Overall ETF Ranking: Sample $20,000 $18,000 $16,000 $14,000 $12,000 $10,000

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1 EXCHANGE TRADED FUND REPORT TM January 18, 2018 $87.99 $ % Price (as of Jan. 18,2018) NAV (as of Jan. 18, 2018) Premium/Discount ETF Ranking Details (as of 1/18/18) Category Equity Type Multi-cap OVERWEIGHT MARKETWEIGHT UNDERWEIGHT Performance Analytics: STARS 98% Fair Value 95% Technical OVERWEIGHT Risk Considerations: MARKETWEIGHT S&P GMI's Qual. Rank 87% Risk Assess. 97% UNDERWEIGHT S&P Global Credit Rtng 100% Standard Deviation OVERWEIGHT Cost Factors: MARKETWEIGHT Expense Ratio (Gross) Price to NAV UNDERWEIGHT Bid/Ask Spread Key ETF Statistics (Yield as of 12/31/17; Performance as of 1/18/18) 12-Month (%) Return Year CAGR (%) Return Year CAGR (%) Return -- ETF Constituents Breakdown (%) (as of 12/31/17) Overall ETF Ranking: OVERWEIGHT ETF Commentary (January 18, 2018): VLUE seeks to track the price performance of the underlying holdings in the MSCI USA Value Weighted Index. Three broad input categories are used to calculate the overall ranking for VLUE within the universe of 1106 ranked Equity ETFs. Based on CFRA's proprietary Performance Analytics we have an Overweight outlook for VLUE generally employing inputs from STARS, Fair Value, and Technical Indicators. We believe S&P Quality Rank, Risk Assessment, and Credit Rating, along with Standard Deviation, are important risk measures, and we view VLUE's Risk Considerations as Marketweight compared to other ETFs in its asset class. Finally, our assessments for cost factors such as expense ratio and Price to NAV lead to an Overweight ranking. VLUE's Top Ten holdings were 36.7% of total assets. VLUE has total assets of $3.6 billion. The Total Market Capitalization of VLUE's holdings is $3.6 billion. Index Tracked: The MSCI USA Value Weighted Index is based on a traditional market cap weighted parent index, the MSCI USA Index, which includes US large and mid cap stocks. The index reweights each security of the parent index to emphasize stocks with higher accounting values compared to the accounting values of the constituents in the parent index. ETF Rankings are derived from the holdings-weighted average score of all available holdings within the ETF (such as STARS) or of the ETF itself (such as Standard Deviation). Note: Percentages highlight the percentage CFRA coverage of the underlying holdings. Additional information on the Ranking can be found in the Disclosures section of this report. 12-Mth Yld/30-day SEC Yld(%) 2.14/ Week Range $ $88.05 Average Daily Volume 342,775 U.S. % INTL. % Mega Cap 74 1 Large Cap 23 2 Mid Cap < 1 < 1 Small Cap Micro Cap Weighted Average Market Cap: $175,662,985,664 Median Market Cap: $16,153,730,000 Equity 97 3 Real Estate Fixed Income Commodities Other < 1 ETF Comparison (Ranking, Market Price as of 1/18/18; Performance as of 3/31/17) Mkt Cap (as of 01/18/18) 3,607.6M Shares Outstanding 41,000,000 Turnover 26.0% Performance of $10,000 Investment (4/30/13-12/31/17) $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 Inception Date 4/16/13 Exchange BAT Assets (as of 01/18/18) 3,606.0M ETF $18, as of 12/31/17 Style Index: S&P 1500 Supercomposite Total Return Index $18, as of 12/31/ Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Current performance may be lower or higher than the performance data quoted; current to the most recent month-end performance information can be obtained at or Total Return does not take into account fees and expenses. If fees and expenses had been included, performance would have been lower. Index performance excludes management fees, transaction costs and expenses. Indexes are unmanaged and one cannot invest directly in an index. VLUE ishares Edge MSCI USA Value Factor ETF $ Average Annual Market Price Total Returns (%) Ticker Exchange Traded Fund Ranking Market Price Exp. Ratio (%) 1 Year 5 Year 10 Year Since Inception IYK ishares US Consumer Goods ETF $ IWD ishares Russell 1000 Value ETF $ IUSV ishares Core S&P US Value ETF $ EMSD WisdomTree Strong Dollar Emerging Markets Equity Fund $ FNDX Schwab Fundamental US Large Company Index ETF $ Note: Comparisons are based on the classification assigned to the ETF and the overall CFRA Ranking. Since Inception returns are annualized except for ETFs that are less than one year old. For ETFs that are less than one year old, Since Inception performance is cumulative. Besides performance, unique differences exist between the ETFs shown including, among others, structure, objectives, costs and expenses. These differences should be carefully reviewed before an investment determination is made. Please read the Required Disclosures on the last page of this report. Page 1 of 7

2 Shares Outstanding and Total Net Assets (as of 12/31/17) 38,000K 36,000K 34,000K 32,000K 30,000K Shares Outstanding Total Net Assets Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 ETF Market Perspective (as of 12/13/17) In the first 11 months of 2017, US based Equity ETFs gathered approximately $295 billion of new money, easily exceeding all of 2016's inflows. U.S. Equity focused ETFs experienced $147 billion of inflows with robust demand during November. Meanwhile, global and international equity ETFs gathered nearly $150 billion of new money, as non-currency hedged regional and broad products were popular; in 2016 international flows were modest.while smart-beta strategies have gained traction, the five most popular equity ETFs in 2017 were tied to the S&P 500 or market-cap weighted developed international indices. Among sector ETFs, financial and technology were the most popular in 2017, while consumer staples and utilities had outflows. Commodity ETFs had slight $1.4 billion inflows thus far in 2017, even as energy-based products had $1.3 billion of net outflows.ishares and Vanguard benefited most from the growing demand for ETFs, but many other providers have seen strong inflows. Total Return (%) (as of 1/18/18) $3B $2.8B $2.6B $2.4B $2.2B Additional Key ETF Characteristics (as of 12/31/17) Underlying Index NAV Ticker -- Intraday NAV Ticker -- IPO NAV $50.26 Family Manager M2USVWGT