BLACKROCK GLOBAL ETP LANDSCAPE

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BLACKROCK GLOBAL ETP LANDSCAPE

INDUSTRY HIGHLIGHTS | JULY 2015

The opinions expressed are as of July 31, 2015 and may change as subsequent conditions vary. ONLY FOR ACCREDITED INVESTORS IN CANADA, QUALIFIED INVESTORS IN SWITZERLAND, AND PROFESSIONAL INVESTORS IN OTHER REGIONS

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Summary

A cross-regional team analyzing global markets to deliver insights on the intersection of investment trends and ETP flows

For inquiries, please email ETPresearch@BlackRock.com

BlackRock ETP Research

_{GLOBAL ETP FLOWS ACCELERATE AS GREECE AND CHINA}

CONCERNS EASE

 July global ETP flows of $36.3bn were the best in five months, with investors initially favoring safer fund categories before shifting attention to non-U.S. developed markets equity later in the month

 U.S. large cap equity and U.S. Treasuries gathered $9.2bn and $3.7bn, respectively, concentrated in the first two weeks given uncertainty surrounding the referendum in Greece and stock market correction in China

 As tensions abated, a greater share of flows moved to non-U.S. developed markets equity, with pan-European exposures reaching $6.6bn, Japan $6.5bn and EAFE $2.2bn

 Currency-hedged equity flows remained steady, with $3.5bn driven by Europe exposures as the U.S. dollar again showed signs of strengthening

 Demand for investment grade and high yield corporate bonds rebounded, with each bringing in over $1bn

Global ETP Overview

3 United States

9 Europe

13 Asia Pacific

17 Canada

20 Latin America

23 Endnotes

25

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ONLY FOR ACCREDITED INVESTORS IN CANADA, QUALIFIED INVESTORS IN SWITZERLAND, AND PROFESSIONAL INVESTORS IN OTHER REGIONS

[ 3 ] KEY INVESTMENT THEMES / ETP FLOW TRENDS

SPOTLIGHT ON SMART BETA

Global smart beta ETPs are experiencing strong flows for a third consecutive year. Assets have expanded rapidly, growing at an annualized rate of nearly 40% since the beginning of 2012. This is twice the rate for the broader ETP industry. A few notable trends:

1) Despite a slowdown for dividend strategies so far this year, flows of $21.7bn for other categories such as minimum volatility and factor funds have accelerated 2) Europe is growing faster than any other region, with

assets of $20bn up 50% per year since 2012 and year-to-date flows approaching $3bn

3) Fixed income smart beta funds are gaining traction, and while assets and flows are still small, a dozen funds have been launched including the first in Europe

Global ETP Highlights

Europe equity Japan equity

Broad dev eqty China equity Global ETP flows accelerated to $36.3bn in July. It was the

second best month of the year, with strong contributions across U.S. equities, non-U.S. developed markets equities and fixed income.

Highlighting the trend of steadily increasing ETP adoption, it was the third straight July with flows over $30bn despite lower trading volumes typical during the summer. The month began with uncertainty over the referendum in Greece and stock market correction in China. This led investors to favor safer equity and fixed income exposures.

U.S. large cap and U.S. Treasuries brought in $9.2bn and

$3.7bn, respectively, though both slowed considerably toward the end of July as market tensions eased and U.S. earnings season got off to a weaker-than-expected start. Focus shifted back to non-U.S. developed markets equities and corporate bonds. Japan, pan-European and EAFE equity exposures all posted strong results. Pan-European flows were particularly robust, rising for the second month to $6.6bn. As Greece fears eased, attention shifted to what has so far been a good earnings season relative to the U.S.

Currency-hedged and smart beta equity, the two fastest

growing ETP segments, remained steady with flows of $3.5bn and $1.6bn, respectively. Smart beta (see below) is still on track to reach the record flows from last year.

GLOBAL SMART BETA ETP FLOWS

GLOBAL ETP FLOWS BY ASSET CLASS & EXPOSURE1

2015 YTD flows: $181.6bn 2.8 (21.6) 1.5 57.2 47.8 34.8 (30) 0 30 60 J F M A M J J Cumulativ e flow s (US$bn) Europe equity Broad dev mkts Japan EM U.S. Other 14.2 18.9 17.0 1.1 5.0 5.5 4.1 5.9 3.9 4.7 3.5 10.3 13.7 7.1 2.6 4.6 6.2 5.2 23.9 43.2 45.7 22.8 0 20 40 60 2012 2013 2014 YTD 2015 Flow s (US$bn) Dividend Minimum volatility Single factor Multi factor Equal weight 9.4 20.7 22.4 6.4 0 10 20 30 J F M A M J J Cumulativ e flow s (US$bn)

Inv grade / high yld corp

U.S. Gov. / Sovereign

Other fixed income

Cmdty / other

Assets

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GLOBAL 13-MONTH ROLLING FLOWS1

(US$bn) RESULTS AT A GLANCE1

(US$bn) ₂₀₁₅July ₂₀₁₄Dec ₂₀₁₄July

Monthly flows 36.3 60.8 32.4

Year-to-date flows 181.6 329.6 155.8

Assets 2,984 2,797 2,585

# of ETPs 5,688 5,431 5,217

The currency-hedged flows were driven by Europe exposures, which accumulated $2.1bn amid renewed U.S. dollar appreciation. The dollar reached a three-month high versus the euro during the month.

