MUB Fund Description

The iShares National AMT-Free Muni Bond ETF tracks a market-weighted index of investment grade debt issued by state and local governments and agencies. Interest is exempt from US income tax and from AMT.

MUB ETF.com Insight

Highly popular MUB offers a broad and representative basket of muni bonds at very competitive all-in costs. The fund’s portfolio aligns reasonably well with our benchmark, with a fewtough to beat for marketlike coverage at low cost slight tilts. Revenue bonds dominate the portfolio despite slight underweighting relative to our benchmark. The fund’s 25 bp expense ratio is competitive, and its extremely strong secondary liquidity keeps transaction costs down. MUB is the investor favorite in the space, accumulating over $3B in AUM. It’s tough to beat MUB for a marketlike coverage at a low cost, making it our Analyst Pick in the segment. Note that the “AMT-Free” in MUB’s name means the interest is not subject to the alternative minimum tax or the US federal income tax but capital gains distributions will be taxed as ordinary income. (Insight updated 06/30/2014)

1 Year

Performance [as of 08/29/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

MUB
1.26% 1.55% 7.84% 11.22% 3.97% 4.70% 1.55%

MUB (NAV)
1.24% 1.45% 7.37% 10.01% 4.41% 4.78% 1.45%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

MUB Top 10 Countries

MUB Top 10 Sectors

MUB Top 10 Holdings

MUB Summary Data

BlackRock

A company that produces and manages ETFs.

09/07/07

The first date of a fund's operations, as documented by the issuer.

Open-Ended Fund

The organizational structure of the fund or ETN.

0.25%

The net total annual fee a fund holder pays to the issuer.

$3.54 B

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

$18.42 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

0.05%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 60 days, as a percent.

MUB Portfolio Data

6.7

Price sensitivity in percentage to a 100 basis point parallel shift (up or down) in interest rates.

13.1 Years

The weighted average of remaining time until maturity for all securities in the portfolio.

3.05%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

10/01/14

The date on which a security's price excludes an upcoming dividend.

2,192

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

MUB Index Data

S&P National AMT-Free
Municipal Bond Index

This is the benchmark an ETF is desigend to track or replicate.

Market Value

A set of rules that the underlying index provider follows to weight its constituent securities.

AMT-Free

A set of rules that the underlying index provider follows to select its constituent securities.

Barclays Municipal Bond Index

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to MUB

PRB, PZA, TFI

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

MUB ETF.com Efficiency Insight

With over $3B in assets, MUB is the most popular fund in a popular segment. The fund charges 25 bps, right in the middle of a narrow range of competitor fees. MUB does a good job tracking its index. With no capital gains distributions since inception, the fund remains tax efficient. (Insight updated 06/30/2014)

Total Return

Performance [as of 06/30/14] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years

MUB
-0.16% 2.27% 6.02% 6.61% 4.71% 5.09% 2.27%

MUB (NAV)
-0.02% 2.32% 5.81% 5.58% 4.80% 5.17% 2.32%

S&P National AMT-Free Municipal Bond Index
-0.01% 2.39% 5.92% 5.48% 5.01% 5.57% 2.39%

Barclays Municipal Bond Index
0.09% 2.56% 6.00% 6.14% 5.35% 5.81% 2.56%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

MUB Portfolio Management

0.25%

The net total annual fee a fund holder pays to the issuer.

0.01%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

0.15%

Largest deviation in a positive direction of a fund's returns vs. its underlying index over the past 12 months.

-0.35%

Largest deviation in a negative direction of a fund's returns vs. its underlying index over the past 12 months.

MUB Tax exposures

20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

--

The average capital gains paid out to shareholders in the past 36 months, measured as a percent of net asset value (NAV) at the time.

N/A

IRS treatment of the majority of the fund's distributions.

No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

MUB Fund Structure

Open-Ended Fund

The organizational structure of the fund or ETN.

No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

No

An indicator of whether or not a fund actively lends its portfolio holdings.

75% / 25%

The division of securities lending revenue between the fund and the issuer.

N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

N/A

The risk of default by the ETN counterparty.

Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Daily

The frequency of an issuer's disclosure of all fund holdings.

