485APOS 1 d575351d485apos.htm FORM 485APOS FOR ISHARES TRUST Form 485APOS for iShares Trust
Table of Contents

As filed with the U.S. Securities and Exchange Commission on July 30, 2013

File Nos. 333-92935 and 811-09729

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-1A

REGISTRATION STATEMENT

UNDER

   THE SECURITIES ACT OF 1933    x
   Post-Effective Amendment No. 937    x

and/or

REGISTRATION STATEMENT

UNDER

   THE INVESTMENT COMPANY ACT OF 1940    x
   Amendment No. 937    x
   (Check appropriate box or boxes)   

 

 

iShares Trust

(Exact Name of Registrant as Specified in Charter)

 

 

c/o State Street Bank and Trust Company

200 Clarendon Street

Boston, MA 02116

(Address of Principal Executive Office)(Zip Code)

Registrant’s Telephone Number, including Area Code: (415) 670-2000

The Corporation Trust Company

1209 Orange Street

Wilmington, DE 19801

(Name and Address of Agent for Service)

 

 

With Copies to:

 

MARGERY K. NEALE, ESQ.

WILLKIE FARR &

GALLAGHER LLP

787 SEVENTH AVENUE

NEW YORK, NY 10019-6099

  

BENJAMIN J. HASKIN, ESQ.

WILLKIE FARR &

GALLAGHER LLP

1875 K STREET, N.W.

WASHINGTON, D.C. 20006-1238

  

EDWARD BAER, ESQ.

BLACKROCK FUND

ADVISORS

400 HOWARD STREET

SAN FRANCISCO, CA 94105

 

 

It is proposed that this filing will become effective (check appropriate box):

 

¨ Immediately upon filing pursuant to paragraph (b)
¨ On (date) pursuant to paragraph (b)
x 60 days after filing pursuant to paragraph (a)(1)
¨ On (date) pursuant to paragraph (a)(1)
¨ 75 days after filing pursuant to paragraph (a)(2)
¨ On (date) pursuant to paragraph (a)(2)

If appropriate, check the following box:

 

  x This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

 

 

 


Table of Contents
________, 2013
2013 Prospectus

iShares Australian Dollar ETF  | AUDS | NYSE ARCA
iShares British Pound ETF  | GBPS | NYSE ARCA
iShares Canadian Dollar ETF  | CADS | NYSE ARCA
iShares Chinese Offshore Renminbi ETF  | CNHS | NYSE ARCA
iShares Euro ETF  | EURS | NYSE ARCA
iShares Japanese Yen ETF  | JPYS | NYSE ARCA
iShares Mexican Peso ETF  | MXNS | NYSE ARCA
iShares New Zealand Dollar ETF  | NZDS | NYSE ARCA
iShares Norwegian Krone ETF  | NOKS | NYSE ARCA
iShares Singapore Dollar ETF  | SGDS | NYSE ARCA
iShares Swedish Krona ETF  | SEKS | NYSE ARCA
iShares Swiss Franc ETF  | CHFS | NYSE ARCA
iShares Thai Offshore Baht ETF  | THBS | NYSE ARCA
iShares Turkish Lira ETF  | TRYS | NYSE ARCA
The information in this Prospectus is not complete and may be changed. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. The securities described herein may not be sold until the registration statement becomes effective. This Prospectus is not an offer to sell or the solicitation of an offer to buy securities and is not soliciting an offer to buy these securities in any state in which the offer, solicitation or sale would be unlawful.
The Securities and Exchange Commission (“SEC”) has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.


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iSHARES® AUSTRALIAN DOLLAR ETF

Ticker: AUDS Stock Exchange: NYSE Arca
Investment Objective
The iShares Australian Dollar ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Australian dollar against the United States dollar and the yield of the Australian dollar, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.20%   None   None   0.18%   0.38%   (0.18%)   0.20%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $20   $74    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Australian dollar (against delivery of the United States dollar). The strategy of
combining investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Australian dollar, reflecting the increase or decrease in the exchange rate of the Australian dollar against the United States dollar and the yield of the Australian dollar, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Australian dollar, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar
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demand deposits denominated in the Australian dollar from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Australian dollar. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Australian dollar.
Commodity Exposure Risk. The Australian economy is susceptible to fluctuations in certain commodity markets. Any negative changes in commodity markets could have an adverse impact on the Australian economy.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Australian dollar. As a result, the value of the Fund will be subject to changes in the exchange rate between the Australian dollar and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Australia. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Australian dollar against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Australian dollar). Exchange rates may be volatile and may change quickly and unpredictably in response to
both global economic developments and economic conditions in Australia and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Australia.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Australian dollar, short-term debt securities or other investments.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Australian dollar, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
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Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Australian dollar and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.
Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Australian dollar is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Australian dollar. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Australian dollar.
Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is
specifically exposed to Australasian Economic Risk and U.S. Economic Risk.

Risk of Investing in Australia. Investment exposure to the Australian dollar will subject the Fund to economic risks specific to Australia. By making investments designed to produce the return of an investment in the Australian dollar, the Fund will be subject to regulatory, political, currency, security, and economic risks specific to Australia. The Australian economy is heavily dependent on exports from the agricultural and mining sectors. This makes the Australian economy susceptible to fluctuations in the commodity markets. Australia is also dependent on trading with key trading partners.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Australian dollar relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Australian dollar, which may differ from the price used by the Fund to calculate its NAV.
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Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® BRITISH POUND ETF

Ticker: GBPS Stock Exchange: NYSE Arca
Investment Objective
The iShares British Pound ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the British pound against the United States dollar and the yield of the British pound, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.20%   None   None   0.18%   0.38%   (0.18%)   0.20%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $20   $74    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the British pound (against delivery of the United States dollar). The strategy of combining investments in short-term debt securities and spot foreign
exchange contracts is designed to provide financial exposure substantially similar to a purchase of the British pound, reflecting the increase or decrease in the exchange rate of the British pound against the United States dollar and the yield of the British pound, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the British pound, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar demand deposits denominated in the British pound from time to time when BFA believes these securities may help the Fund to
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achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the British pound. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the British pound.

Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the British pound. As a result, the value of the Fund will be subject to changes in the exchange rate between the British pound and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in the United Kingdom. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.

Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the British pound against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the British pound). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in the United Kingdom and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in the United Kingdom.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the British pound, short-term debt securities or other investments.

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the British pound, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
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Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the British pound and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.

Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the British pound is impaired, the Fund may not be able to achieve its investment objective.

Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the British pound. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the British pound.

Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to European Economic Risk and U.S. Economic Risk.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the
economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Risk of Investing in the United Kingdom. Investment exposure to the British pound will subject the Fund to regulatory, political, currency, security, and economic risks specific to the United Kingdom. The United Kingdom has one of the largest economies in Europe, and the United States and other European countries are substantial trading partners of the United Kingdom. As a result, the British economy may be impacted by changes to the economic health of the United States and other European countries. The British economy, along with certain other European economies, experienced a significant economic slowdown during the recent financial crisis; certain British financial institutions were severely under-capitalized and required government intervention to survive.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the British pound relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same British pound, which may differ from the price used by the Fund to calculate its NAV.

