Fund Description: iShares New York Muni Bond ETF, formerly iShares New York AMT-Free Muni Bond ETF, formerly iShares S&P New York AMT-Free Municipal Bond Fund, is an exchange-traded fund or Index ETF which is a separate investment portfolio of the iShares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The iShares New York Muni Bond ETF seeks results that correspond generally to the price and yield performance, before fees and expenses, of the S&P New York AMT-Free Municipal Bond Index. INDEX DESCRIPTION: The S&P New York AMT-Free Municipal Bond Index measures the performance of the investment grade segment of the New York municipal bond market. As of May 31, 2010, there were 1,448 issues in the Index. The Index is a subset of the S&P National AMT-Free Municipal Bond Index and is comprised of municipal bonds issued in the State of New York. The Index includes municipal bonds from issuers in the State of New York that are New York state or local governments or agencies whose interest payments are exempt from U.S. federal and New York state income taxes and the federal alternative minimum tax (AMT). Each bond must have a rating of at least BBB- by Standard & Poor's Financial Services LLC, Baa3 by Moody's Investors Service, Inc., or BBB- by Fitch, Inc. Each bond must be denominated in U.S. dollars. Each bond in the Index must be a constituent of an offering where the offering's original offering amount was at least $100 million. The bond must have a minimum par amount of $25 million to be eligible for inclusion. To remain in the Index, bonds must maintain a minimum par amount greater than or equal to $25 million as of the next rebalancing date. In addition, each bond must have a minimum term to maturity and/or pre-refunded or call date greater than or equal to one calendar month to be included in the Index. The Index is a market value weighted index, and the securities in the Index are updated after the close on the last business 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 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 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 (such as return variability, duration, maturity or credit ratings and yield) and liquidity measures similar to those of the Index. The Fund generally invests at least 80% of its assets in the securities of its Index and generally invests 90% of its assets in the securities of its Index and in securities that provide substantially similar exposure to the securities in its Index. The Fund may at times invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents including money market fund as well as in municipal bonds not included in the Index, but which is believed will help the Fund track its Index. The Fund generally holds municipal bond securities issued by the State of New York and its municipalities whose interest payments are exempt from U.S. federal and New York state income tax, the federal AMT and effective beginning in 2013, a federal Medicare contribution tax of 3.8% on net investment income, including dividends, interest and capital gains. In addition, the Fund intends to invest any cash assets in one or more affiliated municipal money market funds. FUND MANAGEMENT: BlackRock Fund Advisors (BFA) serves as the investment adviser to the Fund.