BRK ETF Surv

ETF Landscape
Industry Highlights
End Q3 2010
Deborah Fuhr, Managing Director

Global Head of ETF Research and Implementation Strategy
Phone: +44 20 7668 4276 Email: Deborah.Fuhr@blackrock.com
FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA.
Table of contents
I. Current ETF and ETP landscape 3

ETFs/ETPs listed Globally 3
Global ETF and ETP asset growth 5
Global ETF and ETP providers 7
ETFs/ETPs listed in the United States 19
United States ETF/ETP net new asset flows 21
ETFs/ETPs listed in Europe 38
European ETFs/ETP net new asset flows 40
ETFs/ETPs in Asia Pacific (ex-Japan) 54
ETFs/ETPs in Japan 60
ETFs/ETPs in Latin America 64
ETFs/ETPs in Canada 67
ETFs/ETPs in Middle East and Africa 70
II. Investment applications 72
Product overview 72
ETF/ETP toolbox 74
How and why ETFs are used 76
Growth in institutional users of ETFs 82
Core-satellite 87
Fixed income index trading characteristics 89
Commodity index comparison 94
Structures of ETFs and ETNs 99
III. Appendix – regulatory update 104
IV. ETF Landscape reports 115
FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE UNITED STATES OR CANADA. 2
ETFs listed globally
At the end of Q3 2010 the global ETF industry had 2,379 ETFs with 5,204 listings, assets of US$1,181.3 Bn, from 129 providers on 45
exchanges around the world.
Assets
• YTD assets have increased by 14.0% from US$1,036.0 Bn to US$1,181.3 Bn, which is greater than the 0.9% increase in the MSCI World
Index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 22.3% with 478 new ETFs launched, while 44 ETFs were delisted.
• The number of ETFs listed in Europe surpassed the United States in April 2009, now with 1,030 ETFs listed in Europe, compared to
890 in the United States at the end of Q3 2010.
• There are currently plans to launch 972 new ETFs.
• The top 100 ETFs, out of 2,379, account for 63.7% of global ETF AUM, while 1,226 ETFs have less than US$50.0 Mn in assets and
443 ETFs have less than US$10.0 Mn in assets.
Trading volume
• YTD the ETF average daily trading volume in US dollars increased by 14.7% to US$58.2 Bn.
ETF providers
• Globally, iShares is the largest ETF provider in terms of both number of products, 461 ETFs, and assets of US$534.6 Bn, reflecting
45.3% market share; State Street Global Advisors is second with 113 products and US$163.8 Bn, 13.9% market share; followed by
Vanguard with 63 products and assets of US$126.2 Bn and 10.7% market share at the end of Q3 2010.
• The top three ETF providers, out of 129, account for 69.8% of global ETF AUM.
• YTD 22 new providers have entered the industry, launching their first ETFs.
Exchanges
• YTD the number of exchanges with official listings has increased from 40 to 45.
Data as at end Q3 2010.

Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.
ETFs listed globally (continued)
Index providers
• MSCI ranks first in terms of AUM and number of products tracking its benchmarks with assets of US$292.6 Bn and 359 ETFs, while
Standard & Poor’s (S&P) ranks second with US$260.9 Bn and 290 ETFs, followed by Barclays Capital with US$113.1 Bn and 82 ETFs.
Mutual funds
• Globally, net sales of mutual funds (excluding ETFs) were minus US$221.0 Bn, while net sales of ETFs were positive US$81.6 Bn during
the first seven months of 2010 according to Strategic Insight.
ETPs
• Additionally, there were 878 other Exchange Traded Products (ETPs)1 with 1,445 listings and assets of US$146.9 Bn from 49 providers
on 20 exchanges.
ETFs and ETPs
• Combined, there were 3,257 products with 6,649 listings, assets of US$1,328.2 Bn from 158 providers on 48 exchanges around
the world.
1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including grantor
trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
Global ETF and ETP asset growth
Assets US$ Bn # products
1,400 2,500
1,200
2,000
1,000
1,500
800
600
1,000
400
500
200
0 0
Assets (US$ Bn) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF total $0.8 $1.1 $2.3 $5.3 $8.2 $17.6 $39.6 $74.3 $104.8 $141.6 $212.0 $309.8 $412.1 $565.6 $796.7 $711.1 $1,036.0 $1,181.3
ETF equity $0.8 $1.1 $2.3 $5.3 $8.2 $17.6 $39.6 $74.3 $104.7 $137.5 $205.9 $286.3 $389.6 $526.5 $729.9 $596.4 $841.6 $931.7
ETF fixed income $0.1 $0.1 $4.0 $5.8 $23.1 $21.3 $35.8 $59.9 $104.0 $167.0 $209.9
ETF commodity $0.0 $0.1 $0.3 $0.5 $1.2 $3.4 $6.3 $10.0 $25.6 $35.4
ETP total $2.0 $5.1 $3.9 $4.1 $6.3 $9.3 $15.9 $32.5 $54.6 $61.2 $119.7 $146.9
# ETFs 3 3 4 21 21 31 33 92 202 280 282 336 461 714 1,172 1,595 1,945 2,379
# ETPs 2 14 17 17 18 22 64 170 347 517 624 878

ETFs/ETPs listed by region
Global US Europe Japan Asia ex-Japan Latin America Canada

YTD YTD YTD YTD YTD YTD YTD
change change change change change change change
Metric Q3-10 (%) Q3-10 (%) Q3-10 (%) Q3-10 (%) Q3-10 (%) Q3-10 (%) Q3-10 (%)
ETFs
AUM (US$Bn) 1,181.3 14.0% 797.2 13.0% 256.2 12.9% 30.7 24.4% 51.3 31.7% 10.0 1.8% 34.0 19.1%
# ETFs 2,379 22.3% 890 15.3% 1,030 24.5% 74 8.8% 185 44.5% 21 23.5% 152 38.2%
# listings 5,204 36.0% 890 15.3% 3,396 39.3% 77 8.5% 289 41.0% 347 86.6% 178 33.8%
# providers 129 19.4% 29 0.0% 37 8.8% 6 0.0% 56 33.3% 3 0.0% 4 0.0%
# exchanges 45 12.5% 2 0.0% 21 16.7% 2 0.0% 13 0.0% 3 0.0% 1 0.0%
ADV (US$Mn) 58,179.5 14.7% 52,897.0 15.5% 3,028.6 12.7% 164.5 6.8% 713.0 -20.1% 411.7 84.8% 956.0 0.1%
ETPs
Assets (US$Bn) 146.9 22.7% 105.1 19.3% 24.4 55.7% 0.3 12.8% 1.2 49.4% - - 0.5 100.0%
# ETPs 878 40.7% 161 13.4% 389 118.5% 9 80.0% 15 25.0% - - 1 100.0%
# listings 1,445 56.4% 161 13.4% 889 98.9% 29 163.6% 18 20.0% 23 228.6% 21 61.5%
# providers 49 32.4% 18 5.9% 9 200.0% 4 100.0% 11 57.1% - - 1 100.0%
# exchanges 20 11.1% 1 0.0% 6 20.0% 2 0.0% 5 25.0% 1 0.0% 1 0.0%
Total
Assets (US$Bn) 1,328.2 14.9% 902.3 13.7% 280.6 15.7% 31.0 24.5% 52.5 32.0% 10.0 1.8% 34.4 20.7%
# ETFs/ETPs 3,257 26.8% 1,051 15.0% 1,419 41.2% 83 13.7% 200 42.9% 21 23.5% 153 40.4%
# listings 6,649 39.9% 1,051 15.0% 4,285 48.5% 106 29.3% 307 39.5% 370 91.7% 199 37.2%
# providers 158 20.6% 43 2.4% 42 23.5% 8 33.3% 60 36.4% 3 0.0% 4 0.0%
# exchanges 48 11.6% 2 0.0% 21 16.7% 2 0.0% 13 0.0% 3 0.0% 1 0.0%

Top 25 ETF/ETP providers around the world: ranked by assets
Q3-10 YTD change

# ETFs/ Assets % # # ETFs/ % ETFs/ Assets % % market
Provider ETPs (US$ Bn) total planned ETPs ETPs (US$ Bn) assets share
iShares 465 $547.3 41.2% 23 48 11.5% $48.7 9.8% -1.9%
State Street Global Advisors 114 $218.7 16.5% 33 6 5.6% $17.9 8.9% -0.9%
Vanguard 63 $126.2 9.5% 8 16 34.0% $34.2 37.1% 1.5%
Lyxor Asset Management 149 $48.1 3.6% 1 24 19.2% $1.8 3.8% -0.4%
db x-trackers 163 $43.9 3.3% 15 42 34.7% $6.5 17.5% 0.1%
PowerShares 136 $40.9 3.1% 39 11 8.8% $6.3 18.2% 0.1%
ProShares 111 $24.6 1.8% 137 21 23.3% $0.3 1.3% -0.2%
ETF Securities 221 $22.0 1.7% 54 46 26.3% $5.5 33.3% 0.2%
Nomura Asset Management 35 $18.1 1.4% 0 1 2.9% $4.4 32.7% 0.2%
Van Eck Associates Corp 27 $16.6 1.3% 18 4 17.4% $4.2 33.6% 0.2%
Credit Suisse Asset Management 54 $13.3 1.0% 0 27 100.0% $3.6 37.7% 0.2%
Deutsche Bank 65 $11.3 0.9% 2 31 91.2% -$2.3 -16.8% -0.3%
Bank of New York 1 $10.4 0.8% 0 0 0.0% $1.8 21.0% 0.0%
Zurich Cantonal Bank 7 $10.2 0.8% 0 3 75.0% $3.5 51.8% 0.2%
Barclays (iPath) 50 $8.3 0.6% 25 20 66.7% $2.3 39.3% 0.1%
WisdomTree Investments 44 $8.3 0.6% 67 -8 -15.4% $1.8 28.1% 0.1%
Commerzbank 86 $7.4 0.6% 0 24 38.7% $1.2 18.8% 0.0%
Source Markets 80 $7.0 0.5% 19 20 33.3% $3.8 116.7% 0.2%
Direxion Shares 38 $6.8 0.5% 147 12 46.2% $1.8 35.1% 0.1%
Amundi ETF 87 $6.8 0.5% 0 24 38.1% $2.0 41.4% 0.1%
Hang Seng Investment Management 3 $6.3 0.5% 0 0 0.0% $1.0 18.5% 0.0%
Rydex SGI 28 $5.9 0.4% 114 -12 -30.0% $0.1 2.1% -0.1%
UBS Global Asset Management 91 $5.8 0.4% 12 77 550.0% $2.3 65.8% 0.1%
Nikko Asset Management 14 $5.8 0.4% 0 4 40.0% $0.0 0.6% -0.1%
ETFlab Investment 35 $5.7 0.4% 0 4 12.9% -$1.3 -19.0% -0.2%

Top 25 ETF providers around the world: ranked by AUM
Q3-10 YTD change

# AUM % # # % AUM % % market
Provider ETFs (US$ Bn) total planned ETFs ETFs (US$ Bn) AUM share
iShares 461 $534.6 45.3% 22 48 11.6% $45.7 9.3% -1.9%
State Street Global Advisors 113 $163.8 13.9% 33 6 5.6% $2.8 1.7% -1.7%
Vanguard 63 $126.2 10.7% 8 16 34.0% $34.2 37.1% 1.8%
Lyxor Asset Management 149 $48.1 4.1% 1 24 19.2% $1.8 3.8% -0.4%
db x-trackers 163 $43.9 3.7% 15 42 34.7% $6.5 17.5% 0.1%
PowerShares 136 $40.9 3.5% 39 11 8.8% $6.3 18.2% 0.1%
ProShares 99 $23.1 2.0% 99 21 26.9% -$0.1 -0.5% -0.3%
Nomura Asset Management 32 $17.8 1.5% 0 2 6.7% $4.5 33.4% 0.2%
Van Eck Associates Corp 27 $16.6 1.4% 18 4 17.4% $4.2 33.6% 0.2%
Credit Suisse Asset Management 54 $13.3 1.1% 0 27 100.0% $3.6 37.7% 0.2%
Bank of New York 1 $10.4 0.9% 0 0 0.0% $1.8 21.0% 0.1%
Zurich Cantonal Bank 7 $10.2 0.9% 0 3 75.0% $3.5 51.8% 0.2%
WisdomTree Investments 44 $8.3 0.7% 67 -8 -15.4% $1.8 28.1% 0.1%
Commerzbank 86 $7.4 0.6% 0 24 38.7% $1.2 18.8% 0.0%
Direxion Shares 38 $6.8 0.6% 147 12 46.2% $1.8 35.1% 0.1%
Amundi ETF 87 $6.8 0.6% 0 24 38.1% $2.0 41.4% 0.1%
Source Markets 52 $6.3 0.5% 19 20 62.5% $3.5 123.7% 0.3%
Hang Seng Investment Management 3 $6.3 0.5% 0 0 0.0% $1.0 18.5% 0.0%
Nikko Asset Management 14 $5.8 0.5% 0 4 40.0% $0.0 0.6% -0.1%
ETFlab Investment 35 $5.7 0.5% 0 4 12.9% -$1.3 -19.0% -0.2%
EasyETF 64 $5.5 0.5% 1 0 0.0% -$0.3 -5.5% -0.1%
Daiwa Asset Management 23 $5.0 0.4% 1 0 0.0% $0.1 1.6% -0.1%
Claymore Investments 28 $4.2 0.4% 7 3 12.0% $0.9 27.2% 0.0%
Swiss & Global Asset Management 16 $3.9 0.3% 0 12 300.0% $1.8 84.3% 0.1%

Global ETF assets by type of exposure
Q3-10 YTD change

# AUM % # AUM % North America – equity 38.2%
Exposure ETFs (US$ Bn) total ETFs (US$ Bn) AUM
Emerging markets – equity 17.8%
Equity 1,848 $931.7 78.9% 307 $90.1 10.7%
North America 575 $451.1 38.2% 80 $27.7 6.6% Fixed income – all (ex-cash) 17.2%
Emerging markets 409 $210.7 17.8% 110 $47.5 29.1%
Europe – equity 9.5%
Europe 483 $112.1 9.5% 61 -$2.6 -2.2%
Asia Pacific – equity 6.3%
Asia pacific 181 $74.3 6.3% 33 $11.7 18.7%
Global (ex-US) 71 $59.2 5.0% 7 $3.6 6.4% Global (ex-US) – equity 5%
Global 129 $24.3 2.1% 16 $2.1 9.7%
Commodities 3%
Fixed income 357 $209.9 17.8% 76 $42.9 25.7%
Fixed income – all (ex-cash) 337 $203.4 17.2% 74 $44.3 27.9% Global – equity 2.1%
Fixed income – cash (money market) 20 $6.5 0.5% 2 -$1.5 -18.3% Fixed income – cash (money market) 0.5%
Commodities 112 $35.4 3.0% 42 $9.8 38.2%
Alternative 0.2%
Alternative 10 $1.8 0.2% 8 $1.8 100.0%
Currency 16 $1.6 0.1% 2 $0.5 41.4% Currency 0.1%
Mixed 36 $0.9 0.1% -1 $0.2 37.4%

Mixed 0.1%
Total 2,379 $1,181.3 100.0% 434 $145.2 14.0%

Global ETF/ETP net new assets by type of exposure
Sep-10
# ETFs ADV Assets NNA YTD-10 NNA 2009 NNA

Exposure /ETPs (US$ Mn) (US$ Mn) (US$ Mn) (US$ Mn) (US$ Mn)
Equity 1,539 53,555.1 828,004.4 28,582.5 55,414.5 69,201.3
Developed markets – equity 1,312 47,725.4 661,369.2 21,175.5 28,364.3 34,660.4
North America – equity 545 43,745.7 436,528.4 19,163.6 15,639.1 3,548.4
Asia Pacific – equity 88 581.0 30,610.6 421.1 2,354.6 4,487.8
Europe – equity 488 2,048.5 112,208.6 946.3 4,329.4 19,779.5
Global – equity 123 193.3 24,056.1 548.0 2,806.7 6,153.3
Global (ex-US) – equity 68 1,156.8 57,965.4 96.5 3,234.5 691.4
Emerging markets – equity 227 5,829.7 166,635.2 7,407.0 27,050.2 34,540.9
Broad – emerging markets 60 2,884.4 104,457.6 4,577.7 23,180.2 20,356.3
Regional – emerging markets 33 141.9 7,646.1 311.8 225.4 2,179.5
Country – emerging markets 134 2,803.4 54,531.5 2,517.6 3,644.5 12,005.1
Brazil 18 1,249.0 14,195.5 404.2 -368.7 3,356.8
Chile 2 23.6 916.6 176.7 462.7 50.1
China 32 768.2 13,891.2 444.0 -1,174.6 3,054.0
Colombia 1 5.5 116.7 49.2 95.2 5.3
Egypt 2 0.2 18.8 0.0 10.3 -5.2
Hungary 1 0.0 18.2 0.0 -0.5 -0.3
India 14 122.9 6,128.0 405.8 949.4 1,390.9
Indonesia 2 25.6 804.1 216.2 469.2 167.5
Kuwait 2 0.2 40.1 -12.7 2.8 14.5
Malaysia 2 43.7 1,102.0 165.1 346.1 71.1
Mexico 5 120.8 1,568.4 -46.4 379.7 302.0
Peru 1 9.9 329.5 54.0 158.8 96.3
Philippines 1 0.0 2.5 2.5 2.5 0.0
Poland 3 0.9 188.1 79.0 168.4 7.3
Russia 11 76.6 3,446.7 31.1 1,019.1 552.9
South Africa 7 25.6 883.1 38.0 82.5 82.7
South Korea 7 139.2 4,687.3 155.5 770.5 922.9
Taiwan 7 115.0 3,552.3 16.9 -541.0 1,231.4
Thailand 1 15.9 665.4 79.2 284.6 205.3
Turkey 12 57.4 1,621.3 226.3 378.4 318.0
UAE 1 0.0 0.8 -11.8 -10.6 7.2
Vietnam 2 3.3 355.0 44.9 159.4 151.8
continued…
Global ETF/ETP NNA approximated by combining US and European flows.
NNA – Net New Assets. Data as at end Q3 2010.
Source: National Stock Exchange (NSX), Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.
Global ETF/ETP net new assets by type of exposure (continued)
Sep-10

Fixed income 312 2,764.1 197,362.2 1,854.5 37,018.8 54,255.3
Broad 12 206.4 31,443.1 549.2 6,383.6 8,319.0
Active 6 4.8 401.2 -149.9 345.4 48.8
Corporate 31 273.0 37,910.1 922.2 7,468.8 15,331.5
Convertible 1 4.2 390.1 65.1 147.5 212.0
Covered 8 1.6 1,064.2 71.3 370.0 438.4
Credit spreads 13 9.4 805.4 26.4 -88.7 -291.1
Government 171 1,847.9 67,286.7 453.2 15,955.4 12,900.1
High yield 4 166.2 13,238.5 967.6 4,754.6 4,429.4
Inflation 21 118.7 26,353.5 -461.3 774.9 12,505.6
Money market 14 55.3 6,297.5 -735.4 -1,450.6 -4,518.2
Mortgage 4 30.8 4,028.0 54.3 448.8 1,305.2
Municipal 27 45.9 8,143.9 91.9 1,909.2 3,574.6
Commodities 480 3,359.9 145,802.3 1,795.1 16,343.5 46,209.7
Broad 77 151.9 15,658.4 -112.4 852 7,944
Agriculture 100 88.3 6,266.6 -214.7 -654.1 3,221.8
Energy 96 473.9 10,145.4 252.3 -218.7 7,890.1
Industrial metals 72 37.0 2,504.2 52.8 -82.8 1,141.5
Livestock 18 1.6 148.6 3.5 -27.3 48.3
Precious metals 117 2,607.3 111,079.2 1,813.5 16,474.9 25,963.8
Currency 98 438.6 6,127.6 -366.6 -2,204.1 4,345.6
Alternative 16 454.9 4,860.2 1,078.6 3,487.9 2,157.2
Mixed 25 5.0 841.9 28.8 319.8 240.3
Total 2,470 60,577.6 1,182,998.6 32,973.0 110,380.4 176,409.4
Global ETF/ETP NNA approximated by combining US and European flows.

Global inverse and leveraged ETF assets by type of exposure
Q3-10 YTD change

# # total AUM % # # total AUM % %
Exposure ETFs listings (US$ Bn) total ETFs listings (US$ Bn) AUM total
Inverse 74 184 $9.1 22.2% 19 59 $2.5 38.7%
Equity 51 137 $7.1 0.6% 8 30 $1.7 30.9% -13.5%
North America 17 27 $3.9 0.3% 4 7 $1.4 53.7% -6.4%
Europe 28 102 $2.6 0.2% 2 21 $0.1 4.3% -6.4%
Emerging markets 4 4 $0.4 0.0% 2 2 $0.1 36.7% -0.7%
Global (ex-US) 1 1 $0.1 0.0% 0 0 $0.1 178.4% -0.1%
Asia Pacific 1 3 $0.0 0.0% 0 0 $0.0 77.7% 0.0%
Fixed income 19 43 $2.0 0.2% 9 27 $0.9 77.8% -2.8%
Commodities 3 3 $0.0 0.0% 2 2 $0.0 183.7% 0.0%
Alternative 1 1 $0.0 0.0% 0 0 $0.0 100.0% -0.1%
Leveraged 110 182 $13.6 33.3% 70 76 -$1.3 -8.7%
Equity 96 168 $12.2 1.0% 67 73 -$1.3 -9.9% -34.5%
North America 51 73 $9.4 0.8% 51 23 -$1.4 -12.7% -27.3%
Europe 28 76 $2.1 0.2% 6 40 -$0.2 -6.7% -5.9%
Emerging markets 13 15 $0.6 0.1% 7 9 $0.2 35.3% -1.2%
Global (ex-US) 2 2 $0.0 0.0% 2 0 $0.0 -6.6% -0.1%
Asia Pacific 2 2 $0.0 0.0% 1 1 $0.0 33.8% 0.0%
Fixed income 6 6 $0.1 0.0% 3 3 $0.1 346.7% -0.1%
Commodities 7 7 $1.3 0.1% 0 0 $0.0 -2.6% -3.4%
Currency 1 1 $0.0 0.0% 0 0 $0.0 -32.0% 0.0%
Leveraged inverse 101 156 $18.2 44.5% 14 53 $1.5 9.2%
Equity 84 136 $12.9 1.1% 10 46 $1.7 14.9% -28.4%
North America 48 71 $10.5 0.9% 3 20 $1.2 13.0% -23.6%
Europe 22 49 $1.7 0.1% 5 22 $0.5 44.1% -3.0%
Emerging markets 10 12 $0.6 0.0% 2 4 -$0.1 -13.0% -1.7%
Global (ex-US) 2 2 $0.0 0.0% 0 0 $0.0 50.4% -0.1%
Asia Pacific 2 2 $0.0 0.0% 0 0 $0.0 -27.7% -0.1%
Fixed income 7 10 $5.1 0.4% 2 5 $0.0 1.0% -12.9%
Commodities 9 9 $0.2 0.0% 2 2 -$0.2 -53.4% -0.9%
Currency 1 1 $0.0 0.0% 0 0 $0.0 -27.2% -0.1%
Total 285 522 $40.9 100.0% 103 188 $2.8 7.3% 285

Index providers worldwide: ranked by AUM
Q3-10 YTD change

MSCI 24.8%
# AUM % # AUM %
S&P 22.1%
Index provider ETFs (US$ Bn) total ETFs (US$ Bn) AUM
Barclays Capital 9.6%
MSCI 359 $292.6 24.8% 94 $48.8 20.0%
Russell 5.8%
S&P 290 $260.9 22.1% 57 $11.7 4.7%
Barclays Capital 82 $113.1 9.6% 12 $25.7 29.3% FTSE 4.3%
Russell 67 $68.5 5.8% 6 $2.5 3.8% STOXX 4%
FTSE 168 $50.9 4.3% 42 $8.1 19.1% Markit 3.9%
STOXX 218 $47.2 4.0% 14 -$3.7 -7.3% Dow Jones 3.6%
Markit 93 $46.0 3.9% 23 $7.8 20.4% NASDAQ OMX 2.6%
Dow Jones 151 $42.4 3.6% 15 $1.5 3.6%
Deutsche Boerse 2.2%
NASDAQ OMX 63 $30.7 2.6% 20 $4.2 15.9%
Topix 1.5%
Deutsche Boerse 40 $26.2 2.2% 10 $2.8 11.8%
Hang Seng 1.2%
Topix 53 $17.6 1.5% 0 $5.1 41.4%
Hang Seng 12 $13.9 1.2% 3 $2.1 17.7% Nikkei 1%
Nikkei 9 $12.1 1.0% 1 -$0.4 -2.9% EuroMTS 0.9%
EuroMTS 29 $10.9 0.9% 7 -$0.1 -1.2% NYSE Euronext 0.7%
NYSE Euronext 18 $8.3 0.7% 8 $2.2 35.1% SIX Swiss Exchange 0.7%
SIX Swiss Exchange 17 $8.2 0.7% 4 $0.9 12.0% WisdomTree 0.6%
WisdomTree 35 $7.1 0.6% -10 $1.3 22.4%
CAC 0.6%
CAC 15 $6.8 0.6% -3 -$0.7 -9.4%
Indxis 0.4%
Indxis 6 $4.4 0.4% -1 $1.7 60.7%
CSI 0.3%
CSI 27 $3.0 0.3% 16 $0.6 24.4%
BNY Mellon 11 $2.5 0.2% 0 $0.2 8.6% BNY Mellon 0.2%
Intellidex 38 $2.4 0.2% -4 -$0.2 -8.9% Intellidex 0.2%
Morningstar 10 $1.7 0.1% 0 $0.0 -0.9% Morningstar 0.1%
S-Network 15 $1.2 0.1% 2 $0.0 1.3% S-Network 0.1%
Zacks 12 $0.7 0.1% -2 $0.1 20.9% Zacks 0.1%
Value Line 3 $0.2 0.0% -2 -$0.1 -17.1%
Value Line 0%
Other 538 $101.7 8.6% 122 $23.2 29.6%
Other 8.6%
Total 2,379 $1,181.3 100.0% 434 $145.2 14.0%

Top 20 ETFs worldwide
Ranked by Assets Under Management (AUM) Ranked by US$ Average Daily Trading Volumes (ADV)
ADV ADV
Country Bloomberg AUM (‘000 ADV Country Bloomberg ADV (‘000 AUM
ETF listed ticker (US$ Mn) shares) (US$ Mn) ETF listed ticker (US$ Mn) shares) (US$ Mn)
SPDR S&P 500 US SPY US $78,243.9 182,428 $20,513.7 SPDR S&P 500 US SPY US $20,513.7 182,428 $78,243.9
iShares MSCI Emerging Markets US EEM US $44,906.1 48,380 $2,084.1 iShares Russell 2000 US IWM US $3,726.1 57,084 $13,185.5
Vanguard Emerging Markets US VWO US $36,107.6 11,537 $505.6 PowerShares QQQ Trust US QQQQ US $3,287.9 68,801 $22,249.5
iShares MSCI EAFE US EFA US $35,123.5 18,666 $1,005.4 iShares MSCI Emerging Markets US EEM US $2,084.1 48,380 $44,906.1
iShares S&P 500 US IVV US $22,747.8 2,843 $320.8 iShares MSCI Brazil US EWZ US $1,193.3 16,336 $10,512.5
PowerShares QQQ Trust US QQQQ US $22,249.5 68,801 $3,287.9 iShares MSCI EAFE US EFA US $1,005.4 18,666 $35,123.5
iShares Barclays TIPS US TIP US $20,373.5 749 $81.1 Financial Select Sector SPDR Fund US XLF US $969.8 66,945 $5,255.8
iShares iBoxx $ Investment Grade Corporate US LQD US $14,874.4 1,110 $123.9 ProShares UltraShort S&P500 US SDS US $891.0 28,965 $3,433.4
Vanguard Total Stock Market ETF US VTI US $14,660.3 1,896 $109.0 iShares Barclays 20+ Year Treasury US TLT US $858.4 8,272 $2,987.9
iShares Russell 2000 US IWM US $13,185.5 57,084 $3,726.1 Energy Select Sector SPDR Fund US XLE US $759.0 13,896 $6,583.3
iShares Barclays Aggregate US AGG US $12,814.6 874 $94.6 Direxion Daily Financial Bull 3x Shares US FAS US $695.4 32,206 $1,690.3
iShares S&P/TSX 60 Canada XIU CN $11,123.7 17,071 $297.7 iShares FTSE/Xinhua China 25 US FXI US $692.2 16,590 $8,509.8
iShares Russell 1000 Growth US IWF US $10,870.0 2,828 $142.2 Direxion Daily Small Cap Bear 3x Shares US TZA US $673.5 22,835 $985.4
iShares MSCI Brazil US EWZ US $10,512.5 16,336 $1,193.3 SPDR DJ Industrial Average ETF US DIA US $613.8 5,780 $8,084.6
TOPIX ETF Japan 1306 JP $10,392.7 2,774 $27.9 Direxion Daily Financial Bear 3x Shares US FAZ US $593.9 44,137 $1,295.9
S&P 400 MidCap SPDR US MDY US $10,384.3 2,925 $414.2 iShares Dow Jones U.S. Real Estate US IYR US $536.4 10,039 $2,991.5
Vanguard Total Bond Market ETF US BND US $9,072.2 587 $48.3 ProShares Ultra S&P500 US SSO US $526.8 13,805 $1,395.2
iShares Russell 1000 Value US IWD US $8,773.4 1,708 $100.2 Direxion Daily Small Cap Bull 3x Shares US TNA US $509.0 12,032 $461.0
iShares Barclays 1-3 Year Treasury US SHY US $8,604.7 1,100 $92.7 Vanguard Emerging Markets US VWO US $505.6 11,537 $36,107.6
iShares FTSE/Xinhua China 25 US FXI US $8,509.8 16,590 $692.2 Industrial Select Sector SPDR Fund US XLI US $473.2 15,452 $2,941.4

