ETF Landscape. Global overview of ETFs through the last decade. October 2010

FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE US OR CANADA. ETF Landscape Global overview of ETFs through the last decade October 2010 Deborah Fuhr, Managing Director Global Head of ETF Research & Implementation Strategy Phone: +44 20 7668 4276 Email: Deborah.Fuhr@blackrock.com

Global ETF and ETP asset growth Assets US$ Bn 1,200 # Products 2,500 1,000 2,000 800 1,500 600 1,000 400 200 500 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Aug-10 ETF Assets 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 $1,061.9 ETF Commodity Assets $0.0 $0.1 $0.3 $0.5 $1.2 $3.4 $6.3 $10.0 $25.6 $32.4 ETF Fixed Income Assets $0.1 $0.1 $4.0 $5.8 $23.1 $21.3 $35.8 $59.9 $104.0 $167.0 $203.6 ETF Equity Assets $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 $821.8 ETP Assets Total $2.0 $5.1 $3.9 $4.1 $6.3 $9.3 $15.9 $32.5 $54.6 $61.2 $119.7 $135.0 0 # ETFs 3 3 4 21 21 31 33 92 202 280 282 336 461 714 1,173 1,596 1,945 2,308 # ETPs 2 14 17 17 18 22 64 170 347 517 624 874 Data as at end August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 2 ETF Landscape Industry Highlights August 2010

Top 25 ETF providers around the world Ranked by AUM Aug-10 YTD CHANGE PROVIDER # ETFs AUM (US$ BN) % TOTAL # PLANNED # ETFs % ETFs AUM (US$ BN) % AUM % MARKET SHARE ishares 453 $492.7 46.4% 18 40 9.7% $3.8 0.8% -0.8% State Street Global Advisors 110 $139.6 13.1% 34 3 2.8% -$21.4-13.3% -2.4% Vanguard 47 $113.3 10.7% 23 0 0.0% $21.3 23.1% 1.8% Lyxor Asset Management 127 $44.1 4.2% 1 2 1.6% -$2.3-4.9% -0.3% db x-trackers 161 $38.2 3.6% 7 40 33.1% $0.8 2.2% 0.0% PowerShares 136 $32.8 3.1% 39 11 8.8% -$1.8-5.3% -0.3% ProShares 99 $24.4 2.3% 98 21 26.9% $1.2 5.0% 0.1% Van Eck Associates Corp 27 $14.9 1.4% 18 4 17.4% $2.4 19.4% 0.2% Nomura Asset Management 32 $12.7 1.2% 0 2 6.7% -$0.6-4.8% -0.1% Credit Suisse Asset Management 54 $11.8 1.1% 0 27 100.0% $2.1 21.9% 0.2% Zurich Cantonal Bank 7 $9.4 0.9% 0 3 75.0% $2.7 40.0% 0.2% Bank of New York 1 $8.6 0.8% 0 0 0.0% $0.0-0.2% 0.0% WisdomTree Investments 43 $7.0 0.7% 68-9 -17.3% $0.6 8.9% 0.0% Claymore Securities 70 $6.8 0.6% 34 13 22.8% $0.6 9.5% 0.0% Commerzbank 79 $6.7 0.6% 2 17 27.4% $0.4 6.9% 0.0% Direxion Shares 38 $6.4 0.6% 147 12 46.2% $1.4 27.5% 0.1% Amundi ETF 87 $6.0 0.6% 0 24 38.1% $1.3 26.6% 0.1% Hang Seng Investment Management 3 $5.7 0.5% 0 0 0.0% $0.4 7.4% 0.0% Nikko Asset Management 14 $5.4 0.5% 0 4 40.0% -$0.3-5.1% 0.0% ETFlab Investment 35 $5.3 0.5% 0 4 12.9% -$1.8-25.7% -0.2% Source Markets 51 $5.2 0.5% 19 19 59.4% $2.4 85.3% 0.2% EasyETF 64 $5.2 0.5% 0 0 0.0% -$0.7-11.7% -0.1% UBS Global Asset Management 20 $5.0 0.5% 9 6 42.9% $1.5 42.2% 0.1% Daiwa Asset Management 23 $4.8 0.4% 1 0 0.0% -$0.2-3.6% 0.0% E Fund Management 2 $3.9 0.4% 1 1 100.0% $2.6 196.8% 0.2% Data as at end August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 3 ETF Landscape Industry Highlights August 2010

US ETF/ETP net new assets by type of exposure AUGUST EXPOSURE # ETFs /ETPs ADV ASSETS NNA YTD-10 NNA 2009 NNA Equity 739 51,369.3 574,620.8 (6,881.3) 11,972.8 36,476.3 North America - Equity 452 44,144.4 368,890.2 (11,647.9) (6,425.7) 1,987.0 Active 3 0.1 11.9-4.1 12.8 Broad 242 35,236.5 284,015.1 (9,646.1) (8,148.4) (11,180.1) Consumer Goods/Services 26 1,133.3 8,189.9 (102.8) 1,334.1 287.2 Energy 31 1,594.6 15,565.8 (434.2) 1,326.7 1,145.3 Financials 29 2,789.4 14,913.1 (180.5) (871.4) 1,409.1 Healthcare 21 326.7 7,432.0 (534.5) (350.6) (400.8) Industrials 14 531.8 4,150.7 (346.6) 387.2 914.1 Materials 11 573.4 4,145.4 (259.8) (188.1) 1,206.2 Other 5 8.7 1,832.1 (4.1) (91.0) (77.1) Real Estate 18 1,015.2 13,078.6 0.9 7.5 4,377.4 Technology 36 676.0 9,131.2 (459.7) (544.8) 2,626.7 Telecommunications 6 14.1 1,066.3 57.9 102.6 139.4 Utilities 10 244.8 5,358.2 261.5 606.1 1,526.9 Asia Pacific - Equity 28 435.6 17,629.6 (91.0) 89.6 1,825.8 Europe - Equity 27 196.6 8,548.7 104.4 809.5 1,574.0 Global - Equity 58 103.1 11,497.7 296.0 511.5 3,353.7 Global (ex-us) - Equity 69 1,071.8 52,169.9 (6.5) 3,134.9 691.4 continued NNA Net New Assets. Data as at end August 2010. Source: National Stock Exchange (NSX), Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 4 ETF Landscape Industry Highlights August 2010