BlackRock Fund Advisors Passively Managed Telephone CUSIP 46432F388 Number of Holdings 152 Expense Ratio (Gross) 0.15 Expense Ratio (Net) 0.15 Fiscal year End 7/31/17 Optionable No Average P/E Ratio Average Price/Cash Flow Average Price/Book Howard Street San Francisco, CA Year Market Price Performance (as of 1/18/18) VLUE $ Volume 4M 2M 200 Day Moving Avg Worst 3 Mos % Best 3-Month 11/1/16-1/31/17 Best 3 Mos % Average Daily Volume (Shares) 1 Month 345,277 3 Month 322,736 6 Month 259,681 Average Annual YTD 1 Year 3 Year 5 Year 10 Year Average Daily Value Traded (Dollar) 1 Month $29,482,188 3 Month $26,688,074 6 Month $20,736,420 Worst 3-Month 11/1/15-1/31/16 Average Daily Volume (% of Total Assets) Close 1/18/18 $ Month 0.88% 3 Month 0.88% 6 Month 0.75% Since Inception Market Price Net Asset Value Peers S&P 1500 Supercomp TR IX Average Annual Total Return (%) (as of 12/31/17) 1 Year 5 Year 10 Year Since Inception Market Price NAV Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Current performance may be lower or higher than the performance data quoted; current to the most recent month-end performance information can be obtained at or Total Return does not take into account fees and expenses. If fees and expenses had been included, performance would have been lower. Risk Analysis (%) (as of 12/31/17) 3 Year 5 Year 10 Year Since Inception Beta Standard Deviation (Mkt Price) - Annualized Standard Deviation (NAV) - Annualized Sharpe Ratio (Mkt Price) - Annualized Sharpe Ratio (NAV) - Annualized Mean R-Squared Alpha Page 2 of 7

3 Market Commentary (as of 12/13/17) Economic Sector Representation (as of 12/31/17) CFRA's Investment Policy Committee voted to establish its year-end 2018 price target for the S&P 500 at 2800, implying a 6.5% price appreciation over the December 5 closing value. The committee cited an expected 2.8% gain in U.S. Real GDP in the coming year, versus the 2.3% growth likely seen for 2017, combined with a modest anticipated y/y increase in core inflation to 2.1% by the fourth quarter of next year. In addition, while consensus estimates from S&P Global point to a near-11% y/y gain in S&P 500 operating EPS for all of 2018, we think the tax cut working its way through Congress remains supportive of equity ownership, but is not reflected in current Wall Street estimates, due to a lack of detail and certainty. Finally, the lack of attractive alternatives in this rate-tightening environment continues to favor equity ownership. ADP reported that private payrolls increased 190K in November after the 235K jump in October. In addition, Q3 productivity growth held at the 3.0% pace, as it was in the preliminary, and it compares with a gain of 1.5% in Q2 and a 0.1% rise in Q1.Now that the third-quarter EPS reporting period is essentially over, analysts are looking toward Q4 and 2018 results; S&P Capital IQ consensus estimates currently indicate a year-over-year advance of 10.4% for Q4, leading to a gain of 10.8% for calendar year In addition, 10 of 11 sectors are projected to post positive Q4 performances, with superior growth coming from the energy, financials, materials and tech sectors. The weakest growth (sub-2%) should come from health care, industrials and telecom, while real estate delivers a double-digit decline.eps growth for 2018 stands at 10.7%, accompanied by increases for all 11 sectors, and led by above-market growth for the energy, financials, materials and tech groups, but sub-4% growth for real estate, telecom and utilities. S&P 500 revenues are expected to rise 6.6% in Q4, as well as up 6.8% for all of 2017 and 4.3% in Finally, the S&P 500 currently trades at 18.8X next 12-month estimates, which is a 15% premium to the 16.3X average since Top 10 ETF Holdings (Holdings last reported on 12/31/17; rankings as of 1/19/18) Ticker Name GICS Sectors % Consumer Discretionary Consumer Staples 7.87 Energy 6.07 Financials Health Care Industrials Information Technology Materials 2.78 Real Estate 2.94 Telecom Services 2.06 Utilities 2.86 Top 5 Industry Equity Holdings % of Assets (as of 12/31/17) Technology Hardware, Storage & Peripherals Banks 8.58 Semiconductors & Semic. Equipment 6.03 Health Care Providers & Services 5.91 Food & Staples Retailing 5.82 Top 5 Total % of Assets Developed vs Emerging Markets % of Assets (as of 12/31/17) Developed Emerging 0.26 Unclassified Top 5 Sub-Industry Equity Holdings % of Assets (as of 12/31/17) Technology Hardware, Storage & Peripherals Diversified Banks 7.88 Automobile Manufacturers 5.72 Semiconductors 5.68 Pharmaceuticals 5.14 Top 5 Total % of Assets Top 5 Country Holdings % of Assets (as of 12/31/17) % of ETF Assets STARS YTD Return United States Ireland 1.52 United Kingdom 1.00 Bermuda 0.24 Singapore 0.16 Top 5 Total % of Assets S&P GMI's Quality Rank Fair Value 1 AAPL Apple Inc B+ 5 2 GM General Motors Co NR 4 3 INTC Intel Corp B+ 4 4 PFE Pfizer Inc B+ 2 5 WMT Wal-Mart Stores Inc A 2 6 CSCO Cisco Systems Inc B+ 3 7 BAC Bank of America Corp B- 4 8 CVX Chevron Corp B 3 9 C Citigroup Inc B JPM JPMorgan Chase & Co A- 3 Top 10 Total % of Assets * 4.65% -- * 3.7 * * Represents a holdings-weighted average of STARS rankings of the Top 10 Holdings of the portfolio. Averages are only calculated if rankings are available for all Top 10 holdings. 'NR' Not Ranked All of the fund performance information contained in this report was supplied by Lipper, A Thomson Reuters Company, subject to the following: Copyright 2018 Thomson Reuters. All rights reserved. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Page 3 of 7

