Fund Description: iShares MBS ETF, formerly iShares Barclays MBS Bond Fund, formerly iShares Lehman MBS Fixed-Rate Bond 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 MBS ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Bloomberg Barclays U.S. MBS Index. INDEX DESCRIPTION: The Bloomberg Barclays U.S. MBS Index measures the performance of investment grade mortgage-backed pass-through securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. The Index includes fixed-rate mortgage pass-through securities issued by GNMA, FHLMC and FNMA that have 30-, 20-, 15-year maturities as well as hybrid adjustable rate mortgages (ARMs). All securities in the Index must have a remaining weighted average maturity of at least one year, for hybrid ARMs, must be at least one year away from initial reset, must be investment grade, and must have $250 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars and must be non-convertible. The Index is market capitalization weighted and the securities in the Index are updated on the last calendar day of each month. 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 of bonds 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 advisers to the Fund.