MODERNIZATION OF THE BOND MARKET

Episode 1 Sources:

1. BlackRock, “Primed for Growth: Bond ETFs and the Path to $2 Trillion,” June 2019; global bond ETF assets were $1.322 trillion (as of June 30, 2019).
2. BlackRock, Bloomberg (as of June 30, 2020).
3. Blackrock, Bloomberg (as of May 31, 2020)
4. BlackRock, Bloomberg; ADV includes all U.S-listed bond ETFs from Feb. 24, 2020 through March 23, 2020 (data as of March 24)
5. BlackRock, Bloomberg (data as of March 24, 2020).
6. BlackRock, Bloomberg (data as of March 24, 2020).
7. Yahoo Finance, 12/31 - 5/31/2020 and (vs. 12/31 - 5/31/2019 for YoY growth)
8. IHS Markit, 12/31 - 5/31/2020
9. MarkitSERV, 12/31 - 5/31/2020
10. Cboe Exchange, 12/31 - 5/31/2020
11. Cboe Exchange, 12/31 - 5/31/2020
12. MarkitSERV, 12/31/2019 - 3/31/2020

Episode 2 Sources:

1. Bloomberg, Trace as of April 9th, 2020.
2. BlackRock, “Primed for Growth: Bond ETFs and the Path to $2 Trillion,” June 2019; global bond ETF assets were $1.322 trillion (as of June 30, 2019).

Episode 3 Sources:

Source: MarkitSERV, Cboe Exchange as of June 30, 2020

Episode 4 Sources:

1. BlackRock, Bloomberg (as of June 30, 2020).
2. Cboe Exchange (1/01 - 12/31/2019).
3. Cboe Exchange, (01/01 - 6/30/2020).
4. Bloomberg (as of July 29, 2020).

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities.

There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Shares of iShares ETFs may be bought and sold throughout the day on the exchange through any brokerage account. Shares are not individually redeemable from the ETF, however, shares may be redeemed directly from an ETF by Authorized Participants, in very large creation/redemption units. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

A fund's environmental, social and governance (“ESG”) investment strategy limits the types and number of investment opportunities available to the fund and, as a result, the fund may underperform other funds that do not have an ESG focus. A fund's ESG investment strategy may result in the fund investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards. In addition, companies selected by the index provider may not exhibit positive or favorable ESG characteristics.

A fund's use of derivatives may reduce a fund's returns and/or increase volatility and subject the fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. A fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited. There can be no assurance that any fund's hedging transactions will be effective.

There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Shares of iShares ETFs may be bought and sold throughout the day on the exchange through any brokerage account. Shares are not individually redeemable from the ETF, however, shares may be redeemed directly from an ETF by Authorized Participants, in very large creation/redemption units. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

Investment comparisons are for illustrative purposes only. To better understand the similarities and differences between investments, including investment objectives, risks, fees and expenses, it is important to read the products' prospectuses if applicable. When comparing stocks or bonds and iShares Funds, it should be remembered that management fees associated with fund investments, like iShares Funds, are not borne by investors in individual stocks or bonds.

The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.

Case study shown for illustrative purposes only. This is not meant as a guarantee of any future result or experience. This information should not be relied upon as research, investment advice or a recommendation regarding the iShares Funds or any security in particular.

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