4 * Recommended Asset Allocations CONSERVATIVE US Equity 30% Foreign Equity 10% Fixed Income 40% Cash 20% MODERATE US Equity 45% Foreign Equity 20% Fixed Income 25% Cash 10% AGGRESSIVE US Equity 55% Foreign Equity 25% Fixed Income 13% Cash 7% Highest Scoring ETFs by Asset Grouping (as of 1/18/18) Domestic Equity Large-cap Growth Large-cap Value Large-cap Core Mid-cap Growth Mid-cap Value Mid-cap Core Small-cap Growth Small-cap Value Small-cap Core Multi-cap Foreign Equity Asia/Pacific Asia ex-japan Canada Emerging Markets Europe Global International Specialty Equity Dividends Volatility MLP Real Estate GICS Sectors Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Telecom Services Utilities Real Estate ishares S&P 500 Growth ETF (IVW), Vanguard S&P 500 Growth Index Fund;... (VOOG), Vanguard Growth Index Fund; ETF Clas... (VUG) ishares S&P 500 Value ETF (IVE), Vanguard Value Index Fund; ETF Shares (VTV), Vanguard Russell 1000 Value Index Fu... (VONV) ishares Morningstar Large-Cap ETF (JKD), ishares S&P 100 ETF (OEF), SPDR Dow Jones Industrial Average ET... (DIA) Vanguard Mid-Cap Growth Index Fund;... (VOT), ishares Russell Mid-Cap Growth ETF (IWP), Vanguard S&P Mid-Cap 400 Growth Inde... (IVOG) Vanguard Mid-Cap Value Index Fund; E... (VOE), ishares Russell Mid-Cap Value ETF (IWS), ishares Morningstar Mid-Cap Value ETF (JKI) Vanguard Mid-Cap Index Fund; ETF Shares (VO), ishares Morningstar Mid-Cap ETF (JKG), ishares Russell Mid-Cap ETF (IWR) Vanguard Small-Cap Growth Index Fund... (VBK), ishares Russell 2000 Growth ETF (IWO) FlexShares Morningstar US Market Fac... (TILT), Vanguard Small-Cap Value Index Fund;... (VBR), ishares Morningstar Small-Cap Value ETF (JKL) Vanguard Small-Cap Index Fund; ETF S... (VB), ishares Russell 2000 ETF (IWM), Schwab US Small-Cap ETF (SCHA), ishares US Consumer Goods ETF (IYK), ishares Russell 1000 Value ETF (IWD) Vanguard Pacific Stock Index Fund;Va... (VPL), Franklin FTSE Japan ETF (FLJP), Franklin FTSE Japan Hedged ETF (FLJH) Xtrackers MSCI Asia Pacific ex Japan... (DBAP), Global X Scientific Beta Asia ex-jap... (SCIX), ishares MSCI All Country Asia ex Jap... (AAXJ) Franklin FTSE Canada ETF (FLCA), IQ Canada Small Cap ETF (CNDA), SPDR MSCI Canada StrategicFactors ETF (QCAN) ishares MSCI Turkey ETF (TUR), ishares Edge MSCI Multifactor Emergi... (EMGF), Xtrackers MSCI South Korea Hedged Eq... (DBKO) Global X MSCI Portugal ETF (PGAL), Franklin FTSE Italy ETF (FLIY), SPDR STOXX Europe 50 ETF (FEU) PowerShares QQQ Trust, Series 1 (QQQ), ishares MSCI ACWI ETF (ACWI), Vanguard Total World Stock Index Fun... (VT) SPDR S&P International Small Cap ETF (GWX), Vanguard FTSE All-World ex-us Small-... (VSS), Vanguard Total International Stock I... (VXUS) SPDR S&P Emerging Markets Dividend ETF (EDIV), WisdomTree Japan Hedged SmallCap Equ... (DXJS), WisdomTree US LargeCap Dividend Fund (DLN) Powershares S&P 500 Low Volatility P... (SPLV), ishares Edge MSCI Min Vol Europe ETF (EUMV), ishares Edge MSCI Min Vol USA ETF (USMV) Global X MLP & Energy Infrastructure... (MLPX), First Trust North American Energy In... (EMLP), Alerian MLP ETF (AMLP) VanEck Vectors Mortgage REIT Income ETF (MORT), ishares Mortgage Real Estate ETF (REM), Global X SuperDividend REIT ETF (SRET) Consumer Discretionary Select Sector... (XLY), SPDR S&P Homebuilders ETF (XHB), ishares US Home Construction ETF (ITB) Vanguard Consumer Staples Index Fund... (VDC), Consumer Staples Select Sector SPDR... (XLP), Fidelity MSCI Consumer Staples Index... (FSTA) Energy Select Sector SPDR Fund (XLE), Fidelity MSCI Energy Index ETF (FENY), ishares US Energy ETF (IYE) Vanguard Financials Index Fund; ETF... (VFH), ishares US Insurance ETF (IAK), WisdomTree Japan Hedged Financials Fund (DXJF) Health Care Select Sector SPDR Fund (XLV), Fidelity MSCI Health Care Index ETF (FHLC), Guggenheim S&P 500 Equal Weight Heal... (RYH) Industrial Select Sector SPDR Fund (XLI), Fidelity MSCI Industrials Index ETF (FIDU), Vanguard Industrials Index Fund; ETF... (VIS) Technology Select Sector SPDR Fund (XLK), Fidelity MSCI Information Technology... (FTEC), ishares US Technology ETF (IYW) VanEck Vectors Junior Gold Miners ETF (GDXJ), Sprott Junior Gold Miners ETF (SGDJ), Global X Gold Explorers ETF (GOEX) Vanguard Telecommunication Services... (VOX), First Trust NASDAQ Smartphone Index... (FONE), Fidelity MSCI Telecommunications Ser... (FCOM) Guggenheim Solar ETF (TAN), Fidelity MSCI Utilities Index ETF (FUTY), Utilities Select Sector SPDR Fund (XLU) VanEck Vectors Mortgage REIT Income ETF (MORT), ishares Mortgage Real Estate ETF (REM), Global X SuperDividend REIT ETF (SRET) * The CFRA Investment Policy Committee s asset allocations are based on market expectations and are subject to change. The Highest Scoring ETFs by Asset Grouping listed above are based on their Overall ETF Ranking. No consideration was given to non-ranking issues as amount of assets under management, number of outstanding shareholders and length of time available to investors. The above listing of ETFs is for informational purposes only and is not a recommendation to buy, sell, or hold the ETFs, nor is it considered to be investment advice. All investment involves risks including the possible loss of principal and that there is no guarantee that any fund will achieve its objective. Please see each ETF's prospectus for the specific risks associated with an investment in the ETF. Page 4 of 7

5 Glossary 12-Month Yield (%). A measure of the rate of return on the income distributions in the past 12 months. The yield is computed by dividing the sum of the income dividends paid during the previous twelve months (or the previous 52 weeks for periods ending at any time other than month-end) by the latest NAV or market price/maximum offer price, adjusted for capital gains distributions. (The adjusted ending NAV/Market Price is calculated as the ending NAV/Market Price plus 100% of cap gains within last 3 months plus 50% of the cap gains between the last 4 to 9 months). "NP" is shown when the Fund has not provided data for the Standardized 30-day SEC yield. 30-day SEC Yield. The SEC yield, reported by the fund, is based on a 30-day period ending on the last day of the previous month. 