Global ETF listings
Americas
# primary # total AUM
listings listings Providers US$ Bn
1 Brazil 7 7 2 1.7
2 Canada 152 178 4 34.0
3 Chile - 50 - - 8
16 24
19
4 Mexico 14 290 2 8.3
13 28 15 17
5 United States 890 890 29 797.2 2 9 7 10 6 12
EMEA 25 21
5 18 23 14 11 26
38 34
# primary # total AUM
listings listings Providers US$ Bn 30
4 27 31 39
6 Austria 1 21 1 0.1 32
20
7 Belgium 1 23 1 0.1 40
35
8 Finland 1 1 1 0.2
37
9 France 259 421 9 55.5
33
10 Germany 375 1,094 9 101.5 1
11 Greece 2 2 2 0.1
12 Hungary 1 1 1 0.0
3 22
13 Ireland 14 14 2 0.3 29
14 Italy 23 488 4 2.1 36
15 Netherlands 11 106 4 0.3
16 Norway 6 6 2 0.8
17 Poland 1 1 1 0.1
18 Portugal 2 2 1 0.0
19 Russia 1 1 1 0.0
20 Saudi Arabia 2 2 1 0.0 Asia Pacific Asia Pacific (continued)
21 Slovenia 1 1 1 0.0 # primary # total AUM # primary # total AUM
22 South Africa 24 24 7 2.0 listings listings Providers US$ Bn listings listings Providers US$ Bn
23 Spain 10 44 2 1.5 29 Australia 12 33 4 3.3 35 Malaysia 4 5 3 0.4
24 Sweden 24 64 2 2.4 30 China 12 12 10 11.0 36 New Zealand 6 6 2 0.4
25 Switzerland 102 495 7 32.7 31 Hong Kong 38 67 10 25.0 37 Singapore 22 73 8 3.2
26 Turkey 11 11 5 0.1 32 India 15 15 7 0.3 38 South Korea 60 60 12 4.9
27 United Arab Emirates 1 1 1 0.0 33 Indonesia 1 1 1 0.0 38 Taiwan 12 14 2 2.6
28 United Kingdom 184 600 9 58.4 34 Japan 74 77 6 30.7 40 Thailand 3 3 2 0.1
Providers = Primary ETF providers. AUM = Assets Under Management in primary listings only. Data as at end Q3 2010.
Top 25 ETP providers around the world: ranked by assets
Q3-10 YTD change

# Assets % # # % Assets % % market
Provider ETPs (US$ Bn) total planned ETPs ETPs (US$ Bn) AUM share
State Street Global Advisors 1 $54.9 37.4% 0 0 0.0% $15.2 38.1% 4.2%
ETF Securities 196 $21.4 14.6% 52 42 27.3% $5.2 32.3% 1.1%
iShares 4 $12.7 8.6% 1 0 0.0% $3.0 30.9% 0.5%
Deutsche Bank 65 $11.3 7.7% 2 31 91.2% -$2.3 -16.8% -3.7%
Barclays (iPath) 50 $8.3 5.7% 25 20 66.7% $2.3 39.3% 0.7%
United States Commodity Funds 9 $4.8 3.3% 1 2 28.6% -$2.8 -36.6% -3.0%
Merrill Lynch 17 $4.6 3.1% 0 0 0.0% -$0.6 -12.2% -1.2%
Societe Generale 42 $3.5 2.4% 0 42 100.0% $3.5 100.0% 2.4%
Rydex SGI 9 $2.5 1.7% 13 0 0.0% -$0.2 -6.0% -0.5%
Absa Capital 1 $2.1 1.4% 3 0 0.0% $0.2 10.4% -0.2%
JPMorgan Chase 2 $1.6 1.1% 0 0 0.0% $0.9 123.1% 0.5%
ProShares 12 $1.5 1.0% 38 0 0.0% $0.4 42.0% 0.1%
Swedish Export Credit Corp 7 $0.9 0.6% 0 0 0.0% $0.0 2.3% -0.1%
Source Markets 28 $0.7 0.5% 0 0 0.0% $0.3 69.4% 0.1%
GreenHaven Commodity Services 1 $0.3 0.2% 0 0 0.0% $0.1 35.7% 0.0%
Benchmark Asset Management 1 $0.2 0.2% 0 0 0.0% $0.1 135.3% 0.1%
Lyxor 3 $0.2 0.2% 0 0 0.0% $0.1 133.3% 0.1%
Nomura Asset Management 3 $0.2 0.1% 0 -1 -25.0% $0.0 -8.2% -0.1%
RBS 18 $0.2 0.1% 0 18 100.0% $0.2 100.0% 0.1%
Barclays Capital 10 $0.1 0.1% 0 2 25.0% $0.1 144.3% 0.0%
Morgan Stanley 4 $0.1 0.1% 0 0 0.0% $0.0 36.6% 0.0%
Credit Suisse 3 $0.1 0.1% 0 2 200.0% $0.1 2801.9% 0.1%
UTI Asset Management 1 $0.1 0.1% 0 0 0.0% $0.0 58.8% 0.0%

Top 20 ETPs worldwide
Ranked by assets Ranked by US$ Average Daily Trading Volumes (ADV)

ADV ADV
Country Bloomberg Assets (‘000 ADV Country Bloomberg ADV (‘000 Assets
ETP listed ticker (US$ Mn) shares) (US$ Mn) ETP listed ticker (US$ Mn) shares) (US$ Mn)
SPDR Gold Trust US GLD US $54,916.1 12,885 $1,648.6 SPDR Gold Trust US GLD US $1,648.6 12,885 $54,916.1
iShares Silver Trust US SLV US $6,880.1 11,609 $248.4 Oil Services HOLDRS US OIH US $478.0 4,188 $2,129.5
ETFS Physical Gold United Kingdom PHAU LN $5,341.8 187 $23.9 iPath S&P 500 VIX Short-Term Futures ETN US VXX US $418.2 24,703 $2,326.2
GBS Bullion Securities United Kingdom GBS LN $5,251.3 177 $22.4 Semiconductor HOLDRS US SMH US $404.7 14,580 $578.7
PowerShares DB Commodity Index US DBC US $4,391.3 1,244 $29.8 United States Oil Fund LP US USO US $294.0 8,661 $1,927.8
iShares Gold Trust US IAU US $4,195.2 2,836 $36.3 iShares Silver Trust US SLV US $248.4 11,609 $6,880.1
United States Natural Gas Fund LP US UNG US $2,537.7 20,851 $132.0 Euro Currency Trust US FXE US $233.7 1,721 $366.6
iPath S&P 500 VIX Short-Term Futures ETN US VXX US $2,326.2 24,703 $418.2 Retail HOLDRS US RTH US $177.5 1,794 $473.8
iPath Dow Jones-UBS Commodity Index TR ETN US DJP US $2,221.0 313 $13.2 United States Natural Gas Fund LP US UNG US $132.0 20,851 $2,537.7
Oil Services HOLDRS US OIH US $2,129.5 4,188 $478.0 PowerShares DB US Dollar Index Bullish Fund US UUP US $63.0 2,759 $703.5
PowerShares DB Agriculture Fund US DBA US $2,064.5 1,552 $42.8 ProShares Ultra DJ-UBS Crude Oil US UCO US $61.1 6,367 $424.4
NewGold ETF South Africa GLD SJ $2,064.2 377 $4.8 PowerShares DB Agriculture Fund US DBA US $42.8 1,552 $2,064.5
United States Oil Fund LP US USO US $1,927.8 8,661 $294.0 CurrencyShares Japanese Yen Trust US FXY US $42.2 356 $313.5
JPMorgan Alerian MLP Index ETN US AMJ US $1,596.5 703 $23.6 Regional Bank HOLDRS US RKH US $37.2 509 $81.0
iShares S&P GSCI Commodity-Indexed Trust US GSG US $1,516.1 366 $10.8 ProShares Ultra Silver US AGQ US $36.4 434 $197.3
iPath MSCI India ETN * US INP US $1,085.6 292 $22.0 iShares Gold Trust US IAU US $36.3 2,836 $4,195.2
ETFS Agriculture DJ-UBSCI United Kingdom AIGA LN $1,053.7 667 $4.8 PowerShares DB Gold Double Long ETN US DGP US $30.1 819 $501.2
ETFS Physical Swiss Gold Shares US SGOL US $984.9 158 $20.6 PowerShares DB Commodity Index US DBC US $29.8 1,244 $4,391.3
iPath S&P 500 VIX Mid-Term Futures ETN US VXZ US $871.3 281 $24.0 Pharmaceutical HOLDRS US PPH US $24.1 369 $546.1
PowerShares DB US Dollar Index Bullish Fund US UUP US $703.5 2,759 $63.0 iPath S&P 500 VIX Mid-Term Futures ETN US VXZ US $24.0 281 $871.3

Global ETP listings
12 9
1 5
Americas 3 8
18 16
# primary # total AUM 7
listings listings Providers US$Bn 2 11 14
Canada 1 21 1 0.5 15
1
2 Mexico - 23 - -
17
3 United States 161 161 18 105.1
4
EMEA
10
# primary # total AUM 13
listings listings Providers US$Bn
4 Botswana - 1 - 0.0
5 France 3 46 1 0.2
6 Germany 91 406 6 1.1
7 Israel 300 300 7 13.3
8 Italy - 47 - - Asia Pacific Asia Pacific (continued)

# primary # total AUM # primary # total AUM
9 Netherlands - 33 - - listings listings Providers US$Bn listings listings Providers US$Bn
10 South Africa 2 2 2 2.1 13 Australia 5 5 1 0.6 16 Japan 9 29 4 0.3
11 United Arab Emirates 1 1 1 0.0 14 Hong Kong - 1 - - 17 Singapore - 2 - -
12 United Kingdom 295 357 5 23.1 15 India 9 9 9 0.6 18 South Korea 1 1 1 0.0
Providers = Primary ETF providers. AUM = Assets Under Management in primary listings only. Data as at end Q3 2010.
ETFs listed in the United States
At the end of Q3 2010 the United States ETF industry had 890 ETFs, assets of US$797.2 Bn, from 29 providers on two exchanges.
Assets
• YTD assets have increased by 13.0% from US$705.5 Bn to US$797.2 Bn, which is greater than the 2.5% increase in the MSCI US Index
in US dollar terms.
• In September 2010, United States domiciled ETFs/ETPs experienced net inflows totalling US$28.0 Bn. Equity ETFs/ETPs saw
US$24.7 Bn net inflows, of which US$18.8 Bn went into North American equity ETFs/ETPs and US$5.6 Bn into emerging markets equity
ETFs/ETPs. Fixed income ETFs/ETPs saw net inflows of US$1.5 Bn, of which US$0.9 Bn went into high yield ETFs/ETPs and
US$0.7 Bn into corporate bond ETFs/ETPs. Commodity ETFs/ETPs experienced US$1.1 Bn net inflows, of which US$1.2 Bn went into
precious metals ETFs/ETPs, while broad commodity exposure ETFs/ETPs saw net outflows of US$0.2 Bn in September 2010.
• YTD, United States domiciled ETFs/ETPs experienced net inflows totalling US$76.1 Bn. Equity ETFs/ETPs saw US$36.7 Bn net inflows,
of which US$19.5 Bn went into emerging markets equity ETFs/ETPs and US$12.4 Bn into North American equity ETFs/ETPs. Fixed
income ETFs/ETPs saw net inflows of US$29.6 Bn, of which US$10.0 Bn went into government bond ETFs/ETPs and US$6.2 Bn into
aggregate/broad fixed income ETFs/ETPs. Commodity ETFs/ETPs saw US$8.9 Bn net inflows, of which US$10.5 Bn went into precious
metals ETFs/ETPs while energy ETFs/ETPs saw net outflows of US$1.0 Bn YTD.
ETFs
• The top 100 ETFs, out of 890, account for 83.1% of United States ETF AUM, while 390 ETFs have less than US$50.0 Mn in assets and
• 29 January 2010 marked the 17th anniversary of ETFs in the United States.
Trading volume
• YTD the ETF average daily trading volume in US dollars has increased by 15.5% to US$52.9 Bn.
• In September 2010, United States ETF turnover was 25.9% of all United States equity turnover, greater than the 24.7% in
December 2009.

ETFs listed in the United States (continued)
ETF providers
• iShares is the largest ETF provider in terms of both number of products, 214 ETFs, and assets of US$399.5 Bn, reflecting 50.1% market
share; State Street Global Advisors is second with 92 products and US$151.1 Bn, a 19.0% market share; followed by Vanguard with 62
products, assets of US$126.0 Bn and 15.8% market share at the end of Q3 2010.
• In September 2010, United States domiciled ETFs experienced net inflows totalling US$26.5 Bn. State Street Global Advisors gathered
the largest net inflows with US$12.3 Bn, followed by PowerShares with US$4.8 Bn net inflows, while ProShares saw US$0.3 Bn net
outflows in September 2010.
• YTD, United States domiciled ETFs experienced net inflows totalling US$67.6 Bn. Vanguard gathered the largest net inflows with
US$26.9 Bn, followed by iShares with US$19.9 Bn net inflows, while State Street Global Advisors saw US$0.8 Bn net outflows YTD.
• The top three ETF providers, out of 29, account for 84.9% of United States ETF AUM.
Mutual funds
• In the United States, net sales of mutual funds (excluding ETFs) were minus US$284.9 Bn, while net sales of ETFs domiciled in the
United States were positive US$46.3 Bn during the first seven months of 2010 according to Strategic Insight.
ETPs
• Additionally, there were 161 other Exchange Traded Products (ETPs)1 with assets of US$105.1 Bn from 18 providers on one exchange.
ETFs and ETPs
• Assets in ETFs and ETPs breaks through US$900 Bn.
• Combined, there were 1,051 products with assets of US$902.3 Bn from 43 providers on two exchanges in the United States.
1. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use an open-end investment company structure. The use of other structures including
grantor trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds.
United States ETF and ETP asset growth
Assets (US$ Bn) # products
900 1,000
800 900
800
700
700
600
600
500
500
400
400
300
300
200
200
100 100
0 0
Assets (US$ Bn) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF assets $0.5 $0.4 $1.1 $2.4 $6.7 $15.6 $33.9 $65.6 $84.6 $102.3 $150.7 $227.7 $299.4 $406.8 $580.7 $497.1 $705.5 $797.2
ETP assets $2.0 $5.0 $3.8 $4.0 $6.1 $8.9 $14.4 $25.9 $40.5 $45.3 $88.1 $105.1
# ETFs 1 1 2 19 19 29 30 81 101 113 117 152 201 343 601 698 772 890
# ETPs 2 14 17 17 17 17 20 37 71 136 142 151

Top 25 ETF/ETP providers in the United States: ranked by assets
Q3-10 YTD change

Sep-10
# ETFs/ Assets % # NNA YTD NNA # ETFs/ % ETFs/ Assets % % market
Provider ETPs (US$ Bn) total planned (US$ Bn) (US$ Bn) ETPs ETPs (US$ Bn) assets share
iShares 218 $412.2 45.7% 9 $3.7 $20.9 28 14.7% $38.1 10.2% -1.5%
State Street Global Advisors 93 $206.0 22.8% 32 $12.4 $6.0 4 4.5% $16.5 8.7% -1.1%
Vanguard 62 $126.0 14.0% 6 $3.2 $26.9 16 34.8% $34.0 37.0% 2.4%
PowerShares 117 $39.9 4.4% 38 $4.8 $4.7 11 10.4% $6.2 18.6% 0.2%
ProShares 111 $24.6 2.7% 137 -$0.5 $4.4 21 23.3% $0.3 1.3% -0.3%
Van Eck Associates Corp 27 $16.6 1.8% 18 $0.6 $2.2 4 17.4% $4.2 33.6% 0.3%
Deutsche Bank 36 $10.4 1.2% 2 -$0.2 -$3.1 2 5.9% -$3.1 -23.1% -0.6%
Bank of New York 1 $10.4 1.2% 0 $0.9 $1.1 0 0.0% $1.8 21.0% 0.1%
WisdomTree Investments 44 $8.3 0.9% 67 $0.6 $1.7 -8 -15.4% $1.8 28.1% 0.1%
Barclays (iPath) 38 $8.2 0.9% 25 $1.0 $2.8 8 26.7% $2.2 37.7% 0.2%
Direxion Shares 38 $6.8 0.8% 147 $0.2 $2.5 12 46.2% $1.8 35.1% 0.1%
Rydex SGI 28 $5.9 0.7% 114 $0.0 $0.1 -12 -30.0% $0.1 2.1% -0.1%
United States Commodity Funds 9 $4.8 0.5% 1 $0.1 -$1.0 2 28.6% -$2.8 -36.6% -0.4%
Merrill Lynch 17 $4.6 0.5% 0 -$0.2 -$0.5 0 0.0% -$0.6 -12.2% -0.2%
First Trust Advisors 43 $3.5 0.4% 7 $0.5 $1.4 3 7.5% $1.5 74.0% 0.1%
Guggenheim Funds 38 $3.3 0.4% 29 $0.1 $0.2 6 18.8% $0.4 12.2% 0.0%
ETF Securities 4 $2.2 0.2% 20 $0.2 $1.4 2 100.0% $1.7 350.5% 0.2%
Charles Schwab Investment Management 11 $1.7 0.2% 1 $0.1 $1.3 5 83.3% $1.4 400.5% 0.1%
JPMorgan Chase 2 $1.6 0.2% 0 $0.0 $0.7 0 0.0% $0.9 123.1% 0.1%
PIMCO 12 $1.3 0.1% 9 -$0.1 $0.8 3 33.3% $0.8 175.6% 0.1%
Swedish Export Credit Corp 7 $0.9 0.1% 0 $0.0 $0.0 0 0.0% $0.0 2.3% 0.0%
Global X Funds 14 $0.7 0.1% 24 $0.1 $0.5 7 100.0% $0.6 651.4% 0.1%
RevenueShares 6 $0.4 0.0% 8 $0.0 $0.1 0 0.0% $0.1 41.6% 0.0%
GreenHaven Commodity Services 1 $0.3 0.0% 0 $0.0 $0.1 0 0.0% $0.1 35.7% 0.0%
ALPS ETF Trust 3 $0.2 0.0% 6 $0.1 $0.2 1 50.0% $0.2 815.3% 0.0%

Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, National Stock Exchange (NSX).
ETF providers in the United States: ranked by AUM
Q3-10 YTD change

Sep-10
# AUM % # NNA YTD NNA # % AUM % % market
Provider ETFs (US$ Bn) total planned (US$ Bn) (US$ Bn) ETFs ETFs (US$ Bn) AUM share
iShares 214 $399.5 50.1% 8 $3.2 $19.9 28 15.1% $35.1 9.6% -1.5%
State Street Global Advisors 92 $151.1 19.0% 32 $12.3 -$0.8 4 4.5% $1.3 0.9% -2.3%
Vanguard 62 $126.0 15.8% 6 $3.2 $26.9 16 34.8% $34.0 37.0% 2.8%
PowerShares 117 $39.9 5.0% 38 $4.8 $4.7 11 10.4% $6.2 18.6% 0.2%
ProShares 99 $23.1 2.9% 99 -$0.3 $4.1 21 26.9% -$0.1 -0.5% -0.4%
Van Eck Associates Corp 27 $16.6 2.1% 18 $0.6 $2.2 4 17.4% $4.2 33.6% 0.3%
Bank of New York 1 $10.4 1.3% 0 $0.9 $1.1 0 0.0% $1.8 21.0% 0.1%
WisdomTree Investments 44 $8.3 1.0% 67 $0.6 $1.7 -8 -15.4% $1.8 28.1% 0.1%
Direxion Shares 38 $6.8 0.9% 147 $0.2 $2.5 12 46.2% $1.8 35.1% 0.1%
First Trust Advisors 43 $3.5 0.4% 7 $0.5 $1.4 3 7.5% $1.5 74.0% 0.2%
Rydex SGI 19 $3.3 0.4% 101 $0.2 $0.3 -12 -38.7% $0.3 9.2% 0.0%
Guggenheim Funds 38 $3.3 0.4% 27 $0.1 $0.2 6 18.8% $0.4 12.2% 0.0%
Charles Schwab Investment Management 11 $1.7 0.2% 1 $0.1 $1.3 5 83.3% $1.4 400.5% 0.2%
PIMCO 12 $1.3 0.2% 9 -$0.1 $0.8 3 33.3% $0.8 175.6% 0.1%
Global X Funds 14 $0.7 0.1% 24 $0.1 $0.5 7 100.0% $0.6 651.4% 0.1%
RevenueShares 6 $0.4 0.1% 8 $0.0 $0.1 0 0.0% $0.1 41.6% 0.0%
ALPS ETF Trust 3 $0.2 0.0% 6 $0.1 $0.2 1 50.0% $0.2 815.3% 0.0%
IndexIQ Advisors 9 $0.2 0.0% 24 $0.0 $0.1 4 80.0% $0.1 111.1% 0.0%
Emerging Global Advisors 9 $0.2 0.0% 15 $0.1 $0.1 5 125.0% $0.1 263.2% 0.0%
DBX Strategic Advisors 5 $0.1 0.0% 34 $0.0 $0.0 0 0.0% $0.0 -14.8% 0.0%
Fidelity Management & Research 1 $0.1 0.0% 0 $0.0 $0.0 0 0.0% $0.0 4.1% 0.0%
Old Mutual Global Shares 5 $0.1 0.0% 0 $0.0 $0.0 4 400.0% $0.0 55.5% 0.0%
Jefferies Asset Management 4 $0.1 0.0% 1 $0.0 $0.0 1 33.3% $0.0 5.0% 0.0%
AdvisorShares 3 $0.1 0.0% 5 $0.0 $0.1 2 200.0% $0.1 225.7% 0.0%
Grail Advisors 5 $0.0 0.0% 3 $0.0 $0.0 0 0.0% $0.0 29.8% 0.0%
FaithShares 5 $0.0 0.0% 0 $0.0 $0.0 0 0.0% $0.0 -17.0% 0.0%
Javelin Investment Management 2 $0.0 0.0% 0 $0.0 $0.0 1 100.0% $0.0 -60.1% 0.0%
US One Trust 1 $0.0 0.0% 2 $0.0 $0.0 1 100.0% $0.0 100.0% 0.0%
Data as at end Q3 2010. continued…
ETF providers in the United States: ranked by AUM (continued)
Q3-10 YTD change

Sep-10
# AUM % # NNA YTD NNA # % AUM % % market
Provider ETFs (US$ Bn) total planned (US$ Bn) (US$ Bn) ETFs ETFs (US$ Bn) AUM share
Pax World Management 1 $0.0 0.0% 2 $0.0 $0.0 1 100.0% $0.0 100.0% 0.0%
Geary Advisors 0 $0.0 0.0% 0 $0.0 $0.0 -2 -100.0% $0.0 -100.0% 0.0%
AllianceBernstein - - - 2 - - - - - - -
Capital West Securities - - - 1 - - - - - - -
Dreyfus Corp - - - 1 - - - - - - -
Eaton Vance - - - 5 - - - - - - -
Exchange Traded Spreads Trust - - - 5 - - - - - - -
Factor Advisors - - - 22 - - - - - - -
FactorShares - - - 5 - - - - - - -
Firsthand Capital - - - 1 - - - - - - -
Florentez Investment - - - 1 - - - - - - -
FocusShares - - - 6 - - - - - - -
Georgetown Investment Management - - - 5 - - - - - - -
Hartford - - - 1 - - - - - - -
Huntington Asset Advisors - - - 3 - - - - - - -
Janus Capital Management - - - 1 - - - - - - -
John Hancock - - - 1 - - - - - - -
JP Morgan Asset Management - - - 2 - - - - - - -
Legg Mason - - - 1 - - - - - - -
Macro Securities Depositor - - - 2 - - - - - - -
Next Investments - - - 2 - - - - - - -
Northern Trust - - - 2 - - - - - - -
RiverPark Advisors - - - 4 - - - - - - -
Russell Investments - - - 28 - - - - - - -
ShariahShares - - - 2 - - - - - - -
Spinnaker ETF Trust - - - 1 - - - - - - -
T Rowe Price - - - 1 - - - - - - -
Total 890 $797.2 100.0% 789 $26.5 $67.6 118 15.3% $91.7 13.0%
United States ETF/ETP net new assets by type of exposure
Sep-10

Equity 756 51,042.1 653,431.3 24,708.6 36,718.8 36,476.3
North America – equity 466 43,608.0 418,733.1 18,794.6 12,412.2 1,987.0
Active 3 0.1 13.0 0.0 4.1 12.8
Broad 256 34,983.1 326,009.6 17,671.2 9,516.1 (11,180.1)
Consumer goods/services 26 1,006.7 9,057.4 139.5 1,473.6 287.2
Energy 31 1,567.4 17,177.1 (19.0) 1,357.7 1,145.3
Financials 29 2,861.6 15,425.1 (335.3) (1,206.6) 1,409.1
Healthcare 21 280.9 8,121.2 12.3 (338.3) (400.8)
Industrials 14 556.3 4,610.2 18.4 405.6 914.1
Materials 11 522.3 4,769.4 245.9 57.8 1,206.2
Other 5 8.6 1,992.0 (0.1) (91.0) (77.1)
Real Estate 18 889.5 14,028.6 470.9 478.4 4,377.4
Technology 36 715.2 10,697.3 438.2 (106.6) 2,626.7
Telecommunications 6 20.1 1,285.1 107.5 210.1 139.4
Utilities 10 196.2 5,547.1 45.1 651.2 1,526.9
Asia Pacific – equity 29 498.7 19,608.6 158.5 248.1 1,825.8
Europe – equity 28 171.9 9,601.8 (170.9) 614.9 1,574.0
Global – equity 57 102.1 12,766.9 197.7 700.3 3,353.7
Global (ex-US) – equity 68 1,156.8 57,965.4 96.5 3,234.5 691.4
continued…

United States ETF/ETP net new assets by type of exposure (continued)
Sep-10

Emerging markets – equity 108 5,504.6 134,755.5 5,632.2 19,508.9 27,044.5
Broad – emerging markets 36 2,777.3 89,134.8 3,776.3 18,414.4 16,691.3
Regional – emerging markets 12 109.9 4,339.5 79.6 (263.7) 1,400.7
Country – emerging markets 60 2,617.4 41,281.1 1,776.3 1,358.3 8,952.5
Brazil 9 1,219.9 11,603.2 357.7 (520.2) 2,545.7
Chile 1 23.1 885.7 149.8 432.8 50.1
China 21 734.0 10,909.9 392.9 (1,254.3) 2,191.1
Colombia 1 5.5 116.7 49.2 95.2 5.3
Egypt 1 0.1 5.7 - 3.9
India 7 90.4 3,170.4 240.9 479.7 774.6
Indonesia 2 25.0 804.1 216.2 469.2 167.5
Malaysia 1 41.2 984.5 138.7 267.9 61.0
Mexico 3 120.4 1,531.3 (75.0) 343.3 302.0
Peru 1 9.9 329.5 54.0 158.8 96.3
Phillipines 1 0.0 2.5 2.5 2.5
Poland 2 0.7 106.2 1.5 90.9 7.3
Russia 2 59.5 1,937.5 - 492.9 378.8
South Africa 1 21.1 614.7 39.9 24.0 18.4
South Korea 2 122.4 3,668.8 40.6 303.9 770.6
Taiwan 2 109.2 2,965.2 (44.2) (686.3) 1,093.7
Thailand 1 15.9 665.4 79.2 284.6 174.8
Turkey 1 17.5 826.9 126.3 290.8 204.7
Vietnam 1 1.5 152.9 6.1 78.8 88.2
continued…
United States ETF/ETP net new assets by type of exposure (continued)
Sep-10