Broad EM equities slowed for the third straight month with

redemptions totaling ($2.7bn). However, there has not been a catalyst behind the selling and year-to-date flows are unchanged from March levels. The category has stayed in a tight range all year with the recent outflows offsetting asset gathering in the second quarter.

China equity flows were volatile during July. A-shares

funds listed in China accumulated $8.0bn in the first week despite the sharp market drop. These flows later reversed, resulting in outflows of ($2.0bn).

Conversely, both A-shares and H-shares funds listed in the U.S. began to sell off later in the month. They shed ($0.7bn) after posting steady inflows of $2.4bn during the first half of the year. The CSI 300 fell 14.8% in July, while the Hang Seng index in Hong Kong was down only 6.2%.2 Fixed income flows rebounded to $9.6bn following the first outflows of the year in June. As asset gathering for U.S. Treasuries subsided mid-month, corporate bond flows began to accelerate again. Investment grade corporate

bond funds brought in $1.6bn and high yield corporate bonds added $1.0bn.

Commodities were mixed with outflows totaling ($0.9bn). Both oil and gold prices dropped, but crude oil ETPs saw inflows of $2.1bn while gold redemptions were ($2.3bn).

Global ETP Highlights (cont’d)

Monthly flows (US$bn) 2015 2014 8.5 12.2 49.2 35.7 18.1 21.7 25.9 36.1 36.3 32.4 9.9 41.1 60.8

Commodities & others

Fixed income Equity (20) 0 20 40 60 April January February March May June August October July July September November December

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Year-to-date Overview

GLOBAL ETP FLOWS BY EXPOSURE1

[ 5 ] CUMULATIVE ETP FLOWS1

2015 YTD equity flows: $122.6bn

CUMULATIVE EQUITY ETP FLOWS1 _{CUMULATIVE FIXED INCOME ETP FLOWS}1

2015 YTD fixed income flows: $52.6bn

262.6 236.1 329.6 181.6 J F M A M J J A S O N D 2013 2012 2012 2013 2014 2015 170.7 248.1 242.1 122.6 J F M A M J J A S O N D 70.0 27.1 84.9 52.6 J F M A M J J A S O N D 2015 2014 2013 2012 2015 YTD flows $181.6bn 2015 2014

(US$bn) YTD 2015 YTD 2014 Annual 2014

Equity Developed Markets Equity 144.2 103.4 243.9

Emerging Markets Equity (21.6) 6.6 (1.8)

Total 122.6 110.0 242.1

Fixed Income Government 9.4 11.3 19.5

Investment Grade Corporate 14.8 11.0 22.4

High Yield Corporate 5.9 1.4 3.8

Others 22.4 19.7 39.1

Total 52.6 43.3 84.9

Commodities & others Total 6.5 2.4 2.6

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Flows By Listing Region

ASSET GROWTH RATES AND # OF ETPs1

LISTING REGION VIEW1

(# ETPs)

Highlights (US$):

1

 U.S.-listed funds led July flows with $22.6bn including a five-month high for fixed income

 Europe-listed ETP flows rebounded to $7.9bn, the highest level since February, following a slowdown in Q2

 Canada-listed ETPs gathered $0.4bn to extend their streak of consecutive inflows to 18 months

 Asia Pacific-listed flows of $5.4bn were the highest since December, despite a pullback during the second half of the month for Japan and China equity exposures

MONTH-TO-DATE FLOWS BY LISTING REGION1

$2,146 $508 $66 $6 $234 0 50 100 150 (30%) (20%) (10%) 0% 10% 20% 30% Y ear-to-date grow th in # of ETPs

2015 year-to-date asset growth Latin America Canada U.S. Europe Asia Pacific Bubble size = Assets ($bn)

(US$bn) _FlowsMTD YTD 2015_Flows Share of YTD _Flows Current_Assets Share of_Assets

US _22.6 _119.4 _65.7% _2,145.5 _71.9%

Europe _7.9 _48.7 _26.8% _507.8 _17.0%

Canada _0.4 _6.9 _3.8% _66.2 _2.2%

Asia Pacific _5.4 _7.5 _4.1% _233.9 _7.8%

Latin America & Iberia _0.0 _(1.0) _(0.6%) _6.0 _0.2%

Middle East and Africa _{Not available} _{Not available} _NA _24.8 _0.8%

Global ETP Total 36.3 181.6 100.0% 2,984.1 100.0%

0.0 5.4 0.4 7.9 22.6 (10) 0 10 20 30

LatAm & Iberia Asia Pacific Canada Europe U.S. Equity Fixed Income

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Global ETP Multi-Year Asset

Growth and Top 10 Providers

[ 7 ] Global ETP Providers Ranked by Assets (US$bn)1

* Providers measured at parent company level.

