iShares

Why iShares ETFs for International Exposure?

iShares has more than 130 international and global exchange traded funds (ETFs) that are cost efficient and capture a broad selection of the international investing universe.

International iShares ETFs typically have lower expense ratios than actively managed mutual funds*. Since iShares ETFs seek to closely track a benchmark index, they typically buy and sell securities less often than actively managed mutual funds, thereby decreasing the likelihood of capital gains distributions. Our iShares portfolio management team continuously exercises our tax expertise throughout the year in an attempt to minimize capital gains. Of course, as with any investment, if you sell your shares of an iShares ETF at a gain, capital gains taxes will still apply. Click Know the Differences for more information on the differences between iShares ETFs and mutual funds.

* The average expense ratio of an international iShares ETF is 0.51%, versus the average international active open-ended mutual fund expense ratio of 1.29%. Morningstar, 2/29/12.

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. Diversification may not protect against market risk.

In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Narrowly focused investments, securities focusing on a single country and investments in smaller companies may be subject to higher volatility.

The annual management fees of iShares Funds may be substantially less than those of most mutual funds. Buying and selling shares of iShares Funds will result in brokerage commissions, but the savings from lower annual fees can help offset these costs. Active funds typically charge more than index-linked products for the increased trading and research expenses that may be incurred.

Mutual funds and iShares Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the iShares Funds will also generate tax consequences. Certain traditional mutual funds can be tax efficient as well.

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.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the company listed above.

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

© 2000-2012 BlackRock. All rights reserved. iShares® and BlackRock® are registered trademarks of BlackRock. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

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