Fixed income 129 2,360.4 139,259.3 1,465.5 29,584.8 44,801.9
Active 6 4.8 401.2 (149.9) 345.4 48.8
Aggregate 11 203.6 31,112.2 545.9 6,173.4 8,216.7
Convertible 1 4.2 390.1 65.1 147.5 212.0
Corporate 18 205.2 26,590.1 713.4 5,026.9 10,560.6
Government 54 1,617.1 35,072.6 (298.6) 9,983.1 6,706.9
High yield 3 162.8 13,139.6 867.8 4,654.8 4,429.4
Inflation 6 90.8 22,234.2 (424.3) 1,034.1 10,139.8
Mortgage 3 26.0 2,175.4 54.3 310.5 913.1
Municipal 27 45.9 8,143.9 91.9 1,909.2 3,574.6
Commodities 100 3,054.1 99,867.0 1,128.6 8,918.6 32,551.8
Agriculture 17 58.9 2,966.5 22.6 (379.1) 1,927.6
Broad 20 128.8 9,886.8 (181.5) 160.7 4,958.1
Energy 21 439.9 6,737.6 64.7 (974.4) 6,055.9
Industrial metals 17 26.0 964.3 9.3 (310.4) 798.1
Livestock 1 0.9 71.1 3.8 (29.2) 18.9
Precious metals 24 2,399.6 79,240.6 1,209.6 10,451.0 18,793.2
Currency 36 430.9 5,645.5 (382.8) (2,432.2) 4,154.9
Alternative 6 439.5 3,376.1 1,025.2 2,968.0 1,258.7
Mixed 24 4.7 748.0 28.8 301.3 225.5
Total 1,051 57,331.7 902,327.2 27,973.9 76,059.3 119,469.1

United States leveraged and inverse ETF/ETP net new assets by type of exposure
Sep-10
Leveraged 76 3,341.1 11,253.0 (1,772.7) (1,724.4) (6,956.1)
Equity 59 3,204.3 9,677.0 (1,672.3) (1,757.3) (6,405.6)
Asia Pacific 2 0.2 13.2 - 3.0 8.7
Emerging markets 9 67.4 483.5 (110.4) (71.1) 316.2
Europe 1 0.2 3.2 - 2.8 -
Global (ex-US) 2 1.4 35.6 - (0.8) 23.9
North America 45 3,135.1 9,141.6 (1,561.9) (1,691.2) (6,754.3)
Commodities 8 119.6 1,447.8 (130.1) (3.9) (586.3)
Currency 3 0.9 21.0 (2.6) 4.8 10.7
Fixed income 6 16.3 107.2 32.3 32.0 25.1
Inverse 29 20.2 4,810.1 (85.6) 2,038.3 3,284.3
Equity 15 235.7 3,974.2 (137.9) 1,781.1 2,766.2
Emerging markets 2 1.9 243.1 (2.5) 61.5 273.3
Global (ex-US) 1 2.4 121.2 (8.2) 101.3 43.3
North America 12 231.3 3,609.9 (127.1) 1,618.3 2,449.6
Alternative 1 5.0 49.7 26.4 47.6 -
Commodities 6 1.1 58.2 1.7 (5.3) 165.9
Currency 2 9.2 219.2 0.0 (134.2) 122.3
Fixed income 5 9.9 508.8 24.1 349.0 229.9
Leveraged inverse 76 3,720.8 16,615.9 1,622.7 6,530.4 16,649.9
Equity 59 3,298.8 10,929.7 1,631.0 4,030.6 13,636.1
Asia Pacific 2 0.2 17.9 - (1.7) 18.6
Emerging markets 9 62.6 564.3 40.3 172.4 645.8
Europe 1 2.9 64.7 (1.0) 106.0 9.4
Global 1 0.2 19.9 - 19.2 -
Global (ex-US) 2 2.4 46.5 - 33.4 13.5
North America 44 3,230.5 10,216.4 1,591.6 3,701.2 12,948.9
Commodities 9 62.1 333.8 50.6 (43.2) 337.3
Currency 2 28.8 441.6 (27.4) 304.9 170.2
Fixed income 6 331.2 4,910.8 (31.5) 2,238.2 2,506.2
Total 181 7,082.1 32,679.0 (235.6) 6,844.3 12,978.1

Sector ETF net new assets
Index total ETF AUM ETF short

return (US$) (US$ Mn) interest ETF Sep-10
ETF Index YTD % (US$ Mn) ADV net flows YTD-10 net flows 2009 net flows
Sector ticker ticker Sep-10 YTD-10 30-Sep-10 change 15-Sep-10 (US$ Mn) (US$ Mn) (US$ Mn) (US$ Mn)
Dow Jones United States sector ETFs 5,702.9 -3.2% 229.3 152.2 70.4 -329.6 -28.2
iShares Dow Jones U.S. Basic Materials IYM US DJUSBM 10.5% 9.0% 775.2 -5.0% 66.2 46.2 81.7 -100.0 246.4
iShares Dow Jones U.S. Consumer Goods IYK US DJUSNC 6.0% 8.3% 287.4 -12.3% 11.2 2.0 0.1 -59.2 -105.4
iShares Dow Jones U.S. Consumer Services IYC US DJUSCY 11.4% 11.0% 171.0 6.3% 17.6 3.5 -17.4 6.0 -11.6
iShares Dow Jones U.S. Energy IYE US DJUSEN 9.7% -1.6% 630.6 -12.2% 7.7 4.1 -7.8 -65.4 9.6
iShares Dow Jones U.S. Financial IYF US DJUSFN 6.5% 1.6% 421.7 -11.4% 44.2 58.6 -34.2 -80.3 -105.5
iShares Dow Jones U.S. Healthcare IYH US DJUSHC 9.5% 0.3% 565.7 -8.6% 37.4 2.9 -6.1 -37.7 -356.3
iShares Dow Jones U.S. Industrial IYJ US DJUSIN 11.7% 10.4% 323.6 11.9% 10.6 5.1 9.0 9.2 -11.7
iShares Dow Jones U.S. Technology IYW US DJUSTC 12.4% 0.9% 1,223.7 -10.0% 7.6 9.2 -22.3 -117.1 263.3
iShares Dow Jones U.S. Telecommunications IYZ US DJSTELT 9.1% 11.6% 781.8 22.8% 13.0 16.5 67.5 89.5 106.8
iShares Dow Jones U.S. Utilities IDU US DJUSUT 3.4% 4.5% 522.2 6.7% 13.8 3.9 -0.1 25.5 -63.9
S&P equal weight sector ETFs 297.0 8.8% 41.1 3.0 3.2 13.4 100.3
Rydex S&P Equal Weight Consumer Discretionary RCD US S25 13.5% 12.2% 24.5 34.6% 1.6 0.3 -1.9 5.0 2.3
Rydex S&P Equal Weight Consumer Staples RHS US S30 5.5% 8.8% 13.5 36.1% 0.0 0.1 0.0 2.5 -1.9
Rydex S&P Equal Weight Energy RYE US S10 11.7% 1.7% 15.3 -12.9% 0.4 0.1 0.0 -3.0 9.3
Rydex S&P Equal Weight Financial RYF US S40 7.8% 8.5% 16.1 17.1% 0.0 0.1 0.0 1.8 1.0
Rydex S&P Equal Weight Health Care RYH US S35 10.6% 1.6% 52.0 -23.8% 37.0 1.2 0.3 -16.0 -1.4
Rydex S&P Equal Weight Industrial RGI US S20 12.0% 10.6% 40.9 109.7% 0.2 0.2 2.3 18.8 8.4
Rydex S&P Equal Weight Materials RTM US S15 8.0% 6.1% 32.8 -4.0% 0.2 0.4 0.0 -2.7 17.8
Rydex S&P Equal Weight Technology RYT US S45 13.5% 5.9% 84.5 5.7% 0.1 0.4 0.0 2.1 58.5
Rydex S&P Equal Weight Utilities RYU US S55 3.3% 2.6% 17.4 48.2% 1.6 0.3 2.5 4.9 6.4
S&P select sector ETFs 33,232.8 6.0% 8,641.3 3,733.7 99.1 940.6 3,483.0
Consumer Discretionary Select Sector SPDR XLY US IXY 11.1% 13.4% 1,722.3 17.7% 960.7 231.4 -164.8 108.1 493.0
Consumer Staples Select Sector SPDR XLP US IXR 6.0% 7.6% 3,283.5 44.5% 406.9 187.3 30.3 808.3 -117.0
Energy Select Sector SPDR XLE US IXE 10.0% -0.2% 6,584.4 17.2% 1,892.4 801.8 281.4 1,039.1 195.0
Financial Select Sector SPDR XLF US IXM 6.1% 0.5% 5,248.4 -23.4% 1,897.0 1,091.3 -228.5 -1,544.4 -1,805.0
Health Care Select Sector SPDR XLV US IXV 9.1% -0.7% 2,799.4 -4.5% 781.8 192.9 -229.7 -404.7 599.0
Industrial Select Sector SPDR XLI US IXI 11.5% 14.2% 2,930.2 40.9% 792.3 506.4 110.3 711.2 631.0
Materials Select Sector SPDR XLB US IXB 7.9% 2.1% 2,084.6 15.8% 640.2 283.8 146.7 361.3 469.0
Technology Select Sector SPDR XLK US IXT 11.6% 1.8% 4,394.7 -6.0% 708.8 236.0 119.8 -618.7 1,545.0
Utilities Select Sector SPDR XLU US IXU 2.9% 4.3% 4,185.3 14.1% 561.1 202.9 33.7 480.5 1,473.0
continued…
Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indices
are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. NNA – Net New Assets. Data as at end Q3 2010.
Sector ETF net new assets (continued)
Index total ETF AUM ETF short

return (US$) (US$ Mn) interest ETF Sep-10
ETF Index YTD % (US$ Mn) ADV net flows YTD-10 net flows 2009 net flows
Sector ticker ticker Sep-10 YTD 30-Sep-10 change 15-Sep10 (US$ Mn) (US$ Mn) (US$ Mn) (US$ Mn)
MSCI United States investable market sector ETFs 6,009.8 11.9% 65.3 42.1 272.2 1,185.7 3,017.9
Vanguard Consumer Discretionary VCR US MZUSI0CD 12.3% 14.0% 247.1 25.9% 1.9 3.8 -15.6 22.3 60.2
Vanguard Consumer Staples VDC US MZUSI0CS 5.4% 5.3% 579.5 0.2% 4.0 2.3 0.2 -39.9 -59.6
Vanguard Energy VDE US MSCIEN 9.8% -2.3% 1,120.3 8.2% 16.4 7.0 -24.1 94.5 302.2
Vanguard Financials VFH US MZUSI0FN 6.2% 1.6% 501.3 -0.4% 6.6 5.5 9.0 -6.0 39.7
Vanguard Health Care VHT US MZUSI0HC 9.5% -0.5% 611.4 2.6% 0.3 1.9 0.0 12.8 -20.0
Vanguard Industrials VIS US MSCIIN 11.6% 10.6% 323.7 -3.5% 1.0 2.1 -5.7 -47.9 103.3
Vanguard Information Technology VGT US MZUSI0IT 12.5% 0.6% 1,268.3 29.7% 8.6 8.0 -10.8 282.8 408.7
Vanguard Materials VAW US MZUSI0MT 8.3% 3.4% 449.8 -8.3% 12.1 3.3 0.2 -56.4 203.1
Vanguard Telecommunication Services VOX US MSCITC 8.1% 5.9% 301.2 52.3% 5.9 3.5 33.9 73.3 15.2
Vanguard Utilities VPU US MZUSI0UT 2.9% 1.6% 607.1 32.3% 8.4 4.7 19.9 135.8 139.9
Vanguard REIT VNQ US RMZ 4.4% 19.6% 6,126.3 30.7% 127.2 112.7 265.0 714.4 1,825.2
S&P global sector ETFs 4,483.3 0.9% 46.4 25.4 22.1 99.6 1,120.5
iShares S&P Global Consumer Discretionary RXI US SGD 12.0% 11.5% 99.2 16.0% 0.0 0.5 -4.7 4.4 44.4
iShares S&P Global Consumers Staples KXI US SGCS 7.2% 8.3% 300.0 -4.5% 3.1 2.6 -5.6 -30.6 58.4
iShares S&P Global Energy IXC US SGES 10.1% -3.9% 1,139.5 5.1% 4.7 4.0 0.0 112.7 337.7
iShares S&P Global Financials IXG US SGFS 7.5% -1.4% 282.3 -15.2% 23.6 3.0 -4.1 -37.2 83.9
iShares S&P Global Healthcare IXJ US SGH 8.3% -0.2% 473.8 -10.8% 0.2 1.9 -7.5 -38.5 -110.0
iShares S&P Global Industrials EXI US SGN 12.2% 11.8% 180.5 16.3% 0.2 1.3 0.0 10.1 66.5
iShares S&P Global Materials MXI US SGM 11.4% 3.5% 853.5 -6.4% 2.4 3.6 0.0 -59.8 473.3
iShares S&P Global Technology IXN US SGI 11.6% 0.5% 535.3 18.0% 0.2 2.3 0.0 88.9 61.7
iShares S&P Global Telecommunications IXP US SGT 7.1% 8.2% 376.3 16.5% 4.8 4.5 28.3 40.4 52.8
iShares S&P Global Utilities JXI US SGU 3.8% -2.7% 243.0 -3.5% 7.2 1.9 15.7 9.2 51.7
MSCI ACWI ex. US sector ETFs 51.0 100.0% N/A 0.5 0.0 46.2 N/A
iShares MSCI ACWI ex US Consumer Discretionary AXDI US MSWDUCDN 13.1% 12.4% 6.0 100.0% N/A 0.1 0.0 5.3 N/A
iShares MSCI ACWI ex US Consumer Staples AXSL US MSWDUCSN 9.0% 10.8% 5.9 100.0% N/A 0.1 0.0 5.4 N/A
iShares MSCI ACWI ex US Energy AXEN US MSWDUENN 10.7% -5.0% 5.6 100.0% 0.0 0.1 0.0 5.1 N/A
iShares MSCI ACWI ex US Health Care AXHE US MSWDUHCN 7.4% 0.3% 5.5 100.0% 0.0 0.0 0.0 5.0 N/A
iShares MSCI ACWI ex US Industrials AXID US MSWDUINN 12.4% 10.8% 5.6 100.0% 0.0 0.1 0.0 5.0 N/A
iShares MSCI ACWI ex US Information Technology AXIT US MSWDUITN 10.9% 1.9% 5.4 100.0% 0.0 0.0 0.0 5.1 N/A
iShares MSCI ACWI ex US Materials AXMT US MSWDUMTN 12.4% 5.1% 6.0 100.0% 0.1 0.0 0.0 5.1 N/A
iShares MSCI ACWI ex US Telecommunication Services AXTE US MSWDUTCN 6.9% 7.0% 5.7 100.0% 0.0 0.1 0.0 5.1 N/A
iShares MSCI ACWI ex US Utilities AXUT US MSWDUUTN 4.0% -4.5% 5.3 100.0% 0.0 0.1 0.0 5.0 N/A
are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. NNA – Net New Assets. Data as at end Q3 2010.
Types of ETF exposure in the United States
Q3-10 YTD change

# AUM % # AUM %
Type of exposure ETFs (US$ Bn) total ETFs (US$ Bn) AUM
Large-cap - equity 18.4%
Equity 551 $605.9 76.0% 67 $47.6 8.5%
Large-cap 41 $146.9 18.4% 1 -$3.4 -2.3% Fixed income 16.7%
Emerging markets 87 $132.4 16.6% 23 $28.6 27.5% Emerging markets - equity 16.6%
International 162 $103.1 12.9% 14 $6.1 6.3% International - equity 12.9%
Sector 144 $76.7 9.6% 10 $4.5 6.2% Sector - equity 9.6%

Growth 30 $34.8 4.4% 3 -$0.5 -1.5% Growth - equity 4.4%
Value 30 $31.6 4.0% 3 $2.2 7.5% Value - equity 4%
Broad market 20 $29.3 3.7% 6 $5.1 20.9% Broad market - equity 3.7%
Mid-cap 15 $26.8 3.4% 3 $4.0 17.3% Mid-cap - equity 3.4%
Small-cap 22 $24.4 3.1% 4 $1.3 5.5%
Small-cap - equity 3.1%
Fixed income 102 $133.3 16.7% 17 $31.4 30.9%
Custom 2%
Custom 56 $16.2 2.0% -2 $7.1 78.3%
Leveraged inverse 2%
Leveraged inverse 61 $15.8 2.0% 7 $1.2 8.1%
Commodities 1.3%
Commodities 18 $10.0 1.3% 7 $3.1 44.7%
Leveraged 1.2%
Leveraged 62 $9.7 1.2% 14 -$1.2 -10.6%
Inverse 0.6%
Inverse 15 $4.4 0.6% 4 $1.6 56.0%
Currency 0.2%
Currency 9 $1.3 0.2% 1 $0.4 41.9%
Active 16 $0.6 0.1% 3 $0.4 361.9% Active 0.1%
Total 890 $797.2 100.0% 118 $91.7 13.0%

Index providers in the United States: ranked by AUM
Q3-10 YTD change

MSCI 29.2%
# AUM % # AUM %
S&P 28.2%
MSCI 113 $232.9 29.2% 26 $34.9 17.6% Barclays Capital 13.3%
S&P 171 $224.7 28.2% 21 $6.9 3.2% Russell 8.5%

Barclays Capital 62 $105.7 13.3% 10 $24.5 30.1% Dow Jones 4.5%
Russell 60 $68.1 8.5% 9 $2.5 3.7%
NASDAQ OMX 3.3%
Dow Jones 90 $36.2 4.5% 5 -$0.5 -1.3%
Markit 2.7%
NASDAQ OMX 27 $26.5 3.3% 4 $3.7 16.3%
FTSE 2.6%
Markit 2 $21.8 2.7% 0 $4.4 25.6%
FTSE 48 $20.6 2.6% 10 $2.0 10.7% NYSE Euronext 1%
NYSE Euronext 10 $8.2 1.0% 2 $2.0 33.2% WisdomTree 0.9%

WisdomTree 35 $7.1 0.9% -10 $1.3 22.4% Indxis 0.6%
Indxis 6 $4.4 0.6% 0 $1.8 70.7% Deutsche Boerse 0.5%
Deutsche Boerse 3 $4.1 0.5% 0 $0.5 15.0%
Intellidex 0.3%
Intellidex 37 $2.3 0.3% 0 -$0.2 -8.6%
BNY Mellon 0.3%
BNY Mellon 10 $2.2 0.3% 0 $0.2 9.0%
Morningstar 0.2%
Morningstar 10 $1.7 0.2% 0 $0.0 -0.9%
S-Network 12 $1.1 0.1% 2 $0.0 -0.7% S-Network 0.1%
Zacks 11 $0.6 0.1% -2 $0.1 18.2% Zacks 0.1%

Value Line 3 $0.2 0.0% -2 -$0.1 -17.1% Value Line 0%
STOXX 3 $0.2 0.0% 0 $0.0 -15.3%
STOXX 0%
Other 177 $28.5 3.6% 43 $7.7 37.2%
Other 3.6%
Total 890 $797.2 100.0% 118 $91.7 13.0%

Top 20 ETFs in the United States
ADV ADV
Bloomberg AUM (‘000 ADV Bloomberg ADV (‘000 AUM
ETF ticker (US$ Mn) shares) (US$ Mn) ETF ticker (US$ Mn) shares) (US$ Mn)
SPDR S&P 500 SPY US $78,243.9 182,428 $20,513.7 SPDR S&P 500 SPY US $20,513.7 182,428 $78,243.9
iShares MSCI Emerging Markets EEM US $44,906.1 48,380 $2,084.1 iShares Russell 2000 IWM US $3,726.1 57,084 $13,185.5
Vanguard Emerging Markets VWO US $36,107.6 11,537 $505.6 PowerShares QQQ Trust QQQQ US $3,287.9 68,801 $22,249.5
iShares MSCI EAFE EFA US $35,123.5 18,666 $1,005.4 iShares MSCI Emerging Markets EEM US $2,084.1 48,380 $44,906.1
iShares S&P 500 IVV US $22,747.8 2,843 $320.8 iShares MSCI Brazil EWZ US $1,193.3 16,336 $10,512.5
PowerShares QQQ Trust QQQQ US $22,249.5 68,801 $3,287.9 iShares MSCI EAFE EFA US $1,005.4 18,666 $35,123.5
iShares Barclays TIPS Bond Fund TIP US $20,373.5 749 $81.1 Financial Select Sector SPDR Fund XLF US $969.8 66,945 $5,255.8
iShares iBoxx $ Investment Grade Corporate LQD US $14,874.4 1,110 $123.9 ProShares UltraShort S&P500 SDS US $891.0 28,965 $3,433.4
Vanguard Total Stock Market ETF VTI US $14,660.3 1,896 $109.0 iShares Barclays 20+ Year Treasury TLT US $858.4 8,272 $2,987.9
iShares Russell 2000 IWM US $13,185.5 57,084 $3,726.1 Energy Select Sector SPDR Fund XLE US $759.0 13,896 $6,583.3
iShares Barclays Aggregate Bond Fund AGG US $12,814.6 874 $94.6 Direxion Daily Financial Bull 3x Shares FAS US $695.4 32,206 $1,690.3
iShares Russell 1000 Growth IWF US $10,870.0 2,828 $142.2 iShares FTSE/Xinhua China 25 FXI US $692.2 16,590 $8,509.8
iShares MSCI Brazil EWZ US $10,512.5 16,336 $1,193.3 Direxion Daily Small Cap Bear 3x Shares TZA US $673.5 22,835 $985.4
S&P 400 MidCap SPDR MDY US $10,384.3 2,925 $414.2 SPDR DJ Industrial Average ETF DIA US $613.8 5,780 $8,084.6
Vanguard Total Bond Market ETF BND US $9,072.2 587 $48.3 Direxion Daily Financial Bear 3x Shares FAZ US $593.9 44,137 $1,295.9
iShares Russell 1000 Value IWD US $8,773.4 1,708 $100.2 iShares Dow Jones U.S. Real Estate IYR US $536.4 10,039 $2,991.5
iShares Barclays 1-3 Year Treasury SHY US $8,604.7 1,100 $92.7 ProShares Ultra S&P500 SSO US $526.8 13,805 $1,395.2
iShares FTSE/Xinhua China 25 FXI US $8,509.8 16,590 $692.2 Direxion Daily Small Cap Bull 3x Shares TNA US $509.0 12,032 $461.0
SPDR DJ Industrial Average ETF DIA US $8,084.6 5,780 $613.8 Vanguard Emerging Markets VWO US $505.6 11,537 $36,107.6
iShares S&P MidCap 400 IJH US $7,738.1 911 $71.1 Industrial Select Sector SPDR Fund XLI US $473.2 15,452 $2,941.4

Average expenses of ETFs versus open-end mutual funds in the United States
Average TER(s)
Average TER (bps)

ETFs 1
Active 57
Broad market – equity 18
Commodities 57
Currency 48
Custom 44
Fixed income 22
Growth – equity 21
International – equity 42
Inverse 95
Large-cap – equity 13
Leveraged 95
Leveraged inverse 95
Mid-cap – equity 22
Sector – equity 32
Small-cap – equity 21
Value – equity 21
Total – equity ETFs 34
Total – fixed income ETFs 25
Total – all 33
Open-end mutual funds2

Passive/indexed domestic equity 93
Passive/indexed international equity 83
Passive/indexed fixed income 40
Actively managed domestic equity 146
Actively managed international equity 160
Actively managed fixed income 105
1. As at end February 2010.

2. Captured from Morningstar on 15 March 2010.
Source: Morningstar, Global ETF Research and Implementation Strategy Team, BlackRock.
Short interest: United States listed ETF and HOLDRS short interest
The rules on shorting ETFs on financial indices and the use of inverse and leveraged inverse ETFs on financial indices in the various markets are
continually being updated as regulators react to market conditions and the actions of other regulators – so the position is quite fluid.
Short interest % of shares S&P 500 On 26 February 2010 the SEC approved a new rule that places restrictions on short selling a
Date (Mn shares) outstanding Index Level security when it has experienced a price decline of at least 10% in a single day. If this level is
2003 avg 812 27.1% 983
reached, short selling is only allowed if the price of the security is above the current national best
bid.
2004 avg 952 26.3% 1,127
Short interest in United States listed ETFs have reached the highest ever during 2010.
2005 avg 781 17.2% 1,206
• Based on data through September 2010 the average number of ETF shares short during
2006 avg 837 13.5% 1,283 2010 YTD reached an all time high of 1,735 Mn shares, with an average of 1,653 Mn in
2009 and 1,693 Mn in 2008. The September 2010 short interest level for United States-
2007 avg 1,242 16.1% 1,475
listed ETFs was 11.1% of shares outstanding or 1,811 Mn shares, up 4.4% from 1,735
2008 avg 1,693 17.0% 1,209 Mn in December 2009.
2009 avg 1,653 12.4% 948 Investors are using ETFs for long/short and hedging strategies.
• At the end of Q3 2010, there were 890 ETFs listed in the United States and 2,379 ETFs
worldwide, which provide exposure to equity sectors, styles, countries and regional
Jan-10 1,522 9.9% 1,138 indices as well as fixed income, commodity indices
Feb-10 1,746 11.3% 1,095 and currencies.
Security lending revenue on ETFs can be attractive.
Mar-10 1,741 11.3% 1,151
• For investors who own ETF shares, the lending revenue that can be earned on ETFs,
Apr-10 1,663 10.8% 1,212
may at times, and for some ETFs, more than cover the annual Total Expense Ratio
May-10 1,780 12.3% 1,136 (TER).
Jun-10 1,868 11.9% 1,115 Short interest is often considered an indication of the level of scepticism in
the market.
Jul-10 1,759 11.4% 1,096
• Short interest data is captured for United States listed securities on the 15th of each
Aug-10 1,721 10.9% 1,049 month or the next business day and reflects the number of shares that have yet to be
Sep-10 1,811 11.1% 1,141 repurchased to give back to lenders. The higher the short interest, the more investors are
expecting a downturn. Short positions fall in value as stocks rise, and vice versa.
2010 avg YTD 1,735 11.2% 1,126
Note: With short sales the investor risks paying more for a security than the investor received from its sale.
Data as at mid September 2010.
Source: Regulatory Notice 09-31, Financial Industry Regulatory Authority, SEC, Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.
Short interest: top 20 United States listed ETFs and HOLDRS based on short interest
Shares Short
Bloomberg Short interest outstanding interest ratio
Name ticker (000’shares) (000’ shares) (%)
SPDR S&P 500 SPY US 318,531 683,532 46.6%
iShares Russell 2000 Index Fund IWM US 220,365 194,850 113.1%
PowerShares QQQ Trust QQQQ US 140,754 451,400 31.2%
Financial Select Sector SPDR Fund XLF US 132,194 365,745 36.1%
SPDR S&P Retail ETF XRT US 66,151 14,000 472.5%
iShares Dow Jones U.S. Real Estate Index Fund IYR US 57,011 56,700 100.5%
SPDR KBW Regional Banking ETF KRE US 53,838 23,503 229.1%
iShares MSCI Emerging Markets Index Fund EEM US 46,999 1,008,900 4.7%
Semiconductor HOLDRS SMH US 43,863 20,847 210.4%
iShares MSCI EAFE Index Fund EFA US 42,501 634,800 6.7%
iShares FTSE/Xinhua China 25 Index Fund FXI US 38,119 199,200 19.1%
Energy Select Sector SPDR Fund XLE US 33,762 117,474 28.7%
Technology Select Sector SPDR Fund XLK US 30,790 190,906 16.1%
Consumer Discretionary Select Sector SPDR Fund XLY US 28,730 51,503 55.8%
SPDR S&P Oil & Gas Exploration & Production ETF XOP US 27,630 12,150 227.4%
Health Care Select Sector SPDR Fund XLV US 25,641 91,815 27.9%
Industrial Select Sector SPDR Fund XLI US 25,329 93,676 27.0%
iShares MSCI Japan Index Fund EWJ US 20,171 405,000 5.0%
Materials Select Sector SPDR Trust XLB US 19,525 63,574 30.7%
iShares MSCI Brazil Index Fund EWZ US 18,383 138,050 13.3%
Data as at mid September 2010.