'NP' is shown when the Fund has not provided data. Alpha. A cumulative return measure of an ETF s performance relative to an index after allowing for differences in risk. Asset Grouping. A category in which specific ETFs are grouped on the basis of similar holdings-based characteristics, such as market capitalization and style (e.g. Large Cap Growth); geography (e.g. Europe); and sector emphasis (e.g. Consumer Discretionary). Assets. Dollar value of assets in the ETF calculated by the ETF's Daily NAV and Daily Shares Outstanding. Average Annual Total Return. Calculated as the average annual compounded rate of return as of the end of the last calendar quarter. The calculation assumes reinvestment of distributions. Average Daily Volume. The average daily trading volume of the ETF for the past 20 days, shown in millions. Average P/E Ratio. A weighted average calculation of stock price-to-earnings ratio for the ETF s equity holdings. Average Price/Book. A weighted average calculation of stock price-to-book value ratio for the ETF s equity holdings. Average Price/Cash Flow. A weighted average calculation of stock price-to-cash flow ratio for the ETF s equity holdings. Best 3-Month Return/Period. Based on month-end returns, the most favorable three-month return to shareholders of the ETF over a rolling 3-year period. Beta. Measurement of an ETF s price sensitivity to changes in the price of the CFRA selected benchmark. For example, a beta of 2 means than the price of the ETF has moved, on average, twice as much as the benchmark. Bid/Ask Spread. A measurement of the relative gap between the offer price to buy shares of an ETF, and the price at which another party is willing to sell. As an input to the ETF Ranking, CFRA evaluates the 5-day moving average Bid/Ask Spread of the ETF compared with other ranked ETFs. Category. The asset class of the ETF. Cumulative Return. The actual return of an investment at the end of a specified period of time. The calculation includes price changes and assumes reinvestment of all distributions of dividends and capital gains. Exchange. Principal exchange on which shares of the ETF are traded. ARX = NYSE Arca ASE = NYSE Amex NGM = NASDAQ Global Market NNM = NASDAQ National Market NYS = NYSE OTC = OTC Market Expense Ratio (Gross, Net). Operating expense as a percentage of average assets, before (or net of) management fees, disbursements or other expenses as published in the ETF's prospectus. As an input to the ETF Ranking, CFRA evaluates the ETF's Gross Expense Ratio compared with other ranked ETFs. Fiscal Year End. For financial accounting purposes, the month when the ETF s operating year ends. GICS. An industry classification standard, developed by S&P Global Market Intelligence in collaboration with Morgan Stanley Capital International (MSCI). Under the GICS structure, companies are classified in one of 157 sub-industries, which are grouped into 68 industries, 24 industry groups, and 11 economic sectors (consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, real estate, telecom services, and utilities). This four-tier structure accommodates companies across the world and facilitates sector analysis and investing. Inception Date. Date on which shares of the ETF began publicly trading. IPO NAV. The NAV at the inception date of the fund. Market Cap. ETF market price multiplied by number of shares outstanding. Market Price Total Return. The Total Return of an ETF, based on the 4PM closing market price at the beginning and end of the holding period, which does not represent the returns an investor would receive if shares were traded at other times. Market price return may be different from the ETF's NAV return. Mean. Calculated as the average of the one-month total returns over a certain time period. Moving Average. Average price of the ETF during a recent trading period, eg. 200 days. NAV Total Return. The Total Return of an ETF, based on its NAV at the beginning and end of the holding period. This may be different from the ETF's Market Price Return. Net Asset Value. This is a calculation, on a per share basis, of the ETF s underlying net worth. It is derived, at a given point in time, by subtracting the value of the ETF s liabilities from the value of the ETF s assets, and then dividing this by the number of ETF shares outstanding. Optionable. This depicts whether stock options related to the ETF s shares are available. Premium/Discount. The percent by which the selling or purchase price of an ETF is greater than (Premium) or less than (Discount) its net asset value (NAV). Price-to-NAV. Represents the relationship between the share price of the ETF and the net asset value (NAV) per share of the underlying holdings. As an input to the ETF Ranking, CFRA evaluates the 5-day moving average Price-to-NAV of the ETF compared with other ETFs. R-Squared. Measures the degree to which a fund's behavior is correlated to its category benchmark. S&P Global Credit Rating. The S&P Global Credit Rating is an issuer credit rating, a forward-looking opinion about an obligor's overall financial capacity (its creditworthiness) to pay its financial obligations. This opinion focuses on the obligor's capacity and willingness to meet its financial commitments as they come due. It does not apply to any specific financial obligation, as it does not take into account the nature of and provisions of the obligation, its standing in bankruptcy or liquidation, statutory preferences, or the legality and enforceability of the obligation. In addition, it does not take into account the creditworthiness of the guarantors, insurers, or other forms of credit enhancement on the obligation. Counterparty credit ratings, ratings assigned under the Corporate Credit Rating Service (formerly called the Credit Assessment Service) and sovereign credit ratings are all forms of issuer credit ratings. Issuer credit ratings can be either long term or short term. Short-term issuer credit ratings reflect the obligor's creditworthiness over a short-term time horizon. As an input to the ETF Ranking, CFRA evaluates the weighted average Credit Rating of the underlying holdings of the ETF compared with other ranked ETFs. Fair Value Rank. Using CFRA's exclusive proprietary quantitative model, stocks are ranked in one of five groups. The Fair Value rankings range from: 5-Stock is significantly undervalued relative to the Fair Value universe; 1-Stock is significantly overvalued relative to the Fair Value universe. As an input to the ETF Ranking, CFRA evaluates the weighted average Fair Value Rank of the underlying holdings of the ETF compared with other ranked ETFs. Peers. Peers include those ETFs that have the same CFRA