US ETF/ETP net new assets by type of exposure (continued) AUGUST EXPOSURE # ETFs /ETPs ADV ASSETS NNA YTD-10 NNA 2009 NNA Emerging Markets - Equity 105 5,417.8 115,884.8 4,463.8 13,853.1 27,044.5 Broad - EM 35 2,921.7 76,488.9 4,210.5 14,638.0 16,691.3 Regional - EM 12 118.9 3,797.9 226.9 (343.3) 1,400.7 Country - EM 58 2,377.2 35,597.9 26.4 (441.6) 8,952.5 Brazil 8 990.4 9,912.2 9.5 (877.8) 2,545.7 Chile 1 17.3 671.3 82.4 283.0 50.1 China 20 759.1 9,694.7 (245.0) (1,647.2) 2,191.1 Colombia 1 2.6 59.3 23.4 46.0 5.3 Egypt 1 0.1 5.4 1.8 3.9 India 7 57.5 2,518.3 (14.6) 238.7 774.6 Indonesia 2 16.2 506.4 57.3 253.0 167.5 Israel 1 4.3 127.8 (40.3) (23.7) 22.5 Malaysia 1 29.2 790.7 69.6 129.3 61.0 Mexico 3 139.5 1,446.5 (22.0) 418.2 302.0 Peru 1 3.9 230.6 1.6 104.8 96.3 Poland 2 1.1 89.5 (0.6) 89.4 7.3 Russia 2 63.9 1,798.4 4.1 492.9 378.8 South Africa 1 17.5 498.5 - (15.9) 18.4 South Korea 2 108.4 3,269.3-263.2 770.6 Taiwan 2 128.3 2,732.3 (147.9) (642.1) 1,093.7 Thailand 1 16.6 512.6 144.3 205.5 174.8 Turkey 1 19.9 595.0 98.0 164.5 204.7 Vietnam 1 1.4 139.2 4.7 72.8 88.2 continued NNA Net New Assets. Data as at end August 2010. Source: National Stock Exchange (NSX), Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 5 ETF Landscape Industry Highlights August 2010

US ETF/ETP net new assets by type of exposure (continued) AUGUST EXPOSURE # ETFs /ETPs ADV ASSETS NNA YTD-10 NNA 2009 NNA Fixed Income 127 2,258.3 137,004.8 2,971.2 28,119.3 44,801.9 Active 2 6.1 527.1 183.4 472.3 48.8 Aggregate 12 205.4 30,572.6 593.5 5,630.1 8,216.7 Convertible 1 3.0 308.6 11.4 82.4 212.0 Corporate 17 197.1 25,834.6 555.5 4,313.5 10,560.6 Government 54 1,512.7 35,228.8 831.8 10,281.7 6,706.9 High Yield 3 178.6 11,956.9 916.3 3,786.9 4,429.4 Inflation 6 90.7 22,346.9 (365.3) 1,458.4 10,139.8 Mortgage 3 15.5 2,128.8 30.1 256.3 913.1 Municipal 29 49.3 8,100.3 214.5 1,837.7 3,574.6 Commodities 100 2,395.0 92,729.2 890.1 7,790.0 32,551.8 Agriculture 17 48.1 2,752.0 10.7 (401.7) 1,927.6 Broad 20 142.3 9,483.7 (277.2) 342.2 4,958.1 Energy 21 461.2 6,554.1 208.5 (1,039.1) 6,055.9 Industrial Metals 17 22.7 869.3 3.9 (319.7) 798.1 Livestock 1 1.5 67.8 (7.5) (33.0) 18.9 Precious Metals 24 1,719.2 73,002.3 951.6 9,241.5 18,793.2 Currency 35 379.9 5,968.5 288.4 (2,049.4) 4,154.9 Alternative 6 470.7 2,909.0 770.6 1,942.8 1,258.7 Mixed 24 5.1 686.7 32.7 272.5 225.5 Total 1,031 56,878.2 813,919.1 (1,928.3) 48,048.1 119,469.1 NNA Net New Assets. Data as at end August 2010. Source: National Stock Exchange (NSX), Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 6 ETF Landscape Industry Highlights August 2010

US Leveraged and Inverse ETF/ETP net new assets by type of exposure AUGUST EXPOSURE # ETFs /ETPs ADV ASSETS NNA YTD 2010 NNA 2009 NNA Leveraged 76 3,244.9 10,788.6 742.8 48.2 (6,956.1) Equity 59 3,139.5 9,287.2 689.9 (85.0) (6,405.6) Asia Pacific - Equity 2 0.2 11.5-3.0 8.7 Emerging Markets - Equity 9 53.8 447.0 (8.1) 39.3 316.2 Europe - Equity 1 0.1 2.5-2.8 - Global (ex-us) - Equity 2 1.0 27.5 - (0.8) 23.9 North America - Equity 45 3,084.4 8,798.6 698.0 (129.4) (6,754.3) Commodities 8 90.9 1,404.4 82.1 126.2 (586.3) Currency 3 1.0 21.2 (4.8) 7.4 10.7 Fixed Income 6 13.5 75.8 (24.3) (0.3) 25.1 Inverse 29 21.1 5,303.8 473.6 183.7 3,284.3 Equity 15 280.1 4,529.0 402.0 1,919.0 2,766.2 Emerging Markets - Equity 2 3.5 275.8 0.3 64.1 273.3 Global (ex-us) - Equity 1 4.6 144.3 (3.2) 109.6 43.3 North America - Equity 12 271.9 4,109.0 405.0 1,745.4 2,449.6 Alternative 1 11.2 20.0 7.2 21.2 - Commodities 6 1.7 59.7 (11.8) (7.0) 165.9 Currency 2 7.0 213.9 - (134.2) 122.3 Fixed Income 5 12.3 481.2 76.2 324.9 229.9 Leveraged Inverse 76 4,105.5 17,473.2 559.5 4,907.7 16,649.9 Equity 59 3,655.1 11,748.7 (39.2) 2,399.6 13,636.1 Asia Pacific - Equity 2 0.3 20.3 - (1.7) 18.6 Emerging Markets - Equity 9 106.6 667.9 (66.1) 132.2 645.8 Europe - Equity 1 3.9 84.8 (2.8) 107.0 9.4 Global - Equity 1 0.4 18.8 4.0 19.2 - Global (ex-us) - Equity 2 3.4 60.7 (1.3) 33.4 13.5 North America - Equity 44 3,540.6 10,896.2 27.0 2,109.6 12,948.9 Commodities 9 54.5 328.3 (65.6) (93.8) 337.3 Currency 2 36.2 521.5 16.4 332.2 170.2 Fixed Income 6 359.6 4,874.7 647.9 2,269.7 2,506.2 Total 181 7,371.4 33,565.7 1,775.9 5,139.6 12,978.1 NNA Net New Assets. Data as at end August 2010. Source: National Stock Exchange (NSX), Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 7 ETF Landscape Industry Highlights August 2010