ETP providers in the United States: ranked by assets
Q3-10 YTD change

Sep-10
# Assets % # NNA YTD NNA # % Assets % % market
Provider ETPs (US$ Bn) total planned (US$ Bn) (US$ Bn) ETPs ETPs (US$ Bn) assets share
State Street Global Advisors 1 $54.9 52.2% 0 $0.1 $6.8 0 0.0% $15.2 38.1% 7.1%
iShares 4 $12.7 12.1% 1 $0.5 $1.0 0 0.0% $3.0 30.9% 1.1%
Deutsche Bank 36 $10.4 9.9% 2 -$0.2 -$3.1 2 5.9% -$3.1 -23.1% -5.5%
Barclays (iPath) 38 $8.2 7.8% 25 $1.0 $2.8 8 26.7% $2.2 37.7% 1.0%
United States Commodity Funds 9 $4.8 4.5% 1 $0.1 -$1.0 2 28.6% -$2.8 -36.6% -4.0%
Merrill Lynch 17 $4.6 4.4% 0 -$0.2 -$0.5 0 0.0% -$0.6 -12.2% -1.6%
Rydex SGI 9 $2.5 2.4% 13 -$0.1 -$0.2 0 0.0% -$0.2 -6.0% -0.6%
ETF Securities 4 $2.2 2.1% 20 $0.2 $1.4 2 100.0% $1.7 350.5% 1.5%
JPMorgan Chase 2 $1.6 1.5% 0 $0.0 $0.7 0 0.0% $0.9 123.1% 0.7%
ProShares 12 $1.5 1.4% 38 -$0.1 $0.3 0 0.0% $0.4 42.0% 0.2%
Swedish Export Credit Corp 7 $0.9 0.9% 0 $0.0 $0.0 0 0.0% $0.0 2.3% -0.1%
GreenHaven Commodity Services 1 $0.3 0.3% 0 $0.0 $0.1 0 0.0% $0.1 35.7% 0.0%
Barclays Capital 10 $0.1 0.1% 0 $0.1 $0.1 2 25.0% $0.1 144.3% 0.1%
Morgan Stanley 4 $0.1 0.1% 0 $0.0 $0.0 0 0.0% $0.0 36.6% 0.0%
Credit Suisse 3 $0.1 0.1% 0 $0.0 $0.1 2 200.0% $0.1 2801.9% 0.1%
Goldman Sachs 2 $0.1 0.1% 0 $0.0 $0.0 0 0.0% $0.0 -3.4% 0.0%
HSBC USA 1 $0.1 0.1% 0 $0.0 $0.0 0 0.0% $0.0 -22.5% 0.0%
Teucrium Trading 1 $0.0 0.0% 0 $0.0 $0.0 1 100.0% $0.0 0.0% 0.0%
Guggenheim Funds - - - 2 - - - - - - -
Jefferies Asset Management - - - 2 - -
Sprott Asset Management - - - 1 - - - - - - -
WealthNotes Capital Management - - - 1 - - - - - - -
Total 161 $105.1 100.0% 106 $1.5 $8.4 19 13.4% $17.0 19.3%

ETFs listed in Europe
At the end of Q3 2010 the European ETF industry had 1,030 ETFs with 3,396 listings, assets of US$256.2 Bn, from 37 providers on
21 exchanges.
Assets
• YTD assets have increased by 12.9% from US$226.9 Bn to US$256.2 Bn, compared to the 3.1% fall in the MSCI Europe Index in US
dollar terms.
• In September 2010, net new assets into European domiciled ETFs/ETPs totalled US$5.0 Bn. Equity ETFs/ETPs gathered US$3.9 Bn net
inflows, of which US$1.8 Bn went into emerging markets equity ETFs/ETPs and US$1.1 Bn into European equity ETFs/ETPs. Fixed
income ETFs/ETPs saw net inflows of US$0.4 Bn, of which US$0.8 Bn went into government bond ETFs/ETPs while money market
ETFs/ETPs saw net outflows of US$0.7 Bn. Commodity ETFs/ETPs saw net inflows of US$0.7 Bn, of which US$0.6 Bn went into
precious metals ETFs/ETPs while agriculture ETFs/ETPs saw net outflows of US$0.2 Bn.
• YTD, net new assets into European domiciled ETFs/ETPs totalled US$34.3 Bn. Equity based ETFs/ETPs gathered US$18.7 Bn net
inflows, of which US$7.5 Bn went into emerging markets equity ETFs/ETPs and US$3.7 Bn into European equity ETFs/ETPs. Fixed
income ETFs/ETPs saw US$7.4 Bn net inflows, of which US$6.0 Bn went into government bond ETFs/ETPs and US$2.4 Bn into
corporate bond ETFs/ETPs. Commodity ETFs/ETPs saw US$7.4 Bn net inflows, of which US$6.0 Bn went into precious metals
ETFs/ETPs and US$0.8 Bn into energy ETFs/ETPs YTD.
ETFs
• YTD the number of ETFs increased by 24.5% with 212 new ETFs launched, while nine ETFs were delisted.
• The top 100 ETFs, out of 1,030, account for 66.1% of European ETF AUM, while 541 ETFs have less than US$50.0 Mn in assets and
• 11 April 2010 marked the 10th anniversary of ETFs in Europe.
Trading volume
• YTD the ETF average daily trading volume in US dollars increased by 12.7% to US$3.0 Bn. Most ETF trades are not required to be
reported in Europe as ETFs are not covered by the European Union directive on markets in financial instruments (MiFID).
• In September 2010, reported European ETF turnover was 9.1% of all European equity turnover, greater than the 8.6% in
December 2009.
ETFs listed in Europe (continued)
Exchanges
• YTD the number of exchanges with official listings has increased from 18 to 21.
ETF providers
• iShares is the largest ETF provider in terms of both number of products, 176 ETFs, and assets of US$91.9 Bn, reflecting 35.9% market
share; Lyxor Asset Management is second with 147 products and US$47.2 Bn, 18.4% market share; followed by db x-trackers with
135 ETFs, assets of US$42.9 Bn and 16.7% market share at the end of Q3 2010.
• In September 2010, net new assets into European domiciled ETFs totalled US$4.8 Bn. db x-trackers has received the largest net inflows
with US$2.2 Bn, followed by iShares with US$1.0 Bn net inflows, while Lyxor Asset Management had the largest net outflows with
US$0.1 Bn.
• YTD, net new assets into European domiciled ETFs totalled US$30.8 Bn. iShares has received the largest net inflows with US$7.5 Bn net
new assets, followed by db x-trackers with US$5.3 Bn net inflows, and Source Markets with US$3.2 Bn net inflows YTD.
• The top three ETF providers, out of 37, account for 71.0% of European ETF AUM.
Mutual funds
• In Europe net sales of mutual funds (excluding ETFs) were US$79.7 Bn while net sales of ETFs domiciled in Europe were US$21.3 Bn
during the first seven months of 2010 according to Lipper FMI.
ETPs
• Additionally, there were 389 other Exchange Traded Products (ETPs)1 with 889 listings and assets of US$24.4 Bn from nine providers on
six exchanges.
ETFs and ETPs
• Combined, there were 1,419 products with 4,285 listings and assets of US$280.6 Bn from 42 providers on
21 exchanges in Europe.
European ETF and ETP growth
300 1,200
250 1,000
200 800
150 600
100 400
50 200
0 0
Assets (US$ Bn) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF total $0.7 $5.7 $10.7 $20.4 $34.0 $54.9 $89.7 $128.5 $142.7 $226.9 $256.2
ETF commodity $0.4 $2.0 $3.3 $4.9 $15.2 $22.0
ETF fixed income $1.0 $2.9 $5.2 $12.1 $21.0 $41.1 $51.6 $58.1
ETF equity $0.7 $5.7 $10.7 $19.4 $31.0 $49.3 $75.7 $103.5 $96.6 $159.8 $173.9
ETP total $1.1 $2.1 $4.9 $7.0 $15.7 $24.4
# ETFs 6 71 118 104 114 165 273 423 636 827 1,030
# ETPs 2 32 56 123 178 389

Top 25 ETF/ETP providers in Europe: ranked by assets
Q3-10 YTD change

Sep-10
# ETFs/ # total Assets % # NNA YTD NNA # ETFs/ % ETFs/ Assets % % market
Provider ETPs listings (US$ Bn) total planned (US$ Bn) (US$ Bn) ETPs ETPs (US$ Bn) assets share
iShares 176 755 $91.9 32.7% 8 $1.0 $7.5 8 4.8% $6.1 7.1% -2.6%
Lyxor Asset Management 147 567 $47.2 16.8% 0 -$0.1 $2.9 24 19.5% $1.6 3.5% -2.0%
db x-trackers 135 531 $42.9 15.3% 15 $2.2 $5.3 19 16.4% $5.7 15.3% -0.1%
ETF Securities 212 714 $19.2 6.8% 34 $0.0 $2.3 44 26.2% $3.7 23.9% 0.5%
Credit Suisse Asset Management 54 226 $13.3 4.7% 0 $0.6 $3.1 27 100.0% $3.6 37.7% 0.8%
Zurich Cantonal Bank 7 12 $10.2 3.6% 0 $0.2 $1.9 3 75.0% $3.5 51.8% 0.9%
Commerzbank 86 323 $7.4 2.6% 0 $0.1 $1.4 24 38.7% $1.2 18.8% 0.1%
Source Markets 80 107 $7.0 2.5% 19 $0.4 $3.4 20 33.3% $3.8 116.7% 1.2%
Amundi ETF 87 235 $6.8 2.4% 0 $0.1 $2.1 24 38.1% $2.0 41.4% 0.4%
UBS Global Asset Management 91 180 $5.8 2.1% 12 $0.2 $2.5 77 550.0% $2.3 65.8% 0.6%
ETFlab Investment 35 54 $5.7 2.0% 0 -$0.1 -$0.4 4 12.9% -$1.3 -19.0% -0.9%
EasyETF 64 105 $5.5 2.0% 0 -$0.1 -$0.2 0 0.0% -$0.3 -5.5% -0.4%
Swiss & Global Asset Management 16 32 $3.9 1.4% 0 $0.0 $1.2 12 300.0% $1.8 84.3% 0.5%
Societe Generale 42 43 $3.5 1.3% 0 $0.0 N/A 42 100.0% $3.5 100.0% 1.3%
XACT Fonder 20 24 $2.9 1.0% 0 $0.1 $0.1 8 66.7% $0.2 9.1% -0.1%
BBVA Asset Management 8 8 $1.3 0.5% 0 $0.0 $0.0 0 0.0% -$1.0 -43.7% -0.5%
RBS 28 88 $1.1 0.4% 21 $0.0 $0.3 18 180.0% $0.4 49.6% 0.1%
State Street Global Advisors 13 37 $1.1 0.4% 0 $0.0 -$0.3 0 0.0% -$0.3 -23.5% -0.2%
PowerShares 19 66 $1.1 0.4% 1 $0.0 $0.0 0 0.0% $0.1 6.7% 0.0%
Deutsche Bank 29 40 $0.9 0.3% 0 $0.3 $0.8 29 100.0% $0.9 100.0% 0.3%
HSBC 11 23 $0.4 0.1% 9 $0.1 $0.3 8 266.7% $0.3 411.3% 0.1%
Marshall Wace Asset Management 3 4 $0.4 0.1% 0 $0.0 $0.4 3 100.0% $0.4 100.0% 0.1%
Seligson & Co Fund Management 1 1 $0.2 0.1% 0 $0.0 $0.0 0 0.0% $0.0 -4.7% 0.0%
Lyxor 3 5 $0.2 0.1% 0 N/A N/A 0 0.0% $0.1 133.3% 0.0%
DnB NOR Asset Management 3 5 $0.2 0.1% 0 $0.0 $0.0 0 0.0% -$0.1 -32.1% -0.1%

ETF providers in Europe: ranked by AUM
Q3-10 Sep-10 YTD change

# # total AUM % # NNA YTD NNA # % AUM % % market
Provider ETFs listings (US$ Bn) total planned (US$ Bn) (US$ Bn) ETFs ETFs (US$ Bn) assets share
iShares 176 754 $91.9 35.9% 8 $1.0 $7.5 8 4.8% $6.1 7.1% -1.9%
Lyxor Asset Management 147 567 $47.2 18.4% 0 -$0.1 $2.9 24 19.5% $1.6 3.5% -1.7%
db x-trackers 135 531 $42.9 16.7% 15 $2.2 $5.3 19 16.4% $5.7 15.3% 0.3%
Credit Suisse Asset Management 54 226 $13.3 5.2% 0 $0.6 $3.1 27 100.0% $3.6 37.7% 0.9%
Zurich Cantonal Bank 7 12 $10.2 4.0% 0 $0.2 $1.9 3 75.0% $3.5 51.8% 1.0%
Commerzbank 86 323 $7.4 2.9% 0 $0.1 $1.4 24 38.7% $1.2 18.8% 0.1%
Amundi ETF 87 235 $6.8 2.6% 0 $0.1 $2.1 24 38.1% $2.0 41.4% 0.5%
Source Markets 52 52 $6.3 2.5% 19 $0.5 $3.2 20 62.5% $3.5 123.7% 1.2%
ETFlab Investment 35 54 $5.7 2.2% 0 -$0.1 -$0.4 4 12.9% -$1.3 -19.0% -0.9%
EasyETF 64 105 $5.5 2.2% 0 -$0.1 -$0.2 0 0.0% -$0.3 -5.5% -0.4%
Swiss & Global Asset Management 16 32 $3.9 1.5% 0 $0.0 $1.2 12 300.0% $1.8 84.3% 0.6%
XACT Fonder 20 24 $2.9 1.1% 0 $0.1 $0.1 8 66.7% $0.2 9.1% 0.0%
BBVA Asset Management 8 8 $1.3 0.5% 0 $0.0 $0.0 0 0.0% -$1.0 -43.7% -0.5%
State Street Global Advisors 13 36 $1.1 0.4% 0 $0.0 -$0.3 0 0.0% -$0.3 -23.5% -0.2%
PowerShares 19 66 $1.1 0.4% 1 $0.0 $0.0 0 0.0% $0.1 6.7% 0.0%
RBS 10 55 $1.0 0.4% 21 $0.0 $0.1 0 0.0% $0.2 27.6% 0.0%
ETF Securities 25 107 $0.6 0.2% 2 $0.1 $0.3 4 19.0% $0.3 83.1% 0.1%
HSBC 11 23 $0.4 0.2% 9 $0.1 $0.3 8 266.7% $0.3 411.3% 0.1%
Marshall Wace Asset Management 3 4 $0.4 0.1% 0 $0.0 $0.4 3 100.0% $0.4 100.0% 0.1%
Seligson & Co Fund Management 1 1 $0.2 0.1% 0 $0.0 $0.0 0 0.0% $0.0 -4.7% 0.0%
DnB NOR Asset Management 3 5 $0.2 0.1% 0 $0.0 $0.0 0 0.0% -$0.1 -32.1% -0.1%
Finans Portfoy Yonetimi 6 6 $0.1 0.0% 0 $0.0 -$0.1 0 0.0% $0.0 -20.4% 0.0%
JP Morgan Mansart Investments 6 12 $0.1 0.0% 0 $0.0 -$0.1 0 0.0% -$0.1 -46.9% 0.0%

continued…
ETF providers in Europe: ranked by AUM (continued)
Q3-10 Sep-10 YTD change

# # total AUM % # NNA YTD NNA # % AUM % % market
Provider ETFs listings (US$ Bn) total planned (US$ Bn) (US$ Bn) ETFs ETFs (US$ Bn) assets share
Alpha Asset Management 1 1 $0.1 0.0% 0 $0.0 $0.0 0 0.0% $0.0 -38.8% 0.0%
HQ Fonder 7 7 $0.0 0.0% 0 $0.0 $0.0 4 133.3% $0.0 0.0% 0.0%
NCB Investment Services 1 1 $0.0 0.0% 0 $0.0 $0.0 0 0.0% $0.0 -24.6% 0.0%
Is Investment 2 2 $0.0 0.0% 0 $0.0 -$0.1 0 0.0% $0.0 142.4% 0.0%
OTP Fund Management 1 1 $0.0 0.0% 0 $0.0 $0.0 0 0.0% $0.0 -2.0% 0.0%
Osmosis Investment Management 1 2 $0.0 0.0% 0 $0.0 $0.0 1 100.0% $0.0 0.0% 0.0%
Medvesek Pusnik AM 1 1 $0.0 0.0% 0 $0.0 $0.0 0 0.0% $0.0 6.1% 0.0%
NBG Asset Management 1 1 $0.0 0.0% 1 $0.0 $0.0 0 0.0% $0.0 0.0% 0.0%
Bizim Menkul Degerler 1 1 $0.0 0.0% 0 $0.0 $0.0 0 0.0% $0.0 -0.2% 0.0%
Think Capital 5 5 $0.0 0.0% 0 $0.0 $0.0 0 0.0% $0.0 418.0% 0.0%
Troika Dialog Asset Management 1 1 $0.0 0.0% 0 $0.0 $0.0 1 100.0% $0.0 0.0% 0.0%
Garanti Bank 1 1 $0.0 0.0% 0 $0.0 $0.0 1 100.0% $0.0 0.0% 0.0%
Kuveyt Turk Katilim Bankasi 1 1 $0.0 0.0% 0 $0.0 $0.0 1 100.0% $0.0 0.0% 0.0%
Ak Securities 0 0 $0.0 0.0% 0 $0.0 $0.0 -1 -100.0% $0.0 -100.0% 0.0%
Direxion Shares - 12 - - - - - - - - - -
ProShares - 8 - - - - - - - - - -
Van Eck Associates Corp - 1 - - - - - - - - - -
Vanguard - 1 - - - - - - - - - -
Barclays Wealth - - - - 5 - - - - - - -
Hinduja Bank (Switzerland) - - - - 1 - - - - - - -
Qbasis Invest - - - - 1 - - - - - - -
Total 1,030 3,396 $256.2 100.0% 92 $4.8 $30.8 203 24.5% $29.3 12.9%

European ETF/ETP net new assets by type of exposure
Sep-10

Equity 783 2,513.0 174,573.1 3,873.9 18,695.7 32,725.0
Europe – equity 460 1,876.6 102,606.8 1,117.2 3,714.5 18,205.5
Broad 281 1,503.0 89,875.0 691.8 3,220.6 14,818.5
Consumer goods/services 41 39.6 1,627.3 (53.1) 18.8 335.4
Energy 12 10.3 942.8 (13.8) (50.2) 322.1
Financials 28 121.5 2,884.0 35.8 75.0 825.5
Healthcare 12 15.2 1,064.7 37.9 (20.9) 145.9
Industrials 13 35.2 614.8 (22.6) 72.4 136.6
Information technology 12 4.0 374.1 (3.0) (4.8) 12.4
Materials 21 95.5 1,791.2 309.0 131.4 522.5
Private equity 1 0.4 105.4 0.7 45.5 34.2
Real estate 12 13.5 1,813.5 115.6 387.7 333.6
Telecommunications 11 24.9 807.5 38.1 (127.6) 425.0
Utilities 11 12.2 656.5 37.8 (27.3) 361.3
Other 5 1.2 49.9 (57.0) (6.0) (67.4)
North America – equity 79 137.7 17,795.3 369.0 3,226.9 1,561.5
Asia Pacific – equity 59 82.3 11,002.1 262.7 2,106.5 2,662.0
Global – equity 66 91.2 11,289.2 350.3 2,106.5 2,799.6
continued…

European ETF/ETP net new assets by type of exposure (continued)
Sep-10

Emerging markets – equity 119 325.1 31,879.7 1,774.8 7,541.2 7,496.4
Broad – emerging markets 24 107.1 15,322.8 801.3 4,765.9 3,665.0
Regional – emerging markets 21 32.0 3,306.6 232.2 489.1 778.8
Country – emerging markets 74 186.0 13,250.3 741.3 2,286.2 3,052.7
Brazil 9 29.1 2,592.3 46.6 151.5 811.2
Chile 1 0.5 30.9 26.9 29.9 -
China 11 34.1 2,981.3 51.1 79.7 862.9
Egypt 1 0.1 13.1 - 6.4 (5.2)
Hungary 1 0.0 18.2 - (0.5) (0.3)
India 7 32.5 2,957.6 164.9 469.8 616.3
Indonesia 0 0.6 - - - -
Kuwait 2 0.2 40.1 (12.7) 2.8 14.5
Malaysia 1 2.5 117.5 26.4 78.2 10.1
Mexico 2 0.4 37.1 28.6 36.4 -
Poland 1 0.2 81.9 77.5 77.5 -
Russia 9 17.1 1,509.3 31.1 526.2 174.2
South Africa 6 4.5 268.3 (1.9) 58.5 64.3
South Korea 5 16.8 1,018.5 114.8 466.6 152.3
Taiwan 5 5.8 587.0 61.1 145.3 137.7
Thailand 0 - - - - 30.5
Turkey 11 39.9 794.4 100.0 87.7 113.3
UAE 1 0.0 0.8 (11.8) (10.6) 7.2
Vietnam 1 1.8 202.0 38.8 80.6 63.6
continued…
European ETF/ETP net new assets by type of exposure (continued)
Sep-10

Fixed income 183 403.7 58,102.9 389.1 7,434.0 9,453.3
Broad 1 2.8 330.9 3.3 210.2 102.3
Corporate 13 67.8 11,320.0 208.8 2,441.9 4,770.8
Covered 8 1.6 1,064.2 71.3 370.0 438.4
Credit spreads 13 9.4 805.4 26.4 (88.7) (291.1)
Government 117 230.8 32,214.1 751.8 5,972.2 6,193.2
High yield 1 3.4 98.9 99.8 99.8 -
Inflation 15 27.9 4,119.3 (36.9) (259.1) 2,365.8
Money market 14 55.3 6,297.5 (735.4) (1,450.6) (4,518.2)
Mortgage 1 4.8 1,852.6 - 138.2 392.1
Commodities 380 305.8 45,935.3 666.5 7,424.9 13,657.9
Broad 57 23.1 5,771.6 69.0 690.8 2,985.9
Agriculture 83 29.4 3,300.1 (237.3) (275.0) 1,294.3
Energy 75 34.0 3,407.7 187.6 755.7 1,834.2
Industrial metals 55 11.0 1,539.9 43.5 227.7 343.5
Livestock 17 0.7 77.5 (0.4) 1.9 29.4
Precious metals 93 207.7 31,838.5 604.0 6,023.8 7,170.7
Currency 62 7.7 482.1 16.2 228.2 190.7
Alternative 10 15.4 1,484.1 53.4 519.9 898.6
Mixed 1 0.3 94.0 - 18.5 14.8
Total 1,419 3,245.9 280,671.4 4,999.1 34,321.1 56,940.3

European leveraged and inverse ETF/ETP net new assets by type of exposure
Sep-10

Leveraged 63 236.2 3,019.0 (186.2) 517.1 1,229.8
Equity 30 220.9 2,202.1 (264.3) 92.9 765.4
Europe – equity 27 219.0 2,146.4 (267.7) 75.3 751.6
North America – equity 3 1.9 55.7 3.3 17.6 13.7
Commodities 33 15.3 816.9 78.1 424.2 464.5
Inverse 117 139.5 5,019.7 89.2 1,377.8 2,763.1
Equity 35 120.0 2,961.9 82.0 447.6 1,713.6
Asia Pacific – equity 1 0.3 10.4 (4.9) 6.5 8.6
Europe – equity 32 112.4 2,696.5 72.9 353.0 1,537.4
North America – equity 2 7.2 254.9 14.0 88.1 167.6
Commodities 35 10.3 386.4 (42.5) 58.8 197.7
Currency 29 5.6 116.5 43.4 102.0 22.5
Fixed income 17 3.6 1,546.5 6.3 788.3 801.4
Alternative 1 0.0 8.4 - (18.8) 27.9
Leveraged inverse 23 228.6 1,901.0 374.4 788.2 958.1
Equity 22 212.9 1,696.3 320.7 589.0 958.1
Europe – equity 21 212.1 1,683.6 319.2 577.0 958.1
North America – equity 1 0.8 12.7 1.5 12.0 -
Fixed income 1 15.6 204.7 53.7 199.2 -
Total 203 604.3 9,939.6 277.4 2,683.2 4,951.0

STOXX 600 Sector ETF net flows: week ending 1 October 2010
• The week ending 1 October saw US$551.0 Mn net inflows to STOXX • Year-to-date, STOXX Europe 600 sector ETFs have seen US$278.9 Mn
Europe 600 sector ETFs. net inflows.
• The largest sector ETF net inflows in the week ending 1 October were in • Media sector ETFs have seen the largest net inflows with US$159.5 Mn,
banks with US$205.7 Mn, followed by basic resources with US$202.5 Mn, followed by banks with US$154.2 Mn, while food and beverage has
while food and beverage experienced net outflows of US$82.9 Mn. experienced the largest net outflows of US$175.4 Mn YTD.
US$ total Futures ETF AUM ETF
STOXX 600 return performance open (US$ Mn) 5-day
# % interest YTD % ADV Weekly net flows MTD ETF net flows YTD ETF net flows
Sector Ticker stocks weight Weekly Rank YTD Rank (US$ Mn) 01-Oct change (US$ Mn) (US$ Mn) (US$ Mn) (US$ Mn)
Automobiles and parts SXAR 14 2.1% -0.7% 17 16.5% 1 200.8 265.2 19.0% 2.1 -17.6 1.2 3.2
Banks SX7R 53 16.0% -2.6% 19 -8.2% 16 441.5 1,515.4 -0.3% 11.4 205.7 3.0 154.2
Basic resources SXPR 30 5.3% 1.6% 4 2.2% 12 374.1 1,456.6 7.2% 14.2 202.5 -3.9 119.4
Chemicals SX4R 22 4.1% 0.4% 9 3.5% 10 89.3 234.3 4.2% 2.7 30.3 13.5 9.9
Construction and materials SXOR 26 2.6% 0.2% 10 -13.6% 19 63.8 150.9 -20.7% 2.3 21.4 0.2 -7.3
Financial services SXFR 30 1.5% 0.4% 8 1.0% 13 8.7 75.7 -4.7% 0.5 0.0 0.0 -2.8
Food and beverage SX3R 28 7.0% 0.7% 5 7.6% 6 192.8 369.1 -29.3% 2.0 -82.9 1.4 -175.4
Health care SXDR 35 9.5% -0.4% 16 0.7% 14 508.2 903.7 -6.2% 3.8 -30.0 -37.8 -56.9
Industrial goods and services SXNR 95 9.5% 0.6% 6 14.5% 3 406.5 593.1 51.0% 3.8 68.5 62.3 118.8
Insurance SXIR 33 5.5% 0.1% 11 -2.5% 15 128.7 567.0 -13.4% 1.6 8.2 8.6 -60.5
Media SXMR 27 2.3% 0.1% 13 6.5% 8 222.1 292.8 159.1% 0.4 -34.3 -1.8 159.5
Oil and gas SXER 37 8.7% 3.7% 1 -9.2% 17 205.5 909.7 -12.9% 11.4 64.6 21.8 2.3
Personal and household goods SXQR 28 5.4% -0.3% 15 15.7% 2 149.7 239.9 45.3% 3.9 20.6 22.0 48.8
Real estate SX86R 18 1.2% 2.1% 3 7.5% 7 17.9 67.7 -16.7% 0.1 0.0 0.0 -15.2
Retail SXRR 24 3.7% -1.8% 18 10.8% 4 117.5 202.3 13.2% 0.9 17.1 1.5 12.5
Technology SX8R 26 3.0% 2.3% 2 5.0% 9 50.8 229.3 18.1% 0.9 6.1 0.0 28.2
Telecommunications SXKR 20 5.9% 0.1% 12 2.4% 11 435.9 769.1 -12.3% 3.2 31.1 -1.6 -91.4
Travel and leisure SXTR 23 1.3% -0.3% 14 9.6% 5 113.6 84.1 -4.7% 0.1 0.9 0.0 -9.4
Utilities SX6R 31 5.6% 0.4% 7 -13.0% 18 204.9 637.8 -11.0% 7.3 38.7 -6.6 41.0
Total 600 100.0% 0.1% 1.1% 3,932.3 9,563.9 -0.2% 72.5 551.0 83.7 278.9
are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
Types of ETF exposure in Europe: ranked by AUM
ETFs should be viewed as a tool for both active and passive managers.
Q3-10 YTD change

