Fund Description: iShares Mortgage Real Estate ETF, formerly iShares Mortgage Real Estate Capped ETF, formerly iShares FTSE NAREIT Mortgage Plus Capped 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 Mortgage Real Estate ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE NAREIT All Mortgage Capped Index. INDEX DESCRIPTION: The FTSE NAREIT All Mortgage Capped Index measures the performance of the residential and commercial mortgage real estate, mortgage finance and savings associations sectors of the U.S. equity market. As of May 31, 2010 the Index was concentrated in the real estate investment trusts (REITs) industry, which comprised approximately 63.02% of the market capitalization of the Index. FUND STRATEGY: The Fund generally will invest at least 90% of its assets in component securities and in depositary receipts representing securities in the Index. The Fund may invest up to 10% of its assets in certain futures, options, and swap contracts, cash and cash equivalents, including money market mutual funds and other exchange traded funds, including other iShares funds and stocks not included in the Index but which is believed will help the Fund track its Index. The Fund uses a passive or indexing approach to try to achieve the Fund’s investment objective. The Fund does not try to beat the Index and does not seek temporary defensive positions when markets decline or appear overvalued. The Fund may invest in securities not included in the Index in order to reflect prospective changes in the Index such as future corporate actions and index reconstitutions, additions and deletions. Representative Sampling is an indexing strategy which is used that involves investing in a representative sample of the securities included in the Index 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, earnings valuation and yield) and liquidity measures similar to those of the Index. The Fund may or may not hold all of the securities that are included in the Index. FUND MANAGEMENT: BlackRock Fund Advisors serves as the investment advisor to the Fund.