Global ETP Assets & Number of ETPs by Year1

Commodities & Others

Fixed Income Equity 79 ₁₀₉ ₁₄₆ ₂₁₈ 319 428 598 851 772 1,156 1,483 1,525 1,944 2,396 2,797 2,984 106 219 297 300 357 524 883 1,541 2,220 2,694 3,543 4,311 4,759 5,024 5,431 5,688 0 1,000 2,000 3,000 4,000 5,000 6,000 0 500 1,000 1,500 2,000 2,500 3,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jul-15 #ETPs Total Assets ($bn) iShares 1,100.0 36.9 11.0 57.6 759 64.2 (0.2) Vanguard 501.1 16.8 4.9 48.8 115 54.5 0.8 State Street 448.7 15.0 6.0 (34.8) 239 (32.3) (2.2) Invesco Powershares 103.7 3.5 0.4 0.1 205 2.6 (0.1)

Deutsche Asset & Wealth

Management (db x-trackers) 86.2 2.9 2.2 22.0 306 27.4 0.8

WisdomTree Investments 63.8 2.1 1.3 21.8 147 24.4 0.7

Nomura Group 59.4 2.0 2.9 10.2 66 16.0 0.4

Lyxor / Soc Gen 54.6 1.8 0.9 6.9 238 5.8 0.1

First Trust Portfolios 44.9 1.5 0.8 10.0 116 11.5 0.3

Charles Schwab 35.3 1.2 0.7 7.9 21 8.4 0.2 Other Providers 486.4 16.3 5.1 31.3 3,476 5.1 (0.9) Grand Total 2,984.1 100.0 36.3 181.6 5,688 187.5 0.0 Provider * July 2015 Assets % Market Share July 2015 Flows 2015 YTD Flows # ETPs 2015 YTD Change Assets % Market Share

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ETP Flows by Exposure

(US$bn) MTD Flows YTD Flows Current Assets

Equity US 14.9 1.5 1,316.6

Broad Developed Markets 4.7 47.8 299.9

Europe 7.7 57.2 264.3 Asia-Pacific 6.7 38.7 233.7 Canada (0.4) (1.0) 27.1 Developed Equity 33.5 144.2 2,141.6 Single Country (2.9) (18.4) 131.2 Broad (2.7) (3.2) 104.7 Regional (0.1) 0.0 5.8

Emerging Markets Equity (5.7) (21.6) 241.7

Equity Total

_27.8

_122.6

_2,383.3

Fixed Income Investment Grade Corp 1.6 14.8 110.2

Broad 1.0 5.9 49.7

U.S. Government 0.6 7.5 71.1

HY Corp 3.6 5.1 49.7

Sovereign 1.0 4.3 45.8

Municipal 0.2 2.3 17.4

Other Fixed Income 1.6 12.6 125.1

Fixed Income Total 9.6 52.6 468.8

Commodities Gold (2.3) (1.7) 54.1

Energy 1.9 7.3 13.0

Silver 0.0 0.1 8.3

Agriculture (0.1) 0.0 3.7

Other Precious Metals 0.0 (0.2) 21.5

Other Commodities (0.5) (0.6) 13.1 Commodities Total (0.9) 5.0 113.7 Asset Allocation 0.1 0.8 6.9 Alternatives (0.4) 0.4 6.3 Currency 0.0 0.3 5.1 Grand Total 36.3 181.6 2,984.1

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United States ETPs

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US ETP Multi-Year Asset

Growth and Top 10 Providers

US ETP Assets & Number of ETPs by Year1

US ETP Providers Ranked by Assets (US$bn)1

* Providers measured at parent company level. 71 88 106 157 237 314 433 621 542 794 1,012 1,062 1,350 1,701 2,009 2,146 95 118 130 134 169 221 381 673 844 925 1,099 1,370 1,445 1,536 1,661 1,777 0 500 1,000 1,500 2,000 0 500 1,000 1,500 2,000 2,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jul-15 # of ETPs Assets ($bn) Provider * July 2015 Assets % Market Share July 2015 Flows 2015 YTD Flows # ETPs 2015 YTD Change Assets % Market Share iShares 818.4 _38.1 7.2 44.2 333 55.6 _0.2 Vanguard 477.0 _22.2 4.3 45.1 67 50.3 _1.0 State Street 418.7 _19.5 5.4 (39.1) 146 (36.6) _(3.1) Invesco Powershares 99.7 _4.6 0.3 (0.4) 162 2.3 _(0.2) WisdomTree Investments 63.2 _2.9 1.2 21.3 79 23.9 _1.0

