ETF Landscape: United Kingdom Industry Review - BlackRock ...

FOR PROFESSIONAL INVESTORS. NOT FOR INVESTORS IN THE US OR CANADA.ETF LandscapeUnited Kingdom Industry ReviewYear End 2010

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockTable of contentsCurrent ETF and ETP landscape in the United KingdomHighlights from 2010 .................................................................................................................................................................. 2Asset growth of ETFs/ETPs listed in the United Kingdom ............................................................................................................. 2Barclays Stockbrokers clients significantly increase investment in ETFs ....................................................................................... 4United Kingdom fund platforms ................................................................................................................................................... 4Top 10 ETFs/ETPs by assets, trading volume and flows ............................................................................................................... 5ETF/ETP providers with listings in the United Kingdom ................................................................................................................ 6Top five ETF/ETP providers by average daily US dollar turnover ................................................................................................... 6Top 25 brokers trading United Kingdom listed ETFs/ETPs ............................................................................................................ 7United Kingdom Distributor Status (UKDS) .................................................................................................................................. 8The new United Kingdom Reporting Funds (UKRF) system ........................................................................................................... 8United Kingdom Retail Distribution Review (RDR) ........................................................................................................................ 9Changes to the United States tax law may affect non- United States resident holders of United States ETFs ................................. 11Comparing ETFs and mutual funds .............................................................................................................................................. 13United Kingdom mutual fund industry .......................................................................................................................................... 13United Kingdom mutual fund flows .............................................................................................................................................. 14United Kingdom institutions reported holding ETFs ...................................................................................................................... 15ETF background .......................................................................................................................................................................... 16ETFs gain foothold in institutional market .................................................................................................................................... 17Investment applications ................................................................................................................................................................ 18Macro asset allocation and index performance ............................................................................................................................ 19Core/satellite applications ......................................................................................................................................................... 20How can ETFs be used and why use ETFs? .................................................................................................................................. 21The ETF toolbox .......................................................................................................................................................................... 24Commodity index comparison ..................................................................................................................................................... 29ETFs/ETPs listed in the United Kingdom, as at year end 2010 ................................................................................................... 35ETFs/ETPs listed in the United Kingdom in 2010 ........................................................................................................................ 58Subscribe to ETF Landscape reports ............................................................................................................................................ 63Global ETF Research and Implementation Strategy TeamDeborah FuhrManaging DirectorGlobal Head of ETF Research and Implementation Strategy+44 20 7668 4276deborah.fuhr@blackrock.comShane KellyVice PresidentGlobal ETF Research and Implementation Strategy+44 20 7668 8426shane.kelly@blackrock.comPublication date: 22 February 2011.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 1

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockETF Landscape – United Kingdom Industry Review is BlackRock’s comprehensive market commentary, which covers ExchangeTraded Funds (ETFs) and Exchange Traded Products (ETPs) listed in the United Kingdom. ETFs are typically open-end index fundsthat provide daily portfolio transparency, are listed and traded on exchanges like stocks on a secondary basis as well as utilising aunique creation and redemption process for primary transactions. ETPs are products that have similarities to ETFs in the way theytrade and settle but they do not use a mutual fund structure. The use of other structures including grantor trusts, partnerships,notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFswhich are funds. This document includes rankings of ETF and ETP providers and ETFs/ETPs listed in the United Kingdom. Thiscommentary should not be regarded as a research report 1 .Current ETF and ETP landscape in the United KingdomHighlights from 2010:Assets increased 49.0% in 2010 in ETFs/ETPs with their primarylisting in the United Kingdom to US$93.4 Bn, which is more than the5.2% increase in the FTSE 100 Index in US dollar terms over thesame period.The number of ETFs/ETPs increased 77.5% in 2010, from 293primary listings in 2009 to 520 at year end 2010.11 new providers listed their first ETF/ETP in the UnitedKingdom in 2010.The average daily reported trading volume increased 24% inUS dollar terms in 2010 for all United Kingdom listed ETFs/ETPs toUS$550.4 Mn, compared to US$445.3 Mn at the end of 2009.Most ETF trades are not required to be reported in Europe as ETFsare not covered by the European Union Directive on Markets inFinancial Instruments (MiFID).The first ETF was listed on the London Stock Exchange’s MainMarket in April 2000, this was followed by steady growth in thenumber of funds listed but it was not until the abolition of stampduty on ETFs incorporated overseas in February 2007, that thisalready flourishing market transformed into a leading Europeancentre for ETFs.Figure 1: Asset growth of ETFs/ETPs listed in the United Kingdom, as at year end 2010Assets US$ Bn100# products1,200806040201,000800600400200002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010# ETFs 2 3 4 5 11 25 42 85 118 144 204# ETF listings 2 5 6 8 14 29 68 158 269 386 672# ETPs - - - - 1 2 32 56 123 149 316# ETP listings - - - - 1 2 32 67 135 226 453Total # ETFs/ETPs 2 3 4 5 12 27 74 141 241 293 520Total # ETF/ETP listings 2 5 6 8 15 31 100 225 404 612 1,125ETF assets (US$ Mn) $213.8 $459.5 $658.2 $2,050.0 $3,140.8 $6,432.5 $14,404.4 $23,189.4 $27,155.9 $47,164.8 $66,713.1ETP assets (US$ Mn) $0.0 $0.0 $0.0 $0.0 $721.3 $1,102.3 $2,084.2 $4,919.8 $6,895.3 $15,507.5 $26,648.4Total (US$ Mn) $213.8 $459.5 $658.2 $2,050.0 $3,862.1 $7,534.8 $16,488.6 $28,109.2 $34,051.2 $62,672.3 $93,361.5Note: # ETFs/ETPs refers to primary listings only.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.1. Certain terms used in this publication may differ from those applied by other industry participants.2 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockAt the end of 2010, the United Kingdom ETF/ETP market has a verylarge and diverse tool box of products available with 764 differentETFs/ETPs listed, providing exposure to equity, fixed income andcommodity indices. Of this, 189 have United Kingdom distributorstatus and 370 with United Kingdom reporting fund status. In totalthere are 1,125 listings from 22 providers across threeexchanges/MTFs (London Stock Exchange, Chi-X and Turquoise).While there were 520 ETFs/ETPs with their primary listing in theUnited Kingdom with assets of US$93.4 Bn. The majority of ETFsregistered for sale in the United Kingdom are regulated collectiveinvestment schemes and as such fall under the definition ofpackaged investment products.There were 19 ETFs/ETPs listed in the United Kingdom with assetsgreater than US$1 Bn, 112 ETFs/ETPs with assets greater thanUS$100 Mn, while 237 ETFs/ETPs had assets less thanUS$10 Mn at year end 2010.The asset weighted average Total Expense Ratio (TER) for ETFs/ETPs with their primary listing in the United Kingdom is 52 bps.In the United Kingdom, the net sales of mutual funds totalledUS$62.3 Bn in 2010, with assets reaching US$950.5 Bn in 2,598funds at the end of 2010 according to data from Strategic Insight,compared to US$17.6 Bn net inflows in 2010 to ETFs/ETPs withtheir primary listing in the United Kingdom.Many United Kingdom based investors prefer ETFs which areregistered for sale in the United Kingdom and have United Kingdomdistributor status or United Kingdom reporting fund status for taxefficiency. Out of the 794 unique ETF/ETP listings in the UnitedKingdom, 189 have United Kingdom distributor status (UKDS), while370 have United Kingdom reporting fund status (UKRF).In the United Kingdom, as is the trend globally, all types ofinstitutional and retail investors including advisers are increasinglyembracing ETFs as a tool which should be considered and usedwhen implementing asset allocation. An added impetus causingadvisers in the United Kingdom to embrace ETFs is the FinancialService Authority’s (FSA’s) Retail Distribution Review (RDR).The RDR outlines the changes the FSA plans to make for the retailinvestment market to establish a new level of consumer trust andconfidence by distinguishing between independent advice and salesadvice to create better clarity for consumers. Financial firms willneed to implement changes prior to the 31 December 2012deadline for industry compliance (for further details on the RDRrefer to page 9).The structure of ETFs does not support commission remuneration,which is one of the reasons for slow adoption to date amongadvisers in the United Kingdom. In the United States, fee-basedadvisers (paid by the consumer) have embraced the use of ETFs to agreater degree than commission-based advisers (paid by theproduct provider). In the United Kingdom the use of ETFs amongadvisers is very limited as they are typically tied and multi-tied(meaning that they can only advise on products from one or alimited range of product providers). ETFs are not currently includedin the tied or multi-tied product sets.ETFs are RDR ready and fit into the new adviser charging modelproposed by the FSA. As such, we have seen an increasing numberof requests for information on ETFs which are both listed andregistered for sale in the United Kingdom as well as having UnitedKingdom tax status which can make them more efficient for UnitedKingdom domiciled investors 1 . The good news is that the LondonStock Exchange (LSE) was one of the first exchanges to list ETFs inEurope over 10 years ago.ETFs can be eligible investments for Individual Savings Accounts(ISAs), Self Invested Personal Pensions (SIPPs), Child Trust Funds(CTFs) and offshore bonds.The use of ETFs within assembled products such as Fund ofFunds/Fund of ETFs is growing as product providers see value inusing ETFs as low cost beta building blocks to deliver assetallocation. A popular approach has been to create a series of fundof funds with ranging risk/return objectives, i.e. conservative,balanced, growth and dynamic portfolios by strategically allocatingamong asset classes allowing their clients to switch betweenproducts as their broad market views and attitudes to risk change.Creating portfolios built around an asset allocation framework,without specific active investment decisions (security selectionand/or market timing) has been a topic of some debate for manyyears. Most notably, the study published in 1986 entitled“Determinants of Portfolio Performance” by Brinson, Hood andBeebower concluded that asset allocation is the primarydeterminant of a portfolio’s return variability, with security selectionand market-timing playing minor roles.In 2008 a total of 120 institutional investors in the United Kingdomreported using one or more ETFs. Over the 11 years to 2008, thenumber of institutional users in the United Kingdom has increased1,233.3%. This represents a CAGR of 26.6%.ETFs have been cited by the FSA as one of the packaged productsthat advisers, which consider themselves as independent, shouldbecome educated on which will enable them to consider ETFs intheir reviews prior to recommending products to their clients. ETFsare noted as an investment tool which can be suitable for retailinvestment products as they can be a cost efficient and transparentway to access the market.1. BlackRock does not and cannot provide tax advice. Tax treatment of ETFs including rates and reliefs may change and will depend upon an investor’s own tax circumstances.BlackRock recommends that all clients seek specialist tax advice from their own tax advisers.3 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockBarclays Stockbrokers clients significantlyincrease investment in ETFsNew data from Barclays Stockbrokers, the United Kingdom’s largestonline execution-only stockbroker, reveals strong growth in demandfor ETFs by United Kingdom retail investors.The analysis also found: The number of client accounts holding ETFs has increased by137% since 2008, and by 42% since 2009. Volume of assets traded increased by 36%. The average client trade size has increased by 28%.Figure 2: Top 10 ETF/ETP purchases by Barclays Stockbrokersclients for 2010ETF/ETP name% of purchasesiShares FTSE 100 16%ETFS FTSE 100 Super Short Strategy (2x) 6%iShares S&P 500 4%iShares MSCI Emerging Markets 4%iShares MSCI Brazil 4%iShares FTSE China 25 3%iShares FTSE UK Dividend Plus 3%iShares FTSE BRIC 50 3%db x-trackers FTSE 100 Short 3%iShares Markit iBoxx £ Corporate Bond 2%Source: Barclays Stockbrokers February 2011 press release. Barclays Stockbrokersis the United Kingdom’s largest execution-only retail broker, offering retail investorsa wide range of products including shares, funds, ETFs, CFDs, Structured Products,Financial Spread Trading, covered warrants, trading BARXdirect: FX, and investmentaccounts like PensionMaster (SIPP) and ISAs.Large online brokers and fund platforms in the United States havebeen embracing ETFs as a competitive marketing tool in the pastyear. Charles Schwab and Vanguard offer commission free tradingon their own ETFs, while Fidelity has partnered with iShares to offercommission free trading on 30 specific iShares, andTD Ameritrade offers commission free trading on more than 100ETFs. Based on the FSA’s review of platforms, these types of trendsare also likely to develop in the United Kingdom and Europe.United Kingdom fund platformsPlatforms are internet-based services used by intermediaries (andsometimes clients) to view and administer investments. They tendto offer a range of tools which allow advisers to see and analyse aclient’s overall portfolio, and to choose products for them. As wellas arranging transactions, platforms generally arrange custody forclients’ assets.The term ‘platform’ can be used to cover both wraps and fundsupermarkets. Wraps and fund supermarkets are similar, but whilefund supermarkets tend to offer wide ranges of unit trusts and OpenEnded Investment Companies (OEICs), wraps often offer greateraccess to other products too. Wraps also tend to support advisersthat want to agree their own remuneration with their clients, insteadof receiving commission.Source: FSA factsheet, Platforms: using fund supermarkets and wraps, FinancialServices Authority.According to recent data from Ascentric, one of the wrap platformsin the United Kingdom, financial advisers and discretionary fundmanagers are becoming increasingly interested in using ETFs inclient portfolios, and regulatory changes like the RDR areaccelerating interest. This seems to be motivated by both a desireto adopt passive models and also to reduce the cost of investmentmanagement. Ascentric have seen a dramatic increase in assets ontheir platform in 2010 and ETFs now account for 26% of theirdealing volume. Ascentric expect this trend to continue as advisersbecome more comfortable with ETFs and how they work.Figure 3: Top United Kingdom platforms: assets underadministration, as at end 2010PlatformSkandiaFidelity (FundsNetwork)CofundsHL VantageTransactNextAssets (GBP Mn)Dec-2010£39,233a£35,097a£29,897a£19,896a£9,100a£8,769aStandard Life £5,000*Raymond James £2,600*AscentricNucleus£2,530a£2,252a7IM £2,000*AXA Elevate £1,000*James Hay (Santander) £600*Novia Financial £500*Aviva £250*Parmenion £200*Avalon Investment Services £150*Funds DirectSEIN/AN/A*Q3 2010.Source: BlackRock, Platform and provider websites and press releases.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 4

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 4: Top 10 ETFs/ETPs listed in the United Kingdom by assets, as at year end 2010NameTickerAssets(US$ Mn)ADV(US$ Mn)2010 net flows(US$ Mn)iShares S&P 500 IUSA LN $7,905.8 $10.3 $310.6iShares MSCI Emerging Markets IEEM LN $6,821.7 $11.8 $2,687.3ETFS Physical Gold PHAU LN $5,962.5 $40.2 $1,242.0iShares FTSE 100 ISF LN $5,961.7 $38.7 -$225.4GBS Bullion Securities GBS LN $5,566.8 $17.8 $9.6iShares MSCI World IWRD LN $3,455.2 $4.0 $220.5iShares MSCI AC Far East ex-Japan IFFF LN $2,264.4 $3.4 $156.1iShares MSCI Japan IJPN LN $2,081.8 $8.7 $178.7iShares Markit iBoxx £ Corporate Bond SLXX LN $1,789.3 $11.0 $99.9iShares MSCI North America INAA LN $1,777.8 $1.5 $565.2Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.Figure 5: Top 10 ETFs/ETPs listed in the United Kingdom by average daily US dollar trading volume, as at year end 2010NameTickerADV(US$ Mn)Assets(US$ Mn)2010 net flows(US$ Mn)ETFS Physical Gold PHAU LN $40.2 $5,962.5 $1,242.0iShares FTSE 100 ISF LN $38.7 $5,961.7 -$225.4iShares MSCI Emerging Markets IDEM LN $25.7 $6,821.7 $2,687.3GBS Bullion Securities GBS LN $17.8 $5,566.8 $9.6iShares MSCI Emerging Markets IEEM LN $11.8 $6,821.7 $2,687.3iShares Markit iBoxx £ Corporate Bond SLXX LN $11.0 $1,789.3 $99.9iShares S&P 500 IUSA LN $10.3 $7,905.8 $310.6iShares MSCI Japan IJPN LN $8.7 $2,081.8 $178.7Gold Source P-ETC SGLD LN $8.5 $923.8 $599.7iShares FTSE 250 MIDD LN $8.3 $791.7 $166.1Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.Figure 6: Top 10 ETFs/ETPs listed in the United Kingdom by 2010 net inflows, as at year end 2010NameTicker2010 net flows(US$ Mn)Assets(US$ Mn)ADV(US$ Mn)iShares MSCI Emerging Markets IEEM LN $2,687.3 $6,821.7 $11.8db x-trackers MSCI Emerging Market TRN Index ETF XMEM LN $1,697.0 $6,263.3 $4.1iShares DAX® (DE) EXSE IX $1,528.0 $5,917.7 $1.6Lyxor Euro STOXX 50 MSE IX $1,419.8 $8,278.6 $0.4ETFS Physical Gold PHAU LN $1,242.0 $5,962.5 $40.2db x-trackers DAX ETF XDAX IX $1,137.3 $3,693.1 $0.2db x-trackers - DJ STOXX 600 XSX6 LN $1,056.9 $1,237.7 $0.1iShares JPMorgan $ Emerging Markets Bond Fund SEMB LN $742.9 $1,064.0 $0.7CS ETF (Lux) on MSCI Emerging Markets CM1 LN $670.3 $1,035.5 $0.1iShares Barclays Capital Euro Corporate Bond IEBC LN $619.2 $1,377.3 $0.7Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.5 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 7: ETF/ETP providers with ETFs/ETPs listed in the United Kingdom, as at year end 2010Provider# uniqueETFs/ETPslisted inthe UK# UK primaryETF/ETPlistings# UK totalETF/ETPlistings# uniqueETFs/ETPslisted in theUK withUKDS# uniqueETFs/ETPslisted in theUK withUKRFAssets(US$ Mn) inprimaryETF/ETPlistingsADV(US$ Mn) inall UK listedETFs/ETPsiShares 111 96 196 70 98 $61,395.4 $275.3ETF Securities 208 195 344 19 166 $21,380.3 $174.2Societe Generale 42 42 42 - - $4,039.1 $2.4Source Markets 19 19 19 - 17 $1,936.4 $17.0Lyxor Asset Management 56 25 92 19 - $1,664.3 $10.0db x-trackers / db ETC 121 44 178 65 9 $1,519.4 $45.3HSBC/Hang Seng 12 12 20 - 10 $613.4 $13.3Marshall Wace Asset Management 3 3 3 - 3 $330.2 $0.8UBS AG 69 69 69 - - $250.8 $0.4PowerShares 16 14 16 15 15 $222.9 $1.9Osmosis Investment Management 1 1 2 1 1 $9.2 $0.0State Street Global Advisors 13 - 13 - - - $0.0Credit Suisse Asset Management 45 - 81 - 45 - $5.9XACT Fonder 8 - 8 - - - $2.2RBS 6 - 6 - 6 - $0.1ETFlab Investment 2 - 2 - - - $0.0Commerzbank 7 - 7 - - - $0.4Van Eck Associates Corp 1 - 1 - - - $0.0ProShares 8 - 8 - - - $0.0Vanguard 1 - 1 - - - $0.0Barclays (iPath) 13 - 15 - - - $1.2Merrill Lynch 2 - 2 - - - $0.0Total 764 520 1,125 189 370 $93,361.5 $550.4Note: A single ETF can be listed across multiple exchanges and countries. To avoid double counting we recognise the first listing as the ‘primary listing’. Within the listings on asingle exchange, an ETF can have multiple listings in different currencies, so again, to avoid double counting we count each different ETF once to form our ‘Unique ETFs’ total.United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status (UKRF) are sourced from various ETF providers and HMRC and should be checked with theETF/ETP provider before investing.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.Figure 8: Top five ETF/ETP providers by average daily US dollar turnover, as at year end 2010ProviderADV (US$ Mn)Dec-2010% marketshareiShares $275.3 50.0%ETF Securities $174.2 31.7%db x-trackers / db ETC $45.3 8.2%Source Markets $17.0 3.1%HSBC/Hang Seng $13.3 2.4%Other $25.1 4.6%Total $550.4 100.0%iShares 50%ETF Securities 31.7%db x-trackers / db ETF 8.2%Source Markets 3.1%HSBC/Hang Seng 2.4%Other 4.6%Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 6

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 9: Top 25 brokers trading United Kingdom listed ETFs/ETPs, as at end January 2011Broker# reportedtradesBroker advertisedvolume (US$ Mn)Jan-2011% broker advertisedmarket share% total exchangevolumeWinterflood Securities 4,143 $1,785.6 15.8% 13.4%Susquehanna International 237 $1,248.2 11.0% 9.3%Credit Suisse 281 $1,093.9 9.7% 8.2%Labranche Structured Products 269 $853.7 7.5% 6.4%Morgan Stanley 393 $835.1 7.4% 6.3%Deutsche Bank Securities 764 $797.7 7.0% 6.0%Peel Hunt 2,801 $656.8 5.8% 4.9%Goldman Sachs International 615 $632.6 5.6% 4.7%HSBC Bank 1,696 $582.7 5.1% 4.4%Merrill Lynch 977 $494.7 4.4% 3.7%JPMorgan Chase Bank 214 $427.1 3.8% 3.2%Citigroup Global Markets 343 $410.3 3.6% 3.1%Societe Generale 191 $246.5 2.2% 1.9%CA Cheuvreux 587 $179.7 1.6% 1.4%RBS 282 $179.1 1.6% 1.3%Knight Securities 312 $149.2 1.3% 1.1%UniCredit 77 $101.5 0.9% 0.8%Barclays Capital 37 $101.3 0.9% 0.8%UBS 38 $100.3 0.9% 0.8%Nomura International 326 $74.9 0.7% 0.6%Instinet 38 $71.5 0.6% 0.5%Bluefin Europe 65 $68.5 0.6% 0.5%MF Global 81 $52.7 0.5% 0.4%Macquarie Group 25 $44.2 0.4% 0.3%Newedge Group 1 $22.5 0.2% 0.2%Others (36) 310 $120.1 1.1% 0.9%Total 15,103 $11,330.5 100.0% 84.8%Winterflood Securities 15.8% CA Cheuvreux 1.6%Susquehanna International 11.0% RBS 1.6%Credit Suisse 9.7% Knight Securities 1.3%Labranche Structured Products 7.5% UniCredit 0.9%Morgan Stanley 7.4% Barclays Capital 0.9%Deutsche Bank Securities 7.0% UBS 0.9%Peel Hunt 5.8% Nomura International 0.7%Goldman Sachs International 5.6% Instinet 0.6%HSBC Bank 5.1% Bluefin Europe 0.6%Merrill Lynch 4.4% MF Global 0.5%JPMorgan Chase Bank 3.8% Macquarie Group 0.4%Citigroup Global Markets 3.6% Newedge Group 0.2%Societe Generale 2.2% Others (36) 1.1%Note: Contributing brokers publish advertised trades to Bloomberg and can include both reported and OTC trades.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.7 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockUnited Kingdom Distributor Status (UKDS)It is worth noting that none of the ETFs listed in the UnitedKingdom are domiciled in the United Kingdom, which means theyare all considered to be ‘offshore funds’ from a United Kingdomtax perspective.The offshore funds rules were originally enacted at a time whenthere was a substantial difference between the rates of income taxand capital gains tax, to prevent investors in offshore vehicles fromconverting income accumulated within the offshore vehicle intocapital on the disposal of that interest. The offshore funds rulestherefore provide that gains made on the disposal of an interest inan offshore fund are subject to income tax, rather than capitalgains tax. The effect of this is to increase the tax payable on gainsrealised by the investor from capital gains tax rates (up to 28%)to income tax rates (up to 50%) substantially reducing their profit.The exception to this is for ‘distributor status funds’ (those whichdistribute their income to investors on an annual basis) where theincome is taxed annually and the gain made on disposal is subjectto capital gains tax treatment.Obtaining United Kingdom distributor status is an importantconsideration for any offshore fund seeking to attract UnitedKingdom investors, as tax will be a key consideration for investorsselecting an offshore fund. The United Kingdom offshore fundslegislation treats gains from offshore funds as income, rather thancapital for tax purposes. Gains are thus subject to income tax rates(top rate of 50%) without any capital gains tax relief. However, if thefund obtains United Kingdom distributor status, gains will be treatedas capital gains which effectively will be subject to capital gains taxat up to 28%, and be entitled to annual exemptions.The existing UKDS regime for funds will be replaced by a new‘Reporting Fund’ system. The new system began on 1 December2009 (specifically fund accounting periods starting on or after1 December 2009), but for existing funds there is a transitionalperiod that stretches into 2012.Source: BlackRock, withersworldwide.The new United Kingdom Reporting Funds(UKRF) systemThe new system does not require funds to distribute income,instead, the requirement is to calculate the fund income per share‘reportable income’ (as calculated on a United Kingdom tax basis)each year and publish that, most usually on a website. The fund nowhas to report 100% of its income (with a 10% margin for error) ratherthan distribute 85%.A fund applies to join the scheme on a one-time basis with the fundmanager giving formal undertakings to comply with all conditions.The fund keeps the UKRF status unless and until the manager isfound to be in material breach of the conditions (or the fundchooses to leave the regime).How will the new system impact investors?Investors in an existing UKDS fund should only be minimallyimpacted by the transition to UKRF status. Provided either UKDS orUKRF status is in place throughout an investor’s holding period, the‘penal’ Offshore Income Gain taxation will not apply on disposal.It is expected that more funds which have been unable to obtainUKDS will be eligible for UKRF and thus become ‘United Kingdomtax status’ for the first time.Where a United Kingdom holder invested in a fund during the earlier‘non UKDS’ period but disposed of the holding after UKRF statuswas obtained, they will have two choices: i) ‘do nothing’, in whichcase their entire gain on eventual disposal will be taxed as anOffshore Income Gain; ii) make an election when filing their taxreturn for a deemed disposal and reacquisition of the holding at thetime UKRF status starts. This means that the Offshore Income Gainis only charged on the earlier ‘non UKDS’ period of ownership.Source: BlackRock.There are three different levels of taxation to consider wheninvesting in ETFs (which are funds): i) there can be withholding taxat the investment level on distributions from the underlyingsecurities by the local tax authorities. The withholding rates at thislevel will depend on the double tax treaties between the domicileof the holder of the securities (the fund/ETF) and the countrywhere the payment has originated; ii) the second level to consideris at the fund level, where the ETF itself pays out a dividend to itsholders. Most ‘offshore’ ETFs listed in the United Kingdomtypically pay out gross dividends which means there is usually nowithholding tax at this level; and iii) the third level to consider is atthe investor’s level as each investor will have their own unique taxcircumstances for income tax rates, capital gains, tax reliefs etc.Recent United Kingdom budget changes have narrowed thedifferences between the treatment of distributions from onshoreand offshore funds for United Kingdom individuals 1 .Selecting the appropriate tools to implement asset allocation views ofclients or advisors is becoming a more involved process due to thegrowing number of available products with differing characteristics.Historically there have been investors who have distinctly preferredeither using high cost active funds (in the search for alpha) or low costpassive funds to achieve their client’s investment objectives, howeverwe are seeing advisors and investors increasingly looking to blendactive and passive strategies within portfolios in an effort to obtainmore effective risk/return profiles in line with the objectives ofthe investor.Fund manager selection is an important consideration when lookingat active products, as many studies have found that most activemanagers do not outperform their local broad market indices. Whencomparing index and active funds there are several factors toconsider such as cost, consistent performance/outperformance invarious market cycles, portfolio transparency, product accessand tradability.Core-satellite investing is an example of a common blendedapproach to building portfolios where a broad based equity or fixedincome index tracking long term investment is held in the ‘core’with various rotating active strategies in place as the ‘satellites’(such as hedge funds, active funds, single country/sector/styleETFs or individual securities). The core would account for themajority of the portfolio to capture a diversified market return whilethe satellites provide portfolio flexibility allowing the investor toemploy more sophisticated strategies and take bets on specificmarket views.1. BlackRock does not and cannot provide tax advice. Tax treatment of ETFs including rates and reliefs may change and will depend upon an investor’s own tax circumstances.BlackRock recommends that all clients seek specialist tax advice from their own tax advisors.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 8

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockUnited Kingdom Retail DistributionReview (RDR)The use of ETFs is likely to increase significantly by IndependentFinancial Advisors (IFAs) in the United Kingdom based on theregulatory proposals outlined in the Retail Distribution Review (RDR)feedback statement by the United Kingdom’s Financial ServicesAuthority (FSA).In January 2011, the FSA published the final rules on professionalstandards (PS11/1). This paper completes the rules on RDR alongwith those on advisor charging and the labelling of services, whichwere finalised in March 2010. The new framework will come intoeffect at the end of 2012.The FSA has published final rules in four keys areas. Thesechanges will: Improve the clarity with which firms describe their servicesto consumers. Make sure the cost of advisor services is agreed between adviserand client, rather than determined by product providers. Increase the professional standards of investment advisors. Ensure personal investment firms have adequate capitalresources for complaint redress.The Retail Distribution Review (RDR) is designed to provide a cleanand sustainable market for the future. It will ensure that customersget good quality advice, products and services suited to their needs,from advisors displaying higher standards of professionalism andexpertise. The regime needs to change and this change will besupported by our intensive supervisory approach including a greaterfocus on individuals.Clarity of advice servicesOn 26 March 2010, the FSA published its feedback statement(Policy Statement 10/6) to its Consultation Paper of June 2009(CP09/18) relating to proposals to improve the clarity with whichadvisor firms describe their services to consumers.The FSA proposals require that firms describe their advice servicesas either ‘independent’ or ‘restricted’. Firms offering independentadvice will need to demonstrate that their recommendations arebased on a comprehensive and unbiased analysis of the market andthat any products selected are made in the interests of clients. If afirm elects to limit its product range to certain investments orstrategies, it will need to describe the services it offers as‘restricted’ and this fact must be clearly disclosed to the consumer.FSA notes that it may be possible for certain advisors servicingspecialist client groups to retain the independence ‘label’ evenwhere certain products are excluded from the scope of their advice,although the firm would have to demonstrate that the product orstrategy was not appropriate for their clients.RemunerationOn 26 March 2010, FSA published its feedback statement (PolicyStatement 10/6) to its Consultation Paper of June 2009 (CP09/18)relating to the introduction of a system of ‘adviser-charging’ toremove the potential commission-bias through the influence ofproduct providers.The FSA will modernise the way that advice is paid for by requiringadvisers to agree the cost of financial advice with customers upfront,removing the possibility of commission bias and ensuring thecost of all advice is clear to consumers whenever it is given.FSA notes that it wants adviser firms to have charging structuresthat are product neutral in that the charges reflect the servicesprovided to the client, not the particular product provider or typeof product.The Policy Statement contains final rules in relation to ‘advisercharging’and ‘service-labelling’ and FSA will proceed with theproposals set out in the consultation. Therefore, with effect from1 January 2013, advisers will be prevented from receivingcommissions paid by product providers.Product providers are no longer required to monitor ‘appropriateadviser-charging’ (with reference to so-called ‘decency limits’)though there remains a requirement to obtain and validateinstructions from the client if the charge is deducted (by theprovider) from the client’s investment.This creates a significant challenge for providers as due to a resultof increasing disintermediation, in part due to the growth ofplatforms, the end-consumer will not be a direct client of the firm.FSA accepts that bespoke share classes to provide for a full rangeof possible adviser charges (when taken from funds) is impracticaland recognises the value of cash accounts provided by platforms orother third-parties to collect adviser charges.These changes will be significant as today many IFAs are ‘tied’ and‘multi-tied’, which respectively describe those selling only theproducts of one provider, such as in a bank, and those sellingproducts from a limited range of providers.This is a particularly important development for factory-gate pricedproducts such as most ETFs, however, it is uncertain whether thecurrent practice of rebating a proportion of the annual managementcharge (if this is used to fund the consumer cash account) will beacceptable and FSA states that it intends to consult further onwhether any rebates should be prohibited. In addition, FSA willproceed with proposals for advisers to describe the advice providedas either independent or ‘restricted’.Source: Policy Statement 10/6, Distribution of retail investments: Delivering the RDR– feedback to CP09/18 and final rules, Financial Services Authority, BlackRock.FSA observes that this exception is unlikely to be of benefit to mostfirms since most retail investment products are likely to beappropriate for the vast majority of retail investors. Separately, FSAnotes it was clear from responses received that it was not widelyunderstood that ETFs already fall within the current definition ofpackaged products and for the avoidance of doubt, it is made clearthat any products which might achieve similar outcomes as moretraditional retail investment products are potentially caught by thenew rules.9 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockProfessional standards of advisersOn 20 January 2011, FSA published its feedback statement andfinal rules (Policy Statement 11/1) relating to the professionalstandards of investment advisers. The scope of the changes set outin the paper covers all investment advisers, whether they will offerindependent or restricted advice, covering advisers within all typesof firms (e.g. banks, product providers, Independent FinancialAdvisers or wealth managers).The FSA confirmed that, after extensive consultation, retailinvestment advisers will need to hold a Statement of ProfessionalStanding (SPS) if they want to give independent or restricted adviceafter January 2013. The statement will provide customers withevidence that the adviser subscribes to a code of ethics, is qualified,and has kept their knowledge up to date.When the RDR comes into force in January 2013, the FSA will startcollecting information about individual advisers, such as thequalifications they hold and which accredited body they use.However, in preparation for 2013, the first of the Professionalismrules will come into force in July 2011, and from this point firms willbe obliged to notify the FSA if any adviser falls below the requiredstandard of competence or ethical behaviour.Initial and ongoing knowledgeAdvisers deemed competent on or before 30 June 2009 will need toattain an appropriate qualification by the end of 2012. Advisers whoare assessed as competent after June 2009 must attain anappropriate qualification within 30 months of starting.Advisers holding certain appropriate qualifications do not need totake further exams to meet RDR standards, but are likely to need tocarry out qualifications gap-fill using relevant structured ContinuingProfessional Development (CPD). CPD activity carried out in thepast can be used towards this gap filling, where it meets a learningoutcome set out in the gap fill template. Advisers will need to havethis qualification gap fill verified by an accredited body.Statement of Professional Standing (SPS)From 1 January 2013, advisers will be required to have obtained anannual SPS from an accredited body. The statement will providecustomers with evidence that the adviser has subscribed to a codeof ethics, is qualified, and has kept their knowledge up-to-date. TheFSA has not introduced a rule requiring firms or advisers to presentthe adviser’s SPS to consumers, but expects that some adviserswill choose to do this to help raise consumers’ awareness ofthe profession.Source: Retail Distribution Review Newsletter, February 2011, Financial ServicesAuthority. Policy Statement 11/1, Distribution of retail investments: Delivering theRDR – professionalism, Feedback to CP10/14 and CP10/22 and final rules, FinancialServices Authority, BlackRock.RDR timetable2011 publications Consultation Paper – RDR-related changes tocomplaints reporting. Consultation Paper – product disclosure changes to reflectadviser charging. Policy Statement – platforms. Consultation Paper – capital requirements: how to apply aconsistent approach to the Expenditure BasedRequirements (EBR).Actions for firms, advisers and providers End 2011 – Personal Investment Firms (PIFs) should hold aminimum of one-month EBR (minimum £15,000). End 2012 – advisers should hold an appropriate qualificationincluding gap-filling, where required. End 2012 – all advisers and product providers must be ready tooperate adviser charging and consultancy charging and meet theassociated requirements. End 2012 – all advisers should describe their services as eitherindependent or restricted. End 2013 – PIFs should hold a minimum of three-months EBR(minimum £20,000).Source: Retail Distribution Review Newsletter, February 2011, FinancialServices Authority.In the United States, fee-based advisers (paid by the consumer)have embraced the use of ETFs to a greater degree thancommission-based advisers (paid by the product provider). In theUnited Kingdom the use of ETFs among IFAs is very limited as theyare typically tied and multi-tied.ETFs are not currently included in the tied or multi-tied product sets.Investors who are expressing concerns over counterparty risk,transparency and liquidity when using structured products, swaps,certificates, and notes are showing a preference for ETFs where thestructure is a fund, and often, more specifically for ETFs whichinvest exclusively in physical securities.The role of platforms in a RDR worldOne area of growing importance is the platforms market.In November 2010 the FSA published a Consultation Paper(CP10/29) on this topic.The FSA’s aim is to: Prevent product providers from making payments that adviserscould use to disguise the charge the customer is paying for advice,which could influence advisers in recommending one product overanother. Allowing such payments could undermine what the FSAhas set out to achieve for consumers by removing commissionbias and could leave product charges at an artificially high level. Ensure platforms and other nominee services allow theircustomers to transfer their investments elsewhere without havingto cash them in first (re-registration). Require platforms to be upfront about the income they receivefrom fund managers or product providers. This will make it easierfor advisers and consumers to compare different types of platformand the services provided. Make sure that customers who invest in funds throughplatforms and other nominee services are provided withinformation about the fund from their fund managers, andmaintain their voting rights.The consultation period closed on 17 February 2011 and the FSAplans to issue a Policy Statement later this year.Source: Retail Distribution Review Newsletter, February 2011, FinancialServices Authority.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 10