Yield Risk. The Fund’s yield is designed to reflect the overnight cash rate of the British pound, less Fund operating expenses. The overnight cash rate of the British pound may from time to time be very low, zero or negative. When the overnight cash rate of the British pound is lower than the Fund’s operating expenses, the Fund will experience a “negative yield,” or daily loss, before taking into account the effect of currency movements. If the Fund has a negative yield, it will lose money absent positive currency
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movements. There is no guarantee that the Fund will experience positive currency movements to offset losses from a negative yield.
Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 25,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and
redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® CANADIAN DOLLAR ETF

Ticker: CADS Stock Exchange: NYSE Arca
Investment Objective
The iShares Canadian Dollar ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Canadian dollar against the United States dollar and the yield of the Canadian dollar, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.20%   None   None   0.18%   0.38%   (0.18%)   0.20%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $20   $74    

Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Canadian dollar (against delivery of the United States dollar). The strategy of
combining investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Canadian dollar, reflecting the increase or decrease in the exchange rate of the Canadian dollar against the United States dollar and the yield of the Canadian dollar, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Canadian dollar, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar
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demand deposits denominated in the Canadian dollar from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Canadian dollar. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Canadian dollar.
Commodity Exposure Risk. The Canadian economy is susceptible to fluctuations in certain commodity markets. Any negative changes in commodity markets could have an adverse impact on the  Canadian economy.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Canadian dollar. As a result, the value of the Fund will be subject to changes in the exchange rate between the Canadian dollar and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Canada. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Canadian dollar against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Canadian dollar). Exchange rates may be volatile and may change quickly and unpredictably in response to both global
economic developments and economic conditions in Canada and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Canada.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Canadian dollar, short-term debt securities or other investments.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Canadian dollar, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
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Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Canadian dollar and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.
Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Canadian dollar is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Canadian dollar. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Canadian dollar.
Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is
specifically exposed to Asian Economic Risk, European Economic Risk and North American Economic Risk.

Risk of Investing in Canada. Investment exposure to the Canadian dollar will subject the Fund to economic risk specific to Canada. Among other things, the Canadian economy is heavily dependent on relationships with certain key trading partners, including the United States, European Union countries and China. The Canadian economy is sensitive to fluctuations in certain commodity markets.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Canadian dollar relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Canadian dollar, which may differ from the price used by the Fund to calculate its NAV.
Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
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Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® CHINESE OFFSHORE RENMINBI ETF

Ticker: CNHS Stock Exchange: NYSE Arca
Investment Objective
The iShares Chinese Offshore Renminbi ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Chinese offshore renminbi against the United States dollar and the yield of the Chinese offshore renminbi, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.30%   None   None   0.18%   0.48%   (0.18%)   0.30%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $31   $106    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Chinese offshore renminbi (against delivery of the United States dollar). The
Chinese offshore renminbi trades in Hong Kong and other markets outside mainland China. The offshore renminbi is also known as the “offshore yuan.” The strategy of combining investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Chinese offshore renminbi, reflecting the increase or decrease in the exchange rate of the Chinese offshore renminbi against the United States dollar and the yield of the Chinese offshore renminbi, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Chinese offshore renminbi, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate
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demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar demand deposits denominated in the Chinese offshore renminbi from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Chinese offshore renminbi. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Chinese offshore renminbi.
Commodity Exposure Risk. The Chinese economy is susceptible to fluctuations in certain commodity markets. Any negative changes in commodity markets could have an adverse impact on the  Chinese economy.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Chinese offshore renminbi. As a result, the value of the Fund will be subject to changes in the exchange rate between the Chinese offshore renminbi and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in China. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Chinese offshore renminbi against the United States dollar. In general, the value of
the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Chinese offshore renminbi). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in China and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in China.

Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.

Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.

Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.

Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Chinese offshore renminbi, short-term debt securities or other investments.

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Chinese offshore renminbi, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or
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discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.

Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.

Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Chinese offshore renminbi and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.

Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Chinese offshore renminbi is impaired, the Fund may not be able to achieve its investment objective.

Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Chinese offshore renminbi. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Chinese offshore renminbi.

Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.
Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to Asian Economic Risk, European Economic Risk and U.S. Economic Risk.

Risk of Investing in China. Investment exposure to the Chinese offshore renminbi will subject the Fund to risks specific to China. China may be subject to considerable degrees of economic, political and social instability. China is a developing market and demonstrates significantly higher volatility from time to time in comparison to developed markets. Over the past 25 years, the Chinese government has undertaken reform of economic and market practices and expansion of the sphere for private ownership of property in China. However, Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries, including military conflicts in response to such events, may also disrupt economic development in China and result in a greater risk of currency fluctuations, currency convertibility, interest rate fluctuations and higher rates of inflation. Export growth continues to be a major driver of China's rapid economic growth. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China's key trading partners may have an adverse impact on the Chinese economy.

Risk of Investing in Emerging Markets. The Fund’s investment in the Chinese offshore renminbi generally will be subject to a greater risk of loss than investments in the currencies of more developed countries. Emerging markets may be more likely to experience inflation risk, political turmoil and rapid changes in economic conditions than more developed markets. Political risks of emerging markets may include unstable governments, nationalization, restrictions on foreign ownership and investment, laws preventing repatriation of assets and legal systems that do not adequately protect property rights. Market risks include government intervention in securities or currency markets.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or
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sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Chinese offshore renminbi relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Chinese offshore renminbi, which may differ from the price used by the Fund to calculate its NAV.
Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV,
shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 25,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® EURO ETF

Ticker: EURS Stock Exchange: NYSE Arca
Investment Objective
The iShares Euro ETF (the “ Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the euro against the United States dollar and the yield of the euro, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.20%   None   None   0.18%   0.38%   (0.18%)   0.20%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $20   $74    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the euro (against delivery of the United States dollar). The strategy of combining investments in short-term debt securities and spot foreign
exchange contracts is designed to provide financial exposure substantially similar to a purchase of the euro, reflecting the increase or decrease in the exchange rate of the euro against the United States dollar and the yield of the euro, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the euro, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar demand deposits denominated in the euro from time to time when BFA believes these securities may help the Fund to achieve its
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investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the euro. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the euro.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the euro. As a result, the value of the Fund will be subject to changes in the exchange rate between the euro and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Europe. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the euro against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the euro). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Europe and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
European Economic Risk. Investment exposure to the euro will subject the Fund to economic risks specific to Europe. The Economic and Monetary Union (the “EMU”) of the European Union (the “EU”) requires compliance with restrictions on inflation rates,
deficits, interest rates, debt levels and fiscal and monetary controls, each of which may significantly affect every country in Europe. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of the euro, the default or threat of default by an EU member country on its sovereign debt, and/or an economic recession in an EU member country may have a significant adverse effect on the economies of EU member countries and their trading partners. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels in several European countries, including Greece, Ireland, Italy, Portugal and Spain. These events have adversely affected the exchange rate of the euro and may continue to significantly affect every country in Europe, including countries that do not use the euro.