style classification. CFRA uses information pulled from an ETF s prospectus to assign a classification based on 40 inputs. We review an ETF s classification on a regular basis and as such an ETF may periodically shift as new data becomes available. Qualitative Risk Assessment. Reflects an equity analyst's view of a given company's operational risk, or the risk of a firm's ability to continue as an ongoing concern. The Qualitative Risk Assessment is a relative ranking to the U.S. STARS universe, and should be reflective of risk factors related to a company's operations, as opposed to risk and volatility measures associated with share prices. For an ETF this reflects on a capitalizationweighted basis, the average qualitative risk assessment assigned to holdings of the fund. As an input to the ETF Ranking, CFRA evaluates the weighted average Qualitative Risk Assessment of the underlying holdings of the ETF compared with other ranked ETFs. S&P Global Market Intelligence's Quality Rank. Growth and stability of earnings and dividends are deemed key elements in establishing S&P Global Market Intelligence's Quality Rankings for common stocks, which are designed to encapsulate the nature of this record in a single symbol. It should be noted, however, that the process also takes into consideration certain adjustments and modifications deemed desirable in establishing such rankings. The final score for each stock is measured against a scoring matrix determined by analysis of the scores of a large and representative sample of stocks. Rankings range from A+ (Highest) to C (Lowest) and D (In Reorganization). As an input to the ETF Ranking, CFRA evaluates the weighted average S&P Global Market Intelligence's Quality Rank of the underlying holdings of the ETF compared with other ranked ETFs. STARS. Since January 1, 1987, CFRA Equity and Fund Research Services, and its predecessor S&P Capital IQ Equity Research has ranked a universe of U.S. common stocks, ADRs (American Depositary Receipts), and ADSs (American Depositary Shares) based on a given equity s potential for future performance. Similarly, we have ranked Asian and European equities since June 30, Under proprietary STARS (STock Appreciation Ranking System), equity analysts rank equities according to their individual forecast of an equity s future total return potential versus the expected total return of a relevant benchmark (e.g., a regional index (S&P Asia 50 Index, S&P Europe 350 Index or S&P 500 Index)), based on a 12-month time horizon. STARS was designed to meet the needs of investors looking to put their investment decisions in perspective. Data used to assist in determining the STARS ranking may be the result of the analyst s own models as well as internal proprietary models resulting from dynamic data inputs. As an input to the ETF Ranking, CFRA evaluates the weighted average STARS of the underlying holdings of the ETF compared with other ranked ETFs. Technical. In researching the past market history of prices and trading volume for each company, CFRA's computer models apply special technical methods and formulas to identify and project price trends for the ETF. Shares Outstanding. Number of ETF shares owned by third parties. Sharpe Ratio. A measure of a fund's historical returns adjusted for risk, or volatility. Standard Deviation. A historical measure of the variability of an ETF s returns. If a fund has a high standard deviation, its returns have been relatively volatile; a low standard deviation indicates returns have been less volatile. As an input to the ETF Ranking, CFRA evaluates the ETF's three-year standard deviation compared with other ETFs in its category. Style Index. An index, as determined by CFRA, against which CFRA believes it is reasonable to measure the ETF s historical performance, based on risk (volatility) and return. This Index may not be the same as the fund's chosen tracking index. Total Return. Calculated as a rate of return at the end of a specified period of time. The calculation includes price changes and assumes reinvestment of all distributions of dividends and capital gains. Total return can be calculated as an average annual or cumulative return. Turnover. The frequency at which the portfolio is changed during a year, as reported by the fund. Type. CFRA designated type describing what CFRA believes is the investment emphasis of a given ETF. Worst 3-Month Return Period. Based on month-end returns, the worst three-month return to shareholders of the ETF over a rolling 3-year period. Page 5 of 7

6 Required Disclosures S&P GLOBAL is used under license. The owner of this trademark is S&P Global Inc. or its affiliate, which are not affiliated with CFRA Research or the author of this content. ETFs may not be appropriate for all investors. To determine if this ETF is an appropriate investment for you, carefully consider the ETF s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the ETF s prospectus, which may be obtained by calling [ ] or visiting the ETF s website at [ This report is for informational purposes only. When using this report, investors are advised to consult the accompanying glossary of investment terms. Total return performance is historical and assumes reinvestment of all dividends and capital gain distributions.past performance is no guarantee of future results. Investment return and principal value will fluctuate so that, when redeemed, an investor s shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted; performance current to the most recent month-end can be obtained at www. blackrock.com or ETFs issue and redeem shares at net asset value ( NAV ) only in large blocks of shares called Creation Units, or multiples thereof. Only broker dealers and large institutional investors with creation and redemption agreements, called Authorized Participants ( APs ) can purchase and redeem Creation Units. ETFs are subject to risks similar to those of stocks, including those regarding short selling, margin account maintenance and loss of principal. Investors buying or selling ETF shares on the secondary market may incur brokerage costs and other transactional