Exchange-Traded Funds

Exchange-Traded Funds NORTH AMERICA MICHAEL JABARA Morgan Stanley Wealth Management Michael.Jabara@morganstanley.com +1 212 296-5101 JOHN DUGGAN Morgan Stanley Wealth Management John.Duggan@morganstanley.com +1 212 296-5104 CHRISTOPHER K. BAXTER Morgan Stanley Wealth Management Christopher.Baxter@morganstanley.com +1 212 296-5034 US ETF Weekly Update - Weekly Flows: $7.2 Billion Net Inflows - High-conviction ETF Recommendations Slide - ETFs Have Generated Net Inflows 32 of 43 Weeks YTD - ETF Assets Stand at $1.8 Trillion, Up 10% YTD - Five ETF Launches Last Week - SEC Rejects Non-transparent Actively Managed ETFs As with any investment, ETFs have risks. These include the general risks associated with investing in the underlying assets, potential tracking error, and the possibility that particular indices may lag other market segments or active managers. In addition, ETFs investing in international markets may include currency and geopolitical risks, while fixed income ETF risks also include credit and interest rate risk. Leveraged, Inverse, and Leveraged Inverse ETFs have unique risks, which are reviewed on slide 11. We define exchange-traded funds as encompassing passively and actively managed exchange-traded funds. This report is focused on U.S.-listed exchange-traded funds. These funds are registered with the SEC and trade as a single stock under SEC exemptions. U.S. listed, open-end fund ETFs must be offered under and sold only pursuant to a Prospectus. U.S.-listed ETFs may not be marketed or sold in a number of jurisdictions and may not be suitable for all investors. Morgan Stanley Wealth Management Sales Personnel should check with the Legal Department to clarify whether they may market the ETFs in a particular jurisdiction. Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. Morgan Stanley Wealth Management does and seeks to do business with companies covered in Morgan Stanley Wealth Management Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Wealth Management Research. Investors should consider Morgan Stanley Wealth Management Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.

US-Listed ETFs: High-conviction ETF Recommendations Below are our highest-conviction ETF recommendations, drawing on strategy from Morgan Stanley Wealth Management s Global Investment Committee and Morgan Stanley & Co. s Institutional Research group. Ticker Name Fund Focus IVW ishares S&P 500 Growth ETF US Equity-Large-Cap Growth IJR ishares Core S&P Small-Cap ETF US Equity-Small-Cap XLV Health Care Select Sector SPDR US Equity-Sector XLY Consumer Discretionary Select Sector SPDR US Equity-Sector IYW ishares US Technology ETF US Equity-Sector VGK Vanguard FTSE Europe ETF International Equity-Europe EZU ishares MSCI EMU ETF International Equity-Europe EWQ ishares MSCI France ETF International Equity-France EWG ishares MSCI Germany ETF International Equity-Germany DXJ WisdomTree Japan Hedged Equity Fund International Equity-Japan GXC SPDR S&P China ETF International Equity-China RWO SPDR Dow Jones Global Real Estate ETF Global Equity-Real Estate HYG ishares iboxx $ High Yield Corporate Bond ETF Fixed Income-High Yield BKLN PowerShares Senior Loan Portfolio Fixed Income-Senior Loan SRLN SPDR Blackstone/GSO Senior Loan ETF Fixed Income-Senior Loan UUP PowerShares DB US Dollar Index Bullish Fund Currency Basket-USD Source: Morgan Stanley Wealth Management ETF Research. 2

US-Listed ETFs: Estimated Flows by Market Segment ETFs posted net inflows of $7.2 bln last week; ETFs have generated net inflows 11 of the last 13 weeks - Last week s net inflows were led by US Large-Cap ETFs at $6.0 bln; conversely, US Sector & Industry ETFs posted net outflows of $3.6 bln, the most of any category we measured - Fixed Income ETFs have posted net inflows for four consecutive weeks, totaling $18.6 bln - Eleven of the 15 categories we measured posted net inflows last week; ETFs have generated net inflows 32 of the 43 weeks YTD - ETF assets stand at $1.8 tln, up 10% YTD 13-week flows remain positive among most asset classes; combined $52.4 bln in net inflows - Fixed Income ETFs generated net inflows of $23.3 bln over the last 13 weeks, the most of any category - Trailing only Fixed Income ETFs, US Large-Cap ETFs have exhibited net inflows of $19.1 bln over the last 13 weeks - Commodity ETFs continue to struggle and over the last 13 weeks have posted net outflows of $1.8 bln; notably, Commodity ETF market share has declined to 3% from 9% over the last two years Net Cash Flow ($ Mil) Mkt Cap Market Investment Objective Funds 1-Week 4-Week 13-Week ($ Mil) Share (%) US Broad-Market 21 908 1,060 1,966 63,033 3 US Large-Cap 59 6,013 (1,526) 19,084 472,126 26 US Mid-Cap 34 763 (1,922) (1,709) 91,165 5 US Small- & Micro-Cap 41 (1,931) (1,010) 348 78,611 4 US Sector & Industry 155 (3,564) (2,704) 346 214,981 12 US Custom 84 111 267 1,541 33,575 2 US Dividend Income 24 711 1,348 2,487 70,074 4 Leveraged/Inverse 183 116 451 827 33,020 2 International - Developed 189 263 (3,885) (1,757) 225,380 12 International - Emerging 154 823 (2,229) 4,863 144,407 8 Global 124 (183) 308 2,140 50,729 3 Fixed Income 205 3,507 18,641 23,287 289,624 16 Commodity 40 (575) (893) (1,774) 55,567 3 Currency 18 33 320 215 2,669 0 Active 107 193 (785) 572 16,612 1 Total 1,438 7,188 7,441 52,438 1,841,574 100 Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Flow data estimated as of 10/24/14 based on daily change in share counts and daily NAVs. 3