Sector ETF net new assets SECTOR ETF TICKER INDEX TICKER INDEX TOTAL RETURN (US$) AUG YTD 31-AUG ETF AUM (US$ MN) YTD % CHANGE ETF SHORT INTEREST (US$ MN) 13-AUG ETF ADV (US$ MN) AUGUST 2010 NET FLOWS (US$ MN) YTD 2010 NET FLOWS (US$ MN) 2009 NET FLOWS (US$ MN) DOW JONES U.S. SECTOR ETFs 5,141.2-12.8% 252.6 167.7-76.7-408.4-28.2 ishares Dow Jones U.S. Basic Materials IYM US DJUSBM -2.0% -1.4% 619.2-24.1% 57.2 44.1-26.2-187.6 246.4 ishares Dow Jones U.S. Consumer Goods IYK US DJUSNC -2.1% 2.2% 272.5-16.9% 17.0 2.6 11.6-59.4-105.4 ishares Dow Jones U.S. Consumer Services IYC US DJUSCY -4.0% -0.4% 170.6 6.0% 17.0 3.7-31.0 17.8-11.6 ishares Dow Jones U.S. Energy IYE US DJUSEN -4.2% -10.2% 584.9-18.5% 9.5 4.5-3.0-57.5 9.6 ishares Dow Jones U.S. Financial IYF US DJUSFN -7.3% -4.7% 414.1-13.0% 38.3 73.0-22.1-35.9-105.5 ishares Dow Jones U.S. Healthcare IYH US DJUSHC -1.4% -8.4% 525.3-15.2% 38.5 3.3-3.0-31.6-356.3 ishares Dow Jones U.S. Industrial IYJ US DJUSIN -7.0% -1.2% 276.3-4.4% 7.8 7.1-26.5-5.0-11.7 ishares Dow Jones U.S. Technology IYW US DJUSTC -7.1% -10.2% 1,118.3-17.8% 13.1 12.5-52.3-94.9 263.3 ishares Dow Jones U.S. Telecommunications IYZ US DJSTELT -1.4% 2.3% 649.9 2.1% 39.9 12.6 42.2 20.2 106.8 ishares Dow Jones U.S. Utilities IDU US DJUSUT 1.1% 1.0% 510.2 4.2% 14.2 4.4 33.6 25.5-63.9 S&P EQUAL WEIGHT SECTOR ETFs 266.3-2.5% 4.5 6.1-38.3 10.1 100.3 Rydex S&P Equal Weight Consumer Discretionary RCD US S25-6.1% -1.2% 23.5 28.6% 1.4 0.1 0.0 6.9 2.3 Rydex S&P Equal Weight Consumer Staples RHS US S30-2.8% 3.1% 12.8 29.4% 0.1 0.1 0.0 2.5-1.9 Rydex S&P Equal Weight Energy RYE US S10-6.7% -8.9% 13.7-21.8% 0.2 0.2 0.0-3.0 9.3 Rydex S&P Equal Weight Financial RYF US S40-6.7% 0.6% 15.0 8.9% 0.0 0.3-3.4 1.8 1.0 Rydex S&P Equal Weight Health Care RYH US S35-3.0% -8.1% 47.1-31.1% 0.0 2.3-13.7-16.3-1.4 Rydex S&P Equal Weight Industrial RGI US S20-7.5% -1.3% 34.5 76.8% 0.1 0.2 0.0 16.5 8.4 Rydex S&P Equal Weight Materials RTM US S15-3.7% -1.7% 31.0-9.3% 0.5 0.5 2.6-2.7 17.8 Rydex S&P Equal Weight Technology RYT US S45-5.6% -6.7% 74.5-6.8% 0.2 2.3-26.2 2.1 58.5 Rydex S&P Equal Weight Utilities RYU US S55 1.0% -0.6% 14.3 21.9% 1.9 0.2 2.4 2.4 6.4 S&P SELECT SECTOR ETFs 30,412.5-3.0% 7,044.4 3,953.2-1,537.5 1,034.6 3,483.0 Consumer Discretionary Select Sector SPDR XLY US IXY -3.8% 2.0% 1,661.6 13.6% 782.5 238.9-88.0 217.4 493.0 Consumer Staples Select Sector SPDR XLP US IXR -1.7% 1.5% 3,152.6 38.7% 369.2 209.7-1.4 893.2-117.0 Energy Select Sector SPDR XLE US IXE -5.0% -9.3% 5,779.2 2.9% 1,391.0 814.4-212.8 768.0 195.0 Financial Select Sector SPDR XLF US IXM -7.8% -5.3% 5,216.5-23.8% 1,737.1 1,059.6-250.2-1,255.6-1,805.0 Health Care Select Sector SPDR XLV US IXV -1.5% -8.9% 2,492.4-15.0% 521.3 238.5-227.3-187.1 599.0 Industrial Select Sector SPDR XLI US IXI -6.9% 2.4% 2,532.6 21.7% 558.2 517.6-398.2 551.6 631.0 Materials Select Sector SPDR XLB US IXB -3.0% -5.4% 1,807.7 0.4% 691.6 340.6-124.3 161.1 469.0 Technology Select Sector SPDR XLK US IXT -5.6% -8.8% 3,679.3-21.3% 545.9 268.8-412.4-573.2 1,545.0 Utilities Select Sector SPDR XLU US IXU 1.5% 1.4% 4,090.8 11.6% 447.5 265.2 177.2 459.2 1,473.0 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 August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, National Stock Exchange (NSX), Bloomberg. 8 ETF Landscape Industry Highlights August 2010

