basket of securities) and stocks (they trade on
exchanges intraday at market price, which may be
greater or less than net asset value). However, there
are several key differences between active mutual
funds and exchange traded funds. First, shares of
ETFs are not individually redeemed from the fund,
which insulates investors from other shareholder
activities. Mutual funds are accessed directly from
the fund company or through a select broker that
has an arrangement with the fund company to sell
their funds. Pricing generally occurs once a day and
investors buy or redeem shares of the mutual fund at
the end-of-day net asset value, less any applicable
fees. In addition, most ETFs seek to track a market
index, before fees and expenses. The structure of
active and index mutual funds is the same, but the
management strategy differs in that active mutual
funds seek to outperform their benchmark while
the goal of index mutual funds is to track their
index. Finally, transactions in shares of ETFs will
result in brokerage commissions and will generate
tax consequences. Some mutual funds may charge
sales loads or redemption fees. Both mutual funds
and ETFs are obliged to distribute portfolio gains to
shareholders. Certain traditional mutual funds can
LiÌ>ÝivwViÌ>ÃÜi°This information should not be relied upon as
research, investment advice or a recommendation
regarding any products, strategies or any security
in particular. This material is strictly for illustrative,
educational or informational purposes and is subject
to change.The iShares Funds are distributed by BlackRock
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“BlackRock”). The iShares Funds are not sponsored,
endorsed, issued, sold or promoted by MSCI Inc.,
nor does this company make any representation
regarding the advisability of investing in the Funds.
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V°iSHARES and BLACKROCK are registered
trademarks of BlackRock. All other marks are the
property of their respective owners.ICRMH1019U-963544NOVEMBER 30, 20 19 FORBES.COM74
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.International investing involves risks, including
risks related to foreign currency, limited liquidity,
less government regulation and the possibility
of substantial volatility due to adverse political,
economic or other developments. These risks
often are heightened for investments in emerging/
developing markets and in concentrations of single
countries.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. ÛiÀÃwV>Ì>`>ÃÃiÌ>V>Ì
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against market risk or loss of principal. Buying
and selling shares of ETFs will result in brokerage
commissions.Õ`ÃÌ>ÌVViÌÀ>ÌiÛiÃÌ
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industries, sectors, markets or asset classes may
underperform or be more volatile than other
industries, sectors, markets or asset classes than the
general securities market.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.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. ETFs
combine features of both mutual funds (they hold aINVEST^WITHAPURPOSEFORBES BRANDVOICE WITH iSHARES | PAID PROGRAM