Geographic Risk. A natural or other disaster could occur in Europe.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the euro, short-term debt securities or other investments.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV.
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Given the high level of transparency of the Fund’s holdings, and its focus on the return of the euro, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the euro and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.
Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the euro is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the euro. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the euro.
Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in
short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to Asian Economic Risk and U.S. Economic Risk.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the euro relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same euro, which may differ from the price used by the Fund to calculate its NAV.

Yield Risk. The Fund’s yield is designed to reflect the overnight cash rate of the euro, less Fund operating expenses. The overnight cash rate of the euro may from time to time be very low, zero or negative. When the overnight cash rate of the euro is lower than the Fund’s operating expenses, the Fund will
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experience a “negative yield,” or daily loss, before taking into account the effect of currency movements. If the Fund has a negative yield, it will lose money absent positive currency movements. There is no guarantee that the Fund will experience positive currency movements to offset losses from a negative yield.
Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 25,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants
(each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® JAPANESE YEN ETF

Ticker: JPYS Stock Exchange: NYSE Arca
Investment Objective
The iShares Japanese Yen ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Japanese yen against the United States dollar and the yield of the Japanese yen, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.20%   None   None   0.18%   0.38%   (0.18%)   0.20%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $20   $74    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Japanese yen (against delivery of the United States dollar). The strategy of combining investments in short-term debt securities and spot foreign
exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Japanese yen, reflecting the increase or decrease in the exchange rate of the Japanese yen against the United States dollar and the yield of the Japanese yen, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Japanese yen, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar demand deposits denominated in the Japanese yen from time to time when BFA believes these securities may help the Fund to
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achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Japanese yen. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Japanese yen.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Japanese yen. As a result, the value of the Fund will be subject to changes in the exchange rate between the Japanese yen and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Japan. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Japanese yen against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Japanese yen). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Japan and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Japan.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Japanese yen, short-term debt securities or other investments.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Japanese yen, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
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Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Japanese yen and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.

Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Japanese yen is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Japanese yen. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Japanese yen.
Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to Asian Economic Risk, European Economic Risk and U.S. Economic Risk.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the
economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Risk of Investing in Japan. Investment exposure to the Japanese yen will subject the Fund to economic risks specific to Japan. The Japanese economy may be subject to considerable degrees of economic, political and social instability, which could have a negative impact on the Japanese yen. In addition, Japan is subject to the risk of natural disasters, such as earthquakes, volcanoes, typhoons and tsunamis.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Japanese yen relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Japanese yen, which may differ from the price used by the Fund to calculate its NAV.
Yield Risk. The Fund’s yield is designed to reflect the overnight cash rate of the Japanese yen, less Fund operating expenses. The overnight cash rate of the Japanese yen may from time to time be very low, zero or negative. When the overnight cash rate of the Japanese yen is lower than the Fund’s operating expenses, the Fund will experience a “negative yield,” or daily loss, before taking into account the effect of currency movements. If the Fund has a negative yield, it will lose money absent positive currency movements. There is no guarantee that the Fund will experience positive currency movements to offset losses from a negative yield.
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Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® MEXICAN PESO ETF

Ticker: MXNS Stock Exchange: NYSE Arca
Investment Objective
The iShares Mexican Peso ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Mexican peso against the United States dollar and the yield of the Mexican peso, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.40%   None   None   0.18%   0.58%   (0.18%)   0.40%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $41   $138    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Mexican peso (against delivery of the United States dollar). The strategy of combining
investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Mexican peso, reflecting the increase or decrease in the exchange rate of the Mexican peso against the United States dollar and the yield of the Mexican peso, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Mexican peso, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar
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demand deposits denominated in the Mexican peso from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Mexican peso. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Mexican peso.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Mexican peso. As a result, the value of the Fund will be subject to changes in the exchange rate between the Mexican peso and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Mexico. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Mexican peso against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Mexican peso). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Mexico and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Mexico.

Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.

Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.

Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.

Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Mexican peso, short-term debt securities or other investments.

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Mexican peso, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.

Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues
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from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.

Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Mexican peso and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.

Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Mexican peso is impaired, the Fund may not be able to achieve its investment objective.

Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Mexican peso. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Mexican peso.

Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to Central and South American Economic Risk and North American Economic Risk.

Risk of Investing in Emerging Markets. The Fund’s investment in the Mexican peso generally will be subject to a greater risk of
loss than investments in the currencies of more developed countries. Emerging markets may be more likely to experience inflation risk, political turmoil and rapid changes in economic conditions than more developed markets. Political risks of emerging markets may include unstable governments, nationalization, restrictions on foreign ownership and investment, laws preventing repatriation of assets and legal systems that do not adequately protect property rights. Market risks include government intervention in securities or currency markets.

Risk of Investing in Mexico. Investment exposure to the Mexican peso will subject the Fund to legal, regulatory, political, currency, security and economic risks specific to Mexico. Among other things, Mexico’s economy is heavily dependent on trading relationships with certain key trading partners, including the United States and certain Latin American countries. Reduction in spending on Mexican products and services, or economic or other changes in the United States or certain Latin American countries, trade regulations or currency exchange rates may have an adverse impact on the Mexican economy.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Mexican peso relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Mexican peso, which may differ from the price used by the Fund to calculate its NAV.
Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
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Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® NEW ZEALAND DOLLAR ETF

Ticker: NZDS Stock Exchange: NYSE Arca
Investment Objective
The iShares New Zealand Dollar ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the New Zealand dollar against the United States dollar and the yield of the New Zealand dollar, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.30%   None   None   0.18%   0.48%   (0.18%)   0.30%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $31   $106    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the New Zealand dollar (against delivery of the United States dollar). The strategy of
combining investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the New Zealand dollar, reflecting the increase or decrease in the exchange rate of the New Zealand dollar against the United States dollar and the yield of the New Zealand dollar, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the New Zealand dollar, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested
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in short-term debt instruments and bank notes and similar demand deposits denominated in the New Zealand dollar from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the New Zealand dollar. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the New Zealand dollar.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the New Zealand dollar. As a result, the value of the Fund will be subject to changes in the exchange rate between the New Zealand dollar and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in New Zealand. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the New Zealand dollar against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the New Zealand dollar). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in New Zealand and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in New Zealand.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the New Zealand dollar, short-term debt securities or other investments.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the New Zealand dollar, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues
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from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the New Zealand dollar and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.
Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the New Zealand dollar is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the New Zealand dollar. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the New Zealand dollar.
Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to Asian Economic Risk, Australasian Economic Risk and U.S. Economic Risk.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and
have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Risk of Investing in New Zealand. Investment exposure to the New Zealand dollar will subject the Fund to regulatory, political, currency, and economic risk specific to New Zealand. The New Zealand economy is heavily dependent on agricultural exports, and as a result, is susceptible to fluctuations in demand for agricultural products. New Zealand is also dependent on trade with key trading partners; a reduction in such trade may cause an adverse impact on its economy.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the New Zealand dollar relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same New Zealand dollar, which may differ from the price used by the Fund to calculate its NAV.
Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day
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management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® NORWEGIAN KRONE ETF

