees 0.48%
+ Acquired Fund Fees & Expenses ‡ 0.00%
= Total Annual Fund Operating Expenses 0.48%

Expense Detail as of 3/31/2013**

%

Management Fees

0.47%

+

Acquired Fund Fees & Expenses

0.00%

=

Total Expense Ratio

0.47%

*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.

Trading Information

Identifier Type Symbol
TickerPFF
Shares OutstandingPFF.SO
Total CashPFF.TC
CUSIP464288687
Options Available

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").

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.

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.

S&P® and Standard & Poor's® are trademarks of Standard & Poor’s Financial Services LLC (a subsidiary of The McGraw-Hill Companies) and have been licensed for use for certain purposes by BlackRock. 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.

© 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