First Trust Portfolios 44.6 _2.1 0.8 9.8 95 11.4 _0.4

Charles Schwab 35.3 _1.6 0.7 7.9 21 8.4 _0.3 Guggenheim 30.6 _1.4 (0.5) 2.0 72 1.6 _(0.0) ProShares 25.1 _1.2 0.2 0.4 146 0.0 _(0.1) Van Eck 20.7 _1.0 (0.0) 2.3 61 0.2 _(0.1) Other Providers 112.3 _5.2 3.1 25.9 595 19.4 _0.6 Grand Total 2,145.5 100.0 22.6 119.4 1,777 136.4 0.0

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52.6 12.4 52.2 28.5 J F M A M J J A S O N D 187.4 190.2 244.9 119.4 J F M A M J J A S O N D

Year-to-date Overview

[ 11 ] 2015 2014 2013 2012 2015 Flows: $119.4bn

CUMULATIVE U.S. ETP FLOWS1

2015 Equity Flows: $87.0bn

2012

2013

2014 2015

CUMULATIVE EQUITY ETP FLOWS1

2015 Fixed Income Flows: $28.5n

2015 2014

2013

2012

CUMULATIVE FIXED INCOME ETP FLOWS1 U.S. ETP FLOWS BY EXPOSURE1

(US$bn) YTD 2015 YTD 2014 Annual 2014

Equity Developed Markets 85.9 64.8 187.3

Emerging Markets 1.1 2.2 2.9

Total 87.0 67.0 190.2

Fixed Income Government 3.8 5.6 10.6

High Yield Corporate 1.4 (0.6) 2.4

Investment Grade Corporate 7.1 4.8 9.2

Others 16.2 13.6 30.0

Total 28.5 23.5 52.2

Commodities & Others Total 3.9 1.7 2.6

Grand Total 119.4 92.2 244.9 122.7 204.3 190.2 87.0 J F M A M J J A S O N D

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U.S. ETP Flows by Exposure

(US$bn) MTD Flows YTD Flows Current Assets

Equity US 13.5 0.1 1,230.4

Europe 2.7 31.3 85.7 Asia-Pacific 0.2 11.0 58.4 Canada (0.2) (0.3) 2.2 Developed Equity 20.2 85.9 1,622.0 Broad (2.5) (2.5) 90.2 Single Country (1.3) 3.9 39.8 Regional (0.1) (0.2) 2.3

Emerging Markets Equity (3.9) 1.1 132.3

Equity Total 16.3 87.0 1,754.3

Fixed Income Investment Grade Corp 0.9 7.1 68.7

HY Corp 0.8 1.4 36.5

Broad 0.5 6.3 63.8

Sovereign 0.0 (0.4) 2.5

Energy 1.4 4.8 7.6

Silver 0.0 0.0 5.5

Agriculture (0.0) (0.0) 1.6

Other Commodities (0.2) (0.9) 7.1

Other Precious Metals (0.0) (0.2) 1.1

Commodities Total (0.4) 2.7 54.0

Alternatives (0.3) 0.1 5.2

Asset Allocation 0.1 0.7 6.1

Currency 0.0 0.3 4.2

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Europe ETPs

ONLY FOR ACCREDITED INVESTORS IN CANADA QUALIFIED INVESTORS IN SWITZERLAND, AND PROFESSIONAL INVESTORS IN OTHER REGIONS

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Europe ETP Multi-Year Asset

Growth and Top 10 Providers

Europe ETP Assets & Number of ETPs by Year1

Europe ETP Providers Ranked by Assets (US$bn)1

20 35 56 92 133 150 243 315 299 367 414 458 508 6 71 118 104 115 167 305 503 854 1,108 1,593 1,893 2,105 2,167 2,257 2,320 0 500 1,000 1,500 2,000 2,500 0 100 200 300 400 500 600 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jul-15 # of ETPs Assets ($bn) iShares 230.8 45.5 4.1 18.4 273 18.2 (1.0)

Deutsche Asset & Wealth

Management (db x-trackers) 65.0 12.8 1.1 7.4 238 12.3 1.3

Lyxor / Soc Gen 54.5 10.7 0.9 7.1 233 6.2 0.1

UBS 28.4 5.6 0.3 4.7 313 5.1 0.5 Amundi 21.0 4.1 0.4 2.0 103 2.2 (0.0) Source Holdings 19.0 3.7 0.7 2.0 84 1.8 (0.1) Vanguard 18.0 3.5 0.5 2.4 13 2.7 0.2 State Street 13.4 2.6 0.0 2.3 75 2.2 0.2 ETF Securities 12.5 2.5 (0.6) (0.1) 329 (1.8) (0.6) Commerzbank 7.8 1.5 0.0 1.4 272 1.2 0.1 Other Providers 37.5 7.4 0.5 1.2 387 0.4 (0.8) Grand Total 507.8 100.0 7.9 48.7 2,320 50.5 0.0 Provider * July 2015 Assets % Market Share July 2015 Flows 2015 YTD Flows # ETPs 2015 YTD Change Assets % Market Share

