iShares
POTENTIAL USE
Express a view on high quality bonds
EXPOSURE
High quality U.S. corporate bonds (rated Aaa-A)
FUND NAME
iShares Aaa - A Rated Corporate Bond Fund

Yield as of 5/17/2013

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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.

2.04%
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.

 		2.25%
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.

 		2.03%
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 5/17/2013 		2.13%

Fundamentals as of 5/17/2013

Description Value
Weighted Average Maturity Weighted Average Maturity

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

 		9.71 yr
Weighted Average Coupon Weighted Average Coupon

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

 		3.77%
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.

 		6.57
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 		--

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
QLTA 6.22% -- -- -- 4.59%
Index Index

Barclays U.S. Corporate Aaa - A Capped Index

 		6.48% -- -- -- 5.15%

Sector Breakdown as of 5/17/2013*

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Sector % of Fund Sector % of Fund  
 
Industrial
53.07%
 
 
Financial ...
37.77%
 
 
Utility
4.38%
 
 
Financial
3.15%
 
 
S-T Securi...
0.84%
 
 
Other/Unde...
0.78%
 

Maturity as of 5/17/2013

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Time to Maturity % of Fund
0-1 Years2.33%
1-5 Years46.02%
5-10 Years27.99%
10-15 Years0.24%
15-20 Years1.21%
20-25 Years5.32%
25 Years and Over15.35%
Average9.71 years

Top Holdings as of 5/17/2013*

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Name % of Fund Coupon Maturity Moody's/S&P Rating
BLACKROCK FDS III 0.84% 0.01 Aaa /AA
BP CAPITAL MARKETS PLC 0.74% 1.85 5/5/2017 A2 /A
BANK OF AMERICA CORP 0.68% 7.38 5/15/2014 Baa2 /A-
ANHEUSER-BUSCH INBEV WORLDWIDE INC 0.67% 0.80 7/15/2015 A3 /A
INTERNATIONAL BUSINESS MACHINES CO 0.64% 0.75 5/11/2015 Aa3 /AA-
GENERAL ELECTRIC CAPITAL CORP 0.63% 5.88 1/14/2038 A1 /AA+
WAL-MART STORES INC 0.58% 6.50 8/15/2037 Aa2 /AA
WELLS FARGO & COMPANY 0.57% 3.75 10/1/2014 A2 /A+
GOLDMAN SACHS GROUP INC 0.56% 6.00 5/1/2014 A3 /A-
PEPSICO INC/NC 0.55% 0.70 8/13/2015 Aa3 /A-
Total6.46% 
*Holdings are subject to change.

Profile as of 5/20/2013

Description Value
Total Net Assets$391,734,584

Expense Ratio

0.15%
Shares Outstanding7,600,000
Number of Holdings
as of 5/17/2013		 614
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.

 		A-f
Inception Date2/14/2012
IndexBarclays U.S. Corporate Aaa - A Capped Index
Index TickerBQF1TRUU
Net Asset Value
as of 5/20/2013		 $51.54
  • $-0.02
  • -0.03%
Price
as of 5/17/2013		 $51.81
  • $-0.20
  • -0.38%
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

%
Management Fees 0.15%
+ Acquired Fund Fees & Expenses ‡ 0.00%
= Total Annual Fund Operating Expenses 0.15%

Credit Ratings as of 5/17/2013

S&P/Moody's
 S&P Moody's
AAA/Aaa 1.25% 2.09%
AA+/Aa1 3.06% 2.82%
AA/Aa2 7.95% 6.18%
AA-/Aa3 9.56% 9.36%
A+/A1 16.26% 14.61%
A/A2 23.24% 24.20%
A-/A3 36.58% 27.88%
BBB+/Baa1 0.64% 4.77%
BBB/Baa2 0.58% 6.87%
BBB-/Baa3 0.00% 0.00%
BB+/Ba1 0.00% 0.00%
BB/Ba2 0.00% 0.00%
BB-/Ba3 0.00% 0.00%
B+/B1 0.00% 0.00%
B/B2 0.00% 0.00%
B-/B3 0.00% 0.00%
CCC+/Caa1 0.00% 0.00%
CCC/Caa2 0.00% 0.00%
CCC-/Caa3 0.00% 0.00%
CC/Ca 0.00% 0.00%
C/C 0.00% 0.00%
R/-- 0.00% --
SD/-- 0.00% --
D/-- 0.00% --
Not Rated 0.19% 0.53%
Other 0.70% 0.70%

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
TickerQLTA
Index TickerBQF1TRUU
NAVQLTA.NV
Underlying Trading ValueQLTA.IV
Shares OutstandingQLTA.SO
Estimated CashQLTA.EU
Total CashQLTA.TC
CUSIP46429B291
Options Available

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Related Resources

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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.

In addition to the normal risks associated with investing, narrowly focused investments typically exhibit higher volatility. The Fund is subject to credit risk, which refers to the possibility that the debt issuers may not be able to make principal and interest payments or may have their debt downgraded by ratings agencies.

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.

The iShares Funds are not sponsored, endorsed or issued by Barclays Capital Inc. This company does not make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the company listed above.

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

Advisor Video: Scalable Solutions using All-ETF Fixed Income Portfolios

Robert Williams, Principal of Sage Advisory Services, discusses why Sage Advisory evolved their Fixed Income strategies beyond individual bonds to include ETFs. (6 mins)