Ticker: NOKS Stock Exchange: NYSE Arca
Investment Objective
The iShares Norwegian Krone ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Norwegian krone against the United States dollar and the yield of the Norwegian krone, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.30%   None   None   0.18%   0.48%   (0.18%)   0.30%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $31   $106    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Norwegian krone (against delivery of the United States dollar). The strategy of
combining investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Norwegian krone, reflecting the increase or decrease in the exchange rate of the Norwegian krone against the United States dollar and the yield of the Norwegian krone, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Norwegian krone, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested
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in short-term debt instruments and bank notes and similar demand deposits denominated in the Norwegian krone from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Norwegian krone. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Norwegian krone.
Commodity Exposure Risk. The Norwegian economy is susceptible to fluctuations in certain commodity markets. Any negative changes in commodity markets could have an adverse impact on the  Norwegian economy.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Norwegian krone. As a result, the value of the Fund will be subject to changes in the exchange rate between the Norwegian krone and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Norway. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Norwegian krone against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Norwegian krone). Exchange rates may be
volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Norway and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Norway.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Norwegian krone, short-term debt securities or other investments.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Norwegian krone, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
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Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Norwegian krone and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.
Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Norwegian krone is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Norwegian krone. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Norwegian krone.
Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is
specifically exposed to European Economic Risk and U.S. Economic Risk.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Risk of Investing in Norway. Investment exposure to the Norwegian krone will subject the Fund to legal, regulatory, political, currency, security, and economic risks specific to Norway. Norway is a major producer of oil and gas, and Norway’s economy is subject to the risk of fluctuations in oil and gas prices. The high value of the Norwegian krone as compared to other currencies could have a damaging effect on Norwegian exports and investments. In recent years, labor costs in Norway have increased faster than those of its major trading partners, eroding industrial competitiveness.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Norwegian krone relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Norwegian krone, which may differ from the price used by the Fund to calculate its NAV.
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Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 25,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® SINGAPORE DOLLAR ETF

Ticker: SGDS Stock Exchange: NYSE Arca
Investment Objective
The iShares Singapore Dollar ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Singapore dollar against the United States dollar and the yield of the Singapore dollar, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.30%   None   None   0.18%   0.48%   (0.18%)   0.30%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $31   $106    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Singapore dollar (against delivery of the United States dollar). The strategy of
combining investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Singapore dollar, reflecting the increase or decrease in the exchange rate of the Singapore dollar against the United States dollar and the yield of the Singapore dollar, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Singapore dollar, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar
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demand deposits denominated in the Singapore dollar from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Singapore dollar. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Singapore dollar.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Singapore dollar. As a result, the value of the Fund will be subject to changes in the exchange rate between the Singapore dollar and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Singapore. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Singapore dollar against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Singapore dollar). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Singapore and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Singapore.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Singapore dollar, short-term debt securities or other investments.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Singapore dollar, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues
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from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Singapore dollar and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.
Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Singapore dollar is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Singapore dollar. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Singapore dollar.
Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to Asian Economic Risk, Australasian Economic Risk and U.S. Economic Risk.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and
have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Risk of Investing in Singapore. Investment exposure to the Singapore dollar will subject the Fund to the legal, regulatory, political and economic risks that are specific to Singapore. In addition, because Singapore’s economy is export-driven, Singapore relies heavily on its trading partners. Political and economic developments of Singapore's neighbors may have an adverse effect on Singapore's economy.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Singapore dollar relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Singapore dollar, which may differ from the price used by the Fund to calculate its NAV.
Yield Risk. The Fund’s yield is designed to reflect the overnight cash rate of the Singapore dollar, less Fund operating expenses. The overnight cash rate of the Singapore dollar may from time to time be very low, zero or negative. When the overnight cash rate of the Singapore dollar is lower than the Fund’s operating expenses, the Fund will experience a “negative yield,” or daily loss, before taking into account the effect of currency movements. If the Fund has a negative yield, it will lose money absent positive currency movements. There is no guarantee that the Fund will experience positive currency movements to offset losses from a negative yield.
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Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® SWEDISH KRONA ETF

Ticker: SEKS Stock Exchange: NYSE Arca
Investment Objective
The iShares Swedish Krona ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Swedish krona against the United States dollar and the yield of the Swedish krona, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.30%   None   None   0.18%   0.48%   (0.18%)   0.30%

Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

  1 Year   3 Years    
  $31   $106    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.

Principal Investment Strategies

The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Swedish krona (against delivery of the United States dollar). The strategy of combining
investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Swedish krona, reflecting the increase or decrease in the exchange rate of the Swedish krona against the United States dollar and the yield of the Swedish krona, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Swedish krona, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar
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demand deposits denominated in the Swedish krona from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.

The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.

The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.

Summary of Principal Risks

As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Swedish krona. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Swedish krona.

Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Swedish krona. As a result, the value of the Fund will be subject to changes in the exchange rate between the Swedish krona and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Sweden. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.

Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.

Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.

Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Swedish krona against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Swedish krona). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Sweden and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Sweden.

Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.

Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.

Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.

Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Swedish krona, short-term debt securities or other investments.

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Swedish krona, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.

Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues
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from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.

Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Swedish krona and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.

Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Swedish krona is impaired, the Fund may not be able to achieve its investment objective.

Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Swedish krona. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Swedish krona.

Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to European Economic Risk.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and have generally experienced slower economic growth than some
other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Risk of Investing in Sweden. Investment exposure to the Swedish krona will subject the Fund to legal, regulatory, political, currency, security and economic risks specific to Sweden. Sweden has a highly developed welfare system and over 70% of its workforce is unionized. These factors can negatively impact the Swedish economy by causing increased government spending, higher production costs and lower productivity, among other things.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.

U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.

Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Swedish krona relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Swedish krona, which may differ from the price used by the Fund to calculate its NAV.

Performance Information

As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.

Management

Investment Adviser. BlackRock Fund Advisors.

Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a
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portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.

Purchase and Sale of Fund Shares

The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 25,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information

The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.

Payments to Broker-Dealers and other Financial Intermediaries

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® SWISS FRANC ETF

Ticker: CHFS Stock Exchange: NYSE Arca

Investment Objective

The iShares Swiss Franc ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Swiss franc against the United States dollar and the yield of the Swiss franc, minus the Fund’s fees and expenses.

Fees and Expenses

The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.20%   None   None   0.18%   0.38%   (0.18%)   0.20%

Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

  1 Year   3 Years    
  $20   $74    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.

Principal Investment Strategies

The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Swiss franc (against delivery of the United States dollar). The strategy of combining investments in short-term debt securities and spot foreign
exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Swiss franc, reflecting the increase or decrease in the exchange rate of the Swiss franc against the United States dollar and the yield of the Swiss franc, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Swiss franc, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar demand deposits denominated in the Swiss franc from time to time when BFA believes these securities may help the Fund to
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achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.

The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.

The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.