Sector ETF net new assets (continued) SECTOR ETF TICKER INDEX TICKER INDEX TOTAL RETURN (US$) AUG YTD 31-AUG ETF AUM (US$ MN) YTD % CHANGE ETF SHORT INTEREST (US$ MN) 13-AUG ETF ADV (US$ MN) AUGUST 2010 NET FLOWS (US$ MN) YTD 2010 NET FLOWS (US$ MN) 2009 NET FLOWS (US$ MN) MSCI US INVESTABLE MARKET SECTOR ETFs 5,506.8 2.5% 58.5 50.0 11.7 797.7 3,017.9 Vanguard Consumer Discretionary VCR US MZUSI0CD -4.9% 1.6% 234.3 19.3% 2.2 3.5 0.3 37.9 60.2 Vanguard Consumer Staples VDC US MZUSI0CS -1.6% -0.1% 547.2-5.4% 2.2 4.9-33.5-40.1-59.6 Vanguard Energy VDE US MSCIEN -4.7% -11.0% 1,041.0 0.5% 16.5 8.9-39.3 118.5 302.2 Vanguard Financials VFH US MZUSI0FN -7.6% -4.3% 464.5-7.7% 4.3 4.4-2.8-14.9 39.7 Vanguard Health Care VHT US MZUSI0HC -2.2% -9.2% 557.6-6.4% 7.5 3.3-15.2 12.8-20.0 Vanguard Industrials VIS US MSCIIN -7.7% -0.8% 294.9-12.1% 1.1 2.7-5.3-42.2 103.3 Vanguard Information Technology VGT US MZUSI0IT -7.0% -10.6% 1,137.0 16.3% 4.7 10.2 47.1 288.1 408.7 Vanguard Materials VAW US MZUSI0MT -2.8% -4.5% 414.8-15.4% 9.6 5.3-26.2-56.5 203.1 Vanguard Telecommunication Services VOX US MSCITC 1.5% -2.0% 241.0 21.8% 1.1 2.1 11.6 39.4 15.2 Vanguard Utilities VPU US MZUSI0UT 0.5% -1.3% 574.6 25.2% 9.2 4.6 12.9 115.9 139.9 Vanguard REIT VNQ US RMZ -1.2% 14.5% 5,656.4 20.7% 130.6 118.2 62.2 338.9 1,825.2 S&P GLOBAL SECTOR ETFs 4,068.2-8.4% 34.2 34.5 135.4 67.8 1,120.5 ishares S&P Global Consumer Discretionary RXI US SGD -3.6% -0.4% 93.0 8.7% 0.6 0.5 0.0 9.1 44.4 ishares S&P Global Consumers Staples KXI US SGCS -0.8% 1.1% 280.1-10.8% 2.7 3.8-17.1-30.6 58.4 ishares S&P Global Energy IXC US SGES -4.3% -12.7% 1,035.3-4.5% 1.5 8.2 75.3 112.7 337.7 ishares S&P Global Financials IXG US SGFS -6.7% -8.2% 262.5-21.2% 19.7 3.4 15.9-37.2 83.9 ishares S&P Global Healthcare IXJ US SGH 0.3% -7.9% 444.6-16.3% 0.8 2.5-21.7-31.0-110.0 ishares S&P Global Industrials EXI US SGN -5.8% -0.3% 161.2 3.9% 0.1 1.0-2.2 10.1 66.5 ishares S&P Global Materials MXI US SGM -2.1% -7.1% 767.3-15.8% 2.4 3.0 5.9-59.8 473.3 ishares S&P Global Technology IXN US SGI -7.1% -10.0% 480.1 5.8% 1.2 4.6 27.2 88.9 61.7 ishares S&P Global Telecommunications IXP US SGT 0.6% 1.1% 325.0 0.6% 4.1 5.2 32.4 12.2 52.8 ishares S&P Global Utilities JXI US SGU -0.2% -6.3% 219.1-13.0% 1.2 2.3 19.6-6.5 51.7 MSCI ACWI ex US SECTOR ETFs 46.5 100.0% N/A 0.5 0.0 46.2 N/A ishares MSCI ACWI ex US Consumer Discretionary AXDI US MSWDUCDN -2.5% -0.7% 5.3 100.0% N/A 0.0 0.0 5.3 N/A ishares MSCI ACWI ex US Consumer Staples AXSL US MSWDUCSN 0.2% 1.7% 5.4 100.0% N/A 0.1 0.0 5.4 N/A ishares MSCI ACWI ex US Energy AXEN US MSWDUENN -3.8% -14.2% 5.0 100.0% N/A 0.1 0.0 5.1 N/A ishares MSCI ACWI ex US Health Care AXHE US MSWDUHCN 3.0% -6.6% 5.1 100.0% N/A 0.1 0.0 5.0 N/A ishares MSCI ACWI ex US Industrials AXID US MSWDUINN -3.6% -1.5% 5.0 100.0% N/A 0.0 0.0 5.0 N/A ishares MSCI ACWI ex US Information Technology AXIT US MSWDUITN -6.6% -8.1% 4.9 100.0% N/A 0.0 0.0 5.1 N/A ishares MSCI ACWI ex US Materials AXMT US MSWDUMTN -1.7% -6.5% 5.3 100.0% N/A 0.0 0.0 5.1 N/A ishares MSCI ACWI ex US Telecommunication Servic AXTE US MSWDUTCN 0.2% 0.1% 5.3 100.0% N/A 0.0 0.0 5.1 N/A ishares MSCI ACWI ex US Utilities AXUT US MSWDUUTN -0.6% -8.1% 5.1 100.0% N/A 0.1 0.0 5.0 N/A 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 August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, National Stock Exchange (NSX), Bloomberg. 9 ETF Landscape Industry Highlights August 2010

European ETF/ETP net new assets by type of exposure AUGUST EXPOSURE # ETFs /ETPs ADV ASSETS NNA YTD-10 NNA 2009 NNA Equity 742 2,241.7 154,604.0 1,162.2 14,801.4 32,725.0 Europe - Equity 439 1,639.6 91,321.4 585.4 2,597.3 18,205.5 Broad 271 1,358.7 80,258.1 474.6 (178.9) 14,818.5 Consumer Goods/Services 39 48.7 1,439.2 (208.0) 71.9 335.4 Energy 10 12.0 838.5 22.0 (36.4) 322.1 Financials 26 76.2 2,610.7 174.2 39.1 825.5 Healthcare 11 7.2 961.4 55.5 (58.7) 145.9 Industrials 11 40.6 493.1 (54.6) 95.0 136.6 Information Technology 12 2.5 330.6 14.5 (1.8) 12.4 Materials 19 58.4 1,342.9 (33.6) (177.6) 522.5 Private Equity 1 0.7 85.9 4.0 44.8 34.2 Real Estate 12 5.6 1,493.4 91.1 272.1 333.6 Telecommunications 11 13.0 761.8 (8.2) (165.7) 425.0 Utilities 11 15.3 608.1 53.9 (65.1) 361.3 Other 5 0.6 97.9-50.9 (67.4) North America - Equity 79 149.3 15,984.9 (37.1) 2,857.9 1,561.5 Asia Pacific - Equity 53 112.9 9,913.6 122.0 1,823.6 2,662.0 Global - Equity 56 84.0 10,164.8 (130.7) 1,756.2 2,799.6 continued NNA Net New Assets. Data as at end August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 10 ETF Landscape Industry Highlights August 2010

European ETF/ETP net new assets by type of exposure (continued) AUGUST EXPOSURE # ETFs /ETPs ADV ASSETS NNA YTD-10 NNA 2009 NNA Emerging Markets - Equity 115 255.9 27,219.4 622.6 5,766.4 7,496.4 Broad - EM 24 93.3 13,140.6 427.2 3,964.6 3,665.0 Regional - EM 20 22.3 2,796.0 20.8 256.9 778.8 Country - EM 71 140.3 11,282.8-1,544.9 3,052.7 Brazil 9 21.9 2,271.2 15.2 104.9 811.2 Chile 1 0.0 3.1 3.0 3.0 - China 11 29.3 2,704.8 62.3 28.6 862.9 Egypt 1 0.2 14.6 2.8 6.4 (5.2) Hungary 1 0.2 15.7 - (0.5) (0.3) India 6 16.7 2,399.0 (7.5) 304.9 616.3 Indonesia 0 0.5 - - - - Kuwait 2 0.4 50.7-15.6 14.5 Malaysia 1 2.1 84.8 4.9 51.8 10.1 Mexico 2 0.1 7.2 3.0 7.9 - Russia 8 14.6 1,411.4 19.9 495.1 174.2 South Africa 6 2.1 238.9 5.6 60.4 64.3 South Korea 5 10.6 805.7 (1.9) 351.8 152.3 Taiwan 5 9.6 473.7 30.8 84.2 137.7 Thailand 0 - - - - 30.5 Turkey 11 30.3 617.3 35.8 (12.3) 113.3 UAE 1 0.0 12.5-1.2 7.2 Vietnam 1 1.7 172.2 0.6 41.8 63.6 continued 11 ETF Landscape Industry Highlights August 2010 NNA Net New Assets. Data as at end August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg.