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockChanges to the United States tax law mayaffect non-United States resident holdersof United States ETFsFlow-through benefitsFunds registered under the Investment Company Act of 1940 andstructured for tax purposes as Regulated Investment Companies(RICs) under the United States Tax Code were previously allowed apackage of United States tax benefits to non-United Statesshareholders (generally called ‘flow-through’ benefits) as a result ofthe 2004 American Jobs Creation Act. These flow-through benefitsgenerally expired as of 31 December 2009.The three affected flow-through benefits are: Exemption from United States withholding tax (30% or lower treatyrate) on fund distributions where such distributions representQualified Interest Income (QII). QII is certain fund income derivedfrom interest income on debt of United States resident issuers (i.e.obligations issued by Treasury and United States corporations).This applied to fixed income ETFs. Exemption from United States withholding tax on any short-termcapital gains included in fund distributions. This applied to fixedincome and equity ETFs. Relief from United States Estate Tax on fund holdings by non-United States resident persons, where the underlying assetswould have been exempt from Estate Tax if held directly by thenon-United States resident person.The purpose of these three flow-through benefits was to allow anon-United States resident RIC shareholder the same treatment ona flow-through basis as if the investments were owned directly bythe non-United States resident RIC shareholder.On 17 December 2010, the President signed the Tax Relief,Unemployment Insurance Reauthorization, and Job Creation Act of2010 into law. According to this legislation, the items mentioned in1 and 2 above have been extended with respect to financial years ofthe fund beginning before 1 January 2012. The estate tax flowthroughmentioned in point 3 above has been extended to apply toestates of descendants dying before1 January 2012.Source: BlackRock.FATCA (foreign account withholding provisions in theHIRE Act)The United States Congress recently passed the HIRE Act, whichcontains provisions still commonly known as FATCA (the legislationpreviously being the Foreign Account Tax Compliance Act).FATCA is a system designed at getting financial institutions (of alldescriptions) around the world to identify United States investors –even where they hold indirectly via non-United States entities – andreport details of these to the IRS. This responds to high levels ofpolitical concern in the United States over tax evasion, especially bywealthy individuals.In order to encourage compliance with this legislation, the UnitedStates will from 1 January 2013 impose a 30% United Stateswithholding tax on the gross sales proceeds (as well as income)derived by any part of that financial institution from holdings ofUnited States financial assets – unless that institution agrees toenter the reporting regime.Funds and fund managers are included in the definition of ‘ForeignFinancial Institutions’ (FFIs) and so FATCA goes greatly wider inreach than the existing ‘Qualified Intermediary’ system, with which itwill coexist.The impacts on the financial world are undoubtedly complex andpotentially far reaching. The basic wording of the HIRE Act leavesmany questions of detail unanswered, so financial institutions arewaiting keenly for draft regulations to be issued by the UnitedStates Treasury.It does however currently appear that holdings of United StatesETFs by non-United States investors would be subject to the 30%withholding from gross sales proceeds, where held through a non-United States financial intermediary who does not become FATCAcompliant when the regime goes live in 2013.Source: BlackRock.We expect ETF assets to grow by20–30% in 2011The landscape will continue to evolve during 2011 and beyondas we see more products from traditional active asset managersand alternative asset class exposures becoming available to‘mainstream’ retail and institutional investors through standardisedand regulated fund structures such as UCITS in Europe.Hedge funds have historically been difficult for many investors toaccess with the high minimum subscription levels and maximuminvestor limits, but hedge funds are now noticing the growth andappeal of ETFs which are easy to access, but have powerfuldistribution networks. So we expect to see more hedge fundslooking to create ETFs, with their own funds as the underlyingexposure, in an effort to broaden their distribution capabilities.This will, on one hand, give more investors access to the asset classand the ability to do so in small sizes, with daily liquidity, but alsomake it challenging for them to understand what they are investingin compared to the historical daily transparency of the underlyingportfolio in low-cost index based exposures which ETFs havebecome known for.It will be important in the coming years to ensure that as newgenerations of ETFs come to market, investors are educated ontheir structures and mechanics when they deviate from thetraditional definition of ETFs.Traditionally ETFs are defined as exchange listed, open-ended, liquidwith secondary and primary in-kind creation and redemption (withsupport from market-makers and other liquidity providers), with realtime indicative Net Asset Value (NAV), and transparent where theunderlying portfolio is disclosed on a daily basis.11 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockOne of the reasons larger institutions are embracing ETFs is due tothe fact that many have indicated in various surveys that one oftheir focuses for product development is multi-asset class investing,and given this focus, many firms are embracing the fact that theability to deliver alpha across all segments of all asset classes(equities, fixed income, commodities) is not achieved by most firms.It has become hard for participants in the financial markets toignore a product category which broke through the US$1 trillionAUM milestone for the first time at the end of December 2009.Today there is a growing fan club that cites ETFs as one of thegreatest financial innovations in the past two decades.ChallengesETFs have been embraced because we are in a ‘back to basic’environment where they provide transparency on the portfolio’sholdings, offer daily creation/redemption, have multiple marketmakers,and have real-time indicative NAVs, etc. We risk movingaway from this product and description that has been increasinglyembraced by retail and institutional investors and find ourselves atan important crossroads.This new and growing awareness of ETFs is causing more people invarious types of firms and regulators to look at ETFs. Many firms arehoping to find a way to make money from the growing ETF industrysuch as fund ratings firms, consultants, websites, fund platformsand fund research firms, to name a few. These new participants andpotential tax and regulatory changes are the new forces impactingthe traditional ETF ecosystem in 2011.Investors need to be aware of the various biases that are inherent inmany of these new services. Many are focused on the United Stateslisted ETFs, others require the ETF manager/ provider to pay tohave their ETFs represented/rated, some will require the ETF to beover a specific size and/or be at least a certain age. These biasesmiss factoring in basic requirements for investors such as ETFstructure, domicile, registration and tax reporting to name a fewimportant criteria.The impact of regulatory and tax changes such as the EuropeanUnion Directive on markets in Financial Instruments (MiFID II),Undertakings for Collective Transferable Securities (UCITS IV), theRetail Distribution Review (RDR), the Alternative Investment FundManager Directive (AIFMD), Qualified Interest Income (QII),Packaged Retail Investment Products (PRIPs), the Foreign AccountTax Compliance Act (FATCA), the Key Information Document (KID)etc is an area of considerable uncertainty at this time.We are at an important crossroads in the ETF industry. We areseeing funds which 1) do not provide transparency on theirunderlying portfolios, 2) do not offer in-kind creation/redemptionand 3) do not have real time indicative NAVs calling themselvesETFs. Products which are not even funds are being called ETFs.Now that the industry accounts for over US$1 trillion in AUM,product developers are working hard to find ways to put structuredproducts, hedge funds and active funds into ETFs. Agreeingdefinitions for ETFs, ETNs, ETCs, ETVs, ETPs, etc. is one of thegrowing needs in the industry.Figure 10: 2011 ETF ecosystemETPsConsultantsETVsTaxIndexproviderFundsupermarketsETFsRegulationsManager/providerLiquidityproviderInvestorETF portals,websites,centresExchangeMarketmakerFundratingsETFresearch:banks,brokers,managersETCsETNsSource: Global ETF Research and Implementation Strategy Team, BlackRock.Many regulators around the world are looking at rules regardingshort selling, the use of derivatives, the use of commodity futures,and transparency of fees to name a few. Many of these documentsare in the consultation phase and/or the specific guidelines forimplementation have not yet been defined.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 12

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 11: Comparing ETFs and mutual fundsCharacteristic ETFs Active mutual funds Index tracking mutual fundsStructure Open-ended fund Open-ended fund Open-ended fundInvestment objective Replicate an index Outperform an index Replicate an indexTrading Intraday during LSE market hours Once a day or less frequent Once a day or less frequentAccessibilityPricingVia a stock broker orwrap platformPriced at close to Net Asset Value(NAV) and continually in market hoursVia fund manager orfund supermarketsPriced daily close tofund NAVVia fund manager orfund supermarketsPriced daily close tofund NAVExpense ratios TER TER TERBid/ask spread Yes Yes (unless single priced) Yes (unless single priced)Dividend treatment Distributing or accumulating Distributing or accumulating Distributing or accumulatingTransparency High Low LowMinimum investment size No Yes YesExit/penalty fees No Sometimes SometimesTracking error Low High LowReturns variability Low High LowManager selection risk No Yes NoTax wrapper inclusionISA/SIPP Yes Yes YesOffshore bond Yes Yes YesSource: Exchange Traded Funds, A Guide for UK Financial Advisers, BlackRock.Figure 12: United Kingdom mutual fund industryAssets (US$ Mn)1,200,000# funds3,0001,000,0002,500800,0002,000600,0001,500400,0001,000200,00050002005 2006 2007 2008 2009 2010Assets (US$ Mn) $642,596 $871,398 $946,182 $560,299 $821,763 $950,480# funds 1,951 2,107 2,247 2,483 2,555 2,5980Source: Strategic Insight Simfund Global.13 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 13: United Kingdom mutual fund assets by type of fundNet flows(US$ Mn)2010Assets(US$ Mn)Dec-2010Type of fund#funds%totalEquity 1,426 $13,126 $581,569 61.2%Bond 344 $16,133 $168,110 17.7%mixed 643 $17,887 $132,160 13.9%Other 75 $12,629 $35,048 3.7%Real estate 54 $3,009 $26,032 2.7%Money market 41 -$393 $6,089 0.6%Guaranteed 15 -$50 $1,471 0.2%Total 2,598 $62,342 $950,480 100.0%Equity 61.2%Bond 17.7%Mixed 13.9%Other 3.7%Real estate 2.7%Money market 0.6%Guaranteed 0.2%Source: Strategic Insight Simfund Global.Figure 14: United Kingdom mutual fund flowsNet flows (US$ Mn)100,00090,00080,00070,00060,00050,00040,00030,00020,00010,00002005 2006 2007 2008 2009 2010Net flows (US$ Mn) $47,589 $54,370 $41,371 $10,248 $55,703 $62,342Source: Strategic Insight Simfund Global.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 14

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 15: United Kingdom institutions reported holding ETFs# institutions140120100806040200Region ETF listed 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Any ETF 9 12 15 25 37 55 61 55 79 87 112 120US listed ETF 9 12 13 24 36 51 55 51 71 77 92 102Europe listed ETF - - - - - 3 6 4 18 25 39 47ROW listed ETF - - 2 2 4 8 9 4 8 10 20 22Source: Global ETF Research and Implementation Strategy Team, BlackRock, Thomson Reuters.15 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockETF backgroundETFs are one of the more innovative new financial products toemerge from the financial industry in the last two decades. Sincethe launch of the first ETF in Canada in 1990, ETFs have opened anew panorama of investment opportunities. Essentially, ETFs areopen-end index funds that are listed and traded on exchanges likestocks. They allow investors to gain broad exposure to stockmarkets of different countries, emerging markets, sectors andstyles as well as fixed income and commodity indices with relativeease on a real-time basis and at a lower cost than many other formsof investing. ETFs are more transparent than traditional funds as themanagers provide the ETF portfolio composition to the market on adaily basis.ETFs are bought on a commission basis, just like many other shares.Generally: 1) they can be purchased on margin and are lendable,2) they can be bought and sold at market, limit or as stop orders,and 3) they do not have any sales loads, although they do haveannual expenses that range from 0.00% to 1.90% 1 . ETFs have someof the lowest expense ratios among registered investment products.The annual expenses are usually deducted from dividend payments,which are typically paid on a semi-annual basis.ETFs possess characteristics that make them an alternative tofutures and portfolios of shares for investors who are seeking togain or reduce country, regional, sector and style as well as fixedincome and commodity exposure. ETFs are index funds and notsynthetic derivatives. They trade and settle like single shares andare typically backed by baskets of securities designed to trackindices. On most exchanges ETFs can be used to go long and short 2 .ETFs offer diversified exposure and generally have lower expenseratios than traditional active and index funds.ETFs may prove as liquid as the underlying basket of securities asthey have a unique daily creation and redemption process. Theability to continually create or redeem shares helps keep an ETF’smarket price in line with its underlying Net Asset Value (NAV). A keyfeature that distinguishes ETFs is that the shares are created byAuthorised Participants (APs) or creation/redemption brokers inblock-size ‘creation units’.The creator of ETF shares typically deposits into the applicable funda portfolio of securities closely approximating the holdings of theindex in exchange for an institutional block of ETF shares (usually50,000). Similarly, they can only be redeemed in redemption units,mainly ‘in-kind’ for a portfolio of securities held by the fund. Theredemption and creation processes are very similar.A key benefit of the in-kind distribution of securities is that it doesnot create a tax event in the United States, which could occur if thefund sold securities and delivered cash. This is a special advantageof ETFs versus an open-end mutual fund, which might have to sellsecurities to meet cash redemptions.Many institutional investors, intermediaries, family offices andself-directed retail investors have embraced the idea that ETFs aretools that can help them to equitise cash, establish a core holding,use for Tactical Asset Allocation (TAA) and which can be asubstitute for a program trade or using futures.They can be used to gain exposure to equity sectors, styles, country,regional, international and emerging market indices, government,corporate bond, money market indices as well as commodityindices at real-time prices during the trading day.The challenging market conditions of 2008 caused a significant shiftin investors’ risk appetite in their evaluation of counterparty risk andtheir desire for liquidity. During 2009 many investors turned to ETFsto help meet their desire for greater transparency in relation to theissues of cost, transparency of holdings, transparency of price,liquidity, product structure, risk and return as they relate toinvestment alternatives.ETFs are index-based 3 open-ended funds that can be bought andsold as quickly and easily as ordinary shares on a stock exchange –they have become popular and widely used investment vehicles toachieve many investment strategies: To gain diversified exposure to a market For core/satellite investing For buy and hold investing For active traders who wish to take advantage ofmarket movements For investors wishing to hedge the market As an alternative to futures and other institutionalinvestment tools.All financial investments involve an element of risk. Therefore, thevalue of an investment in ETFs and the income from it will vary andthe initial investment amount cannot be guaranteed.In a world where investment products come and go with the blink ofan eye, ETFs might be considered one of the most innovativefinancial products in the last two decades. They have fundamentallychanged how both institutional and retail investors construct theirinvestment portfolios.ETF providers have continued to expand their product ranges inmore specialised areas to cater for the growing number ofprofessional and retail investors using ETFs as advanced portfolioconstruction tools. The increasing availability of thesehighly-specialised ETFs across the full spectrum of equities, fixedincome and alternative investments now ensures that investors canuse ETFs to instantly reallocate capital to take advantage of newinvestment opportunities.The use of ETFs is often driven by macro trends and volatility. Thechanges in investor sentiment are illustrated in the net new assetdata into ETFs tracking fixed income indices, equity indices,emerging market indices and commodities.We have documented and discussed for many years the growinguse of ETFs by institutional investors around the world. See ETFLandscape, Annual Review of Institutional Users of ETFsin 2008 report 4 .1. Source: Various ETF providers, Global ETF Research and Implementation Strategy Team, BlackRock, as at year end 2010.2. With short sales, the investor risks paying more for a security than the investor received from the sale.3. Most are index-based, but some are active.4. The ETF Landscape Annual Review of Institutional Users of ETFs in 2008 looked at the use of ETFs by institutional investors globally who reported holding one or more ETFs intheir mutual fund holding disclosures, or in different filing sources including 13F, 13D and 13G, proxy or other declarable stakes during any of the four quarters of 2008 basedon data compiled by Thomson Reuters.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 16

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockETFs gain foothold in institutional marketIn the United States, where ETFs are most commonly thought of asa retail product, institutional investors are finding that ETFs can behelpful tools for cash equitisation, transition management,rebalancing, and obtaining hard to achieve exposures.ETF use among United States pension funds, endowments andfoundations has grown to about 14%, according to the results ofGreenwich Associates’ 1 most recent annual study of the UnitedStates investment management market. Despite that relativelymodest share, institutions actually represent roughly half the assetsinvested in ETFs in the United States according to recentindustry estimates.Almost half the institutional users in the Greenwich Associatesannual study say they employ ETFs for what they consider ‘tactical’tasks related to the management of their portfolios. Approximately20% of institutional ETF users say they employ the funds toimplement ‘strategic or long-term’ investment decisions, and anequal share report that they use ETFs for both tactical andstrategic purposes.Figure 16: How ETFs are used by United States institutionsTactical adjustmentsTransitionsCash equitisationCore/satelliteRebalancingPortfolio completionETF overlayOther45%38%31%28%24%24%3%25%3%6%19%31%25%56%31%63%0% 15% 30% 45% 60% 75% 90% 105%Plan sponsorsMoney managersNote: Based on responses from 70 United States plan sponsors and money managersusing ETFs.Source: 2010 Greenwich Market Pulse – ETFs.Figure 17: ETF providers/products currently usedProviders/products %iShares/BlackRock 89%SPDRs/State Street 60%Vanguard 51%ProShares 13%BLDRs/PowerShares/INVESCO 13%Direxion 2%Rydex 2%Other 2%Note: Based on responses from 70 United States plan sponsors and money managersusing ETFs.Source: 2010 Greenwich Market Pulse – ETFs.Conclusion: the future of ETFs in theinstitutional marketplaceAlmost 55% of institutions currently employing ETFs expect theirusage of the product to increase in the next three years, includingnearly 20% that expect the amount of assets dedicated to ETFs togrow by 5–10% in that period.Money managers are slightly more apt to predict an increase in use:Approximately 65% expect to be devoting more assets to ETFs inthe next 12 months, compared with half of plan sponsors. About20% of plan sponsors expect to reduce their use of ETFs.Nearly 30% of institutions that do not use ETFs say they lackfamiliarity with the product. One way to address this lack ofinformation would be for providers to win over investmentconsultants, who would then be in a position to explain the productto their institutional clients as both a tool for tactical adjustmentsand a means of obtaining desired exposures.The results of this Greenwich Market Pulse suggest that manyinvestment consultants are not currently recommending ETFs oreven initiating discussions with their clients about the product.Source: Greenwich Associates: ETFs Gain Foothold in Institutional Market, April 2010.iShares/BlackRock is the biggest ETF provider to institutions in theUnited States. Greenwich Associates asked the institutionsparticipating in the survey to name the providers they use for ETFs.The results reveal the following: iShares/BlackRock is by far the most widely used provider of ETFsamong United States institutions. Most institutions that employ ETFs use more than one provider:89% of institutional ETF users obtain ETFs fromiShares/BlackRock, whereas 60% use SPDRs/State Street and51% use Vanguard.Institutions cite a range of criteria used in selecting an ETF provider.In addition to the obvious consideration of fees, institutions rankfour factors as particularly important in selecting an ETF provider:liquidity, benchmark, the track record of the fund, and reputation ofthe company behind the fund.Figure 18: Expected change in asset allocation to ETFsIncrease >10%Increase 5–10%Increase 1–4%No changeDecrease -1–4%Decrease -5–10%Decrease >-10%-8%-5%-3%10%18%25%33%-20% -10% 0% 10% 20% 30% 40%Note: Based on responses from 70 United States plan sponsors and money managersusing ETFs.Source: 2010 Greenwich Market Pulse – ETFs.1. Greenwich Associates surveyed United States pension funds, endowments, foundations, and money managers that identified themselves as ETF users. 70 institutionsparticipated in the survey, including 43 plan sponsors and 27 money managers. The survey was conducted from 8 March to 16 March 2010.17 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockImplementing asset allocation with ETFsInvestment applicationsETFs have many investment applications. ETFs on broad-basedindices can serve as diversified core holdings, while style and sectorETFs can be used to complete parts of a portfolio or fortactical strategies.Due to their targeted exposure to specific market segments, ETFsgenerally work well within the macro asset allocationand sector emphasis models developed by equitystrategists. They also help provide efficient ways to gaininternational diversification.Another benefit of ETFs is that they are complimentary to manyother investment products. They can be used together withcommon stocks, private asset managers, and other fund products.Investors may buy ETFs to diversify their assets. Most ETFs arepassively managed portfolios designed to provide relativelylow-cost investments in broad-based or proprietary indices.Some ETFs offer relatively low-risk, broadly diversified portfolios,which many investors may find attractive as the core equitycomponents of their portfolios. Others offer diversified investmentsin particular styles, sectors, industries, regions, or countries.ETFs based on broad-market indices serve as core holdings, whichis essential, especially in today’s environment of increased marketvolatility. Since no single sector, style, or stock consistentlyoutperforms its peers, having core holdings invested in broadmarketindices not only helps reduce volatility but also can achievecompetitive returns for the overall portfolio.ETFs work well with strategic asset-allocation models. In our view,asset-allocation models have two primary applications for investors: As the framework for an entire portfolio: investors desiring acomplete asset allocation strategy may find this appealing, asthey merely have to purchase appropriate investments for eachmarket segment in their proper weightings and occasionallyrebalance their portfolios. As the core portion of a portfolio: those seeking an approachwith more active trading may find a core/satellite investmentstrategy appropriate. In this case, the model can serve as a core.In an effort to increase returns, shorter-term tactical strategies,such as stock, sector, style or country overweights may then beemployed as satellite investments. Core holdings can help ensurethat a portfolio’s performance does not deviate widely fromestablished benchmarks, while satellite investments constituteactive plays in an effort to increase returns.ETFs can be used for targeted sector exposure. Sector ETFs can be used for the tactical portion of a portfolio or to gain exposure tounderrepresented sectors in a portfolio. They can also serve as the building blocks for a sector model.Figure 19: Sector weights and YTD performanceUnited Kingdom, Europe, WorldSector#stocksMSCI UK MSCI Europe MSCI World%weight% YTDreturn#stocks%weight% YTDreturn#stocks%weightConsumer discretionary 16 5.5% 14.2% 66 8.4% 24.0% 245 10.2% 22.8%Consumer staples 10 13.5% 5.6% 38 11.5% 8.3% 123 9.3% 10.1%Energy 9 20.3% -2.9% 26 11.4% -4.8% 115 11.5% 9.5%Financials 24 21.2% -2.1% 103 22.6% -12.7% 341 20.5% 2.3%Healthcare 4 7.8% -4.8% 28 9.3% -2.4% 119 9.1% 0.4%Industrials 17 5.1% 9.1% 86 11.1% 15.9% 264 11.4% 21.3%Information technology 3 1.0% 32.3% 19 3.1% 6.7% 154 11.9% 9.5%Materials 13 14.3% 24.1% 49 10.3% 14.9% 160 8.0% 19.4%Telecommunications 4 7.3% 12.0% 22 6.6% -3.7% 51 4.1% 5.3%Utilities 6 4.0% 4.9% 29 5.5% -15.2% 89 4.0% -4.5%Total 106 100.0% 4.7% 466 100.0% 0.8% 1,661 100.0% 9.6%Note: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transactioncosts or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. YTD returns reflect US dollar priceperformance only from 31 December 2009 to 31 December 2010. Index weights captured from Bloomberg on 2 February 2011.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.% YTDreturnThis document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 18

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 20: Macro asset allocation strategiesETFs can be used to implement the country and regional allocations suggested by strategists and analysts.MSCI World#stocks%weight% YTDreturnAustralia 72 3.8% 10.0%Austria 8 0.2% 6.2%Belgium 14 0.4% -2.5%Canada 100 5.3% 19.0%Denmark 11 0.5% 28.4%Finland 17 0.5% 5.9%France 76 4.5% -7.0%Germany 53 3.8% 4.9%Greece 8 0.1% -46.5%Hong Kong 41 1.3% 19.7%Ireland 5 0.1% -19.9%Israel 14 0.3% 2.2%Italy 30 1.3% -18.5%Japan 340 9.8% 11.6%Netherlands 21 1.2% -0.9%New Zealand 5 0.0% 3.2%Norway 10 0.4% 6.3%Portugal 9 0.1% -14.8%Singapore 31 0.8% 18.3%Spain 28 1.7% -26.2%Sweden 33 1.5% 31.0%Switzerland 37 3.5% 9.6%United Kingdom 106 9.7% 4.7%United States 592 49.1% 13.2%Total 1,661 100.0% 9.6%MSCI Europe#stocks%weight% YTDreturnAustria 8 0.5% 6.2%Belgium 14 1.4% -2.5%Denmark 11 1.5% 28.4%Finland 17 1.7% 5.9%France 76 15.4% -7.0%Germany 53 13.0% 4.9%Greece 8 0.5% -46.5%Ireland 5 0.4% -19.9%Italy 30 4.4% -18.5%Netherlands 21 4.0% -0.9%Norway 10 1.4% 6.3%Portugal 9 0.4% -14.8%Spain 28 5.6% -26.2%Sweden 33 5.0% 31.0%Switzerland 37 12.0% 9.6%United Kingdom 106 32.9% 4.7%Total 466 100.0% 0.8%MSCI Emerging Markets#stocks%weight% YTDreturnBrazil 81 15.8% 3.8%Chile 17 1.6% 41.8%China 140 17.5% 2.3%Colombia 9 0.8% 40.8%Czech Republic 3 0.4% -8.5%Egypt 11 0.4% -100.0%Hungary 4 0.4% -11.0%India 66 7.0% 19.4%Indonesia 24 2.1% 32.1%Malaysia 40 2.9% 33.3%Mexico 24 4.6% 26.0%Morocco 3 0.2% 10.9%Peru 3 0.7% 49.2%Philippines 14 0.5% 30.2%Poland 23 1.7% 12.6%Russia 29 6.9% 17.2%South Africa 47 7.1% 31.6%South Korea 102 14.4% 25.8%Taiwan 122 12.0% 18.3%Thailand 22 1.6% 51.0%Turkey 19 1.4% 17.5%Total 803 100.0% 16.4%Note: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transactioncosts or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. YTD returns reflect US dollar priceperformance only from 31 December 2009 to 31 December 2010. Index weights captured from Bloomberg on 2 February 2011.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.19 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 21: Core/satellite applicationsETFs in the coreETFs in the satelliteActivestrategy3ETFsActivestrategy1ETFsatellitePortfolioETFsatelliteActivestrategy2ETFsatellite A broad market index. Concentrated, focused ETFs. Exposure to diversified baskets of securities. Optimised core: sector, style or country indices. Sector and style. Individual countries and regions. Alternative asset class.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.ETFs also offer a way to gain exposure to international and emergingmarket equities. They provide access to baskets of stocks inspecific countries or regions in the form of an individual listedsecurity. Most ETFs are well diversified and thus typically provide aless volatile way to obtain exposure to given countries than thepurchase of individual stocks or GDRs. They also provide convenientinvestments in markets and securities that otherwise mightbe inaccessible.Investors can use ETFs as a cash management tool. They canpurchase ETFs to ‘equitise’ cash inflows that could eventually beinvested in stocks. Equitising cash simply refers to investing cash ina way that provides exposure to the performance of an equitysecurity or index. This can be done in relatively small increments –ETFs typically trade in round lots with the price of a share rangingfrom approximately US$7 to US$205.ETFs can be sold short to hedge a portfolio of stocks, bonds,commodities, closed-end funds or open-end mutual funds. Thisallows an investor to preserve a portfolio while protecting it fromoverall market losses. In a market decline, profits on an ETF shortposition could offset some of the losses incurred by the portfolio.Listed options are available on certain ETFs and can be used forincome-producing, risk-reducing, and speculative strategies. Listedoptions also exist for many of the same indices on which ETFs arebased, allowing for additional hedging and arbitrage strategies.ETFs provide low-cost, liquid trading vehicles. They can be used bymarket timers wishing to gain or reduce exposure to entire marketsegments or sectors throughout the trading day. They also can beused for targeted asset allocation or sector rotation strategies. ETFscan be shorted throughout the trading day subject to the availabilityof applicable stock borrows.As an alternative to futures, ETFs can be bought in smaller sizes, donot require any special documentation or accounts, and do not haveroll costs or margin requirements. In addition, the current array ofETFs covers many benchmarks for which there is nofutures contract.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 20

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 22: ETF portfoliosConservative Balanced Growth DynamicFixed incomeBarCap € Government Bond 1–3BarCap € Government Bond 3–5BarCap € Government Bond 7–10iBoxx € Liquid Corporate BondEquitiesMSCI Europe ex-UKFTSE 100S&P 500MSCI North AmericaNikkei 225MSCI Emerging MarketsPropertyFTSE EPRA/NAREIT Global Property YieldAlternativesFTSE/Macquarie Global Infrastructure 100S&P Listed Private EquityDow-Jones-UBS CommodityLowerExpected riskHigherLowerExpected returnHigherNote: Sample portfolios are for illustrative purposes only and should not be construed as a recommendation to purchase or sell, or an offer to sell, or a solicitation of an offer to buyany security.Source: BlackRock.Figure 23: Why use ETFs?Transparency Investors can generally see the ETF composition at any given time.LiquidityDiversification ETFs offer two sources of liquidity: Traditional liquidity measured by secondary market trading volume. The liquidity of the underlying assets via the creation and redemption process. ETFs offer immediate exposure to a basket or group of securities for instant diversification. Broad range of asset classes including equities, bonds, commodities, investment themes etc.Flexibility ETFs are listed on exchanges and can be traded at any time the market is open. Pricing is continuous throughout the day.Cost effectiveness ETFs offer a cost effective route to diversified market exposure. The average Total Expense Ratio (TER) for equity ETFs in Europe is 40 bps versus 91 bps per annum for the average equityindex tracking fund and 180 bps per annum for the average active equity fund 1 .Securities lending ETF units and underlying assets can be lent out to potentially offset holding costs.1. Source: Morningstar, March 2010.21 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 24: How can ETFs be used?Strategic Market exposure:Implement a wide variety of investment strategies using a broad range of market exposures. Directional views:Establish broad directional market position, use long and short trades to implement market view(s). Core satellite:Achieve strategic focus. Rebalancing:Adjust drift in a portfolio’s asset allocation or style. Completion:Add uncorrelated instruments and/or asset classes to strategy.Tactical Interim beta:Maintain exposure to given market while searching for specific market opportunity. Cash management:Invest cash rapidly and cost effectively to gain desired market exposures. Derivatives alternative:Broad opportunity set of Delta 1 exposures with single line cash-based settlement. Exposure management:Shift portfolio emphasis by adjusting exposures (e.g. duration, credit). Thematic:Implement thematic exposures (e.g. dividends, alternatives).Figure 25: ETFs can offer solutions for a range of portfolio strategies 1Portfolio constructionPortfolio management Fill allocations required by investment strategy. Improve diversification. Gain exposure to size, style, yield, sector, geography. Implement short-/long-term and/or neutral market views: Hard to access asset classes, themes, sector, country. Tactical asset allocations.Strategic assetallocations Establish core holdings. Establish single country or sector satellites.Risk management Active risk budgeting. Combine ETFs in managing total portfolio volatility or duration adjustments in fixed income portfolios.Cash equitisation Manage inflows, outflows, transitions. Obtain a wider exposure than offered by other Delta 1 products.Exposure Exposures to markets or asset classes where one has no expertise or operational capabilities.1. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or asolicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 22

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockETFs afford investors two forms of liquidity. The first is throughtrading the shares on a secondary basis on the exchange. Thesecond is on a primary basis via the unique ‘creation’ process,whereby an AP purchases the underlying basket of securities in thelocal market and deposits the basket ‘in kind’ into the ETF, creatingmore shares in that ETF. The unique creation/redemption processmeans that the liquidity in the ETF is driven by the liquidity in theunderlying securities.Divergence in the performance of an ETF, relative to the index ittracks, is possible. Differences tend to be caused by fund fees andexpenses, tracking error when optimisation strategies are used totrack the index, rebalancing due to corporate actions and indexchanges, or the dividend reinvestment policy of the fund.ETFs tend to trade at, or close to, their underlying NAVs. This isbecause there are usually arbitrageurs waiting to take advantage ofa significant premium or discount relative to the underlying index.An arbitrageur will buy/sell the ETF and place an offsetting buy/selltransaction in the underlying basket of component securities.Figure 26: Typical ETF trading processPrimary marketSecondary marketETF managerSecuritiesETFETF marketmakers/brokerCash (OTC)ETFInvestorCashETF¹Exchange1. ETF or Creation Basket.23 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockToday the ETF toolbox is well stocked with a wide array of products:Figure 27: The ETF toolboxEquity Fixed income Cash Currency Global Government EONIA, SONIA Developed currencies Capitalisation (large,mid, small…) Sectors Broad markets Emerging markets Countries Inverse/leveraged Styles Active Dividend Fundamental Infrastructure Real estate Shariah Thematic Private equity Corporate Credit Inflation High yield Mortgage backed Emerging markets Fed fundsAlternatives Hedge funds Carbon Volatility2,459 ETFs with 5,554 ETF listings1,044 ETPs 1 with 1,757 listingsTotal: 3,503 productswith 7,311 listings Emerging market currencies Inverse/leveraged Strategy (carry, momentum...)Commodities Broad (S&P GSCI, DJ-UBS,RICI, CRB…) Sub-indices (energy, livestock,precious metals, industrialmetals, agriculture...) Individual commodities Based on physically held assets(gold, silver, platinum,palladium…) Based on futures Based on forwards Inverse/leveraged Value/growth1. ETPs include HOLDRs, Exchange Traded Commodities (ETCs), Exchange Traded Currency Products, and ETNs, as at year end 2010.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.ETFs cover many well known blue-chip indices such as S&P 500,CAC, DAX, FTSE 100, Hang Seng, Nikkei etc. Recently there hasbeen a proliferation of new indices from index providers which theyhope will form the basis of new ETFs. Many of the new indices usediverse weighting methodologies, including market capitalisation,equal weight, price, dividend and other fundamental factors. As anexample the new FTSE RAFI Index Series is weighted using fourfundamental factors; total cash dividends, free cash flow, total salesand book equity value rather than traditional market capitalisation.WisdomTree has created dividend-weighted indices where thestock’s weight is based on either the amount of cash dividend or thedividend yield of the companies in each index.Infrastructure ETFs: the first infrastructure ETF was launched inJanuary 2007. Infrastructure indices provide diversified exposure tothree infrastructure clusters: energy (oil and gas, storage andtransportation), transportation (airport services, highways andrailroads, marine ports and services) and utilities (electric, gas,water, multi-utilities).Fixed income ETFs: the first fixed income ETF was launched inCanada in November 2000. A broad array of government, corporate,credit, high yield, emerging market, inflation protected and moneymarket fixed income products are available to investors within theflexibility of an ETF wrapper, allowing investors to implement incomegenerating strategies, fund future liabilities, hedge inflation andenhance portfolio risk-adjusted returns. There are global, regionaland single country fixed income ETFs with TERs ranging from 0.05%to 1.35%.Commodity ETFs: the first commodity ETF was launched inCanada in March 2001. Commodities as an asset class typicallyexhibit low correlation to equity indices, and the advent ofcommodity ETFs allows investors to satisfy asset allocation anddiversification requirements, hedge inflation or speculate oncommodity indices such as the S&P GSCI. Trading commodityindices as a single exchange traded product avoids the need tomanage futures rolls, provides investors with deep underlyingliquidity pools, and allows investors who are restricted from usingderivatives or other commodity vehicles to gain exposure in anequity vehicle.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 24

