Despite all the benefits, there are still some misperceptions about ETFs. Here are some additional things to keep in mind:

ETFs Tend to Reflect Market Sentiment

It's not uncommon to see spikes in ETF trading when the broader market is more tumultuous. This is because ETFs can be traded throughout the day when the market is open, not because ETFs determine the direction of the market.

Read more about how ETFs fluctuate with the market


ETFs Exhibit Real-Time Prices

The price of ETFs fluctuate during the day as investors buy and sell them based on news happening around the world. Sometimes ETFs trade at a discount or a premium compared to the value of their underlying holdings (i.e., the stocks or bonds in the fund), but it is often the value of the holdings that catches up to the price.

Learn more about the price of ETFs


Securities Lending Can Enhance Returns

Securities lending is a well-established practice where ETFs make short-term loans to large financial institutions. It can incrementally increase return for shareholders. Because securities lending is an important component of a fund's return, we encourage all investors to learn more about how it works.

Find out about securities lending and ETFs


How Indices Differ

Each index provider creates their own combination of requirements to define a universe of indices. Understanding these differences can help you guarantee that your or your clients' portfolios have the correct ETF to meet their investment needs.

Learn more about how Indices differ.


Basic Strategies

Designed to provide an easy mechanism for gaining different types of exposure, iShares ETFs represent an ideal tool for implementing a variety of asset allocation strategies. Learn how to take advantage of iShares' flexibility to diversify and thus, intelligently control risk exposure and reduce the volatility of investments.

Explore a variety of ETF strategies here.

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Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained visiting the iShares ETF prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.

Investing involves risk including loss of principal. The opinions presented are those of Kate Moore, Chief Equity Strategist, as of September 9th, 2016 and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and/or made investment decisions that may, in certain respects, not be consistent with the information contained in this presentation. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this presentation are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the viewer.

There is no guarantee that there will be borrower demand for shares of the iShares Funds, or that securities lending will generate any level of income. Distributions paid out of the Fund’s net investment income, including income from securities lending, if any, are taxable to investors as ordinary income.

©2017 BlackRock, Inc. All Rights Reserved. BLACKROCK, BLACKROCK SOLUTIONS and iSHARES are registered trademarks of BlackRock, Inc. All other trademarks are those of their respective owners.

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