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Europe ETP Multi-Year Flows

[ 15 ] European ETP Industry Cumulative Flows by Year1

2015 YTD Flows: $48.7bn

2015 YTD Equity Flows: $28.5bn

Europe Listed Equity ETP Cumulative Flows1

9.7 11.3 27.1 19.7 J F M A M J J A S O N D 32.7 19.5 61.8 48.7 J F M A M J J A S O N D 13.9 20.9 35.0 28.5 J F M A M J J A S O N D

Europe Listed Fixed Income ETP Cumulative Flows1

2015 YTD Fixed Income Flows: $19.7bn

2015 2013 2012 2014 2015 2013 2012 2014 2015 2013 2012 2014

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European ETP Flows by Exposure

Equity Europe 4.8 25.3 176.6

U.S. 1.2 (0.7) 73.4

Asia-Pacific 0.4 2.9 30.3 Canada 0.0 0.0 1.0 Developed Equity 6.9 29.9 327.8 Broad (0.2) (0.7) 13.6 Single Country (0.4) (0.9) 11.4 Regional 0.0 0.3 3.4

Equity Total 6.4 28.5 356.3

Fixed Income Sovereign 0.8 4.0 36.3

Investment Grade Corp 0.8 6.8 33.5

HY Corp 0.2 4.2 10.3

Broad Aggregate 0.0 0.4 3.2

Energy 0.2 1.3 3.7

Silver 0.0 0.1 2.6

Agriculture (0.1) 0.0 2.1

Other Precious Metals 0.0 0.0 2.0

Other Commodities (0.3) 0.4 6.0 Commodities Total (0.9) 0.8 35.3 Asset Allocation 0.0 0.0 0.4 Alternatives 0.0 (0.2) 0.6 Currency 0.0 (0.1) 0.4 Grand Total 7.9 48.7 507.8

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Asia Pacific ETPs

ONLY FOR ACCREDITED INVESTORS IN CANADA QUALIFIED INVESTORS IN SWITZERLAND, AND PROFESSIONAL INVESTORS IN OTHER REGIONS

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Asia Pacific ETP Multi-Year

Asset Growth and Top 10

Providers

Asia Pacific ETP Assets & Number of ETPs by Year1

Asia Pacific ETP Providers Ranked by Assets (US$bn)1

10 25 ₃₄ ₃₉ 42 ₅₃ 61 52 64 87 93 137 169 202 234 12 29 38 42 45 62 87 173 217 312 432 542 632 742 792 0 200 400 600 800 0 50 100 150 200 250 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jul-15 # of ETPs Assets ($bn) Nomura Group 59.1 25.3 2.9 9.9 62 15.0 3.4

Nikko Asset Management 26.3 11.2 1.8 6.1 22 8.0 2.1

Daiwa Securities Group 23.5 10.0 0.7 2.5 30 4.7 0.6

State Street 16.7 7.1 0.6 2.1 18 2.1 (0.1) HSBC 13.4 5.7 0.7 5.7 6 4.9 1.5 China AMC 10.5 4.5 (2.9) (5.5) 13 (1.1) (1.3) iShares 10.4 4.4 (0.1) (4.7) 29 (4.4) (3.0) Mitsubishi Group 10.3 4.4 0.6 2.6 14 3.3 0.9 Samsung Group 7.7 3.3 0.2 (1.7) 40 (2.1) (1.6)

Yuanta Financial Holdings 6.0 2.6 (0.5) 2.5 16 2.2 0.7

Other Providers 49.9 21.4 1.5 (11.9) 542 0.2 (3.2) Grand Total 233.9 100.0 5.4 7.5 792 32.8 0.0 Provider * July 2015 Assets % Market Share July 2015 Flows 2015 YTD Flows # ETPs 2015 YTD Change Assets % Market Share

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Asia Pacific ETP Flows by Exposure

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Equity Asia-Pacific 6.2 24.7 144.4

U.S. 0.0 0.1 0.8

Europe 0.0 0.0 0.1

Developed Equity 6.2 25.1 146.1

Single Country (1.2) (20.5) 72.1

Broad 0.0 0.0 0.1

Regional 0.0 0.0 0.1

Fixed Income Sovereign 0.1 0.3 4.4

HY Corp 0.0 0.0 0.1

Inv Grade Corp 0.0 0.0 0.1

Commodities Gold 0.0 0.2 2.1

Energy 0.3 1.0 1.3

Silver 0.0 0.0 0.1

Agriculture 0.0 0.0 0.0 Other Commodities 0.0 0.0 0.0 Commodities Total 0.3 1.3 3.6 Asset Allocation 0.0 0.0 0.1 Alternatives 0.0 0.3 0.3 Currency 0.0 0.1 0.4 Grand Total 5.4 7.5 233.9