US-Listed ETFs: Estimated Largest Flows by Individual ETF SPDR S&P 500 ETF (SPY) posted net inflows of $3.3 bln last week, the most of any ETF - The three ETFs to mirror the S&P 500 Index (SPY, IVV, VOO) generated a combined $5.1 bln in net inflows last week - The ishares iboxx $ High Yield Corporate Bond ETF (HYG) and the SPDR Barclays High Yield Bond ETF (JNK) posted a combined $1.1 bln in net inflows last week - Despite a risk-on environment last week, the ishares Short Treasury Bond ETF (SHV) had net inflows of $1.0 bln, accounting for 32% of SHV s current market cap - After posting net inflows of $2.5 bln two weeks ago, the ishares Russell 2000 ETF (IWM) had net outflows of $2.2 bln last week, giving most of it back - The PowerShares QQQ (QQQ) continues to bleed money and over the last 13 weeks has exhibited net outflows of $8.4 bln, the most of any ETF Net Inflows Net Outflows Net Cash Flow ($ Mil) Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Flow data estimated as of 10/24/14 based on daily change in share counts and daily NAVs. Mkt Cap ETF Name Symbol 1-Week 4-Week 13-Week ($ Mil) SPDR S&P 500 ETF SPY 3,349 (4,364) 10,076 177,589 ishares Core S&P 500 ETF IVV 1,058 3,832 5,928 64,750 ishares Short Treasury Bond ETF SHV 1,025 1,070 1,147 3,198 Vanguard S&P 500 ETF VOO 668 1,333 3,042 23,073 Vanguard Total Stock Market ETF VTI 649 572 1,760 46,357 ishares iboxx $ High Yield Corporate Bond ETF HYG 637 1,863 2,016 14,485 ishares MSCI Brazil Capped ETF EWZ 630 564 1,448 5,419 ishares Core US Aggregate Bond ETF AGG 584 2,377 3,128 21,062 SPDR Barclays High Yield Bond ETF JNK 432 974 534 9,737 Industrials Select Sector SPDR XLI 421 193 (401) 8,831 ishares Russell 2000 ETF IWM (2,179) (1,402) 29 23,225 Technology Select Sector SPDR XLK (1,034) (1,734) (1,399) 11,881 Financials Select Sector SPDR XLF (913) (1,231) (908) 17,509 SPDR Gold Trust GLD (620) (1,053) (2,218) 29,493 ishares U.S. Healthcare ETF IYH (591) (512) (482) 2,152 ishares U.S. Industrials ETF IYJ (568) (394) (446) 1,261 SPDR Oil & Gas Exploration & Production ETF XOP (553) (153) 152 1,017 PowerShares QQQ QQQ (484) (5,407) (8,416) 37,919 Materials Select Sector SPDR XLB (457) (334) (293) 4,696 First Trust Industrials/Producer Durables AlphaDEX Fund FXR (450) (361) (339) 767 4

US-Listed ETFs: ETF Dollar Volume ETF monthly $ volume as a % of listed trading volume remained flat in September relative to August at 25%; over the last 5 years, ETF monthly $ volume as a % of listed trading volume averaged 28% Over the last five years, ETF monthly $ volume as a % of listed trading volume peaked in August 2011 at 36% ETF $ volume declined by $277 bln last week compared to the prior week, but is still 15% above its 13-week average US Sector & Industry ETFs accounted for 16% of ETF $ volume last week compared to their 13-week average of 14% and market capitalization share of 12% Monthly ETF Dollar Volume as a % of Listed Trading Weekly Dollar Volume by ETF Market Segment $9,000 Non-ETF Dollars Traded ($ Bil) 45% Dollar Volume ($ Bil) $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 ETF Volume ($ Bil) ETF Percentage (right axis) 40% 35% 30% 25% 20% 15% 10% 5% ETF as % of Market 1-Week ETF 1-Week ETF 13-Week ETF 13-Week ETF Market Cap Investment Objective Funds Vol ($ Mil) Vol Shr (%) Avg Vol ($ Mil) Avg Vol Shr (%) Shr (%) US Broad-Market 21 2,433 0.6 1,736 0.5 3.4 US Large-Cap 59 182,729 43.8 154,026 42.4 25.6 US Mid-Cap 34 4,631 1.1 5,456 1.5 5.0 US Small- & Micro-Cap 41 28,983 6.9 26,642 7.3 4.3 US Sector & Industry 155 67,383 16.2 49,447 13.6 11.7 US Custom 84 2,403 0.6 1,576 0.4 1.8 US Dividend Income 24 2,012 0.5 1,494 0.4 3.8 Leveraged/Inverse 183 33,823 8.1 28,756 7.9 1.8 International - Developed 189 18,345 4.4 18,482 5.1 12.2 International - Emerging 154 31,332 7.5 34,461 9.5 7.8 Global 124 9,878 2.4 10,282 2.8 2.8 Fixed Income 205 25,412 6.1 22,667 6.2 15.7 Commodity 40 5,679 1.4 6,732 1.9 3.0 Currency 18 883 0.2 649 0.2 0.1 Active 107 1,283 0.3 1,019 0.3 0.9 Total 1,438 417,209 100.0 363,425 100.0 100.0 $0 0% Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Source: Bloomberg, Morgan Stanley Wealth Management ETF Research, NYSE Arcavision. Monthly data as of 9/30/14; weekly data as of 10/24/14. Non-ETF Dollars Traded + ETF Volume=Total Listed Volume. 5

US-Listed ETFs: Short Interest Data Updated: Based on data as of 10/15/14 SPDR S&P 500 ETF (SPY) had the largest increase in USD short interest at $6.8 bln - SPY s shares short at 292 mln are at their highest level since 5/31/12 - Notably, the SPDR Barclays High Yield Bond ETF (JNK) and the ishares iboxx $ High Yield Corporate Bond ETF (HYG) exhibited meaningful declines in short interest last period; shares short in JNK are at their second lowest level of 2014 and HYG s shares short are at their lowest level of the year - 694 ETFs exhibited short interest increases while 646 experienced short interest declines over the last period - Aggregate ETF USD short interest increased by $12.2 bln over the period ended 10/15/14 The average shares short/shares outstanding for ETFs is currently 3.9%, down from 4.2% last period - For the third consecutive period, the SPDR Retail ETF (XRT) was the most heavily shorted ETF as a % of shares outstanding at 267% - Seven of the 10 most heavily shorted ETFs as a % of shares outstanding are sector/industry based (XRT, SMH, XOP, IYR, XBI, OIH, DRV) - Based on multiple borrowings and the ability to continuously create new shares, shares short as a % of shares outstanding can exceed 100% (only seven ETFs exhibited shares short as a % of shares outstanding greater than 100%) Change in Short Interest Shares Short as % of Shares Outstanding ETF Name Symbol SPDR S&P 500 ETF SPY 6,811,832,100 ishares Russell 2000 ETF IWM 821,801,040 Energy Select Sector SPDR XLE 709,447,209 Industrials Select Sector SPDR XLI 594,439,847 Consumer Discretionary Select Sector SPDR XLY 576,128,593 ishares U.S. Real Estate ETF IYR (585,978,245) Consumer Staples Select Sector SPDR XLP (306,320,764) SPDR Barclays High Yield Bond ETF JNK (211,050,849) Vanguard FTSE Emerging Markets ETF VWO (182,262,826) ishares iboxx $ High Yield Corporate Bond ETF HYG (176,447,989) Last Change in USD Amount Held Short ETF Name Symbol Shares Short / Shrs Out (%) SPDR Retail ETF XRT 267.2 Market Vectors Semiconductor ETF SMH 264.4 SPDR Oil & Gas Exploration & Production ETF XOP 173.2 CurrencyShares Euro Trust FXE 168.5 ishares U.S. Real Estate ETF IYR 130.5 CurrencyShares Japanese Yen Trust FXY 124.0 SPDR Biotech ETF XBI 111.8 Market Vectors Oil Services ETF OIH 81.7 ishares 20+ Year Treasury Bond ETF TLT 79.3 Direxion Daily Real Estate Bear 3x Shares DRV 78.2 Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Short Interest data are only reported bi-monthly with a lag. Data compares short interest from 10/15/14 vs. 9/30/14. 6