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockShari’ah ETFs: the first Shari’ah compliant ETF was launched inJanuary 2007. Shari’ah compliance means compliance with certainShari’ah principles that are derived from the Quran and othersources of Islamic law, as determined by Shari’ah scholars.Methodologies exclude representation in the index by shares issuedby producers of alcohol and pork-related products, providers ofconventional financial services and providers of entertainmentservices (e.g. hotels, casinos/gambling, cinema etc.). Tobaccomanufacturers, defence and weapons companies, although notstrictly forbidden under Shari’ah law, are also excluded. In additionto excluding companies from certain sectors, Shari’ah compliantindices also exclude companies that employ excessive leverage orgenerate excessive interest income.Private equity ETFs: the first private equity ETF was launched inOctober 2006. Private equity firms raise capital primarily frominstitutional investors such as pension funds, banks, insurancecompanies, endowments, family offices, funds of funds andfoundations to invest in venture capital, buy-outs and specialsituations (distressed companies). Typically, private equitycompanies invest in high growth, start-up companies or acquirebusinesses where superior efficiencies could be achieved.Real estate ETFs: the first real estate ETF was launched in theUnited States in June 2000. The existing range of real estate ETFsinclude listed real estate companies and Real Estate InvestmentTrusts (REITs) which own and usually actively manage incomeproducingcommercial real estate. REITs are typically required topay out at least 90% of all taxable income, providing dividendincome to investors, along with the potential for long term shareprice appreciation. There are several ETFs available allowinginvestors to gain global, regional or single country REIT exposure.Dividend ETFs: the first dividend weighted ETF was launched inNovember 2003. Several ETF providers have structured ETFs byselecting and weighting the constituents based on dividend yield orabsolute dividend payments. Some research suggests that dividendweighted indices generate higher cumulative returns with lowervolatility than comparable standard market cap weighted indicesover the long term. There are many ETFs providing dividendweighted global, regional, single country and emerging marketsexposure with Total Expense Ratios (TERs) ranging from 0.20%to 0.88%.Fundamental ETFs: the first fundamental factor weighted ETF waslaunched in May 2000. Fundamental factors such as sales, cashflow, book value, dividends, earnings, and employees, areincreasingly being used to create new indices. It has been arguedthat traditional market cap weighted indices are systematicallyinefficient by overweighting overvalued stocks and underweightingundervalued stocks.Sector ETFs: the first sector ETFs were launched in December1998 covering nine United States economic sectors allowinginvestors to gain United States sector exposure or implementsector rotation strategies. Certain sectors outperform in particularstages of the economic cycle. Sector rotation strategies aredesigned to beat the market by rotating the investment into thesector which is expected to outperform in the given stage of theeconomic cycle. There are many ETFs providing global, regional, andsingle country sector exposure with TERs ranging from 0.15%to 1.49%.Inverse/leveraged ETFs: the first inverse or leveraged ETF waslaunched in February 2005. Leveraged ETFs are designed to provideup to 300% daily upside performance while the inverse range ofETFs provide one, two or three times daily reverse (short) indexperformance. These ETFs can be used to magnify returns, hedgeportfolios and manage risk without the need for a margin account ormargin calls. TERs for these ETFs range from 0.14% to 1.90%.Global ETFs: the first global ETF was launched in August 1997 inNew Zealand. Global ETFs allow investors to gain diversifiedexposure to broad developed markets such as MSCI World whichtracks the performance of 24 developed countries. Internationaldiversification can minimise the impact of economic downturnswithin individual countries or regions and reduce overall risk. Thereare global ETFs with TERs ranging from 0.20% to 1.14%.Emerging market ETFs: the first emerging market ETF waslaunched in March 1996. Emerging market countries are typicallycharacterised by rapid economic growth, volatility, immatureinstitutions and political instability. ETFs that track global emergingmarket indices such as the MSCI Emerging Markets Index provideinvestors with diversified exposure to 21 EM countries. There aremany ETFs providing global, regional, and single country emergingmarket exposure with TERs ranging from 0.06% to 1.90%.Source: Various ETF providers, exchanges, Global ETF Research and Implementation Strategy Team, BlackRock, as at year end 2010.25 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockAdvantages of fixed income products Government, corporate, credit, inflation, interest rate indices. Security: government issued fixed income products are usuallyconsidered risk free. Corporate debt is also considered to belower risk than the company’s equity. In the event of liquidation,bondholders are ranked above shareholders in the claim oncompany assets. Return of capital: the redemption value of bonds ispre-determined at the time of purchase. Income: the coupon rate of bonds is known before investing andprovides the investor with a reliable income stream. Diversification: a diversified portfolio contains multiple assetclasses and eliminates the concentration risk embedded in asingle asset class portfolio. Benefit from falling interest rates: interest rates can belocked in for a defined period. The inverse relationship betweenbond prices and interest rates allows investors to benefit fromrising bond prices during falling interest rate environments. Speculation: fixed income products provide investors withadditional tolls to speculate on future prices of interest rates.Figure 29: Fixed income exhibits low historical correlation with almost all asset classes potentially providing diversificationbenefits to a portfolioAsset class Global bonds 1 Global equities 2 Global property 3 Cash 4 Emergingmarkets 5 Commodities 6Global bonds 1 1.00 – – – – –Global equities 2 0.08 1.00 – – – –Global property 3 0.14 0.84 1.00 – – –Cash 4 0.03 -0.01 -0.05 1.00 – –Emerging markets 5 0.14 0.84 0.77 -0.01 1.00 –Commodities 6 0.23 0.44 0.40 -0.03 0.50 1.001. FTSE EPRA/NAREIT Developed Net Total Return Index.2. MSCI World Net Total Return Index.3. Barclays Capital Global Aggregate Bond Total Return Index.4. USD LIBOR 3M Total Return Index.5. MSCI Emerging Markets Net Total Return Index.6. Dow Jones-UBS Commodity Total Return Index.Note: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transactioncosts or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. YTD returns reflect US dollarperformance from 2 November 2001 to 29 October 2010.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.Shorting and hedging with ETFs 6ETFs can be sold short to hedge a portfolio of stocks, bonds,commodities or funds. This allows an investor to potentiallypreserve a portfolio while protecting it from overall market losses.In a market decline, profits on an ETF short position could offsetsome of the losses incurred by the portfolio. Options are availableon most ETFs in the United States which can be used for a numberof strategies.Securities lending revenue on ETFs can be attractive for investorswho own ETF shares. The lending revenue that can be earned onETFs, may at times and for some ETFs, more than cover the annualTER. Investors can also use inverse (short) and leverage inverseETFs to implement hedges and short economic exposure.Short interest data is captured for US listed securities on the 15thof each month, or the next business day, and reflects the number ofshares that have yet to be repurchased to give back to lenders. Thehigher the short interest, the more investors are expecting adownturn. Short positions fall in value as stocks rise, and vice versa.The rules on shorting ETFs on financial indices and the use ofinverse and leveraged inverse ETFs on financial indices in thevarious markets are continually being updated as regulators react tomarket conditions and the actions of other regulators – so theposition is quite fluid.There are currently 76 inverse/inverse leveraged ETFs in the USand 103 inverse/inverse leveraged ETFs listed on exchangesoutside the US. Short interest is often considered an indication ofthe level of scepticism in the market.6. With short sales, the investor risks paying more for a security than the investor received from the sale.27 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockCommodities in your portfolioPortfolio diversification: commodity returns have historicallydisplayed low correlation with equities or other asset classes.As equities and other traditional assets perform well, commoditieshave tended to underperform these asset classes. However, asother asset classes decreased in value, commodities havesometimes provided positive returns for investors. Commodities areoften used to help reduce portfolio risk by adding diversification.Potential portfolio protection: historically, commodities are oneof the few asset classes to have benefited from rising inflation.As demand for goods and services increases, prices of those goodsand services usually also rise, as do the prices of the commoditiesused in their production. Because commodity prices tend to rise inperiods of inflation, investing in commodities can potentially providesome portfolio protection against accelerating inflation.Indices are a convenient way to access a group of commodities.Indices can represent the asset class as a whole or a particularsub-sector, such as energy, agriculture or precious metals.Commodity indices differ in the rules used to gain exposure to theasset class. Does the index track futures prices or spot prices? Howoften is the index rebalanced? Are there minimum and maximumweightings for different sectors or individual commodities? Investorsshould be aware of these rules before investing in structuredproducts linked to indices. This section describes the componentsand methodologies of some of the main commodity indices. Someof the key features are outlined below.In addition, commodities have often proved more resilient thanother asset classes to geopolitical and macro-economic shocks.For example, political crises in emerging markets have sometimestripped up stock markets but left the commodity marketrelatively unaffected.Figure 30: S&P GSCI USD TR Index versus MSCI World USD TR300%250%200%150%100%50%0%300%250%200%150%100%50%0%-50%-50%Jan-96 Apr-97 Jul-98 Oct-99 Jan-01 Apr-02 Jul-03 Oct-04 Jan-06 Apr-07 Jul-08 Oct-09 Dec-10S&P GSCI TRMSCI WorldNote: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transactioncosts or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Data as at year end 2010.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 28

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 31: Why include commodities in your portfolio? A long-only passive investment in commodities can provide investors with significant portfolio benefits. Counter cyclical with stocks and bonds.Strategic Diversification. Macro economic hedge against rising growth. Potential for high equity-like returns. Outlook for commodity investment returns can be both cyclically and secularly bullish.Tactical Severe capacity constraints due to lack of infrastructure investment. Significant benefits are expected to come from backwardation in the energy markets.Figure 32: Commodity index performance comparisonIndex # of commodities Weighting method Recomposition frequencyS&P GSCI 24 World production MonthlyRogers International Commodity Index 38 Discretion of committee AnnualThomson Reuters/Jefferies CRB Index 19 Equal weighted within broad sectors IrregularDow Jones UBS Commodity Index 19 Liquidity and production Annual% accumulated US$ total return500%500%450%450%400%400%350%350%300%300%250%250%200%200%150%150%100%100%50%50%0%0%-50%-50%Oct-98 Mar-00 Jul-01 Nov-02 Mar-04 Jul-05 Nov-06 Mar-08 Aug-09 Dec-10S&P GSCI TRThomson Reuters/Jefferies CRB Index TRRogers International Commodity Index TR DJ-UBS Commodity TRNote: Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transactioncosts or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Data as at year end 2010.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg.29 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 33: Types of commodity exposureETFs providing exposure to ‘Commodities’ can be based on different types of underlying investments/vehicles which can lead to significantdifference in performance:Shares Price is based on the exchange traded share price of listed companies. e.g. gold miners, steel product producers, coal miners, companies engaged in agriculture/farming activities. Price is based on the traded price of the physical underlying commodity.Physical commodities The commodity is typically stored in a vault. e.g. gold, silver, platinum, palladium. Price is based on an index level which is derived from underlying futures contracts.Futures Typically used for exposures which cannot be physically stored or represent a basket of commodities. e.g. agriculture, energy, industrial metals, livestock.Source: Global ETF Research and Implementation Strategy Team, BlackRock.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 30

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 34: Commodity index comparisonS&P Goldman SachsCommodity IndexDow Jones UBSCommodity IndexThomson Reuters JefferiesCRB IndexRogers International CommodityIndex (RICI)Energy 66.5%Livestock 4.3%Energy 32.7%Livestock 5.7%Energy 39.0%Livestock 7.0%Energy 44.0%Livestock 3.0%Precious metals 3.4%Industrial metals 8.3%Precious metals 12.9%Industrial metals 17.6%Precious metals 7.0%Industrial metals 13.0%Precious metals 7.1%Industrial metals 14.0%Agriculture 17.4%Agriculture 31.1%Agriculture 34.0%Agriculture 31.9%DJ UBSCommodityIndex(%)ThomsonReutersJefferiesCRB(%)RogersCommodityIndex (RICI)Internat’l(%)Commodity MeasureS&P GSCI(%)Energy 66.5% 32.7% 39.0% 44.0%WTI crude oil $/barrel 34.6% 14.6% 23.0% 21.0%Brent crude oil $/barrel 14.3% - - 14.0%Rbob gasoline $cents/ gallon 4.3% 3.5% 5.0% 3.0%Heating oil $cents/ gallon 4.5% 3.8% 5.0% 1.8%Gasoil $/metric ton 5.5% - - 1.2%Natural gas $/mmBtu 3.2% 10.9% 6.0% 3.0%Livestock 4.3% 5.7% 7.0% 3.0%Live cattle $cents/ pound 2.5% 3.5% 6.0% 2.0%Feeder cattle $cents/ pound 0.4% - - -Lean hogs $cents/ pound 1.4% 2.3% 1.0% 1.0%Precious metals 3.4% 12.9% 7.0% 7.1%Gold $/troy oz 2.9% 9.8% 6.0% 3.0%Silver $/troy oz 0.5% 3.1% 1.0% 2.0%Palladium $/troy oz - - - 0.3%Platinum $/troy oz - - - 1.8%Industrial metals 8.3% 17.6% 13.0% 14.0%Aluminium $/metric ton 2.4% 5.0% 6.0% 4.0%Copper $/metric ton 4.0% 7.5% 6.0% 4.0%Lead $/metric ton 0.5% - - 2.0%Nickel $/metric ton 0.8% 2.4% 1.0% 1.0%Tin $/metric ton - - - 1.0%Zinc $/metric ton 0.6% 2.7% - 2.0%DJ UBSCommodityIndex(%)ThomsonReutersJefferiesCRB(%)RogersCommodityIndex (RICI)Internat’l(%)Commodity MeasureS&P GSCI(%)Agriculture 17.4% 31.1% 34.0% 31.9%Wheat $cents/bushels 3.8% 4.7% 1.0% 4.8%Kansas wheat $cents/bushels 0.8% - - 1.0%Corn $cents/bushels 4.3% 7.4% 6.0% 4.8%Soybeans $cents/bushels 2.7% 7.8% 6.0% 3.4%Soybean oil $cents/pound - 2.9% - 2.0%Soybean meal $/short ton - - - 0.8%Cotton $cents/pound 1.8% 2.3% 5.0% 4.2%Sugar $cents/pound 2.8% 3.6% 5.0% 2.0%Coffee $cents/pound 1.0% 2.4% 5.0% 2.0%Cocoa $/metric ton 0.3% - 5.0% 1.0%Orange juice $cents/pound - - 1.0% 0.6%Rubber JPY/kilogram - - - 1.0%Lumber $/1k board fleet - - - 1.0%Milling wheat $cents/bushels - - - 1.0%Canola CAD/metric ton - - - 0.8%Rice $/cwt - - - 0.8%Oats $cents/bushels - - - 0.5%Rapeseed EUR/metric ton - - - 0.3%Azuki beans JPY/bag - - - 0.2%Greasy wool AUD/kilogram - - - 0.1%Total 100.0% 100.0% 100.0% 100.0%Data as at: Dec-10 Jan-11 Dec-10 Jan-11Source: Global ETF Research and Implementation Strategy Team, BlackRock, S&P, Dow Jones, Jefferies, RICI Handbook 2010.31 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 35: Deciding on which product to use depends on many factorsConsiderations Questions Products Product structure Domicile Country registrations Portfolio holdings Assets Under Management Average daily trading volume ETF provider / manager Transparency Client service Product choice What is my benchmark? What are my regulatory guidelines? What are my mandate constraints? What are my counterparty riskguidelines? What are my tracking riskguidelines? How can I gain long and/orshort exposure? How can securities lendingadd value? What is my time horizon? What are the tax implications? What are my liquidityrequirements? What costs are involved? Portfolio trading ETFs ETNs ETPs Swaps Futures Options Securitised products:certificates, warrants,equity linked notes,local access products LiquiditySource: Global ETF Research and Implementation Strategy Team, BlackRock.Factors to consider when selecting an ETFObjectives: assess your financial goals.Strategy: look for the right ETF to complement your portfolio.Ensure you read the prospectus and other documentation publishedby the ETF provider prior to investing.Risks: the value of your investment may go up or down. Check thespecific risks (i.e. political, economic and currency risks wheninvesting in an ETF providing exposure to an emerging market,country or region) and tax implications.The index: even ETFs with very similar sounding names can bebased on very different constituents. Index providers have differentindex methodologies which will determine the holdings, weights andrebalance frequency, which will result in different risk and rewardcharacteristics. Understanding the index is an important step inthe process.The structure: regulatory changes and innovations in structureshave seen ETPs move beyond the conventional open-ended fundstructure of an ETF. Additionally, open-ended funds can, in manyjurisdictions, embrace the use of swaps and other derivatives, whichmay change the risk characteristics and may limit the product’stransparency compared to traditional physical ETFs, particularly inrelation to the fund’s list of holdings. The size of the ETF in terms ofAUM will often dictate how much certain investors can invest inan ETF.Total costs: the fund’s Total Expense Ratio (TER), not just theManagement Expense Ratio (MER), is a major considerationwhen comparing costs between ETFs. Trading costs, tracking risk,registrations, trading currency, dividend withholding rates andsecurities lending within the fund and lending of the ETF should allbe considered.Liquidity: ETFs afford investors two forms of liquidity. The first isthrough trading the shares on a secondary basis on-exchange. Thesecond is on a primary basis via the unique ‘creation’ process,whereby an AP purchases the underlying basket of securities in thelocal market and deposits the basket ‘in kind’ into the ETF, creatingmore shares in that ETF. The unique creation/redemption processmeans that the liquidity in the ETF is driven by the liquidity in theunderlying securities. Similar indices can have different liquidityprofiles based on their index methodology.ETF provider: the type and amount of information provided ontheir ETFs, index construction and methodology, tax and indexmanagement knowledge, as well as the level and type of supportprovided to investors, intermediaries and brokers varies based onthe size, scale and expertise of the provider.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 32

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockInvestment concernsETFs possess risks related to the securities in their underlyingindices. ETFs are subject to risks applicable to any investment inportfolios of common stocks or bonds, including that of generallylower prices and the chance that they may underperform moreconcentrated or actively managed portfolios. By targetingperformance in line with indices, investors are also foregoingopportunities to outperform.ETFs are subject to ‘tracking error’ risks. Factors such as expenses,imperfect correlation between an ETF’s stocks and those in itsunderlying index and regulatory policies may cause an ETF’s returnto deviate from its underlying index. Six major sources of trackingerror are summarised below:Fees and expenses: expenses of all fund products reduce totalreturn. Although ETFs have the low expense ratios, fees will causean ETF to underperform its index over time.Premiums/discounts: on any date, the closing price of an ETFmay be at a premium or discount to its Net Asset Value (NAV) dueto supply and demand factors. This will affect reported performanceof the ETF versus its index.Dividend reinvestment: some ETFs hold dividends in cash andonly pay them out to investors on a periodic basis. In contrast,some ETFs can reinvest dividends daily. A lag in dividendreinvestment can cause small underperformance in rising markets.Optimised replication: many ETFs use computer optimisationtechniques to design portfolios to closely track the index whileminimising transaction costs. Under this technique, the ETF omitsor underweights some stocks (usually the less liquid or smaller-capstocks). This technique, if properly used, should have only a minoreffect on tracking.Rebalancing: ETFs are required to make changes in thecomposition of their portfolios when stocks are added to or droppedfrom the index. The timing, market impact, and transaction costs ofthe changes can affect performance.Nonconcurrent trading hours: some ETFs trade in the UnitedStates when their underlying markets are closed. For example, theJapanese market is closed while an ETF tracking the Japanesemarket is trading on NYSE Arca. Given increased correlationbetween markets, ETFs based on the Japanese market may appearto be at a premium prior to the start of the trading day in Japanwhen the United States’ market is up in anticipation that theJapanese market will rally. Similarly, on a down day in the UnitedStates, the ETFs on the Japanese market may appear to trade ata discount.Basic ETF structuresETFs have distinctive features. Each ETF is designed to track aspecific index. They provide access to investment styles, assetclasses, markets, and different sectors. They are structured asopen-end funds which are domiciled and registered in manycountries around the world. The assets of ETFs are held bycustodians in a ring fenced structure.Most ETFs purchase the underlying securities in the index with themajority fully replicating their underlying index, many have thecapacity to employ optimisation and sampling techniques. TheseETFs may exclude certain securities and deviate fromtheir benchmark constituent weights, which could lead totracking error.The open-end structure typically allows funds to lend stock, whichmay generate extra income. In addition, these funds can hold othersecurities and financial instruments, including cash and equivalentsand futures. Dividends are typically paid out quarterly, semi-annuallyor annually, although some ETFs do reinvest dividends in the fund.In Europe, a new approach is being used to create funds and ETFswhich utilise a total return swap plus a basket of securities tocomply with the diversification rules under Undertakings forCollective Investments in Transferable Securities (UCITS III) todeliver index performance rather than purchasing the underlyingsecurities in the index.Investors who are expressing concerns over counterparty risk,transparency and liquidity when using structured products, swaps,certificates, and notes are showing a preference for ETFs where thestructure is a fund, and often, more specifically for ETFs whichpurchase the underlying securities in the index.ETFs tend to trade at or close to the NAV of the underlying basketof shares. Arbitrageurs would take advantage of significant premiumor discount relative to the underlying index. An arbitrageur wouldtypically buy or sell the ETF and place an offsetting buy or selltransaction in the underlying basket of component stocks or futures.ETF providers have continued to expand their product ranges inmore specialised areas to cater for the growing number ofprofessional and retail investors using ETFs as advanced portfolioconstruction tools.The increasing availability of these highly-specialised ETFs acrossthe full spectrum of equities, fixed-income and alternativeinvestments now ensures that investors can use ETFs to instantlyreallocate capital to take advantage of new investmentopportunities as market conditions stabilise.Many European investors prefer ETFs that are UCITS funds from aregulatory and dividend withholding point of view. Some Europeaninvestors are only allowed to invest in UCITS funds. For Europeanand Asian investors, dividend withholding may be higher wheninvesting in US listed ETFs as they may suffer dividend withholdingwithin the ETFs as well as on dividends paid out of the ETF.33 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 36: Key tax considerationsExample: iShares MSCI Emerging Markets: European versus United States listed fundsLocal shares(3.01%gross divdends)2.71% Net dividendsEuropean listed ETF(Irish domiciled)2.71%Gross dividends(9.91% withholding(no withholding[blended rate])out of the ETF)Non-United Statesbased investorLocal shares(3.01%gross divdends)2.77% Net dividendsUnited Stateslisted ETF(United states1.94% 1Net dividends(8.06% withholdingdomiciled)(up to 30% 2[blended rate])withholding)Non-United Statesbased investorLocal shares(3.01%Gross divdends)2.77% United Stateslisted ETF2.77%Net dividends(United StatesGross dividends(8.06% withholdingdomiciled)(no withholding[blended rate])out of the ETF)United Statesbased investor1. Maximum rate, lower rate may apply based on local tax treaties with United States.2. Assumes impact of maximum rate.The information given does not constitute tax or legal advice and prospective investors should consult their own professional advisers as to the implications of their subscribing for,purchasing, holding, switching or disposing of shares under the laws of the jurisdiction in which they may be subject to tax. Tax legislation may change.Source: BlackRock, July 2009.Figure 37: New asset classes will continue to squeeze the traditional core of actively managed fundsCAGR, 2008-2012 (%)ETFsPassive products/ETFsPassive fixedLiability-drivenincomeinvestmentsPassiveequityFixed incomeStructuredcore andproductsspecialitiesEquitycore andMoneyspecialitiesmarketInnovative productsInfrastructure fundsCommoditiesAbsolute returnReal estateShort-extension funds(including REITs)Quantitative productsHedge fundsPrivate equityActive productsNet revenue margin (basis points)Estimated size, 2008 ($trillions). Scale = $1 trillionActive Passive InnovativeSource: BCG Global Asset Management 2009, ‘Conquering the Crisis’, July 2009, Projections 2008–2012.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 34

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010NameBarclays (iPath) ETPsBloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProvideriPath VSTOXX Short-Term Futures Total Return ETN VSXX LN VST1MT EUR 89 no n/a n/a $85.1 $0.8 Barclays (iPath)London Stock Exchange VSXG LN VST1MT GB-p 89 no n/a n/a $0.3 Barclays (iPath)iPath VSTOXX Mid-Term Futures Total Return ETN VSYG LN VMT5MT GB-p 89 no n/a n/a $6.1 $0.0 Barclays (iPath)London Stock Exchange VSXY LN VMT5MT EUR 89 no n/a n/a $0.0 Barclays (iPath)iPath S&P 500 VIX Short-Term Futures ETN VXIS LN SPVXSTR GB-p 89 no n/a n/a $4.9 $0.1 Barclays (iPath)iPath S&P 500 VIX Mid-Term Futures ETN VXIM LN SPVXMTR GB-p 89 no n/a n/a $0.6 $0.0 Barclays (iPath)iPath S&P GSCI Agriculture Index Total Return ETN AGGS LN SPGCAGTR GB-p 75 no n/a n/a $0.5 $0.0 Barclays (iPath)iPath S&P GSCI Livestock Index Total Return ETN MOOO LN SPGCLVTR GB-p 75 no n/a n/a $0.4 $0.0 Barclays (iPath)iPath S&P GSCI Industrial Metals Index Total Return IMET LN SPGCINTR GB-p 75 no n/a n/a $0.4 $0.0 Barclays (iPath)iPath S&P GSCI Index Total Return ETN SPGS LN SPGSCITR GB-p 75 no n/a n/a $0.3 $0.0 Barclays (iPath)iPath S&P GSCI Softs Index Total Return ETN SOFT LN SPGCSFTR GB-p 75 no n/a n/a $0.1 $0.0 Barclays (iPath)iPath Dow Jones-UBS Commodity Index Total Return DJUB LN DJUBSTR GB-p 75 no n/a n/a $0.1 $0.0 Barclays (iPath)iPath S&P GSCI Grains Index Total Return ETN SEED LN SPGCGRTR GB-p 75 no n/a n/a $0.1 $0.0 Barclays (iPath)iPath S&P GSCI Precious Metals Index Total Return PMET LN SPGCPMTR GB-p 75 no n/a n/a $0.1 $0.0 Barclays (iPath)iPath S&P GSCI Energy Index Total Return ETN NRGY LN SPGCENTR GB-p 75 no n/a n/a $0.1 $0.0 Barclays (iPath)Commerzbank ETPsComStage ETF DAX TR CBDAX IX DAX EUR 12 III no no $805.2 $0.0 CommerzbankComStage ETF Dow Jones EURO STOXX 50 TR CBSX5T IX SX5T EUR 10 III no no $369.1 $0.0 CommerzbankComStage ETF FTSE 100 TR 8H81 LN TUKXG GB-p 25 III n/a pending $31.9 $0.0 CommerzbankComStage ETF FTSE 250 TR 8H82 LN FTPTT250 GB-p 30 III n/a pending $14.7 $0.0 CommerzbankComStage ETF FTSE All-Share TR 8H80 LN FTPTTALL GB-p 35 III n/a pending $14.6 $0.0 CommerzbankInverseComStage ETF FTSE 100 Short Strategy TR 8H83 LN TUKXIG GB-p 45 III n/a pending $11.6 $0.1 CommerzbankLeveragedComStage ETF FTSE 100 Leveraged TR 8H84 LN TUKXL2G GB-p 45 III n/a pending $16.0 $0.2 CommerzbankCredit Suisse Asset Management ETFsCS ETF (Lux) on MSCI Emerging Markets CM1 LN NDUEEGF GB-p 74 III no yes $1,035.5 $0.1 Credit Suisse AMLondon Stock Exchange CSEM LN NDUEEGF USD 74 III no yes $0.1 Credit Suisse AMCS ETF (Lux) on MSCI EMU Large Cap CEL1 LN MLCLEMUN GB-p 54 III no yes $840.3 $0.0 Credit Suisse AMLondon Stock Exchange CEUL LN MLCLEMUN EUR 54 III no yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Japan Large Cap CJPL LN MLCLJPNN GB-p 48 III no yes $620.1 $0.0 Credit Suisse AMCS ETF (IE) on MSCI EMU CEU LN NDDLEMU EUR 33 III n/a yes $582.0 $0.0 Credit Suisse AMLondon Stock Exchange CEU1 LN NDDLEMU GB-p 33 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Japan CSJP LN NDDLJN GB-p 48 III n/a yes $493.7 $0.1 Credit Suisse AMCS ETF (IE) on iBoxx EUR Govt 1-3 CBE3 LN IBOXXMJN EUR 23 III no yes $373.3 $0.0 Credit Suisse AMLondon Stock Exchange CE31 LN IBOXXMJN GB-p 23 III no yes $0.0 Credit Suisse AMCS ETF (IE) on S&P 500 CSPX LN SPTR500N USD 20 III n/a yes $295.8 $2.1 Credit Suisse AMLondon Stock Exchange CSP1 LN SPTR500N GB-p 20 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI EMU Small Cap CES1 LN NCLDEMU GB-p 58 III no yes $261.2 $0.0 Credit Suisse AMLondon Stock Exchange CEUS LN NCLDEMU EUR 58 III no yes $0.2 Credit Suisse AMCS ETF (Lux) on MSCI EMU Mid Cap CEM1 LN MMDLEMUN GB-p 54 III no yes $228.3 $0.0 Credit Suisse AMLondon Stock Exchange CEUM LN MMDLEMUN EUR 54 III no yes $0.0 Credit Suisse AMCS ETF (IE) on iBoxx EUR Govt 3-7 CE71 LN IBOXXMJP GB-p 23 III no yes $189.8 $0.0 Credit Suisse AMLondon Stock Exchange CBE7 LN IBOXXMJP EUR 23 III no yes $0.0 Credit Suisse AMCS ETF (IE) on EURO STOXX 50 CS51 LN SX5T GB-p 20 III n/a yes $155.4 $0.1 Credit Suisse AMLondon Stock Exchange CSX5 LN SX5T EUR 20 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on Nasdaq 100 CNDX LN NDX USD 33 III n/a yes $152.6 $0.0 Credit Suisse AMLondon Stock Exchange CNX1 LN NDX GB-p 33 III n/a yes $0.1 Credit Suisse AMCS ETF (IE) on MSCI USA Small Cap CUSS LN NCLDUS USD 43 III no yes $137.8 $0.0 Credit Suisse AMLondon Stock Exchange CUS1 LN NCLDUS GB-p 43 III no yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI EM Asia CEMA LN NDUEEGFA USD 65 III n/a yes $127.1 $0.0 Credit Suisse AMLondon Stock Exchange CEA1 LN NDUEEGFA GB-p 65 III n/a yes $0.0 Credit Suisse AMcontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.35 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameCredit Suisse AM ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderCS ETF (IE) on MSCI USA Large Cap CUSL LN MLCLUSAN USD 33 III no yes $114.1 $0.0 Credit Suisse AMLondon Stock Exchange CUL1 LN MLCLUSAN GB-p 33 III no yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI India CSIN LN NDEUSIA USD 75 III n/a yes $106.4 $0.1 Credit Suisse AMLondon Stock Exchange CIN1 LN NDEUSIA GB-p 75 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Canada CSCA LN NDDLCA GB-p 48 III n/a yes $89.3 $0.0 Credit Suisse AMCS ETF (IE) on MSCI UK Large Cap CUKL LN MLCLUKGN GB-p 48 III no yes $77.5 $0.0 Credit Suisse AMCS ETF (IE) on CSI 300 CCSI LN SHSZ300 USD 50 III n/a yes $64.9 $0.1 Credit Suisse AMLondon Stock Exchange CCS1 LN SHSZ300 GB-p 50 III n/a yes $0.1 Credit Suisse AMCS ETF (IE) on iBoxx EUR Inflation Linked CBIE LN IESIILNT EUR 28 III no yes $60.6 $0.0 Credit Suisse AMLondon Stock Exchange CIE1 LN IESIILNT GB-p 28 III no yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI UK CSUK LN NDDLUK GB-p 33 III n/a yes $52.4 $0.0 Credit Suisse AMCS ETF (IE) on MSCI Australia CSAU LN NDDUAS USD 50 III n/a yes $49.3 $0.2 Credit Suisse AMLondon Stock Exchange CAU1 LN NDDUAS GB-p 50 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Russia CSRU LN NDEUSRU USD 65 III n/a yes $48.4 $0.0 Credit Suisse AMLondon Stock Exchange CRU1 LN NDEUSRU GB-p 65 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Chile CSCL LN NDEUSCH USD 65 III n/a yes $44.2 $0.1 Credit Suisse AMLondon Stock Exchange CCL1 LN NDEUSCH GB-p 65 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on iBoxx USD Govt 1-3 CU31 LN ITRR1T3 GB-p 23 III no yes $42.9 $0.0 Credit Suisse AMLondon Stock Exchange CBU3 LN ITRR1T3 USD 23 III no yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Taiwan CSTW LN NDEUSTW USD 65 III n/a yes $42.0 $0.1 Credit Suisse AMLondon Stock Exchange CTW1 LN NDEUSTW GB-p 65 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Korea CSKR LN NDEUSKO USD 65 III n/a yes $41.3 $0.1 Credit Suisse AMLondon Stock Exchange CKR1 LN NDEUSKO GB-p 65 III n/a yes $0.1 Credit Suisse AMCS ETF (IE) on MSCI EM EMEA CEME LN NDDUEMEA USD 65 III n/a yes $40.7 $0.1 Credit Suisse AMLondon Stock Exchange CME1 LN NDDUEMEA GB-p 65 III n/a yes $0.1 Credit Suisse AMCS ETF (IE) on MSCI EM Latin America CML1 LN NDUEEGFL GB-p 65 III n/a yes $39.6 $0.0 Credit Suisse AMLondon Stock Exchange CEML LN NDUEEGFL USD 65 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Japan Small Cap CJPS LN NCLAJN GB-p 58 III no yes $38.6 $0.0 Credit Suisse AMCS ETF (IE) on Nikkei 225 CNKY LN NKY GB-p 48 III n/a yes $37.9 $0.0 Credit Suisse AMCS ETF (IE) on MSCI USA CSUS LN NDDUUS USD 33 III n/a yes $37.5 $0.0 Credit Suisse AMLondon Stock Exchange CU1 LN NDDUUS GB-p 33 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on iBoxx USD Govt 3-7 CU71 LN IULT37TR GB-p 23 III no yes $36.3 $0.0 Credit Suisse AMLondon Stock Exchange CBU7 LN IULT37TR USD 23 III no yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI South Africa CSZA LN NDEUSSA USD 65 III n/a yes $36.1 $0.2 Credit Suisse AMLondon Stock Exchange CZA1 LN NDEUSSA GB-p 65 III n/a yes $0.2 Credit Suisse AMCS ETF (IE) on MSCI Mexico Capped CMX1 LN MSCTMCUN GB-p 65 III n/a yes $35.9 $0.0 Credit Suisse AMLondon Stock Exchange CMXC LN MSCTMCUN USD 65 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Brazil CSBR LN NDUEBRAF USD 75 III n/a yes $33.4 $0.1 Credit Suisse AMLondon Stock Exchange CBR1 LN NDUEBRAF GB-p 75 III n/a yes $0.1 Credit Suisse AMCS ETF (IE) on iBoxx EUR Govt 7-10 CBE0 LN IBOXXMJO EUR 23 III no yes $29.4 $0.0 Credit Suisse AMLondon Stock Exchange CE01 LN IBOXXMJO GB-p 23 III no yes $0.0 Credit Suisse AMCS ETF (IE) on iBoxx USD Inflation Linked CBIU LN BOVNH58T USD 28 III no yes $29.1 $0.0 Credit Suisse AMLondon Stock Exchange CIU1 LN BOVNH58T GB-p 28 III no yes $0.0 Credit Suisse AMCS ETF (IE) on Dow Jones Industrial AverageSM CID1 LN DJINR GB-p 33 III n/a yes $27.6 $0.0 Credit Suisse AMLondon Stock Exchange CIND LN DJINR USD 33 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI UK Small Cap CUKS LN NCLDUK GB-p 58 III no yes $26.9 $0.8 Credit Suisse AMCS ETF (IE) on MSCI Pacific ex Japan CPXJ LN NDDUPXJ USD 48 III n/a yes $26.6 $0.0 Credit Suisse AMLondon Stock Exchange CPJ1 LN NDDUPXJ GB-p 48 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on FTSE MIB CMIB LN TFTMIBE EUR 33 III n/a yes $20.7 $0.0 Credit Suisse AMLondon Stock Exchange CMB1 LN TFTMIBE GB-p 33 III n/a yes $0.0 Credit Suisse AMCS ETF (IE) on MSCI Europe CSE1 LN MSDEE15N GB-p 33 III n/a yes $19.1 $0.0 Credit Suisse AMLondon Stock Exchange CSEU LN MSDEE15N EUR 33 III n/a yes $0.0 Credit Suisse AMcontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 36