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Canada ETP Multi-Year Asset

Growth and Top 10 Providers

[ 21 ] Canada ETP Assets & Number of ETPs by Year1

Canada ETP Providers Ranked by Assets (US$bn)1

* Providers measured at parent company level

3 3 6 7 11 13 18 16 29 38 42 56 60 67 66 14 15 16 16 20 25 45 76 109 157 227 272 291 348 373 0 100 200 300 400 0 25 50 75 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jul-15 # of ETPs Assets ($bn) Provider * July 2015 Assets % Market Share July 2015 Flows 2015 YTD Flows # ETPs 2015 YTD Change Assets % Market Share iShares 35.3 53.3 (0.1) 0.6 101 (3.8) (5.5) BMO 17.6 26.6 0.1 3.0 62 1.4 2.2 Vanguard 4.2 6.3 0.1 1.3 21 1.0 1.5

Horizon (Mirae Asset) 3.9 5.9 0.1 0.5 70 0.0 0.0

PowerShares 2.1 3.2 0.1 0.4 22 0.2 0.3

First Asset Capital 1.3 2.0 0.0 0.3 40 0.3 0.5

RBC 1.1 1.7 0.0 0.5 21 0.5 0.7

Purpose Investments 0.6 0.9 0.0 0.3 13 0.2 0.3

First Trust Portfolios 0.2 0.3 0.0 0.1 16 0.0 0.1

Auspice 0.0 0.0 0.0 0.0 1 N/M N/M

Questrade 0.0 0.0 0.0 0.0 6 N/M N/M

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Canada ETP Flows by Exposure

Equity Canada (0.2) (0.7) 23.9

U.S. 0.2 1.9 11.4

Europe 0.0 0.6 0.8 Asia-Pacific 0.0 0.0 0.1 Developed Equity 0.2 3.3 43.0 Broad 0.0 0.1 0.7 Single Country 0.0 0.1 0.3 Regional 0.0 0.0 0.1

Emerging Markets Equity 0.0 0.2 1.1

Fixed Income Inv Grade Corporate (0.1) 0.8 7.9

HY Corp 0.0 0.4 2.8

Sovereign 0.1 0.4 2.6

Commodities Gold 0.0 0.2 2.1

Energy 0.3 1.0 1.3

Silver 0.0 0.0 0.1

Agriculture 0.0 0.0 0.0 Other Commodities 0.0 0.0 0.0 Commodities Total 0.0 0.2 0.7 Asset Allocation 0.0 0.1 0.4 Alternatives 0.0 0.1 0.1 Currency 0.0 0.0 0.1 Grand Total 0.4 6.9 66.2

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Latin America ETPs

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Latin America ETP Multi-Year

Asset Growth, Top Providers

and Flows by Exposure

Latin America ETP Assets & Number of ETPs by Year1

Latin America ETP Providers Ranked by Assets (US$bn)1

Equity

Developed Markets US Equity (3) 56 99 3

Emerging Markets Regional EM - (1) - 1 Mexico (41) (1,185) 3,836 15 Brazil 35 167 1,088 16 Columbia (1) (100) 703 2 China (10) (26) 40 1 Chile (10) 25 51 2 EM Equity Total (27) (1,121) 5,719 37 Equity Total (30) (1,065) 5,818 40 Fixed

Income Fixed Income & Others 4 40 191 8

Exposure (US$mn)1

July 2015 Flows

2015 YTD

Flows Assets # ETPs

Latin America ETP Flows by Exposure

0.1

0.4

0.4 _1.3

2.7

6.3

5.5

9.8

10.1

10.3

12.2

11.0

7.8

6.0

1

2 ₂

2

6

10

17

26

31

35

38

46

48

0 20 40 60 0 5 10 15 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Jul-15 # ETPs Assets ($bn) iShares _5.2 _86.7 _0.0 _(0.9) ₂₃ _(0.8) _(0.7) Itau Unibanco _0.5 _8.3 _0.0 _0.0 ₈ _0.0 _0.6 BBVA _0.2 _3.3 _0.0 _(0.1) ₇ _0.0 _0.7 Actinver _0.1 _1.7 _0.0 _(0.1) ₅ _(0.1) _(1.0)

Horizon (Mirae Asset) _0.0 _0.0 _0.0 _0.0 ₂ _0.0 _0.4

IM Trust _0.0 _0.0 _0.0 _0.0 ₁ _0.0 _0.0

Banco do Brasil _0.0 _0.0 _0.0 _0.0 ₁ _0.0 _0.0

Caixa Economica Federal _0.0 _0.0 _0.0 _0.0 ₁ _0.0 _0.0

Grand Total 6.0 100.0 0.0 (1.0) 48 (0.9) 0.0 Provider * July 2015 Assets % Market Share July 2015 Flows 2015 YTD Flows # ETPs 2015 YTD Change Assets % Market Share

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Endnotes

ABOUT BLACKROCK

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2015, BlackRock’s AUM was $4.721 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® ETF’s (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, , as of June 30, 2015, the firm had approximately 12,400 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.