US-Listed ETFs: Most Successful Recent Launches by Assets $8.3 bln in total market cap of ETFs less than 1-year old - Active ETFs account for 22% of recently launched ETF market share and 35% of net inflows over the last 13 weeks, the most of any category - The International - Emerging ETF category was the only recently launched ETF segment to exhibit net outflows last week - 163 new ETF listings and 57 closures YTD The top 10 most successful launches make up 39% of the market cap of ETFs launched over the past year - Five ETF sponsors and one asset class (equity) were represented in top 10 most successful launches - Fidelity claimed four of the 10 most successful ETF launches over the past year - For the second consecutive week, the First Trust Dorsey Wright Focus 5 ETF (FV) generated more net inflows than any other recently launched ETF; FV had net inflows of $54 mln last week Estimated Flows for ETF Launches Over Past Year Net Cash Flow ($ Mil) Mkt Cap Market Investment Objective Funds 1-Week 4-Week 13-Week ($ Mil) Share (%) US Broad-Market 1 3 5 11 178 2 US Large-Cap 0 0 0 0 0 0 US Mid-Cap 0 0 0 0 0 0 US Small- & Micro-Cap 0 0 0 0 0 0 US Sector & Industry 10 6 104 334 1,529 18 US Custom 15 91 283 594 1,120 13 US Dividend Income 3 1 11 49 115 1 Leveraged/Inverse 7 0 20 18 90 1 International - Developed 39 3 83 504 1,612 19 International - Emerging 23 (29) (113) 178 740 9 Global 15 31 62 151 280 3 Fixed Income 27 55 94 293 695 8 Commodity 1 3 3 10 60 1 Currency 1 0 3 3 60 1 Active 48 8 18 1,178 1,863 22 Total 190 172 572 3,322 8,341 100 Symbol Top 10 Successful Launches Over Past Year Fund Name Mkt Cap ($ Mil) 1-Week Flows ($ Mil) 4-Week Flows ($ Mil) VIDI Vident International Equity Fund 713 0 7 FV First Trust Dorsey Wright Focus 5 ETF 702 54 129 ASHR Deutsche X-Tracker Harvest CSI 300 China A-Shares Fund 395 (27) (123) FHLC Fidelity MSCI Health Care Index ETF 274 (8) 32 FTEC Fidelity MSCI Information Technology Index ETF 252 26 30 IPAC ishares Core MSCI Pacific ETF 214 0 29 IEUR ishares Core MSCI Europe ETF 199 0 39 FNCL Fidelity MSCI Financials Index ETF 179 3 32 VUSE Vident Core US Equity Fund 178 3 5 FSTA Fidelity MSCI Consumer Staples Index ETF 171 41 52 Total 3,277 92 234 Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. Data estimated as of 10/24/14 based on daily change in share counts and daily NAVs. 7

US-Listed ETFs: New Listings For the Week Symbol Fund Name DAX Recon Capital DAX Germany ETF 10/23/2014 0.45 Tracks an index of the largest German equities. EFFE Global X JPMorgan Efficiente Index ETF 10/23/2014 0.86 Launch Date Tracks an index of ETFs from five asset classes with a targeted annualized realized volatility of 10%; ETFs are selected based on the efficient frontier theory. SCTO Global X JPMorgan US Sector Rotation Index ETF 10/23/2014 0.86 Tracks an index of ETFs that follow a sector rotation strategy driven by momentum; the fund has the ability to shift into short-term fixed income securities. FEUZ First Trust Eurozone AlphaDEX ETF 10/22/2014 0.80 Tracks an index of European equities from the Eurozone (those countries that strictly utilize the euro) that are selected based on fundamental factors. QVAL ValueShares U.S. Quantitative Value ETF 10/22/2014 0.79 Actively managed ETF that focuses primarily on large- and mid-cap value US equities. Expense Ratio (%) Source: Bloomberg, Morgan Stanley Wealth Management ETF Research. 8

US-Listed ETFs: News Highlights SEC Rejects Non-transparent Actively Managed ETFs - In a 10/21/14 notice, the Securities and Exchange Commission (SEC) denied the request of Precidian Funds and BlackRock for exemptive relief to launch non-transparent actively managed ETFs. - The ruling was awaited by the ETF community as a potential catalyst for more actively managed ETF issuance whereby ETFs would not be required to fully disclose their holdings daily. - The ruling was preliminary and the SEC is receiving comments up until 11/17/14. Source: Morgan Stanley Wealth Management ETF Research, SEC. 9

Recent Reports 3Q14 ETF Fund Flows-$46.7 Billion Net Inflows - October 22, 2014 Investment Primer: Introduction to Exchange-Traded Funds - June 18, 2014 ETF Quarterly Report: $1.8 Trillion in 1,384 ETFs - June 3, 2014 Morgan Stanley Wealth Management and its affiliates do not provide fundamental research ratings on exchange-traded funds (ETFs). 10

Leveraged, Inverse & Leveraged Inverse Conclusions and Risks 1) Leveraged, Inverse, and Leveraged Inverse (L&LI) ETFs generally capture a high percentage of their expected daily returns, particularly on a net asset value basis. L&LI ETFs are not appropriate for all investors. However, we believe they can be appropriate tools for some investors looking to make short-term tactical trades if they perceive a high likelihood of a strong market move occurring in a relatively short time period. In strong trending markets, being on the right side of the trade with L or LI ETFs can lead to very strong returns. Investors should not expect these ETFs to deliver total returns linked to their benchmarks over any period other than daily. The effects of compounding and the daily re-leveraging or de-leveraging that occurs with L&LI ETFs can lead to unexpected results over the long term. As a result, we believe longer-term investors should consider regularly rebalancing positions. 4) Trendless markets, particularly those with a high level of volatility, can lead to substantial relative underperformance of L&LI ETFs. 2) Leveraged and Leveraged Inverse (L&LI) ETFs typically utilize futures and equity swap agreements. The use of these derivative instruments increases risk and enhances the possibility of tracking error. Relative to traditional ETFs, leveraged, inverse and leveraged inverse ETFs typically have higher costs and lower tax efficiency. 3) The effects of compounding can lead to significant deviations from traditional benchmarks over longer time periods. For example, if $100,000 is invested in an index that increases in value by 10% on day one and then decreases in value by 10% on day two, the investment will be worth $110,000 at the end of day one and $99,000 after day two. However, the value of a security that doubles the daily performance of the index would be worth $120,000 on day one and $96,000 after day two. Thus, the index is down 1% after two days, a doubling of which would be down 2%. However, the security attempting to double the return of the index is down 4%. Investors should consider carefully the potential impact over longer periods. MLP and MLP ETF Risks Individual MLPs are publicly traded partnerships that have unique risks related to their structure. These include, but are not limited to, their reliance on the capital markets to fund growth, adverse ruling on the current tax treatment of distributions (typically mostly tax deferred), and commodity volume risk. For tax purposes, MLP ETFs are taxed as C corporations and will be obligated to pay federal and state corporate income taxes on their taxable income, unlike traditional ETFs, which are structured as registered investment companies. These ETFs are likely to exhibit tracking error relative to their index as a result of accounting for deferred tax assets or liabilities (see funds prospectuses). The potential tax benefits from investing in MLPs depend on their being treated as partnerships for federal income tax purposes and, if the MLP is deemed to be a corporation, then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution to the fund which could result in a reduction of the fund s value. MLPs carry interest rate risk and may underperform in a rising interest rate environment. MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments; this deferred tax liability is reflected in the daily NAV; and, as a result, the MLP fund s after-tax performance could differ significantly from the underlying assets even if the pre-tax performance is closely tracked. Commodity ETF Risks Commodity ETFs may be subject to greater volatility than traditional ETFs and can be affected by increased volatility of commodities prices or indexes as well as changes in supply-anddemand relationships, interest rates, monetary and other governmental policies, or factors affecting a particular sector or commodity. Currency ETF Risks Investing in foreign markets entails greater risks than those normally associated with domestic markets, such as political, currency, economic and market risks. Investing in currency involves additional special risks such as credit, interest rate fluctuations, derivative investment risk, and domestic and foreign inflation rates, which can be volatile and may be less liquid than other securities and more sensitive to the effect of varied economic conditions. In addition, international investing entails greater risk, as well as greater potential rewards compared to U.S. investing. These risks include political and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economies. 11