fees. Risk disclaimers Investments are subject to investment risks including the possible loss of the principal amount invested. The ETF may be subject, but not limited, to the following investment risks: ETF Risk Shares of an ETF may trade above or below their NAV. Shares will fluctuate in price due to daily volume changes. However, the market prices of Shares will generally fluctuate in accordance with changes in NAV as well as the relative supply of, and demand for, Shares on the Exchange. During periods of market volatility the trading price of Shares may deviate significantly from the NAV. Market risk. ETFs are typically designed to track the performance of certain indices, market sectors, or groups of assets such as stocks, bonds, or commodities. The market value of an ETF may decline due to general market conditions and the volatility associated with the underlying indices or assets can result in a loss of the ETF s value. Tracking error risk. The ETF s goal is to track a specific market index or asset, normally referred as fund target index. The discrepancy between the ETF s performance and the performance of its target index is known as tracking error. A variety of factors can create a performance gap between ETF and its target index such as the impact of transaction fees and expenses incurred by the ETF, changes in composition of the underlying index/assets, the ETF manager s replication strategy and sampling techniques, and the timing of purchases and redemptions of fund shares. Concentration risk. An ETF's portfolio reflects the underlying Index's concentration in the securities of a particular issuer or issuers, which means that the fund may invest a relatively high percentage of its assets in a limited number of issuers. Therefore, the ETF's performance may be more vulnerable to changes in the market value of a single issuer or group of issuers and more susceptible to risks associated Equity Investing Risk The ETF invests in equity securities, which are subject to changes in value that may be attributable to market perception of a particular issuer or to general stock market fluctuations that affect all issuers. Investments in equity securities may be more volatile than those in other asset classes. Special risks are involved with significant exposure to a particular sector, including increased susceptibility related to economic, business or other developments affecting that sector Small and midsize company risk. Small and midsize companies carry additional risks because the operating histories of these companies tend to be more limited, their earnings and revenues less predictable, and their share prices more volatile than those of larger, more established companies. The shares of smaller companies tend to trade less frequently than those of larger, more established companies, which can adversely affect the pricing of these securities and the ETF's ability to sell these securities. Large cap stock risk. Stocks of large cap companies may underperform the stocks of lower quality, or smaller capitalization companies during periods when the stocks of such companies are in favor. Growth securities risk. Growth companies generally seek to achieve high earning growth regardless of market conditions. Growth stocks usually have high price-to-earnings and price-to-book ratios, which means that these stocks are relatively high-priced in comparison with the companies' Net Asset Values (NAVs). Stocks of growth companies or growth securities have market values that may be more volatile than those of other types of investments. Growth securities typically do not pay a dividend, which can help cushion stock prices in market downturns and reduce potential losses. Value securities risk. Value stocks are those that generally have fallen out of favor in the marketplace and are considered bargain-priced compared with book value, replacement value, or liquidation value. Typically, value stocks are priced much lower than stocks of similar companies in the same industry. The prices of value stocks may lag the stock market for long periods of time if the market fails to recognize the company s intrinsic worth. International Equity Risk Foreign investment risk. ETF s investments in foreign securities may be subject to political, social and economic factors affecting investments in foreign issuers. Special risks associated with investments in foreign issuers include exposure to currency fluctuations, less liquidity, less developed or less efficient trading markets, lack of comprehensive company information, political and economic instability and differing auditing and legal standards. Foreign currency risk. Investments in foreign currencies are subject to the risk that those currencies will decline in value relative to the U.S. dollar or, in the case of hedged positions, that the U.S. dollar will decline relative to the currency being hedged. Currency exchange rates may fluctuate significantly over short periods of time. Foreign currencies are also subject to risks caused by inflation, interest rates, budget deficits and low savings rates, political factors and government intervention and controls. Emerging market risk. The securities of issuers located in emerging markets tend to be more volatile and less liquid than securities of issuers located in more developed economies, and emerging markets generally have less diverse and less developed economic structures and less stable political systems than those of developed countries. The securities of issuers located or doing substantial business in emerging markets are often subject to rapid and large changes in price. Ranking Methodology & Inputs ETF overall ranking provides quantitative and holistic assessment of the performance, risk profile and relative costs of a given ETF compared with all ETFs in its Category with an overall ETF ranking. Rankings range from Overweight (highest) to Underweight (lowest) and follow a normalized distribution curve. To generate the ETF Ranking, ETF s holdings and characteristics are analyzed across three components - Performance Analytics, Risk Considerations, and Cost Factors. The