European ETF/ETP net new assets by type of exposure (continued) AUGUST EXPOSURE # ETFs /ETPs ADV ASSETS NNA YTD-10 NNA 2009 NNA Fixed Income 182 372.5 54,571.0 139.3 7,045.0 9,453.3 Broad 1 5.3 291.5 49.8 206.9 102.3 Corporate 13 52.4 10,558.0 588.4 2,233.1 4,770.8 Covered 8 2.1 929.9 42.2 298.7 438.4 Credit Spreads 13 7.1 716.0 (43.2) (115.1) (291.1) Government 117 212.3 29,733.8 (947.1) 5,220.4 6,193.2 Inflation 15 20.9 3,968.5 (80.8) (222.2) 2,365.8 Money Market 14 65.6 6,624.5 488.1 (715.2) (4,518.2) Mortgage 1 6.8 1,748.7 42.0 138.2 392.1 Commodities 376 290.2 39,466.3 912.0 6,758.4 13,657.9 Broad 57 27.3 5,193.8 (19.6) 621.8 2,985.9 Agriculture 83 51.6 2,156.2 (218.3) (37.7) 1,294.3 Energy 74 37.6 2,575.9 166.3 568.1 1,834.2 Industrial Metals 55 9.3 727.5 (49.4) 184.1 343.5 Livestock 17 1.0 78.2 1.7 2.3 29.4 Precious Metals 90 163.4 28,734.8 1,031.3 5,419.8 7,170.7 Currency 62 3.3 448.0 (59.0) 211.9 190.7 Alternative 9 7.9 1,355.7 (2.4) 466.5 898.6 Mixed (Equity & Fixed Income) 1 0.5 85.1 (0.1) 18.5 14.8 Total 1,372 2,916.1 250,530.1 2,152.0 29,301.6 56,940.3 12 ETF Landscape Industry Highlights August 2010 NNA Net New Assets. Data as at end August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg.

European Leveraged and Inverse ETF/ETP net new assets by type of exposure AUGUST EXPOSURE # ETFs /ETPs ADV ASSETS NNA YTD 2010 NNA 2009 NNA Leveraged 60 205.9 2,786.4 321.3 703.3 1,229.8 Equity 27 193.1 2,069.6 168.3 357.3 765.4 Europe - Equity 24 191.3 2,023.1 173.8 343.0 751.6 North America - Equity 3 1.7 46.6 (5.4) 14.3 13.7 Commodities 33 12.8 716.7 153.0 346.1 464.5 Inverse 112 155.6 4,583.4 (159.9) 1,288.6 2,763.1 Equity 30 135.9 2,761.7 (166.2) 365.6 1,713.6 Asia Pacific - Equity 1 0.2 16.6 (2.2) 11.4 8.6 Europe - Equity 27 124.4 2,494.3 (160.6) 280.1 1,537.4 North America - Equity 2 11.3 250.9 (3.3) 74.1 167.6 Commodities 35 8.8 311.4 23.9 101.2 197.7 Currency 29 1.6 81.0 (45.0) 58.6 22.5 Fixed Income 17 9.2 1,421.5 27.4 782.0 801.4 Alternative 1-7.9 - (18.8) 27.9 Leveraged Inverse 22 211.1 1,564.6 50.0 413.8 958.1 Equity 21 205.3 1,429.7 (35.6) 268.4 958.1 Europe - Equity 20 204.6 1,417.3 (36.2) 257.9 958.1 North America - Equity 1 0.7 12.4 0.7 10.5 - Fixed Income 1 5.8 134.9 85.5 145.5 - Total 194 572.6 8,934.4 211.4 2,405.75 4,951.01 13 ETF Landscape Industry Highlights August 2010 NNA Net New Assets. Data as at end August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg.

STOXX 600 Sector ETF net flows For the week ending 27 August 2010 The week ending 27 August saw US$3.6 Mn net outflows from STOXX Europe 600 sector ETFs. The largest sector ETF net outflows in the week ending 27 August were in Industrial Goods & Services with US$66.5 Mn and Telecommunications with US$58.4 Mn while Banks experienced net inflows of US$176.6 Mn. Year-to-date, STOXX Europe 600 sector ETFs have seen US$227.4 Mn net outflows. Year-to-date, Food & Beverage sector ETFs have seen the largest net outflows with US$163.4 Mn, followed by Basic Resources with US$158.5 Mn while Media has experienced the largest net inflows with US$205.8 Mn YTD. FUTURES ETF US$ TOTAL RETURN PERFORMANCE OPEN ETF AUM 5-DAY INTEREST YTD % ADV WEEKLY ETF NET FLOWS MTD ETF NET FLOWS YTD ETF NET FLOWS SECTOR TICKER WEEKLY RANK YTD RANK 27-Aug CHANGE Automobiles & Parts SXAR -0.4% 12-5.1% 8 85.8 186.1-16.5% 1.6-15.7-66.3-34.0 Banks SX7R -0.5% 13-13.9% 16 659.5 1,370.8-9.8% 10.5 176.6 158.1 92.9 Basic Resources SXPR -1.4% 17-13.6% 15 320.0 990.8-27.1% 6.7-16.2-13.8-158.5 Chemicals SX4R -0.8% 15-11.3% 13 99.9 185.7-17.4% 2.4-14.0-9.6-11.9 Construction & Materials SXOR -2.0% 18-24.0% 19 34.1 140.9-25.9% 1.5 14.8 14.8-2.3 Financial Services SXFR 0.5% 7-9.6% 11 9.7 68.3-14.0% 0.7 0.0-0.2-2.7 Food & Beverage SX3R 1.0% 5-0.9% 4 169.7 348.3-33.3% 1.8-11.4-142.8-163.4 Health Care SXDR 0.4% 8-6.6% 10 535.7 848.8-11.9% 3.8-6.4 50.5-50.1 Industrial Goods & Services SXNR -0.7% 14-0.7% 3 349.5 440.2 12.0% 4.0-66.5-105.4 41.9 Insurance SXIR 0.1% 11-12.1% 14 154.5 524.8-19.9% 5.2-11.9-23.5-47.9 Media SXMR 0.3% 10-3.9% 6 122.9 312.6 176.6% 1.5-7.0-34.3 205.8 Oil & Gas SXER -1.1% 16-20.4% 18 194.3 776.3-25.7% 7.3-7.4 2.5-29.0 Personal & Household Goods SXQR 1.0% 6 1.8% 1 154.7 227.5 37.8% 0.8 2.8 0.1 60.7 Real Estate SX86R 1.8% 2-6.4% 9 15.9 59.5-26.8% 0.8 0.0 0.0-14.7 Retail SXRR 1.1% 4-1.2% 5 78.3 140.4-21.5% 0.4 0.1 13.7-35.3 Technology SX8R -2.3% 19-10.3% 12 86.4 197.6 1.8% 1.2 1.5 13.9 28.9 Telecommunications SXKR 2.2% 1-5.1% 7 379.3 703.6-19.8% 4.2-58.4-0.2-114.2 Travel & Leisure SXTR 1.5% 3-0.6% 2 66.9 82.5-6.6% 0.4 7.0 14.6-3.0 Utilities SX6R 0.3% 9-18.3% 17 226.8 573.4-19.9% 3.1 8.5 50.8 9.4 Total 0.0% -9.2% 3,743.9 8,178.0-14.7% 57.7-3.6-77.2-227.4 14 ETF Landscape Industry Highlights August 2010 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. Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.

