IShares: The Next Generation ETF John Schmidt Raymond Ng Lisa lajeunesse Kevin Kranzler John Schmidt Raymond Ng Lisa lajeunesse Kevin Kranzler

iShares: The Next Generation ETF

iShares: The Next Generation ETF

John SchmidtRaymond Ng

Lisa lajeunesseKevin Kranzler

John SchmidtRaymond Ng

Lisa lajeunesseKevin Kranzler

AgendaAgenda

Three ETF’s to be discussed: iShares CDN S&P 500 Index Fund (XSP)

iShares Dow Jones Canadian Dividend (XDV)

iShares MSCI EAFE Index Fund (XIN)

Three ETF’s to be discussed: iShares CDN S&P 500 Index Fund (XSP)

iShares Dow Jones Canadian Dividend (XDV)

iShares MSCI EAFE Index Fund (XIN)

What are iShares?What are iShares?

125 Exchange Traded Funds, traded on global exchanges

trade on the TSX just like a normal share

“in kind” creation and redemption process

125 Exchange Traded Funds, traded on global exchanges

trade on the TSX just like a normal share

“in kind” creation and redemption process

iShares CDN S&P 500 Index Fund


Overview: Replicates the performance of the S&P 500

Hedged to Canadian Dollars Fund Commenced May 2001 Started hedging returns November 2005

Overview: Replicates the performance of the S&P 500

Hedged to Canadian Dollars Fund Commenced May 2001 Started hedging returns November 2005



The S&P 500 Index: Market capitalization weighted index of securities of the 500 largest US public issuers

MER 0.15% 0.09% fee paid to Barclays Canada 0.24% total

The S&P 500 Index: Market capitalization weighted index of securities of the 500 largest US public issuers

MER 0.15% 0.09% fee paid to Barclays Canada 0.24% total



Net Asset Value Calculated daily at market close Calculated in Canadian Dollars

Income Distribution Distributed at least once each year

Either paid in cash or reinvested






NAV since inception

0

5

10

15

20

25

5/30/059/30/051/30/065/30/069/30/061/30/075/30/079/30/071/30/085/30/089/30/081/30/095/30/099/30/091/30/105/30/109/30/10

NAV since inception



Returns

02468

1012141618

2003 1st Quarter2003 2nd Quarter2003 3rd Quarter2003 4th Quarter2004 1st Quarter2004 2nd Quarter2004 3rd Quarter2004 4th Quarter2005 1st Quarter2005 2nd Quarter2005 3rd Quarter2005 4th Quarter2006 1st Quarter

High

Low









Investment Risk General risks associated with investing

Foreign investment risk Currency risk Risk of iShare price differing than NAV


Foreign investment risk Currency risk Risk of iShare price differing than NAV



Investor Suitability Great for rounding out a portfolio

Has risks for Canadian Investors

Good for a conservative investor with a long time horizon


Has risks for Canadian Investors


iShares Dow Jones Canadian Dividend

(XDV)


(XDV) Overview

Attempts to replicate the Dow Jones Canada Select Dividend Index

The Index is comprised of 30 of the highest yielding and dividend paying companies

Fund started December 2005 MER

Capped at 0.5%

Overview Attempts to replicate the Dow Jones Canada Select Dividend Index

The Index is comprised of 30 of the highest yielding and dividend paying companies

Fund started December 2005 MER

Capped at 0.5%


(XDV)


(XDV)


(XDV)


(XDV)


(XDV)


(XDV)


(XDV)


(XDV)


(XDV)


(XDV) Investment Risk

General risks associated with investing

Risk of iShare price differing than NAV

Risk of non-capitalization weighted strategy


Risk of iShare price differing than NAV

Risk of non-capitalization weighted strategy


(XDV)


(XDV) Investor Suitability

Great for rounding out a portfolio




iShares MSCI EAFE Index Fund (XIN)iShares MSCI EAFE Index Fund (XIN)

Overview: ETF is based on the MSCI EAFE Index

Returns are hedged to Canadian currency

Index Outline Comprised of 21 different country indices

Represents developed markets outside of North America

Overview: ETF is based on the MSCI EAFE Index

Returns are hedged to Canadian currency

Index Outline Comprised of 21 different country indices

Represents developed markets outside of North America



MER 0.15% Trustee Fee 0.35% ishare Fee 0.50% total

History Started trading September 6, 2001

Hedged to CAD$ November 2005

MER 0.15% Trustee Fee 0.35% ishare Fee 0.50% total

History Started trading September 6, 2001

Hedged to CAD$ November 2005













Investor Risk General risks associated with investing

Currency risk Risk of ishare price differing than NAV

Foreign investment risk

Investor Risk General risks associated with investing

Currency risk Risk of ishare price differing than NAV

Foreign investment risk


Investor Suitability Good addition to a portfolio Targets a conservative investor looking for international exposure

Investor Suitability Good addition to a portfolio Targets a conservative investor looking for international exposure

Thank You For Your Time

Thank You For Your Time

Documents

IShares: The Next Generation ETF John Schmidt Raymond Ng Lisa lajeunesse Kevin Kranzler John Schmidt Raymond Ng Lisa lajeunesse Kevin Kranzler