Summary of Principal Risks

As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Swiss franc. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Swiss franc.

Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Swiss franc. As a result, the value of the Fund will be subject to changes in the exchange rate between the Swiss franc and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Switzerland. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.

Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.

Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.

Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Swiss franc against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Swiss franc). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Switzerland and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.

Geographic Risk. A natural or other disaster could occur in Switzerland.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.

Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.

Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.

Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Swiss franc, short-term debt securities or other investments.

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Swiss franc, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.

Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
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Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Swiss franc and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.

Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Swiss franc is impaired, the Fund may not be able to achieve its investment objective.

Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Swiss franc. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Swiss franc.

Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to European Economic Risk and U.S. Economic Risk.

Risk of Investing in Developed Countries. Developed countries tend to represent a significant portion of the global economy and have generally experienced slower economic growth than some other countries. A majority of developed countries have recently experienced a significant economic slowdown. In addition, developed countries may be impacted by changes to the
economic health of certain key trading partners, regulatory burdens, debt burdens and the price or availability of certain commodities.

Risk of Investing in Switzerland. Investment exposure to the Swiss franc will subject the Fund to legal, regulatory, political, currency, security, and economic risks specific to Switzerland. International trade is a large component of the Swiss economy and Switzerland depends upon exports to generate economic growth. Switzerland’s economy relies heavily on its banking sector. The Swiss economy also relies on certain key trading partners in order to sustain continued economic growth. Switzerland's economic growth mirrors slowdowns and growth spurts experienced in other countries, including the United States and certain Western European countries.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.

U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.

Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Swiss franc relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Swiss franc, which may differ from the price used by the Fund to calculate its NAV.

Yield Risk. The Fund’s yield is designed to reflect the overnight cash rate of the Swiss franc, less Fund operating expenses. The overnight cash rate of the Swiss franc may from time to time be very low, zero or negative. When the overnight cash rate of the Swiss franc is lower than the Fund’s operating expenses, the Fund will experience a “negative yield,” or daily loss, before taking into account the effect of currency movements. If the Fund has a negative yield, it will lose money absent positive currency movements. There is no guarantee that the Fund will experience positive currency movements to offset losses from a negative yield.
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Performance Information

As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.

Management

Investment Adviser. BlackRock Fund Advisors.

Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.

Purchase and Sale of Fund Shares

The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.

Payments to Broker-Dealers and other Financial Intermediaries

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® THAI OFFSHORE BAHT ETF

Ticker: THBS Stock Exchange: NYSE Arca

Investment Objective

The iShares Thai Offshore Baht ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Thai offshore baht against the United States dollar and the yield of the Thai offshore baht, minus the Fund’s fees and expenses.

Fees and Expenses

The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.40%   None   None   0.18%   0.58%   (0.18%)   0.40%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $41   $138    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Thai offshore baht (against delivery of the United States dollar). The strategy of
combining investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Thai offshore baht, reflecting the increase or decrease in the exchange rate of the Thai offshore baht against the United States dollar and the yield of the Thai offshore baht, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Thai offshore baht, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested
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in short-term debt instruments and bank notes and similar demand deposits denominated in the Thai offshore baht from time to time when BFA believes these securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Thai offshore baht. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Thai offshore baht.

Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Thai offshore baht. As a result, the value of the Fund will be subject to changes in the exchange rate between the Thai offshore baht and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Thailand. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.

Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Thai offshore baht against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Thai offshore baht). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Thailand and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Thailand.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Thai offshore baht, short-term debt securities or other investments.

Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Thai offshore baht, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.

Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues
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from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.

Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Thai offshore baht and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.

Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Thai offshore baht is impaired, the Fund may not be able to achieve its investment objective.

Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Thai offshore baht. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Thai offshore baht.

Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to Asian Economic Risk, European Economic Risk and U.S. Economic Risk.

Risk of Investing in Emerging Markets. The Fund’s investment in the Thai offshore baht generally will be subject to a greater risk
of loss than investments in the currencies of more developed countries. Emerging markets may be more likely to experience inflation risk, political turmoil and rapid changes in economic conditions than more developed markets. Political risks of emerging markets may include unstable governments, nationalization, restrictions on foreign ownership and investment, laws preventing repatriation of assets and legal systems that do not adequately protect property rights. Market risks include government intervention in securities or currency markets.

Risk of Investing in Thailand. Investment exposure to the Thai offshore baht will subject the Fund to legal, regulatory, political, currency, security, and economic risks specific to Thailand. Among other things, Thailand’s economy is heavily dependent on trading relationships with certain key trading partners, including the United States, China, Japan and other Asian countries; a reduction in such trade may cause an adverse impact on its economy.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Thai offshore baht relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Thai offshore baht, which may differ from the price used by the Fund to calculate its NAV.
Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
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Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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iSHARES® TURKISH LIRA ETF

Ticker: TRYS Stock Exchange: NYSE Arca
Investment Objective
The iShares Turkish Lira ETF (the “Fund”) seeks to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of the Turkish lira against the United States dollar and the yield of the Turkish lira, minus the Fund’s fees and expenses.
Fees and Expenses
The following table describes the fees and expenses that you will incur if you own shares of the Fund. The investment advisory agreement between iShares Trust (the “Trust”) and BlackRock Fund Advisors (“BFA”) (the “ Investment Advisory Agreement”) provides that BFA will pay all operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses. “Acquired Fund Fees and Expenses” reflect the Fund's pro rata share of the fees and expenses incurred by investing in other investment companies. As the Fund has not commenced operations prior to the date of the Fund’s prospectus (the “Prospectus”), Acquired Fund Fees and Expenses are based on an estimate of the Fund’s allocation to other investment companies for the current fiscal year. The impact of Acquired Fund Fees and Expenses will be included in the total returns of the Fund. Acquired Fund Fees and Expenses are not used to calculate the Fund's net asset value per share (“NAV”) and are not included in the calculation of the ratio of expenses to average net assets shown in the Financial Highlights section of the Prospectus. BFA, the investment adviser to the Fund, has contractually agreed to waive a portion of its management fees in an amount equal to the Acquired Fund Fees and Expenses attributable to the Fund's investments in other registered investment companies advised by BFA, or its affiliates, until December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

You may also incur usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example that follows:

Annual Fund Operating Expenses
(ongoing expenses that you pay each year as a
percentage of the value of your investments)
Management
Fees
  Distribution and
Service (12b-1)
Fees
  Other
Expenses
  Acquired Fund Fees
and Expenses
  Total Annual
Fund
Operating
Expenses
  Fee Waiver   Total Annual
Fund
Operating
Expenses
After
Fee Waiver
0.40%   None   None   0.18%   0.58%   (0.18%)   0.40%
Example. This Example is intended to help you compare the cost of owning shares of the Fund with the cost of investing in other funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
  1 Year   3 Years    
  $41   $138    
Portfolio Turnover. The Fund may pay transaction costs, such as commissions, when it buys and sells securities or other instruments (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance.
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the Turkish lira (against delivery of the United States dollar). The strategy of combining investments in short-term debt securities and spot foreign
exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Turkish lira, reflecting the increase or decrease in the exchange rate of the Turkish lira against the United States dollar and the yield of the Turkish lira, minus the Fund’s fees and expenses.

The Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of the Turkish lira, after fees and expenses. The short-term debt securities held by the Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. The Fund’s assets also may be invested in short-term debt instruments and bank notes and similar demand deposits denominated in the Turkish lira from time to time when BFA believes these securities may help the Fund to
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achieve its investment objective. All short-term debt securities acquired by the Fund will be rated investment grade by at least one nationally recognized statistical rating organization (NRSRO) or, if unrated, deemed by BFA to be of equivalent quality. The Fund may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Fund generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Fund will not purchase any security with a remaining maturity of more than 397 calendar days.
The Fund is not a money market fund and does not seek to maintain a stable asset value of $1.00 per share. Please see the Statement of Additional Information (“SAI”) for further information.
Summary of Principal Risks
As with any investment, you could lose all or part of your investment in the Fund, and the Fund’s performance could trail that of other investments. In addition, the Fund’s yield may not reflect the yield of the Turkish lira. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and ability to meet its investment objective. Unlike many ETFs, the Fund is not an index fund. However, unlike many actively managed funds, the Fund will not seek to outperform any particular benchmark. Instead, the Fund will seek to replicate the daily return of the Turkish lira.
Concentration Risk. The Fund seeks to expose 100% of its net assets to the return of the Turkish lira. As a result, the value of the Fund will be subject to changes in the exchange rate between the Turkish lira and the United States dollar, and the value of Fund shares will be negatively affected by adverse social, political, and economic conditions in Turkey. In addition, to the extent that the Fund’s investments are concentrated in a particular short-term security, the Fund will be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The Fund may suffer significant losses if one or more counterparties fail to perform their obligations under spot foreign exchange contracts entered into by the Fund.
Credit Risk. The Fund is subject to the risk that debt issuers and other counterparties may not honor their obligations or may have their debt downgraded by ratings agencies.
Currency Risk. The price of Fund shares will fluctuate as a result of fluctuations in the exchange rate of the Turkish lira against the United States dollar. In general, the value of the Fund’s assets will fall when the value of the United States dollar rises (i.e., when the United States dollar increases in purchasing power relative to the Turkish lira). Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in Turkey and the United States. As a result, investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
Geographic Risk. A natural or other disaster could occur in Turkey.
Government Debt Risk. The Fund may invest in securities issued by or guaranteed by a sovereign government, which may be unable or unwilling to repay principal or interest when due. In times of economic uncertainty, the prices of these securities may be more volatile than those of corporate debt obligations or of other government debt obligations.
Interest Rate Risk. Interest rate risk is the risk that the value of the debt securities held by the Fund may fall when interest rates rise. In general, the market price of debt securities with longer maturities will fluctuate more, in response to changes in interest rates, than the market price of shorter term securities.

Issuer Risk. Fund performance depends on the performance of individual securities to which the Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Fund is subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and those securities or other financial instruments selected by BFA may result in returns that are inconsistent with the Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing the Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. The Fund could lose money over short- or long-term periods due to fluctuations in the value of the Turkish lira, short-term debt securities or other investments.
Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the subscription/redemption process of the Fund. The Fund will execute subscription and redemption transactions on an electronic communications network (“ECN”) operated by a third party. If this ECN suffers service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. Unlike some ETFs that track specific indexes, the Fund does not seek to replicate the performance of a specified index. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Fund’s holdings, and its focus on the return of the Turkish lira, BFA believes that the trading experience of the Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Fund’s shares will trade at a premium or discount to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO THE FUND'S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV.
Municipal Securities Risk. Municipal securities can be significantly affected by political or economic changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the inability to collect revenues for the project or from the assets.
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Non-Diversification Risk. The Fund may invest a large percentage of its assets in securities or financial instruments issued by or representing a small number of issuers. As a result, the Fund's performance may depend on the performance of a small number of issuers. The Fund expects its return to be based primarily on the fluctuations in the exchange rate between the Turkish lira and the United States dollar.

Not a Money Market Fund. The Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, the Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Fund does not seek to maintain a stable net asset value of $1.00 per share.
Offshore Investor Risk. Investors, such as the Fund, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment, exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for the Fund to gain exposure to the currency markets. If the Fund’s ability to enter into contracts to purchase or sell the Turkish lira is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. The Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Turkish lira. Portfolio turnover risk may increase transaction costs and reduce Fund performance or cause the Fund’s return to deviate from the return of the Turkish lira.
Redemption-in-Cash Risk. Unlike most ETFs, the Fund generally does not make in-kind redemptions. The Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause the Fund to sell a security and recognize a capital gain or loss that might not have been incurred if the Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, the Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.

Reliance on Trading Partners Risk. The Fund’s performance will be impacted by the economic developments of a country whose economy is heavily dependent upon trading with key partners. Any reduction in this trading may have an adverse impact on the Fund’s investments. Through its trading partners, the Fund is specifically exposed to European Economic Risk and U.S. Economic Risk.

Risk of Investing in Emerging Markets. The Fund’s investment in the Turkish lira generally will be subject to a greater risk of loss than investments in the currencies of more developed countries. Emerging markets may be more likely to experience inflation risk, political turmoil and rapid changes in economic conditions than more developed markets. Political risks of emerging markets may
include unstable governments, nationalization, restrictions on foreign ownership and investment, laws preventing repatriation of assets and legal systems that do not adequately protect property rights. Market risks include government intervention in securities or currency markets.

Risk of Investing in Turkey. Investment exposure to the Turkish lira may subject the Fund to legal, regulatory, political, currency, security and economic risks specific to Turkey. Turkey has historically experienced acts of terrorism and strained relations related to border disputes with certain neighboring countries.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the Fund’s business of investing in securities. The issuance of such regulations could prevent the Fund from achieving its investment objectives.
U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.
Valuation Risk. The sales price the Fund could receive for a security or financial instrument may differ from the Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. In addition, the value of the securities and financial instruments in the Fund’s portfolio may change on days when shareholders will not be able to purchase or sell the Fund’s shares. Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for the Turkish lira relative to the United States dollar. As a result, the prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same Turkish lira, which may differ from the price used by the Fund to calculate its NAV.
Performance Information
As of the date of the Prospectus, the Fund has been in operation for less than one full calendar year and therefore does not report its performance information.
Management
Investment Adviser. BlackRock Fund Advisors.
Portfolio Managers. Thomas Kolimago and Richard Mejzak (the “Portfolio Managers”) are primarily responsible for the day-to-day management of the Fund. Each Portfolio Manager supervises a portfolio management team. Mr. Kolimago and Mr. Mejzak have been Portfolio Managers of the Fund since inception.
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Purchase and Sale of Fund Shares
The Fund is an ETF. Individual Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue or redeem shares only in aggregations equal to or greater than 50,000 shares (the Fund’s “Minimum Subscription Size”) to authorized participants (each, an “Authorized Participant”) who have entered into agreements with the Fund’s distributor. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. The Fund generally will issue or redeem shares only to an Authorized Participant in return for a specified amount of cash.
Tax Information
The Fund intends to make distributions that may be taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement such as a 401(k) plan or an individual retirement account (“IRA”). Because the Fund invests primarily in spot foreign exchange contracts and short-term debt securities, it is unlikely to produce long-term capital gains.
Payments to Broker-Dealers and other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), BFA or other related companies may pay the intermediary for marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems or other services related to the sale or promotion of the Fund. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.
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More Information About the Funds
Additional Information on Principal Investment Strategies. Each Fund is an actively managed ETF that seeks to achieve its investment objective by investing, under normal circumstances, substantially all of its assets in short-term debt securities denominated in United States dollars and spot foreign exchange contracts (generally required to be settled within two business days) to purchase the foreign currency identified in the Fund’s name (the “FX Base Currency”) against delivery of the United States dollar. The strategy of combining investments in short-term debt securities and spot foreign exchange contracts is designed to provide financial exposure substantially similar to a purchase of the Fund’s FX Base Currency, reflecting the increase or decrease in the exchange rate of the FX Base Currency against the United States dollar and the yield of the FX Base Currency, minus the Fund’s fees and expenses.