Important Disclosures The information and opinions in Morgan Stanley Wealth Management Research were prepared by Morgan Stanley Smith Barney LLC under its trade name Morgan Stanley Wealth Management. For important disclosures (including copies of historical disclosures) regarding the securities and/or companies that are the subject of this Morgan Stanley Wealth Management Research product, please contact Morgan Stanley Wealth Management Research, 522 Fifth Ave., New York, N.Y. 10036, Attention: Research Management. In addition, the same important disclosures, with the exception of the historical disclosures, are contained on the Firm's disclosure website at https://www.morganstanley.com/online/researchdisclosures. Historical disclosures will be provided upon request back to June 1, 2009. Morgan Stanley Wealth Management Analyst Certification The Morgan Stanley Wealth Management research analysts principally responsible for the preparation and content of all or any identified portion of this research report, hereby certify that their views about the securities and/or companies discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report. Unless otherwise stated, the individuals listed on the cover page of this report are Morgan Stanley Wealth Management research analysts. Global Research Conflict Management Policy Morgan Stanley Wealth Management has a Conflict Management policy available at: https://www.morganstanley.com/online/researchconflictpolicies Important US Regulatory Disclosures on Subject Issuers The following analyst or strategist (or a household member) owns securities (or related derivatives), ETFs, or Closed-End funds that he or she covers or recommends in Morgan Stanley Wealth Management Research: John Duggan - CurrencyShares Japanese Yen Trust, First Trust ISE-Revere Natural Gas Index, ishares Gold Trust, ishares MSCI Brazil Capped ETF, ishares MSCI South Korea Capped ETF, ishares MSCI Switzerland Capped ETF, ishares National AMT-Free Muni Bond ETF, ishares Russell 3000 ETF, ishares Silver Trust, PowerShares DB Agriculture Fund, PowerShares DB US Dollar Index Bearish, SPDR Dow Jones Industrial Average ETF, SPDR Gold Trust, Vanguard FTSE All-World ex-us ETF. Morgan Stanley Wealth Management or an affiliate beneficially owned 1% or more of a class of common equity securities of: Global X MSCI Colombia ETF, Global X Silver Miners ETF, ishares 1-3 Year Credit Bond ETF, ishares 1-3 Year Treasury Bond ETF, ishares 20+ Year Treasury Bond ETF, ishares 3-7 Year Treasury Bond ETF, ishares 7-10 Year Treasury Bond ETF, ishares China Large-Cap ETF, ishares Cohen & Steers REIT ETF, ishares Core High Dividend ETF, ishares Core S&P 500 ETF, ishares Core S&P Mid-Cap ETF, ishares Core S&P Small-Cap ETF, ishares Core Total US Bond Market ETF, ishares Core US Value ETF, ishares Dow Jones U.S. ETF, ishares Europe ETF, ishares Floating Rate Bond ETF, ishares Global 100 ETF, ishares Global Consumer Discretionary ETF, ishares Global Consumer Staples ETF, ishares Global Energy ETF, ishares Global Financials ETF, ishares Global Healthcare ETF, ishares Global Industrials ETF, ishares Global Infrastructure ETF, ishares Global Materials ETF, ishares Global Tech ETF, ishares Global Telecom ETF, ishares Global Utilities ETF, ishares Gold Trust, ishares iboxx $ High Yield Corp Bond ETF, ishares iboxx $ Invt Grade Corp Bond ETF, ishares Intermediate Credit Bond ETF, ishares International Treasury Bond ETF, ishares Intl Select Dividend ETF, ishares J.P. Morgan USD Emerging Mkts, ishares Latin America 40 ETF, ishares MBS ETF, ishares Morningstar Large-Cap Growth ETF, ishares Morningstar Large-Cap Value ETF, ishares Morningstar Mid-Cap Growth ETF, ishares Morningstar Mid-Cap Value ETF, ishares MSCI ACWI ETF, ishares MSCI ACWI ex U.S. ETF, ishares MSCI All Country Asia ex Japan ETF, ishares MSCI All Peru Capped ETF, ishares MSCI China ETF, ishares MSCI EAFE ETF, ishares MSCI EAFE Growth ETF, ishares MSCI EAFE Small-Cap ETF, ishares MSCI EAFE Value ETF, ishares MSCI Emerging Mkts Min Vol, ishares MSCI Indonesia ETF, ishares MSCI Philippines ETF, ishares MSCI Poland Capped ETF, ishares MSCI Russia Capped ETF, ishares MSCI USA Minimum Volatility ETF, ishares Nasdaq Biotechnology ETF, ishares National AMT-Free Muni Bond ETF, ishares North American Natural Resources, ishares North American Tech ETF, ishares North American Tech-Software ETF, ishares PHLX Semiconductor ETF, ishares Russell 1000 ETF, ishares Russell 1000 Growth ETF, ishares Russell 1000 Value ETF, ishares Russell 2000 ETF, ishares Russell 2000 Value ETF, ishares Russell 3000 ETF, ishares Russell Mid-Cap ETF, ishares Russell Mid-Cap Growth ETF, ishares Russell Mid-Cap Value ETF, ishares S&P 100 ETF, ishares S&P 500 Growth ETF, ishares S&P 500 Value ETF, ishares S&P GSCI Commodity-Indexed Trust, ishares Select Dividend ETF, ishares Short Treasury Bond ETF, ishares Short-Term Natl AMT-Free Muni, ishares Silver Trust, ishares TIPS Bond ETF, ishares Transportation Average ETF, ishares U.S. Aerospace & Defense ETF, ishares U.S. Basic Materials ETF, ishares U.S. Broker-Dealers ETF, ishares U.S. Consumer Goods ETF, ishares U.S. Consumer Services ETF, ishares U.S. Financial Services ETF, ishares U.S. Financials ETF, ishares U.S. Healthcare ETF, ishares U.S. Home Construction ETF, ishares U.S. Industrials ETF, ishares U.S. Medical Devices ETF, ishares U.S. Oil & Gas Exp & Prod ETF, ishares U.S. Oil Equip & Services ETF, ishares U.S. Preferred Stock ETF, ishares U.S. Real Estate ETF, ishares U.S. Technology ETF, ishares U.S. Telecommunications ETF, ishares U.S. Utilities ETF, PIMCO 0-5 Year High Yield Corporate Bond Index Fund, PIMCO 1-5 Year U.S. TIPS Index Fund, PIMCO Enhanced Short Maturity Strat Fund, PIMCO Intermediate Muni Bond Strat Fund, PIMCO Short Term Municipal Bond Strategy, PIMCO Total Return ETF, Vanguard FTSE Emerging Markets ETF. 12

