Paying less in taxes means more money in your pocket

In a low return environment, every dollar counts. Now more than ever, it’s important for investors to consider tax efficiency in building a portfolio.

iShares ETFs can help you keep more of what you earn
10+ year track record of tax efficiency for the iShares fund family
99% of iShares did not pay capital gains in 2013
230+ iShares ETFs have never paid a capital gain

Source: BlackRock, 2013

The Long Term Impact

  • See below for an example of the long term impact of taxes, where an investor could have paid over $5,000 in taxes by Year 5.
  • Capital gains taxes alone can cause significant damage. If a fund pays a $10,000 distribution to you, you could owe between $1,500 to $3,500 in taxes.
  • For many investors, that could be an expense they didn’t expect and one they can’t afford.
Tax Chart

Hypothetical example – not indicative of any investment or portfolio. Information should not be relied upon as research, investment advice or a recommendation. Strictly for illustrative and educational purposes.

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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.

iShares Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the iShares Funds will also generate tax consequences and transaction expenses.

The information provided is not intended to be tax advice. Investors should be urged to consult their tax professionals or financial advisors for more information regarding their specific tax situations.

The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

BlackRock does not provide tax advice. Please note that (i) any discussion of US tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

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