Each Fund invests in United States dollar denominated short-term debt securities of varying maturities and spot foreign exchange contracts in order to seek to replicate the daily return of its FX Base Currency, after fees and expenses. The short-term debt securities held by a Fund generally will consist of investment-grade debt obligations and may include, but are not limited to, obligations issued by the U.S. government and its agencies and instrumentalities, U.S. municipal variable rate demand notes, U.S. corporate and commercial debt instruments, and bank notes and similar demand deposits. Each Fund’s assets also may be invested in short-term debt instruments, and bank notes and similar demand deposits denominated in its FX Base Currency from time to time when BFA believes these debt securities may help the Fund to achieve its investment objective. All short-term debt securities acquired by a Fund will be rated investment-grade by at least one NRSRO or, if unrated, deemed by BFA to be of equivalent quality. The Funds may also invest its assets in money market funds (including funds that are managed by BFA or one of its affiliates), cash and cash equivalents.
The Funds generally will maintain a weighted average portfolio maturity of between 1 and 30 days and generally will be limited to investments with remaining maturities of 60 days or less. The Funds will not purchase any security with a remaining maturity of more than 397 calendar days.
Generally, each spot foreign exchange contract entered into by a Fund will require the Fund to purchase from a foreign exchange dealer selected by BFA (“FX Counterparty”), at a specified purchase price expressed in United States dollars, a specified amount of the Fund’s FX Base Currency. Each Fund will enter into spot foreign exchange transactions only in the Fund’s FX Base Currency and mainly for the purpose of taking long positions in such FX Base Currency. Because the spot foreign exchange contracts entered into by the Funds are spot transactions and typically settle within two business days, in order to maintain exposure to its FX Base Currency, each Fund will continuously enter into new spot foreign exchange contracts by entering into two simultaneous trades that result in the same open long position of the FX Base Currency with the settlement date extended by one business day. The first transaction is an offsetting transaction to the original position for the same notional amount and the same settlement date. This offsetting transaction may cause a Fund to realize a gain or loss on the transaction. The second transaction is for the same notional amount as the original position with the settlement date extended by one business day. Where there is an interest rate differential in the overnight “risk free” rate between the FX Base Currency and the United States dollar, there will be a difference in price between the two trades of the simultaneous transaction. This difference represents the difference in benchmark overnight interest rates between the two currencies in the position (i.e., one day of “carry” or “cost of carry”).
Each Fund’s investment objective is non-fundamental and may be changed without shareholder approval. Each Fund will provide shareholders 60 days prior notice of any change to this policy for the Fund.
The Funds’ portfolio holdings will be disclosed on its website daily after the close of trading on the listing exchange and prior to the opening of trading on the exchange the following day.
An investment in a Fund is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency, BFA or any of its affiliates.
A Further Discussion of Principal Risks
Each Fund is subject to various risks, including the principal risks noted below, any of which may adversely affect the Fund’s NAV, trading price, yield, total return and ability to meet its investment objective. You could lose all or part of your investment in the Funds, and the Funds could underperform other investments.

Asian Structural Risk. Certain Asian countries are subject to a considerable degree of economic, political and social instability, which could adversely affect investments in a Fund:
Asian Economic Risk. Certain Asian economies have experienced over-extension of credit, currency devaluations and restrictions, high unemployment, high inflation, decreased exports and economic recessions. Economic events in any one country can have a significant effect on the entire Asian region and on some or all of the economies within Asia. Some Asian economies may have underdeveloped financial markets and a general lack of regulatory transparency.
Government Control and Regulations. Governments of many Asian countries have implemented significant economic reforms in order to liberalize trade policy, promote foreign investment in their economies, reduce government control of the economy and develop market mechanisms. There can be no assurance these reforms will continue or that they will be effective. Despite recent reform and privatizations, significant regulation of investment and industry is still pervasive in many Asian countries and may restrict foreign ownership of domestic corporations and repatriation of assets, which may adversely affect investments in a Fund.
Political and Social Risk. Governments in some Asian countries are authoritarian in nature, have been installed or removed as a result of military coups or have periodically used force to suppress civil dissent. Disparities of wealth, the pace and success of democratization and
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ethnic, religious and racial disaffection have led to social turmoil, violence and labor unrest in some countries. Unanticipated or sudden political or social developments may result in sudden and significant investment losses.
Expropriation Risk. Investing in certain Asian countries involves risk of loss due to expropriation, nationalization, or confiscation of assets and property or the imposition of restrictions on foreign investments and on repatriation of capital invested.
Australasian Economic Risk. The economies of Australasia, which include Australia and New Zealand, are dependent on exports from the agricultural and mining sectors. This makes Australasian economies susceptible to fluctuations in the commodity markets. Australasian economies are also increasingly dependent on their growing service industries. Because the economies of Australasia are dependent on the economies of Asia, Europe and the United States as key trading partners and investors, reduction in spending by any of these trading partners on Australasian products and services, or negative changes in any of these economies, may cause an adverse impact on some or all of the Australasian economies.
Central and South American Economic Risk. The economies of certain Central and South American countries have experienced high interest rates, economic volatility, inflation, currency devaluations, government defaults and high unemployment rates. In addition, commodities (such as oil, gas and minerals) represent a significant percentage of the region’s exports and many economies in this region are particularly sensitive to fluctuations in commodity prices. Adverse economic events in one country may have a significant adverse effect on the economies of other countries of this region.
Commodity Exposure Risk. Certain economies may be adversely affected by changes or trends in commodity prices. Commodity prices may be influenced or characterized by unpredictable factors, including, where applicable, high volatility, changes in supply and demand relationships, weather, agriculture, trade, pestilence, changes in interest rates and monetary and other governmental policies.
Concentration Risk. Each Fund invests in a single FX Base Currency and generally will make investments for purposes of gaining investment exposure to that FX Base Currency. As a result, to the extent that a Fund’s investments are concentrated in a particular currency, the Fund may be susceptible to loss due to adverse occurrences affecting that currency, or country or region in which that currency is used, including the social, political, and economic conditions affecting the country or region. In addition, to the extent that a Fund’s investments are concentrated in a particular short-term security, the Fund may be susceptible to loss due to adverse occurrences affecting that security or the debt markets in general.
Counterparty Risk. The foreign currency markets in which a Fund effects its transactions are over-the-counter or “interdealer” markets. The counterparty to an over-the-counter spot contract is generally a single bank or other financial institution rather than a clearing organization backed by a group of financial institutions. Participants in over-the-counter markets are typically not subject to the same credit evaluation and regulatory oversight as members of “exchange-based” markets. Because the Funds execute over-the-counter transactions, each Fund constantly takes credit risk with regard to parties with which it trades and may also bear the risk of settlement default. These risks may differ materially from those involved in exchange-traded transactions which generally are characterized by clearing organization guaranties, daily marking-to-market and settlement, and segregation and minimum capital requirements applicable to intermediaries. Transactions entered into directly between two counterparties generally do not benefit from these protections and each Fund is subject to the risk that a counterparty will not settle a transaction in accordance with agreed terms and conditions.
Further, if a counterparty becomes bankrupt or otherwise fails to perform its obligations due to financial difficulties, a Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding. A Fund may obtain only limited recovery or may obtain no recovery in such circumstances. In addition, a Fund may enter into agreements with a limited number of counterparties which may increase that Fund’s exposure to counterparty credit risk.
In accordance with standard industry practice, a Fund may be required to secure a portion of its obligations to its counterparty. For non-fully funded contracts, this may involve the placing of initial and/or variation margin assets with the counterparty. For contracts that require a Fund to place initial margin assets with a counterparty, such assets may not be segregated from the counterparty’s own assets and, being freely exchangeable and replaceable, the Fund may have a right to the return of equivalent assets rather than the original margin assets deposited with the counterparty. These deposits or assets may exceed the value of the relevant Fund’s obligations to the counterparty in the event that the counterparty requires excess margin or collateral. In addition, as contract terms may provide for collateral to cover the variation margin exposure arising under the contract only if a minimum transfer amount is triggered, the Fund may have an uncollateralized risk exposure to a counterparty.
The use of spot foreign exchange contracts may also expose a Fund to legal risk, which is the risk of loss due to the unexpected application of a law or regulation, or because contracts are not legally enforceable.