Within the last 12 months, Morgan Stanley Wealth Management or an affiliate received compensation for investment banking services from the following issuers (if the security is an ETF or Closed- End Fund, the compensation is from the fund's investment manager or advisor): First Trust Dow Jones Internet Indx Fund, First Trust ISE-Revere Natural Gas Index, First Trust Large Cap Core AlphaDEX Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust North American Energy Infrastructure Fund, FlexShares Morningstar Global Upstream Natural Resources. In the next 3 months, Morgan Stanley Wealth Management or an affiliate will seek compensation for investment banking services from the following issuers (if the security is an ETF or Closed-End Fund, the compensation is from the fund's investment manager or advisor): First Trust Dow Jones Internet Indx Fund, First Trust ISE-Revere Natural Gas Index, First Trust Large Cap Core AlphaDEX Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust North American Energy Infrastructure Fund, FlexShares Morningstar Global Upstream Natural Resources, ishares PHLX Semiconductor ETF, PIMCO 0-5 Year High Yield Corporate Bond Index Fund, PIMCO 1-5 Year U.S. TIPS Index Fund, PIMCO Enhanced Short Maturity Strat Fund, PIMCO Intermediate Muni Bond Strat Fund, PIMCO Short Term Municipal Bond Strategy, PIMCO Total Return ETF, SPDR S&P MidCap 400 ETF, Vanguard Consumer Discretionary ETF, Vanguard Consumer Staples ETF, Vanguard Dividend Appreciation ETF, Vanguard Energy ETF, Vanguard Extended Market ETF, Vanguard Financials ETF, Vanguard FTSE All World ex-us Small-Cap, Vanguard FTSE All-World ex- US ETF, Vanguard FTSE Developed Markets ETF, Vanguard FTSE Emerging Markets ETF, Vanguard FTSE Europe ETF, Vanguard FTSE Pacific ETF, Vanguard Growth ETF, Vanguard Health Care ETF, Vanguard High Dividend Yield ETF, Vanguard Industrials ETF, Vanguard Information Technology ETF, Vanguard Intermediate-Term Bond ETF, Vanguard Intermediate-Term Corporate Bond ETF, Vanguard Large-Cap ETF, Vanguard Materials ETF, Vanguard Mid-Cap ETF, Vanguard Mid-Cap Growth ETF, Vanguard Mid-Cap Value ETF, Vanguard REIT ETF, Vanguard Short-Term Bond ETF, Vanguard Short-Term Corporate Bond ETF, Vanguard Small-Cap ETF, Vanguard Small-Cap Growth ETF, Vanguard Small-Cap Value ETF, Vanguard Telecom Services ETF, Vanguard Total Bond Market ETF, Vanguard Total International Bond ETF, Vanguard Total Stock Market ETF, Vanguard Total World Stock Index Fund, Vanguard Utilities ETF, Vanguard Value ETF. Within the last 12 months, Morgan Stanley Wealth Management or an affiliate managed or co-managed a public offering (or 144a offering) for: FlexShares Morningstar Global Upstream Natural Resources. Within the last 12 months, Morgan Stanley Wealth Management or an affiliate has provided or is providing investment banking services to, or has an investment banking client relationship with, the following issuers (if the security is an ETF or Closed-End Fund, the services were or are being provided to, or the relationship is with, the fund's investment manager or advisor): First Trust Dow Jones Internet Indx Fund, First Trust ISE-Revere Natural Gas Index, First Trust Large Cap Core AlphaDEX Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust North American Energy Infrastructure Fund, FlexShares Morningstar Global Upstream Natural Resources, ishares PHLX Semiconductor ETF, PIMCO 0-5 Year High Yield Corporate Bond Index Fund, PIMCO 1-5 Year U.S. TIPS Index Fund, PIMCO Enhanced Short Maturity Strat Fund, PIMCO Intermediate Muni Bond Strat Fund, PIMCO Short Term Municipal Bond Strategy, PIMCO Total Return ETF, SPDR S&P MidCap 400 ETF, Vanguard Consumer Discretionary ETF, Vanguard Consumer Staples ETF, Vanguard Dividend Appreciation ETF, Vanguard Energy ETF, Vanguard Extended Market ETF, Vanguard Financials ETF, Vanguard FTSE All World ex-us Small-Cap, Vanguard FTSE All-World ex-us ETF, Vanguard FTSE Developed Markets ETF, Vanguard FTSE Emerging Markets ETF, Vanguard FTSE Europe ETF, Vanguard FTSE Pacific ETF, Vanguard Growth ETF, Vanguard Health Care ETF, Vanguard High Dividend Yield ETF, Vanguard Industrials ETF, Vanguard Information Technology ETF, Vanguard Intermediate-Term Bond ETF, Vanguard Intermediate-Term Corporate Bond ETF, Vanguard Large-Cap ETF, Vanguard Materials ETF, Vanguard Mid-Cap ETF, Vanguard Mid-Cap Growth ETF, Vanguard Mid-Cap Value ETF, Vanguard REIT ETF, Vanguard Short-Term Bond ETF, Vanguard Short-Term Corporate Bond ETF, Vanguard Small-Cap ETF, Vanguard Small- Cap Growth ETF, Vanguard Small-Cap Value ETF, Vanguard Telecom Services ETF, Vanguard Total Bond Market ETF, Vanguard Total International Bond ETF, Vanguard Total Stock Market ETF, Vanguard Total World Stock Index Fund, Vanguard Utilities ETF, Vanguard Value ETF. Within the last 12 months, Morgan Stanley Wealth Management has received compensation for products or services other than investment banking services from the following issuers (if the security is an ETF or Closed-End Fund, the compensation is from the fund's investment manager or advisor): ALPS Sector Dividend Dogs ETF, Consumer Discretionary Select Sector, Consumer Staples Select Sector SPDR, Direxion Daily Financial Bear 3x Shares, Direxion Daily Financial Bull 3x Shares, EGShares Beyond BRICs ETF, Energy Select Sector SPDR, Financials Select Sector SPDR, FlexShares Morningstar Global Upstream Natural Resources, Guggenheim BRIC ETF, Guggenheim BulletShares 2018 Corporate Bond ETF, Guggenheim China Small Cap ETF, Guggenheim Multi- Asset Income ETF, Guggenheim Russell Top 50 Mega Cap ETF, Guggenheim S&P 500 Pure Growth ETF, Guggenheim S&P Equal Weight ETF, Guggenheim S&P Global Water Index ETF, Guggenheim Solar ETF, Health Care Select Sector SPDR, Industrials Select Sector SPDR, IQ Global Resources ETF, IQ Hedge Multi-Strategy Tracker ETF, ishares 1-3 Year Credit Bond ETF, ishares 1-3 Year Treasury Bond ETF, ishares 20+ Year Treasury Bond ETF, ishares 3-7 Year Treasury Bond ETF, ishares 7-10 Year Treasury Bond ETF, ishares Agency Bond ETF, ishares China Large-Cap ETF, ishares Cohen & Steers REIT ETF, ishares Core High Dividend ETF, ishares Core MSCI EAFE ETF, ishares Core MSCI Emerging Markets ETF, ishares Core S&P 500 ETF, ishares Core S&P Mid-Cap ETF, ishares Core S&P Small-Cap ETF, ishares Core Total US Bond Market ETF, ishares Core US Growth ETF, ishares Core US Value ETF, ishares Dow Jones U.S. ETF, ishares Europe ETF, ishares Floating Rate Bond ETF, ishares Global 100 ETF, ishares Global Consumer Discretionary ETF, ishares Global Consumer Staples ETF, ishares Global Energy ETF, ishares Global Financials ETF, ishares Global Healthcare ETF, ishares Global Industrials ETF, ishares Global Infrastructure ETF, ishares Global Materials ETF, ishares Global Tech ETF, ishares Global Telecom ETF, ishares Global Utilities ETF, ishares Gold Trust, ishares iboxx $ High Yield Corp Bond ETF, ishares iboxx $ Invt Grade Corp Bond ETF, ISHARES INC.-ISHARES MSCI UNITED KINGDOM INDEX FUND, ishares Intermediate Credit Bond ETF, ishares International Treasury Bond ETF, ishares Intl Select Dividend ETF, ishares J.P. Morgan USD Emerging Mkts, ishares Latin America 40 ETF, ishares MBS ETF, ishares Micro-Cap ETF, ishares Morningstar Large-Cap Growth ETF, ishares Morningstar Large-Cap Value ETF, ishares Morningstar Mid-Cap 13