[ 25 ] The ETP (or exchange traded product) category encompasses any portfolio exposure security that trades intra-day on an exchange. The data for this report are captured from a number of sources by BlackRock including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, Wind, and the Bank of Israel. All amounts are reported in US dollars. Flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. For products with cross-listings, we attribute net flows and assets to the primary listings. For Middle East and Africa, net flows data is not available. Assets are derived using shares outstanding and prices at the end of each month (or the closest date available). Where price is not available, we use an approximation. For ETPs listed in Israel, product level detail is not available. Product level information is aggregated by provider, asset class, exposure, region listed and replication method to produce the various analyses in the report. 1. Data is as of July 30, 2015 for Europe and July 31, 2015 for the US, Canada, Latin America, Israel, and some Asia ETPs. Some Asia ETP data is as of

June 30, 2015. Global ETP flows and assets are sourced using shares outstanding and net asset values from Bloomberg for the US, Canada, Europe, Latin America and some ETPs in Asia. Middle East ETP assets are sourced from the Bank of Israel. ETP flows and assets in China are sourced from Wind. Inflows for years prior to 2010 are sourced from Strategic Insights Simfund. Asset classifications are assigned by the BlackRock based on product definitions from provider websites and product prospectuses. Other static product information is obtained from provider websites, product prospectuses, provider press releases, and provider surveys. Market returns are sourced from Bloomberg.

2. Source: Bloomberg SHSZ300:IND and HSI:IND ($US)

Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

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REGULATORY INFORMATION

BlackRock Advisors (UK) Limited is authorised and regulated by the Financial Conduct Authority ('FCA'), having its registered office at 12 Throgmorton Avenue, London, EC2N 2DL, England, Tel +44 (0)20 7743 3000.

This document has been provided by BlackRock in a private and confidential manner to professional and or institutional investors (as such term is defined according to applicable regulations in the relevant jurisdiction) only upon express request.

This document is solely for informational and educational purposes only and represents an assessment of the market environment at a specific time and is not intended to be relied upon by the reader as research, a forecast of future events or a guarantee of future results.

This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors.

The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied, is made by BlackRock or by any person as to its accuracy or completeness and it should not be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change.

This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction.

This document has not been prepared, reviewed or distributed by any broker-dealer affiliate of BlackRock and should not be deemed a product of any such affiliate.

BlackRock has not performed any due diligence on products which are not managed by BlackRock and accordingly does not make any remark on their suitability for investment purposes. Past performance is not a guide to future performance . Income is not fixed and may fluctuate. Exposure to foreign currencies can be affected by exchange rate movements.

This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock Advisors (UK) or its affiliates (together, ‘BlackRock’).

FOR RESIDENTS IN THE UNITED STATES

This publication does not provide financial, investment or tax advice or information relating to the securities of any particular fund or other issuer. The information and opinions included in this publication are based on publicly available information, are subject to change and should not be relied upon for any purpose other than general information and education. This publication has been prepared without regard to the individual financial circumstances and objectives of those who receive it and the types of securities discussed in this publication may not be suitable for all investors. The information included in this document has been taken from trade and other sources considered to be reliable. This document is published in good faith but no representation or warranty, express or implied is made by BlackRock or by any person as to its accuracy or completeness and it should bot be relied on as such. BlackRock or any of its directors, officers, employees or agents shall have no liability for any loss or damage arising out of the use or reliance on the material provided including without limitation, any loss of profit or any other damage, direct or consequential. Any opinions expressed in this document reflect our analysis at this date and are subject to change. This is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any strategy in any jurisdiction.

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NOTICE TO RESIDENTS IN AUSTRALIA:

Issued in Australia by BlackRock Investment Management (Australia) Limited ABN 13 006 165 975, AFSL 230523 ("BlackRock Australia") to institutional investors only. iShares® exchange traded funds (“ETFs”) that are made available in Australia are issued by BlackRock Australia, iShares, Inc. ARBN 125 632 279 and iShares Trust ARBN 125 632 411. BlackRock Australia is the local agent and intermediary for iShares ETFs that are issued by iShares, Inc. and iShares Trust. BlackRock Australia is a wholly-owned subsidiary of BlackRock, Inc. (collectively “BlackRock”). A Product Disclosure Statement (“PDS”) or prospectus for each iShares ETF that is offered in Australia is available at iShares.com.au. You should read the PDS or prospectus and consider whether an iShares ETF is appropriate for you before deciding to invest. iShares securities trade on ASX at market price (not, net asset value ("NAV")). iShares securities may only be redeemed directly by persons called “Authorised Participants”. This information is general in nature, and has been prepared without taking into account any individual's objectives, financial situation, or needs. You should seek independent professional legal, financial, taxation, and/or other professional advice before making an investment decision regarding the iShares funds.