overall ETF ranking is based on a weighted average score of the three components. For equity ETFs, this analysis incorporates the following: Performance Analytics The component ranking is a weighted average score of up to three inputs STARS, IQ Fair Value and Technical. Risk Considerations This component ranking is a weighted average score of up to four inputs S&P Global Market Intelligence's Quality Rank, Risk Assessments, S&P Global Credit Rating and Standard Deviation. Cost Factors This component ranking is a weighted average score of up to three inputs Gross Expense Ratio, Price-to-NAV and Bid/Ask Spread. Component rankings and the Overall ETF Ranking are represented as Overweight, Marketweight or Underweight indications, following a normalized distribution curve: Overweight rankings are assigned to approximately the top quartile of the asset class. Marketweight rankings are assigned to approximately the second and third quartiles of the asset class. Underweight rankings are assigned to approximately the bottom quartile of the asset class. In cases where sufficient analytical measures are not available on underlying assets, the ranking will be displayed as NA for Not Available All of the views expressed in this research report accurately reflect our quantitative research models regarding any and all of the subject securities or issuers. No part of our compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. An ETF may receive an overall ETF ranking even when the ETF does not have a ranking for each of the ten input factors. The ranking for a component or input factor is based upon all ETFs with a ranking for that component or input factor and can include ETFs without an overall ETF ranking. In cases where sufficient analytical measures are not available on holdings data, the ranking will be displayed as NA for Not Available CFRA classifies an ETF by region (e.g., U.S. Domestic Equity or Asia Developed Markets), type or style (Growth, Value or Core), Market Capitalization (Large-Cap, Mid-Cap or Small-Cap), and one of ten GICS sectors. For more details on ETF classification, please refer to the methodology document, CFRA s Exchange-Traded Fund (ETF) Methodology, located at All of the views expressed an ETF report accurately reflects our quantitative research models regarding any and all of the subject securities or issuers. No part of our compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in an ETF report. An ETF may receive an overall ETF ranking even when the ETF does not have a ranking for each of the ten input factors. The ranking for a component or input factor is based upon all ETFs with a ranking for that component or input Page 6 of 7

7 ETF Ranking Methodology & Inputs factor and can include ETFs without an overall ETF ranking. In cases where sufficient analytical measures are not available on holdings data, the ranking will be displayed as NA for Not Available. ETF are classified by region (e.g., U.S. Domestic Equity or Asia Developed Markets), type or style (Growth, Value or Core), Market Capitalization (Large-Cap, Mid-Cap or Small-Cap), and one of ten GICS sectors. ETFs are not assigned Buy, Hold or Sell ratings. Overweight, Marketweight and Underweight are not the equivalent of buy, hold and sell recommendations but represent recommended relative weightings (as described above). For disclosure purposes only and to satisfy regulatory requirement, Overweight ranking corresponds to a buy recommendation; Marketweight to a hold recommendation and Underweight to Sell recommendation. The Overweight/ Buy, Marketweight/Hold, and Underweight/Sell ranking distribution is a fixed distribution based on the relative weightings describe above. Overweight/Buy represents 25% of the total distribution and ETFs in the top quartile. Marketweight/Hold represents 50% of the total distribution and ETFs in the 2 middle quartiles. Underweight/Sell represents 25% of the total distribution and ETFs in the bottom quartile. Other disclaimers About CFRA Equity Research's Distributors: This report is published and originally distributed by Accounting Research & Analytics, LLC d/b/a CFRA, with the following exceptions: In the UK/EU/EEA, it is published and originally distributed by CFRA UK Limited, which is regulated by the Financial Conduct Authority (No ), and in Malaysia by Standard & Poor s Malaysia Sdn. Bhd ( CFRA Malaysia ), which is regulated by Securities Commission Malaysia (No. CMSL/A0181/2007). These parties and their subsidiaries maintain no responsibility for reports redistributed by third parties such as brokers or financial advisors. General Disclaimers Notice to all jurisdictions: Where ETF Reports are made available in a language other than English and in the case of inconsistencies between the English and translated versions of a ETF Reports, the English version will control and supersede any ambiguities associated with any part or section of a ETF Report that has been issued in a foreign language. Neither CFRA nor its affiliates guarantee the accuracy of the translation. The content of this report and the opinions expressed herein are those of CFRA based upon publicly-available information that CFRA believes to be reliable and the opinions are subject to change without notice. This analysis has not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body. While CFRA exercised due care in compiling this analysis, CFRA AND ALL RELATED ENTITIES SPECIFICALLY DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, to the full extent permitted by law, regarding the accuracy, completeness, or usefulness of this information and assumes no liability with respect to the consequences of relying on this information for investment or other purposes. No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of CFRA. The Content shall not be used for any unlawful or unauthorized purposes. CFRA and any third-party providers, as well as their directors, officers, shareholders, employees or agents do not guarantee the accuracy, completeness, timeliness or availability of the Content. Past performance is not necessarily indicative of future results. This document may contain forward-looking statements or forecasts; such forecasts are not a reliable indicator of future performance. This report is not intended to, and does not, constitute an offer or solicitation to buy and sell securities or engage in any investment activity. This report is for informational purposes only. Recommendations in this report are not made with respect to any particular investor or type of investor. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors and this material is not intended for any specific investor and does not take into account an investor's particular investment objectives, financial situations or needs. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. CFRA may license certain intellectual property or provide services to, or otherwise have a business relationship with, certain issuers of securities that are the subject of CFRA research reports, including exchange-traded investments whose investment objective is to substantially replicate the returns of a proprietary index of CFRA. In cases where CFRA is paid fees that are tied to the amount of assets invested in a fund or the volume of trading activity in a fund, investment in the fund may result in CFRA receiving compensation in addition to the subscription fees or other compensation for services rendered by CFRA, however, no part of CFRA's compensation for services is tied to any recommendation or rating. Additional information on a subject company may be available upon request. CFRA s financial data provider is S&P Global Market Intelligence. THIS DOCUMENT CONTAINS COPYRIGHTED AND TRADE SECRET MATERIAL DISTRIBUTED UNDER LICENSE FROM S&P GLOBAL MARKET INTELLIGENCE. FOR RECIPIENT S INTERNAL USE ONLY. The Global Industry Classification Standard (GICS ) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence. GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by CFRA. Other Disclaimers and Notices: Certain information in this report is provided by S&P Global, Inc. and/or its affiliates and subsidiaries (collectively S&P Global ). Such information is subject to the following disclaimers and notices: Copyright 2017, S&P Global Market Intelligence (and its affiliates as applicable). All rights reserved. Nothing contained herein is investment advice and a reference to a particular investment or security, a credit rating or any observation concerning a security or investment provided by S&P Global is not a recommendation to buy, sell or hold such investment or security or make any other investment decisions. This may contain information obtained from third parties, including ratings from credit ratings agencies. Reproduction and distribution of S&P Global s information and third party content in any form is prohibited except with the prior written permission of S&P Global or the related third party, as applicable. Neither S&P Global nor its third party providers guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such information or content. S&P GLOBAL AND ITS THIRD PARTY CONTENT PROVIDERS GIVE NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE AND ALL S&P GLOBAL INFORMATION IS PROVIDED ON AN AS-IS BASIS. S&P GLOBAL AND ITS THIRD PARTY CONTENT PROVIDERS SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, EXEMPLARY, COMPENSATORY, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES, COSTS, EXPENSES, LEGAL FEES, OR LOSSES (INCLUDING LOST INCOME OR PROFITS AND OPPORTUNITY COSTS OR LOSSES CAUSED BY NEGLIGENCE) IN CONNECTION WITH ANY USE OF THEIR INFORMATION OR CONTENT, INCLUDING RATINGS. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice. Certain information in this report may be provided by Securities Evaluations, Inc. ( SE ), a wholly owned subsidiary of Intercontinental Exchange. Such information is subject to the following disclaimers and notices: Copyright 2017, Securities Evaluations, Inc. (and its affiliates, as applicable). Reproduction of BondMark and BondScreen in any form is prohibited except with the prior written permission of SE. Odd-lot prices and odd-lot ranges represent an opinion, and not a statement of fact, or a recommendation to make an investment decision, and readers of this information have the right to accept or reject such opinion, at their discretion. Odd-lot prices and odd-lot ranges do not represent a determination of the fair market value of any security or the best execution price in the market for a security, and that readers of this information will be responsible for complying with any applicable best execution requirements, as defined in FINRA Rule 5310, and for complying with any disclosure requirements as may be required under any applicable laws or regulations. None of SE, its affiliates or their suppliers guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. In no event shall SE, BondDesk Group, LLC, their affiliates or any of their third-party information providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with the use of SE content. (2017). BondMark and BondScreen may include data provided by BondDesk Group, LLC. Any portions of the fund information contained in this report supplied by Lipper, A Thomson Reuters Company, are subject to the following: Copyright 2017 Thomson Reuters. All rights reserved. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. For residents of the European Union/European Economic Area: ETF Reports are originally distributed by CFRA UK Limited (company number registered in England & Wales with its registered office address at PO Box 698, Titchfield House, Tabernacle Street, London, EC2A 4RR, United Kingdom). CFRA UK Limited is regulated by the UK Financial Conduct Authority (No ). For residents of Malaysia: ETF Reports are originally distributed by Standard & Poor's Malaysia Sdn. Bhd ( CFRA Malaysia ), a wholly-owned subsidiary of CFRA US. CFRA Malaysia is regulated by Securities Commission Malaysia (License No. CMSL/A0181/2007). For residents of all other countries: Research reports are originally distributed by CFRA. ETF reference data is provided by Lipper. Copyright 2018 CFRA. All rights reserved. CFRA and STARS are registered trademarks of CFRA. Page 7 of 7