Growth ETF, ishares Morningstar Mid-Cap Value ETF, ishares MSCI ACWI ETF, ishares MSCI ACWI ex U.S. ETF, ishares MSCI All Country Asia ex Japan ETF, ishares MSCI All Peru Capped ETF, ishares MSCI Australia ETF, ishares MSCI Brazil Capped ETF, ishares MSCI BRIC ETF, ishares MSCI Canada ETF, ishares MSCI Chile Capped ETF, ishares MSCI China ETF, ishares MSCI EAFE ETF, ishares MSCI EAFE Growth ETF, ishares MSCI EAFE Small-Cap ETF, ishares MSCI EAFE Value ETF, ishares MSCI Emerging Markets ETF, ishares MSCI Emerging Mkts Min Vol, ishares MSCI EMU ETF, ishares MSCI France ETF, ishares MSCI Frontier 100 ETF, ishares MSCI Germany ETF, ishares MSCI Hong Kong ETF, ishares MSCI Indonesia ETF, ishares MSCI Israel Capped ETF, ishares MSCI Italy Capped ETF, ishares MSCI Japan ETF, ishares MSCI Malaysia ETF, ishares MSCI Mexico Capped ETF, ishares MSCI Pacific ex Japan ETF, ishares MSCI Philippines ETF, ishares MSCI Poland Capped ETF, ishares MSCI Russia Capped ETF, ishares MSCI Singapore ETF, ishares MSCI South Africa ETF, ishares MSCI South Korea Capped ETF, ishares MSCI Spain Capped ETF, ishares MSCI Sweden ETF, ishares MSCI Switzerland Capped ETF, ishares MSCI Taiwan ETF, ishares MSCI Thailand Capped ETF, ishares MSCI Turkey ETF, ishares MSCI USA Minimum Volatility ETF, ishares Nasdaq Biotechnology ETF, ishares National AMT-Free Muni Bond ETF, ishares North American Natural Resources, ishares North American Tech ETF, ishares North American Tech-Software ETF, ishares PHLX Semiconductor ETF, ishares Russell 1000 ETF, ishares Russell 1000 Growth ETF, ishares Russell 1000 Value ETF, ishares Russell 2000 ETF, ishares Russell 2000 Growth ETF, ishares Russell 2000 Value ETF, ishares Russell 3000 ETF, ishares Russell Mid-Cap ETF, ishares Russell Mid-Cap Growth ETF, ishares Russell Mid-Cap Value ETF, ishares S&P 100 ETF, ishares S&P 500 Growth ETF, ishares S&P 500 Value ETF, ishares S&P GSCI Commodity-Indexed Trust, ishares S&P Mid-Cap 400 Growth ETF, ishares S&P Mid-Cap 400 Value ETF, ishares S&P Small-Cap 600 Growth ETF, ishares S&P Small-Cap 600 Value ETF, ishares Select Dividend ETF, ishares Short Maturity Bond ETF, ishares Short Treasury Bond ETF, ishares Short-Term Natl AMT-Free Muni, ishares Silver Trust, ishares TIPS Bond ETF, ishares Transportation Average ETF, ishares U.S. Aerospace & Defense ETF, ishares U.S. Basic Materials ETF, ishares U.S. Broker-Dealers ETF, ishares U.S. Consumer Goods ETF, ishares U.S. Consumer Services ETF, ishares U.S. Energy ETF, ishares U.S. Financial Services ETF, ishares U.S. Financials ETF, ishares U.S. Healthcare ETF, ishares U.S. Home Construction ETF, ishares U.S. Industrials ETF, ishares U.S. Medical Devices ETF, ishares U.S. Oil & Gas Exp & Prod ETF, ishares U.S. Oil Equip & Services ETF, ishares U.S. Preferred Stock ETF, ishares U.S. Real Estate ETF, ishares U.S. Technology ETF, ishares U.S. Telecommunications ETF, ishares U.S. Utilities ETF, Market Vectors Agribusiness ETF, Market Vectors Brazil Small-Cap ETF, Market Vectors Coal ETF, Market Vectors Egypt Index ETF, Market Vectors Emerging Mkts Local CCY, Market Vectors Global Alternative Energy, Market Vectors Gold Miners ETF, Market Vectors Hard Assets Producers ETF, Market Vectors High Yield Muni Index ETF, Market Vectors Indonesia Index ETF, Market Vectors Intermediate Muni Index, Market Vectors Junior Gold Miners ETF, Market Vectors Oil Services ETF, Market Vectors Pharmaceutical ETF, Market Vectors Pre-Refunded Municipal Index ETF, Market Vectors Russia ETF, Market Vectors Semiconductor ETF, Market Vectors Vietnam ETF, Materials Select Sector SPDR, PIMCO 0-5 Year High Yield Corporate Bond Index Fund, PIMCO 1-5 Year U.S. TIPS Index Fund, PIMCO Enhanced Short Maturity Strat Fund, PIMCO Intermediate Muni Bond Strat Fund, PIMCO Short Term Municipal Bond Strategy, PIMCO Total Return ETF, PowerShares Build America Bond Portfolio, PowerShares Buyback Achievers, PowerShares DB Agriculture Fund, PowerShares DB Base Metals Fund, PowerShares DB Energy Fund, PowerShares DB G10 Currency Harvest Fund, PowerShares DB Oil Fund, PowerShares DB US Dollar Index Bearish, PowerShares DB US Dollar Index Bullish, PowerShares DWA Emerging Markets Technical Leaders Portfolio, PowerShares Dynamic Large Cap Value, PowerShares Dynamic Large-Cap Growth, PowerShares Dynamic Market Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Financial Pref Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Gbl Clean Energy Portfolio, PowerShares Global Listed Private Equity Portfolio, PowerShares Global Water Portfolio, PowerShares Intl Div Achievers Portfolio, PowerShares Preferred Portfolio, PowerShares QQQ, PowerShares S&P 500 BuyWrite Portfolio, PowerShares S&P 500 Low Volatility Portfolio, PowerShares Senior Loan Portfolio, PowerShares VRDO Tax-Free Wkly Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy, SPDR Barclays 1-3 Month T-Bill ETF, SPDR Barclays Intl Treasury Bond ETF, SPDR DB Intl Gov't Inflation- Protected, SPDR Dow Jones Global Real Estate ETF, SPDR Dow Jones Intl Real Estate ETF, SPDR EURO STOXX 50 ETF, SPDR S&P China ETF, SPDR S&P Emerging Asia Pacific ETF, SPDR S&P Emerging Markets Small Cap ETF, SPDR S&P International Dividend ETF, SPDR S&P International Small Cap ETF, Technology Select Sector SPDR, Utilities Select Sector SPDR, Vanguard Consumer Discretionary ETF, Vanguard Consumer Staples ETF, Vanguard Dividend Appreciation ETF, Vanguard Energy ETF, Vanguard Extended Market ETF, Vanguard Financials ETF, Vanguard FTSE All World ex-us Small-Cap, Vanguard FTSE All-World ex-us ETF, Vanguard FTSE Developed Markets ETF, Vanguard FTSE Emerging Markets ETF, Vanguard FTSE Europe ETF, Vanguard FTSE Pacific ETF, Vanguard Growth ETF, Vanguard Health Care ETF, Vanguard High Dividend Yield ETF, Vanguard Industrials ETF, Vanguard Information Technology ETF, Vanguard Intermediate- Term Bond ETF, Vanguard Intermediate-Term Corporate Bond ETF, Vanguard Large-Cap ETF, Vanguard Materials ETF, Vanguard Mid-Cap ETF, Vanguard Mid-Cap Growth ETF, Vanguard Mid-Cap Value ETF, Vanguard REIT ETF, Vanguard Short-Term Bond ETF, Vanguard Short-Term Corporate Bond ETF, Vanguard Small-Cap ETF, Vanguard Small-Cap Growth ETF, Vanguard Small-Cap Value ETF, Vanguard Telecom Services ETF, Vanguard Total Bond Market ETF, Vanguard Total International Bond ETF, Vanguard Total Stock Market ETF, Vanguard Total World Stock Index Fund, Vanguard Utilities ETF, Vanguard Value ETF. Within the last 12 months, Morgan Stanley Wealth Management has either provided or is providing non-investment banking, securities-related services to and/or in the past has entered into an agreement to provide services or has a client relationship with the following issuers (if the security is an ETF or Closed-End Fund, the services were or are being provided to, or the agreement is with, the fund's investment manager or advisor): ALPS Sector Dividend Dogs ETF, Consumer Discretionary Select Sector, Consumer Staples Select Sector SPDR, Direxion Daily Financial Bear 3x Shares, Direxion Daily Financial Bull 3x Shares, EGShares Beyond BRICs ETF, Energy Select Sector SPDR, Financials Select Sector SPDR, First Trust Dow Jones Internet Indx Fund, First Trust ISE-Revere Natural Gas Index, First Trust Large Cap Core AlphaDEX Fund, First Trust Morningstar Dividend Leaders Index Fund, First Trust North American Energy Infrastructure Fund, FlexShares Morningstar 14