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameCredit Suisse AM ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderCS ETF (IE) on FTSE 100 CUKX LN TUKXG GB-p 33 III n/a yes $16.5 $0.1 Credit Suisse AMCS ETF (IE) on iBoxx USD Govt 7-10 CU01 LN ITRR7T10 GB-p 23 III no yes $10.9 $0.0 Credit Suisse AMLondon Stock Exchange CBU0 LN ITRR7T10 USD 23 III no yes $0.0 Credit Suisse AMdb ETC ETPsdb Physical Gold ETC XGLD LN GOLDLNPM USD 29 no n/a n/a $180.2 $0.6 db ETCdb Physical Silver ETC XSIL LN SLVRLN USD 45 no n/a n/a $83.6 $0.2 db ETCdb Uranium ETC XURA LN MBURNXRE USD 150 no n/a n/a $31.3 $0.0 db ETCdb Physical Palladium ETC XPAL LN PLDMLNPM USD 45 no n/a n/a $17.6 $0.0 db ETCdb Physical Platinum ETC XPLA LN PLTMLNPM USD 45 no n/a n/a $12.2 $0.0 db ETCdb S&P GSCI Energy ETC XET8 LN SPGCENTR USD 45 no n/a n/a $7.0 $0.0 db ETCdb S&P GSCI Industrial Metals ETC XET7 LN SPGCINTR USD 45 no n/a n/a $5.3 $0.0 db ETCdb S&P GSCI Agriculture ETC XET6 LN SPGCAGTR USD 45 no n/a n/a $4.9 $0.1 db ETCdb S&P GSCI ETC XET5 LN SPGCCITR USD 45 no n/a n/a $3.7 $0.0 db ETCdb Natural Gas Booster ETC XCT2 LN DBLCNGUN USD 45 no n/a n/a $3.3 $0.1 db ETCdb Energy Booster ETC XCT8 LN DBCMBEUN USD 45 no n/a n/a $2.8 $0.0 db ETCdb Industrial Metals Booster ETC XCT7 LN DBCMBIUN USD 45 no n/a n/a $2.6 $0.1 db ETCdb WTI Crude Oil Booster ETC XCT9 LN DBLCCLUN USD 45 no n/a n/a $1.7 $0.1 db ETCdb Agriculture Booster ETC XCT6 LN DBCMBAUN USD 45 no n/a n/a $1.5 $0.1 db ETCdb Commodity Booster ETC XCT5 LN DBCMBSUN USD 45 no n/a n/a $1.2 $0.0 db ETCdb Mean Reversion ETC XEM8 LN DBCMMRCU USD 45 no n/a n/a $1.1 $0.0 db ETCdb x-trackers ETFsdb x-trackers MSCI Emerging Market TRN Index ETF XMEM LN NDUEEGF GB-p 65 III yes will seek $6,263.3 $4.1 db x-trackersLondon Stock Exchange XMMD LN NDUEEGF USD 65 III yes will seek $3.5 db x-trackersdb x-trackers DAX ETF XDAX IX DAX EUR 15 III yes will seek $3,693.1 $0.2 db x-trackersdb x-trackers Euro Stoxx 50 ETF XESX LN SX5E GB-p 0 III yes will seek $3,013.2 $1.0 db x-trackersChi-X XESX IX SX5E EUR 0 III yes will seek $0.1 db x-trackersdb x-trackers Euro Stoxx 50 ETF XESC LN SX5E GB-p 0 III yes will seek $3,013.2 $0.7 db x-trackersChi-X XESC IX SX5E EUR 0 III yes will seek $0.1 db x-trackersdb x-trackers MSCI World TRN ETF XMWO LN NDDUWI GB-p 45 III yes will seek $2,517.8 $0.4 db x-trackersLondon Stock Exchange XMWD LN NDDUWI USD 45 III yes will seek $1.0 db x-trackersChi-X XMWO IX NDDUWI EUR 45 III yes will seek $0.0 db x-trackersdb x-trackers MSCI USA TRN ETF XMUD LN NDDLUS USD 30 III yes will seek $2,174.3 $1.2 db x-trackersLondon Stock Exchange XMUS LN NDDLUS GB-p 30 III yes will seek $0.2 db x-trackersChi-X XMUS IX NDDLUS EUR 30 III yes will seek $0.0 db x-trackersdb x-trackers II EONIA Total Return Index ETF XEON IX DBDCONIA EUR 15 III no yes $1,971.5 $0.0 db x-trackersLondon Stock Exchange XEO2 LN DBDCONIA GB-p 15 III no yes $0.0 db x-trackersdb x-trackers DBLCI - OY Balanced ETF XDBC LN DBLCTRAE GB-p 55 III yes will seek $1,449.4 $0.3 db x-trackersLondon Stock Exchange XDBD LN DBLCTRAE USD 55 III yes will seek $0.2 db x-trackersLondon Stock Exchange XBCU LN DBLCBUTN USD 55 III yes will seek $0.1 db x-trackersdb x-trackers - db Hedge Fund - 1C (EUR) XHFD LN DBXEHETF USD 90 III yes will seek $1,438.5 $1.1 db x-trackersLondon Stock Exchange XHFG LN DBXEHETE GB-p 90 III yes will seek $0.1 db x-trackersdb x-trackers - DJ STOXX 600 XSX6 LN SXXP GB-p 20 III yes will seek $1,237.7 $0.1 db x-trackersChi-X XSX6 IX SXXP EUR 20 III yes will seek $0.0 db x-trackersdb x-trackers MSCI Europe TRN ETF XMEU LN NDDUE15 GB-p 30 III yes will seek $1,208.7 $0.1 db x-trackersLondon Stock Exchange XMED LN NDDUE15 USD 30 III yes will seek $0.1 db x-trackersdb x-trackers MSCI EM Asia TRN Index XMAS LN NDUEEGFA GB-p 65 III yes will seek $1,050.6 $0.5 db x-trackersLondon Stock Exchange XMAD LN NDUEEGFA USD 65 III yes will seek $0.2 db x-trackersdb x-trackers - MSCI AC Asia ex Japan TRN XAXD LN NDUECAXJ USD 65 III yes will seek $909.5 $0.5 db x-trackersLondon Stock Exchange XAXJ LN NDUECAXJ GB-p 65 III yes will seek $0.3 db x-trackersdb x-trackers II IBOXX Euro Sovereigns Eurozone TR XGLE LN QW1A EUR 15 III no yes $820.4 $0.0 db x-trackersdb x-trackers FTSE 100 ETF XUKX LN UKX GB-p 30 III yes will seek $658.7 $2.6 db x-trackersChi-X XUKX IX UKX EUR 30 III yes will seek $0.0 db x-trackerscontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.37 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)Namedb x-trackers ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)Providerdb x-trackers MSCI EM LATAM TRN INDEX XMLA LN NDUEEGFL GB-p 65 III yes will seek $552.7 $0.2 db x-trackersLondon Stock Exchange XMLD LN NDUEEGFL USD 65 III yes will seek $0.5 db x-trackersdb x-trackers MSCI RUSSIA CAPPED INDEX ETF XMRC LN MXRUC25P GB-p 65 III yes will seek $519.0 $0.3 db x-trackersLondon Stock Exchange XMRD LN MXRUC25P USD 65 III yes will seek $0.2 db x-trackersdb x-trackers MSCI EUROPE SMALL CAP TRN XXSC LN NCEDE15 GB-p 40 III yes will seek $517.5 $0.2 db x-trackersdb x-trackers MSCI Japan TRN ETF XMJP LN NDDUJN GB-p 50 III yes will seek $484.1 $0.2 db x-trackersLondon Stock Exchange XMJD LN NDDUJN USD 50 III yes will seek $0.3 db x-trackersdb x-trackers STOXX Global Select Dividend 100 ETF XGSD LN SDGP GB-p 50 III yes will seek $450.1 $0.1 db x-trackersLondon Stock Exchange XGDD LN SDGP USD 50 III yes will seek $0.1 db x-trackersdb x-trackers S&P CNX NIFTY XNID LN NIFTY USD 85 III yes will seek $423.6 $0.6 db x-trackersdb x-trackers S&P CNX NIFTY XNIF LN NIFTY GB-p 85 III yes will seek $423.6 $0.5 db x-trackersdb x-trackers DJ STOXX 600 Banks XS7R LN SX7R GB-p 30 III yes will seek $405.5 $0.2 db x-trackersdb x-trackers FTSE/XINHUA China 25 XX2D LN TXINOU USD 60 III yes will seek $394.4 $0.3 db x-trackersLondon Stock Exchange XX25 LN TXINOU GB-p 60 III yes will seek $0.3 db x-trackersdb x-trackers MSCI Brazil TRN INDEX XMBR LN NDUEBRAF GB-p 65 III yes will seek $387.1 $0.9 db x-trackersLondon Stock Exchange XMBD LN NDUEBRAF USD 65 III yes will seek $0.7 db x-trackersdb x-trackers Sterling Money Market XGBP LN DBMMSONI GB-p 15 III no will seek $373.1 $0.4 db x-trackersdb x-trackers FTSE VIETNAM XVTD LN FVTTE USD 85 III yes will seek $337.1 $0.6 db x-trackersdb x-trackers FTSE VIETNAM XFVT LN FVTTE GB-p 85 III yes will seek $337.1 $0.8 db x-trackersdb x-trackers MSCI World Telecoms Services XWST LN NDWUTEL USD 45 III n/a pending $309.3 $0.0 db x-trackersLondon Stock Exchange XWTD LN NDWUTEL GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers - MSCI Pacific ex Japan XPXJ LN NDDUPXJ GB-p 45 III yes will seek $301.0 $0.3 db x-trackersLondon Stock Exchange XPXD LN NDDUPXJ USD 45 III yes will seek $0.2 db x-trackersdb x-trackers FTSE All-Share ETF XASX LN ASX GB-p 40 III yes will seek $278.8 $0.7 db x-trackersdb x-trackers MSCI KOREA TRN Index XKS2 LN MXKR GB-p 65 III yes will seek $276.3 $0.3 db x-trackersLondon Stock Exchange XKSD LN MXKR USD 65 III yes will seek $0.3 db x-trackersdb x-trackers CURRENCY RETURNS ETF XCRD LN DBCRUSF USD 35 III pending will seek $246.1 $0.0 db x-trackersLondon Stock Exchange XCRG LN DBCRGBF GB-p 35 III pending will seek $0.1 db x-trackersdb x-trackers - Russell 2000 XRU2 LN RU20N30U GB-p 45 III yes will seek $213.0 $0.1 db x-trackersLondon Stock Exchange XRUD LN RU20N30U USD 45 III yes will seek $0.2 db x-trackersdb x-trackers S&P GLOBAL INFRASTRUCTURE XSGI LN SPGTINTR GB-p 60 III yes will seek $208.8 $0.1 db x-trackersLondon Stock Exchange XGID LN SPGTINTR USD 60 III yes will seek $0.0 db x-trackersdb x-trackers DJ STOXX 600 Basic Resources XSPR LN SXPR GB-p 30 III yes will seek $204.2 $1.0 db x-trackersdb x-trackers MSCI TAIWAN TRN INDEX XMTW LN NDEUSTW GB-p 65 III yes will seek $197.3 $0.1 db x-trackersLondon Stock Exchange XMTD LN NDEUSTW USD 65 III yes will seek $0.2 db x-trackersdb x-trackers S&P/ASX 200 XAUS LN AS51 GB-p 50 III yes will seek $193.1 $0.1 db x-trackersdb x-trackers DJ STOXX 600 Oil & Gas XSER LN SXER GB-p 30 III yes will seek $181.3 $0.6 db x-trackersdb x-trackers DJ STOXX 600 Health Care XSDR LN SXDR GB-p 30 III yes will seek $151.4 $0.1 db x-trackersdb x-trackers DJ EURO STOXX Select Dividend 30 XD3E LN SDGP GB-p 30 III yes will seek $145.8 $0.1 db x-trackersdb x-trackers MSCI EM EMEA TRN INDEX XMEA LN NDDUEMEA GB-p 65 III yes will seek $144.5 $0.1 db x-trackersLondon Stock Exchange XMXD LN NDDUEMEA USD 65 III yes will seek $0.0 db x-trackersdb x-trackers LPX MM PRIVATE EQUITY ETF XLPE LN LPXMMITR GB-p 70 III yes will seek $138.8 $0.1 db x-trackersdb x-trackers FTSE EPRA/NAREIT Dev EurReal EstateXDER LN NEPRA GB-p 40 III pending will seek$130.5 $0.1db x-trackersdb x-trackers DJ STOXX 600 Telecommunications XSKR LN SXKR GB-p 30 III yes will seek $105.4 $0.1 db x-trackersdb x-trackers DJ STOXX 600 Industrial Goods XSNR LN SXNR GB-p 30 III yes will seek $102.4 $0.2 db x-trackersdb x-trackers S&P 500 ETF XSPX LN SPTR500N GB-p 20 III pending will seek $92.0 $0.1 db x-trackersLondon Stock Exchange XSPU LN SPTR500N USD 20 III pending will seek $0.9 db x-trackersdb x-trackers MSCI Indonesia TRN Index ETF XMID LN NDEUINF GB-p 65 III pending will seek $88.4 $0.8 db x-trackersdb x-trackers DJ STOXX 600 Utilities XS6R LN SX6R GB-p 30 III yes will seek $85.8 $0.2 db x-trackersdb x-trackers S&P SELECT FRONTIER XSFR LN SPSFN GB-p 95 III yes will seek $75.4 $0.1 db x-trackersLondon Stock Exchange XSFD LN SPSFN USD 95 III yes will seek $0.1 db x-trackerscontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 38

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)Namedb x-trackers ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)Providerdb x-trackers MSCI Canada TRN Index ETF XCAN LN NDDUCA GB-p 35 III pending will seek $68.8 $0.1 db x-trackersLondon Stock Exchange XCAD LN NDDUCA USD 35 III pending will seek $0.2 db x-trackersdb x-trackers FTSE 250 ETF XMCX LN MCX GB-p 35 III yes will seek $65.0 $0.3 db x-trackersdb x-trackers FTSE ALL-WORLD EX UK XWXU LN FTS6WXUK GB-p 40 III yes will seek $52.2 $0.3 db x-trackersdb x-trackers DJ STOXX 600 Technology XS8R LN SX8R GB-p 30 III yes will seek $50.6 $0.1 db x-trackersdb x-trackers US Dollar Money Market XUSD LN DBMMFED1 USD 15 III no will seek $49.8 $0.1 db x-trackersdb x-trackers US Dollar Money Market XUSD IX DBMMFED1 USD 15 III no will seek $49.8 $0.0 db x-trackersdb x-trackers MSCI EUROPE MID CAP TRN XEUM LN MMDUEURN GB-p 40 III yes will seek $44.3 $0.5 db x-trackersdb x-trackers DJ STOXX 600 Food & Beverage XS3R LN SX3R GB-p 30 III yes will seek $43.4 $0.0 db x-trackersdb x-trackers DJ STOXX 600 Insurance XSIR LN SXIR GB-p 30 III yes will seek $36.6 $0.1 db x-trackersdb x-trackers MSCI Thailand TRN Index ETF XCX4 LN NDEUTHF GB-p 50 III pending will seek $35.6 $0.0 db x-trackersdb x-trackers MSCI Thailand TRN Index ETF XCS4 LN NDEUTHF USD 50 III pending will seek $35.6 $0.0 db x-trackersdb x-trackers iBOXX $ Treasuries TR Index XUTD LN ITRROV USD 15 III no yes $34.4 $0.4 db x-trackersdb x-trackers USD IG Inflation Linked TreasuriesTR XUIT LN DBLNUSD USD 20 III no yes $26.9 $0.0 db x-trackersdb x-trackers MSCI China TRN Index ETF XCX6 LN NDEUCHF GB-p 65 III pending will seek $16.0 $0.1 db x-trackersdb x-trackers MSCI China TRN Index ETF XCS6 LN NDEUCHF USD 65 III pending will seek $16.0 $0.1 db x-trackersdb x-trackers MSCI Mexico TRN Index ETF XMEX LN NDEUMXF GB-p 65 III pending will seek $13.1 $0.1 db x-trackersLondon Stock Exchange XMES LN NDEUMXF USD 65 III pending will seek $0.1 db x-trackersdb x-trackers iBOXX £ Gilts TR Index XBUT LN GB-p 20 III no yes $9.7 $0.0 db x-trackersdb x-trackers MSCI India TRN Index ETF XCS5 LN NDEUSIA USD 75 III pending will seek $9.0 $0.0 db x-trackersdb x-trackers S&P 500 SHARIAH XSHU LN SHX GB-p 50 III yes will seek $7.8 $0.0 db x-trackersdb x-trackers S&P U.S. Carbon Efficient ETF XGRD LN SPGRCUUN USD 50 III yes will seek $7.3 $0.0 db x-trackersLondon Stock Exchange XGRC LN SPGRCUUN GB-p 50 III yes will seek $0.0 db x-trackersdb x-trackers MSCI Malaysia TRN Index ETF XCS3 LN NDDUMAF USD 50 III pending will seek $7.3 $0.0 db x-trackersLondon Stock Exchange XCX3 LN NDDUMAF GB-p 50 III pending will seek $0.0 db x-trackersdb x-trackers S&P JAPAN 500 SHARIAH XSHJ LN SPSHJT GB-p 50 III yes will seek $6.7 $0.0 db x-trackersdb x-trackers MSCI World Energy TRN Index ETF XWED LN NDWUENRG EUR 45 III n/a pending $6.2 $0.0 db x-trackersLondon Stock Exchange XWSE LN NDWUENRG GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers S&P EUROPE 350 SHARIAH XSHE LN SPE GB-p 50 III yes will seek $5.7 $0.0 db x-trackersdb x-trackers iBOXX UK Gilt Inflation-Linked TR Index XBUI LN GB-p 20 III no yes $5.6 $0.0 db x-trackersdb x-trackers MSCI World Materials TRN Index ETF XWMD LN NDWUMATL USD 45 III n/a pending $5.1 $0.0 db x-trackersLondon Stock Exchange XWSM LN NDWUMATL GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers MSCI World Industrials TRN Index ETF XWID LN NDWUIND USD 45 III n/a pending $5.1 $0.0 db x-trackersLondon Stock Exchange XWSI LN NDWUIND GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers MSCI World Health Care TRN Index ETF XWHD LN NDWUHC USD 45 III n/a pending $4.9 $0.0 db x-trackersLondon Stock Exchange XWSH LN NDWUHC GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers iBOXX $ Treasuries 1-3 TR Index XUT3 LN ITRR1T3 USD 15 III no yes $4.9 $0.0 db x-trackersdb x-trackers MSCI World Financials TRN Index ETF XWFD LN NDWUFNCL USD 45 III n/a pending $4.8 $0.0 db x-trackersLondon Stock Exchange XWSF LN NDWUFNCL GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers MSCI World Utilities TRN Index ETF XWSU LN NDWUUTIL GB-p 45 III n/a pending $4.8 $0.0 db x-trackersLondon Stock Exchange XWUT LN NDWUUTIL USD 45 III n/a pending $0.0 db x-trackersdb x-trackers MSCI World Information Tech TRN XWND LN NDWUIT USD 45 III n/a pending $4.8 $0.0 db x-trackersLondon Stock Exchange XWSN LN NDWUIT GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers MSCI World Consumer Staples TRN XWSD LN NDWUCSTA USD 45 III n/a pending $4.8 $0.0 db x-trackersLondon Stock Exchange XWSS LN NDWUCSTA GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers MSCI World Consumer Discretionary XWCD LN NDWUCDIS USD 45 III n/a pending $4.7 $0.0 db x-trackersLondon Stock Exchange XWSC LN NDWUCDIS GB-p 45 III n/a pending $0.0 db x-trackersdb x-trackers DJ ISLAMIC MARKET TITANS 100 XIMT LN IMXLT GB-p 50 III yes will seek $4.5 $0.0 db x-trackersdb x-trackers FTSE EPRA/NAREIT Eurozone RealEstate ETFLeveraged inverseXREU LN NEPEU GB-p 35 III pending will seek$1.3 $0.0db x-trackersdb x-trackers Euro Stoxx 50 Double Short Daily ETF XEDS LN SX5T2S GB-p 50 III pending will seek $16.4 $0.2 db x-trackerscontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.39 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)Namedb x-trackers ETFs (continued)Leveraged inverse (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)Providerdb x-trackers ShortDAX 2x Daily ETF XSD2 LN SHORTDAX GB-p 60 III pending will seek $10.7 $0.0 db x-trackersdb x-trackers S&P 500 2x Inverse Daily ETF XT21 LN SPXT2IUT GB-p 70 III pending will seek $8.9 $0.0 db x-trackersLondon Stock Exchange XT2D LN SPXT2IUT USD 70 III pending will seek $0.1 db x-trackersInversedb x-trackers ShortDAX Daily ETF XSDX LN SHORTDAX GB-p 40 III yes will seek $599.0 $1.5 db x-trackersChi-X XSDX IX SHORTDAX EUR 40 III yes will seek $0.1 db x-trackersdb x-trackers EURO STOXX 50 Short Daily ETF XSSX LN SX5TS GB-p 40 III yes will seek $391.2 $0.7 db x-trackersdb x-trackers DJ STOXX 600 BANKS SHORT XS7S LN SX7RS GB-p 50 III yes will seek $332.5 $0.2 db x-trackersdb x-trackers S&P 500 Inverse Daily ETF XSPS LN SPXTS GB-p 50 III yes will seek $193.4 $0.4 db x-trackersLondon Stock Exchange XSPD LN SPXTS USD 50 III yes will seek $1.6 db x-trackersdb x-trackers FTSE 100 SHORT XUKS IX UKX EUR 50 III yes will seek $124.6 $0.1 db x-trackersdb x-trackers FTSE 100 SHORT XUKS LN UKX GB-p 50 III yes will seek $124.6 $1.5 db x-trackersdb x-trackers HIS Short Index ETF XHSD LN HSISI USD 75 III yes will seek $20.9 $0.1 db x-trackersdb x-trackers CAC40 Short XC4S LN CACSH GB-p 40 III yes will seek $17.7 $0.0 db x-trackersdb x-trackers DJ STOXX 600 OIL & GAS SHORT XSES LN SXERS GB-p 50 III yes will seek $9.9 $0.1 db x-trackersdb x-trackers II US Treasuries Short Daily ETF XUTS LN DBUSSHRT USD 25 III n/a yes $8.3 $0.1 db x-trackersdb x-trackers DJ STOXX 600 Insurance Short Daily XSIS LN SXPRS GB-p 50 III yes will seek $7.3 $0.1 db x-trackersdb x-trackers II UK Gilts Short Daily ETF XUGS LN DBGBSHRT GB-p 25 III n/a yes $7.1 $0.2 db x-trackersdb x-trackers MSCI Emerging Market Short Daily XEMD LN MXEMSHRT USD 95 III n/a pending $4.9 $0.0 db x-trackersLondon Stock Exchange XESG LN MXEMSHRT GB-p 95 III n/a pending $0.0 db x-trackersdb x-trackers DJ STOXX 600 TECHNOLOGY SHORT XS8S LN SX8RS GB-p 50 III yes will seek $4.0 $0.1 db x-trackersdb x-trackers DJ STOXX 600 TELECOMS SHORT XSKS LN SXKRS GB-p 50 III yes will seek $3.5 $0.0 db x-trackersdb x-trackers DJ STOXX 600 Basic Resources Short XBRS LN SXPRS GB-p 50 III yes will seek $3.5 $0.0 db x-trackersdb x-trackers DJ STOXX 600 HEALTH CARE SHORT XSDS LN SXDRS GB-p 50 III yes will seek $3.5 $0.0 db x-trackersdb x-trackers DJ STOXX 600 Industrial Goods Short XIGS LN SXNRS GB-p 50 III yes will seek $2.6 $0.1 db x-trackersdb x-trackers DJ STOXX 600 Utilities Short Daily ETF XS6S LN SX6RS GB-p 50 III yes will seek $1.2 $0.0 db x-trackersLeverageddb x-trackers LevDAX Daily ETF XLDX LN LEVDAX GB-p 35 III pending will seek $21.4 $0.1 db x-trackersdb x-trackers S&P 500 2x Leveraged Daily ETF XSL2 LN SPXT2LUN GB-p 60 III pending will seek $8.3 $0.0 db x-trackersLondon Stock Exchange XS2D LN SPXT2LUN USD 60 III pending will seek $0.0 db x-trackersdb x-trackers EURO STOXX 50 Leveraged Daily ETF XEL2 LN SX5EL GB-p 35 III pending will seek $6.3 $0.1 db x-trackersdb x-trackers FTSE 100 Leveraged Daily ETF XUL2 LN TUKXL2G GB-p 50 III pending will seek $2.1 $0.0 db x-trackersETF Securities ETFsETFX DJ-UBS All Commodities Forward 3 Month Fund COMF LN DJUBSF3T USD 55 III n/a pending $101.4 $4.3 ETF SecuritiesLondon Stock Exchange CMFP LN DJUBSF3T GB-p 55 III n/a pending $5.8 ETF SecuritiesETFX DAX Global Gold Fund AUCP LN DXGOLDUT GB-p 65 III yes yes $77.6 $0.3 ETF SecuritiesLondon Stock Exchange AUCO LN DXGOLDUT USD 65 III yes yes $0.2 ETF SecuritiesETFX WNA Global Nuclear Energy Fund NUKE LN WNAIT USD 65 III yes yes $61.9 $0.1 ETF SecuritiesLondon Stock Exchange NUKP LN WNAIT GB-p 65 III yes yes $0.1 ETF SecuritiesETFX S-Net ITG Global Agri Business Fund AGRI LN AGRIT USD 65 III yes yes $41.6 $0.1 ETF SecuritiesLondon Stock Exchange AGRP LN AGRIT GB-p 65 III yes yes $0.1 ETF SecuritiesETFX Russell 2000 Fund RTWP LN RU20N30U GB-p 45 III yes yes $41.6 $0.0 ETF SecuritiesLondon Stock Exchange RTWO LN RU20N30U USD 45 III yes yes $0.1 ETF SecuritiesETFX DAX Global Shipping Large Cap Fund SHIP LN DXSHIPUT USD 65 III yes yes $34.5 $0.0 ETF SecuritiesLondon Stock Exchange SHPP LN DXSHIPUT GB-p 65 III yes yes $0.0 ETF SecuritiesETFX Dow Jones STOXX 600 Basic Resources Fund BASR LN SXPR EUR 30 III yes yes $23.9 $0.4 ETF SecuritiesLondon Stock Exchange BASP LN SXPR GB-p 30 III yes yes $0.1 ETF SecuritiesETFX DAXglobal Alternative Energy Fund ALTE LN DXAE EUR 65 III yes yes $18.3 $0.0 ETF SecuritiesLondon Stock Exchange ALTP LN DXAE GB-p 65 III yes yes $0.0 ETF SecuritiesETFX DAX Global Coal Fund COAL LN DXCOALUT USD 65 III yes yes $15.6 $0.3 ETF SecuritiesLondon Stock Exchange COAP LN DXCOALUT GB-p 65 III yes yes $0.0 ETF Securitiescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 40

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameETF Securities ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderETFX Dow Jones STOXX 600 Oil and Gas Fund OILG LN SXER EUR 30 III yes yes $13.2 $0.0 ETF SecuritiesLondon Stock Exchange OILS LN SXER GB-p 30 III yes yes $0.0 ETF SecuritiesETFX Dow Jones STOXX 600 Utilities Fund UTIL LN SX6R EUR 30 III yes yes $11.5 $0.0 ETF SecuritiesLondon Stock Exchange UTIP LN SX6R GB-p 30 III yes yes $0.0 ETF SecuritiesETFX Janney Global Water Fund WATE LN JGITR USD 65 III yes yes $9.2 $0.0 ETF SecuritiesLondon Stock Exchange WATP LN JGITR GB-p 65 III yes yes $0.0 ETF SecuritiesETFX DAX Global Steel Large Cap Fund STEP LN DXSTEEUT GB-p 65 III yes yes $8.6 $0.0 ETF SecuritiesLondon Stock Exchange STEE LN DXSTEEUT USD 65 III yes yes $0.0 ETF SecuritiesETFX Russell 1000 Fund RONE LN RU10N30U USD 35 III yes yes $4.6 $0.0 ETF SecuritiesLondon Stock Exchange RONP LN RU10N30U GB-p 35 III yes yes $0.0 ETF SecuritiesLeveraged inverseETFX DAX 2x Short Fund DES2 LN SHRTDAX2 EUR 60 III yes yes $58.1 $0.1 ETF SecuritiesLondon Stock Exchange DS2P LN SHRTDAX2 GB-p 60 III yes yes $0.3 ETF SecuritiesETFX FTSE 100 Super Short Strategy (2x) Fund SUK2 LN TUKXI2G GB-p 60 III yes yes $34.0 $2.1 ETF SecuritiesETFX Dow Jones EURO STOXX 50 Double Short (2x) SEU2 LN SX5T2S EUR 60 III yes yes $24.0 $0.3 ETF SecuritiesLondon Stock Exchange SE2P LN SX5T2S GB-p 60 III yes yes $0.1 ETF SecuritiesInverseETFX DAX 2x Long Fund DEL2 LN LEVDAX EUR 40 III yes yes $44.3 $0.3 ETF SecuritiesLondon Stock Exchange DL2P LN LEVDAX GB-p 40 III yes yes $0.2 ETF SecuritiesETFX FTSE 100 Leveraged (2x) Fund LUK2 LN UKXL2G GB-p 50 III yes yes $26.4 $2.5 ETF SecuritiesETFX Dow Jones EURO STOXX 50 Leveraged (2x) LEU2 LN SX5EL EUR 40 III yes yes $17.3 $0.3 ETF SecuritiesLondon Stock Exchange LE2P LN SX5EL GB-p 40 III yes yes $0.2 ETF SecuritiesETF Securities ETPsETFS Physical Gold PHAU LN GOLDLNPM USD 39* no n/a yes $5,962.5 $40.2 ETF SecuritiesLondon Stock Exchange PHGP LN GOLDLNPM GB-p 39* no n/a yes $2.4 ETF SecuritiesChi-X PHAU IX GOLDLNPM USD 39* no n/a yes $0.9 ETF SecuritiesChi-X PHGP IX GOLDLNPM GB-p 39* no n/a yes $0.0 ETF SecuritiesTurquoise PHAU TQ GOLDLNPM USD 39* no n/a yes $0.0 ETF SecuritiesTurquoise PHGP TQ GOLDLNPM GB-p 39* no n/a yes $0.0 ETF SecuritiesGBS Bullion Securities GBS LN GOLDS USD 40 no n/a yes $5,566.8 $17.8 ETF SecuritiesLondon Stock Exchange GBSS LN GOLDS GB-p 40 no n/a yes $0.8 ETF SecuritiesChi-X GBS IX GOLDS USD 40 no n/a yes $0.7 ETF SecuritiesChi-X GBSS IX GB-p 40 no n/a yes $0.1 ETF SecuritiesETFS Agriculture DJ-UBSCI AIGA LN DJUBAGTR USD 54 no n/a yes $1,204.0 $4.3 ETF SecuritiesLondon Stock Exchange AGAP LN DJUBAGTR GB-p 54 no n/a yes $0.4 ETF SecuritiesETFS Physical Silver PHAG LN SLVRLN USD 49* no n/a yes $856.0 $5.8 ETF SecuritiesLondon Stock Exchange PHSP LN SLVRLN GB-p 49* no n/a yes $1.1 ETF SecuritiesChi-X PHAG IX SLVRLN USD 49* no n/a yes $0.1 ETF SecuritiesChi-X PHSP IX SLVRLN GB-p 49* no n/a yes $0.0 ETF SecuritiesTurquoise PHAG TQ SLVRLN USD 49* no n/a yes $0.0 ETF SecuritiesETFS All Commodities DJ-UBSCISM AIGC LN DJUBSTR USD 54 no n/a yes $774.8 $5.0 ETF SecuritiesLondon Stock Exchange AGCP LN DJUBSTR GB-p 54 no n/a yes $0.1 ETF SecuritiesETFS Physical Platinum PHPT LN PLTMLNPM USD 49* no n/a yes $673.1 $5.5 ETF SecuritiesETFS Natural Gas NGAS LN DJUBNGTR USD 54 no n/a yes $584.4 $1.5 ETF SecuritiesLondon Stock Exchange NGSP LN DJUBNGTR GB-p 54 no n/a yes $0.1 ETF SecuritiesChi-X NGAS IX DJUBNGTR USD 54 no n/a yes $0.0 ETF SecuritiesETFS Crude Oil CRUD LN DJUBCLTR USD 54 no n/a yes $498.6 $4.5 ETF SecuritiesChi-X CRUD IX DJUBCLTR USD 54 no n/a yes $0.0 ETF SecuritiesETFS Physical Palladium PHPD LN PLDMLNPM USD 49* no n/a yes $421.8 $5.6 ETF SecuritiesETFS Physical PM Basket PHPM LN USD 43* no n/a yes $341.8 $5.2 ETF SecuritiesLondon Stock Exchange PHPP LN GB-p 43* no n/a yes $0.4 ETF SecuritiesETFS Industrial Metals DJ-UBSCISM AIGI LN DJUBINTR USD 54 no n/a yes $296.8 $0.7 ETF Securitiescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.41 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameETF Securities ETPs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderETFS Brent 1mth OILB LN USD 49 no n/a yes $291.9 $1.8 ETF SecuritiesLondon Stock Exchange OLBP LN GB-p 49 no n/a yes $0.5 ETF SecuritiesETFS Copper COPA LN DJUBHGTR USD 54 no n/a yes $238.4 $3.9 ETF SecuritiesETFS Precious Metals DJ-UBSCISM AIGP LN DJUBPRTR USD 54 no n/a yes $219.2 $0.6 ETF SecuritiesETFS Energy DJ-UBSCISM AIGE LN DJUBENTR USD 54 no n/a yes $202.6 $0.2 ETF SecuritiesETFS Physical Swiss Gold SGBS LN GOLDLNPM USD 39* no n/a yes $185.5 $1.9 ETF SecuritiesETFS Gold BULL LN DJUBGCTR USD 54 no n/a yes $181.0 $1.2 ETF SecuritiesLondon Stock Exchange BULP LN DJUBGCTR GB-p 54 no n/a yes $0.4 ETF SecuritiesETFS WTI Oil OILW LN USD 49* no n/a yes $130.1 $3.7 ETF SecuritiesLondon Stock Exchange OLWP LN GB-p 49* no n/a yes $0.0 ETF SecuritiesETFS Wheat WEAT LN DJUBWHTR USD 54 no n/a yes $126.4 $1.4 ETF SecuritiesETFS Corn CORN LN DJUBCNTR USD 54 no n/a yes $106.2 $2.0 ETF SecuritiesETFS Silver SLVR LN DJUBSITR USD 54 no n/a yes $91.1 $2.0 ETF SecuritiesETFS Grains DJ-UBSCISM AIGG LN DJUBGRTR USD 54 no n/a yes $79.8 $0.9 ETF SecuritiesLondon Stock Exchange AGGP LN DJUBGRTR GB-p 54 no n/a yes $0.2 ETF SecuritiesETFS Nickel NICK LN DJUBNITR USD 54 no n/a yes $63.1 $0.1 ETF SecuritiesETFS Forward Agriculture DJ-UBSCI-F3SM FAGR LN DJUBAG3T USD 54 no n/a yes $56.2 $0.2 ETF SecuritiesETFS Aluminium ALUM LN DJUBALTR USD 54 no n/a yes $52.6 $0.3 ETF SecuritiesETFS Sugar SUGA LN DJUBSBTR USD 54 no n/a yes $45.4 $0.6 ETF SecuritiesETFS Forward Energy DJ-UBSCI-F3SM ENEF LN DJUBZS3T USD 54 no n/a yes $43.2 $0.0 ETF SecuritiesETFS Soybeans SOYB LN DJUBSYTR USD 54 no n/a yes $38.8 $0.6 ETF SecuritiesETFS Livestock DJ-UBSCISM AIGL LN DJUBLITR USD 54 no n/a yes $38.8 $0.1 ETF SecuritiesETFS Forward Industrial Metals DJ-UBSCI-F3SM FIND LN DJUBIN3T USD 54 no n/a yes $37.6 $0.1 ETF SecuritiesETFS Cotton COTN LN DJUBCTTR USD 54 no n/a yes $31.9 $0.5 ETF SecuritiesETFS Zinc ZINC LN DJUBZSTR USD 54 no n/a yes $29.5 $0.3 ETF SecuritiesETFS Ex-Energy DJ-UBSCISM AIGX LN DJUBXETR USD 54 no n/a yes $28.4 $0.0 ETF SecuritiesETFS Softs DJ-UBSCISM AIGS LN DJUBSOTR USD 54 no n/a yes $27.1 $0.1 ETF SecuritiesETFS Lean Hogs HOGS LN DJUBLHTR USD 54 no n/a yes $24.9 $0.2 ETF SecuritiesETFS Forward Grains DJ-UBSCI-F3SM GRAF LN DJUBGR3T USD 54 no n/a yes $23.2 $0.0 ETF SecuritiesETFS Forward All Commodities DJ-UBSCI-F3SM FAIG LN DJUBSF3 USD 54 no n/a yes $22.0 $0.1 ETF SecuritiesETFS Cocoa COCO LN USD 49 no n/a yes $19.7 $1.3 ETF SecuritiesETFS Coffee COFF LN DJUBKCTR USD 54 no n/a yes $19.3 $0.2 ETF SecuritiesETFS Petroleum DJ-UBSCISM AIGO LN DJUBPETR USD 54 no n/a yes $19.3 $0.0 ETF SecuritiesETFS Forward Natural Gas NGAF LN DJUBNG3T USD 54 no n/a yes $17.2 $0.0 ETF SecuritiesETFS Live Cattle CATL LN DJUBLCTR USD 54 no n/a yes $15.6 $0.0 ETF SecuritiesETFS Brent 1yr OSB1 LN USD 49 no n/a yes $14.5 $0.0 ETF SecuritiesETFS Heating Oil HEAT LN DJUBHOTR USD 54 no n/a yes $13.8 $0.2 ETF SecuritiesETFS Physical Copper PHCU LN LMCADY USD 69 no n/a will seek $13.8 $1.0 ETF SecuritiesETFS Forward Petroleum DJ-UBSCI-F3SM FPET LN DJUBPE3T USD 54 no n/a yes $13.1 $0.0 ETF SecuritiesETFS Gasoline UGAS LN DJUBRBTR USD 54 no n/a yes $11.9 $0.2 ETF SecuritiesETFS Soybean Oil SOYO LN DJUBBOTR USD 54 no n/a yes $10.5 $0.1 ETF SecuritiesETFS Forward Softs DJ-UBSCI-F3S SOFF LN DJUBSO3T USD 54 no n/a yes $9.6 $0.0 ETF SecuritiesETFS Physical Nickel PHNI LN USD 69 no n/a will seek $9.6 $0.8 ETF SecuritiesETFS WTI 1yr OSW1 LN USD 49* no n/a yes $6.8 $0.2 ETF SecuritiesETFS Forward Crude Oil FCRU LN USD 49 no n/a yes $4.1 $0.0 ETF SecuritiesETFS WTI 3yr OSW3 LN USD 49* no n/a yes $3.9 $0.1 ETF SecuritiesETFS Brent 3yr OSB3 LN USD 49 no n/a yes $3.7 $0.0 ETF SecuritiesETFS Long CNY Short USD LCNY LN MSCECNYL USD 59 no n/a pending $3.4 $0.0 ETF SecuritiesLondon Stock Exchange LCNP LN MSCECNYL GB-p 59 no n/a pending $0.0 ETF SecuritiesETFS Platinum PLTT LN USD 49 no n/a yes $2.9 $0.0 ETF SecuritiesETFS Brent 2yr OSB2 LN USD 49 no n/a yes $2.8 $0.0 ETF SecuritiesETFS Forward Ex-Energy DJ-UBSCI-F3SM EXEF LN DJUBXE3T USD 54 no n/a yes $2.6 $0.0 ETF Securitiescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 42

