iShares

iShares ETFs Capital Gains Distributions

Tax efficiency is a key component to an ETF's total performance.

iShares offers experienced Portfolio Management and Index Research groups that constantly assess the risk and tax consequences of each transaction to help reduce risk and maximize tax efficiency. Delivering on our reputation for low cost and tax-efficient investments is integral to every decision we make.


Our results are measurable. This year 98% of iShares ETFs (275 of 280) did not pay capital gains distributions. Please see the table below for detail on the funds that paid capital gains.



2012 Capital Gains Distributions

Fund Name Short Term Gain ($/share) Long Term Gain ($/share) Total Distributions ($/share) Total Distribution (% of NAV) Ex-Date Pay Date
iShares Financials Sector Bond Fund (MONY) 0.26 - 0.26 0.50 12/3/2012 12/7/2012
iShares Barclays GNMA Bond Fund (GNMA) 0.22 - 0.22 0.44 12/3/2012 12/7/2012
iShares Core Total U.S. Bond Market ETF (AGG) 0.40 0.04 0.44 0.40 12/3/2012 12/7/2012
iShares Barclays MBS Bond Fund (MBB) 0.23 - 0.23 0.21 12/3/2012 12/7/2012
iShares iBoxx $ Investment Grade Corporate Bond Fund (LQD) - 0.01 0.01 0.01 12/3/2012 12/7/2012

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.

An investment in the fund(s) is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

All registered investment companies, including iShares Funds, are obliged to distribute portfolio gains to shareholders at year’s end regardless of performance. Transactions in shares of the iShares Funds will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer.

To receive a distribution, you must be a registered shareholder of the fund on the record date. Distributions are paid to shareholders on the payment date. Past distributions are not indicative of future distributions. Please consult your tax professional or financial advisor for more information regarding your tax situation.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., European Public Real Estate Association ("EPRA®"), FTSE International Limited ("FTSE"), JPMorgan Chase & Co., MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts ("NAREIT"), New York Stock Exchange, Inc., Russell Investment Group, S&P Dow Jones Indices LLC or Standard & Poor's, nor are they sponsored, endorsed or issued by Barclays Capital Inc. None of these companies make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the companies listed above.

Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/Residential/Retail/Mortgage or Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Developed Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. "FTSE®" is a trademark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE under license.


BlackRock does not provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

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

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