Global Upstream Natural Resources, Guggenheim BRIC ETF, Guggenheim BulletShares 2018 Corporate Bond ETF, Guggenheim China Small Cap ETF, Guggenheim Multi-Asset Income ETF, Guggenheim Russell Top 50 Mega Cap ETF, Guggenheim S&P 500 Pure Growth ETF, Guggenheim S&P Equal Weight ETF, Guggenheim S&P Global Water Index ETF, Guggenheim Solar ETF, Health Care Select Sector SPDR, Industrials Select Sector SPDR, IQ Global Resources ETF, IQ Hedge Multi-Strategy Tracker ETF, ishares 1-3 Year Credit Bond ETF, ishares 1-3 Year Treasury Bond ETF, ishares 20+ Year Treasury Bond ETF, ishares 3-7 Year Treasury Bond ETF, ishares 7-10 Year Treasury Bond ETF, ishares Agency Bond ETF, ishares China Large-Cap ETF, ishares Cohen & Steers REIT ETF, ishares Core High Dividend ETF, ishares Core MSCI EAFE ETF, ishares Core MSCI Emerging Markets ETF, ishares Core S&P 500 ETF, ishares Core S&P Mid-Cap ETF, ishares Core S&P Small-Cap ETF, ishares Core Total US Bond Market ETF, ishares Core US Growth ETF, ishares Core US Value ETF, ishares Dow Jones U.S. ETF, ishares Europe ETF, ishares Floating Rate Bond ETF, ishares Global 100 ETF, ishares Global Consumer Discretionary ETF, ishares Global Consumer Staples ETF, ishares Global Energy ETF, ishares Global Financials ETF, ishares Global Healthcare ETF, ishares Global Industrials ETF, ishares Global Infrastructure ETF, ishares Global Materials ETF, ishares Global Tech ETF, ishares Global Telecom ETF, ishares Global Utilities ETF, ishares Gold Trust, ishares iboxx $ High Yield Corp Bond ETF, ishares iboxx $ Invt Grade Corp Bond ETF, ISHARES INC.-ISHARES MSCI UNITED KINGDOM INDEX FUND, ishares Intermediate Credit Bond ETF, ishares International Treasury Bond ETF, ishares Intl Select Dividend ETF, ishares J.P. Morgan USD Emerging Mkts, ishares Latin America 40 ETF, ishares MBS ETF, ishares Micro-Cap ETF, ishares Morningstar Large-Cap Growth ETF, ishares Morningstar Large-Cap Value ETF, ishares Morningstar Mid-Cap Growth ETF, ishares Morningstar Mid-Cap Value ETF, ishares MSCI ACWI ETF, ishares MSCI ACWI ex U.S. ETF, ishares MSCI All Country Asia ex Japan ETF, ishares MSCI All Peru Capped ETF, ishares MSCI Australia ETF, ishares MSCI Brazil Capped ETF, ishares MSCI BRIC ETF, ishares MSCI Canada ETF, ishares MSCI Chile Capped ETF, ishares MSCI China ETF, ishares MSCI EAFE ETF, ishares MSCI EAFE Growth ETF, ishares MSCI EAFE Small-Cap ETF, ishares MSCI EAFE Value ETF, ishares MSCI Emerging Markets ETF, ishares MSCI Emerging Mkts Min Vol, ishares MSCI EMU ETF, ishares MSCI France ETF, ishares MSCI Frontier 100 ETF, ishares MSCI Germany ETF, ishares MSCI Hong Kong ETF, ishares MSCI Indonesia ETF, ishares MSCI Israel Capped ETF, ishares MSCI Italy Capped ETF, ishares MSCI Japan ETF, ishares MSCI Malaysia ETF, ishares MSCI Mexico Capped ETF, ishares MSCI Pacific ex Japan ETF, ishares MSCI Philippines ETF, ishares MSCI Poland Capped ETF, ishares MSCI Russia Capped ETF, ishares MSCI Singapore ETF, ishares MSCI South Africa ETF, ishares MSCI South Korea Capped ETF, ishares MSCI Spain Capped ETF, ishares MSCI Sweden ETF, ishares MSCI Switzerland Capped ETF, ishares MSCI Taiwan ETF, ishares MSCI Thailand Capped ETF, ishares MSCI Turkey ETF, ishares MSCI USA Minimum Volatility ETF, ishares Nasdaq Biotechnology ETF, ishares National AMT-Free Muni Bond ETF, ishares North American Natural Resources, ishares North American Tech ETF, ishares North American Tech- Software ETF, ishares PHLX Semiconductor ETF, ishares Russell 1000 ETF, ishares Russell 1000 Growth ETF, ishares Russell 1000 Value ETF, ishares Russell 2000 ETF, ishares Russell 2000 Growth ETF, ishares Russell 2000 Value ETF, ishares Russell 