iShares Predicts “Incredibly Bright Future” for ETFs in the U.S.

  iShares Predicts “Incredibly Bright Future” for ETFs in the U.S.

   U.S. ETF Assets Could More Than Double in Next Five Years To Exceed $3.5
                               Trillion by 2017

Growth Fueled by Existing and New Investors Segments, Greater Usage of ETFs as
                     Core Exposures and Fixed Income ETFs

Business Wire

SAN FRANCISCO -- June 14, 2013

The U.S. market for Exchange Traded Funds (ETFs) will likely grow to more than
$3.5 trillion in assets over the next five years, compared with $1.5
trillion^1 today, according to a new industry projection announced today by
iShares, the ETF business of BlackRock, Inc. (NYSE: BLK). Growth in the U.S.
is expected to be primarily driven by increased ETF usage by existing and new
investor segments, ETFs as core exposures and a widening investor base for
fixed income ETFs.

Mark Wiedman, the Global Head of iShares, commented: “In the last decade, ETFs
have evolved from obscurity to a $2+ trillion industry^2, embraced by retail
and institutional investors alike. But these are still early days in ETF
adoption. Even in the most mature market, the U.S., there is an incredibly
bright future.”

According to iShares, growth in the U.S. ETF market will be primarily driven
by six key trends:

1. Continued growth of the advised market: The continued growth of fee-based
advisory and greater ETF adoption by financial advisors of all shapes and
sizes is expected to continue to drive ETF growth in the retail market.
Advisors blending active and index products together in a portfolio, coupled
with end investors learning more about the benefits of ETFs and requesting
these products from their advisors, are seen as being contributing factors.

2. Self-directed as the fastest growing portion of the market: With an
addressable market of more than $4.0 trillion and a projected growth rate of
9%,^3 self-directed investors should have a significant impact on ETF adoption
and growth. The expansion of commission-free ETF platforms and marketing
directly to the self-directed investor will likely also continue to factor in
this growth trajectory.

3. Increasingly more institutional investors using ETFs in new ways: Existing
and new institutional clients, particularly asset allocators, are increasing
their investments in ETFs. Nine out of 10 institutional ETF users expect their
level of ETF investments to remain stable or increase over the coming year,
and half plan to increase their allocations by 2014.^4 Institutions are also
discovering how to use ETFs in innovative ways, leveraging their access and
liquidity to meet their investment needs.

4. Retail and institutional clients adding ETFs for core exposures:  To date,
ETFs have largely been used to take a market position, but more and more
buy-and-hold investors are using both equity and fixed income ETFs for core
exposures. While this trend is at the beginning of the adoption curve, from
2011 to 2012 assets in core exposures grew nearly 30%, and 2013 is off to a
strong start in flows^5.

5. The continued revolution of fixed income products: After more than a decade
of continuous growth, fixed income ETFs are just starting to take their place
as an essential fixed income capital market instrument. The U.S. fixed income
market is more than twice the size of the equity market, however, fixed income
ETF penetration is only one tenth of the level of equity ETF penetration.^6 
Changing demographics, the ongoing evolution of the bond markets and greater
awareness of fixed income ETFs from a wider investor audience will all lead to
increased adoption.

6. New products and segments: There is a significant opportunity to expand the
existing ETF market through new ETF products and new client segments. The next
generation of ETFs should deliver innovative exposures, such as low volatility
and term-maturity, as well as solutions-based products. New client segments
such as banks and offshore investors are just starting to discover ETFs but
will drive the next phase of growth.

Wiedman continued, “Our industry has so much exciting work yet to do with
clients – in placing ETFs at the core of portfolios, deploying ETFs in
undiscovered ways, and expanding ETF technology into whole new swathes of the
capital markets.”

About BlackRock

BlackRock is a leader in investment management, risk management and advisory
services for institutional and retail clients worldwide. At March 31, 2013,
BlackRock’s AUM was $3.936 trillion. BlackRock helps clients meet their goals
and overcome challenges with a range of products that include separate
accounts, mutual funds, iShares^®  (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
March 31, 2013, the firm has approximately 10,600 employees in 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

About iShares

iShares is a global product leader in exchange traded funds with over 600
funds globally across equities, fixed income and commodities, which trade on
20 exchanges worldwide. The iShares Funds are bought and sold like common
stocks on securities exchanges. The iShares Funds are attractive to many
individual and institutional investors and financial intermediaries because of
their relative low cost, tax efficiency and trading flexibility. Investors can
purchase and sell shares through any brokerage firm, financial advisor, or
online broker, and hold the funds in any type of brokerage account. The
iShares customer base consists of the institutional segment of pension plans
and fund managers, as well as the retail segment of financial advisors and
high net worth individuals.

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 1-800-iShares
(1-800-474-2737) or by visiting Read the prospectus carefully
before investing.

Investing involves risk, including possible loss of principal. Transactions in
shares of the iShares Funds will result in brokerage commissions and will
generate tax consequences. iShares Funds are obliged to distribute portfolio
gains to shareholders. Shares of the iShares Funds may be sold throughout the
day on the exchange through any brokerage account. However, shares may only be
redeemed directly from a Fund by Authorized Participants, in very large
creation/redemption units. Diversification may not protect against market

This material represents an assessment of the market environment at a specific
time and is not intended to be a forecast of future events or a guarantee of
future results. This information should not be relied upon by the reader as
research or investment advice regarding the funds or any security in

The iShares Funds are distributed by BlackRock Investments, LLC (together with
its affiliates, “BlackRock”). 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 the company listed above.

© 2013 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered
and unregistered trademarks of BlackRock. All other marks are those of their
respective owners.


Forward-Looking Statements

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forward-looking statements within the meaning of the Private Securities
Litigation Reform Act, with respect to BlackRock’s future financial or
business performance, strategies or expectations. Forward-looking statements
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“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,”
“achieve,” and similar expressions, or future or conditional verbs such as
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assumptions, risks and uncertainties, which change over time. Forward-looking
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duty to and does not undertake to update forward-looking statements. Actual
results could differ materially from those anticipated in forward-looking
statements and future results could differ materially from historical

^1 Source: BlackRock, May 2013

^2 Source: BlackRock and Bloomberg, January 2013

^3 Source: Cerulli, December 2011 and October 2012

^4 Source: Greenwich Associates, 2013

^5 Source: BlackRock and Bloomberg, May 2013

^6 Source: BlackRock and Bloomberg, December 2012


Diane Henry, 415-670-4567
Christine Hudacko, 415-670-2687
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