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameETF Securities ETPs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderETFS Physical Tin PHSN LN LMSNDY USD 69 no n/a will seek $2.1 $0.0 ETF SecuritiesETFS WTI 2yr OSW2 LN USD 49* no n/a yes $2.0 $0.0 ETF SecuritiesETFS Forward Livestock DJ-UBSCI-F3SM FLIV LN DJUBLI3T USD 54 no n/a yes $2.0 $0.0 ETF SecuritiesETFS Tin TINM LN USD 49 no n/a yes $1.8 $0.0 ETF SecuritiesETFS Long NOK Short USD LNOK LN MSCENOKL USD 39 no n/a yes $1.7 $0.0 ETF SecuritiesChi-X IXOC IX MSCENOKL USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise LNOK TQ MSCENOKL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange NOKP LN MSCENOKL GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X NOKP IX MSCENOKL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise NOKP TQ MSCENOKL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Long CHF Short GBP GBCH LN MSCEGHL GB-p 39 no n/a pending $1.6 $0.1 ETF SecuritiesETFS Long CHF Short USD LCHF LN MSCECHFL USD 39 no n/a yes $1.3 $0.0 ETF SecuritiesChi-X LCHF IX MSCECHFL USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise LCHF TQ MSCECHFL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange CHFP LN MSCECHFL GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X CHFP IX MSCECHFL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise CHFP TQ MSCECHFL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Long AUD Short USD LAUD LN MSCEAUDL USD 39 no n/a yes $1.2 $0.1 ETF SecuritiesChi-X LAUD IX MSCEAUDL USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise LAUD TQ MSCEAUDL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange AUDP LN MSCEAUDL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise AUDP TQ MSCEAUDL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Carbon CARB LN EUR 49 no n/a yes $1.1 $0.0 ETF SecuritiesLondon Stock Exchange CARP LN GB-p 49 no n/a yes $0.0 ETF SecuritiesETFS Long CAD Short USD LCAD LN MSCECADL USD 39 no n/a yes $1.0 $0.0 ETF SecuritiesChi-X LCAD IX MSCECADL USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise LCAD TQ MSCECADL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange CADP LN MSCECADL GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X CADP IX MSCECADL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise CADP TQ MSCECADL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Forward Live Cattle CATF LN DJUBLC3T USD 54 no n/a yes $1.0 $0.0 ETF SecuritiesETFS Lead LEED LN USD 49 no n/a yes $0.8 $0.0 ETF SecuritiesETFS Long GBP Short USD LGBP LN MSCEGBPL USD 39 no n/a yes $0.8 $0.0 ETF SecuritiesChi-X LGBP IX MSCEGBPL USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise LGBP TQ MSCEGBPL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange GBPP LN MSCEGBPL GB-p 39 no n/a yes $0.1 ETF SecuritiesChi-X GBPP IX MSCEGBPL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise GBPP TQ MSCEGBPL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Forward Lean Hogs HOGF LN DJUBLH3T USD 54 no n/a yes $0.8 $0.0 ETF SecuritiesETFS Long EUR Short USD LEUR LN MSCEEURL USD 39 no n/a yes $0.8 $0.0 ETF SecuritiesChi-X LEUR IX MSCEEURL USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise LEUR TQ MSCEEURL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange EURP LN MSCEEURL GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X EURP IX MSCEEURL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise EURP TQ MSCEEURL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Long USD Short GBP GBUS LN MSCEGUL GB-p 39 no n/a pending $0.7 $0.0 ETF SecuritiesETFS Forward Heating Oil HEAF LN DJUBHO3T USD 54 no n/a yes $0.6 $0.0 ETF SecuritiesETFS Long INR Short USD LINR LN MSCEINRL USD 59 no n/a pending $0.6 $0.0 ETF SecuritiesLondon Stock Exchange LINP LN MSCEINRL GB-p 59 no n/a pending $0.0 ETF SecuritiesETFS Long AUD Short GBP GBAU LN MSCEGAL GB-p 39 no n/a pending $0.6 $0.0 ETF SecuritiesETFS Long EUR Short GBP GBUR LN MSCEGEL GB-p 39 no n/a pending $0.6 $0.0 ETF Securitiescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.43 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameETF Securities ETPs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderETFS Long JPY Short USD LJPY LN MSCEJPYL USD 39 no n/a yes $0.5 $0.0 ETF SecuritiesChi-X LJPY IX MSCEJPYL USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise LJPY TQ MSCEJPYL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange JPYP LN MSCEJPYL GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X JPYP IX MSCEJPYL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise JPYP TQ MSCEJPYL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Long CAD Short GBP GBCA LN MSCEGCL GB-p 39 no n/a pending $0.4 $0.0 ETF SecuritiesLondon Stock Exchange LNZD LN MSCENZDL USD 39 no n/a yes $0.0 ETF SecuritiesChi-X LNZD IX MSCENZDL USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise LNZD TQ MSCENZDL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange NZDP LN MSCENZDL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise NZDP TQ MSCENZDL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Long NOK Short GBP GBNO LN MSCEGNL GB-p 39 no n/a pending $0.4 $0.0 ETF SecuritiesETFS Long SEK Short GBP GBSK LN MSCEGSL GB-p 39 no n/a pending $0.4 $0.0 ETF SecuritiesETFS Long SEK Short USD LSEK LN MSCESEKL USD 39 no n/a yes $0.3 $0.0 ETF SecuritiesTurquoise LSEK TQ MSCESEKL USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange SEKP LN MSCESEKL GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X SEKP IX MSCESEKL GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise SEKP TQ MSCESEKL GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Long SEK Short USD LSEK IX MSCESEKL USD 39 no n/a yes $0.3 $0.0 ETF SecuritiesETFS Long NZD Short GBP GBNZ LN MSCEGZL GB-p 39 no n/a pending $0.2 $0.0 ETF SecuritiesETFS Long JPY Short GBP GBJP LN MSCEGJL GB-p 39 no n/a pending $0.1 $0.0 ETF SecuritiesLeveraged inverseETFS 3X Short EUR Long USD SEU3 LN MSCEERUS USD 98 no n/a pending $1.3 $0.1 ETF SecuritiesETFS 3X Short GBP Long USD SGB3 LN MSCEGBUS USD 98 no n/a pending $0.1 $0.0 ETF SecuritiesETFS 3X Short JPY Long USD SJP3 LN MSCEJPUS USD 98 no n/a pending $0.1 $0.0 ETF SecuritiesETFS 3X Short AUD Long USD SAU3 LN MSCEAUUS USD 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Short EUR Long GBP SUP3 LN MSCEGEUS GB-p 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Short JPY Long GBP SYP3 LN MSCEGJUS GB-p 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Short USD Long GBP PUS3 LN MSCEGUUS GB-p 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Short AUD Long GBP SAP3 LN MSCEGAUS GB-p 98 no n/a pending $0.0 $0.0 ETF SecuritiesInverseETFS Short EUR Long USD SEUR LN MSCEEURS USD 39 no n/a yes $79.5 $0.6 ETF SecuritiesTurquoise SEUR TQ MSCEEURS USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange SEUP LN MSCEEURS GB-p 39 no n/a yes $0.2 ETF SecuritiesChi-X SEUP IX MSCEEURS GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise SEUP TQ MSCEEURS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short Copper SCOP LN DJUBSHG USD 103 no n/a yes $58.9 $0.9 ETF SecuritiesETFS Short AUD Long USD SAUD LN MSCEAUDS USD 39 no n/a yes $43.8 $0.0 ETF SecuritiesChi-X SAD IX MSCEAUDS USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise SAUD TQ MSCEAUDS USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange SAUP LN MSCEAUDS GB-p 39 no n/a yes $0.7 ETF SecuritiesChi-X SAUP IX MSCEAUDS GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise SAUP TQ MSCEAUDS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short Gold SBUL LN DJUBSGC USD 103 no n/a yes $36.1 $1.3 ETF SecuritiesETFS Short Crude Oil SOIL LN DJUBSCL USD 103 no n/a yes $36.1 $3.3 ETF SecuritiesChi-X SOIL IX DJUBSCL USD 103 no n/a yes $0.0 ETF SecuritiesETFS Short Industrial Metals DJ-UBSCI SIMT LN DJUBSIN USD 103 no n/a yes $23.7 $0.2 ETF SecuritiesETFS Short JPY Long GBP JPGB LN MSCEGJS GB-p 39 no n/a pending $21.3 $0.1 ETF SecuritiesETFS Short Silver SSIL LN DJUBSSI USD 103 no n/a yes $18.0 $0.4 ETF SecuritiesETFS Short Zinc SZIC LN DJUBSZS USD 103 no n/a yes $14.1 $0.2 ETF SecuritiesETFS Short Sugar SSUG LN DJUBSSB USD 103 no n/a yes $12.3 $0.1 ETF Securitiescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 44

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameETF Securities ETPs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderETFS Short Wheat SWEA LN DJUBSWH USD 103 no n/a yes $11.8 $0.2 ETF SecuritiesETFS Short JPY Long USD SJPY LN MSCEJPYS USD 39 no n/a yes $9.4 $0.1 ETF SecuritiesChi-X SJPY IX MSCEJPYS USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise SJPY TQ MSCEJPYS USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange SJPP LN MSCEJPYS GB-p 39 no n/a yes $0.1 ETF SecuritiesTurquoise SJPP TQ MSCEJPYS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short JPY Long USD SJPP IX MSCEJPYS GB-p 39 no n/a yes $9.4 $0.0 ETF SecuritiesETFS Short Cotton SCTO LN DJUBSCT USD 103 no n/a yes $8.7 $0.1 ETF SecuritiesETFS Short Natural Gas SNGA LN DJUBSNG USD 103 no n/a yes $7.3 $0.2 ETF SecuritiesETFS Short Natural Gas SNGA IX DJUBSNG USD 103 no n/a yes $7.3 $0.0 ETF SecuritiesETFS Short Coffee SCFE LN DJUBSKC USD 103 no n/a yes $5.3 $0.0 ETF SecuritiesETFS Short Corn SCOR LN DJUBSCN USD 103 no n/a yes $3.8 $0.0 ETF SecuritiesETFS Short GBP Long USD SGBP IX MSCEGBPS USD 39 no n/a yes $3.1 $0.0 ETF SecuritiesTurquoise SGBP TQ MSCEGBPS USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange USD2 LN MSCEGBPS GB-p 39 no n/a yes $0.1 ETF SecuritiesChi-X USD2 IX MSCEGBPS GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise USD2 TQ MSCEGBPS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short GBP Long USD SGBP LN MSCEGBPS USD 39 no n/a yes $3.1 $0.0 ETF SecuritiesETFS Short Aluminium SALU LN DJUBSAL USD 103 no n/a yes $3.0 $0.0 ETF SecuritiesETFS Short Precious Metals DJ-UBSCISM SPMT LN DJUBSPR USD 103 no n/a yes $2.7 $0.0 ETF SecuritiesETFS Short All Commodities DJ-UBSCISM SALL LN DJUBS USD 103 no n/a yes $2.5 $0.2 ETF SecuritiesETFS Short Nickel SNIK LN DJUBSNI USD 103 no n/a yes $2.3 $0.0 ETF SecuritiesETFS Short Platinum SPLA LN DJUBSPL USD 103 no n/a yes $2.2 $0.0 ETF SecuritiesETFS Short Soybeans SSOB LN DJUBSSY USD 103 no n/a yes $2.0 $0.0 ETF SecuritiesETFS Short Agriculture DJ-UBSCISM SAGR LN DJUBSAG USD 103 no n/a yes $1.9 $0.0 ETF SecuritiesETFS Short Energy DJ-UBSCISM SNRG LN DJUBSEN USD 103 no n/a yes $1.6 $0.1 ETF SecuritiesETFS Short Grains DJ-UBSCISM SGRA LN DJUBSGR USD 103 no n/a yes $1.4 $0.0 ETF SecuritiesETFS Short EUR Long GBP URGB LN MSCEGES GB-p 39 no n/a pending $1.3 $0.2 ETF SecuritiesETFS Short USD Long GBP USGB LN MSCEGUS GB-p 39 no n/a pending $1.3 $0.1 ETF SecuritiesETFS Short CAD Long USD SCAD LN MSCECADS USD 39 no n/a yes $1.1 $0.0 ETF SecuritiesChi-X SCAD IX MSCECADS USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise SCAD TQ MSCECADS USD 39 no n/a yes $0.0 ETF SecuritiesChi-X SCDP IX MSCECADS GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise SCDP TQ MSCECADS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short CAD Long USD SCDP LN MSCECADS GB-p 39 no n/a yes $1.1 $0.0 ETF SecuritiesETFS Short NOK Long USD SNOK LN MSCENOKS USD 39 no n/a yes $0.8 $0.0 ETF SecuritiesChi-X SNOK IX MSCENOKS USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise SNOK TQ MSCENOKS USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange SNOP LN MSCENOKS GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X SNOP IX MSCENOKS GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise SNOP TQ MSCENOKS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short Live Cattle SLCT LN DJUBSLC USD 103 no n/a yes $0.8 $0.0 ETF SecuritiesETFS Short Cocoa SCOC LN DJUBSCC USD 103 no n/a yes $0.8 $0.0 ETF SecuritiesETFS Short Tin STIM LN DJUBSSN USD 103 no n/a yes $0.6 $0.0 ETF SecuritiesETFS Short Lean Hogs SLHO LN DJUBSLH USD 103 no n/a yes $0.6 $0.0 ETF SecuritiesETFS Short Gasoline SGAS LN DJUBSRB USD 103 no n/a yes $0.6 $0.0 ETF SecuritiesETFS Short Soybean Oil SSYO LN DJUBSBO USD 103 no n/a yes $0.6 $0.0 ETF SecuritiesETFS Short Softs DJ-UBSCISM SSFT LN DJUBSSO USD 103 no n/a yes $0.6 $0.0 ETF SecuritiesETFS Short CNY Long USD SCNY LN MSCECNYS USD 59 no n/a pending $0.5 $0.0 ETF SecuritiesLondon Stock Exchange SCYP LN MSCECNYS GB-p 59 no n/a pending $0.0 ETF SecuritiesETFS Short Lead SLEA LN DJUBSPB USD 103 no n/a yes $0.5 $0.0 ETF Securitiescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.45 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameETF Securities ETPs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderETFS Short INR Long USD SINR LN MSCEINRS USD 59 no n/a pending $0.5 $0.0 ETF SecuritiesLondon Stock Exchange SINP LN MSCEINRS GB-p 59 no n/a pending $0.0 ETF SecuritiesETFS Short Petroleum DJ-UBSCISM SPET LN DJUBSPE USD 103 no n/a yes $0.4 $0.0 ETF SecuritiesETFS Short AUD Long GBP AUGB LN MSCEGAS GB-p 39 no n/a pending $0.4 $0.0 ETF SecuritiesETFS Short CHF Long GBP CHGB LN MSCEGHS GB-p 39 no n/a pending $0.4 $0.0 ETF SecuritiesETFS Short CHF Long USD SCHF LN MSCECHFS USD 39 no n/a yes $0.3 $0.0 ETF SecuritiesChi-X SCHF IX MSCECHFS USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise SCHF TQ MSCECHFS USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange SCHP LN MSCECHFS GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X SCHP1 IX MSCECHFS GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise SCHP1 TQ MSCECHFS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short NZD Long USD SNZD LN MSCENZDS USD 39 no n/a yes $0.3 $0.0 ETF SecuritiesChi-X SNZD IX MSCENZDS USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise SNZD TQ MSCENZDS USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange SNZP LN MSCENZDS GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X SNZP IX MSCENZDS GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise SNZP TQ MSCENZDS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short SEK Long USD SSEK LN MSCESEKS USD 39 no n/a yes $0.3 $0.0 ETF SecuritiesChi-X SSEK IX MSCESEKS USD 39 no n/a yes $0.0 ETF SecuritiesTurquoise SSEK TQ MSCESEKS USD 39 no n/a yes $0.0 ETF SecuritiesLondon Stock Exchange SSEP LN MSCESEKS GB-p 39 no n/a yes $0.0 ETF SecuritiesChi-X SSEP IX MSCESEKS GB-p 39 no n/a yes $0.0 ETF SecuritiesTurquoise SSEP TQ MSCESEKS GB-p 39 no n/a yes $0.0 ETF SecuritiesETFS Short Heating Oil SHEA LN DJUBSHO USD 103 no n/a yes $0.2 $0.0 ETF SecuritiesETFS Short Livestock DJ-UBSCISM SLST LN DJUBSLI USD 103 no n/a yes $0.1 $0.0 ETF SecuritiesETFS Short CAD Long GBP CAGB LN MSCEGCS GB-p 39 no n/a pending $0.1 $0.0 ETF SecuritiesETFS Short NOK Long GBP NOGB LN MSCEGNS GB-p 39 no n/a pending $0.1 $0.0 ETF SecuritiesETFS Short NZD Long GBP NZGB LN MSCEGZS GB-p 39 no n/a pending $0.1 $0.0 ETF SecuritiesETFS Short SEK Long GBP SKGB LN MSCEGSS GB-p 39 no n/a pending $0.1 $0.0 ETF SecuritiesETFS Short Ex-Energy DJ-UBSCISM SNEY LN DJUBSXE USD 103 no n/a yes $0.1 $0.0 ETF SecuritiesLeveragedETFS Leveraged Natural Gas LNGA LN DJUBSNG USD 103 no n/a yes $389.5 $2.0 ETF SecuritiesChi-X LNGA IX DJUBSNG USD 103 no n/a yes $0.0 ETF SecuritiesETFS Leveraged Silver LSIL LN DJUBSSI USD 103 no n/a yes $96.3 $3.7 ETF SecuritiesETFS Leveraged Crude Oil LOIL LN DJUBSCL USD 103 no n/a yes $84.8 $2.4 ETF SecuritiesChi-X LOIL IX DJUBSCL USD 103 no n/a yes $0.0 ETF SecuritiesETFS Leveraged Gold LBUL LN DJUBSGC USD 103 no n/a yes $60.2 $1.4 ETF SecuritiesETFS Leveraged Platinum LPLA LN DJUBSPL USD 103 no n/a yes $26.3 $0.2 ETF SecuritiesETFS Leveraged Wheat LWEA LN DJUBSWH USD 103 no n/a yes $18.5 $0.5 ETF SecuritiesETFS Leveraged Agriculture DJ-UBSCI LAGA LN DJUBSAG USD 103 no n/a yes $16.5 $0.1 ETF SecuritiesETFS Leveraged Copper LCOP LN DJUBSHG USD 103 no n/a yes $13.5 $0.6 ETF SecuritiesETFS Leveraged Precious Metals DJ-UBSCI LPMT LN DJUBSPR USD 103 no n/a yes $13.0 $0.4 ETF SecuritiesETFS Leveraged All Commodities DJ-UBSCI LALL LN DJUBS USD 103 no n/a yes $9.3 $0.1 ETF SecuritiesETFS Leveraged Aluminium LALU LN DJUBSAL USD 103 no n/a yes $8.5 $0.0 ETF SecuritiesETFS Leveraged Cocoa LCOC LN DJUBSCC USD 103 no n/a yes $6.8 $0.3 ETF SecuritiesETFS Leveraged Corn LCOR LN DJUBSCN USD 103 no n/a yes $6.6 $0.2 ETF SecuritiesETFS Leveraged Sugar LSUG LN DJUBSSB USD 103 no n/a yes $6.5 $0.4 ETF SecuritiesETFS Leveraged Lead LLEA LN DJUBSPB USD 103 no n/a yes $6.4 $0.1 ETF SecuritiesETFS Leveraged Nickel LNIK LN DJUBSNI USD 103 no n/a yes $5.8 $0.1 ETF SecuritiesETFS Leveraged Zinc LZIC LN DJUBSZS USD 103 no n/a yes $4.6 $0.1 ETF SecuritiesETFS Leveraged Cotton LCTO LN DJUBSCT USD 103 no n/a yes $4.2 $0.3 ETF SecuritiesETFS Leveraged Industrial Metal DJ-UBSCI LIME LN DJUBSIN USD 103 no n/a yes $3.9 $0.1 ETF Securitiescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 46

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameETF Securities ETPs (continued)Leveraged (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderETFS Leveraged Softs DJ-UBSCI LSFT LN DJUBSSO USD 103 no n/a yes $3.6 $0.1 ETF SecuritiesETFS Leveraged Soybeans LSOB LN DJUBSSY USD 103 no n/a yes $3.4 $0.1 ETF SecuritiesETFS Leveraged Grains DJ-UBSCI LGRA LN DJUBSGR USD 103 no n/a yes $3.3 $0.1 ETF SecuritiesETFS Leveraged Coffee LCFE LN DJUBSKC USD 103 no n/a yes $3.0 $0.1 ETF SecuritiesETFS Leveraged Lean Hogs LLHO LN DJUBSLH USD 103 no n/a yes $2.1 $0.0 ETF SecuritiesETFS Leveraged Energy DJ-UBSCI LNRG LN DJUBSEN USD 103 no n/a yes $1.9 $0.0 ETF SecuritiesETFS Leveraged Tin LTIM LN DJUBSSN USD 103 no n/a yes $1.8 $0.0 ETF SecuritiesETFS Leveraged Gasoline LGAS LN DJUBSRB USD 103 no n/a yes $1.7 $0.0 ETF SecuritiesETFS Leveraged Ex-Energy DJ-UBSCI LNEY LN DJUBSXE USD 103 no n/a yes $1.1 $0.1 ETF SecuritiesETFS Leveraged Livestock DJ-UBSCI LLST LN DJUBSLI USD 103 no n/a yes $1.1 $0.0 ETF SecuritiesETFS Leveraged Heating Oil LHEO LN DJUBSHO USD 103 no n/a yes $0.9 $0.0 ETF SecuritiesETFS Leveraged Soybean Oil LSYO LN DJUBSBO USD 103 no n/a yes $0.9 $0.1 ETF SecuritiesETFS Leveraged Petroleum DJ-UBSCI LPET LN DJUBSPE USD 103 no n/a yes $0.8 $0.0 ETF SecuritiesETFS Leveraged Live Cattle LLCT LN DJUBSLC USD 103 no n/a yes $0.7 $0.0 ETF SecuritiesETFS 3X Long AUD Short GBP AUP3 LN MSCEGAUL GB-p 98 no n/a pending $0.1 $0.0 ETF SecuritiesETFS 3X Long EUR Short USD LEU3 LN MSCEERUL USD 98 no n/a pending $0.1 $0.0 ETF SecuritiesETFS 3x Long USD Short GBP USP3 LN MSCEGAUL GB-p 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Long GBP Short USD LGB3 LN MSCEGBUL USD 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Long AUD Short USD LAU3 LN MSCEAUUL USD 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Long JPY Short GBP JPP3 LN MSCEGJUL GB-p 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Long JPY Short USD LJP3 LN MSCEJPUL USD 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFS 3X Long EUR Short GBP EUP3 LN MSCEGEUL GB-p 98 no n/a pending $0.0 $0.0 ETF SecuritiesETFlab Investments ETFsETFlab EURO STOXX 50 ETFSX5E IX SX5E EUR 15* III no no $2,120.3 $0.0 ETFlab InvestmentETFlab DAX ETFDAX IX DAX EUR 15* III no no $1,217.1 $0.0 ETFlab InvestmentHSBC/Hang Seng ETFsHSBC FTSE 100 ETF HUKX LN TUKXG GB-p 35 III pending yes $195.0 $5.2 HSBC/Hang SengHSBC S&P 500 ETF HSPX LN SPTR500N GB-p 15 III n/a yes $104.2 $0.6 HSBC/Hang SengLondon Stock Exchange HSPD LN SPTR500N USD 15 III n/a yes $1.1 HSBC/Hang SengHSBC MSCI USA ETF HMUS LN MSDUUS GB-p 30 III n/a yes $66.2 $0.1 HSBC/Hang SengLondon Stock Exchange HMUD LN MSDUUS USD 30 III n/a yes $0.0 HSBC/Hang SengHSBC MSCI Pacific ex Japan ETF HMXJ LN NDDUPXJ GB-p 40 III n/a yes $54.8 $0.2 HSBC/Hang SengLondon Stock Exchange HMXD LN NDDUPXJ USD 40 III n/a yes $0.8 HSBC/Hang SengHSBC MSCI Japan ETF HMJP LN NDDUJN GB-p 40 III n/a yes $54.1 $2.3 HSBC/Hang SengLondon Stock Exchange HMJD LN NDDUJN USD 40 III n/a yes $0.4 HSBC/Hang SengHSBC DJ EURO STOXX 50 ETF H50E LN SX5E GB-p 15 III pending yes $46.2 $1.0 HSBC/Hang SengHSBC MSCI World ETF HMWO LN NDDUWI GB-p 35 III n/a pending $27.2 $0.1 HSBC/Hang SengLondon Stock Exchange HMWD LN NDDUWI USD 35 III n/a pending $0.1 HSBC/Hang SengHSBC MSCI EUROPE ETF HMEU LN MXEU GB-p 30 III n/a yes $26.1 $0.0 HSBC/Hang SengHSBC MSCI Brazil ETF HMBR LN MXBR USD 60 III n/a yes $11.9 $0.2 HSBC/Hang SengLondon Stock Exchange HBRL LN NDEUSBR GB-p 60 III n/a yes $0.2 HSBC/Hang SengHSBC MSCI EM Far East ETF HMFE LN NDUEEGFF GB-p 60 III n/a yes $11.9 $0.1 HSBC/Hang SengLondon Stock Exchange HMFD LN NDUEEGFF USD 60 III n/a yes $0.1 HSBC/Hang SengHSBC FTSE 250 ETF HMCX LN FTPTT250 GB-p 35 III n/a yes $11.4 $0.0 HSBC/Hang SengHSBC MSCI Turkey ETF HTRY LN NDEUTUR GB-p 60 III n/a pending $4.5 $0.1 HSBC/Hang SengLondon Stock Exchange HTRD LN NDEUTUR USD 60 III n/a pending $0.6 HSBC/Hang SengiShares ETFsiShares MSCI Emerging Markets Index Fund EEM TQ MXEF USD 72 no n/a n/a $47,551.5 $0.0 iSharesiShares MSCI EAFE Index Fund EFA TQ NDDUEAFE USD 35 no n/a n/a $36,923.1 $0.0 iSharesiShares Russell 2000 Index Fund IWM TQ RU20INTR USD 28 no n/a n/a $17,498.4 $0.0 iSharesiShares MSCI Brazil Index Fund EWZ TQ NDUEBRAF USD 61 no n/a n/a $12,012.5 $0.0 iSharescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.47 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameiShares ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProvideriShares FTSE China 25 Index Fund FXI TQ XINOI USD 73 no n/a n/a $8,131.1 $0.0 iSharesiShares S&P 500 IUSA LN SPX GB-p 40 III yes yes $7,905.8 $10.3 iSharesLondon Stock Exchange IDUS LN SPX USD 40 III yes yes $8.1 iSharesChi-X IUSA IX SPX GB-p 40 III yes yes $0.1 iSharesiShares MSCI Emerging Markets IEEM LN MXEF GB-p 75 III yes yes $6,821.7 $11.8 iSharesLondon Stock Exchange IDEM LN MXEF USD 75 III yes yes $25.7 iSharesChi-X IEEM IX MXEF GB-p 75 III yes yes $0.1 iSharesiShares FTSE 100 ISF LN UKX GB-p 40 III yes yes $5,961.7 $38.7 iSharesChi-X ISF IX UKX GB-p 40 III yes yes $5.2 iSharesiShares DAX® (DE) EXSE IX DAX EUR 17 III no no $5,917.7 $1.6 iSharesiShares EURO STOXX 50 (DE) STTX IX SX5E EUR 17 III no no $5,030.7 $0.7 iSharesiShares MSCI Japan Index Fund EWJ TQ MXJP USD 54 no n/a n/a $4,883.3 $0.0 iSharesiShares Markit iBoxx Euro Corporate Bond IBCX LN IB8A EUR 20 III yes yes $4,782.5 $5.2 iSharesChi-X IBCX IX IB8A EUR 20 III yes yes $0.0 iSharesiShares EURO STOXX 50 EUE LN SX5T GB-p 35 III yes yes $4,097.5 $4.1 iSharesChi-X EUNZ IX SX5T EUR 35 III yes yes $0.5 iSharesiShares MSCI Taiwan Index Fund EWT TQ MXTW USD 71 no n/a n/a $3,458.3 $0.0 iSharesiShares MSCI World IWRD LN MXWO GB-p 50 III yes yes $3,455.2 $4.0 iSharesLondon Stock Exchange IDWR LN MXWO USD 50 III yes yes $2.5 iSharesiShares MSCI AC Far East ex-Japan IFFF LN MXFEJ GB-p 74 III yes yes $2,264.4 $3.4 iSharesLondon Stock Exchange IDFF LN MXFEJ USD 74 III yes yes $2.4 iSharesChi-X IFFF IX MXFEJ USD 74 III yes yes $0.0 iSharesiShares MSCI Japan IJPN LN NDDUJN GB-p 59 III yes yes $2,081.8 $8.7 iSharesChi-X IJPN IX NDDUJN GB-p 59 III yes yes $0.0 iSharesiShares MSCI Hong Kong Index Fund EWH TQ NDDUHK USD 53 no n/a n/a $2,057.6 $0.0 iSharesiShares Markit iBoxx £ Corporate Bond SLXX LN IB8X GBP 20 III yes yes $1,789.3 $11.0 iSharesiShares MSCI North America INAA LN NDDUNA GB-p 40 III yes yes $1,777.8 $1.5 iSharesLondon Stock Exchange IDNA LN NDDUNA USD 40 III yes yes $2.3 iSharesiShares MSCI Europe IMEU LN MXEU GB-p 35 III yes yes $1,397.4 $2.6 iSharesiShares Barclays Capital Euro Corporate Bond IEBC LN LECPTREU GBP 20 III yes yes $1,377.3 $0.7 iSharesLondon Stock Exchange IEAC LN LECPTREU EUR 20 III yes yes $1.1 iSharesiShares FTSE BRIC 50 BRIC LN FBRIC GB-p 74 III yes yes $1,328.9 $1.8 iSharesLondon Stock Exchange DBRC LN FBRIC USD 74 III yes yes $0.3 iSharesiShares MSCI Brazil IBZL LN MXBR GB-p 74 III yes yes $1,183.5 $1.2 iSharesLondon Stock Exchange IDBZ LN MXBR USD 74 III yes yes $0.9 iSharesChi-X IBZL IX MXBR GB-p 74 III yes yes $0.1 iSharesiShares FTSE China 25 IDFX LN XINOI USD 74 III yes yes $1,180.5 $1.2 iSharesLondon Stock Exchange FXC LN XINOI GB-p 74 III yes yes $1.6 iSharesiShares Barclays Capital Euro Government Bond 1-3 IBGS LN BCEX6T GBP 20 III yes yes $1,078.0 $1.0 iSharesiShares JPMorgan $ Emerging Markets Bond Fund SEMB LN JPEICOR GB-p 45 III yes yes $1,064.0 $0.7 iSharesLondon Stock Exchange IEMB LN JPEICOR USD 45 III yes yes $4.6 iSharesLondon Stock Exchange EEMB LN JPEICOR EUR 45 III yes yes $0.1 iSharesiShares FTSE EPRA/NAREIT Dev Markets Property IWDP LN ENGD GB-p 59 III no yes $1,015.2 $1.0 iSharesLondon Stock Exchange IDWP LN ENGD USD 59 III no yes $1.0 iSharesiShares STOXX Europe 50 EUN LN SX5R GB-p 35 III yes yes $998.4 $0.7 iSharesChi-X EUNN IX SX5R EUR 35 III yes yes $0.0 iSharesiShares Barclays Capital Euro Inflation Linked Bond IBCI LN BEIG1T GBP 25 III no yes $959.2 $0.1 iSharesiShares Markit iBoxx $ Corporate Bond LQDE LN IBOXIG30 USD 20 III yes yes $831.0 $6.1 iSharesChi-X LQDE IX IBOXIG30 USD 20 III yes yes $0.0 iSharesiShares MSCI Europe ex-UK IEUX LN MSDE15XN GB-p 40 III yes yes $821.6 $2.7 iSharesiShares Barclays Capital £ Index-Linked Gilts INXG LN BCIU1G GBP 25 III yes yes $797.5 $7.0 iSharescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 48