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 cash equitisation, transition management, rebalancing, and obtaining hard to achieve exposures. According to a recent survey by Greenwich Associates 1, ETF use among US pension funds, endowments and foundations has grown to about 14%, according to the results of Greenwich Associates most recent annual study of the US 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 industry estimates. Almost half the institutional users in the Greenwich Associates annual study say they employ ETFs for what they consider tactical tasks related to the management of their portfolios. 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. 15 ETF Landscape Industry Highlights August 2010 How ETFs are used by US Institutions Tactical adjustments Cash equitisation Core/satellite Rebalancing Portfolio completion Plan sponsors Transitions ETF overlay Money managers 3% 31% 28% 24% 24% 45% 38% 25% 3% Other 6% 19% 31% 25% 31% 63% 56% 0% 20% 40% 60% 80% 100% 120% Note: Based on responses from 70 U.S. plan sponsors and money managers using ETFs. Source 2010 Greenwich Market Pulse - ETFs Greenwich Associates asked the institutions participating in the survey to name the providers they use for ETFs. The results reveal two things: 1) ishares/blackrock is by far the most widely used provider of ETFs among US institutions; and 2) Most institutions that employ ETFs use more than one provider: 89% of institutional ETF users obtain ETFs from ishares/blackrock, whereas 60% use SPDRs/State Street and 51% use Vanguard. 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. Source: Greenwich Associates: ETFs Gain Foothold in Institutional Market, April 2010.

ETFs gain foothold in Institutional market (continued) Institutions cite a range of criteria used in selecting an ETF provider. 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 the company behind the fund. Almost 55% of institutions currently employing ETFs expect their 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. 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. About 20% of plan sponsors expect to reduce their use of ETFs. Expected change in asset allocation to ETFs Increase >10% Increase 5-10% Increase 1-4% No change Decrease -1-4% Decrease -5-10% Decrease > -10% -8% -5% -3% 10% 18% 25% 33% -20% 0% 20% 40% Note: Based on responses from 70 US plan sponsors and money managers using ETFs. Source 2010 Greenwich Market Pulse ETFs Nearly 30% of institutions that do not use ETFs say they lack 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 to explain the product to their institutional clients as both a tool for tactical adjustments and a means of obtaining desired exposures. 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. Source: Greenwich Associates: ETFs Gain Foothold in Institutional Market, April 2010. 16 ETF Landscape Industry Highlights August 2010

Global institutions reported assets as at end December 2008 17 ETF Landscape Industry Highlights August 2010 All Reporting Firms Reported Assets Reported ETF Assets Reported ETF Assets Firm Reported Assets Number of Institutions Number of Institutions Number of Institutions >50 Billion 39 5,404,681 28 68,250 71.8% 1.3% 20-50 Billion 113 3,505,831 84 69,810 74.3% 2.0% 10-20 Billion 125 1,763,371 71 35,571 56.8% 2.0% 5-10 Billion 205 1,481,979 98 15,356 47.8% 1.0% 1-5 Billion 1,216 2,638,240 428 41,249 35.2% 1.6% 500-1000 Million 864 610,428 246 14,123 28.5% 2.3% 250-500 Million 1,196 421,369 323 13,359 27.0% 3.2% 100-250 Million 2,141 345,296 535 11,739 25.0% 3.4% <100 Million 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 Assets Reported ETF Users Reported ETF Users Reported ETF Assets % Of ETF Users % Of ETF Users Reported ETF Assets Firm Type Number of Institutions Number of Institutions Number of Institutions 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% Source: Global ETF Research & Implementation Strategy Team, BlackRock, Thomson Reuters.

ETF portfolios 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. 18 ETF Landscape Industry Highlights August 2010

Core-Satellite: ETFs can be used in the core portfolio, as well as in the satellite ETFs in the core: A broad market index. Exposure to diversified baskets of securities. Optimised core: sector, style or country indices. ETFs in the satellite: Concentrated, focused ETFs. Sector and style. Individual countries and regions. Alternative asset class. 19 ETF Landscape Industry Highlights August 2010

MSCI World & MSCI EM Index Weights & Performance MSCI World # Stocks % Weight % YTD Return Australia 72 3.8% -10.6% Austria 8 0.1% -15.7% Belgium 13 0.4% -9.8% Canada 99 5.1% -0.8% Denmark 11 0.5% 8.2% Finland 17 0.5% -14.0% France 77 4.6% -19.6% Germany 50 3.6% -14.6% Greece 9 0.1% -40.1% Hong Kong 40 1.2% 1.0% Ireland 5 0.1% -28.9% Israel 16 0.4% -10.2% Italy 30 1.4% -23.9% Japan 342 10.1% -3.4% Netherlands 21 1.2% -13.7% New Zealand 5 0.0% -13.4% Norway 9 0.4% -16.4% Portugal 9 0.1% -22.2% Singapore 30 0.8% 3.4% Spain 28 1.7% -25.0% Sweden 33 1.4% 3.3% Switzerland 37 3.6% -3.1% United Kingdom 106 10.1% -8.5% United States 591 48.9% -5.9% MSCI Emerging Markets # Stocks % Weight % YTD Return Brazil 76 16.1% -8.4% Chile 16 1.7% 21.9% China 125 18.7% -6.3% Colombia 8 0.9% 39.6% Czech Republic 4 0.4% -9.8% Egypt 10 0.5% 1.6% Hungary 4 0.4% -15.4% India 60 7.9% 0.7% Indonesia 22 2.4% 16.7% Malaysia 40 3.1% 21.2% Mexico 21 4.2% -2.2% Morocco 3 0.2% -1.1% Peru 3 0.7% 15.3% Philippines 12 0.5% 13.5% Poland 22 1.5% -7.4% Russia 28 6.2% -5.0% South Africa 45 7.3% 2.0% South Korea 99 13.4% -0.6% Taiwan 118 10.6% -9.0% Thailand 20 1.6% 26.0% Turkey 20 1.7% 10.7% Total 756 100.0% -2.0% Total 1,658 100.0% -7.5% 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. YTD returns reflect US dollar price performance only from 31/12/2009 to 31/08/2010. Index weights captured from Bloomberg 08/09/2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 20 ETF Landscape Industry Highlights August 2010

Fixed Income Index Guide Understanding index methodology is the key to selecting and using ETFs. Investors must understand the differences in pricing sources*, frequency of pricing updates and what prices are being captured: Where (one bank or consortium..) When (intraday, daily, weekly..) What (bid, mid, dirty ) 21 ETF Landscape Industry Highlights August 2010 *A fund may price a security using a different pricing source than used by the Index Provider itself. Source: Fixed Income Index Guide, BlackRock.