FOR INVESTORS IN CANADA:

The information and opinions herein are provided for informational purposes only, are subject to change and should not be relied upon as the basis for investment decisions. Past performance is not necessarily indicative of future performance. This document is not and should not be construed as a solicitation or offering of units of any funds or other security in any jurisdiction. No part of this publication may be reproduced in any manner without prior written permission of BlackRock Asset Management Canada Limited and/or its affiliates.

FOR INVESTORS IN HONG KONG:

Some of the funds mentioned herein have not been registered with the Securities and Futures Commission for offering or distribution in Hong Kong. Accordingly, this material may not be circulated or distributed, nor may the funds be offered or sold whether directly or indirectly, to any person in Hong Kong other than to a Professional Investor as defined in the Securities and Futures Ordinance ("SFO") (Cap. 571 of the laws of Hong Kong) and any regulations there under.

NOTICE TO RESIDENTS IN INDIA:

This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to financial intermediaries only upon their request. The funds mentioned herein have not been registered with any authorities in India.

NOTICE TO RESIDENTS IN JAPAN:

This document is solely for educational purposes and does not constitute advertisement of financial services targeted at investors in Japan. This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to Qualified Institutional Investors (as defined in the Financial Instruments and Exchange Law of Japan) only upon their request.

Disclaimer

(continued)

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Disclaimer

(continued)

FOR INSTITUTIONAL AND PROFESSIONAL INVESTORS ONLY IN LATIN AMERICA:

In Latin America, for Institutional and Professional Investors only. This material is solely for educational purposes only and does not constitute an offer or a solicitation to sell or a solicitation of an offer to buy any shares of any securities (nor shall any such securities be offered or sold to any person) in any jurisdiction within Latin America in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. It is possible that all or some of the funds mentioned or inferred to in this material have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico and Peru or any other securities regulator in any Latin American country, and thus, might not be publicly offered, purchased or sold within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America.

NOTICE TO RESIDENTS IN SINGAPORE:

This document is provided by BlackRock (Singapore) Limited (company registration number: 200010143N) for use with institutional investors only. This document has not been registered as a prospectus with the Monetary Authority of Singapore (MAS). Some of the funds mentioned herein have not been registered with the MAS for distribution in Singapore. Accordingly, this and any other document or material in connection with the offer or sale of the Shares may not be circulated or distributed, nor may the Shares be offered or sold, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 304 of the Securities and Futures Act (SFA) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. First sales of the Shares acquired pursuant to Section 304 of the SFA are subject to the requirements under Section 304A of the SFA.

NOTICE TO RESIDENTS IN SOUTH AFRICA:

BlackRock Investment Management (UK) Limited is registered with the South African Financial Services Board, FSP No. 43288.

FOR QUALIFIED INVESTORS IN SWITZERLAND

This document shall be exclusively made available to, and directed at, qualified investors as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended (CISA).

The iShares ETFs are domiciled in Ireland, Switzerland and Germany.

BlackRock Asset Management Schweiz AG, Bahnhofstrasse 39, CH-8001 Zurich, is the Swiss Representative and JPMorgan Chase Bank, National Association, Columbus, Zurich branch, Dreikönigstrasse 21, 8002 Zurich, the Swiss Paying Agent for the foreign iShares ETF registered in Switzerland. The Prospectus, the Prospectus with integrated fund contract, the Key Investor Information Document, the general and particular conditions, the Articles of Incorporation, the latest and any previous annual and semi-annual reports of the iShares ETF domiciled or registered in Switzerland are available free of charge from BlackRock Asset Management Schweiz AG. Investors should read the fund specific risks in the Key Investor Information Document and the Prospectus.

NOTICE TO RESIDENTS IN THAILAND:

This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Thailand, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Thailand.

NOTICE TO RESIDENTS IN VIETNAM:

This document is intended for information purposes only and does not constitute investment advice or an offer to sell or solicitation of an offer to buy the funds described herein. This document has been provided by BlackRock in a private and confidential manner to institutional investors only upon their request. The funds mentioned herein have not been registered with any authorities in Vietnam, and accordingly, this document may not be circulated or distributed, nor may the shares of these funds be offered or sold whether directly or indirectly, to any person in Vietnam.

© 2015 BlackRock Advisors (UK) Limited. All rights reserved. Registered Company No. 00796793. All rights reserved. Calls may be monitored or recorded. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES, are registered and unregistered trademarks of BlackRock, Inc. or its