# AUM % # AUM %
Type of exposure ETFs (US$ Bn) total ETFs (US$ Bn) AUM
Equity – total 700 $168.0 65.6% 123 $13.7 8.9% Fixed income 22.4%
Country exposure Europe 105 $38.0 14.8% 15 $1.2 3.3% Country exposure Europe - equity 14.8%
Emerging markets 111 $31.8 12.4% 27 $9.3 41.6% Emerging markets - equity 12.4%
Regional exposure Eurozone - equity 11.9%
Regional exposure Eurozone 38 $30.6 11.9% 5 -$4.5 -12.7%
Commodities 8.6%
Country exposure United States 49 $14.5 5.6% 12 $2.4 20.3%
Country exposure United States - equity 5.6%
International 74 $14.4 5.6% 19 $3.4 30.8%
International - equity 5.6%
Regional exposure Europe 52 $11.9 4.6% 5 -$0.1 -1.0%
Regional exposure Europe - equity 4.6%
European sector exposure 141 $9.8 3.8% 15 -$0.4 -3.7%
European sector exposure - equity 3.8%
Global exposure 56 $9.6 3.7% 10 $1.4 17.5%
Global exposure - equity 3.7%
Style 43 $5.4 2.1% 3 $0.7 14.1%
Style - equity 2.1%
Eurozone sector exposure 19 $2.0 0.8% 1 $0.1 2.6%
Inverse 1.3%
United States sector exposure 12 $0.1 0.1% 11 $0.1 411.7%
Eurozone sector exposure - equity 0.8%
Fixed income 170 $57.4 22.4% 21 $6.1 11.8%
Alternative 0.7%
Commodities 64 $21.9 8.6% 29 $6.8 44.5%
Leveraged inverse 0.7%
Inverse 45 $3.4 1.3% 15 $0.6 21.6%
Leveraged 0.6%
Alternative 9 $1.7 0.7% 6 $1.6 1,318.8%
Currency 0.1%
Leveraged inverse 15 $1.7 0.7% 6 $0.6 53.0%
United States sector exposure - equity 0.1%
Leveraged 19 $1.5 0.6% 5 -$0.1 -3.9%
Mixed (equity and fixed income) 0%
Currency 4 $0.3 0.1% -2 $0.0 -4.5%
Mixed (equity and fixed income) 4 $0.1 0.0% 0 $0.0 33.7%
Total 1,030 $256.2 100.0% 203 24.5% $29.3

Index providers in Europe: ranked by AUM
Q3-10 YTD change

# AUM % # AUM %
MSCI 220 $57.0 22.2% 58 35.8% $13.3 MSCI 22.2%
STOXX 214 $47.0 18.3% 14 7.0% -$3.7 STOXX 18.3%

Deutsche Boerse 8.6%
Deutsche Boerse 37 $22.1 8.6% 10 37.0% $2.2
Markit 8.3%
Markit 84 $21.1 8.3% 19 29.2% $2.6
FTSE 7.2%
FTSE 85 $18.5 7.2% 22 34.9% $2.6
S&P 4.3%
S&P 53 $11.0 4.3% 20 60.6% $0.3
EuroMTS 4.2%
EuroMTS 29 $10.9 4.2% 7 31.8% -$0.1 SIX Swiss Exchange 3.2%
SIX Swiss Exchange 17 $8.2 3.2% 4 30.8% $0.9 Barclays Capital 2.9%
Barclays Capital 18 $7.3 2.9% 0 0.0% $1.1 CAC 2.7%
CAC 15 $6.8 2.7% -3 -16.7% -$0.7 NASDAQ OMX 1.6%
NASDAQ OMX 32 $4.1 1.6% 14 77.8% $0.4 Dow Jones 1.5%

Hang Seng 0.6%
Dow Jones 35 $3.9 1.5% 2 6.1% $0.7
Topix 0.3%
Hang Seng 6 $1.6 0.6% 2 50.0% $0.2
Nikkei 0.2%
Topix 4 $0.8 0.3% 0 0.0% $0.1
Russell 0.1%
Nikkei 3 $0.5 0.2% 1 50.0% $0.0
NYSE Euronext 0%
Russell 4 $0.2 0.1% -4 -50.0% $0.0 S-Network 0%
NYSE Euronext 8 $0.1 0.0% 6 300.0% $0.1 Intellidex 0%
S-Network 3 $0.1 0.0% 0 0.0% $0.0 Other 13.6%
Intellidex 1 $0.0 0.0% -4 -80.0% $0.0
Other 162 $35.0 13.6% 35 27.6% $9.2
Total 1,030 $256.2 100.0% 203 24.5% $29.3

Top 20 ETFs in Europe
ADV ADV
Lyxor Euro STOXX 50 France MSE FP $7,297.2 1,948 $75.7 iShares DAX® (DE) Germany DAXEX GY $107.2 1,372 $4,705.8
ZKB Gold ETF (CHF) Switzerland ZGLD SW $7,174.2 11 $21.1 iShares FTSE 100 UK ISF LN $85.8 9,258 $5,592.5
iShares S&P 500 UK IUSA LN $6,916.3 3,995 $45.2 Lyxor ETF Leverage CAC 40 France LVC FP $76.2 6,903 $427.3
iShares FTSE 100 UK ISF LN $5,592.5 9,258 $85.8 Lyxor Euro STOXX 50 France MSE FP $75.7 1,948 $7,297.2
iShares Markit iBoxx Euro Corporate Bond Germany IBCS GY $5,242.8 143 $24.0 Lyxor ETF XBEAR CAC 40 France BX4 FP $72.7 1,197 $510.4
db x-trackers MSCI EM TRN Index ETF Germany XMEM GY $4,977.0 791 $31.4 Lyxor CAC 40 France CAC FP $69.7 1,357 $3,700.8
iShares MSCI Emerging Markets UK IEEM LN $4,729.0 890 $36.8 STOXX 600 Optimised Banks Source ETF Germany X7PS GR $67.0 670 $225.3
iShares DAX® (DE) Germany DAXEX GY $4,705.8 1,372 $107.2 STOXX 600 Optimised Basic Resources Source ETF Germany XPPS GR $65.2 151 $509.5
iShares EURO STOXX 50 (DE) Germany SX5EEX GY $4,561.7 933 $35.5 db x-trackers Euro Stoxx 50 ETF Germany XESX GY $64.6 1,677 $3,302.9
iShares EURO STOXX 50 Germany EUN2 GY $4,420.3 819 $30.7 db x-trackers DAX ETF Germany XDAX GY $57.9 691 $2,915.0
CS ETF (CH) on SMI Switzerland CSSMI SW $3,704.2 177 $11.5 iShares S&P 500 UK IUSA LN $45.2 3,995 $6,916.3
Lyxor CAC 40 France CAC FP $3,700.8 1,357 $69.7 Lyxor ETF Xbear FTSE MIB Italy XBRMIB IM $43.6 917 $225.4
db x-trackers Euro Stoxx 50 ETF Germany XESX GY $3,302.9 1,677 $64.6 db x-trackers ShortDAX ETF Germany XSDX GY $42.9 516 $825.5
iShares MSCI World UK IWRD LN $3,066.7 1,118 $27.8 Lyxor ETF Leveraged FTSE MIB Italy LEVMIB IM $38.5 2,156 $201.9
db x-trackers DAX ETF Germany XDAX GY $2,915.0 691 $57.9 iShares MSCI Emerging Markets UK IEEM LN $36.8 890 $4,729.0
Lyxor ETF MSCI India France INR FP $2,361.9 1,078 $19.1 EURO STOXX 50 Source ETF Germany SDJE50 GY $36.5 587 $1,138.1
db x-trackers MSCI World TRN ETF Germany XMWO GY $2,245.2 944 $27.2 iShares EURO STOXX 50 (DE) Germany SX5EEX GY $35.5 933 $4,561.7
ETFlab EURO STOXX 50 Germany ETFSX5E GY $2,197.4 314 $11.6 db x-trackers DJ EURO STOXX 50 Short ETF Germany XSSX GY $32.7 704 $660.5
iShares eb.rexx® Govern. Germany 1.5-2.5 (DE) Germany RXP1EX GY $1,984.7 40 $5.5 STOXX 600 Opt. Indust. Goods & Serv. Source ETF Germany XNPS GR $32.3 216 $226.5
iShares MSCI AC Far East ex-Japan UK IFFF LN $1,976.6 311 $13.2 db x-trackers MSCI EM TRN Index ETF Germany XMEM GY $31.4 791 $4,977.0

Average expenses of ETFs versus open-end mutual funds in Europe
Average TER(s)
Average TER (bps)
ETFs1
Alternative 25
Commodities 44
Country exposure Europe – equity 30
Country exposure United States – equity 38
Currency 30
Emerging markets – equity 69
European sector exposure – equity 35
Eurozone sector exposure – equity 42
Fixed income 17
Global exposure – equity 49
International – equity 56
Inverse 41
Leveraged 59
Leveraged inverse 61
Mixed 72
Regional exposure Europe – equity 38
Regional exposure Eurozone – equity 23
Style – equity 37
United States sector exposure – equity 52
Total – equity ETFs 40
Total – fixed income ETFS 17
Total – all 35
Open-end mutual funds2

Passive/indexed domestic equity 91
Passive/indexed international equity 78
Passive/indexed fixed income 49
Actively managed domestic equity 180
Actively managed international equity 176
Actively managed fixed income 100
1. As at end February 2010.
2. Captured from Morningstar on 15 March 2010.
Source: Morningstar, Global ETF Research and Implementation Strategy Team, BlackRock.
ETP providers in Europe: ranked by assets
Q3-10 YTD change

Sep-10
# # total Assets % # NNA YTD NNA # % Assets % % market
Provider ETPs listings (US$ Bn) total planned (US$ Bn) (US$ Bn) ETPs ETPs (US$ Bn) assets share
ETF Securities 187 607 $18.6 76.2% 32 $0.0 $2.0 40 27.2% $3.4 22.6% -20.5%
Societe Generale 42 43 $3.5 14.4% 0 $0.0 N/A 42 100.0% $3.5 100.0% 14.4%
Deutsche Bank 29 40 $0.9 3.5% 0 $0.3 $0.8 29 100.0% $0.9 100.0% 3.5%
Source Markets 28 55 $0.7 2.9% 0 -$0.1 $0.2 0 0.0% $0.3 69.4% 0.2%
Lyxor 3 5 $0.2 1.0% 0 N/A N/A 0 0.0% $0.1 133.3% 0.3%
RBS 18 33 $0.2 0.7% 0 $0.0 $0.2 18 100.0% $0.2 100.0% 0.7%
Barclays (iPath) 12 27 $0.1 0.4% 0 $0.0 $0.1 12 100.0% $0.1 100.0% 0.4%
Standard Commodities 1 5 $0.0 0.2% 0 $0.0 $0.0 1 100.0% $0.0 100.0% 0.2%
iShares - 1 - - 0 - - - - - - -
State Street Global Advisors - 1 - - 0 - - - - - - -
Merrill Lynch - 3 - 0 - - - - - - -
GAM Holding - - - - 4 - - - - - - -
Total 389 889 $24.4 100.0% 39 $0.2 $3.5 211 118.5% $8.7 55.7%

ETFs listed in Asia Pacific (ex-Japan)
At the end of Q3 2010 the Asia Pacific (ex-Japan) ETF industry had 185 ETFs with 289 listings, and assets of US$51.3 Bn from 56 providers on
13 exchanges.
Assets
• YTD assets have increased by 31.7% from US$38.9 Bn to US$51.3 Bn, which is greater than the 7.3% increase in the MSCI AC Asia
Pacific ex-Japan Index in US dollar terms.
ETFs
• YTD the number of ETFs increased by 44.5% with 59 new ETFs launched, while two ETFs were delisted.
Trading volume
• YTD the ETF average daily trading volume in US dollars has decreased by 20.1% to US$0.7 Bn.
ETF providers
• State Street Global Advisors is the largest ETF provider in terms of assets with US$11.5 Bn, in eight ETFs, reflecting 22.5% market
share; iShares is second with 15 products and US$9.8 Bn, a 19.0% market share; followed by Hang Seng Investment Management with
three products, assets of US$6.3 Bn and 12.2% market share at the end of Q3 2010.
Mutual funds
• In Asia Pacific (ex-Japan), net sales of mutual funds (excluding ETFs) were minus US$35.5 Bn, while net sales of ETFs domiciled in Asia
Pacific ex Japan were positive US$9.8 Bn during the first seven months of 2010 according to Strategic Insight.
ETPs
• Additionally, there were 15 other Exchange Traded Products (ETPs)1 with 18 listings and assets of US$1.2 Bn from 11 providers on
five exchanges.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg
Asia Pacific (ex-Japan) ETF and ETP asset growth
60 200
180
50
160
140
40
120
30 100
80
20
60
40
10
20
0 0
Assets (US$ Bn) 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF assets $3.7 $3.8 $6.6 $8.6 $10.5 $18.1 $27.0 $23.8 $38.5 $51.3
ETP assets $0.1 $0.5 $0.8 $1.2
# ETFs 4 11 20 27 32 49 68 96 132 185
# ETPs 4 6 12 15

ETF providers in Asia Pacific (ex-Japan): ranked by AUM
Q3-10 YTD change

# # total AUM % # # % AUM % % market
Provider ETFs listings (US$ Bn) total planned ETFs ETFs (US$ Bn) AUM Share
State Street Global Advisors 8 10 $11.5 22.5% 1 2 33.3% $1.8 18.6% -2.7%
iShares 15 39 $9.8 19.0% 4 2 15.4% $1.9 24.6% -1.3%
Hang Seng Investment Management 3 5 $6.3 12.2% 0 0 0.0% $1.0 18.5% -1.5%
China Asset Management 2 2 $3.8 7.4% 2 0 0.0% $0.0 0.2% -2.4%
E Fund Management 2 2 $3.8 7.4% 1 1 100.0% $2.4 185.2% 3.9%
Samsung Investment Trust Management 16 16 $2.5 4.9% 0 0 0.0% $0.9 59.0% 0.8%
Polaris 8 9 $2.3 4.6% 3 0 0.0% $0.2 10.6% -0.9%
Lyxor Asset Management 2 32 $1.0 1.9% 1 0 0.0% $0.2 23.1% -0.2%
Woori Asset Management 10 10 $0.9 1.8% 7 2 25.0% $0.5 132.2% 0.8%
BOCI-Prudential Asset Management 3 3 $0.9 1.8% 0 0 0.0% $0.0 -5.0% -0.7%
Hua An Fund Management 1 1 $0.9 1.7% 2 0 0.0% $0.7 372.7% 1.2%
db x-trackers 23 65 $0.8 1.6% 0 23 100.0% $0.8 100.0% 1.6%
China Southern Fund Management 1 1 $0.7 1.4% 1 1 100.0% $0.7 100.0% 1.4%
Bank of Communications 1 1 $0.6 1.3% 0 0 0.0% $0.6 100.0% 1.3%
Mirae Asset MAPS Global Investments 15 15 $0.5 1.1% 0 4 36.4% $0.1 36.0% 0.0%
AIG-Huatai Fund Management 1 1 $0.5 1.0% 0 0 0.0% -$0.1 -14.0% -0.5%
HSBC 1 1 $0.3 0.6% 0 0 0.0% $0.0 -0.3% -0.2%
Fubon Asset Management 4 4 $0.3 0.6% 0 0 0.0% -$0.3 -47.8% -0.9%
KB Asset Management 4 4 $0.3 0.6% 0 1 33.3% $0.0 12.0% -0.1%
DBS Asset Management 2 2 $0.3 0.6% 0 0 0.0% $0.0 13.3% -0.1%
Bosera Asset Management 1 1 $0.3 0.6% 1 1 100.0% $0.3 100.0% 0.6%
Korea Investment Trust Management 6 6 $0.3 0.5% 0 1 20.0% $0.0 -13.7% -0.3%
Benchmark Asset Management 7 7 $0.2 0.5% 7 1 16.7% $0.0 14.8% -0.1%
Smartshares Limited 5 5 $0.2 0.5% 0 0 0.0% $0.0 5.1% -0.1%
continued…
ETF providers in Asia Pacific (ex-Japan): ranked by AUM (continued)
Q3-10 YTD change

Provider ETFs listings (US$ Bn) total planned ETFs ETFs (US$ Bn) AUM share
Vanguard 1 3 $0.2 0.4% 2 0 0.0% $0.1 276.1% 0.3%
Fortune SGAM Fund Management 1 1 $0.2 0.4% 0 1 100.0% $0.2 100.0% -99.6%
i-VCAP Management 1 1 $0.2 0.4% 0 0 0.0% $0.0 4.8% -0.1%
ICBC Credit Suisse Asset Management 1 1 $0.2 0.4% 0 0 0.0% -$0.2 -52.0% -0.7%
CIMB-Principal Asset Management 2 3 $0.2 0.3% 1 1 100.0% $0.0 10.0% -0.1%
AmInvestment Management 2 2 $0.2 0.3% 0 0 0.0% $0.0 10.7% -0.1%
AMP 1 1 $0.1 0.3% 0 0 0.0% -$0.1 -47.4% -0.4%
Hanwha Investment Trust Management 1 1 $0.1 0.3% 0 1 100.0% $0.1 100.0% 0.3%
Yurie Asset Management 2 2 $0.1 0.2% 0 0 0.0% $0.0 3.7% -0.1%
One Asset Management 2 2 $0.1 0.2% 0 0 0.0% $0.0 1.5% -0.1%
Motilal Oswal Asset Management 1 1 $0.1 0.1% 0 1 100.0% $0.1 100.0% 0.1%
Russell Investments 1 1 $0.1 0.1% 0 1 100.0% $0.1 100.0% 0.1%
Sensible Asset Management 1 1 $0.1 0.1% 0 0 0.0% $0.0 26.3% 0.0%
CCB Principal Asset Management 1 1 $0.1 0.1% 0 1 100.0% $0.1 100.0% 0.1%
UOB Asset Management 1 1 $0.0 0.1% 0 0 0.0% -$0.2 -78.7% -0.5%
Prudential Asset Management 2 2 $0.0 0.1% 0 1 100.0% $0.0 51.9% 0.0%
KTB Asset Management 1 1 $0.0 0.1% 0 0 0.0% $0.0 138.4% 0.0%
Ping An 1 1 $0.0 0.1% 0 1 100.0% $0.0 100.0% 0.1%
Daishin Investment Trust Management 1 1 $0.0 0.0% 0 0 0.0% $0.0 27.0% 0.0%
Da Cheng International Asset Management 1 1 $0.0 0.0% 0 1 100.0% $0.0 100.0% 0.0%
Tong Yang Investment Trust Management 1 1 $0.0 0.0% 0 0 0.0% $0.0 -11.3% 0.0%
China International Capital Corp 1 1 $0.0 0.0% 0 1 100.0% $0.0 100.0% 0.0%
Daiwa Asset Management 1 1 $0.0 0.0% 1 0 0.0% $0.0 8.0% 0.0%
Kotak Mahindra Asset Management 3 3 $0.0 0.0% 0 1 50.0% $0.0 22.5% 0.0%
continued…
ETF providers in Asia Pacific (ex-Japan): ranked by AUM (continued)
Q3-10 YTD change

Australian Index Investments 6 6 $0.0 0.0% 0 6 100.0% $0.0 100.0% 0.0%
TMB Asset Management 1 1 $0.0 0.0% 0 0 0.0% $0.0 13.0% 0.0%
Hyundai Investments 1 1 $0.0 0.0% 0 1 100.0% $0.0 100.0% 0.0%
Indo Premier Securities 1 1 $0.0 0.0% 0 0 0.0% $0.0 -5.2% 0.0%
Reliance Capital Asset Management 1 1 $0.0 0.0% 4 0 0.0% $0.0 -4.6% 0.0%
Quantum Asset Management 1 1 $0.0 0.0% 0 0 0.0% $0.0 18.0% 0.0%
PRUDENTIAL ICICI 1 1 $0.0 0.0% 0 0 0.0% $0.0 21.3% 0.0%
UTI Asset Management 1 1 $0.0 0.0% 1 0 0.0% $0.0 -88.7% 0.0%
Allianz SE - - - - 1 - - - - -
BetaShares - - - - 4 - - - - -
Birla Sun Life Mutual Fund - - - - 1 - - - - -
EasyETF - - - - 1 - - - - -
Government Service Insurance Systems - - - - 1 - - - - -
Guotai Asset Management - - - - 1 - - - - -
HFT Investment Management - - - - 1 - - - - -
Penghua Fund Management - - - - 4 - - - - -
Religare India Asset Management - - - - 1 - - - - -
Tata Mutual Fund - - - - 1 - - - - -
Other (Planned) - - - - 5 - - - - -
Total 185 289 $51.3 100.0% 60 57 44.5% $12.3 31.7%

Top 20 ETFs in Asia Pacific (ex-Japan)
ADV ADV
iShares FTSE/Xinhua A50 China Hong Kong 2823 HK $7,475.9 83,147 $131.6 iShares FTSE/Xinhua A50 China Hong Kong 2823 HK $131.6 83,147 $7,475.9
Tracker Fund of Hong Kong (TraHK) Hong Kong 2800 HK $5,947.7 11,679 $34.5 China AMC SSE 50 China 510050 CH $90.0 316,655 $3,150.4
Hang Seng Index ETF Hong Kong 2833 HK $3,587.9 76 $2.2 E Fund SZSE 100 China 159901 CH $88.3 160,918 $3,286.5
E Fund SZSE 100 China 159901 CH $3,286.5 160,918 $88.3 SHANGHAI SSE180 ETF China 510180 CH $43.3 479,547 $886.4
China AMC SSE 50 China 510050 CH $3,150.4 316,655 $90.0 Tracker Fund of Hong Kong (TraHK) Hong Kong 2800 HK $34.5 11,679 $5,947.7
Hang Seng H-Share Index ETF Hong Kong 2828 HK $2,649.4 1,709 $27.6 China SME ETF China 159902 CH $33.4 77,072 $630.7
SPDR S&P/ASX 200 Fund Australia STW AU $2,433.5 278 $11.7 Samsung Kodex200 ETF South Korea 069500 KS $29.8 1,393 $1,668.6
ABF Pan Asia Bond Index Fund Hong Kong 2821 HK $2,346.4 4 $0.5 Hang Seng H-Share Index ETF Hong Kong 2828 HK $27.6 1,709 $2,649.4
Samsung Kodex200 ETF South Korea 069500 KS $1,668.6 1,393 $29.8 Samsung KODEX Leverage ETF South Korea 122630 KS $24.7 2,229 $113.0
Polaris Taiwan Top 50 Tracker Taiwan 0050 TT $1,653.6 9,273 $17.1 Polaris Taiwan Top 50 Tracker Taiwan 0050 TT $17.1 9,273 $1,653.6
iShares MSCI India ETF Singapore INDIA SP $1,078.6 489 $3.9 Samsung KODEX Inverse ETF South Korea 114800 KS $12.5 1,664 $111.7
SHANGHAI SSE180 ETF China 510180 CH $886.4 479,547 $43.3 SPDR S&P/ASX 200 Fund Australia STW AU $11.7 278 $2,433.5
World Index Shares ETFs – CSI 300 Hong Kong 2827 HK $823.4 1,190 $5.2 db x-trackers CSI300 Real Estate Hong Kong 2816 HK $8.1 6,521 $37.8
SSE Component Stock Index ETF China 159903 CH $698.9 41,730 $7.0 SSE Component Stock Index ETF China 159903 CH $7.0 41,730 $698.9
Bank Of Communications Schroder SSE180 China 510010 CH $644.5 2,760 $0.3 db x-trackers CSI300 Banks Index ETF Hong Kong 3061 HK $5.6 4,835 $37.9
China SME ETF China 159902 CH $630.7 77,072 $33.4 Woori KOSEF 200 – KOSPI 200 South Korea 069660 KS $5.6 262 $138.6
Huatai-PineBridge Dividend ETF China 510880 CH $509.1 7,767 $2.4 db x-trackers CSI300 Financials Hong Kong 2844 HK $5.5 4,583 $27.7
E Fund SSE Mid-cap ETF China 510130 CH $481.3 7,519 $3.2 Vanguard Australian Shares Index ETF Australia VAS AU $5.4 94 $201.9
W.I.S.E. Polaris CSI 300 Taiwan 0061 TT $415.0 3,892 $2.2 World Index Shares ETFs – CSI 300 Hong Kong 2827 HK $5.2 1,190 $823.4
Samsung KODEX Samsung Group South Korea 102780 KS $360.7 553 $2.7 Mirae Asset Maps Tiger 200 ETF South Korea 102110 KS $4.5 213 $234.4

ETFs listed in Japan
At the end of Q3 2010 the Japanese ETF industry had 74 ETFs with 77 listings and assets of US$30.7 Bn from six providers on two exchanges.
There are 170 ETFs which have filed notifications in Japan.
Assets
• YTD assets have increased by 24.4% from US$24.6 Bn to US$30.7 Bn, which is greater than the 0.5% increase in the MSCI Japan Index
in US dollar terms.
ETFs
• YTD the number of ETFs increased by 8.8% with six new ETFs launched.
Trading volume
ETF providers
• Nomura Asset Management is the largest ETF provider in terms of assets with US$17.8 Bn, in 32 ETFs, reflecting 58.2% market share;
Nikko Asset Management is second with 14 products and US$5.8 Bn, an 18.8% market share; followed by Daiwa Asset Management
with 22 products, assets of US$5.0 Bn and 16.3% market share at the end of Q3 2010.
Mutual funds
• In Japan, net sales of mutual funds (excluding ETFs) were US$40.4 Bn, while net sales of ETFs domiciled in Japan were US$1.9 Bn
during the first seven months of 2010 according to Strategic Insight.
ETPs
• Additionally, there were nine other Exchange Traded Products (ETPs)1 with 20 cross listings and assets of US$0.3 Bn from four providers
on two exchanges.
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg
Japan ETF and ETP asset growth
40 80
35 70
30 60
25 50
20 40
15 30
10 20
5 10
0 0
Assets (US$ Bn) 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF assets $6.6 $21.0 $27.6 $30.3 $31.8 $34.6 $34.2 $27.4 $24.6 $30.7
ETP assets $0.0 $0.3 $0.3 $0.3
# ETFs 8 18 18 15 13 13 15 61 68 74
# ETPs 1 4 5 9

ETF providers in Japan: ranked by AUM
Q3-10 YTD change

Nomura Asset Management 32 32 $17.8 58.2% 0 2 6.7% $4.5 33.4% 3.9%
Nikko Asset Management 14 14 $5.8 18.8% 0 4 40.0% $0.0 0.6% -4.5%
Daiwa Asset Management 22 22 $5.0 16.3% 0 0 0.0% $0.1 1.6% -3.7%
Mitsubishi UFJ Asset Management 4 4 $2.0 6.5% 0 0 0.0% $1.5 273.4% 4.3%
iShares 1 1 $0.0 0.1% 0 0 0.0% $0.0 -16.5% -0.1%
Simplex Asset Management 1 1 $0.0 0.0% 0 0 0.0% $0.0 3.9% 0.0%
EasyETF - 1 - - - - - - - -
Samsung Investment Trust Management - 1 - - - - - - - -
State Street Global Advisors - 1 - - - - - - - -
Total 74 77 $30.7 100.0% 0 6 8.8% $6.0 24.4%

Top 20 ETFs in Japan
ADV ADV
TOPIX ETF 1306 JP $10,392.7 2,774 $27.9 NIKKEI 225 ETF 1321 JP $65.4 576 $6,010.7
NIKKEI 225 ETF 1321 JP $6,010.7 576 $65.4 Listed Index Fund 225 1330 JP $36.6 321 $2,903.9
Listed Index Fund 225 1330 JP $2,903.9 321 $36.6 TOPIX ETF 1306 JP $27.9 2,774 $10,392.7
Listed Index Fund TOPIX 1308 JP $2,561.9 518 $5.1 Daiwa ETF NIKKEI 225 1320 JP $12.9 114 $2,112.9
Daiwa ETF TOPIX 1305 JP $2,428.6 442 $4.4 Listed Index Fund TOPIX 1308 JP $5.1 518 $2,561.9
Daiwa ETF NIKKEI 225 1320 JP $2,112.9 114 $12.9 Daiwa ETF TOPIX 1305 JP $4.4 442 $2,428.6
MAXIS S&P Mitsubishi Group ETF 1670 JP $1,213.5 496 $0.6 MAXIS NIKKEI 225 ETF 1346 JP $3.4 29 $467.0
MAXIS NIKKEI 225 ETF 1346 JP $467.0 29 $3.4 TOPIX Banks Exchange Traded Fund 1615 JP $1.7 1,211 $324.2
SSE 50 Index Linked ETF 1309 JP $332.7 5 $1.3 SSE 50 Index Linked ETF 1309 JP $1.3 5 $332.7
TOPIX Banks Exchange Traded Fund 1615 JP $324.2 1,211 $1.7 MAXIS TOPIX ETF 1348 JP $0.9 86 $120.3
MAXIS TOPIX Core30 ETF 1344 JP $185.1 149 $0.8 MAXIS TOPIX Core30 ETF 1344 JP $0.8 149 $185.1
TOPIX Core 30 Exchange Traded Fund 1311 JP $168.8 10 $0.1 NEXT FUNDS Ibovespa Linked ETF 1325 JP $0.7 186 $151.0
NEXT FUNDS Ibovespa Linked ETF 1325 JP $151.0 186 $0.7 MAXIS S&P Mitsubishi Group ETF 1670 JP $0.6 496 $1,213.5
MAXIS TOPIX ETF 1348 JP $120.3 86 $0.9 Listed Index Fund China A Share (Panda) CSI 300 1322 JP $0.4 11 $82.0
Nikkei 300 Stock Index Listed Fund 1319 JP $105.6 15 $0.0 NEXT FUNDS India S&P CNX Nifty Linked 1678 JP $0.4 308 $45.7
Daiwa ETF TOPIX Core 30 1310 JP $104.9 1 $0.0 NEXT FUNDS Tokyo Stock Exchange REIT 1343 JP $0.4 33 $75.7
Listed Index Fund China A Share (Panda) CSI 300 1322 JP $82.0 11 $0.4 iShares Nikkei 225 1329 JP $0.3 3 $43.6
NEXT FUNDS Tokyo Stock Exchange REIT ETF 1343 JP $75.7 33 $0.4 Listed Index Fund International Emerging Countries 1681 JP $0.2 15 $44.9
Daiwa ETF TOPIX-17 Electric Appliances & Precision Instruments 1642 JP $52.4 0 $0.0 Listed Index Fund J-REIT 1345 JP $0.2 15 $45.6
NEXT FUNDS India S&P CNX Nifty Linked ETF 1678 JP $45.7 308 $0.4 Simplex NY Dow Jones Index Linked ETF 1679 JP $0.1 1 $11.6

ETFs listed in Latin America
At the end of Q3 2010 the Latin American ETF industry had 21 ETFs with 347 listings, and assets of US$10.0 Bn from three providers on three
exchanges. There were 276 ETFs cross listed in Mexico at the end of Q3 2010, while there are 307 ETFs registered for sale in Chile and 290
ETFs registered for sale in Peru.
Assets
• YTD assets have increased by 1.8% from US$9.8 Bn to US$10.0 Bn, which is less than the 6.4% increase in the MSCI EM Latin America
Index in US dollar terms.
ETFs
• YTD the number of ETFs has increased by 23.5% with four new ETFs launched.
Trading volume
ETF providers
• iShares is the largest ETF provider in terms of assets with US$7.5 Bn, in 18 ETFs, reflecting 74.9% market share; Banco Itau is second
with US$1.3 Bn in one ETF, a 13.2% market share at the end of Q3 2010.

