1. State of the Nation for Exchange Traded Funds (ETFs) Trevor Cummings Vice President

2. 2 Growth of Exchange-Traded Funds Worldwide ETF Assets Total ($M)0.81258184074105142212310412566797 7101,0321,311 ETF Commodity Assets ETF Fixed Income Assets ETF Equity Assets # of ETFs Growth of Exchange-Traded Funds Worldwide Source: ETF Landscape, Industry Highlights, Q1 2011, BlackRock Canada.

3. 3 U.S. Exchange Traded Products - Assets Under Management Source: BlackRock Asset Management Canada Limited. Data as of 31 August 2010

4. 4 Canada ETFs - Assets Under Management Source: BlackRock Asset Management Canada Limited. Data as of 29 April 2011

5. 5 Net Inflows into Canadian ETFs YTD Net Inflows into Canadian ETFs Source: BlackRock Asset Management Canada Limited. Data as of 29 April 2011.

6. Why Have Investors Embraced ETFs? Portfolio Applications

7. 7 The Unique Value in Total Portfolio Management Value is a process of evaluation and implementation based on the relationship between return and risk, executed in a cost- and tax-efficient manner Cost RiskReturn Taxes CLIENT PORTFOLIO

8. 8 Investment Needs and Familiarity with ETFs “How familiar are you with exchange traded funds or ETFs? Please tell us using a scale of one to nine where one means not at all familiar and nine means very familiar.” Source: The Gandalf Group

9. 9 Key Findings About ETFs Relative to Mutual Funds Investors familiar with ETFs are very positive about them However, few investors in this group hold ETFs Awareness is low among those aged 50+ Only 27% say their advisor has recommended an ETF ETFs are seen to provide advantages over mutual funds of: Transparency Rate of return Preservation of capital Management fees 9 Source: The Gandalf Group

10. 10 ETFsMutual Funds  Hold baskets of securities  Obliged to distribute portfolio gains to shareholders  Trade on exchanges intraday at market price, which may be greater or less than Net Asset Value (NAV)  Shares are not individually redeemed from the fund  Transactions in shares of ETFs result in brokerage commissions and generate tax consequences  ETFs generally seek to track a market index, before fees and expenses  Accessed directly from the fund company or through a select broker and pricing generally occurs once a day  Investors buy or redeem shares at the end-of-day net asset value, less any applicable fees  Some mutual funds may charge sales loads or redemption fees  Most mutual funds are actively managed, seeking to outperform market indexes ETFs and mutual funds: various differences

11. 11 How To Take Advantage of ETFs Immediately? Fixed Income Active/Passive Mix Tactical Rotation Strategy

12. Fixed Income

13. 13 Dispersion of Fixed Income Asset Class Performance Dispersion of performance represents opportunity to manage risk, to enhance returns or income Source: PC-Bond, a business unit of TSX Inc. 12/31/10.

14. 14 Use the building blocks to exploit the opportunities Over the past 5 years, sector returns within the index hover around 5.5% The dispersion over shorter periods offers the opportunity to achieve higher returns ETF Index Total Returns (%) Source: PC-Bond, a business unit of TSX Inc. Data for month ending 29 April 2011.

15. 15 Duration Management Alter the duration of a portfolio: Efficiently adjust risk to reflect your market view – increase to reflect bullish fixed income market sentiment or reduce to implement defensive position Portfolio of several iShares ETFs with different duration Duration Increasing DurationDecreasing Duration 10 9 8 7 6 5 4 3 2 1 0 Core Bond Portfolio iShares DEX Short Term Bond Index Fund (XSB) iShares DEX Long Term Index Fund (XLB) Adjust duration exposure to manage interest rate risk

16. 16 iShares DEX All Corporate Bond Index Fund Fixed Income ETFs Offer Price Improvement Source: Bloomberg, BlackRock Asset Management Canada Limited. As of 31-May-2010.