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameiShares ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProvideriShares FTSE 250 MIDD LN MCX GB-p 40 III yes yes $791.7 $8.3 iSharesChi-X MIDD IX MCX GB-p 40 III yes yes $0.0 iSharesiShares FTSE/EPRA European Property Index Fund IPRP LN ENDP GB-p 40 III no yes $724.3 $0.7 iSharesiShares FTSE UK Dividend Plus IUKD LN FUDP GB-p 40 III yes yes $651.2 $3.0 iSharesiShares FTSE UK All Stocks Gilt IGLT LN FTFIBGA GBP 20 III yes yes $644.7 $5.0 iSharesiShares Barclays Capital $ Treasury Bond 1-3 IBTS LN BCEY6T GBP 20 III yes yes $616.7 $0.9 iSharesLondon Stock Exchange IDBT LN BCEY6T USD 20 III yes yes $2.3 iSharesiShares EURO STOXX Select Dividend 30 IDVY LN SD3T GB-p 40 III yes yes $600.9 $0.6 iSharesiShares Barclays Capital Euro Government Bond 3-5 IBGX LN BCEX2G GBP 20 III yes yes $568.8 $0.1 iSharesLondon Stock Exchange IEGX LN BCEX2G EUR 20 III yes yes $0.4 iSharesiShares MSCI Korea IKOR LN NDEUSKO GB-p 74 III yes yes $550.8 $7.4 iSharesLondon Stock Exchange IDKO LN NDEUSKO USD 74 III yes yes $0.8 iSharesiShares Barclays Capital Euro Aggregate Bond SEAG LN LBEATREU GBP 25 III yes yes $513.1 $0.1 iSharesLondon Stock Exchange IEAG LN LBEATREU EUR 25 III yes yes $2.1 iSharesiShares MSCI Taiwan ITWN LN NDEUSTW GB-p 74 III yes yes $492.4 $1.3 iSharesLondon Stock Exchange IDTW LN NDEUSTW USD 74 III yes yes $1.3 iSharesiShares Markit iBoxx Euro High Yield Bond IHYG LN IBOXXMJA EUR 50 III n/a yes $477.0 $6.7 iSharesLondon Stock Exchange SHYG LN IBOXXMJA GBP 50 III n/a yes $0.1 iSharesiShares Barclays Capital $ TIPS ITPS LN BCIT1T GBP 25 III no yes $472.8 $0.3 iSharesLondon Stock Exchange IDTP LN BCIT1T USD 25 III no yes $0.6 iSharesChi-X IDTP IX BCIT1T USD 25 III no yes $0.0 iSharesiShares Dow Jones U.S. Financial Sector Index Fund IYF TQ DJUSFNT USD 48 no n/a n/a $465.6 $0.0 iSharesiShares FTSE Gilts UK 0-5 IGLS LN FTFIBGL GBP 20 III yes yes $435.4 $5.7 iSharesiShares MSCI Eastern Europe 10/40 IEER LN MN40MEU GB-p 74 III yes yes $431.5 $3.0 iSharesLondon Stock Exchange IDEE LN MN40MEU USD 74 III yes yes $0.3 iSharesiShares EURO STOXX Small DJSC LN SCXT GB-p 40 III yes yes $419.5 $0.4 iSharesiShares Barclays Capital Euro Government Bond 7-10 IBGM LN BCEX4T GBP 20 III yes yes $408.3 $0.2 iSharesLondon Stock Exchange IEGM LN BCEX4T EUR 20 III yes yes $1.0 iSharesChi-X IEGM IX BCEX4T EUR 20 III yes yes $0.0 iSharesiShares FTSE EPRA/NAREIT UK Property Fund IUKP LN ELUK GB-p 40 III yes yes $368.5 $0.7 iSharesiShares AEX IAEX LN AEX GB-p 30 III yes yes $364.8 $1.0 iSharesChi-X IAEX IX AEX EUR 30 III yes yes $0.1 iSharesiShares MSCI EM Latin America LTAM LN NDUEEGFL GB-p 74 III yes yes $362.0 $0.6 iSharesLondon Stock Exchange DLTM LN NDUEEGFL USD 74 III yes yes $1.4 iSharesiShares Citigroup Global Government Bond SGLO LN SBG7U GBP 20 III yes yes $360.8 $0.3 iSharesLondon Stock Exchange IGLO LN SBG7U USD 20 III yes yes $1.4 iSharesiShares FTSE/Macquarie Global Infrastructure 100 INFR LN MCGIGIDI GB-p 65 III yes yes $336.9 $0.4 iSharesLondon Stock Exchange IDIN LN MCGIGIDI USD 65 III yes yes $0.0 iSharesiShares S&P Global Water IH2O LN SPGTAQUA GB-p 65 III yes yes $329.3 $0.3 iSharesLondon Stock Exchange DH2O LN SPGTAQUA USD 65 III yes yes $0.1 iSharesiShares MSCI Turkey ITKY LN MXTR GB-p 74 III yes yes $314.1 $0.6 iSharesLondon Stock Exchange IDTK LN MXTR USD 74 III yes yes $0.2 iSharesiShares DJ Asia/Pacific Select Dividend 30 IAPD LN DJAPSDT GB-p 59 III no yes $312.3 $0.9 iSharesLondon Stock Exchange IDAP LN DJAPSDT USD 59 III no yes $0.4 iSharesiShares FTSE EPRA/NAREIT Asia Property Yield Fund IASP LN ENAD GB-p 59 III no yes $305.6 $0.7 iSharesLondon Stock Exchange IDAR LN ENAD USD 59 III no yes $1.0 iSharesiShares Barclays Capital $ Treasury Bond 7-10 IBTM LN BCEY4T GBP 20 III yes yes $302.7 $0.4 iSharesLondon Stock Exchange IDTM LN BCEY4T USD 20 III yes yes $2.2 iSharesChi-X IDTM IX BCEY4T USD 20 III yes yes $0.0 iSharesiShares MSCI Emerging Markets SmallCap IEMS LN MSLUEMR USD 74 III yes yes $263.0 $1.3 iSharesLondon Stock Exchange SEMS LN MSLUEMR GB-p 74 III yes yes $0.8 iSharescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.49 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameiShares ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProvideriShares Barclays Capital Euro Corporate ex-Financials IEXF LN LECFTREU EUR 20 III yes yes $231.2 $0.9 iSharesLondon Stock Exchange EEXF LN LECFTREU GBP 20 III yes yes $0.0 iSharesiShares S&P Emerging Market Infrastructure IEMI LN SPGEIFD GB-p 74 III yes yes $219.7 $0.3 iSharesLondon Stock Exchange DEIN LN SPGEIFD USD 74 III yes yes $0.4 iSharesiShares Markit iBoxx £ Corporate Bond ex-Financials SSXF LN IYJD EUR 20 III yes yes $218.8 $0.1 iSharesLondon Stock Exchange ISXF LN IYJD GBP 20 III yes yes $2.7 iSharesiShares MSCI Pacific ex-Japan SPXJ LN MSDUPXJ GB-p 60 III no yes $217.0 $0.2 iSharesLondon Stock Exchange IPXJ LN MSDUPXJ USD 60 III no yes $0.3 iSharesiShares FTSE EPRA/NAREIT US Property Yield Fund IUSP LN ENUD GB-p 40 III no yes $212.1 $0.3 iSharesLondon Stock Exchange IDUP LN ENUD USD 40 III no yes $0.4 iSharesiShares EURO STOXX Mid DJMC LN MCXT GB-p 40 III yes yes $209.2 $0.1 iSharesiShares Barclays Capital Euro Government 15-30 IBGL LN BCEX1T GBP 20 III yes yes $180.8 $0.1 iSharesLondon Stock Exchange IEGL LN BCEX1T EUR 20 III yes yes $0.1 iSharesiShares Barclays Capital Global Inflation-Linked SGIL LN BCIW1T GBP 17 III no yes $165.0 $0.0 iSharesLondon Stock Exchange IGIL LN BCIW1T USD 25 III no yes $1.1 iSharesLondon Stock Exchange EGIL LN BCIW1T EUR 25 III no yes $0.0 iSharesiShares S&P Listed Private Equity IPRV LN SPLPEQTY GB-p 75 III no no $158.6 $0.2 iSharesLondon Stock Exchange IDPE LN SPLPEQTY USD 75 III no no $0.1 iSharesiShares Barclays Capital Euro Corp Bond ex-Fin 1-5 IEX5 LN LECXTREU EUR 20 III yes yes $155.2 $0.6 iSharesLondon Stock Exchange EEX5 LN LECXTREU GBP 20 III yes yes $0.0 iSharesiShares S&P Global Clean Energy INRG LN SPGTCLEE GB-p 65 III yes yes $137.2 $0.1 iSharesLondon Stock Exchange DNRG LN SPGTCLEE USD 65 III yes yes $0.1 iSharesiShares MSCI Japan SmallCap ISJP LN NCUAJN GB-p 59 III yes yes $131.9 $0.1 iSharesLondon Stock Exchange IDJP LN NCUAJN USD 59 III yes yes $0.0 iSharesiShares FTSEurofirst 100 IEUT LN FTEFC1 GB-p 40 III yes yes $106.6 $0.1 iSharesiShares MSCI Emerging Markets (Acc) IEMA LN NDUEEGF USD 75 III no yes $102.1 $0.1 iSharesLondon Stock Exchange SEMA LN NDUEEGF GB-p 75 III no yes $0.1 iSharesiShares Barclays Capital Euro Corporate Bond 1-5 IE15 LN LEC4TREU EUR 20 III yes yes $94.5 $0.5 iSharesLondon Stock Exchange SE15 LN LEC4TREU GBP 20 III yes yes $0.2 iSharesiShares MSCI World (Acc) IWDA LN NDDUWI USD 50 III no yes $91.2 $0.1 iSharesLondon Stock Exchange SWDA LN NDDUWI GB-p 50 III no yes $0.1 iSharesChi-X IWDA IX NDDUWI EUR 50 III no yes $0.0 iSharesiShares EURO STOXX Total Market Growth Large IDJG LN SLGT GB-p 40 III yes yes $89.3 $0.2 iSharesiShares Markit iBoxx Euro Covered Bond SCOV LN IYGB GBP 20 III yes yes $86.9 $0.0 iSharesLondon Stock Exchange ICOV LN IYGB EUR 20 III yes yes $0.0 iSharesiShares FTSEurofirst 80 IEUR LN FTEF80 GB-p 40 III yes yes $79.6 $0.2 iSharesiShares MSCI Japan Monthly EUR Hedged IJPE LN MXJPHEUR EUR 64 III n/a yes $71.4 $0.5 iSharesiShares EURO STOXX Total Market Value Large IDJV LN SLVT GB-p 40 III yes yes $66.0 $0.1 iSharesiShares S&P Global Timber & Forestry WOOD LN SPGTTF GB-p 65 III no yes $62.1 $0.0 iSharesLondon Stock Exchange DWOD LN SPGTTF USD 65 III no yes $0.0 iSharesiShares MSCI Canada SCAN LN NDDUCA GB-p 59 III n/a yes $58.8 $0.3 iSharesLondon Stock Exchange ICAN LN NDDUCA USD 59 III n/a yes $0.2 iSharesiShares S&P SmallCap 600 ISP6 LN SML GB-p 40 III yes yes $57.4 $0.3 iSharesLondon Stock Exchange IDP6 LN SML USD 40 III yes yes $0.3 iSharesiShares Barclays Capital Euro Government Bond 5-7 IBGY LN BXIIET57 GBP 20 III yes yes $55.7 $0.0 iSharesLondon Stock Exchange IEGY LN BXIIET57 EUR 20 III yes yes $0.5 iSharesiShares MSCI AC Far East ex-Japan SmallCap ISFE LN MSLUAFJ GB-p 74 III yes yes $51.9 $0.3 iSharesLondon Stock Exchange IDFE LN MSLUAFJ USD 74 III yes yes $0.1 iSharesiShares S&P 500 (Acc) IACC LN SPTR500N USD 40 III no yes $48.8 $0.4 iSharesLondon Stock Exchange SACC LN SPTR500N GB-p 40 III no yes $0.2 iSharesiShares MSCI World Islamic ISWD LN MIWO GB-p 60 III yes yes $46.5 $0.0 iSharesLondon Stock Exchange ISDW LN MIWO USD 60 III yes yes $0.1 iSharescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 50

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameiShares ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProvideriShares MSCI Australia SAUS LN NDDUAS GB-p 59 III n/a yes $39.7 $0.3 iSharesLondon Stock Exchange IAUS LN NDDUAS USD 59 III n/a yes $0.3 iSharesiShares MSCI Europe (Acc) IMEA LN MSDEE15N EUR 35 III no yes $39.6 $0.0 iSharesLondon Stock Exchange SMEA LN MSDEE15N GB-p 35 III no yes $0.1 iSharesiShares FTSE MIB IMIB LN FTSEMIB GB-p 35 III yes yes $37.4 $0.1 iSharesiShares MSCI Emerging Markets Islamic ISEM LN MIEF GB-p 85 III yes yes $35.9 $0.2 iSharesLondon Stock Exchange ISDE LN MIEF USD 85 III yes yes $0.2 iSharesiShares FTSE Developed World ex-UK SWXU LN FTR1AWDU GB-p 50 III yes yes $33.4 $0.4 iSharesLondon Stock Exchange IWXU LN FTR1AWDU USD 50 III yes yes $0.3 iSharesiShares MSCI Japan (Acc) IJPA LN NDDUJN USD 59 III no yes $32.5 $0.0 iSharesLondon Stock Exchange SJPA LN NDDUJN GB-p 59 III no yes $0.0 iSharesiShares MSCI USA Islamic ISUS LN MIUS GB-p 50 III yes yes $29.4 $0.0 iSharesLondon Stock Exchange ISDU LN MIUS USD 50 III yes yes $0.1 iSharesiShares MSCI World Monthly EUR Hedged IWDE LN MXWOHEUR EUR 55 III n/a yes $28.9 $1.0 iSharesiShares MSCI Russia Capped Swap RUSS LN GB-p 74 III n/a yes $22.7 $0.8 iSharesLondon Stock Exchange IRSS LN USD 74 III n/a yes $0.6 iSharesiShares Barclays Capital Euro Treasury Bond SEGA LN LEATTREU GBP 20 III yes yes $22.3 $0.0 iSharesLondon Stock Exchange IEGA LN LEATTREU EUR 20 III yes yes $0.0 iSharesiShares EURO STOXX 50 (Acc) IEUA LN SX5T EUR 35 III n/a yes $20.6 $0.1 iSharesLondon Stock Exchange SEUA LN SX5T GB-p 35 III n/a yes $0.0 iSharesiShares MSCI GCC Countries ex-Saudi Arabia IGCC LN MXGC40XS USD 80 III yes yes $19.1 $0.0 iSharesLondon Stock Exchange SGCC LN MXGC40XS GB-p 80 III yes yes $0.0 iSharesiShares S&P 500 Monthly GBP Hedged IGUS LN SPXUXBH GB-p 45 III n/a yes $17.2 $1.1 iSharesiShares MSCI World Monthly GBP Hedged IGWD LN MXWOHGBP GB-p 55 III n/a yes $16.8 $0.5 iSharesiShares Barclays Capital Euro Treasury Bond 0-1 IBGE LN LA09TREU GBP 20 III yes yes $16.5 $0.0 iSharesLondon Stock Exchange IEGE LN LA09TREU EUR 20 III yes yes $0.0 iSharesiShares S&P CNX Nifty India Swap NFTY LN NIFTY GB-p 85 III n/a yes $15.9 $0.2 iSharesLondon Stock Exchange NIFT LN NIFTY USD 85 III n/a yes $2.3 iSharesiShares S&P 500 Monthly EUR Hedged IUSE LN SPXUXEH EUR 45 III n/a yes $14.7 $0.7 iSharesiShares Barclays Capital Euro Government 10-15 IBGZ LN BXIIET15 GBP 20 III yes yes $13.6 $0.0 iSharesLondon Stock Exchange IEGZ LN BXIIET15 EUR 20 III yes yes $0.2 iSharesiShares MSCI Europe ex-EMU SXMU LN MSDUEXEU GB-p 40 III yes yes $8.0 $0.1 iSharesLondon Stock Exchange IXMU LN MSDUEXEU USD 40 III yes yes $0.1 iSharesiShares MSCI USA ISAM LN NDDLUS USD 40 III n/a yes $7.9 $0.2 iSharesLondon Stock Exchange SSAM LN NDDLUS GB-p 40 III n/a yes $0.0 iSharesiShares MSCI South Africa SRSA LN NDEUSSA GB-p 74 III n/a yes $6.9 $0.4 iSharesLondon Stock Exchange IRSA LN NDEUSSA USD 74 III n/a yes $0.1 iSharesiShares ETPsiShares Silver Trust SLV TQ SLVRLN USD 50 no n/a n/a $10,840.7 $0.0 iSharesLyxor Asset Management ETFsLyxor Euro STOXX 50 MSE IX SX5E EUR 25 III no no $8,278.6 $0.4 Lyxor AMLyxor CAC 40 CAC IX CAC EUR 25 III no no $4,036.5 $0.5 Lyxor AMLyxor ETF DAX LDAX IX DAX EUR 20 III no no $1,065.2 $0.3 Lyxor AMLyxor ETF FTSE 100 L100 LN FTPTT100 GB-p 30 III yes will seek $569.0 $3.2 Lyxor AMChi-X L100 IX FTPTT100 GB-p 30 III yes will seek $0.0 Lyxor AMLyxor ETF Stoxx Europe 600 Banks LYXBI IX SX7P EUR 30 III no no $424.1 $0.0 Lyxor AMLyxor ETF S&P 500 LSPU LN SPX USD 25 III will seek will seek $294.0 $0.0 Lyxor AMLondon Stock Exchange LSPX LN SPX GB-p 25 III will seek will seek $0.0 Lyxor AMLyxor ETF Euro Stoxx 50 TR MSET LN SX5T EUR 30 III will seek will seek $162.1 $0.0 Lyxor AMLondon Stock Exchange MSEG LN SX5T GB-p 30 III will seek will seek $0.0 Lyxor AMLyxor ETF CRB Index LCTY LN CRYTR GB-p 35 III yes will seek $150.1 $0.7 Lyxor AMLondon Stock Exchange LCTU LN CRYTR USD 35 III yes will seek $0.1 Lyxor AMcontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.51 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameLyxor Asset Management ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderLyxor ETF FTSE ALL-SHARE (TR) LFAS LN FTPTTALL GB-p 40 III yes will seek $97.2 $0.3 Lyxor AMLyxor ETF MSCI World Energy TR NRGW LN M1WO0EN USD 45 III will seek will seek $72.8 $0.0 Lyxor AMLondon Stock Exchange NRGG LN M1WO0EN GB-p 45 III will seek will seek $1.5 Lyxor AMLyxor ETF S&P TSX 60 Canada LCAU LN SPTSX60 USD 45 III will seek will seek $60.5 $0.0 Lyxor AMLondon Stock Exchange LCAN LN SPTSX60 GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF FTSE Coast Kuwait 40 LKUU LN GPCST001 USD 65 III yes will seek $53.9 $0.9 Lyxor AMLondon Stock Exchange LKUW LN GPCST001 GB-p 65 III yes will seek $0.0 Lyxor AMLyxor ETF S&P ASX 200 Australia LAUU LN AS51 USD 45 III will seek will seek $52.3 $0.0 Lyxor AMLondon Stock Exchange LAUS LN AS51 GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF Euro Stoxx 50 Dividends LDIV LN SX5EDFT GB-p 70 III will seek will seek $49.9 $0.1 Lyxor AMLondon Stock Exchange DIV LN SX5EDFT EUR 70 III will seek will seek $0.0 Lyxor AMLyxor ETF CRB Non-Energy LCNE LN CRYNETR GB-p 35 III yes will seek $46.9 $0.2 Lyxor AMLondon Stock Exchange LCNU LN CRYNETR USD 35 III yes will seek $0.0 Lyxor AMLyxor ETF MSCI AC Asia Ex Japan Materials TR MATA LN M1ASJMT USD 65 III will seek will seek $42.7 $0.0 Lyxor AMLondon Stock Exchange MTLG LN M1ASJMT GB-p 65 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI AC Asia ex Japan Information Tech TNOA LN M1ASJIT USD 65 III will seek will seek $42.7 $0.0 Lyxor AMLondon Stock Exchange IFNG LN M1ASJIT GB-p 65 III will seek will seek $0.0 Lyxor AMLyxor ETF India (S&P CNX Nifty) LNFT LN NIFTY GB-p 85 III yes will seek $42.6 $0.1 Lyxor AMLondon Stock Exchange LNFU LN NIFTY USD 85 III yes will seek $0.0 Lyxor AMLyxor ETF MSCI World Consumer Discretionary TR DISW LN M1WO0CD USD 45 III will seek will seek $40.8 $0.0 Lyxor AMLondon Stock Exchange DISG LN M1WO0CD GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI World Materials TR MATW LN M1WO0ML USD 45 III will seek will seek $40.7 $0.0 Lyxor AMLondon Stock Exchange MATG LN M1WO0ML GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI World Industrials TR INDW LN M1WO0IN USD 45 III will seek will seek $40.2 $0.0 Lyxor AMLondon Stock Exchange INUG LN M1WO0IN GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI AC Asia Ex Japan Financials TR FINA LN M1ASJFN USD 65 III will seek will seek $39.5 $0.0 Lyxor AMLondon Stock Exchange FNLG LN M1ASJFN GB-p 65 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI World Information Technology TR TNOW LN M1WO0IT USD 45 III will seek will seek $39.3 $0.0 Lyxor AMLondon Stock Exchange TNOG LN M1WO0IT GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI World Consumer Staples TR STAW LN M1WO0CS USD 45 III will seek will seek $38.3 $0.0 Lyxor AMLondon Stock Exchange STAG LN M1WO0CS GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI AC Asia Ex Japan Infrastructure IFRA LN M1ASJICP USD 65 III will seek will seek $38.2 $0.0 Lyxor AMLondon Stock Exchange IFRG LN M1ASJICP GB-p 65 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI World Health Care TR HLTW LN M1WO0HC USD 45 III will seek will seek $38.1 $0.0 Lyxor AMLondon Stock Exchange HLTG LN M1WO0HC GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI AC Asia EX Japan Consumer Staples STAA LN M1ASJCS USD 65 III will seek will seek $37.8 $0.0 Lyxor AMLondon Stock Exchange COSG LN M1ASJCS GB-p 65 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI World Telecommunication Services TELW LN M1WO0TC USD 45 III will seek will seek $37.6 $0.0 Lyxor AMLondon Stock Exchange TELG LN M1WO0TC GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI World Financials TR FINW LN M1WO0FN USD 45 III will seek will seek $37.1 $0.0 Lyxor AMLondon Stock Exchange FING LN M1WO0FN GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI World Utilities TR UTIW LN M1WO0UL USD 45 III will seek will seek $35.5 $0.0 Lyxor AMLondon Stock Exchange UTIG LN M1WO0UL GB-p 45 III will seek will seek $0.0 Lyxor AMLyxor ETF MSCI Emerging Markets LEME LN NDUEEGF GB-p 65 III yes will seek $32.9 $0.1 Lyxor AMLondon Stock Exchange LEMU LN NDUEEGF USD 65 III yes will seek $0.0 Lyxor AMLyxor ETF MSCI World LWOR LN NDDUWI GB-p 45 III yes will seek $31.8 $0.4 Lyxor AMLondon Stock Exchange LWOU LN NDDUWI USD 45 III yes will seek $0.0 Lyxor AMLyxor ETF MSCI USA LMUS LN NDDUUS GB-p 35 III yes will seek $27.9 $0.0 Lyxor AMLondon Stock Exchange LMUU LN NDDUUS USD 35 III yes will seek $0.1 Lyxor AMLyxor ETF FTSE 100 LYUK LN UKX GB-p 30 III yes will seek $26.8 $0.0 Lyxor AMLyxor ETF FTSE 250 L250 LN FTPTT250 GB-p 35 III yes will seek $25.7 $0.1 Lyxor AMcontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 52

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameLyxor Asset Management ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderLyxor ETF China Enterprise (HSCEI) LCHU LN HSI21 USD 65 III yes will seek $22.8 $0.1 Lyxor AMLondon Stock Exchange LCHN LN HSI21 GB-p 65 III yes will seek $0.0 Lyxor AMLyxor ETF Dow Jones Industrial Average LIND LN DJINR GB-p 50 III yes will seek $20.0 $0.1 Lyxor AMLondon Stock Exchange LINU LN DJINR USD 50 III yes will seek $0.0 Lyxor AMLyxor ETF Brazil (Ibovespa) GBP LBRZ LN IBOV GB-p 65 III yes will seek $19.1 $0.0 Lyxor AMLondon Stock Exchange LBRU LN IBOV USD 65 III yes will seek $0.0 Lyxor AMLyxor ETF JAPAN (TOPIX) LTPX LN TPXDDVD GB-p 50 III yes will seek $16.4 $0.1 Lyxor AMLondon Stock Exchange LTPU LN TPXDDVD USD 50 III yes will seek $0.0 Lyxor AMLyxor ETF iBoxx UK Gilt Inflation-Linked GILI LN DBGBGIIL GB-p 22 III n/a will seek $15.7 $0.0 Lyxor AMLyxor ETF iBoxx £ Gilts GILS LN QX6A GB-p 18 III n/a will seek $15.4 $0.0 Lyxor AMLyxor ETF iBoxx £ Corporates COUK LN IB8X GB-p 20 III n/a will seek $15.2 $0.0 Lyxor AMLyxor ETF South Africa LSAF LN TOP40TR GB-p 65 III yes will seek $15.2 $0.0 Lyxor AMLondon Stock Exchange LSAU LN TOP40TR USD 65 III yes will seek $0.0 Lyxor AMLyxor ETF MSCI Latin America LLAT LN NDUEEGFL GB-p 65 III yes will seek $13.0 $0.0 Lyxor AMLondon Stock Exchange LLAU LN NDUEEGFL USD 65 III yes will seek $0.0 Lyxor AMLyxor ETF iBoxx $ Treasuries 1-3Y US13 LN ITRR1T3 USD 16.5 III n/a will seek $12.0 $0.0 Lyxor AMLyxor ETF Eastern Europe (CECE EUR) LEEU LN CECETRE GB-p 50 III yes will seek $11.8 $0.0 Lyxor AMLondon Stock Exchange LEUU LN CECETRE USD 50 III yes will seek $0.0 Lyxor AMLyxor ETF iBoxx $ Treasuries 10Y+ US10 LN ITRR10Y USD 16.5 III n/a will seek $11.5 $0.0 Lyxor AMLyxor ETF iBoxx $ Treasuries 5-7Y US57 LN ITRR5T7 USD 16.5 III n/a will seek $11.5 $0.0 Lyxor AMLyxor ETF World Water LWAT LN WOWAX GB-p 60 III yes will seek $9.5 $0.0 Lyxor AMLondon Stock Exchange LWAU LN WOWAX USD 60 III yes will seek $0.0 Lyxor AMLyxor ETF MSCI Asia APEX 50 FAPX LN MXAPEXA USD 55 III pending will seek $8.9 $0.1 Lyxor AMLyxor ETF FTSE ALL-SHARE FTAS LN ASX GB-p 40 III pending will seek $8.7 $0.0 Lyxor AMLyxor ETF FTSE 250 250F LN MKX GB-p 35 III pending will seek $7.3 $0.0 Lyxor AMInverseLyxor ETF Bear EURO STOXX 50 BSX IX SX5T EUR 60 III no no $67.8 $0.0 Lyxor AMLyxor ETF Short CAC 40 SHC IX EUR 40 III no no $60.1 $0.0 Lyxor AMLeveragedLyxor ETF LEVDAX LYXLEDAX IX LEVDAX EUR 45 III no no $442.3 $0.1 Lyxor AMLyxor ETF Euro Stoxx 50 Daily Leverage LVE IX SX5EL EUR 40 III no no $226.7 $0.0 Lyxor AMMarshall Wace Asset Management ETFsMW TOPS Global Alpha EUR MWTE LN TOPINDXE EUR 175*** III n/a yes $186.3 $0.7 Marshall Wace AMMW TOPS Global Alpha GBP MWTS LN TOPINDX GB-p 175*** III n/a yes $105.0 $0.1 Marshall Wace AMMW TOPS Global Alpha USD MWTU LN TOPINDXU USD 175*** III n/a yes $38.9 $0.0 Marshall Wace AMMerrill Lynch ETPsOil Services HOLDRS OIH TQ OXH USD 0 ** no n/a n/a $2,133.2 $0.0 Merrill LynchSemiconductor HOLDRS SMH1 TQ XSH USD 0 ** no n/a n/a $687.2 $0.0 Merrill LynchOsmosis Investment Management ETFsOsmosis Climate Solutions ETF OCS LN OCS USDT USD 70 III yes yes $9.2 $0.0 Osmosis IMLondon Stock Exchange OCSP LN OCS USDT GB-p 70 III yes yes $0.0 Osmosis IMPowerShares ETFsPowerShares QQQ Trust QQQQ TQ NDX USD 20 no n/a n/a $22,069.9 $0.0 PowerSharesPowerShares EQQQ Fund EQQQ LN NDX GB-p 30 III yes yes $905.2 $1.1 PowerSharesPowerShares FTSE RAFI US 1000 Fund PSRF LN FR10 GB-p 39 III yes yes $51.0 $0.1 PowerSharesPowerShares Global Agriculture NASDAQ OMX Fund PSGA LN QAGR GB-p 75 III yes yes $27.3 $0.1 PowerSharesPowerShares Dynamic US Market Fund PSWC LN DYI GB-p 75 III yes yes $24.2 $0.0 PowerSharesPowerShares FTSE RAFI Europe Small-Mid Fund PSES LN FRSDEURS GB-p 50 III yes yes $19.3 $0.3 PowerSharesPowerShares FTSE RAFI All World 3000 Fund PSRW LN FRAW3 GB-p 50 III yes yes $19.3 $0.0 PowerSharesPowerShares FTSE RAFI Europe Fund PSRE LN FREU GB-p 50 III yes yes $17.5 $0.0 PowerSharesPowerShares FTSE RAFI Emerging Markets Fund PSRM LN FREM GB-p 85 III yes yes $14.9 $0.1 PowerSharesPowerShares Global Clean Energy Fund PSBW LN NEX GB-p 75 III yes yes $10.9 $0.0 PowerSharescontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.53 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NamePowerShares ETFs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderPowerShares Palisades Global Water Fund PSHO LN PIIWI GB-p 75 III yes yes $10.1 $0.0 PowerSharesPowerShares FTSE RAFI Developed 1000 PSRD LN FRD GB-p 50 III yes yes $7.6 $0.0 PowerSharesPowerShares Listed Private Equity Fund PSSP LN GLPEX GB-p 75 III yes yes $6.8 $0.0 PowerSharesPowerShares FTSE RAFI UK Fund PSRU LN QSGUK GB-p 50 III yes yes $6.5 $0.0 PowerSharesPowerShares FTSE RAFI Asia Pac Ex Japan Fund PSRA LN FRDAPXJ GB-p 80 III yes yes $5.4 $0.0 PowerSharesPowerShares FTSE RAFI Hong Kong China Fund PSRH LN FRHKG GB-p 55 III yes yes $2.2 $0.0 PowerSharesLeveraged inverseProShares UltraShort Lehman 20+ Year Treasury TBT TQ LT11TRUU USD 95 no n/a n/a $5,425.4 $0.0 ProSharesProShares UltraShort S&P500 SDS TQ SPX USD 95 no n/a n/a $2,047.5 $0.0 ProSharesProShares UltraShort QQQ QID TQ NDX USD 95 no n/a n/a $629.0 $0.0 ProSharesProShares UltraShort Financials SKF TQ DJUSFN USD 95 no n/a n/a $387.8 $0.0 ProSharesProShares UltraShort Dow30 DXD TQ INDU USD 95 no n/a n/a $378.8 $0.0 ProSharesLeveragedProShares Ultra S&P500 SSO TQ SPX USD 95 no n/a n/a $1,592.9 $0.0 ProSharesProShares Ultra Financials UYG TQ DJUSFN USD 95 no n/a n/a $1,376.4 $0.0 ProSharesProShares Ultra QQQ QLD TQ NDX USD 95 no n/a n/a $842.8 $0.0 ProSharesRBS ETFsRBS Market Access Jim RICI ETF RICI LN RICIX GBP 70 III no yes $406.2 $0.0 RBSRBS Market Access NYSE Arca Gold BUGS Index ETF GOLB LN HUI GBP 65 III no yes $288.8 $0.0 RBSRBS Market Access RICI-Metals Index ETF RICM LN ROGRIMTR GBP 60 III no yes $117.3 $0.0 RBSRBS Market Access Daxglobal Bric Index ETF BRDX LN D1A1 GBP 65 III no yes $116.7 $0.0 RBSRBS Market Access Daxglobal Russia Index ETF RUSD LN DXRP GBP 65 III no yes $102.0 $0.1 RBSRBS Market Access DaxGlobal Asia Index ETF ASDX LN DXAS GBP 65 III no yes $32.1 $0.0 RBSSociete Generale ETPsSG ETN Agricultural GBP Hedged AGCG LN SPGSAGP GBP 167 no n/a n/a $246.0 $0.0 Societe GeneraleSG ETN Agricultural EUR Hedged AGCE LN SPGSAGP EUR 225 no n/a n/a $210.6 $0.0 Societe GeneraleSG ETN Gold GBP Hedged GOLG LN XAU GBP 105 no n/a n/a $190.0 $0.6 Societe GeneraleSG ETN Gold EUR Hedged GOLE LN XAU EUR 154 no n/a n/a $162.8 $0.5 Societe GeneraleSG ETN Agricultural USD AGCU LN SPGSAGP USD 50 no n/a n/a $158.0 $0.0 Societe GeneraleSG ETN Gold USD LTNG LN XAU USD 65 no n/a n/a $152.5 $1.0 Societe GeneraleSG ETN Crude Oil GBP Hedged CRDG LN SPGSCLP GBP 219 no n/a n/a $145.2 $0.0 Societe GeneraleSG ETN Silver GBP Hedged SLVG LN XAG GBP 193 no n/a n/a $130.9 $0.0 Societe GeneraleSG ETN Crude Oil EUR Hedged CRDE LN SPGSCLP EUR 241 no n/a n/a $124.5 $0.0 Societe GeneraleSG ETN Corn GBP Hedged CONG LN SPGSCNP GBP 173 no n/a n/a $122.2 $0.0 Societe GeneraleSG ETN Soybeans GBP Hedged SOYG LN SPGSSOP GBP 149 no n/a n/a $115.5 $0.0 Societe GeneraleSG ETN Silver EUR Hedged SLVE LN XAG EUR 251 no n/a n/a $111.9 $0.0 Societe GeneraleSG ETN Wheat GBP Hedged WHEG LN SPGSWHP GBP 240 no n/a n/a $108.9 $0.0 Societe GeneraleSG ETN Corn EUR Hedged CONE LN SPGSCNP EUR 232 no n/a n/a $104.7 $0.0 Societe GeneraleSG ETN Soybeans EUR Hedged SOYE LN SPGSSOP EUR 180 no n/a n/a $99.0 $0.0 Societe GeneraleSG ETN Crude Oil USD CRDU LN SPGSCLP USD 40 no n/a n/a $93.5 $0.0 Societe GeneraleSG ETN Wheat EUR Hedged WHEE LN SPGSWHP EUR 293 no n/a n/a $93.1 $0.0 Societe GeneraleSG ETN Copper GBP Hedged COPG LN SPGSICP GBP 251 no n/a n/a $92.5 $0.0 Societe GeneraleSG ETN Silver USD SLVU LN XAG USD 50 no n/a n/a $84.5 $0.0 Societe GeneraleSG ETN S&P 500 GBP Hedged SP5G LN SPX GBP 100 no n/a n/a $81.8 $0.0 Societe GeneraleSG ETN Platinum GBP Hedged PLAG LN XPT GBP 172 no n/a n/a $79.4 $0.0 Societe GeneraleSG ETN Copper EUR Hedged COPE LN SPGSICP EUR 241 no n/a n/a $79.3 $0.0 Societe GeneraleSG ETN Corn USD CONU LN SPGSCNP USD 50 no n/a n/a $78.4 $0.0 Societe GeneraleSG ETN Aluminium GBP Hedged ALMG LN SPGSIAP GBP 179 no n/a n/a $75.6 $0.0 Societe GeneraleSG ETN Zinc GBP Hedged ZING LN SPGSIZP GBP 203 no n/a n/a $75.3 $0.0 Societe GeneraleSG ETN Soybeans USD SOYU LN SPGSSOP USD 50 no n/a n/a $74.3 $0.0 Societe GeneraleSG ETN DJ EUROSTOXX50 GBP Hedged ESXG LN SX5T GBP 90 no n/a n/a $72.1 $0.0 Societe GeneraleSG ETN MSCI JAPAN GBP Hedged JAPG LN NDDUJN GBP 450 no n/a n/a $71.8 $0.0 Societe Generalecontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 54