MUB ETF.com Tradability Insight

MUB trades extremely well in retail quantities and should present few problems for larger traders, too. Spreads are tight, on strong volume of over $15M on most days. Institutional investors working with market makers should also enjoy low transaction costs. Like peer funds, MUB loses points on underlying liquidity as creation/redemptions could adversely affect underlying bond prices, especially in the notoriously illiquid muni market. (Insight updated 06/30/2014)

Average Spread

Premium/Discount

Volume

MUB ETF.com/ Block LiquidityAs of 08/29/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of MUB. MUB is rated a 2 out of 5.

MUB Tradability

169,158

It is the daily number of shares traded, averaged over the past 45 trading days.

$18.42 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

150,630

Median number of shares traded over the past 45 trading days.

$16.38 M

Median dollar value of shares traded over the past 45 trading days.

0.05%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

$0.05

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

-0.03%

The middle value in the ranked set of all premium/discount values over a maximum 12-month period.

0.52% / -1.12%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

1.51

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

0.00%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

11,593

The total number of net outstanding options contracts for an ETF.

$109.81

The total market value of the assets that an ETF holds less fund expenses.

2

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

MUB ETF.com Fit Insight

MUB delivers a broad basket of muni bonds that reflects the space reasonably well. The fund aligns reasonably well with our benchmark by sector—it underweights revenue bonds slightly, though they still make up more than half of the portfolio. The fund has very comparable maturity, duration and YTM statistics as our benchmark. In all, MUB offers solid muni coverage. (Insight updated 06/30/2014)

MUB Top 5 Countries

17.26% 22.78%
15.53% 20.53%
8.53% 8.62%
4.79% 5.72%
3.72% 5.45%

MUB Top 5 Currencies

100.00% 100.00%
100.00% 100.00%

MUB Performance Statistics

0.96

The degree to which the fund and its segment benchmark move up and down in unison.

1.13

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

-0.99%

The excess return of fund relative to ETF.com segment benchmark on a risk adjusted basis. Only reported if statistically significant.

1.20

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

1.07

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

0.03%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

MUB Holdings Statistics

MUB Segment Benchmark
12.85 13.12

The weighted average of remaining time until maturity for all securities in the portfolio.

6.74 6.72

A measure of interest rate risk. Estimates change in value to the portfolio based on a 1% parallel shift in the yield curve.

0.22 0.20

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 2 year interest rates holding other rates constant.

2.56 2.53

A measure of interest rate risk. Estimates the portfolio's sensitivity to changes in 10 year interest rates holding other rates constant.

3.21% 3.05%

The weighted average yield if all securities in the portfolio were held until maturity. Assumes that interest can be reinvested at YTM rate.

6.43 6.39

Price sensitivity in percentage to a 100 basis point change (widening or narrowing) of spread relative to Treasury spot curve.

Low Low

The Herfindahl Index number – a metric of portfolio concentration where higher numbers mean higher concentration of holdings.

46,114 2,192

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

A+ AA-

Market–value–weighted average credit quality of the portfolio.

MUB Maturity Distribution

0.09% 5.24%

Percent of the portfolio's exposure to securities with 0 - 1 years until maturity.

11.37% 11.45%

Percent of the portfolio's exposure to securities with 1 - 3 years until maturity.

9.63% 8.31%

Percent of the portfolio's exposure to securities with 3 - 5 years until maturity.

8.89% 7.13%

Percent of the portfolio's exposure to securities with 5 - 7 years until maturity.

12.67% 9.35%

Percent of the portfolio's exposure to securities with 7 - 10 years until maturity

57.35% 58.53%

Percent of the portfolio's exposure to securities with 10+ years until maturity.

MUB Credit Breakdown

10.56% 12.69%

Percent of portfolio's exposure to AAA rated bonds (Investment Grade).

50.03% 53.41%

Percent of portfolio's exposure to AA rated bonds (Investment Grade).

33.05% 32.39%

Percent of portfolio's exposure to A rated bonds (Investment Grade).

5.97% 1.22%

Percent of portfolio's exposure to BBB rated bonds (Investment Grade).

0.18% 0.00%

Percent of portfolio's exposure to BB rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to B rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to CCC rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to CC rated bonds (High Yield).

0.00% 0.00%

Percent of portfolio's exposure to C rated bonds (High Yield).