Latin America ETF asset growth
12 25
10
20
15
10
5
2
0 0
Assets (US$ Bn) 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF assets $0.1 $0.4 $0.4 $1.3 $2.6 $6.0 $5.1 $9.8 $10.0
# ETFs 1 1 2 2 2 6 10 17 21

ETF providers in Latin America: ranked by AUM
Q3-10 YTD change

iShares 18 214 $7.5 74.9% 1 3 20.0% -$0.9 -10.4% -10.2%
Banco Itau 1 1 $1.3 13.2% 0 0 0.0% -$0.1 -9.8% -1.7%
BBVA Asset Management 2 7 $1.2 11.9% 0 1 100.0% $1.2 100.0% 11.9%
Direxion Shares - 4 - - - - - - - -
EasyETF - 10 - - - - - - - -
Lyxor Asset Management - 4 - - - - - - - -
PowerShares - 1 - - - - - - - -
ProShares - 18 - - - - - - - -
State Street Global Advisors - 27 - - - - - - - -
Van Eck Associates Corp - 13 - - - - - - - -
Vanguard - 39 - - - - - - - -
WisdomTree Investments - 9 - - - - - - - -
Total 21 347 $10.0 100.0% 1 4 23.5% $0.2 1.8%
Top 10 ETFs in Latin America

ADV ADV
iShares NAFTRAC Mexico NAFTRAC MM $5,768.1 95,606 $251.8 iShares NAFTRAC Mexico NAFTRAC MM $251.8 95,606 $5,768.1
PIBB FUNDO INDICE BRASIL 50 Brazil PIBB11 BZ $1,324.6 28 $1.6 iShares Ibovespa Fundo de Índice Brazil BOVA11 BZ $15.8 387 $309.9
iShares IPC Large Cap Total Return Mexico ILCTRAC MM $927.1 3,517 $8.3 iShares IPC Large Cap Total Return Mexico ILCTRAC MM $8.3 3,517 $927.1
BRTRAC 10 Mexico BRTRAC MM $894.9 2,705 $7.6 BRTRAC 10 Mexico BRTRAC MM $7.6 2,705 $894.9
iShares Ibovespa Fundo de Índice Brazil BOVA11 BZ $309.9 387 $15.8 PIBB FUNDO INDICE BRASIL 50 Brazil PIBB11 BZ $1.6 28 $1,324.6
MEXTRAC Mexico MEXTRAC MM $296.3 107 $0.6 MEXTRAC Mexico MEXTRAC MM $0.6 107 $296.3
iShares Mexico Corporate Bond Mexico CORPTRC MM $159.0 77 $0.1 iShares BM&FBovespa Small Cap Brazil SMAL11 BZ $0.6 14 $43.0
iShares LATixx Mexico UDITRAC Mexico UDITRAC MM $137.9 10 $0.1 iShares Indice BM&FBOVESPA Imobiliario Brazil MOBI11 BZ $0.4 30 $9.8
iShares IPC Mid Cap Total Return Mexico IMCTRAC MM $96.4 0 $0.0 iShares BM&FBOVESPA de Consumo Brazil CSMO11 BZ $0.2 9 $9.1
iShares BM&FBovespa Small Cap Brazil SMAL11 BZ $43.0 14 $0.6 iShares Habita Total Return TRAC Mexico IHBTRAC MM $0.1 105 $1.3

ETFs listed in Canada
At the end of Q3 2010 the Canadian ETF industry had 152 ETFs, assets of US$34.0 Bn, from four providers on one exchange.
Assets
• YTD assets have risen by 19.1% from US$28.5 Bn to US$34.0 Bn, which is greater than the 6.4% increase in the MSCI Canada Index in
US dollar terms.
ETFs
• 9 March 2010 marked the 20th anniversary of the first ETF globally, which was listed in Canada in 1990.
Trading volume
ETF providers
• iShares is the largest ETF provider in terms of assets with US$25.9 Bn in 37 ETFs, reflecting 76.3% market share; Claymore Investments
is second with 28 products and US$4.2 Bn, a 12.2% market share; followed by BetaPro Management with 57 products, assets of
US$2.7 Bn and 8.1% market share at the end of Q3 2010.
ETPs
• Additionally, there was one other Exchange Traded Product (ETP)1, 20 cross listings and assets of US$0.5 Bn from one provider on
one exchange.
Canada ETF asset growth
40 160
35 140
30 120
25 100
20 80
15 60
10 40
5 20
0 0
Assets (US$ Bn) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF assets $0.4 $4.0 $3.1 $3.4 $5.5 $7.4 $10.6 $13.0 $18.0 $15.7 $28.5 $34.0
ETP assets $0.5
# ETFs 1 3 14 15 16 16 20 26 46 77 110 152
# ETPs 1

ETF providers in Canada: ranked by AUM
Q3-10 YTD change

iShares 37 $25.9 76.3% 1 7 23.3% $3.4 15.1% -2.6%
BetaPro Management 57 $2.7 8.1% 1 15 35.7% $0.2 6.6% -0.9%
BMO Asset Management 30 $1.1 3.4% 0 17 100.0% $1.0 100.0% 2.8%
Total 152 $34.0 100.0% 9 42 38.2% $5.4 19.1%
Top 10 ETFs in Canada
ADV ADV
iShares S&P/TSX 60 Index Fund XIU CN $11,123.7 17,071 $297.7 iShares S&P/TSX 60 Index Fund XIU CN $297.7 17,071 $11,123.7
iShares DEX Short Term Bond Index Fund XSB CN $1,868.7 279 $7.9 Horizons BetaPro NYMEX Natural Gas Bull Plus HNU CN $139.5 37,195 $532.1
iShares DEX Universe Bond Index Fund XBB CN $1,636.3 264 $7.8 Horizons BetaPro NYMEX Natural Gas Bear Plus HND CN $77.2 9,088 $12.7
iShares S&P 500 Index Fund (CAD-Hedged) XSP CN $1,314.0 634 $8.1 Horizons BetaPro NYMEX Crude Oil Bull Plus HOU CN $70.5 11,917 $496.4
iShares S&P/TSX Global Gold Index Fund XGD CN $1,247.8 1,587 $39.1 Horizons BetaPro S&P/TSX Global Gold Bull Plus HGU CN $40.4 2,462 $162.4
iShares DEX All Corporate Bond Index Fund XCB CN $1,145.5 252 $5.1 iShares S&P/TSX Global Gold Index Fund XGD CN $39.1 1,587 $1,247.8
iShares S&P/TSX Capped Composite Index Fund XIC CN $1,037.2 423 $8.0 Horizons BetaPro NYMEX Crude Oil Bear Plus HOD CN $38.9 3,903 $39.0
iShares S&P/TSX Capped REIT Index Fund XRE CN $1,007.0 386 $5.2 Horizons BetaPro S&P/TSX 60 Bull Plus Fund HXU CN $25.9 1,402 $100.7
iShares MSCI EAFE Index Fund (CAD-Hedged) XIN CN $987.3 181 $3.1 Horizons BetaPro S&P/TSX Global Gold Bear Plus HGD CN $23.0 2,341 $61.0
iShares S&P/TSX Capped Financials Index Fund XFN CN $867.7 893 $19.1 iShares S&P/TSX Capped Financials Index Fund XFN CN $19.1 893 $867.7

Middle East and Africa ETF asset growth
18 350
16
300
14
250
12
200
10
8
150
6
100
50
2
0 0
Assets (US$ Bn) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF assets $0.3 $0.6 $0.8 $1.2 $1.6 $1.2 $2.2 $1.2 $1.8 $2.0
ETP assets $0.0 $0.1 $0.1 $0.2 $0.5 $0.4 $4.5 $9.1 $8.1 $14.8 $15.4
# ETFs 1 3 4 5 7 8 11 17 23 27
# ETPs 1 1 1 3 19 42 95 212 247 287 303

Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, Bank of Israel.
ETF providers in Middle East and Africa: ranked by AUM
Q3-10 YTD change

Satrix Managers 7 $1.4 70.5% 1 0 0.0% $0.1 5.2% -5.6%
db x-trackers 5 $0.2 8.7% 0 0 0.0% $0.0 10.3% -0.3%
Absa Capital 7 $0.2 8.1% 0 0 0.0% $0.0 11.4% -0.2%
Bips Investment Managers 2 $0.2 7.7% 0 0 0.0% $0.1 179.0% 4.5%
Fortress Asset Managers 1 $0.0 2.3% 0 0 0.0% $0.0 27.4% 0.2%
Investec Fund Management 1 $0.0 1.6% 0 0 0.0% $0.0 18.1% 0.1%
Falcom Financial Services 2 $0.0 0.7% 0 2 100.0% $0.0 0.0% 0.7%
National Bank of Abu Dhabi 1 $0.0 0.3% 2 1 100.0% $0.0 0.0% 0.3%
Nedbank Capital 1 $0.0 0.2% 0 1 100.0% $0.0 0.0% 0.2%
Al Mal Capital - - - 1 - - - - -
Gaon Investment House - - - 2 - - - - -
Other (planned) - - - 15 - - - - -
Total 27 $2.0 100.0% 21 4 17.4% $0.2 13.5%

Exchange Traded Funds (ETFs): product overview
• ETFs are open-ended index tracking funds1. • ETFs are generally liquid:
• ETFs are managed by asset managers. – Liquidity reflects liquidity of underlying basket of shares not the
trading volume of the ETF – as long as trading with a broker which
• ETFs are bought and sold through brokers.
is an authorised participant.
• Trade on the exchange like any other stock.
– Creation/redemption process makes ETFs as liquid as their
• Settle like any other share on the exchange. underlying shares.
• Can be purchased, cleared and held in brokerage or – Unique structure for brokers who enter into legal agreements with
custodial account. the ETF asset managers to be authorised participants, creation/
redemption agents or liquidity providers:
• Can go long or short.
• Portfolio of securities can be exchanged for ‘Creation Units’.
• Are lendable and marginable.
• ‘Creation Units’ can be redeemed for underlying portfolio.
• Transparent underlying portfolios generally available daily.
• Creation/redemption (‘in kind’) feature allows for arbitrage and
• Real Time indicative NAV.
results in the fund trading near Net Asset Value.
• ETFs will generally price around their NAV due to the creation/
redemption process.
• Benefits:
– ETFs are not a derivative.
– Flexible.
– Transparent.
– Liquid.
– Small minimum investment.
– Ability to trade with multiple counterparties.
1. Note a few active funds which disclose their portfolios daily have been approved and listed.
Exchange Traded Products (ETPs): product overview
• ETPs are products that have similarities to ETFs in the way they • ETPs may not provide transparency on the underlying portfolio.
trade and settle but they do not use a mutual fund structure.
• ETPs may not have a real time indicative NAV.
• The use of other structures by ETPs can create different tax and
• ETPs may expose the investor with up to 100% counterparty risk.
regulatory implications for investors when compared to ETFs which
are funds. • ETPs typically do not have an “in-kind” creation/redemption process.
• Structures often used by ETPs: • ETPs are open-ended.
– Grantor Trusts. • ETPs are bought and sold through brokers.
– Delaware Statutory Trust. • Trade on the exchange like any other stock.
– New York Grantor Trust. • Settle like any other share on the exchange.
– Special Purpose Company. • Can be purchased, cleared and held in brokerage or
custodial account.
– Partnerships.
• Can go long or short.
– Secured Note.
• Are lendable and marginable.
– Unsecured Note.
– Commodity Pool.
ETF/ETP tool box
Equity Fixed income Cash Currency
• Global • Government • EONIA, SONIA • Developed currencies

• Capitalisation • Corporate • Fed funds • Emerging market currencies
– e.g. large, mid, small… • Credit • Inverse/leveraged
• Sectors • Inflation Alternatives • Strategy
• Broad markets • High yield • Hedge funds – e.g. carry, momentum…
• Emerging markets • Mortgage backed • Carbon
• Volatility Commodities
• Countries • Emerging markets
• Inverse/leveraged • Broad
• Styles – e.g. S&P, GSCI, DJUBS,
RICI, CRB…
– Active
• Sub-indices
– Dividend
– e.g. energy, livestock,
– Fundamental precious metals, industrial
– Infrastructure metals, agriculture…
– Real estate • Individual commodities
– Shariah • Based on physically held assets
– Thematic – e.g. gold, silver, platinum,
– Private equity palladium…
– Value • Based on futures
– Growth • Based on forwards

• Inverse/leveraged
2,379 ETFs with 5,204 ETF listings 878 other ETPs1 with 1,445 ETP listings
Total: 3,257 products with 6,649 listings
1. Other Exchange Traded Products (ETPs) include Holding Company Depository Receipts (HOLDRs), Exchange Traded Commodities (ETCs), Exchange Traded Currency products, and
Exchange Traded Notes (ETNs). Data as at end Q3 2010.
Source: Global ETF Research and Implementation Strategy Team, BlackRock.
New asset classes
New asset classes will continue to squeeze the traditional core of actively managed funds
Passive products/ETFs
ETFs
Innovative products
Passive fixed Liability-driven
income
CAGR, 2008-2012 (%)
investments
Passive Infrastructure funds
equity
Commodities Absolute return
Structured Real estate
Fixed income
products (including REITs) Short-extension funds
core and
specialities
Quantitative products Hedge funds
Equity
core and
specialities
Money
market Private equity
Active products
Net revenue margin (basis points)
Estimated size, 2008 ($trillions). Scale = $1 trillion Active Passive Innovative
Source: BCG Global Asset Management 2009, ‘Conquering the Crisis’, July 2009, Projections 2008–2012.
How should I decide which product to use?
• What is my benchmark?
• What are my regulatory guidelines?

Products
Considerations
• What are my mandate constraints?
• Portfolio trading
• Transparency
• What are my counterparty risk
guidelines? • ETFs
• Client service
• ETNs
• Product choice • What are my tracking risk guidelines?
• ETCs¹
• Liquidity • How can i gain long and/or short
exposure? • Swaps
• Portfolio management
• How can securities lending add value? • Futures and options
• What is my time horizon? • Securitised products:

certificates, warrants,
• What are the tax implications? equity linked notes,
local access
products
• What are my liquidity requirements?
• What costs are involved?
1. Exchange Traded Commodities (ETCs).
Why use ETFs?
Transparency • Investors can generally see the ETF composition at any given time
• ETFs offer two sources of liquidity:

Liquidity – Traditional liquidity measured by secondary market trading volume
– The liquidity of the underlying assets via the creation and redemption process
• ETFs provide immediate exposure to a basket or group of securities for instant diversification
Diversification
• Broad range of asset classes including equities, bonds, commodities, investment themes etc
• ETFs are listed on exchanges and can be traded at any time the market is open
Flexibility
• Pricing is continuous throughout the day
• ETFs offer a cost-effective route to diversified market exposure

Cost effectiveness • The average total expense ratio (TER) for equity ETFs in Europe is 40 bps versus 91 bps (per annum) for the
average equity index tracking fund and 180 bps (per annum) for the average active equity fund1
Securities lending • ETF units and underlying assets can be lent out to potentially offset holding costs
1. Source: Morningstar. March 2010.
How can ETFs be used?
• Market exposure:
Implement a wide variety of investment strategies using a broad range of market exposures
• Directional views:
Establish a broad directional market position, use long and short trades to implement market view(s)
• Core satellite:
Strategic
Achieve strategic focus
• Rebalancing:
Adjust drift in a portfolio’s asset allocation or style
• Completion:
Add uncorrelated instruments and/or asset classes to strategy
• Interim beta:
Maintain exposure to a given market while searching for a specific market opportunity
• Cash management:
Invest cash rapidly and cost effectively to gain desired market exposures
• Derivatives alternative:
Tactical
Broad opportunity set of Delta 1 exposures with single line cash based settlement
• Exposure management:
Shift portfolio emphasis by adjusting exposures (e.g. duration, credit)
• Thematic:
Implement thematic exposures (e.g. dividends, alternatives)
ETFs can offer solutions for a range of portfolio strategies
 Fill allocations required by investment strategy

Portfolio
 Improve diversification
construction
 Gain exposure to size, style, yield, sector, geography
• Implement short-, long- term and/or neutral market views:

Portfolio
– Hard to access asset classes, themes, sector, country
management
– Tactical asset allocation
Strategic asset • Establish core holdings

allocations • Establish single country or sector satellites
• Active risk budgeting

Risk management
• Combine ETFs in managing total portfolio volatility or duration adjustments in fixed income portfolios
• Manage inflows, outflows, transitions

Cash equitisation
• Obtain wider exposures than offered by other Delta 1 products
Exposure • Exposures to markets or asset classes where one has no expertise or operational capabilities
The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to
buy any security. There is no guarantee that any strategies discussed will be effective.
ETFs gain foothold in institutional market
• In the United States, where ETFs are most commonly thought of as a retail
product, institutional investors are finding that ETFs can be helpful tools for How ETFs are used by United States Institutions2
cash equitisation, transition management, rebalancing, and obtaining hard
to achieve exposures.
Tactical adjustments 45% 56%
• According to a recent survey by Greenwich Associates1, ETF use among
United States pension funds, endowments and foundations has grown to
about 14%, according to the results of Greenwich Associates’ most recent Transitions 38% 31%
annual study of the United States investment management market.
• Despite that relatively modest share, institutions actually represent roughly
half the assets invested in ETFs in the United States according to recent Cash equitisation 31% 63%
industry estimates.
• Almost half the institutional users in the Greenwich Associates annual Core/satellite 28% 19%
study say they employ ETFs for what they consider ‘tactical’ tasks related
to the management of their portfolios.
Rebalancing 24% 31%
• Approximately 20% of institutional ETF users say they employ the funds to
implement ‘strategic or long-term’ investment decisions, and an equal
share report that they use ETFs for both tactical and strategic purposes.
Portfolio completion 24% 25%
• Greenwich Associates asked the institutions participating in the survey to
3%
name the providers they use for ETFs. The results revealed the following:
ETF overlay 25%
– iShares/BlackRock is by far the most widely used provider of ETFs
among United States institutions; and 3%
– Most institutions that employ ETFs use more than one provider: 89% of Other 6%
institutional ETF users obtain ETFs from iShares/BlackRock, whereas
60% use SPDRs/State Street and 51% use Vanguard. 0% 15% 30% 45% 60% 75% 90% 105%
Plan sponsors Money managers
1. Greenwich Associates surveyed U.S. pension funds, endowments, foundations, and money managers that identified themselves as ETF users. Seventy institutions participated in the survey,
including 43 plan sponsors and 27 money managers. The survey was conducted from 8 March to 16 March 2010.
2. Based on responses from 70 U.S. plan sponsors and money managers using ETFs. Source 2010 Greenwich Market Pulse – ETFs.
Source: Greenwich Associates: ETFs Gain Foothold in Institutional Market, April 2010. 2010 Greenwich Market Pulse – ETFs.
ETFs gain foothold in institutional market (continued)
• Institutions cite a range of criteria used in selecting an ETF provider.

Expected change in asset allocation to ETFs1
• In addition to the obvious consideration of fees, institutions rank four
factors as particularly important in selecting an ETF provider:
liquidity, benchmark, the track record of the fund, and reputation of Increase >10% 10%
the company behind the fund.
• Almost 55% of institutions currently employing ETFs expect their

Increase 5%–10% 18%
usage of the product to increase in the next three years, including
nearly 20% that expect the amount of assets dedicated to ETFs to
grow by 5–10% in that period.
Increase 1%–4% 25%
• Money managers are slightly more apt to predict an increase
in use: approximately 65% expect to be devoting more assets
to ETFs in the next 12 months, compared with half of plan sponsors.
No change 33%
• About 20% of plan sponsors expect to reduce their use of ETFs.
• Nearly 30% of institutions that do not use ETFs say they lack Decrease -1%–4% (8%)
familiarity with the product.
• One way to address this lack of information would be for providers

to win over investment consultants, who would then be in a position Decrease -5%–10% (5%)
to explain the product to their institutional clients as both a tool for
tactical adjustments and a means of obtaining desired exposures.
Decrease >-10% (3%)
• The results of this recent Greenwich Market Pulse suggest that
many investment consultants are not currently recommending ETFs
or even initiating discussions with their clients about the product.
(20%) (10%) 0% 10% 20% 30% 40%
1. Based on responses from 70 United States plan sponsors and money managers using ETFs.
Source: Greenwich Associates: ETFs Gain Foothold in Institutional Market, April 2010. 2010 Greenwich Market Pulse – ETFs.
Growth in institutional users of ETFs
Number of institutions Number of institutions

3,000 3,000
2,500 2,500
2,000 2,000
1,500 1,500
1,000 1,000
500 500
0 0
Number of institutions 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
United States 145 241 342 561 782 889 1,010 1,154 1,333 1,559 1,781 2,045
Europe 16 29 60 152 233 302 315 351 430 461 608 618
Canada 3 7 24 32 55 68 62 58 73 77 95 101
Asia Pacific 1 1 4 11 23 19 23 35 38 51 60 79
Latin America 0 0 0 4 5 8 7 19 40 36 57 68
Other 0 0 1 2 5 11 10 10 10 30 15 15
Total 165 278 431 762 1,103 1,297 1,427 1,627 1,924 2,214 2,616 2,926
Source: Global ETF Research and Implementation Strategy Team, BlackRock, Thomson Reuters.
Global institutions reported assets: as at end December 2008
All reporting firms Reported ETF users % of ETF users

# Reported assets # Reported ETF # Reported ETF
Firm reported assets institutions (US$ Mn) institutions assets (US$ Mn) institutions assets (US$ Mn)
>50 Bn 39 5,404,681 28 68,250 71.8% 1.3%
20-50 Bn 113 3,505,831 84 69,810 74.3% 2.0%
10-20 Bn 125 1,763,371 71 35,571 56.8% 2.0%
5-10 Bn 205 1,481,979 98 15,356 47.8% 1.0%
1-5 Bn 1,216 2,638,240 428 41,249 35.2% 1.6%
500-1000 Mn 864 610,428 246 14,123 28.5% 2.3%
250-500 Mn 1,196 421,369 323 13,359 27.0% 3.2%
100-250 Mn 2,141 345,296 535 11,739 25.0% 3.4%
<100 Mn 31,542 303,393 686 4,710 2.2% 1.6%
Total 37,441 16,474,589 2,499 274,167 6.7% 1.7%
All reporting firms Reported ETF users % of ETF users