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameSociete Generale ETPs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderSG ETN Nickel GBP Hedged NCLG LN SPGSIKP GBP 179 no n/a n/a $71.6 $0.0 Societe GeneraleSG ETN Wheat USD WHEU LN SPGSWHP USD 50 no n/a n/a $70.2 $0.0 Societe GeneraleSG ETN Platinum EUR Hedged PLAE LN XPT EUR 209 no n/a n/a $68.1 $0.0 Societe GeneraleSG ETN Aluminium EUR Hedged ALME LN SPGSIAP EUR 197 no n/a n/a $64.7 $0.0 Societe GeneraleSG ETN Zinc EUR Hedged ZINE LN SPGSIZP EUR 218 no n/a n/a $64.6 $0.0 Societe GeneraleSG ETN Nickel EUR Hedged NCLE LN SPGSIKP EUR 175 no n/a n/a $61.4 $0.0 Societe GeneraleSG ETN NatGas GBP Hedged GASG LN SPGSNGP GBP 196 no n/a n/a $59.8 $0.0 Societe GeneraleSG ETN Copper USD COPU LN SPGSICP USD 50 no n/a n/a $59.5 $0.0 Societe GeneraleSG ETN Nat Gas EUR Hedged GASE LN SPGSNGP EUR 181 no n/a n/a $51.3 $0.0 Societe GeneraleSG ETN Platinum USD PLAU LN XPT USD 50 no n/a n/a $51.0 $0.0 Societe GeneraleSG ETN Aluminium USD ALMU LN SPGSIAP USD 50 no n/a n/a $48.7 $0.0 Societe GeneraleSG ETN Zinc USD ZINU LN SPGSIZP USD 50 no n/a n/a $48.5 $0.0 Societe GeneraleSG ETN Nickel USD NCLU LN SPGSIKP USD 50 no n/a n/a $46.2 $0.0 Societe GeneraleSG ETN NatGas USD GASU LN SPGSNGP USD 50 no n/a n/a $38.8 $0.0 Societe GeneraleSource Markets ETFsMSCI Emerging Markets Source ETF MXFS LN NDUEEGF USD 65 III n/a yes $343.2 $0.1 Source MarketsRDX Source ETF RDXS LN RDXUSD USD 65 III n/a yes $331.3 $0.5 Source MarketsFTSE 100 Source ETF S100 LN TUKXG GB-p 30 III no yes $117.1 $0.2 Source MarketsFinancials S&P US Select Sector Source ETF XLFS LN SPSUFN USD 30* III n/a yes $52.4 $2.4 Source MarketsS&P 500 VIX Source ETF VIXS LN SPVIXSTR USD 60 III n/a yes $36.9 $2.3 Source MarketsS&P 500 Source ETF SPXS LN SPTR500N USD 20 III n/a yes $23.7 $0.4 Source MarketsMSCI India Source ETF MXIS LN NDEUSIA USD 85 III n/a pending $20.8 $0.0 Source MarketsMSCI China Source ETF MXCS LN NDEUCHF USD 75 III n/a pending $19.4 $0.0 Source MarketsFTSE 250 Source ETF S250 LN FTPTT250 GB-p 35 III no yes $15.5 $1.4 Source MarketsTechnology S&P US Select Sector Source ETF XLKS LN SPSUTN USD 30* III n/a yes $12.6 $0.1 Source MarketsUtilities S&P US Select Sector Source ETF XLUS LN SPSUUN USD 30* III n/a yes $10.8 $1.0 Source MarketsBofAML Hedge Fund Factor Dollar Source ETF SMLD LN MLEIFCTR USD 70 III n/a yes $10.3 $0.0 Source MarketsEnergy S&P US Select Sector Source ETF XLES LN SPSUEN USD 30* III n/a yes $4.4 $0.0 Source MarketsIndustrials S&P US Select Sector Source ETF XLIS LN SPSUIN USD 30* III n/a yes $4.0 $0.0 Source MarketsConsumer Staples S&P US Select Sector Source XLPS LN SPSUCSN USD 30* III n/a yes $3.4 $0.0 Source MarketsMaterials S&P US Select Sector Source ETF XLBS LN SPSUMN USD 30* III n/a yes $2.6 $0.0 Source MarketsHealth Care S&P US Select Sector Source ETF XLVS LN SPSUHCN USD 30* III n/a yes $2.3 $0.0 Source MarketsConsumer Discretionary S&P US Select Sector XLYS LN SPSUCDN USD 30* III n/a yes $2.1 $0.0 Source MarketsSource Markets ETPsGold Source P-ETC SGLD LN GOLDLNPM USD 29 no n/a yes $923.8 $8.5 Source MarketsState Street Global Advisors ETFsSPDR S&P 500 SPY TQ SPX USD 9.45 no n/a n/a $89,915.3 $0.0 SSGASPDR DJ Industrial Average ETF DIA TQ INDU USD 16.7 no n/a n/a $8,729.2 $0.0 SSGAEnergy Select Sector SPDR Fund XLE TQ IXE USD 21 no n/a n/a $8,396.4 $0.0 SSGAFinancial Select Sector SPDR Fund XLF TQ IXM USD 21 no n/a n/a $7,472.5 $0.0 SSGATechnology Select Sector SPDR Fund XLK TQ IXT USD 21 no n/a n/a $5,849.3 $0.0 SSGAUtilities Select Sector SPDR Fund XLU TQ IXU USD 21 no n/a n/a $3,756.9 $0.0 SSGAIndustrial Select Sector SPDR Fund XLI TQ IXI USD 21 no n/a n/a $3,745.9 $0.0 SSGAMaterials Select Sector SPDR Trust XLB TQ IXB USD 21 no n/a n/a $2,593.6 $0.0 SSGAConsumer Discretionary Select Sector SPDR Fund XLY TQ IXY USD 21 no n/a n/a $2,478.5 $0.0 SSGASPDR KBW Bank ETF KBE TQ BKX USD 35 no n/a n/a $1,987.4 $0.0 SSGASPDR S&P Retail ETF XRT TQ SPSIRE USD 35 no n/a n/a $976.9 $0.0 SSGASPDR S&P Homebuilders ETF XHB TQ SPSIHO USD 35 no n/a n/a $874.7 $0.0 SSGAState Street Global Advisors ETPsSPDR Gold Trust GLD TQ GOLDLNPM USD 40 no n/a n/a $58,498.2 $0.0 SSGAUBS AG ETPsUBS ETC Composite GBP CMCG LN XMCGTR GBP 88 no n/a n/a $20.8 $0.0 UBS AGcontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.55 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameUBS AG ETPs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderUBS ETC Composite USD CMCI LN CMCITR USD 38 no n/a n/a $18.7 $0.0 UBS AGUBS ETC Composite EUR CMCE LN XMCETR EUR 50 no n/a n/a $17.6 $0.0 UBS AGUBS ETC Energy USD ENER LN CMENTR USD 40 no n/a n/a $9.5 $0.0 UBS AGUBS ETC Agriculture USD AGRY LN CMAGTR USD 47 no n/a n/a $8.6 $0.0 UBS AGUBS ETC WTI Crude Oil GBP OILL LN XTWCGT GBP 80 no n/a n/a $7.9 $0.0 UBS AGUBS ETC WTI Crude Oil EUR OILE LN XTWCET EUR 42 no n/a n/a $6.7 $0.0 UBS AGUBS ETC Sugar GBP SUGG LN XTSUGT GBP 113 no n/a n/a $5.4 $0.0 UBS AGUBS ETC WTI Crude Oil USD OILD LN CTWCTR USD 30 no n/a n/a $5.2 $0.0 UBS AGUBS ETC Agriculture GBP AGRG LN XMAGTR GBP 97 no n/a n/a $4.8 $0.0 UBS AGUBS ETC Precious Metals GBP PREG LN XMPGTR GBP 99 no n/a n/a $4.8 $0.0 UBS AGUBS ETC Sugar EUR SUGE LN XTSUET EUR 74 no n/a n/a $4.8 $0.0 UBS AGUBS ETC CMSP USD FLEU LN CMSPCITR USD 50 no n/a n/a $4.6 $0.0 UBS AGUBS ETC Brent USD LCOU LN CTCOTR USD 30 no n/a n/a $4.6 $0.0 UBS AGUBS ETC Natural Gas GBP NATG LN XTNGGT GBP 90 no n/a n/a $4.6 $0.0 UBS AGUBS ETC Industrial Metals USD INDU LN CMIMTR USD 37 no n/a n/a $4.6 $0.0 UBS AGUBS ETC Brent EUR LCOE LN XTCETR EUR 42 no n/a n/a $4.2 $0.0 UBS AGUBS ETC Agriculture EUR AGRE LN CMAETR EUR 55 no n/a n/a $4.1 $0.0 UBS AGUBS ETC Brent GBP LCOG LN XTCGTR GBP 80 no n/a n/a $4.0 $0.0 UBS AGUBS Bloomberg DJ-UBS Constant Maturity Comp CMDJ LN CMDJCITR USD 50 no n/a n/a $3.9 $0.0 UBS AGUBS ETC Natural Gas EUR NATE LN XTNGET EUR 52 no n/a n/a $3.9 $0.0 UBS AGUBS CMCI Active ETC USD ACTI LN CMCITRAM USD 125 no n/a n/a $3.8 $0.0 UBS AGUBS ETC CMSP GBP FLEG LN XMSPCGTR GBP 100 no n/a n/a $3.7 $0.0 UBS AGUBS CMCI Active ETC GBP ACTG LN XMCGTRAM GBP 175 no n/a n/a $3.6 $0.0 UBS AGUBS ETC Natural Gas USD NATU LN CTNGTR USD 40 no n/a n/a $3.5 $0.0 UBS AGUBS ETC Silver GBP SILG LN XTSGTR GBP 87 no n/a n/a $3.4 $0.0 UBS AGUBS CMCI Active ETC EUR ACTE LN XMCETRAM EUR 137 no n/a n/a $3.2 $0.0 UBS AGUBS ETC CMSP EUR FLEE LN CMSPCITR EUR 62 no n/a n/a $3.2 $0.0 UBS AGUBS ETC Gold GBP GLDG LN XTGGTR GBP 76 no n/a n/a $3.2 $0.0 UBS AGUBS ETC Sugar USD SUGU LN CTSBTR USD 63 no n/a n/a $3.2 $0.0 UBS AGUBS ETC Copper GBP MSUG LN XTLPGT GBP 87 no n/a n/a $3.0 $0.0 UBS AGUBS ETC Cocoa GBP COCG LN XTQCGT GBP 106 no n/a n/a $2.8 $0.0 UBS AGUBS ETC Silver EUR SILE LN XTSETR EUR 49 no n/a n/a $2.8 $0.0 UBS AGUBS ETC Gold EUR GLDE LN XTGETR EUR 38 no n/a n/a $2.7 $0.0 UBS AGUBS ETC Copper EUR MSUE LN XTLPET EUR 49 no n/a n/a $2.6 $0.0 UBS AGUBS ETC Food GBP FOOG LN XMFGTR GBP 105 no n/a n/a $2.5 $0.0 UBS AGUBS CMCI Platinum ETC GBP PLTG LN XTPLGT GBP 99 no n/a n/a $2.3 $0.0 UBS AGUBS ETC Silver USD SILU LN CTSITR USD 37 no n/a n/a $2.2 $0.0 UBS AGUBS ETC Food EUR FOOE LN XMFETR EUR 63 no n/a n/a $2.1 $0.0 UBS AGUBS ETC Gold USD GLDD LN CTGCTR USD 26 no n/a n/a $2.0 $0.0 UBS AGUBS Bloomberg DJ-UBS Constant Maturity Comp CMDG LN XMDJCGTR GBP 100 no n/a n/a $2.0 $0.0 UBS AGUBS ETC Industrial Metals GBP INDG LN XMIGTR GBP 87 no n/a n/a $2.0 $0.0 UBS AGUBS ETC Copper USD MSUU LN CTLPTR USD 37 no n/a n/a $2.0 $0.0 UBS AGUBS CMCI Platinum ETC EUR PLTE LN XTPLET EUR 61 no n/a n/a $2.0 $0.0 UBS AGUBS ETC Wheat GBP WHTG LN XTWWGT GBP 97 no n/a n/a $2.0 $0.0 UBS AGUBS ETC Wheat USD WHTU LN CTWWTR USD 47 no n/a n/a $1.9 $0.0 UBS AGUBS Bloomberg DJ-UBS Constant Maturity Comp CMDE LN XMDJCETR EUR 62 no n/a n/a $1.8 $0.0 UBS AGUBS ETC Industrial Metals EUR INDE LN XMIETR EUR 49 no n/a n/a $1.7 $0.0 UBS AGUBS ETC Corn EUR CRNE LN XTCNET EUR 59 no n/a n/a $1.6 $0.0 UBS AGUBS ETC Wheat EUR WHTE LN XTWWET EUR 59 no n/a n/a $1.6 $0.0 UBS AGUBS ETC Corn GBP CRNG LN XTCNGT GBP 97 no n/a n/a $1.6 $0.0 UBS AGUBS ETC Essence GBP ESSG LN XMLSLGT1 GBP 125 no n/a n/a $1.6 $0.0 UBS AGUBS ETC Food USD FOOD LN CMFOTR USD 55 no n/a n/a $1.6 $0.0 UBS AGcontinued…Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 56

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 38: ETFs/ETPs listed in the United Kingdom, as at year end 2010 (continued)NameUBS AG ETPs (continued)BloombergtickerIndextickerTradingccyTER(bps) UCITS UKDS UKRFAssets(US$ Mn)ADV(US$ Mn)ProviderUBS ETC Energy GBP ENRG LN XMEGTR GBP 90 no n/a n/a $1.5 $0.0 UBS AGUBS CMCI Platinum ETC USD PLTI LN CTPLTR USD 49 no n/a n/a $1.5 $0.0 UBS AGUBS ETC Precious Metals USD PREC LN CMPMTR USD 49 no n/a n/a $1.4 $0.0 UBS AGUBS ETC Aluminium GBP ALUG LN XTLAGT GBP 87 no n/a n/a $1.4 $0.0 UBS AGUBS ETC Essence EUR ESSE LN XMLSLET1 EUR 87 no n/a n/a $1.4 $0.0 UBS AGUBS ETC Precious Metals EUR PREE LN XMPETR EUR 61 no n/a n/a $1.4 $0.0 UBS AGUBS ETC Energy EUR ENRE LN XMEETR EUR 52 no n/a n/a $1.3 $0.0 UBS AGUBS ETC Corn USD CRNU LN CTCNTR USD 47 no n/a n/a $1.3 $0.0 UBS AGUBS ETC Cocoa EUR COCE LN XTQCET EUR 68 no n/a n/a $1.2 $0.0 UBS AGUBS ETC Aluminium EUR ALUE LN XTLAET EUR 49 no n/a n/a $1.2 $0.0 UBS AGUBS ETC Essence USD ESSU LN CMLSLET1 USD 75 no n/a n/a $1.0 $0.0 UBS AGUBS ETC Cocoa USD COCU LN CTQCTR USD 56 no n/a n/a $0.9 $0.0 UBS AGUBS ETC Aluminium USD ALUU LN CTLATR USD 37 no n/a n/a $0.9 $0.0 UBS AGUBS ETC Livestock USD LIVD LN CMLVTR USD 54 no n/a n/a $0.7 $0.0 UBS AGUBS ETC Livestock GBP LVSG LN XMLGTR GBP 104 no n/a n/a $0.6 $0.0 UBS AGUBS ETC Livestock EUR LIVE LN XMLETR EUR 66 no n/a n/a $0.5 $0.0 UBS AGVan Eck Associates ETFsMarket Vectors Gold Miners GDX TQ GDM USD 55 no n/a n/a $7,680.8 $0.0 Van Eck AssociatesVanguard ETFsVanguard Emerging Markets VWO TQ NDUEEGF USD 27 no n/a n/a $44,569.8 $0.0 VanguardXACT Fonder ETFsXACT OMXS30 XACTOMX IX OMX SEK 30 III no no $1,107.3 $0.0 XACT FonderXACT Nordic 30 XACTVINX IX VINX30 SEK 40 III no no $477.6 $0.0 XACT FonderXACT OMXSB XACTSBX IX SBXPI SEK 30 III no no $405.9 $0.0 XACT FonderXACT OBX OBXEXACT IX OBX NOK 30 III no no $125.1 $0.0 XACT FonderLeveraged inverseXACT OMX Bear XACBEAR IX OMX SEK 60 no no no $208.4 $0.4 XACT FonderXACT Bear 2 XABEAR2 IX OMXS30 SEK 60 no no no $58.8 $1.0 XACT FonderLeveragedXACT OMX Bull XACBULL IX OMX SEK 60 no no no $327.4 $0.4 XACT FonderXACT Bull 2 XABULL2 IX OMXS30 SEK 60 no no no $100.3 $0.3 XACT Fonder* Management fee only.** Expenses for HOLDRS consist of a custody fee of $2 per round lot (100 shares) per quarter. However, according to the HOLDRS prospectus, the trustee will waive that portionof the fee, which exceeds the total cash dividends and other cash distributions.*** Fee Structure - No investment management and performance fees charged at level of the ETF. An investment management fee of 1.5% p.a. and performance fee of 20% aboveHigh Water Mark (calculated on a quarterly basis) charged on index components into which the Fund invests. Performance fee is netted across the various componentscomprised within MW Indices plc. Admin. & Operating Fees 0.25% p.a.Note: Assets and Average Daily Volume (ADV) as at year end 2010. For ETFs/ETPs cross listed from outside the United Kingdom, assets reflects total product assets (which is notcounted in previous totals). ADV reflects reported US dollar turnover on the exchange listed. United Kingdom Distributor Status (UKDS) and United Kingdom Reporting Fund status(UKRF) are sourced from various ETF providers and HMRC and should be checked with the ETF/ETP provider before investing.Source: Global ETF Research and Implementation Strategy Team, BlackRock, Bloomberg, HMRC, various ETF/ETP providers.57 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 39: ETFs listed in the United Kingdom in 2010ETF nameDecember 2010Ticker(BB)Listingdatedb x-trackers MSCI Emerging Market Short Daily Index XEMD LN 22-Dec-10db x-trackers MSCI Emerging Market Short Daily Index XESG LN 22-Dec-10db x-trackers MSCI World Consumer Discretionary XWCD LN 20-Dec-10db x-trackers MSCI World Consumer Discretionary XWSC LN 20-Dec-10db x-trackers MSCI World Consumer Staples TRN XWSD LN 20-Dec-10db x-trackers MSCI World Consumer Staples TRN XWSS LN 20-Dec-10db x-trackers MSCI World Energy TRN Index ETF XWED LN 20-Dec-10db x-trackers MSCI World Energy TRN Index ETF XWSE LN 20-Dec-10db x-trackers MSCI World Financials TRN Index ETF XWFD LN 20-Dec-10db x-trackers MSCI World Financials TRN Index ETF XWSF LN 20-Dec-10db x-trackers MSCI World Health Care TRN Index ETF XWHD LN 20-Dec-10db x-trackers MSCI World Health Care TRN Index ETF XWSH LN 20-Dec-10db x-trackers MSCI World Industrials TRN Index ETF XWID LN 20-Dec-10db x-trackers MSCI World Industrials TRN Index ETF XWSI LN 20-Dec-10db x-trackers MSCI World Information Technology TRN XWND LN 20-Dec-10db x-trackers MSCI World Information Technology TRN XWSN LN 20-Dec-10db x-trackers MSCI World Materials TRN Index ETF XWMD LN 20-Dec-10db x-trackers MSCI World Materials TRN Index ETF XWSM LN 20-Dec-10db x-trackers MSCI World Telecommunication Services XWST LN 20-Dec-10db x-trackers MSCI World Telecommunication Services XWTD LN 20-Dec-10db x-trackers MSCI World Utilities TRN Index ETF XWSU LN 20-Dec-10db x-trackers MSCI World Utilities TRN Index ETF XWUT LN 20-Dec-10HSBC MSCI World ETF HMWO LN 10-Dec-10HSBC MSCI World ETF HMWD LN 10-Dec-10HSBC MSCI Turkey ETF HTRY LN 8-Dec-10HSBC MSCI Turkey ETF HTRD LN 8-Dec-10Lyxor ETF iBoxx $ Treasuries 10Y+ US10 LN 1-Dec-10Lyxor ETF iBoxx $ Treasuries 1-3Y US13 LN 1-Dec-10Lyxor ETF iBoxx $ Treasuries 5-7Y US57 LN 1-Dec-10Lyxor ETF iBoxx £ Corporates COUK LN 1-Dec-10Lyxor ETF iBoxx £ Gilts GILS LN 1-Dec-10Lyxor ETF iBoxx UK Gilt Inflation-Linked GILI LN 1-Dec-10MSCI Brazil Source ETF MXBS LN 1-Dec-10MSCI China Source ETF MXCS LN 1-Dec-10MSCI India Source ETF MXIS LN 1-Dec-10November 2010db x-trackers MSCI China TRN Index ETF XCS6 LN 12-Nov-10db x-trackers MSCI China TRN Index ETF XCX6 LN 12-Nov-10db x-trackers MSCI India TRN Index ETF XCS5 LN 12-Nov-10db x-trackers MSCI Malaysia TRN Index ETF XCS3 LN 12-Nov-10db x-trackers MSCI Malaysia TRN Index ETF XCX3 LN 12-Nov-10db x-trackers MSCI Thailand TRN Index ETF XCS4 LN 12-Nov-10db x-trackers MSCI Thailand TRN Index ETF XCX4 LN 12-Nov-10October 2010Lyxor ETF Euro Stoxx 50 TR MSET LN 28-Oct-10Lyxor ETF Euro Stoxx 50 TR MSEG LN 28-Oct-10HSBC MSCI Brazil ETF HBRL LN 14-Oct-10HSBC MSCI Japan ETF HMJD LN 14-Oct-10HSBC MSCI USA ETF HMUD LN 14-Oct-10ComStage ETF FTSE 100 Leveraged TR 8H84 LN 11-Oct-10ComStage ETF FTSE 100 Short Strategy TR 8H83 LN 11-Oct-10ComStage ETF FTSE 100 TR 8H81 LN 11-Oct-10ComStage ETF FTSE 250 TR 8H82 LN 11-Oct-10ComStage ETF FTSE All-Share TR 8H80 LN 11-Oct-10iShares MSCI Japan Monthly EUR Hedged IJPE LN 1-Oct-10iShares MSCI World Monthly EUR Hedged IWDE LN 1-Oct-10iShares MSCI World Monthly GBP Hedged IGWD LN 1-Oct-10iShares S&P 500 Monthly EUR Hedged IUSE LN 1-Oct-10ETF nameOctober 2010 (continued)Ticker(BB)ListingdateiShares S&P 500 Monthly GBP Hedged IGUS LN 1-Oct-10September 2010HSBC MSCI EM Far East ETF HMFE LN 28-Sep-10HSBC MSCI EM Far East ETF HMFD LN 28-Sep-10Lyxor ETF MSCI World Consumer Discretionary TR DISW LN 27-Sep-10Lyxor ETF MSCI World Consumer Discretionary TR DISG LN 27-Sep-10Lyxor ETF MSCI World Consumer Staples TR STAW LN 27-Sep-10Lyxor ETF MSCI World Consumer Staples TR STAG LN 27-Sep-10Lyxor ETF MSCI World Energy TR NRGW LN 27-Sep-10Lyxor ETF MSCI World Energy TR NRGG LN 27-Sep-10Lyxor ETF MSCI World Financials TR FINW LN 27-Sep-10Lyxor ETF MSCI World Financials TR FING LN 27-Sep-10Lyxor ETF MSCI World Health Care TR HLTW LN 27-Sep-10Lyxor ETF MSCI World Health Care TR HLTG LN 27-Sep-10Lyxor ETF MSCI World Industrials TR INDW LN 27-Sep-10Lyxor ETF MSCI World Industrials TR INUG LN 27-Sep-10Lyxor ETF MSCI World Information Technology TR TNOW LN 27-Sep-10Lyxor ETF MSCI World Information Technology TR TNOG LN 27-Sep-10Lyxor ETF MSCI World Materials TR MATW LN 27-Sep-10Lyxor ETF MSCI World Materials TR MATG LN 27-Sep-10Lyxor ETF MSCI World Telecommunication Services TR TELW LN 27-Sep-10Lyxor ETF MSCI World Telecommunication Services TR TELG LN 27-Sep-10Lyxor ETF MSCI World Utilities TR UTIW LN 27-Sep-10Lyxor ETF MSCI World Utilities TR UTIG LN 27-Sep-10Lyxor ETF MSCI AC Asia EX Japan Consumer Staples STAA LN 23-Sep-10Lyxor ETF MSCI AC Asia EX Japan Consumer Staples COSG LN 23-Sep-10Lyxor ETF MSCI AC Asia Ex Japan Financials TR FINA LN 23-Sep-10Lyxor ETF MSCI AC Asia Ex Japan Financials TR FNLG LN 23-Sep-10Lyxor ETF MSCI AC Asia ex Japan Information Tech TNOA LN 23-Sep-10Lyxor ETF MSCI AC Asia ex Japan Information Tech IFNG LN 23-Sep-10Lyxor ETF MSCI AC Asia Ex Japan Infrastructure Cap IFRA LN 23-Sep-10Lyxor ETF MSCI AC Asia Ex Japan Infrastructure Cap IFRG LN 23-Sep-10Lyxor ETF MSCI AC Asia Ex Japan Materials TR MATA LN 23-Sep-10Lyxor ETF MSCI AC Asia Ex Japan Materials TR MTLG LN 23-Sep-10iShares MSCI AC Far East ex-Japan IFFF IX 22-Sep-10iShares MSCI Russia Capped Swap RUSS LN 20-Sep-10iShares MSCI Russia Capped Swap IRSS LN 20-Sep-10iShares S&P CNX Nifty India Swap NFTY LN 20-Sep-10iShares S&P CNX Nifty India Swap NIFT LN 20-Sep-10CS ETF (IE) on MSCI UK CSUK LN 17-Sep-10CS ETF (IE) on FTSE 100 CUKX LN 16-Sep-10CS ETF (IE) on iBoxx EUR Govt 1-3 CE31 LN 16-Sep-10CS ETF (IE) on MSCI EMU CEU LN 16-Sep-10CS ETF (IE) on MSCI EMU CEU1 LN 16-Sep-10CS ETF (IE) on MSCI Europe CSE1 LN 16-Sep-10CS ETF (IE) on MSCI Europe CSEU LN 16-Sep-10CS ETF (IE) on MSCI UK Large Cap CUKL LN 16-Sep-10CS ETF (IE) on MSCI UK Small Cap CUKS LN 16-Sep-10CS ETF (Lux) on MSCI EMU Large Cap CEL1 LN 16-Sep-10CS ETF (Lux) on MSCI EMU Large Cap CEUL LN 16-Sep-10CS ETF (IE) on CSI 300 CCSI LN 15-Sep-10CS ETF (IE) on CSI 300 CCS1 LN 15-Sep-10CS ETF (IE) on Dow Jones Industrial AverageSM CID1 LN 15-Sep-10CS ETF (IE) on Dow Jones Industrial AverageSM CIND LN 15-Sep-10CS ETF (IE) on EURO STOXX 50 CS51 LN 15-Sep-10CS ETF (IE) on EURO STOXX 50 CSX5 LN 15-Sep-10continued…This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 58

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 39: ETFs listed in the United Kingdom in 2010 (continued)ETF nameSeptember 2010 (continued)Ticker(BB)ListingdateCS ETF (IE) on FTSE MIB CMIB LN 15-Sep-10CS ETF (IE) on FTSE MIB CMB1 LN 15-Sep-10CS ETF (IE) on iBoxx EUR Govt 1-3 CBE3 LN 15-Sep-10CS ETF (IE) on iBoxx EUR Govt 3-7 CE71 LN 15-Sep-10CS ETF (IE) on iBoxx EUR Govt 3-7 CBE7 LN 15-Sep-10CS ETF (IE) on iBoxx EUR Govt 7-10 CBE0 LN 15-Sep-10CS ETF (IE) on iBoxx EUR Govt 7-10 CE01 LN 15-Sep-10CS ETF (IE) on iBoxx EUR Inflation Linked CBIE LN 15-Sep-10CS ETF (IE) on iBoxx EUR Inflation Linked CIE1 LN 15-Sep-10CS ETF (IE) on iBoxx USD Govt 1-3 CU31 LN 15-Sep-10CS ETF (IE) on iBoxx USD Govt 1-3 CBU3 LN 15-Sep-10CS ETF (IE) on iBoxx USD Govt 3-7 CU71 LN 15-Sep-10CS ETF (IE) on iBoxx USD Govt 3-7 CBU7 LN 15-Sep-10CS ETF (IE) on iBoxx USD Govt 7-10 CU01 LN 15-Sep-10CS ETF (IE) on iBoxx USD Govt 7-10 CBU0 LN 15-Sep-10CS ETF (IE) on iBoxx USD Inflation Linked CBIU LN 15-Sep-10CS ETF (IE) on iBoxx USD Inflation Linked CIU1 LN 15-Sep-10CS ETF (IE) on MSCI Australia CSAU LN 15-Sep-10CS ETF (IE) on MSCI Australia CAU1 LN 15-Sep-10CS ETF (IE) on MSCI Brazil CSBR LN 15-Sep-10CS ETF (IE) on MSCI Brazil CBR1 LN 15-Sep-10CS ETF (IE) on MSCI Canada CSCA LN 15-Sep-10CS ETF (IE) on MSCI Chile CSCL LN 15-Sep-10CS ETF (IE) on MSCI Chile CCL1 LN 15-Sep-10CS ETF (IE) on MSCI EM Asia CEMA LN 15-Sep-10CS ETF (IE) on MSCI EM Asia CEA1 LN 15-Sep-10CS ETF (IE) on MSCI EM EMEA CEME LN 15-Sep-10CS ETF (IE) on MSCI EM EMEA CME1 LN 15-Sep-10CS ETF (IE) on MSCI EM Latin America CML1 LN 15-Sep-10CS ETF (IE) on MSCI EM Latin America CEML LN 15-Sep-10CS ETF (IE) on MSCI EMU Small Cap CES1 LN 15-Sep-10CS ETF (IE) on MSCI EMU Small Cap CEUS LN 15-Sep-10CS ETF (IE) on MSCI India CSIN LN 15-Sep-10CS ETF (IE) on MSCI India CIN1 LN 15-Sep-10CS ETF (IE) on MSCI Japan CSJP LN 15-Sep-10CS ETF (IE) on MSCI Japan Large Cap CJPL LN 15-Sep-10CS ETF (IE) on MSCI Japan Small Cap CJPS LN 15-Sep-10CS ETF (IE) on MSCI Korea CSKR LN 15-Sep-10CS ETF (IE) on MSCI Korea CKR1 LN 15-Sep-10CS ETF (IE) on MSCI Mexico Capped CMX1 LN 15-Sep-10CS ETF (IE) on MSCI Mexico Capped CMXC LN 15-Sep-10CS ETF (IE) on MSCI Pacific ex Japan CPXJ LN 15-Sep-10CS ETF (IE) on MSCI Pacific ex Japan CPJ1 LN 15-Sep-10CS ETF (IE) on MSCI Russia CSRU LN 15-Sep-10CS ETF (IE) on MSCI Russia CRU1 LN 15-Sep-10CS ETF (IE) on MSCI South Africa CSZA LN 15-Sep-10CS ETF (IE) on MSCI South Africa CZA1 LN 15-Sep-10CS ETF (IE) on MSCI Taiwan CSTW LN 15-Sep-10CS ETF (IE) on MSCI Taiwan CTW1 LN 15-Sep-10CS ETF (IE) on MSCI USA CSUS LN 15-Sep-10CS ETF (IE) on MSCI USA CU1 LN 15-Sep-10CS ETF (IE) on MSCI USA Large Cap CUSL LN 15-Sep-10CS ETF (IE) on MSCI USA Large Cap CUL1 LN 15-Sep-10CS ETF (IE) on MSCI USA Small Cap CUSS LN 15-Sep-10CS ETF (IE) on MSCI USA Small Cap CUS1 LN 15-Sep-10CS ETF (IE) on Nasdaq 100 CNDX LN 15-Sep-10CS ETF (IE) on Nasdaq 100 CNX1 LN 15-Sep-10CS ETF (IE) on Nikkei 225 CNKY LN 15-Sep-10ETF nameSeptember 2010 (continued)Ticker(BB)ListingdateCS ETF (IE) on S&P 500 CSPX LN 15-Sep-10CS ETF (IE) on S&P 500 CSP1 LN 15-Sep-10CS ETF (Lux) on MSCI Emerging Markets CM1 LN 15-Sep-10CS ETF (Lux) on MSCI Emerging Markets CSEM LN 15-Sep-10CS ETF (Lux) on MSCI EMU Mid Cap CEM1 LN 15-Sep-10CS ETF (Lux) on MSCI EMU Mid Cap CEUM LN 15-Sep-10HSBC MSCI Pacific ex Japan ETF HMXJ LN 7-Sep-10HSBC MSCI Pacific ex Japan ETF HMXD LN 7-Sep-10iShares Markit iBoxx Euro High Yield Bond IHYG LN 6-Sep-10iShares Markit iBoxx Euro High Yield Bond SHYG LN 6-Sep-10July 2010db x-trackers CURRENCY RETURNS ETF XCRD LN 29-Jul-10db x-trackers CURRENCY RETURNS ETF XCRG LN 29-Jul-10BofAML Hedge Fund Factor Dollar Source ETF SMLD LN 28-Jul-10HSBC MSCI Brazil ETF HMBR LN 13-Jul-10Lyxor ETF Short CAC 40 SHC IX 12-Jul-10RBS Market Access Jim RICI RICI LN 2-Jul-10RBS Market Access DaxGlobal Asia Index ETF ASDX LN 2-Jul-10RBS Market Access Daxglobal Bric Index ETF BRDX LN 2-Jul-10RBS Market Access Daxglobal Russia Index ETF RUSD LN 2-Jul-10RBS Market Access NYSE Arca Gold BUGS Index ETF GOLB LN 2-Jul-10RBS Market Access RICI-Metals Index ETF RICM LN 1-Jul-10June 2010HSBC S&P 500 ETF HSPD LN 28-Jun-10Osmosis Climate Solutions ETF OCSP LN 28-Jun-10S&P 500 VIX Source ETF VIXS LN 24-Jun-10db x-trackers DBLCI - OY Balanced ETF XBCU LN 14-Jun-10db x-trackers II UK Gilts Short Daily ETF XUGS LN 14-Jun-10db x-trackers II US Treasuries Short Daily ETF XUTS LN 14-Jun-10db x-trackers MSCI Indonesia TRN Index ETF XMID LN 14-Jun-10HSBC MSCI EUROPE ETF HMEU LN 2-Jun-10HSBC MSCI USA ETF HMUS LN 2-Jun-10May 2010S&P 500 Source ETF SPXS LN 25-May-10Lyxor ETF Euro Stoxx 50 Dividends LDIV LN 19-May-10Lyxor ETF Euro Stoxx 50 Dividends DIV LN 19-May-10Lyxor ETF S&P 500 LSPU LN 18-May-10Lyxor ETF S&P 500 LSPX LN 18-May-10Lyxor ETF S&P ASX 200 Australia LAUU LN 18-May-10Lyxor ETF S&P ASX 200 Australia LAUS LN 18-May-10Lyxor ETF S&P TSX 60 Canada LCAU LN 18-May-10Lyxor ETF S&P TSX 60 Canada LCAN LN 18-May-10db x-trackers FTSE EPRA/NAREIT Dev Europe RealEstate XDER LN 17-May-10db x-trackers FTSE EPRA/NAREIT Eurozone Real Estate XREU LN 17-May-10db x-trackers MSCI Mexico TRN Index ETF XMEX LN 17-May-10db x-trackers MSCI Mexico TRN Index ETF XMES LN 17-May-10db x-trackers S&P 500 ETF XSPX LN 17-May-10db x-trackers S&P 500 ETF XSPU LN 17-May-10HSBC S&P 500 ETF HSPX LN 17-May-10db x-trackers Euro Stoxx 50 Double Short Daily ETF XEDS LN 10-May-10db x-trackers EURO STOXX 50 Leveraged Daily ETF XEL2 LN 10-May-10db x-trackers FTSE 100 Leveraged Daily ETF XUL2 LN 10-May-10db x-trackers LevDAX Daily ETF XLDX LN 10-May-10db x-trackers MSCI Canada TRN Index ETF XCAN LN 10-May-10db x-trackers MSCI Canada TRN Index ETF XCAD LN 10-May-10db x-trackers S&P 500 2x Inverse Daily ETF XT21 LN 10-May-10continued…59 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 39: ETFs listed in the United Kingdom in 2010 (continued)ETF nameMay 2010 (continued)Ticker(BB)Listingdatedb x-trackers S&P 500 2x Inverse Daily ETF XT2D LN 10-May-10db x-trackers S&P 500 2x Leveraged Daily ETF XSL2 LN 10-May-10db x-trackers S&P 500 2x Leveraged Daily ETF XS2D LN 10-May-10db x-trackers ShortDAX 2x Daily ETF XSD2 LN 10-May-10April 2010MSCI Emerging Markets Source ETF MXFS LN 29-Apr-10iShares MSCI USA ISAM LN 26-Apr-10iShares MSCI USA SSAM LN 26-Apr-10Consumer Discretionary Select Sector SPDR Fund XLY TQ 23-Apr-10Direxion Daily Small Cap Bear 3x Shares TZA TQ 23-Apr-10Direxion Daily Small Cap Bull 3x Shares TNA TQ 23-Apr-10Energy Select Sector SPDR Fund XLE TQ 23-Apr-10Financial Select Sector SPDR Fund XLF TQ 23-Apr-10Industrial Select Sector SPDR Fund XLI TQ 23-Apr-10iShares Dow Jones US Financial Sector Index Fund IYF TQ 23-Apr-10iShares FTSE China 25 Index Fund FXI TQ 23-Apr-10iShares MSCI Brazil Index Fund EWZ TQ 23-Apr-10iShares MSCI EAFE Index Fund EFA TQ 23-Apr-10iShares MSCI Emerging Markets Index Fund EEM TQ 23-Apr-10iShares MSCI Hong Kong Index Fund EWH TQ 23-Apr-10iShares MSCI Japan Index Fund EWJ TQ 23-Apr-10iShares MSCI Taiwan Index Fund EWT TQ 23-Apr-10iShares Russell 2000 Index Fund IWM TQ 23-Apr-10Market Vectors Gold Miners GDX TQ 23-Apr-10Materials Select Sector SPDR Trust XLB TQ 23-Apr-10PowerShares QQQ Trust QQQQ TQ 23-Apr-10ProShares Ultra Financials UYG TQ 23-Apr-10ProShares Ultra QQQ QLD TQ 23-Apr-10ProShares Ultra S&P500 SSO TQ 23-Apr-10ProShares UltraShort 20+ Year Treasury TBT TQ 23-Apr-10ProShares UltraShort Dow30 DXD TQ 23-Apr-10ProShares UltraShort Financials SKF TQ 23-Apr-10ProShares UltraShort QQQ QID TQ 23-Apr-10ProShares UltraShort S&P500 SDS TQ 23-Apr-10SPDR Dow Jones Industrial Average ETF DIA TQ 23-Apr-10SPDR KBW Bank ETF KBE TQ 23-Apr-10SPDR S&P 500 SPY TQ 23-Apr-10SPDR S&P Homebuilders ETF XHB TQ 23-Apr-10SPDR S&P Retail ETF XRT TQ 23-Apr-10Technology Select Sector SPDR Fund XLK TQ 23-Apr-10Utilities Select Sector SPDR Fund XLU TQ 23-Apr-10Vanguard Emerging Markets VWO TQ 23-Apr-10HSBC FTSE 250 ETF HMCX LN 8-Apr-10March 2010HSBC MSCI Japan ETF HMJP LN 24-Mar-10iShares EURO STOXX 50 (Acc) SEUA LN 23-Mar-10ETFX DJ-UBS All Commodities Forward 3 Month Fund COMF LN 18-Mar-10ETFX DJ-UBS All Commodities Forward 3 Month Fund CMFP LN 18-Mar-10MW TOPS Global Alpha EUR MWTE LN 1-Mar-10MW TOPS Global Alpha GBP MWTS LN 1-Mar-10MW TOPS Global Alpha USD MWTU LN 1-Mar-10February 2010Osmosis Climate Solutions ETF OCS LN 8-Feb-10January 2010RDX Source ETF RDXS LN 28-Jan-10iShares EURO STOXX 50 (Acc) IEUA LN 25-Jan-10iShares MSCI Australia SAUS LN 25-Jan-10iShares MSCI Australia IAUS LN 25-Jan-10ETF nameJanuary 2010 (continued)Ticker(BB)ListingdateiShares MSCI Canada SCAN LN 25-Jan-10iShares MSCI Canada ICAN LN 25-Jan-10iShares MSCI South Africa SRSA LN 25-Jan-10iShares MSCI South Africa IRSA LN 25-Jan-10Consumer Discretionary S&P US Select Sector Source XLYS LN 5-Jan-10Consumer Staples S&P US Select Sector Source ETF XLPS LN 5-Jan-10Energy S&P US Select Sector Source ETF XLES LN 5-Jan-10Financials S&P US Select Sector Source ETF XLFS LN 5-Jan-10Health Care S&P US Select Sector Source ETF XLVS LN 5-Jan-10Industrials S&P US Select Sector Source ETF XLIS LN 5-Jan-10Materials S&P US Select Sector Source ETF XLBS LN 5-Jan-10Technology S&P US Select Sector Source ETF XLKS LN 5-Jan-10Utilities S&P US Select Sector Source ETF XLUS LN 5-Jan-10Source: Various ETF providers, exchanges, Global ETF Research and ImplementationStrategy Team, BlackRock, Bloomberg.Figure 40: ETPs listed in the United Kingdom in 2010ETP nameTicker(BB)ListingdateDecember 2010db Uranium ETC XURA LN 15-Dec-10ETFS Physical Copper PHCU LN 10-Dec-10ETFS Physical Nickel PHNI LN 10-Dec-10ETFS Physical Tin PHSN LN 10-Dec-10November 2010db Mean Reversion ETC XEM8 LN 16-Nov-10ETFS 3X Long AUD Short GBP AUP3 LN 9-Nov-10ETFS 3X Long AUD Short USD LAU3 LN 9-Nov-10ETFS 3X Long EUR Short GBP EUP3 LN 9-Nov-10ETFS 3X Long EUR Short USD LEU3 LN 9-Nov-10ETFS 3X Long GBP Short USD LGB3 LN 9-Nov-10ETFS 3X Long JPY Short GBP JPP3 LN 9-Nov-10ETFS 3X Long JPY Short USD LJP3 LN 9-Nov-10ETFS 3x Long USD Short GBP USP3 LN 9-Nov-10ETFS 3X Short AUD Long GBP SAP3 LN 9-Nov-10ETFS 3X Short AUD Long USD SAU3 LN 9-Nov-10ETFS 3X Short EUR Long GBP SUP3 LN 9-Nov-10ETFS 3X Short EUR Long USD SEU3 LN 9-Nov-10ETFS 3X Short GBP Long USD SGB3 LN 9-Nov-10ETFS 3X Short JPY Long GBP SYP3 LN 9-Nov-10ETFS 3X Short JPY Long USD SJP3 LN 9-Nov-10ETFS 3X Short USD Long GBP PUS3 LN 9-Nov-10iPath VSTOXX Mid-Term Futures Total Return ETN VSYG LN 3-Nov-10iPath VSTOXX Mid-Term Futures Total Return ETN VSXY LN 3-Nov-10July 2010db Physical Palladium ETC XPAL LN 26-Jul-10db Physical Platinum ETC XPLA LN 23-Jul-10ETFS Physical Silver PHSP IX 16-Jul-10db Agriculture Booster ETC XCT6 LN 9-Jul-10db Commodity Booster ETC XCT5 LN 9-Jul-10db Energy Booster ETC XCT8 LN 9-Jul-10db Industrial Metals Booster ETC XCT7 LN 9-Jul-10db Natural Gas Booster ETC XCT2 LN 9-Jul-10continued…This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 60