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. Commodity index comparison % accumulated US$ total return 600% Index # of Commodities Weighting Method Recomposition Frequency S&P GSCI 24 World Production Monthly Rogers International Commodity Index Thomson Reuters/Jefferies CRB Index Dow Jones UBS Commodity Index 36 19 19 Discretion of Committee Equal Weighted within broad sectors Liquidity and Production Annual Irregular Annual 500% 400% 300% 200% 100% 0% -100% Aug-98 Apr-99 Dec-99 Aug-00 Apr-01 Dec-01 Aug-02 Apr-03 Dec-03 Aug-04 Apr-05 Dec-05 Aug-06 Apr-07 Dec-07 Aug-08 Apr-09 Dec-09 S&P GSCI TR Thomson Reuters/Jefferies CRB Index TR Rogers International Commodity Index TR DJ-UBS Commodity TR 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. Data as at end December 2009. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 22 ETF Landscape Industry Highlights August 2010

Commodity index comparison S&P GSCI Dow Jones UBS Commodity Index Thomson Reuters Jefferies CRB Index Rogers International Commodity Index (RICI) Energy Energy Energy Energy Livestock Livestock Livestock Livestock Precious Metals Precious Metals Precious M etals Precious Metals Industrial Metals Agriculture Industrial Metals Agriculture Industrial M etals Agriculture Industrial M etals Agriculture Commodity Measure S&P GSCI DJ UBS Commodity Index Thomson Reuters Jefferies CRB Rogers International Commodity Index (RICI) Energy 70.38% 31.09% 39.00% 44.00% WTI Crude Oil $/barrel 35.95% 13.92% 23.00% 21.00% Brent Crude Oil $/barrel 14.92% - - 14.00% RBOB Gasoline $cents/gallon 4.67% 3.56% 5.00% 3.00% Heating Oil $cents/gallon 4.63% 3.49% 5.00% 1.80% GasOil $/metric ton 5.95% - - 1.20% Natural Gas $/mmbtu 4.27% 10.11% 6.00% 3.00% Livestock 5.08% 6.54% 7.00% 3.00% Live Cattle $cents/pound 2.77% 4.00% 6.00% 2.00% Feeder Cattle $cents/pound 0.50% - - - Lean Hogs $cents/pound 1.82% 2.53% 1.00% 1.00% Precious Metals 3.68% 13.04% 7.00% 7.10% Gold $/troy oz 3.28% 9.74% 6.00% 3.00% Silver $/troy oz 0.40% 3.30% 1.00% 2.00% Palladium $/troy oz - - - 0.30% Platinum $/troy oz - - - 1.80% Industrial Metals 7.95% 18.25% 13.00% 14.00% Aluminium $/metric ton 2.51% 5.53% 6.00% 4.00% Copper $/metric ton 3.48% 7.56% 6.00% 4.00% Lead $/metric ton 0.44% - - 2.00% Nickel $/metric ton 0.88% 2.77% 1.00% 1.00% Tin $/metric ton - - - 1.00% Zinc $/metric ton 0.65% 2.39% - 2.00% Commodity Measure S&P GSCI DJ UBS Commodity Index Thomson Reuters Jefferies CRB Rogers International Commodity Index (RICI) Agriculture 12.91% 31.09% 34.00% 31.90% Wheat $cents/bushels 2.88% 5.71% 1.00% 6.00% Kansas Wheat $cents/bushels 0.59% - - 1.00% Corn $cents/bushels 3.17% 6.83% 6.00% 4.75% Soybeans $cents/bushels 2.33% 7.93% 6.00% 3.35% Soybean Oil $cents/pound - 3.08% - 2.00% Soybean Meal $/short ton - - - 0.75% Cotton $cents/pound 1.31% 2.21% 5.00% 4.20% Sugar $cents/pound 1.55% 2.07% 5.00% 2.00% Coffee $cents/pound 0.73% 3.26% 5.00% 2.00% Cocoa $/metric ton 0.36% - 5.00% 1.00% Orange Juice $cents/pound - - 1.00% 0.60% Rubber JPY/kilogram - - - 1.00% Lumber $/1k board fleet - - - 1.00% Canola CAD/metric ton - - - 0.75% Rice $/cwt - - - 0.50% Oats $cents/bushels - - - 0.50% Rapeseed EUR/metric ton - - - 0.25% Azuki Beans JPY/bag - - - 0.15% Greasy Wool AUD/kilogram - - - 0.10% TOTAL 100.00% 100.01% 100.00% 100.00% Data as of: May-10 Jul-10 Jan-10 Jan-10 23 ETF Landscape Industry Highlights August 2010 Source: Global ETF Research & Implementation Strategy Team, BlackRock, S&P, Dow Jones, Lyxor, RICI Handbook 2010.

Global ETF/ETP Commodity Asset Growth Assets US$ Bn 160 140 120 100 80 60 40 20 # Products 600 500 400 300 200 100 0 Assets (US$ MN) 2001 2002 2003 2004 2005 2006 2007 2008 2009 Aug-10 Agriculture $0.00 $0.00 $0.00 $0.00 $0.00 $0.02 $2.21 $2.25 $5.64 $5.13 Alternative $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.01 $0.01 $0.01 Broad - - - - $0.43 $3.54 $7.61 $5.21 $15.18 $14.98 Energy $0.00 $0.00 $0.00 $0.00 $0.06 $1.00 $1.53 $5.00 $14.17 $10.60 Livestock $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.04 $0.15 $0.16 $0.15 Industrial Metals - - - - - $0.05 $0.40 $0.24 $1.92 $1.64 Precious Metals $0.04 $0.15 $0.34 $2.55 $6.54 $15.47 $28.77 $41.34 $80.75 $107.08 ETF/ETP Total $0.04 $0.15 $0.34 $2.55 $7.03 $20.08 $40.56 $54.20 $117.84 $139.57 0 # ETFs/ETPs Agriculture 2 2 2 2 2 12 21 55 66 100 Alternative 0 0 0 0 0 0 0 3 2 2 Broad - - - - 1 14 26 43 52 82 Energy 3 3 3 3 4 13 30 56 66 109 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 84 149 # ETFs/ETPs 9 9 10 13 16 64 130 264 327 535 Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 24 ETF Landscape Industry Highlights August 2010