# Reported assets # Reported ETF # Reported ETF
Firm reported assets institutions (US$ Mn) institutions assets (US$ Mn) institutions assets (US$ Mn)
Investment managers 7,061 11,817,584 2,443 176,880 34.6% 1.5%
Bank and trust 493 419,345 158 15,959 32.0% 3.8%
Endowment fund 17 11,477 8 1,811 47.1% 15.8%
Finance company 2 6 – – 0.0% 0.0%
Foundation 44 11,043 2 4 4.5% 0.0%
Hedge fund 1,030 349,620 356 14,194 34.6% 4.1%
Insurance company 136 160,902 16 1,670 11.8% 1.0%
Investment advisor 4,462 10,209,252 1,857 134,501 41.6% 1.3%
Pension fund 226 553,665 38 8,692 16.8% 1.6%
Private equity 331 41,858 7 21 2.1% 0.0%
Sovereign wealth fund 15 45,210 1 28 6.7% 0.1%
Venture capital 305 15,206 – – 0.0% 0.0%
Brokerage firms 143 338,226 45 86,869 31.5% 25.7%
Strategic entities 30,237 4,318,779 11 10,418 0.0% 0.2%
Holding company 501 254,762 5 3,210 1.0% 1.3%
Government agency 97 640,813 – – 0.0% 0.0%
Corporation 29,639 3,423,204 6 7,207 0.0% 0.2%
Total 37,441 16,474,589 2,499 274,167 6.7% 1.7%
Types of institutional users of ETFs
Type of institution 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Investment advisor 109 200 319 549 802 923 1,023 1,167 1,380 1,564 1,946 2,152
Hedge fund 9 20 30 73 114 144 152 180 209 285 340 438
Bank and trust 14 19 30 67 92 109 120 139 161 174 189 193
Pension fund 5 8 9 15 22 28 28 33 45 36 45 48
Brokerage firm 14 11 15 15 16 25 28 31 37 40 45 48
Insurance company 13 19 27 39 50 60 65 66 74 80 23 17
Endowment fund 1 1 1 3 3 3 5 5 7 8 9 9
Private equity 0 0 0 0 0 0 0 0 1 4 7 9
Holding company 0 0 0 0 0 1 2 3 3 4 3 5
Corporation 0 0 0 0 1 1 1 1 4 16 5 4
Foundation 0 0 0 0 1 0 2 1 2 3 3 2
Sovereign wealth fund 0 0 0 0 0 0 0 0 0 0 0 1
Venture capital 0 0 0 1 2 3 1 1 1 0 1 0
Total 165 278 431 762 1,103 1,297 1,427 1,627 1,924 2,214 2,616 2,926
Growth in institutional users of ETFs
Country 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Country 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
United States 145 241 342 561 782 889 1,010 1,154 1,333 1,559 1,781 2,045 Japan 1 1 1 3 6 4 3 4 5 8 9 7
United Kingdom 9 12 15 25 37 55 61 55 79 87 112 120 Norway 0 0 0 0 2 3 3 3 3 4 7 7
Canada 3 7 24 32 55 68 62 58 73 77 95 101 Malaysia 0 0 0 0 0 0 0 0 0 1 2 7
Switzerland 0 3 7 19 26 35 31 48 62 62 92 94 South Africa 0 0 0 0 3 7 7 5 4 20 7 6
Spain 1 2 8 32 47 60 62 61 70 76 76 76 Finland 0 0 0 1 3 4 3 3 3 3 7 6
Germany 1 1 1 6 14 19 21 29 35 43 60 70 Denmark 0 0 0 1 1 2 3 2 1 4 5 5
France 0 2 10 24 29 32 30 36 47 42 56 59 Ireland 0 1 2 2 6 6 7 8 5 3 5 5
Luxembourg 0 1 4 10 10 13 14 16 20 19 32 33 Bermuda 0 0 0 1 2 3 3 3 3 6 4 5
Italy 4 6 7 14 20 26 26 25 24 23 41 30 Brazil 0 0 0 0 0 0 0 0 0 0 0 4
Mexico 0 0 0 0 0 0 0 0 7 11 19 24 Iceland 0 0 0 0 1 1 1 1 2 2 2 3
Sweden 0 0 2 7 12 15 17 16 17 19 20 22 India 0 0 0 0 0 0 0 0 0 0 0 2
Austria 0 0 0 3 9 11 11 7 8 12 22 21 Czech Republic 0 0 0 0 1 1 0 3 3 2 3 2
Argentina 0 0 0 0 0 0 0 6 18 7 20 21 Poland 0 0 0 0 1 0 0 0 0 0 2 2
Hong Kong 0 0 1 4 11 10 10 7 12 12 19 19 Virgin Islands (US) 0 0 0 0 0 1 0 0 1 2 1 2
Taiwan 0 0 0 0 0 0 5 14 12 12 10 19 Cayman Islands 0 0 0 0 0 0 0 1 1 1 2 1
Chile 0 0 0 4 5 6 6 12 15 18 18 18 Hungary 0 0 0 0 0 0 0 0 0 1 1 1
Liechtenstein 0 0 0 0 0 1 0 2 3 10 14 16 Bahamas 0 0 0 0 0 0 0 0 0 0 1 1
Singapore 0 0 2 4 6 5 5 9 7 10 13 16 Peru 0 0 0 0 0 2 1 1 0 0 0 1
Portugal 0 0 0 2 3 3 5 7 13 16 16 14 Thailand 0 0 0 0 0 0 0 0 0 0 0 1
Belgium 1 1 4 6 9 9 11 12 13 13 16 12 Colombia 0 0 0 0 0 0 0 0 0 0 0 0
Greece 0 0 0 0 2 5 5 9 9 9 7 11 Slovenia 0 0 0 0 0 0 0 0 0 1 1 0
Netherlands 0 0 0 0 0 1 4 8 13 10 11 9 Barbados 0 0 1 1 0 0 0 1 1 1 0 0
Australia 0 0 0 0 0 0 0 1 2 8 7 8 Total 165 278 431 762 1,103 1,297 1,427 1,627 1,924 2,214 2,616 2,926
ETF portfolios
Conservative Balanced Growth Dynamic
Fixed income Equities Property

BarCap € Government Bond 1–3 MSCI Europe ex-UK FTSE EPRA/NAREIT Global Property Yield
BarCap € Government Bond 3–5 FTSE 100 Alternatives
BarCap € Government Bond 7–10 S&P500 FTSE/Macquarie Global Infrastructure 100
iBoxx € Liquid Corporate Bond MSCI North America S&P Listed Private Equity
Nikkei 225 Dow-Jones-UBS Commodity
MSCI Emerging Markets
Lower Expected risk Higher
Lower Expected return Higher
Sample portfolios are for illustrative purposes only and should not be construed as a recommendation to purchase or sell, or an offer to sell, or a solicitation of an offer to buy any security.
Source: BlackRock.
Core-Satellite: ETFs can be used in the core portfolio, as well as in the satellite
ETFs in the core ETFs in the satellite
ETFs Portfolio
Active Active ETF ETF
strategy strategy satellite satellite
3 1
Active
ETF
strategy
satellite
2
• A broad market index. • Concentrated, focused ETFs.

• Exposure to diversified baskets of securities. • Sector and style.
• Optimised core: sector, style or country indices. • Individual countries and regions.
• Alternative asset class.
MSCI World and MSCI EM Index: weights and performance
MSCI World MSCI Emerging Markets

Country # stocks % weight % YTD return Country # stocks % weight % YTD return
Australia 72 3.9% 0.9% Brazil 75 16.4% 1.1%
Austria 8 0.1% -4.1% Chile 16 1.7% 34.4%
Belgium 13 0.4% 1.4% China 125 18.0% 1.7%
Canada 98 5.2% 6.4% Colombia 8 0.9% 49.2%
Denmark 11 0.5% 21.1% Czech Republic 4 0.4% -4.2%
Finland 17 0.5% 1.0% Egypt 10 0.5% 4.1%
France 77 4.6% -8.1% Hungary 4 0.4% -1.8%
Germany 50 3.6% -3.3% India 60 8.3% 17.0%
Greece 9 0.1% -40.0% Indonesia 22 2.4% 33.3%
Hong Kong 40 1.2% 14.8% Malaysia 39 2.9% 27.6%
Ireland 5 0.1% -24.6% Mexico 21 4.2% 8.4%
Israel 16 0.4% -1.9% Morocco 3 0.2% 6.6%
Italy 30 1.3% -15.4% Peru 3 0.7% 28.0%
Japan 340 9.9% 0.5% Philippines 12 0.5% 35.2%
Netherlands 21 1.2% -2.4% Poland 22 1.6% 8.5%
New Zealand 5 0.0% -6.7% Russia 28 6.1% 0.6%
Norway 9 0.4% -3.8% South Africa 45 7.4% 16.2%
Portugal 9 0.1% -14.0% South Korea 99 13.6% 11.5%
Singapore 30 0.8% 11.5% Taiwan 118 10.5% 0.9%
Spain 28 1.8% -17.2% Thailand 20 1.7% 42.9%
Sweden 33 1.4% 22.3% Turkey 20 1.8% 27.9%
Switzerland 37 3.6% 2.0% 1.1%
United Kingdom 105 10.1% -0.5% Total 754 100.0% 8.7%
United States 592 48.7% 2.5%
Total 1,655 100.0% 0.9%

are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.
YTD returns reflect US dollar price performance only from 31 December 2009 to 30 September 2010. Index weights captured from Bloomberg 08 October 2010.
Fixed income ETF and ETP asset growth
250 450
400
200
350
300
150
250
200
100
150
100
50
50
0 0
Assets (US$ Bn) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
ETF/ETP assets $0.1 $0.1 $4.0 $5.9 $11.1 $21.7 $35.9 $60.0 $103.9 $167.1 $209.9
# ETFs/ETPs 2 2 6 17 22 31 51 122 172 294 385

Fixed Income Index Guide
• Understanding index methodology is the key to selecting and using ETFs.

• Investors must understand the differences in pricing sources1, frequency of pricing updates and what prices are being captured:
– Where (one bank or consortium..)
– When (intraday, daily, weekly..)
– What (bid, mid, dirty…)
Barclays Markit
Citigroup eb.rexx EuroMTS FTSE JPMorgan
Capital iBoxx
Government Government Government Government Gilt Emerging market Government
Aggregate Corporate Inflation-linked Corporate
Corporate Asset backed Asset backed
Inflation-linked
1. A fund may price a security using a different pricing source than used by the Index Provider itself.
Source: Fixed Income Index Guide, BlackRock.
Comparison of fixed income index trading characteristics
Index Index Price

family Exposure calculation Price source contribution Price type
Barclays Aggregate Barclays Capital About 80% comes from Barclays Capital traders Daily Bid prices (non-government bonds)
Capital Mid prices (government bonds)
Government – term Barclays Capital Barclays Capital traders Daily Mid prices
Government – short Barclays Capital About 80% comes from Barclays Capital traders Daily Mid prices
treasury The rest comes from third party vendors
Corporate Barclays Capital About 80% comes from Barclays Capital traders Daily Bid prices
Inflation-linked Barclays Capital Barclays Capital traders Daily Mid prices
Inflation-linked world Barclays Capital Euro government, United States TIPS, United Kingdom linkers and Daily Mid prices
Japanese linkers come from Barclays Capital. Prices for Australian linkers
are taken from ABN Amro. Canadian linker prices are taken from RBC
Dominion and Swedish linker prices are taken from PMI Exchange
Citigroup Citigroup Individual Citigroup trader pricing Daily Bid prices

(Japan mid prices)
eb.rexx Deutsche Börse Eurex Bonds Intraday 9:00 am Traded price data
- 5:00 pm CET
EuroMTS EuroMTS MTS Markets Intraday 9:00 am Bid prices

- 5:30 pm CET
FTSE FTSE Gilt-Edged Market Makers Association (GEMMA) via Reuters Daily Mid prices
JP Morgan JP Morgan JP Morgan traders Daily Bid prices
Markit iBoxx Covered International Index iBoxx Consortium Intraday 8:00 am Bid prices
Company (IIC) - 4:30 pm GMT
Government – liquid International Index iBoxx Consortium Intraday 9:00 am Bid prices
capped and corporate Company (IIC) - 5:15 pm CET
$ Corporate International Index iBoxx Consortium Intraday Bid prices

Company (IIC)
Source: Fixed Income Index Guide, BlackRock.
Global commodity ETF and ETP asset growth

160 600
140
500
120
400
100
80 300
60
200
40
100
20
0 0
Assets (US$ Bn) 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3-10
Agriculture $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $2.2 $2.2 $5.6 $6.5
Alternative $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Broad - - - - $0.4 $3.5 $7.6 $5.2 $15.2 $15.9
Energy $0.0 $0.0 $0.0 $0.0 $0.1 $1.0 $1.5 $5.0 $14.2 $11.5
Livestock $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.2 $0.2 $0.1
Industrial metals - - - - - $0.0 $0.4 $0.2 $1.9 $2.6
Precious metals $0.0 $0.1 $0.3 $2.6 $6.5 $15.5 $28.8 $41.3 $80.8 $116.7
ETF/ETP total $0.0 $0.1 $0.3 $2.6 $7.0 $20.1 $40.6 $54.2 $117.8 $153.3
# ETFs/ETPs
Agriculture 2 2 2 2 2 12 21 55 66 100
Alternative 1 1 1 1 1 1 1 3 2 2
Broad - - - - 1 14 26 43 52 84
Energy 3 3 3 3 4 13 30 56 66 110
Livestock 1 1 1 1 1 4 8 14 14 18
Industrial metals - - - - - 6 11 34 43 75
Precious metals 3 3 4 7 8 15 34 59 84 153
Total ETFs/ETPs 10 10 11 14 17 65 131 264 327 542

Commodity indices
Indices are a convenient way to access a group of commodities. Indices can represent the asset class as a whole or a particular
sub-sector, such as energy, agriculture or precious metals.
• Commodity indices differ in the rules used to gain exposure to the asset class.
• Does the index track futures prices or spot prices? How often is the index rebalanced? Are there minimum and maximum weightings
for different sectors or individual commodities? Investors should be aware of these rules before investing in structured products linked
to indices.
• This section describes the components and methodologies of some of the main commodity indices. Some of the key features are
outlined below:
% accumulated US$ total return

Commodity index comparison
500%
# of Weighting Recomposition
Index commodities method frequency 400%
S&P GSCI 24 World production Monthly

300%
Rogers International
36 Discretion of committee Annual
Commodity Index 200%
Thomson Reuters/ Equal weighted within
19 Irregular
Jefferies CRB Index broad sectors 100%
Dow Jones UBS

19 Liquidity and production Annual
Commodity Index 0%
(100%)
Oct-98 Feb-01 Jun-03 Oct-05 Feb-08 Jun-10
S&P GSCI TR Thomson Reuters/Jefferies CRB Index TR

Rogers International Commodity Index TR DJ-UBS Commodity TR
are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Data as at end June 2010.
Commodity index comparison
S&P Dow Jones UBS Thomson Reuters Jefferies Rogers International

GSCI Commodity Index CRB Index Commodity Index (RICI)
DJ UBS Thomson Rogers International DJ UBS Thomson Rogers International

S&P Commodity Reuters Commodity Index S&P Commodity Reuters Commodity Index
Commodity Measure GSCI Index Jefferies CRB (RICI) Commodity Measure GSCI Index Jefferies CRB (RICI)
Energy 70.38% 31.09% 39.00% 44.00% Agriculture 12.91% 31.09% 34.00% 31.90%
WTI crude oil $/barrel 35.95% 13.92% 23.00% 21.00% Wheat $cents/bushels 2.88% 5.71% 1.00% 6.00%
Brent crude oil $/barrel 14.92% – – 14.00% Kansas wheat $cents/bushels 0.59% - - 1.00%
RBOB gasoline $cents/gallon 4.67% 3.56% 5.00% 3.00% Corn $cents/bushels 3.17% 6.83% 6.00% 4.75%
Heating oil $cents/gallon 4.63% 3.49% 5.00% 1.80% Soybeans $cents/bushels 2.33% 7.93% 6.00% 3.35%
Gasoil $/metric ton 5.95% – – 1.20% Soybean oil $cents/pound - 3.08% - 2.00%
Natural gas $/mmBtu 4.27% 10.11% 6.00% 3.00% Soybean meal $/short ton - - - 0.75%
Livestock 5.08% 6.54% 7.00% 3.00% Cotton $cents/pound 1.31% 2.21% 5.00% 4.20%
Live cattle $cents/pound 2.77% 4.00% 6.00% 2.00% Sugar $cents/pound 1.55% 2.07% 5.00% 2.00%
Feeder cattle $cents/pound 0.50% – – – Coffee $cents/pound 0.73% 3.26% 5.00% 2.00%
Lean hogs $cents/pound 1.82% 2.53% 1.00% 1.00% Cocoa $/metric ton 0.36% - 5.00% 1.00%
Precious metals 3.68% 13.04% 7.00% 7.10% Orange juice $cents/pound - - 1.00% 0.60%
Gold $/troy oz 3.28% 9.74% 6.00% 3.00% Rubber JPY/kilogram - - - 1.00%
Silver $/troy oz 0.40% 3.30% 1.00% 2.00% Lumber $/1k board fleet - - - 1.00%
Palladium $/troy oz – – – 0.30% Canola CAD/metric ton - - - 0.75%
Platinum $/troy oz – – – 1.80% Rice $/cwt - - - 0.50%
Industrial metals 7.95% 18.25% 13.00% 14.00% Oats $cents/bushels - - - 0.50%
Aluminium $/metric ton 2.51% 5.53% 6.00% 4.00% Rapeseed EUR/metric ton - - - 0.25%
Copper $/metric ton 3.48% 7.56% 6.00% 4.00% Azuki beans JPY/bag - - - 0.15%
Lead $/metric ton 0.44% - - 2.00% Greasy wool AUD/kilogram - - - 0.10%
Nickel $/metric ton 0.88% 2.77% 1.00% 1.00%
Tin $/metric ton – – – 1.00% Total 100.00% 100.01% 100.00% 100.00%
Zinc $/metric ton 0.65% 2.39% - 2.00% Data as at: May-10 Jul-10 Jan-10 Jan-10
Source: Global ETF Research and Implementation Strategy Team, BlackRock, S&P, Dow Jones, Lyxor, RICI Handbook 2010.
Leveraged/inverse ETFs
• At the end of Q3 2010 there were 285 leveraged and inverse ETFs with US$40.9 Bn assets under management from 18 providers globally.
There are currently 76 inverse/inverse leveraged ETFs in the United States and 117 inverse/inverse leveraged ETFs listed on exchanges
outside the United States.
• These types of products are designed to rebalance daily which means that investors cannot expect the ETF to achieve its stated performance
objective (-1x,-2x,+2x,+3x etc) over any period greater than one trading day. Investors can also use inverse (short) and leveraged inverse
ETFs to implement hedges and short economic exposure.
• A significant effect on longer term returns is index volatility and its effect on compounding. In periods of high volatility the relationship breaks
down as the effects of compounding become more pronounced, while in periods of low index volatility the effects are less apparent.
Example return series

Leveraged Inverse Leveraged/inverse
Index (x2) (x1) (x2)
Period Index % return ETF % return ETF % return ETF % return
Start 100.00 100.00 100.00 100.00
Day 1 102.50 2.5% 105.00 5.0% 97.50 -2.5% 95.00 -5.0%
Day 2 101.00 1.5% 101.93 2.9% 98.93 1.5% 97.78 2.9%
Day 3 98.00 -3.0% 95.87 -5.9% 101.87 3.0% 103.59 5.9%
Day 4 99.00 1.0% 97.83 2.0% 100.83 -1.0% 101.48 -2.0%
Day 5 102.00 3.0% 103.76 6.1% 97.77 -3.0% 95.33 -6.1%
Day 6 105.00 2.9% 109.86 5.9% 94.89 -2.9% 89.72 -5.9%
Day 7 110.00 4.8% 120.32 9.5% 90.38 -4.8% 81.17 -9.5%
Day 8 102.00 -7.3% 102.82 -14.5% 96.95 7.3% 92.98 14.5%
Day 9 108.00 5.9% 114.92 11.8% 91.25 -5.9% 82.04 -11.8%
Day 10 100.00 -7.4% 97.89 -14.8% 98.00 7.4% 94.20 14.8%
Total 0.0% -2.1% -2.0% -5.8%

For illustrative purposes only.
Source: BlackRock.
European ETF asset growth: physical and synthetic replication
Assets US$ Bn # ETFs
240 700
600
180
500
400
120
300
200
60
100
0 0
Assets (US$ Bn) 2005 2006 2007 2008 2009 Jul-10

Physical $41.3 $64.1 $80.6 $76.4 $125.0 $127.3
Synthetic $13.6 $25.6 $48.0 $66.4 $101.9 $108.7
Hybrid $0.4
ETF AUM total $54.9 $89.7 $128.5 $142.7 $226.9 $236.3
Physical 138 184 231 252 314 364
Synthetic 27 89 192 383 515 602
Hybrid 3
# ETFs total 165 273 423 635 829 969
Synthetic replication refers to the use of derivatives to replicate the index performance such as swaps, futures, forwards, options etc. Physical replication refers to the use of physical securities such
as stocks, bonds and commodities to generate the index performance. Hybrid replication refers to a combination of both physical and synthetic products. Data as at end July 2010.
ETFs listed globally by type of replication method
Country/region # ETFs # total listings AUM (US$ Mn)

listed Exchange Physical Synthetic Hybrid Total Physical Synthetic Hybrid Total Physical Synthetic Hybrid Total
Asia Pacific 198 50 - 248 232 123 - 355 60,657.3 12,549.2 – 73,206.4
Australia Australian Securities Exchange 11 – – 11 32 – – 32 2,855.5 – – 2,855.5
China Shanghai Stock Exchange 8 – – 8 8 – – 8 5,916.8 – – 5,916.8
Shenzhen Stock Exchange 3 – – 3 3 – – 3 3,778.5 – – 3,778.5
Hong Kong Hong Kong Stock Exchange 15 22 – 37 18 48 – 66 14,275.8 9,552.8 – 23,828.6
India Bombay Stock Exchange 2 – – 2 2 – – 2 4.6 – – 4.6
National Stock Exchange 12 – – 12 12 – – 12 285.3 – – 285.3
Indonesia Indonesia Stock Exchange 1 – – 1 1 – – 1 4.2 – – 4.2
Japan Osaka Securities Exchange 3 3 – 6 3 3 – 6 8,475.0 391.6 – 8,866.6
Tokyo Stock Exchange 62 4 – 66 64 5 – 69 16,694.1 282.6 – 16,976.6
Malaysia Bursa Malaysia Securities Berhad 4 – – 4 5 – – 5 379.0 – – 379.0
New Zealand New Zealand Stock Exchange 6 – – 6 6 – – 6 354.2 – – 354.2
Singapore Singapore Stock Exchange 5 15 – 20 10 61 – 71 477.7 2,088.9 – 2,566.6
South Korea Korea Stock Exchange 51 6 – 57 51 6 – 57 4,029.7 233.3 – 4,262.9
Taiwan Taiwan Stock Exchange 12 – – 12 14 – – 14 3,049.7 – – 3,049.7
Thailand Stock Exchange of Thailand 3 – – 3 3 – – 3 77.1 – – 77.1
Americas 843 191 4 1,038 1,144 225 4 1,373 750,461.2 33,263.9 97.4 783,822.6
Brazil BM&F Bovespa 7 - - 7 7 - - 7 1,577.9 – – 1,577.9
Canada Toronto Stock Exchange 101 48 2 151 126 48 2 176 30,033.3 2,403.1 54.3 32,490.6
Chile Bolsa Comercio Santiago – – – – 50 - - 50 – – – –
Mexico Mexican Stock Exchange 14 – – 14 240 34 - 274 8,471.1 – – 8,471.1
United States NASDAQ 66 6 – 72 66 6 - 72 28,015.7 154.2 – 28,169.9
NYSE Arca 655 137 2 794 655 137 2 794 682,363.2 30,706.6 43.2 713,113.0
continued…
Data as at end July 2010.

ETFs listed globally by type of replication method (continued)
Country/region # ETFs # total listings AUM (US$ Mn)

listed Exchange Physical Synthetic Hybrid Total Physical Synthetic Hybrid Total Physical Synthetic Hybrid Total
Europe, Middle East and Africa (EMEA) 390 603 3 996 1,183 1,958 3 3,144 129,060.0 108,694.0 384.9 238,138.9
Austria Wiener Borse 1 - - 1 7 14 - 21 49.9 – – 49.9
Belgium NYSE Euronext Brussels - 1 - 1 - 1 - 1 – 46.2 – 46.2
Finland NASDAQ OMX Helsinki 1 - - 1 1 - - 1 206.8 – – 206.8
France NYSE Euronext Paris 25 225 - 250 108 318 - 426 3,718.9 49,768.5 – 53,487.5
Germany Boerse Stuttgart - - - - 129 224 - 353 – – – –
Deutsche Boerse 103 268 - 371 258 448 - 706 41,164.6 52,016.6 – 93,181.2
Greece Athens Exchange 2 - - 2 2 - - 2 72.9 – – 72.9
Hungary Budapest Stock Exchange 1 - - 1 1 - - 1 16.6 – – 16.6
Ireland Irish Stock Exchange 1 13 - 14 1 13 - 14 23.8 253.1 – 276.9
Italy Borsa Italiana 4 9 - 13 150 292 - 442 858.8 951.3 – 1,810.1
Netherlands NYSE Euronext Amsterdam 6 5 - 11 71 35 - 106 186.9 69.0 – 255.9
Norway Oslo Stock Exchange 2 4 - 6 2 4 - 6 317.4 427.8 – 745.3
Saudi Arabia Saudi Stock Exchange 2 - - 2 2 - - 2 13.3 – – 13.3
Slovenia Ljubljana Stock Exchange 1 - - 1 1 - - 1 6.1 – – 6.1
South Africa Johannesburg Stock Exchange 24 - - 24 24 - - 24 1,788.2 – – 1,788.2
Spain Bolsa de Madrid 8 2 - 10 9 35 - 44 1,272.9 131.8 – 1,404.8
Sweden NASDAQ OMX Stockholm 7 9 - 16 7 39 - 46 1,411.0 709.6 – 2,120.7
Switzerland SIX Swiss Exchange 81 4 - 85 181 280 - 461 28,247.6 55.1 – 28,302.8
Turkey Istanbul Stock Exchange 10 - - 10 10 - - 10 128.2 – – 128.2
UAE Abu Dhabi - 1 1 - 1 - 1 – 4.4 – 4.4
United Kingdom London Stock Exchange 111 62 3 176 183 224 3 410 49,575.9 4,260.4 384.9 54,221.2
Chi-X (not an official exchange) - - - - 13 16 - 29 – – – –
Turquoise (not an official exchange) - - - - 23 14 - 37 – – – –
Total 1,431 844 7 2,282 2,559 2,306 7 4,872 940,179 154,507.1 482.3 1,095,168.0
Data as at end July 2010.

Structures of ETFs and ETNs
General product features common to ETFs and ETNs are: Specific features of swap-based ETFs are:
• Exchange traded. • Fund holds a basket of securities (which can be different from
the underlying index securities) and an index swap.
• Easy accessible investment vehicles for a wide range of
asset classes. • The swap counterparty risk is limited to a maximum of 10% of
the value of the fund under UCITS rules.
• Low tracking error.
• The investor has recourse to the basket of securities in the case
• Exposure to market risk of the asset class/index. of failure of the fund issuer.
Specific features of physical ETFs are: • Structure allows compliance with UCITS rules on more indices
• Fund holds underlying securities in a ring-fenced separate than physical ETFs (i.e. commodity ETFs).
account exposing the investor to no counterparty risk of • Sometimes tax advantages possible (i.e. avoidance of
the issuer. stamp tax).
• In the case of failure of the fund issuer, the investor has • While multiple market-makers can price swap-based ETFs on-
recourse directly to the pool of underlying shares or bonds. and off-exchange, every creation and redemption with the fund
• High transparency with regards to the holdings of the fund. company generally involves a single swap counterparty.
• Opportunity for additional income to further reduce costs (i.e. Specific features of ETNs are:
through securities lending inside the ETF) is better than for • Investor owns a note, exposing the investor to the counterparty
other ETPs as physical ETFs hold index securities. risk of the note issuer which is sometimes mitigated through
• Multiple market-makers can create and redeem new shares with collateral or guarantees.
the fund company promoting a highly competitive pricing, both • More flexibility to issue products, i.e. on single commodities
on- and off-exchange (‘multi-dealer model’). and currencies.
• Possible access to structured product type solutions.
Structures of ETFs and ETNs (continued)
Exchange Traded Funds (ETFs) Exchange Traded Notes (ETNs)
Exchange listed Yes Yes
Easily accessible investment vehicles for a

Yes Yes
range of asset classes
Low tracking error Yes Yes
Low costs Yes Mostly
Exposure to market risk of the asset

Yes Yes
class/index
Structure Mutual fund Note
UCITS fund Yes1 No
Index swap plus a basket of non-index

Underlying holdings Index securities for physical ETFs N/A
securities for swap-based ETFs
No, mutual funds hold assets in separate ring-fenced Yes, full exposure to credit
Fund/note issuer risk
segregated accounts or a ring-fenced fund company worthiness of note issuer
Yes, for swap-based ETFs but limited to

Swap counterparty risk No, for physical ETFs N/A
10% under UCITS
Some notes are backed by physical assets

Other counterparty risk considerations Securities lending and dividend enhancement activity2
or guarantees to decrease issuer risk
Yes, full holdings disclosed

Transparency Limited for swap-based ETFs Limited
for physical ETFs
Competitive multi-dealer model to trade on-

Yes, possible for physical ETFs Limited for swap-based ETFs Limited
and off-exchange
1. With exemptions possible.

2. In addition to securities lending, the fund can earn extra income through dividend enhancement. Dividend enhancement describes partly recovering withholding taxes through the purchase of
listed single stock notes during the period of dividend payments.
Source: BlackRock.
Key tax considerations
Example: iShares MSCI Emerging Markets: European versus United States listed funds
Local shares 2.71% European listed 2.71%

ETF Non-United States
(3.01% based investor
gross divdends) Net dividends (Irish domiciled) Gross dividends
(9.91% withholding (no withholding out of the ETF)
[blended rate])
United states listed

Local shares 2.77% ETF 1.94%1 Non-United States
gross divdends) Net dividends (United states Net dividends
(8.06% withholding domiciled) (up to 30%2 withholding)
[blended rate])
United states listed

Local shares 2.77% ETF 2.77% United States
Gross divdends) Net dividends (United states Gross dividends
(8.06% withholding domiciled) (no withholding out of the ETF)
[blended rate])
1. Assumes impact of maximum rate.

