Fund Description: iShares Yield Optimized Bond ETF 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 Yield Optimized Bond ETF seeks to track the investment results of the Morningstar U.S. Bond Market Yield-Optimized Index which is composed of fixed income funds that collectively seeks to deliver current income. INDEX DESCRIPTION: The Morningstar U.S. Bond Market Yield-Optimized Index is a broadly diversified fixed income index that seeks to deliver current income. The Index is comprised of Underlying Funds within fixed income sectors that collectively have demonstrated relatively high risk adjusted income on a consistent basis and meet liquidity characteristics as determined by Morningstar Inc.’s proprietary index methodology. The goal of the Index is to represent an allocation to four distinct fixed income sectors, with the exposure to each sector capped at a specified amount of the Index. The four sectors currently included in the Index and each sector's respective current caps are: no more than 50% government related fixed income securities, no more than 50% securitized fixed income securities, no more than 50% investment-grade credit securities and no more than 20% non-investment-grade credit securities. These four sectors are represented by Underlying Funds that the index provider, Morningstar, considers to deliver higher risk adjusted yields . Each fixed income sector has its own return and risk profile. The combined allocation percentages of the four represented sectors may equal less than 100%. The Index is rebalanced and reconstituted quarterly. The Index may include large-, mid- or small-capitalization companies and securities issued by sovereign entities. The components of the Index primarily include industrials companies and mortgage-backed pass-through and treasury securities. The components of the Index, and the degree to which these components represent certain industries, may change over time. FUND STRATEGY: The Fund is a fund of funds and seeks to track the investment results of the Index. The Fund invests primarily in Underlying Funds that themselves seek investment results corresponding to their own indexes. The Fund also invests in a combination of other exchange-traded funds (including other iShares ETFs), cash and cash equivalents, including shares of money market funds. 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 it tracks and does not seek temporary defensive positions when markets decline or appear overvalued. Indexing may eliminate the chance that the Fund will substantially outperform the 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. Representative sampling is an indexing strategy that is used that 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. The Fund or an Underlying Fund may or may not hold all of the securities in its Index. The Fund generally invests at least 90% of its assets in securities of the. However, the Fund may at times invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents, including BlackRock Cash Funds, as well as in individual securities and other ETFs not included in the Index. FUND MANAGEMENT: BlackRock Fund Advisors (BFA) serves as the investment adviser to the Fund.