Fund Description: iShares Core Moderate Allocation ETF, formerly iShares Moderate Allocation ETF, formerly iShares S&P Moderate Allocation Fund is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the iShares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The iShares Core Moderate Allocation ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Target Risk Moderate Index. The Fund is designed for investors seeking current income, some capital preservation and an opportunity for moderate to low capital appreciation. INDEX DESCRIPTION: The S&P Target Risk Moderate Index measures the performance of S&P's proprietary allocation model, which is intended to represent a moderate target risk allocation strategy. The Index is designed to measure risk-adjusted exposure to a diversified array of financial assets. Each year Standard & Poor's estimates a value-weighted market portfolio whose estimate is intended to represent a large proportion of globally traded stocks and bonds. The Index is constructed to have high correlation with the market portfolio, subject to specific shortfall risk constraints for each target risk level. The asset class mix of the Index is determined once per year, and adjusted for specific target risk levels. The Index is fully investable, with varying levels of exposure to equities and fixed income through allocations in the Funds. The Index uses two innovative features to offer risk-sensitive exposure to multiple asset classes. First, a value-weighted market portfolio is identified. Second, a shortfall, or downside, risk control framework is employed that is intended to provide insight into the potential for negative returns over a given holding period and adjusts the weightings of components in the market portfolio to tailor the risk profile to match the risk targeted by the Index. At each rebalancing, the Index is optimized to maintain high correlation with the combined equity and fixed income opportunity set identified in the market portfolio, subject to the specific shortfall risk constraints identified for each risk level. Components of the Index primarily include consumer discretionary, financials and information technology companies which may change over time. FUND STRATEGY: A passive or indexing approach is used to try to achieve the Fund's investment objective. Unlike many investment companies, the Fund does not try to beat the Index and does not seek temporary defensive positions when markets decline or appear overvalued. Indexing may eliminate the chance that the Fund will substantially outperform its Index but also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies. As of February 2, 2015, the Fund invests a fixed allocation of 40% of its assets in Funds that invest primarily in equity securities and 60% of its assets in Funds that invest primarily in bonds. Representative sampling is an indexing strategy that is used which involves investing in a representative sample of securities that collectively has an investment profile similar to the Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index. A Fund may or may not hold all of the securities in the Index. FUND MANAGEMENT: BlackRock Fund Advisors (BFA) serves as the investment adviser to the Fund.