2. Maximum rate, lower rate may apply based on local tax treaties with United States.
The information given does not constitute tax or legal advice and prospective investors should consult their own professional advisers as to the implications of their subscribing for, purchasing,
holding, switching or disposing of shares under the laws of the jurisdiction in which they may be subject to tax. Tax legislation may change.
Source: BlackRock, July 2009.
Delta 1 products comparison
ETFs Futures Swaps
Round trip execution costs Commission, bid/ask spread Commission, bid/ask spread Usually commission
Holding cost Total Expense Ratio (TER) Roll, basis risk, margin Financing
Tracking error Yes No No
Minimum trade size 1 share 1 contract Variable on exposure
Expiry No Monthly, quarterly Fixed
Available to lend Yes No No
Legal structure Fund Listed derivative OTC derivative
Liquidity provided Exchange dealers Exchange dealers Single dealer
Liquidity: the ETF transaction process
Primary market Secondary market
Securities Cash (OTC)

ETF market
ETF manager Investor
makers/broker
ETF ETF
Cash
ETF¹
Exchange
1. ETF or Creation Basket.
Appendix: regulatory update
FINRA regulatory notice 09-31
FINRA, the Financial Industry Regulatory Authority which regulates all securities firms doing business in the United States, issued a regulatory notice in
June 2009 to provide guidance on leveraged and inverse ETFs. The notice states that "...inverse and leveraged ETFs that are reset daily typically are
unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets...”.
The following is taken from the notice: Exchange-traded funds (ETFs) that offer leverage or that are designed to perform inversely to the index or benchmark
they track – or both – are growing in number and popularity. While such products may be useful in some sophisticated trading strategies, they are highly
complex financial instruments that are typically designed to achieve their stated objectives on a daily basis. Due to the effects of compounding, their
performance over longer periods of time can differ significantly from their stated daily objective. Therefore, inverse and leveraged ETFs that are reset daily
typically are unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets.
This Notice reminds firms of their sales practice obligations in connection with leveraged and inverse ETFs. In particular, recommendations to customers must
be suitable and based on a full understanding of the terms and features of the product recommended; sales materials related to leveraged and inverse ETFs
must be fair and accurate; and firms must have adequate supervisory procedures in place to ensure that these obligations are met.
Most leveraged and inverse ETFs “reset” daily, meaning that they are designed to achieve their stated objectives on a daily basis. Due to the effect of
compounding, their performance over longer periods of time can differ significantly from the performance (or inverse of the performance) of their underlying
index or benchmark during the same period of time. For example, between December 1, 2008, and April 30, 2009:
• The Dow Jones U.S. Oil and Gas Index gained 2 percent, while an ETF seeking to deliver twice the index's daily return fell 6 percent and the related
ETF seeking to deliver twice the inverse of the index's daily return fell 26 percent.
• An ETF seeking to deliver three times the daily return of the Russell 1000 Financial Services Index fell 53 percent while the index actually gained
around 8 percent. The related ETF seeking to deliver three times the inverse of the index's daily return declined by 90 percent over the same period.
This effect can be magnified in volatile markets. Using a two-day example, if the index goes from 100 to close at 101 on the first day and back down to close at
100 on the next day, the two-day return of an inverse ETF will be different than if the index had moved up to close at 110 the first day but then back down to
close at 100 on the next day. In the first case with low volatility, the inverse ETF loses 0.02 percent; but in the more volatile scenario the inverse ETF loses
1.82 percent. The effects of mathematical compounding can grow significantly over time, leading to scenarios such as those noted above.
Source: Regulatory Notice 09-31, Financial Industry Regulatory Authority.
Appendix: regulatory update (continued)
UK Retail Distribution Review (RDR) update
On 26 March 2010, FSA published its feedback statement (Policy Statement 10/6) to its Consultation Paper of June 2009 (CP09/18) relating to proposals to
improve the clarity with which adviser firms describe their services to consumers, and introduce a system of ‘adviser-charging’ to remove the potential
commission-bias through the influence of product providers.
The Policy Statement contains final rules in relation to ‘adviser-charging’ and ‘service-labelling’ and FSA will proceed with the proposals set out in the
consultation. Therefore, with effect from 1 January 2013, advisers will be prevented from receiving commissions paid by product providers. FSA notes that it
wants adviser firms to have charging structures that are product neutral in that the charges reflect the services provided to the client, not the particular product
provider or type of product. Product providers are no longer required to monitor ‘appropriate adviser-charging’ (with reference to so-called ‘decency limits’)
though there remains a requirement to obtain and validate instructions from the client if the charge is deducted (by the provider) from the client’s investment.
This creates a significant challenge for providers as due to a result of increasing disintermediation, in part due to the growth of platforms, the end-consumer will
not be a direct client of the firm. FSA accepts that bespoke share classes to provide for a full range of possible adviser charges (when taken from funds) is
impractical and recognises the value of cash accounts provided by platforms or other third-parties to collect adviser charges. This is a particularly important
development for factory-gate priced products such as most ETFs, however, it is uncertain whether the current practice of rebating a proportion of the annual
management charge, if this is used to fund the consumer cash account, will be acceptable and FSA states that it intends to consult further on whether any
rebates should be prohibited.
In addition, FSA will proceed with proposals for advisers to describe the advice provided as either independent or ‘restricted’. As noted in previous editions,
firms offering independent advice will need to demonstrate that their recommendations are based on a comprehensive and unbiased analysis of the market
and that any products selected are made in the interests of clients. If a firm elects to limit its product range to certain investments or strategies, it will need to
describe the services it offers as ‘restricted’ and this fact must be clearly disclosed to the consumer. FSA notes that it may be possible for certain advisers
servicing specialist client groups to retain the independence ‘label’ even where certain products are excluded from the scope of their advice, although the firm
would have to demonstrate that the product or strategy was not appropriate for their clients. FSA observes that this exception is unlikely to be of benefit to most
firms since most retail investment products are likely to be appropriate for the vast majority of retail investors. Separately, FSA notes it was clear from
responses received that it was not widely understood that ETFs already fall within the current definition of packaged products and for the avoidance of doubt, it
is made clear that any products which might achieve similar outcomes as more traditional retail investment products are potentially caught by the new rules.
Source: Policy Statement 10/6, Distribution of retail investments: Delivering the RDR – feedback to CP09/18 and final rules, Financial Services Authority, BlackRock.
UK Retail Distribution Review (RDR) update (continued)
In addition to the feedback statement, FSA has also published the long-awaited Discussion Paper on the role of platforms in facilitating the delivery of the RDR
objectives. In particular, the paper discusses how platforms should be remunerated in a post-RDR world and FSA has made clear that its ultimate objective is
to separate or ‘unbundle’ product and platform charges to provide greater transparency to consumers. FSA expresses a clear preference for the ‘wrap’ model
where either the consumer pays a wrap fee or product charges are rebated, although clearly the latter scenario will be subject to further consideration. FSA
goes on to say that it would be prepared to prevent all payments to platforms by product providers as it observes that payments are often to secure ‘shelf-
space’, have little relationship to the utility service provided by the platform and typically are used for purposes which do not directly benefit the consumer, a
view which draws strong parallels with the position under the MiFID Inducements regime. This is not FSA’s final view on this topic but it does clearly call into
question the economics of how platforms will be paid post-RDR.
There is no requirement for platforms to extend their service model to be able to trade listed instruments such as ETFs, but with the increasing adoption of
ETFs by advisers, many platforms are already reviewing and building the functionality to provide wider securities access. Also, in response to calls from the
industry, the FSA intends to make compulsory the transferability of investments from one platform to another.
The FSA intends to formally consult on proposals to regulate platforms in the summer and expects to publish final rules by the end of this year, which does not
give platforms a significant amount of time to implement the necessary changes to their business models, which will inevitably require significant input from
product providers and the adviser community. Comments on the Discussion Paper are invited up to and including 26 May and BlackRock, like many of our
competitors, continue to work with the Investment Management Association and other industry practitioners to ensure that our views are fully represented in
ongoing discussions with the FSA.
Source: Policy Statement 10/6, Distribution of retail investments: Delivering the RDR – feedback to CP09/18 and final rules, Financial Services Authority, BlackRock.
Australia’s future of financial advice reform
The Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP, said that the Future of Financial Advice reforms are designed
to tackle conflicts of interest that have threatened the quality of financial advice that has been provided to Australian investors, and the mis-selling of
financial products.
• No more new commissions from 2012. Ban on commissions and volume-based payments and any other type of remuneration structure that creates a
conflict of interest for the adviser. The ban applies to all retail investment products including managed investments, superannuation and margin loans
but the ban won’t apply to risk insurance products.
• Must act in the best interests of clients. From 1 July 2012, all financial advisers will be subject to a statutory fiduciary duty to act in the best interests
of clients.
• Introduction of ‘product neutral’ adviser charging regime.
• Advisers can charge asset-based fees, but not on borrowed money. The client must agree with the asset-based fee. One of the greediest tactics used
by some commission-based advisers was to recommend that a client borrow money to invest, and then charge a commission on the borrowed money
as well.
• Remove exemption for accountants to provide advice on self-managed super funds (SMSFs). This change will cause quite a
few ripples in the accounting profession, but there is positive news for this sector. The Government also mentions introducing a streamlined licensing
regime for accountants advising on SMSFs.
• Simpler disclosure information for clients. Financial Services Guides (FSG) must be more effective at disclosing any restrictions on the adviser when
providing advice, any potential conflicts of interest and how the adviser is remunerated.
• ASIC (Australian Securities and Investments Commission) to be given more powers to ban individuals from providing advice.
• Review definitions of retail (unsophisticated) or wholesale (sophisticated) clients.
• Review of professional standards for financial advisers. The Government will appoint a panel to review professional standards, including conduct and
competency standards, and potentially a code of ethics.
• Consider possibility of introducing a statutory compensation scheme to compensate clients of financial advisers.
Source: Super Guide, Treasury Ministers Portal, The Future of Financial Advice, Information Pack, 26 April 2010.
SEC-FINRA investor alert on leveraged and inverse etfs1
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) issued an investor alert on Tuesday 18 August 2009
entitled ‘Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors’:
“The SEC staff and FINRA are issuing this Alert because we believe individual investors may be confused about the performance objectives of leveraged
and inverse exchange-traded funds (ETFs). Leveraged and inverse ETFs typically are designed to achieve their stated performance objectives on a daily
basis. Some investors might invest in these ETFs with the expectation that the ETFs may meet their stated daily performance objectives over the long
term as well. Investors should be aware that performance of these ETFs over a period longer than one day can differ significantly from their stated daily
performance objectives.”
CFTC hearings on energy position limits and hedge exemptions2
U.S. Commodity Futures Trading Commission (CFTC) held hearings on Energy Position Limits and Hedge Exemptions on 28 July , 29 July and 5 August , on
whether federal position limits should be set on the energy markets.
The hearings provided critical input from a wide range of industry participants and academics to the Commission’s efforts to examine different approaches to
regulate energy markets. The Commodity Exchange Act states that the Commission shall impose limits on trading and positions as necessary to eliminate,
diminish or prevent the undue burdens on interstate commerce that may result from excessive speculation. The CFTC’s hearings examined the role of position
limits in energy markets in fulfilling the CFTC’s mission to ensure the fair, open and efficient functioning of futures markets.
Goldman Sachs, JPMorgan Chase and other leading banks are exempt from most commodity-trading limits in order to manage risks as they serve as market
makers. The Commodity Futures Trading Commission is looking into whether those exemptions should stand, as it considers blanket limits on a variety of
commodity markets.
A number of ETPs/ ETFs providing exposure to commodities have recently issued notices that they have suspended their creation process.
1. Source: Leveraged and Inverse ETFs: Specialized Products with Extra Risks for Buy-and-Hold Investors, Financial Industry Regulatory Authority.
2. Source: Hearings on Energy Position Limits and Hedge Exemptions, U.S. Commodity Futures Trading Commission.
SEC approves new stock-by-stock circuit breaker rules1
On 10 June 2010, the Securities and Exchange Commission (SEC) approved rules that will require the exchanges and the Financial Industry Regulatory
Authority (FINRA) to pause trading in certain individual stocks if the price moves 10% or more in a five-minute period. The proposal from the SEC and FINRA
came in response to the market disruption of 6 May 2010, which saw $862 Bn of share value wiped out in 20 minutes.
Under the rules, trading in a stock would pause across U.S. equity markets for a five-minute period in the event that the stock experiences a 10 percent change
in price over the preceding five minutes. The pause, which would apply to stocks in the S&P 500® Index, would give the markets the opportunity to attract new
trading interest in an affected stock, establish a reasonable market price, and resume trading in a fair and orderly fashion. Initially, these new rules would be in
effect on a pilot basis through 10 December 2010.
SEC approves rules expanding stock-by-stock circuit breakers and clarifying process for breaking erroneous trades2
On 10 September 2010, the Securities and Exchange Commission (SEC) approved new rules submitted by the national securities exchanges and FINRA to
expand a recently-adopted circuit breaker program to include all stocks in the Russell 1000 Index and certain exchange-traded funds. The SEC also approved
new exchange and FINRA rules that clarify the process for breaking erroneous trades.
The circuit breaker pilot program was approved in June in response to the market disruption of 6 May and currently applies to stocks listed in the S&P 500
Index. Trading in a security included in the program is paused for a five-minute period if the security experiences a 10 percent price change over the preceding
five minutes. The pause gives the markets an opportunity to attract new trading interest in an affected stock, establish a reasonable market price, and resume
trading in a fair and orderly fashion. The circuit breaker program is in effect on a pilot basis through 10 December 2010.
1. Source: Press Release: SEC approves New Stock-by-Stock Circuit Breaker Rules, 2010-98, U.S. Securities and Exchange Commission. Bloomberg.
2. Source: Press Release: SEC Approves Rules Expanding Stock-by-Stock Circuit Breakers and Clarifying Process for Breaking Erroneous Trades, 2010-167, U.S. Securities and
Exchange Commission.
Can an ETF Collapse

The Financial Times article printed on Monday, September 20, 2010, “Can ETFs Collapse?” The authors’ general assertions regarding the “unfunded liability”
caused by ETF short selling are inaccurate. The primary reasons are both legal and structural.
How do ETFs creation/redemption mechanism work to prevent a “collapse”?

An ETFs prospectus, SAIs, and agreements with Authorized Participants (APs) (required to create/redeem shares) provide the Funds with the right to refuse
any order (creation or redemption) that is deemed to be placed in improper form. Among other reasons, an order may be deemed in “improper form” if they
exceed or approach a significant portion of total shares outstanding. In short, AP firms MUST be able to settle orders placed with the funds. Any concern of
their ability to do so may cause the fund manager to request additional information from the AP to validate that ability prior to accepting a redemption order.
BlackRock has defined additional criteria under which Authorized Participants are required to operate when transacting with the fund. For example, as outlined
in the “Legal and Beneficial Ownership” section of the SAI-- a Redemption Request may not be accepted by the Fund unless it is first ascertained that the
shares “have not been loaned or pledged to another party and are not the subject of a repurchase agreement, securities lending agreement or any other
arrangement affecting legal or beneficial ownership or precluding the tender of such ETFs for redemption.”
The articles authors do not distinguish between short sales in which shares are delivered to the purchaser and “naked” short sales, in which no shares are
delivered and the short sale “fails” indefinitely. While naked short sales occur, they are not legal. The problem for ETFs identified by the authors could only
occur if a very significant amount of short sales were “naked”. Nothing we have seen supports this, and “naked” shorting to such a degree would pose other
major issues for securities markets (which is why “naked” shorting has received much scrutiny in recent years).
If there are naked short sellers holding ETF securities and they redeem from a fund, what happens to the remaining owners of the fund?
The settlement of a redemption order requires that shares be delivered to an ETF for cancellation. Shares that have been delivered in settlement of a short
sale may in turn be delivered to an ETF in settlement of a redemption, but in such circumstances such shares cannot also be delivered to settle a redemption
by the original owner who lent the shares. The original owner does not have any shares to deliver to settle a redemption unless it recalls the loaned shares
from the short seller. If it does so, however, the short seller will have to buy other outstanding shares to return and close out its short position. Thus, more
shares may be held by investors than there are shares outstanding only if short positions make up the difference. If all of the investors try to redeem at once,
the short positions have to be unwound and only the number of shares actually outstanding can be delivered to settle redemptions.
Source: iShares/BlackRock, Talking Points, Can an ETF Collapse, September 2010.
SEC proposal to replace rule 12b-11
The Securities and Exchange Commission (SEC) is proposing a new rule and rule amendments that would replace rule 12b–1 under the Investment Company
Act, the rule that has permitted registered open-end management investment companies (‘‘mutual funds’’ or ‘‘funds’’) to use fund assets to pay for the cost of
promoting sales of fund shares. The new rule and amendments would continue to allow funds to bear promotional costs within certain limits, and would also
preserve the ability of funds to provide investors with alternatives for paying sales charges. Unlike the current rule 12b–1 framework, the proposed rules would
limit the cumulative sales charges each investor pays, no matter how they are imposed. To help investors make better-informed choices when selecting a fund
that imposes sales charges, the Commission is also proposing to require clearer disclosure about all sales charges in fund prospectuses, annual and semi-
annual reports to shareholders, and in investor confirmation statements.
As part of the new regulatory framework, the Commission is proposing to give funds and their underwriters the option of offering classes of shares that could
be sold by dealers with sales charges set at competitively established rates – rates that could better reflect the services offered by the particular intermediary
and the value investors place on those services. For funds electing this option, the proposal would provide relief from restrictions that currently limit retail price
competition for distribution services.
The proposed rule and rule amendments are designed to protect individual investors from paying disproportionate amounts of sales charges in certain share
classes, promote investor understanding of fees, eliminate outdated requirements, provide a more appropriate role for fund directors, and allow greater
competition among funds and intermediaries in setting sales loads and distribution fees generally.
SEC evaluating the use of derivatives by funds2
The following is taken from the SEC’s press release announced on 25 March 2010: The SEC staff is conducting a review to evaluate the use of derivatives by
mutual funds, exchange-traded funds (ETFs) and other investment companies. The review will examine whether and what additional protections are necessary
for those funds under the Investment Company Act of 1940.
Pending the review's completion, the SEC has determined to defer consideration of exemptive requests under the Investment Company Act to permit ETFs
that would make significant investments in derivatives. The staff's decision will affect new and pending exemptive requests from certain actively-managed and
leveraged ETFs that particularly rely on swaps and other derivative instruments to achieve their investment objectives. The deferral does not affect any existing
ETFs or other types of fund applications.
“It's appropriate to engage in a more thorough review of the use of derivatives by ETFs and mutual funds given the questions surrounding the risks associated
with the derivative instruments underlying many funds,” said SEC Chairman Mary Schapiro.
1. Source: Federal Register, Mutual Fund Distribution Fees; Confirmations; Proposed Rule, August 4, 2010, Securities and Exchange Commission.
2. Source: Press Release: SEC Staff Evaluating the Use of Derivatives by Funds, 2010-45, U.S. Securities and Exchange Commission.
Changes to United States tax law may affect non-United States resident holders of United States ETFs
Funds registered under the Investment Company Act of 1940 and structured for tax purposes as Regulated Investment Companies (RICs) under the U.S. Tax
Code were previously allowed a package of U.S. tax benefits to non-U.S. shareholders (generally called ‘flow-through’ benefits) as a result of the 2004
American Jobs Creation Act. These flow-through benefits have generally expired as of 31-Dec-09.
The three effected flow-through benefits are:
• Exemption from U.S. withholding tax (30% or lower treaty rate) on fund distributions where such distributions represent Qualified Interest Income (QII).
QII is certain fund income derived from interest income on debt of U.S. resident issuers (i.e., obligations issued by Treasury and U.S. corporations).
This applied to fixed income ETFs.
• Exemption from U.S. withholding tax on any short-term capital gains included in fund distributions. This applied to fixed income and equity ETFs.
• Relief from U.S. Estate Tax on fund holdings by non-U.S. resident persons, where the underlying assets would have been exempt from Estate Tax if
held directly by the non-U.S. resident person.
The purpose of these three flow-through benefits was to allow a non-U.S. resident RIC shareholder the same treatment on a flow-through basis as if the
investments were owned directly by the non-U.S. resident RIC shareholder.
FATCA (foreign account withholding provisions in the HIRE Act)
The United States Congress recently passed the HIRE Act, which contains provisions still commonly known as FATCA (the legislation previously being the
Foreign Account Tax Compliance Act).
FATCA is a system designed at getting financial institutions (of all descriptions) around the world to identify United States investors – even where they hold
indirectly via non-United States entities – and report details of these to the IRS. This responds to high levels of political concern in the United States over tax
evasion, especially by wealthy individuals.
Source: BlackRock, April 2010.
Changes to United States tax law may affect non-United States resident holders of United States ETFs (continued)
FATCA (foreign account withholding provisions in the HIRE Act) (continued)
In order to encourage compliance with this legislation, the United States will from 1 January 2013 impose a 30% United States withholding tax on the gross
sales proceeds (as well as income) derived by any part of that financial institution from holdings of United States financial assets – unless that institution
agrees to enter the reporting regime. Funds and fund managers are included in the definition of 'Foreign Financial Institutions' (FFIs) and so FATCA goes
greatly wider in reach than the existing 'Qualified Intermediary' system, with which it will coexist.
The impacts on the financial world are undoubtedly complex and potentially far reaching. The basic wording of the HIRE Act leaves many questions of detail
unanswered, so financial institutions are waiting keenly for draft regulations to be issued by the United States Treasury later this year.
It does however currently appear that holdings of United States ETFs by non-United States investors would be subject to the 30% withholding from gross sales
proceeds, where held through a non-United States financial intermediary who does not become FATCA compliant when the regime goes live in 2013.
Source: BlackRock, April 2010.
2010 ETF ecosystem
ETFs
Regulations
ETPs Tax ETNs

Fund
Manager/provider ratings
Exchange
Consultants Index ETF
provider Investor research:
banks,
brokers,
Market managers
Liquidity maker
provider
Fund
supermarkets
ETF portals,
ETVs websites, ETCs
centres
Source: Global ETF Research and Implementation Strategy Team, BlackRock.
ETF Landscape reports
ETF Landscape quarterly global handbook
• Includes the price tickers, index tickers, annual total expense ratio (TER), dividend policy, fund structure, assets under management
(AUM), average daily volume, index replication method as well as the websites for the providers, exchanges, and index providers to
assist in comparing the various products that are currently available.
ETF Landscape monthly industry review
• Provides an up-to-date snapshot of the latest key industry trends with a view to helping professional investors make more
informed decisions
Subscribe
• Sign up at no cost by sending your business card details to: ETFresearch@blackrock.com
Disclaimer
Regulatory information
• BlackRock Advisors (UK) Limited (‘BlackRock’), which is authorised and regulated by the Financial Services Authority in the United Kingdom, has
issued this document for access by professional clients and for information purposes only. This document or any portion hereof may not be reprinted,
sold or redistributed without authorisation from BlackRock.
• This communication is being made available to persons who are investment professionals as that term is defined in Article 19 of the Financial Services
and Markets Act 2000 (Financial Promotion Order) 2005 or its equivalent under any other applicable law or regulation in the relevant jurisdiction. It is
directed at persons who have professional experience in matters relating to investments.
• This document is an independent market commentary document based on publicly available information and is produced by the ETF Research and
Implementation Strategy team. Specifically, this is not marketing nor is it an offer to buy or sell any security or to participate in any trading strategy.
Affiliated companies of BlackRock may make markets in the securities of ETFs and provide ETFs in the form of iShares. Further, BlackRock and/or its
affiliated companies and/or their employees may from time to time hold shares or holdings in the underlying shares of, or options on, any security of
ETFs and may as principal or agent buy securities in ETFs.
• The opinions expressed are those of BlackRock as of September 2010, and are subject to change at any time due to changes in market or economic
conditions. They should not be construed as a recommendation, investment advice, offer or solicitation to buy or sell any securities or to adopt any
investment strategy. In particular, BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly
does not make any remark on their suitability. Prospective investors should take their own independent advice prior to making an investment decision.
• This document does not provide investment advice and the information contained within should not be relied upon in assessing whether or not to invest
in the products mentioned. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The
securities discussed in this commentary may not be suitable for all investors. BlackRock recommends that investors independently evaluate each issuer,
security or instrument discussed in this publication and encourages investors to seek the advice of a financial adviser. The appropriateness of a
particular investment or strategy will depend on an investor’s individual circumstances and objectives.
• The value of and income from any investment may go up or down and an investor may not get back the amount invested. The value of the investment
involving exposure to foreign currencies can be affected by exchange rate movements. We also remind you that the levels and bases of, and reliefs
from, taxation can change and is dependent upon individual circumstances.
• Although BlackRock endeavours to update and ensure the accuracy of the content of this document BlackRock does not warrant or guarantee its
accuracy or correctness. Despite the exercise of all due care, some information in this document may have changed since publication. Investors should
obtain and read the ETF prospectuses from the ETF Providers and confirm any relevant information with ETF Providers before investing. Neither
BlackRock, nor any affiliate, nor any of their respective, officers, directors, partners, or employees accepts any liability whatsoever for any direct or
consequential loss arising from any use of this publication or its contents.
• The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or
representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of
any kind relating to such data.
• © 2010 BlackRock Advisors (UK) Limited. Registered Company No 00796793. All rights reserved. Calls may be monitored or recorded.

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ETF Landscape

Deborah Fuhr, Managing Director

I. Current ETF and ETP landscape 3

Data as at end Q3 2010.

Assets US$ Bn # products

Data as at end Q3 2010.

Global US Europe Japan Asia ex-Japan Latin America Canada

Data as at end Q3 2010.

Q3-10 YTD change

Data as at end Q3 2010.

Q3-10 YTD change

Data as at end Q3 2010.

Q3-10 YTD change

Mixed 36 $0.9 0.1% -1 $0.2 37.4%

Data as at end Q3 2010.

# ETFs ADV Assets NNA YTD-10 NNA 2009 NNA

# ETFs ADV Assets NNA YTD-10 NNA 2009 NNA

Total 2,470 60,577.6 1,182,998.6 32,973.0 110,380.4 176,409.4

Global ETF/ETP NNA approximated by combining US and European flows.

Q3-10 YTD change

Data as at end Q3 2010.

Q3-10 YTD change

Data as at end Q3 2010.

Data as at end Q3 2010.

Q3-10 YTD change

Data as at end Q3 2010.

Ranked by assets Ranked by US$ Average Daily Trading Volumes (ADV)

Data as at end Q3 2010.

6 Germany 91 406 6 1.1

7 Israel 300 300 7 13.3

8 Italy - 47 - - Asia Pacific Asia Pacific (continued)

11 United Arab Emirates 1 1 1 0.0 14 Hong Kong - 1 - - 17 Singapore - 2 - -

Data as at end Q3 2010.

Assets (US$ Bn) # products

Data as at end Q3 2010.

Q3-10 YTD change

Data as at end Q3 2010.

Q3-10 YTD change

Q3-10 YTD change

# ETFs ADV Assets NNA YTD-10 NNA 2009 NNA

NNA – Net New Assets. Data as at end Q3 2010.

# ETFs ADV Assets NNA YTD-10 NNA 2009 NNA

# ETFs ADV Assets NNA YTD-10 NNA 2009 NNA

Total 1,051 57,331.7 902,327.2 27,973.9 76,059.3 119,469.1

NNA – Net New Assets. Data as at end Q3 2010.

Total 181 7,082.1 32,679.0 (235.6) 6,844.3 12,978.1

NNA – Net New Assets. Data as at end Q3 2010.

Index total ETF AUM ETF short

Index total ETF AUM ETF short

Q3-10 YTD change

International 162 $103.1 12.9% 14 $6.1 6.3% International - equity 12.9%

Sector 144 $76.7 9.6% 10 $4.5 6.2% Sector - equity 9.6%

Total 890 $797.2 100.0% 118 $91.7 13.0%

Data as at end Q3 2010.

Q3-10 YTD change

S&P 171 $224.7 28.2% 21 $6.9 3.2% Russell 8.5%

NYSE Euronext 10 $8.2 1.0% 2 $2.0 33.2% WisdomTree 0.9%

Zacks 11 $0.6 0.1% -2 $0.1 18.2% Zacks 0.1%

Data as at end Q3 2010.

Data as at end Q3 2010.

Average TER (bps)

Open-end mutual funds2

1. As at end February 2010.

Data as at mid September 2010.