3000 ETF, ishares Russell Mid-Cap ETF, ishares Russell Mid-Cap Growth ETF, ishares Russell Mid-Cap Value ETF, ishares S&P 100 ETF, ishares S&P 500 Growth ETF, ishares S&P 500 Value ETF, ishares S&P GSCI Commodity-Indexed Trust, ishares S&P Mid-Cap 400 Growth ETF, ishares S&P Mid-Cap 400 Value ETF, ishares S&P Small-Cap 600 Growth ETF, ishares S&P Small-Cap 600 Value ETF, ishares Select Dividend ETF, ishares Short Maturity Bond ETF, ishares Short Treasury Bond ETF, ishares Short- Term Natl AMT-Free Muni, ishares Silver Trust, ishares TIPS Bond ETF, ishares Transportation Average ETF, ishares U.S. Aerospace & Defense ETF, ishares U.S. Basic Materials ETF, ishares U.S. Broker-Dealers ETF, ishares U.S. Consumer Goods ETF, ishares U.S. Consumer Services ETF, ishares U.S. Energy ETF, ishares U.S. Financial Services ETF, ishares U.S. Financials ETF, ishares U.S. Healthcare ETF, ishares U.S. Home Construction ETF, ishares U.S. Industrials ETF, ishares U.S. Medical Devices ETF, ishares U.S. Oil & Gas Exp & Prod ETF, ishares U.S. Oil Equip & Services ETF, ishares U.S. Preferred Stock ETF, ishares U.S. Real Estate ETF, ishares U.S. Technology ETF, ishares U.S. Telecommunications ETF, ishares U.S. Utilities ETF, Market Vectors Agribusiness ETF, Market Vectors Brazil Small-Cap ETF, Market Vectors Coal ETF, Market Vectors Egypt Index ETF, Market Vectors Emerging Mkts Local CCY, Market Vectors Global Alternative Energy, Market Vectors Gold Miners ETF, Market Vectors Hard Assets Producers ETF, Market Vectors High Yield Muni Index ETF, Market Vectors Indonesia Index ETF, Market Vectors Intermediate Muni Index, Market Vectors Junior Gold Miners ETF, Market Vectors Oil Services ETF, Market Vectors Pharmaceutical ETF, Market Vectors Pre-Refunded Municipal Index ETF, Market Vectors Russia ETF, Market Vectors Semiconductor ETF, Market Vectors Vietnam ETF, Materials Select Sector SPDR, PIMCO 0-5 Year High Yield Corporate Bond Index Fund, PIMCO 1-5 Year U.S. TIPS Index Fund, PIMCO Enhanced Short Maturity Strat Fund, PIMCO Intermediate Muni Bond Strat Fund, PIMCO Short Term Municipal Bond Strategy, PIMCO Total Return ETF, PowerShares Build America Bond Portfolio, PowerShares Buyback Achievers, PowerShares DB Agriculture Fund, PowerShares DB Base Metals Fund, PowerShares DB Energy Fund, PowerShares DB G10 Currency Harvest Fund, PowerShares DB Oil Fund, PowerShares DB US Dollar Index Bearish, PowerShares DB US Dollar Index Bullish, PowerShares DWA Emerging Markets Technical Leaders Portfolio, PowerShares Dynamic Large Cap Value, PowerShares Dynamic Large-Cap Growth, PowerShares Dynamic Market Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Financial Pref Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Gbl Clean Energy Portfolio, PowerShares Global Listed Private Equity Portfolio, PowerShares Global Water Portfolio, PowerShares Intl Div Achievers Portfolio, PowerShares Preferred Portfolio, PowerShares QQQ, PowerShares S&P 500 BuyWrite Portfolio, PowerShares S&P 500 Low Volatility Portfolio, PowerShares Senior Loan Portfolio, PowerShares VRDO Tax-Free Wkly Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy, SPDR Barclays 1-3 Month T-Bill ETF, SPDR Barclays Intl Treasury Bond ETF, SPDR DB Intl Gov't Inflation-Protected, SPDR Dow Jones Global Real Estate ETF, SPDR Dow Jones Intl Real Estate ETF, SPDR EURO STOXX 50 ETF, SPDR S&P China ETF, SPDR S&P Emerging Asia Pacific ETF, SPDR S&P Emerging Markets Small Cap ETF, SPDR S&P International Dividend ETF, SPDR S&P International Small Cap ETF, SPDR S&P MidCap 400 ETF, Technology Select Sector SPDR, Utilities Select Sector SPDR, Vanguard Consumer Discretionary ETF, 15