Fund Description: iShares MSCI China Small-Cap ETF, formerly iShares MSCI China Small Cap Index 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 MSCI China Small-Cap ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Small Cap Index. INDEX DESCRIPTION: The MSCI China Small Cap Index is a free-float adjusted market capitalization weighted index designed to measure the performance of equity securities in the bottom 14% by market capitalization of the Chinese equity securities markets, as represented by the H-Share (I.E., securities of companies incorporated in the People's Republic of China that are denominated in Hong Kong dollars and listed on the Hong Kong Exchange) and B-Share (I.E., securities of companies incorporated in the People's Republic of China and listed for foreign investment on the stock exchanges in the People's Republic of China) markets. The Index also includes certain Hong Kong listed securities known as Red-Chips (issued by companies controlled by entities owned by the national government or local governments in the People's Republic of China) and P-Chips (issued by companies controlled by individuals in the People's Republic of China and deriving substantial revenues or allocating substantial assets in the People's Republic of China. As of September 1, 2010, the Index had 297 constituents approximately 52% of which were P-Chips, 20% were Red Chips, 19% were H-Shares, and 9% were B-Shares, and its three largest sectors by component weighting were consumer discretionary, industrials and materials. 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. The Fund generally invests at least 90% of its assets in securities of its Index and may invest the remainder of its assets in securities not included in its Index but which is believed will help the Fund track its Index, including assets that are not included in the Index and in futures contracts, options on futures contracts and options as well as cash and cash equivalents, including shares of money market funds. 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.