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 40: ETPs listed in the United Kingdom in 2010 (continued)ETP nameJuly 2010 (continued)Ticker(BB)Listingdatedb S&P GSCI Agriculture ETC XET6 LN 9-Jul-10db S&P GSCI Energy ETC XET8 LN 9-Jul-10db S&P GSCI Industrial Metals ETC XET7 LN 9-Jul-10db WTI Crude Oil Booster ETC XCT9 LN 9-Jul-10June 2010db Physical Gold ETC XGLD LN 23-Jun-10db Physical Silver ETC XSIL LN 23-Jun-10ETFS Long AUD Short GBP GBAU LN 21-Jun-10ETFS Long CAD Short GBP GBCA LN 21-Jun-10ETFS Long CHF Short GBP GBCH LN 21-Jun-10ETFS Long CNY Short USD LCNY LN 21-Jun-10ETFS Long CNY Short USD LCNP LN 21-Jun-10ETFS Long EUR Short GBP GBUR LN 21-Jun-10ETFS Long INR Short USD LINR LN 21-Jun-10ETFS Long INR Short USD LINP LN 21-Jun-10ETFS Long JPY Short GBP GBJP LN 21-Jun-10ETFS Long NOK Short GBP GBNO LN 21-Jun-10ETFS Long NZD Short GBP GBNZ LN 21-Jun-10ETFS Long SEK Short GBP GBSK LN 21-Jun-10ETFS Long USD Short GBP GBUS LN 21-Jun-10ETFS Short AUD Long GBP AUGB LN 21-Jun-10ETFS Short CAD Long GBP CAGB LN 21-Jun-10ETFS Short CHF Long GBP CHGB LN 21-Jun-10ETFS Short CNY Long USD SCNY LN 21-Jun-10ETFS Short CNY Long USD SCYP LN 21-Jun-10ETFS Short EUR Long GBP URGB LN 21-Jun-10ETFS Short INR Long USD SINR LN 21-Jun-10ETFS Short INR Long USD SINP LN 21-Jun-10ETFS Short JPY Long GBP JPGB LN 21-Jun-10ETFS Short NOK Long GBP NOGB LN 21-Jun-10ETFS Short NZD Long GBP NZGB LN 21-Jun-10ETFS Short SEK Long GBP SKGB LN 21-Jun-10ETFS Short USD Long GBP USGB LN 21-Jun-10db S&P GSCI ETC XET5 LN 8-Jun-10April 2010iPath Dow Jones-UBS Commodity Index Total Return ETN DJUB LN 27-Apr-10iPath S&P 500 VIX Mid-Term Futures ETN VXIM LN 27-Apr-10iPath S&P 500 VIX Short-Term Futures ETN VXIS LN 27-Apr-10iPath S&P GSCI Agriculture Index Total Return ETN AGGS LN 27-Apr-10iPath S&P GSCI Energy Index Total Return ETN NRGY LN 27-Apr-10iPath S&P GSCI Grains Index Total Return ETN SEED LN 27-Apr-10iPath S&P GSCI Index Total Return ETN SPGS LN 27-Apr-10iPath S&P GSCI Industrial Metals Index Total Return ETN IMET LN 27-Apr-10iPath S&P GSCI Livestock Index Total Return ETN MOOO LN 27-Apr-10iPath S&P GSCI Precious Metals Index Total Return ETN PMET LN 27-Apr-10iPath S&P GSCI Softs Index Total Return ETN SOFT LN 27-Apr-10iPath VSTOXX Short-Term Futures Total Return ETN VSXX LN 27-Apr-10iPath VSTOXX Short-Term Futures Total Return ETN VSXG LN 27-Apr-10SG ETN Agricultural EUR Hedged AGCE LN 27-Apr-10SG ETN Agricultural GBP Hedged AGCG LN 27-Apr-10SG ETN Agricultural USD AGCU LN 27-Apr-10SG ETN Aluminium EUR Hedged ALME LN 27-Apr-10SG ETN Aluminium GBP Hedged ALMG LN 27-Apr-10SG ETN Aluminium USD ALMU LN 27-Apr-10SG ETN Copper EUR Hedged COPE LN 27-Apr-10SG ETN Copper GBP Hedged COPG LN 27-Apr-10SG ETN Copper USD COPU LN 27-Apr-10SG ETN Corn EUR Hedged CONE LN 27-Apr-10ETP nameApril 2010 (continued)Ticker(BB)ListingdateSG ETN Corn GBP Hedged CONG LN 27-Apr-10SG ETN Corn USD CONU LN 27-Apr-10SG ETN Crude Oil EUR Hedged CRDE LN 27-Apr-10SG ETN Crude Oil GBP Hedged CRDG LN 27-Apr-10SG ETN Crude Oil USD CRDU LN 27-Apr-10SG ETN DJ EUROSTOXX50 GBP Hedged ESXG LN 27-Apr-10SG ETN Gold EUR Hedged GOLE LN 27-Apr-10SG ETN Gold GBP Hedged GOLG LN 27-Apr-10SG ETN MSCI JAPAN GBP Hedged JAPG LN 27-Apr-10SG ETN Nat Gas EUR Hedged GASE LN 27-Apr-10SG ETN NatGas GBP Hedged GASG LN 27-Apr-10SG ETN NatGas USD GASU LN 27-Apr-10SG ETN Nickel EUR Hedged NCLE LN 27-Apr-10SG ETN Nickel GBP Hedged NCLG LN 27-Apr-10SG ETN Nickel USD NCLU LN 27-Apr-10SG ETN Platinum EUR Hedged PLAE LN 27-Apr-10SG ETN Platinum GBP Hedged PLAG LN 27-Apr-10SG ETN Platinum USD PLAU LN 27-Apr-10SG ETN S&P 500 GBP Hedged SP5G LN 27-Apr-10SG ETN Silver EUR Hedged SLVE LN 27-Apr-10SG ETN Silver GBP Hedged SLVG LN 27-Apr-10SG ETN Silver USD SLVU LN 27-Apr-10SG ETN Soybeans EUR Hedged SOYE LN 27-Apr-10SG ETN Soybeans GBP Hedged SOYG LN 27-Apr-10SG ETN Soybeans USD SOYU LN 27-Apr-10SG ETN Wheat EUR Hedged WHEE LN 27-Apr-10SG ETN Wheat GBP Hedged WHEG LN 27-Apr-10SG ETN Wheat USD WHEU LN 27-Apr-10SG ETN Zinc EUR Hedged ZINE LN 27-Apr-10SG ETN Zinc GBP Hedged ZING LN 27-Apr-10SG ETN Zinc USD ZINU LN 27-Apr-10iShares Silver Trust SLV TQ 23-Apr-10Oil Services HOLDRS OIH TQ 23-Apr-10Semiconductor HOLDRS SMH1 TQ 23-Apr-10SPDR Gold Trust GLD TQ 23-Apr-10March 2010UBS Bloomberg DJ-UBS Constant Maturity Comp EUR CMDE LN 10-Mar-10UBS Bloomberg DJ-UBS Constant Maturity Comp GBP CMDG LN 10-Mar-10UBS Bloomberg DJ-UBS Constant Maturity Comp USD CMDJ LN 10-Mar-10UBS CMCI Active ETC EUR ACTE LN 10-Mar-10UBS CMCI Active ETC GBP ACTG LN 10-Mar-10UBS CMCI Active ETC USD ACTI LN 10-Mar-10UBS CMCI Platinum ETC EUR PLTE LN 10-Mar-10UBS CMCI Platinum ETC GBP PLTG LN 10-Mar-10UBS CMCI Platinum ETC USD PLTI LN 10-Mar-10UBS ETC Agriculture EUR AGRE LN 10-Mar-10UBS ETC Agriculture GBP AGRG LN 10-Mar-10UBS ETC Agriculture USD AGRY LN 10-Mar-10UBS ETC Aluminium EUR ALUE LN 10-Mar-10UBS ETC Aluminium GBP ALUG LN 10-Mar-10UBS ETC Aluminium USD ALUU LN 10-Mar-10UBS ETC Brent EUR LCOE LN 10-Mar-10UBS ETC Brent GBP LCOG LN 10-Mar-10UBS ETC Brent USD LCOU LN 10-Mar-10UBS ETC CMSP EUR FLEE LN 10-Mar-10continued…61 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockFigure 40: ETPs listed in the United Kingdom in 2010 (continued)ETP nameMarch 2010 (continued)Ticker(BB)ListingdateUBS ETC CMSP GBP FLEG LN 10-Mar-10UBS ETC CMSP USD FLEU LN 10-Mar-10UBS ETC Cocoa EUR COCE LN 10-Mar-10UBS ETC Cocoa GBP COCG LN 10-Mar-10UBS ETC Cocoa USD COCU LN 10-Mar-10UBS ETC Composite EUR CMCE LN 10-Mar-10UBS ETC Composite GBP CMCG LN 10-Mar-10UBS ETC Composite USD CMCI LN 10-Mar-10UBS ETC Copper EUR MSUE LN 10-Mar-10UBS ETC Copper GBP MSUG LN 10-Mar-10UBS ETC Copper USD MSUU LN 10-Mar-10UBS ETC Corn EUR CRNE LN 10-Mar-10UBS ETC Corn GBP CRNG LN 10-Mar-10UBS ETC Corn USD CRNU LN 10-Mar-10UBS ETC Energy EUR ENRE LN 10-Mar-10UBS ETC Energy GBP ENRG LN 10-Mar-10UBS ETC Energy USD ENER LN 10-Mar-10UBS ETC Essence EUR ESSE LN 10-Mar-10UBS ETC Essence GBP ESSG LN 10-Mar-10UBS ETC Essence USD ESSU LN 10-Mar-10UBS ETC Food EUR FOOE LN 10-Mar-10UBS ETC Food GBP FOOG LN 10-Mar-10UBS ETC Food USD FOOD LN 10-Mar-10UBS ETC Gold EUR GLDE LN 10-Mar-10UBS ETC Gold GBP GLDG LN 10-Mar-10UBS ETC Gold USD GLDD LN 10-Mar-10UBS ETC Industrial Metals EUR INDE LN 10-Mar-10UBS ETC Industrial Metals GBP INDG LN 10-Mar-10UBS ETC Industrial Metals USD INDU LN 10-Mar-10UBS ETC Livestock EUR LIVE LN 10-Mar-10UBS ETC Livestock GBP LVSG LN 10-Mar-10UBS ETC Livestock USD LIVD LN 10-Mar-10UBS ETC Natural Gas EUR NATE LN 10-Mar-10UBS ETC Natural Gas GBP NATG LN 10-Mar-10UBS ETC Natural Gas USD NATU LN 10-Mar-10UBS ETC Precious Metals EUR PREE LN 10-Mar-10UBS ETC Precious Metals GBP PREG LN 10-Mar-10UBS ETC Precious Metals USD PREC LN 10-Mar-10UBS ETC Silver EUR SILE LN 10-Mar-10UBS ETC Silver GBP SILG LN 10-Mar-10UBS ETC Silver USD SILU LN 10-Mar-10UBS ETC Sugar EUR SUGE LN 10-Mar-10UBS ETC Sugar GBP SUGG LN 10-Mar-10UBS ETC Sugar USD SUGU LN 10-Mar-10UBS ETC Wheat EUR WHTE LN 10-Mar-10UBS ETC Wheat GBP WHTG LN 10-Mar-10UBS ETC Wheat USD WHTU LN 10-Mar-10UBS ETC WTI Crude Oil EUR OILE LN 10-Mar-10UBS ETC WTI Crude Oil GBP OILL LN 10-Mar-10UBS ETC WTI Crude Oil USD OILD LN 10-Mar-10February 2010ETFS Long AUD Short USD LAUD TQ 5-Feb-10ETFS Long AUD Short USD AUDP TQ 5-Feb-10ETFS Long CAD Short USD LCAD TQ 5-Feb-10ETFS Long CAD Short USD CADP TQ 5-Feb-10ETFS Long CHF Short USD LCHF TQ 5-Feb-10ETFS Long CHF Short USD CHFP TQ 5-Feb-10ETFS Long EUR Short USD LEUR TQ 5-Feb-10ETP nameFebruary 2010 (continued)Ticker(BB)ListingdateETFS Long EUR Short USD EURP TQ 5-Feb-10ETFS Long GBP Short USD LGBP TQ 5-Feb-10ETFS Long GBP Short USD GBPP TQ 5-Feb-10ETFS Long JPY Short USD LJPY TQ 5-Feb-10ETFS Long JPY Short USD JPYP TQ 5-Feb-10ETFS Long NOK Short USD LNOK TQ 5-Feb-10ETFS Long NOK Short USD NOKP TQ 5-Feb-10ETFS Long NZD Short USD LNZD TQ 5-Feb-10ETFS Long NZD Short USD NZDP TQ 5-Feb-10ETFS Long SEK Short USD LSEK TQ 5-Feb-10ETFS Long SEK Short USD SEKP TQ 5-Feb-10ETFS Short AUD Long USD SAUD TQ 5-Feb-10ETFS Short AUD Long USD SAUP TQ 5-Feb-10ETFS Short CAD Long USD SCAD TQ 5-Feb-10ETFS Short CAD Long USD SCDP TQ 5-Feb-10ETFS Short CHF Long USD SCHF TQ 5-Feb-10ETFS Short CHF Long USD SCHP1 TQ 5-Feb-10ETFS Short EUR Long USD SEUR TQ 5-Feb-10ETFS Short EUR Long USD SEUP TQ 5-Feb-10ETFS Short GBP Long USD SGBP TQ 5-Feb-10ETFS Short GBP Long USD USD2 TQ 5-Feb-10ETFS Short JPY Long USD SJPY TQ 5-Feb-10ETFS Short JPY Long USD SJPP TQ 5-Feb-10ETFS Short NOK Long USD SNOK TQ 5-Feb-10ETFS Short NOK Long USD SNOP TQ 5-Feb-10ETFS Short NZD Long USD SNZD TQ 5-Feb-10ETFS Short NZD Long USD SNZP TQ 5-Feb-10ETFS Short SEK Long USD SSEK TQ 5-Feb-10ETFS Short SEK Long USD SSEP TQ 5-Feb-10Source: Various ETP providers, exchanges, Global ETF Research and ImplementationStrategy Team, BlackRock, Bloomberg.This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 62

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockSubscribe to ETF Landscape reportsWe publish a number of regular reports which you and your colleagues can receive via email by sending your business contact details to:ETFresearch@blackrock.com. You can also access and sign-up to our reports via our Bloomberg page at: ETFP .Monthly Global Industry HighlightsMonthly snapshot of the latest key global and regional ETF and ETPindustry trends produced in the second week of the month showingdata as at end of previous month.Quarterly Global HandbookQuarterly comprehensive guidebook to all ETFs and ETPs from allproviders listed around the world. Includes the price tickers, indextickers, annual Total Expense Ratio (TER), dividend policy, fundstructure, (AUM) as well as ETF provider websites, exchanges, andindex providers to assist in comparing the various products available.Weekly STOXX 600 European Sector ETF Net FlowsWeekly report covering the seven families of European Sector ETFNet Flows, analysing all ETFs listed in Europe tracking the STOXX600 sectors. Data reported in this analysis includes index weights,tickers, performance, futures open interest, ETF AUM, tradingvolumes and net inflows/outflows. The report is produced everyWednesday showing data as at end of previous week.Annual Review of Institutional Usersof ETFsReview of the use of ETFs listed globally by institutional investorsglobally who have reported holding one or more ETFs in their mutualfund holding disclosures, or in different filing sources including 13F,13D and 13G, proxy and other declarable stakes during any of thefour quarters of the year based on data compiled byThomson Reuters.Exposure Industry ReviewsReview of all ETFs listed around the world including exposurebreakdowns, assets, products, flows, index performance andcorrelation comparison and key tax considerations: China Commodity Emerging Market ETFs Fixed Income ETFs Real EstateRegional Industry ReviewsReview of all ETFs listed providing exposure and/or listed in theregion covered. Includes a comparison to the local mutual fundflows and index performance: Asia Pacific Canada Europe: 10 Year Anniversary of ETFs Latin America SpainIf you or your colleagues wish to subscribe to any ETF Landscape reports please email ETFresearch@blackrock.com withthe following details: Title, Name, Company, Address, Phone, and Email.63 This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material.

ETF Landscape Year End 2010United Kingdom Industry Review from BlackRockAMERICAS EMEA ASIA/PACIFICATLANTABlackRock Investment Management LLCSuite 750, 3455 Peachtree Road N.E., Atlanta,30326, GA+1.404.237.1941BLOOMFIELD HILLSBlackRock Investment Management LLCSuite 100, 39533 Woodward Avenue,Bloomfield Hills, 48304, MI+1.248.988.8700BOSTONBlackRock Capital Management IncOne Financial Center, Boston, 02111, MA+1.617.357.1200CHARLOTTEBlackRock Investment Management LLCSuite 1045, 401 North Tryon Street,Charlotte, 28202, NC+1.704.350.8400CHICAGOBlackRock Financial Management IncSuite 2900, 227 West Monroe Street,Chicago, 60606, IL+1.312.395.9300CINCINNATIBlackRock Investment Management LLCSuite 2315, 425 Walnut Street, Cincinnati, 45202, OH+1.513.579.3600DALLASBlackRock Investment Management LLCSuite 750, Premier Place, 5910 North CentralExpressway, Dallas, 75206, TX+1.214.346.7340DURHAMBlackRock Investment Management LLC2200 West Main Street, Durham, 27705, NC+1.919.416.6860FLORHAM PARKBlackRock Realty Advisors Inc3rd Floor, 300 Campus Drive, Florham Park, 07932, NJ+1.973.264.2700HOUSTONBlackRock Investment Management LLCSuite 3310, 1 Houston Center, 1221 McKinney Street,Houston, 77010, TX+1.713.658.1200JACKSONVILLEBlackRock Investment Management LLCSuite 3650, 50 North Laura Street,Jacksonville, 32202, FL+1.904.634.6084JERSEY CITYBlackRock Institutional Trust Co NASuite 1405, 525 Washington Boulevard,Jersey City, 07310, NJ+1.201.942.8737LA JOLLABlackRock Investment Management LLCSuite 200, 7825 Fay Avenue, La Jolla, 92037, CA+1.858.456.3627LOS ANGELESBlackRock Financial Management Inc37th Floor, 350 South Grand Avenue,Los Angeles, 90071, CA+1.213.613.3800MEXICO CITYImpulsora y Promotora BlackRockMexico, S.A. de C.V Torre Mayor, Paseo de la Reforma505, Piso 30 Mexico City, 06500, Mexico+52.55.5241.4300MIAMIBlackRock Investment Management LLCSuite 1820, 701 Brickell Avenue, Miami, 33131, FL+1.305.595.1126MINNEAPOLISBlackRock Investment Management LLCExecutive Suite, 80 South Eighth Street, IDS Center,Minneapolis, 55402, MN+1.612.332.3223NEW YORKBlackRock Institutional Trust Company, N.A.Park Avenue Plaza, 55 East 52nd Street,New York, 10055, NY+1.212.810.5300BlackRock Institutional Trust Company, N.A.40 East 52nd Street, New York, 10022, NY+1.212.810.5300BlackRock Institutional Trust Company, N.ASuite 4514, 200 Park Avenue, New York, 10166, NY+1.212.548.4365NEWPORT BEACHBlackRock Realty Advisors IncSuite 700, 4400 MacArthur Boulevard,Newport Beach, 92660, CA+1.949.623.0700QUEBECBlackRock Holdings Canada LimitedSuite 1730, 1000 Sherbrooke Ouest, Montreal,Quebec, H3A 3G4, Canada+1.514.843.5128PALM BEACHBlackRock Investment Management LLCPlaza Center, 1st Floor, 249 Royal Palm Way,Palm Beach, 33480, FL+1.561.366.8349PHILADELPHIABlackRock Financial Management Inc16th Floor, 2929 Arch Street, Philadelphia, 19104, PA+1.215.349.9700PHOENIXBlackRock Investment Management LLCSuite 295, 2525 East Camelback Road,Phoenix, 85016, Arizona+1.602.224.5487PITTSBURGHBlackRock Financial Management Inc19th Floor, One PNC Plaza, 249 Fifth Avenue,Pittsburgh, 15222 Pittsburgh+1.412.762.7147PRINCETON CORPORATE CAMPUSBlackRock Investment Management LLC800 Scudders Mill Road, Plainsboro, 08536, NJ+1.609.853.5600RANCHO CORDOVABlackRock Institutional Trust Co NA10815 Gold Center Drive, Rancho Cordova, 95670, CASAN FRANCISCOBlackRock Institutional Trust Company, N.A.400 Howard Street, San Francisco, 94105 CA+1.415.670.2000BlackRock Institutional Trust Company, N.A.45 Fremont Street, San Francisco 94105, CA+1.415.670.2000SANTIAGOiShares Chile Inversiones LimitadaAlcantara 200, Piso 6, Las Condes, Santiago,755-0159, ChileSAO PAULOBlackRock Brasil Gestora de Investimentos Ltd16th floor, Praca Professor Jose Lannes, 16° andar – EdBerrini 500, No 40-4/5 Andares, Sao Paulo,04571-100, Brazil+55.11.5509.3397SEATTLEBlackRock Financial Management Inc601 Union Street, Seattle, 98101, WA+1.206.613.6700ST LOUISBlackRock Investment Management LLCSuite 200, Two City Place Drive, St. Louis, 63141, MOST PETERSBURGBlackRock Investment Management LLCSuite 302, 100 Second Avenue South,St. Petersburg, 33701, FLSTAMFORDBlackRock Investment Management LLC11th Floor, 301 Tresser Boulevard, Stamford, 06904, CTTORONTOBlackRock Asset Management Canada LimitedSuite 2500 -25th Floor, 161 Bay Street, Toronto,Ontario, M5J 2S1, Canada+1.416.643.4000WASHINGTONBlackRock Investment Management LLCSuite 1120, 1800 K Street, Washington, 20006, DCWILMINGTONBlackRock Capital Management100 Bellevue Parkway, Wilmington, 19809, DE+1.302.797.2000AMSTERDAMBlackRock Advisors (UK) Limited – Dutch Branch17th Floor, Rembrandt Tower, Amstelplein 1,Amsterdam, 1096 HA, Netherlands+31.20.549.5200BRUSSELSBlackRock Investment Management (UK) Limited,Brussels BranchRegus Park Atrium, Rue des Colonies 11,Brussels, 1000, Belgium+32.2.517.6133DOUGLASBlackRock (Isle of Man) Limited3rd Floor, Atlantic House, 4-8 Circular Road,Douglas, IM1 1AG, Isle of Man+44.16.2466.2255DUBAIBlackRock Advisors (UK) Limited – Dubai Branch6th Floor, DIFC, Gate Village, Building 10, Dubai,United Arab Emirates, +971.4.365.2986EDINBURGHBlackRock (International) Investment Companies40 Torphichen Street, Edinburgh, EH3 8JB, UK+44.131.472.7200FRANKFURTBlackRock Investment Management (UK) Limited– Frankfurt BranchBockenheimer Landstrasse 2-4,Frankfurt, D-60306, Germany+69.5050.03111GENEVABlackRock Investment Management (UK) Limited(London), Zurich Branch, Geneva Office2nd Floor, Rue de Contamines 18, Case postale 3467,1211 Genève Switzerland+41.22.703.1970LONDONBlackRock Advisors (UK) LimitedMurray House, 1 Royal Mint Court, London,EC3N 4HH, UK+44.20.7668.800033 King William Street, London, EC4R 9AS, UK+44.20.7743.3000MADRIDBlackRock Investment Management (UK) Limited,Sucursal en EspañaPlaza Pablo Ruiz Picasso, nº1, Torre Picasso, Planta 14ª,28020-Madrid, Spain+34.91.788.9400MILANBlackRock Investment Management (UK) Limited– Milan BranchVia Brera, Nº 3-5, Milan, 20121 Italy+39.02.915.971MUNICHBlackRock Asset Management Deutschland AGMax-Joseph-Strasse 6, Munich, D-80333, Germany+49.89.42729.5899LUXEMBOURGBlackRock Operations (Luxembourg) S.à r.l.6D Route de Treves, Senningerberg,L-2633, Luxembourg+352.34.20101SWEDENBlackRock Investment Management (UK) Limited,Stockholm FilialMaster Samuelsgatan 1, Box 609,Stockholm, 114 11, Sweden+46.8.613.8520PARISBlackRock Advisors (UK) Limited – French BranchWashington Plaza, 42/44 rue Washington, Paris,75008, France+33.1.5643.2900PETERBOROUGHBlackRock Advisors (UK) LimitedChurch Gate, New Road, Peterborough, PE1 1TT, UK+44.17.3335.3600ST HELIERBlackRock Jersey International Holdings L.P.Forum House, Greenville Street,St. Helier, JE1 0BR, Jersey+44.15.3460.0800VIENNABlackRock Investment Management (UK) Limited(London), Zurich BranchGraben 19/9, Vienna, 1010, Austria+43.23.060.6070WARSAWBlackRock Investment Management (UK) Limited(spółka z ograniczoną odpowiedzialnością)Oddział w Polsce2nd Floor, DAGO Centrum, Rondo Onz 1,Warsaw, 00-124, Poland+48.22.544.9265ZURICHBlackRock Investment Management (UK) Limited(London), Zurich BranchClaridenstrasse 25, Zurich, 8002, Switzerland+41.44.297.7373BEIJINGBlackRock Asset Management North Asia Limited– China Representative OfficeSuite 1907, Excel Centre, No. 6 Wudinghou Street, XiCheng District, Beijing, 100140, China+86.10.6619.0558BlackRock Asset Management North Asia Limited– China Representative OfficeOffice 208-1, Winland International Finance Centre,No.7 Finance Street, Xi Cheng District,Beijing 100140 China+86.10.5833.2208BRISBANEBlackRock Investment Management(Australia) LimitedLevel 2, Waterfront Place, 1 Eagle Street,Brisbane, QLD 4000, Australia+61.7.3234.7000HONG KONGBlackRock Asset Management North Asia Limited16/F Cheung Kong Centre, 2 Queens Road,entral Hong Kong, China 1072+852.3903.2601MELBOURNEBlackRock Investment Management(Australia) LimitedLevel 18, 120 Collins Street, Melbourne,VIC 3000, Australia+61.3.9657.3000SEOULBlackRock Investment Management (UK) Limited– Seoul Representative Office23rd Floor, 84 Taepyungno 1-GA, Jung-Ga,Seoul, 100-768, Korea+82.2.751.0500SINGAPOREBlackRock Asset Management SoutheastAsia Limited23 Church Street, #13-08 Capital Square,Singapore, 04981, Singapore+65.6579.7000BlackRock Asset Management SoutheastAsia Limited#29-01 SGX Centre II, 4 Shenton Way,Singapore, 068807+65.6411.3000SYDNEYBlackRock Asset Management Australia LimitedLevel 43/44, Grosvenor Place, 225 George Street,Sydney, NSW 2000, Australia+61.2.9272.2200BlackRock Asset Management Australia LimitedLevel 41, Governor Phillip Tower, 1 Farrer Place,Sydney, NSW 2000, Australia+61.2.8223.6001TAIPAIBlackRock Asset Management28th Floor, 95 Tun Hwa South Road, Section 2,Taipai 106+886.2.2326.1600TOKYOBlackRock Asset Management Japan LimitedMaranouchi Trust Main Tower, 1-8-3 MarunouchiChiyoda-ku, Tokyo, 100-8217, Japan+886.2.2326.1600BlackRock Asset Management Japan LimitedSapia Tower, 1-7-12 Marunouchi, Chiyoda-ku,Tokyo, 100-0005, JapanWEST PERTHBlackRock Investment Management(Australia) LimitedSuite 4, Level 3, 1292 Hay Street,W. Perth, WA 6005, Australia+61.8.9229.2800This document is not an offer to buy or sell any security or to participate in any trading strategy. Please refer to important information and qualifications at the end of this material. 64

Regulatory InformationBlackRock Advisors (UK) Limited (‘BlackRock’), which is authorised and regulated by the Financial Services Authority in the United Kingdom, has issued this document for access byprofessional clients and for information purposes only. This document or any portion hereof may not be reprinted, sold or redistributed without authorisation from BlackRock.This communication is being made available to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (FinancialPromotion Order) 2005 or its equivalent under any other applicable law or regulation in the relevant jurisdiction. It is directed at persons who have professional experience in mattersrelating to investments.This document is an independent market commentary document based on publicly available information and is produced by the ETF Research and Implementation Strategy team.Specifically, this is not marketing nor is it an offer to buy or sell any security or to participate in any trading strategy. Affiliated companies of BlackRock may make markets in the securitiesof ETFs and provide ETFs in the form of iShares. Further, BlackRock and/or its affiliated companies and/or their employees may from time to time hold shares or holdings in theunderlying shares of, or options on, any security of ETFs and may as principal or agent buy securities in ETFs.This document does not provide investment advice and the information contained within should not be relied upon in assessing whether or not to invest in the products mentioned. It hasbeen prepared without regard to the individual financial circumstances and objectives of persons who receive it. The securities discussed in this commentary may not be suitable for allinvestors. BlackRock recommends that investors independently evaluate each issuer, security or instrument discussed in this publication and encourages investors to seek the advice of afinancial adviser. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.The value of and income from any investment may go up or down and an investor may not get back the amount invested. The value of the investment involving exposure to foreigncurrencies can be affected by exchange rate movements. We also remind you that the levels and bases of, and reliefs from, taxation can change and is dependent uponindividual circumstances.Although BlackRock endeavours to update and ensure the accuracy of the content of this document BlackRock does not warrant or guarantee its accuracy or correctness. Despite theexercise of all due care, some information in this document may have changed since publication. Investors should obtain and read the ETF prospectuses from the ETF Providers andconfirm any relevant information with ETF Providers before investing. Neither BlackRock, nor any affiliate, nor any of their respective, officers, directors, partners, or employees acceptsany liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents.The trademarks and service marks contained herein are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating tothe accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data.© 2011 BlackRock Advisors (UK) Limited. Registered Company No 00796793. All rights reserved. Calls may be monitored or recorded.This publication was produced by the Global ETF Research and Implementation Strategy Team at BlackRock.If you would like to sign up to receive future copies of BlackRock’s ETF Landscape series including our Monthly Industry Review, Quarterly Global Handbook and Annual Review ofInstitutional Users, please send your name, company, title, mailing address and phone number to: ETFresearch@blackrock.com.We also welcome any comments or suggestions.www.blackrock.comB-ETFLUKIR-I-YE10-EN.