Global Inverse & Leveraged ETF assets by type of exposure Region of Exposure # ETFs Total Listings Total 280 505 $41.1 100.0% 98 171 $2.9 7.6% Data as at end August 2010. Source: Global ETF Research & Implementation Strategy Team, BlackRock, Bloomberg. 25 ETF Landscape Industry Highlights August 2010 Aug-10 AUM (US$ BN) % TOTAL # ETFs Total Listings YTD Change AUM (US$ BN) % AUM % TOTAL Inverse 73 182 $9.4 22.8% 18 57 $2.8 42.8% 32.7% Equity 50 135 $7.5 0.7% 7 28 $2.1 38.7% -13.4% North America - Equity 17 27 $4.4 0.4% 4 7 $1.9 73.1% -6.3% Europe - Equity 27 100 $2.5 0.2% 1 19 $0.0-0.7% -6.4% Emerging Markets - Equity 4 4 $0.4 0.0% 2 2 $0.1 44.5% -0.7% Global (ex-us) - Equity 1 1 $0.1 0.0% 0 0 $0.1 231.5% -0.1% Asia Pacific - Equity 1 3 $0.0 0.0% 0 0 $0.0 181.6% 0.0% Global - Equity 0 0 $0.0 0.0% 0 0 $0.0 0.0% 0.0% Fixed Income 19 43 $1.9 0.2% 9 27 $0.7 64.8% -2.8% Commodities 3 3 $0.0 0.0% 2 2 $0.0 179.1% 0.0% Alternative 1 1 $0.0 0.0% 0 0 $0.0 100.0% -0.1% Leveraged 107 172 $13.0 31.5% 67 66 -$2.0-13.1% -19.3% Equity 93 158 $11.7 1.1% 64 63 -$1.9-14.0% -34.4% North America - Equity 51 73 $9.0 0.8% 51 23 -$1.7-16.1% -27.3% Europe - Equity 25 66 $2.0 0.2% 3 30 -$0.3-12.1% -5.8% Emerging Markets - Equity 13 15 $0.6 0.1% 7 9 $0.1 25.7% -1.2% Global (ex-us) - Equity 2 2 $0.0 0.0% 2 0 $0.0-27.7% -0.1% Asia Pacific - Equity 2 2 $0.0 0.0% 1 1 $0.0 16.6% 0.0% Global - Equity 0 0 $0.0 0.0% 0 0 $0.0 0.0% 0.0% Fixed Income 6 6 $0.1 0.0% 3 3 $0.1 215.1% -0.1% Commodities 7 7 $1.2 0.1% 0 0 -$0.1-8.5% -3.4% Currency 1 1 $0.0 0.0% 0 0 $0.0-31.2% 0.0% Leveraged inverse 100 151 $18.7 45.6% 13 48 $2.1 12.3% 4.3% Equity 83 131 $13.5 1.2% 9 41 $2.2 20.0% -28.2% North America - Equity 48 71 $11.2 1.0% 3 20 $1.9 20.5% -23.4% Europe - Equity 21 44 $1.5 0.1% 4 17 $0.3 23.8% -3.0% Emerging Markets - Equity 10 12 $0.7 0.1% 2 4 $0.0 3.1% -1.6% Global (ex-us) - Equity 2 2 $0.1 0.0% 0 0 $0.0 96.1% -0.1% Asia Pacific - Equity 2 2 $0.0 0.0% 0 0 $0.0-18.1% -0.1% Global - Equity 0 0 $0.0 0.0% 0 0 $0.0 0.0% 0.0% Fixed Income 7 10 $5.0 0.5% 2 5 -$0.1-1.1% -12.8% Commodities 9 9 $0.2 0.0% 2 2 -$0.1-38.3% -0.9% Currency 1 1 $0.0 0.0% 0 0 $0.0-32.9% -0.1%

Leverage/inverse ETFs At the end of August 2010 there were 280 leveraged and inverse ETFs with US$41.1 Bn assets under management from 18 providers globally. There are currently 76 inverse/inverse leveraged ETFs in the US and 97 inverse/inverse leveraged ETFs listed on exchanges outside the US. 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 leverage 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 Index Leveraged x2 Inverse x1 Inverse (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 26 ETF Landscape Industry Highlights August 2010

Structures of ETFs and ETNs General product features common to ETFs and ETNs are: Exchange traded. Easy accessible investment vehicles for a wide range of asset classes. Low tracking error. Exposure to market risk of the asset class/index. Specific features of physical ETFs are: Fund holds underlying securities in a ringfenced separate account exposing the investor to no counterparty risk of the issuer. In the case of failure of the fund issuer, the investor has recourse directly to the pool of underlying shares or bonds. High transparency with regards to the holdings of the fund. Opportunity for additional income to further reduce costs (i.e. through securities lending inside the ETF) is better than for other ETPs as physical ETFs hold index securities. Multiple market-makers can create and redeem new shares with the fund company promoting a highly competitive pricing, both on- and off-exchange ( multi-dealer model ). 27 ETF Landscape Industry Highlights August 2010 Specific features of swap-based ETFs are: Fund holds a basket of securities (which can be different from the underlying index securities) and an index swap. The swap counterparty risk is limited to a maximum of 10% of the value of the fund under UCITS rules. The investor has recourse to the basket of securities in the case of failure of the fund issuer. Structure allows compliance with UCITS rules on more indices than physical ETFs (i.e. commodity ETFs). Sometimes tax advantages possible (i.e. avoidance of stamp tax). While multiple market-makers can price swap-based ETFs on- and off-exchange, every creation and redemption with the fund company generally involves a single swap counterparty. Specific features of ETNs are: Investor owns a note, exposing the investor to the counterparty risk of the note issuer which is sometimes mitigated through collateral or guarantees. More flexibility to issue products, i.e. on single commodities and currencies. Possible access to structured product type solutions.

Structures of ETFs and ETNs (continued) Exchange listed Easily accessible investment vehicles for a range of asset classes Low tracking error Low costs Exposure to market risk of the asset class/index Structure UCITS fund EXCHANGE TRADED FUNDS (ETFs) Yes Yes Yes Yes Yes Mutual fund Yes* EXCHANGE TRADED NOTES (ETNs) Yes Yes Yes Mostly Yes Note No Underlying holdings Index securities for physical ETFs Index swap plus a basket of non-index securities for swap-based ETFs N/A Fund/note issuer risk No, mutual funds hold assets in separate ring-fenced segregated accounts or a ring-fenced fund company Yes, full exposure to credit worthiness of note issuer Swap counterparty risk No, for physical ETFs Yes, for swap-based ETFs but limited to 10% under UCITS N/A Other counterparty risk considerations Securities lending and dividend enhancement activity** Some notes are backed by physical assets or guarantees to decrease issuer risk Transparency Yes, full holdings disclosed for physical ETFs Limited for swap-based ETFs Limited Competitive multi-dealer model to trade on- and off-exchange Yes, possible for physical ETFs Limited for swap-based ETFs Limited 28 ETF Landscape Industry Highlights August 2010 * With exemptions possible. ** 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 vs US listed funds Local Shares (3.01% Gross Div s) European 2.71% Listed ETF 2.71% Net dividends (9.91% withholding [blended rate]) (Irish Domiciled) Gross dividends (no withholding out of the ETF) Non-US Based Investor Local Shares (3.01% Gross Div s) US Listed 2.77% ETF 1.94%** Net dividends (8.06% withholding [blended rate]) (US Domiciled) Net dividends (up to 30%* withholding) Non-US Based Investor Local Shares (3.01% Gross Div s) US Listed 2.77% 2.77% ETF Net dividends (8.06% withholding [blended rate]) (US Domiciled) Gross dividends (no withholding out of the ETF) US Based Investor * maximum rate, lower rate may apply based on local tax treaties with US. ** assumes impact of maximum rate 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. 29 ETF Landscape Industry Highlights August 2010

Flash Crash (Circuit Breakers) SEC Approves Rules Expanding Stock-by-Stock Circuit Breakers and Clarifying Process for Breaking Erroneous Trades 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 May 6 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 Dec. 10, 2010. 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. 30 ETF Landscape Industry Highlights August 2010

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 Sign up at no cost by sending your business card details to: ETFresearch@blackrock.com 31 ETF Landscape Industry Highlights August 2010

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 & 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. 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. 32 ETF Landscape Industry Highlights August 2010