FOCUS ON HIGH-QUALITY EQUITIES

Equity Yields Are Outpacing Fixed Income¹

"So what do I do with my money?"

Not all stocks, however, are created equal. While it’s no secret that many economies, particularly in the developed world, are struggling, that doesn’t mean all companies in those markets are. There are still long-term winners – and the key is to identify these high-quality companies. These sorts of companies can be found in countries around the globe and in all sizes, and have three common characteristics:

1. A differentiated, competitive business model, often one with pricing power and exposure to faster growing areas of the world, such as emerging markets.
2. The ability to generate consistent cash flows across an entire business cycle and a commitment to return that cash to shareholders.
3. Healthy balance sheets with low levels of debt.

Visit blackrock.com, iShares.com or contact your financial professional for a prospectus or summary prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing. Investing involves risk, including possible loss of principal.

Diversification and asset allocation strategies do not ensure a profit or protect against loss in falling markets.

In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. The two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.

Transactions in shares of ETFs will result in brokerage commissions and will generate tax consequences. Mutual funds and ETFs are obliged to distribute portfolio gains to shareholders at year’s end. This material is not intended to be tax advice. The tax consequences of dividend distributions may vary by individual taxpayer. Please consult your tax professional or financial advisor for more information with regard to your specific situation.

The BlackRock mutual funds and iShares Funds are distributed by BlackRock Investments, LLC, member Finra. The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Dow Jones Trademark Holdings, LLC, Markit Indices Limited, Morningstar, Inc., MSCI Inc., Russell Investment Group, or Standard & Poor’s, nor are they sponsored, endorsed or issued by Barclays Capital Inc. None of these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.

¹Bloomberg 12/31/85 – 3/30/12. Yield on the S&P 500 and MSCI World represents the 12 month dividend yield on the indexes.

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