17. 17 Using iShares Fixed Income ETFs as Building Blocks Modular family of fixed income ETFs enable investors to express views on: Credit Yield Duration Components of various DEX Indexes Relationship Between Yield, Duration and Credit Risk Source: PC-Bond, a business unit of TSX Inc. Data as of 5 May 2011. Government Long HYBrid Real Return Short Universe Corporate

18. 18 Opportunities in the Canadian Fixed Income ETF Market Total Canadian-listed Fixed Income ETFs: $9.0 billion Investors are embracing fixed income ETFs in record numbers Source: Bloomberg, BlackRock. As of 29 April 2011.

19. Active & Passive

20. 20 Core/Satellite Approach: Blending Index and Active Investments Lower overall costs Access an institutional investment process Implement tactical calls Refine rebalancing opportunities Index InvestmentsActive Investments Canadian Small-cap Emerging Markets U.S. Equities International Fixed Income Canadian Large Cap

21. 21 Creating a smoother ride: hypothetical active manager performance Source: BlackRock Asset Management Canada Limited. For illustrative purposes only; not meant to represent any specific investment. This chart shows under- and outperformance relative to a benchmark. Performance may have been positive or negative during any period.

22. Tactical Rotation Strategy

23. 23 iShares Sector Breakdown iShares Sector Breakdown (as of 31 March 2011) Source: BlackRock Asset Management Canada Limited.

24. 24 S&P Global Healthcare Sector Index: Country Breakdown S&P Global Healthcare Index – Country Breakdown (as of 31 March 2011) Source: BlackRock Asset Management Canada Limited.

25. 25 S&P Global Healthcare Sector Index - Top Companies S&P Global Healthcare Sector Index - Top Companies (%) (as of 31 March 2011) Source: BlackRock Asset Management Canada Limited.

26. 26 Sector Perspectives Outlook Global SectorPositiveNeutralNegative Consumer Discretionary Consumer Staples Energy Financials Healthcare Industrials Information Technology Materials Telecoms Utilities iShares Sector Perspectives – April 2011

27. 27 THANK YOU For more information, visit www.iShares.ca 1-866-486-4874

28. 28 This presentation is intended for accredited investors in Canada only. iShares® Funds are managed by BlackRock Asset Management Canada Limited. Commissions, management fees and expenses all may be associated with investing in iShares Funds. Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or operational charges or income taxes payable by any securityholder that would have reduced returns. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. DEX Universe Bond Index™, DEX All Corporate Bond Index™, DEX All Government Bond Index™, DEX HYBrid Bond IndexTM, DEX Long Term Bond Index™, DEX Real Return Bond Index™, and DEX Short Term Bond Index™ are trademarks of TSX Inc. and have been licensed for use for certain purposes to BlackRock Asset Management Canada Limited by PC-Bond, a business unit of TSX Inc. XBB, XCB, XGB, XHB, XLB, XRB and XSB are not sponsored, endorsed, sold or promoted by PC-Bond, TSX Inc., its affiliates or third party data providers and they make no representation, warranty, or condition regarding the advisability of investing in the funds. MSCI® and EAFE® are trademarks of MSCI, Inc. (“MSCI”). XBZ, XEM, XIN and XWD are permitted to use the MSCI mark and, as applicable, the EAFE mark pursuant to a license agreement between MSCI and BlackRock Institutional Trust Company, N.A., relating to, among other things, the license granted to BlackRock Institutional Trust Company, N.A. to use the indices. BlackRock Institutional Trust Company, N.A. has sublicensed the use of these trademarks to BlackRock Asset Management Canada Limited. XBZ, XEM, XIN and XWD are not sponsored, endorsed, sold or promoted by MSCI and MSCI makes no representation, condition or warranty regarding the advisability of investing in XBZ, XEM, XIN and XWD. © 2011 BlackRock Asset Management Canada Limited. All rights reserved. iShares® is registered trademark of BlackRock Institutional Trust Company, N.A. Used under license. BlackRock® is a registered trademark of BlackRock, Inc. Used with permission. All other trademarks, service marks or registered trademarks are the property of their respective owners.