FACTOR THESE FUNDS
INTO YOUR GAME PLAN
iSHARES EDGE MSCI FACTOR ETFS PRODUCT BRIEF
Targeted Access to Specific Factors
Investing in stocks with specific characteristics or factors may provide a
way to potentially enhance a portfolio’s return.1 iShares Factor ETFs go
beyond traditional cap-weighted portfolios and offer targeted exposure
to U.S. or international stocks driven by quality, value, size, or
momentum factors. The funds can be used to express a factor-specific
view to isolate potential drivers of performance.
Key Factors that Have Driven Investment
Performance Over Time

Quality. Investing in stocks based on the quality and consistency of
earnings and balance sheet strength

Value. Buying low and selling high, the timeless adage based on
the belief that buying stocks that are cheap relative to fundamentals
is smarter than buying stocks that are expensive relative to
fundamentals

Size. Small market-cap companies may carry high growth potential

Momentum. The idea of investing in well-performing stocks. Based
on the belief that stocks with higher relative performance may
continue to produce strong performance in the near term, relative to
stocks with weak performance
Factors at Different Points in the Business Cycle
QUAL
iShares Edge MSCI USA
Quality Factor ETF
VLUE
iShares Edge MSCI USA
Value Factor ETF
SIZE
iShares Edge MSCI USA
Size Factor ETF
MTUM
iShares Edge MSCI USA
Momentum Factor ETF
IQLT
iShares Edge MSCI Intl Quality
Factor ETF
IVLU
iShares Edge MSCI Intl Value
Factor ETF
ISZE
iShares Edge MSCI Intl Size
Factor ETF
Some factors have historically performed better at certain points
through the economic cycle. (Figure 1)
Figure 1
Historical Factor Performance in Business Cycle
Early Cycle
Recovery
Mid Cycle
Slowdown
Late Cycle
Pick-Up
IMTM
1
Contraction/
Recession
Quality
Minimum
Volatility
Momentum
Quality
Minimum
Volatility
Size
Value
iShares Edge MSCI Intl
Momentum Factor ETF
Size
Value
Quality stocks are more defensive in
nature and have tended to perform
best at the peak of an economic cycle
or at the beginning of an economic
slowdown
Value stocks are pro-cyclical and
have historically performed more
strongly coming off the bottom of
an economic cycle
For illustrative purposes only.
1. Published research showing the historical outperformance of these factors includes: Value: J. Lakonishok, A. Shleifer, R. Vishny, “Contrarian Investment, Extrapolation, and Risk.”
Journal of Finance, 1994. Momentum: N. Jegadeesh and S. Titman, “Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency.” Journal of Finance, 1993.
Quality: R. Sloan, “Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings.” Accounting Review, 1996. Low volatility/size: R. Clarke, H. Silva and
S. Thorley, ”Minimum-Variance Portfolios in the U. S. Equity Market,” Journal of Portfolio Management, 2006. Past performance is no guarantee of future results.
Fund Details
Quality
USA
Ticker
Value
International
Developed
Size
USA
USA
International
Developed
IVLU
SIZE
ISZE
QUAL
IQLT
VLUE
iShares Edge
MSCI USA
Quality Factor
ETF
iShares Edge
MSCI Intl
Quality Factor
ETF
iShares Edge
MSCI USA
Value Factor
ETF
Expense Ratio
0.15%
0.30%
0.15%
0.30%
0.15%
Fund Inception
Date
7/16/2013
1/13/15
4/16/2013
6/16/15
4/16/2013
MSCI USA
Sector Neutral
Quality Index
MSCI World ex
USA Sector
Neutral Quality
Index
MSCI USA
Enhanced
Value Index
Fund Name
Index Name
Momentum
International
Developed
USA
International
Developed
MTUM
IMTM
iShares Edge
MSCI USA
Momentum
Factor ETF
iShares Edge
MSCI Intl
Momentum
Factor ETF
0.30%
0.15%
0.30%
6/16/15
4/16/2013
1/13/15
MSCI USA
Momentum
Index
MSCI World ex
USA
Momentum
Index
iShares Edge
iShares Edge
iShares MSCI
MSCI Intl Value MSCI USA Size Intl Size Factor
Factor ETF
Factor ETF
ETF
MSCI World ex
MSCI World ex
MSCI USA Risk
USA Enhanced
USA Risk
Weighted Index
Value Index
Weighted Index
Source: MSCI, BlackRock, as of 12/31/2016
The Rest of the iShares Factor ETF Suite
Volatility Focus:
iShares Edge Min Vol ETFs
iShares Edge
USMV MSCI USA Min
Vol ETF
EFAV
iShares Edge
MSCI EAFE
Min Vol ETF
iShares Edge
EUMV MSCI Min Vol
Europe ETF
Multi-Factor:
iShares Edge Multifactor ETFs
iShares Edge MSCI Min
EEMV Vol Emerging Markets
ETF
JPMV
iShares Edge MSCI Min
Vol Japan ETF
iShares Edge MSCI
AXJV Min Vol Asia ex
Japan ETF
iShares Edge
ACWV MSCI Min Vol
Global ETF
Carefully consider the iShares Funds’ investment objectives,
risk factors, and charges and expenses before investing. This
and other information can be found in the Funds’
prospectuses, which may be obtained by calling 1-800iShares (1-800-474-2737) or by visiting www.iShares.com.
Read the prospectus carefully before investing.
iS-18194-0117
Investing involves risk, including possible loss of principal.
International investing involves risks, including risks related to foreign currency, limited
liquidity, less government regulation and the possibility of substantial volatility due to
adverse political, economic or other developments. These risks often are heightened for
investments in emerging/developing markets and in concentrations of single countries.
Small-capitalization companies may be less stable and more susceptible to adverse
developments, and their securities may be more volatile and less liquid than larger
capitalization companies.
There can be no assurance that performance will be enhanced for funds that seek to
provide exposure to certain quantitative investment characteristics ("factors"). Exposure to
such investment factors may detract from performance in some market environments,
iShares Edge
LRGF MSCI Multifactor
USA ETF
iShares Edge
ACWF MSCI Multifactor
Global ETF
iShares Edge
SMLF MSCI Multifactor
USA Small-Cap ETF
INTF
iShares Edge
MSCI Multifactor
Intl ETF
ISCF
iShares Edge
MSCI Multifactor Intl
Small-Cap ETF
perhaps for extended periods. In such circumstances, a fund may seek to maintain
exposure to the targeted investment factors and not adjust to target different factors,
which could result in losses.
The iShares Minimum Volatility ETFs may experience more than minimum volatility
as there is no guarantee that the underlying index's strategy of seeking to lower
volatility will be successful. Actively managed funds do not seek to replicate the
performance of a specified index. Actively managed funds may have higher portfolio
turnover than index funds.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI
Inc., nor does this company make any representation regarding the advisability of
investing in the Funds. BlackRock is not affiliated with MSCI Inc.
The iShares Funds are distributed by BlackRock Investments, LLC (together with its
affiliates, “BlackRock”).
©2017 BlackRock. All rights reserved. iSHARES, and BLACKROCK are registered
trademarks of BlackRock. All other marks are the property of their respective owners.