Credit Risk. Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a derivatives contract, repurchase agreement or loan of portfolio securities will be unable or unwilling to make its timely interest and/or principal payments or to otherwise honor its obligations. Debt instruments are subject to varying degrees of credit risk, which may be reflected in their credit ratings. There is the chance that any of a Fund’s portfolio holdings will have their credit ratings downgraded or will default (i.e., fail to make scheduled interest or principal payments), potentially reducing such Fund’s income level or share price.
Currency Risk. Foreign currencies represent the legal tender of one or more foreign nations and normally are not linked to any intrinsically valuable commodity (such as precious metals). Any transaction involving foreign currencies involves risks not common to investments denominated entirely in a person’s domestic currency. Because each Fund’s NAV is determined partially on the basis of the value of its FX Base Currency against the United States dollar, you will lose money if the value of the United States dollar rises relative to the Fund’s FX Base Currency. Exchange rates may be volatile and may change quickly and unpredictably in response to both global economic developments and economic conditions in the United States and in the jurisdictions using a Fund’s FX Base Currency. Foreign exchange rates are
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influenced by national debt levels and trade deficits, domestic and foreign inflation rates and investors’ expectations concerning interest rates and global, regional, political, economic or financial events. In addition, foreign exchange rates may also be influenced by changing supply and demand for a particular currency, monetary policies of governments (including exchange control programs, restrictions on local exchanges or markets and limitations on foreign investment in a country or on investment by residents of a country in other countries), and currency devaluations and revaluations. Also, governments from time to time intervene in the currency markets, directly and by regulation, in order to influence prices. From time to time, governments may adopt policies designed to directly influence foreign exchange rates with respect to their currency. The resulting volatility in foreign exchange rates could materially and adversely affect the performance of a Fund. Investors have the potential for losses regardless of the length of time they intend to hold Fund shares.
European Economic Risk. The EMU of the EU requires compliance with restrictions on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls, each of which may significantly affect every country in Europe. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of the euro (the common currency of certain EU countries), the default or threat of default by an EU member country on its sovereign debt, and/or an economic recession in an EU member country may have a significant adverse effect on the economies of EU member countries and their trading partners. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns or rising government debt levels in several European countries, including Greece, Ireland, Italy, Portugal and Spain. These events have adversely affected the exchange rate of the euro and may continue to significantly affect every country in Europe, including countries that do not use the euro.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not produce the desired results, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and other entities of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, one or more countries may abandon the euro and/or withdraw from the EU. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far-reaching.

Geographic Risk. Some markets in which the Funds invest are located in parts of the world that have historically been prone to natural disasters such as earthquakes, volcanoes, drought or tsunamis and are economically sensitive to environmental events. Any such event could result in a significant adverse impact on the economies of these countries, causing an adverse impact on a Fund’s investments in the affected region.

Government Debt Risk. Investment in the debt of sovereign governments can involve a high degree of risk. The governmental entity that controls the repayment of debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund and the political constraints to which a governmental entity may be subject. Governmental entities also may be dependent on expected disbursements from other foreign governments, multilateral agencies and others abroad to reduce principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and others to make such disbursements may be conditioned on the implementation of economic reforms and/or economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s ability or willingness to timely service its debts. Consequently, governmental entities may default on their debt.

Interest Rate Risk. As interest rates rise, the value of a fixed income security held by a Fund is likely to decrease. Securities with longer durations tend to be more sensitive to interest rate changes, usually making them more volatile than securities with shorter durations. The longer the term of the fixed income securities held by a Fund, the greater the risk that rising interest rates may cause the value of the Fund’s investments to decline.

Issuer Risk. Each Fund’s performance depends on the performance of individual securities and other instruments to which such Fund has exposure. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.
Management Risk. The Funds are subject to management risk, which is the risk that the investment process, techniques and analyses applied by BFA will not produce the desired results, and that securities or other financial instruments selected by BFA may result in returns that are inconsistent with a Fund’s investment objective. In addition, legislative, regulatory, or tax developments may affect the investment techniques available to BFA in connection with managing a Fund and may also adversely affect the ability of the Fund to achieve its investment objective.
Market Risk. Each Fund could lose money due to short-term market movements and over longer periods during market downturns in the value of its FX Base Currency relative to the value of the United States dollar. Securities and currencies may decline in value due to factors affecting markets generally or particular securities or currencies. The value of a security may decline due to general market conditions, economic trends or events that are not specifically related to the issuer of the security or to factors that affect a particular country or countries. During a general downturn in the securities markets, multiple asset classes may be negatively affected.
Market Trading Risk
Absence of Active Market. Although shares of the Funds are listed for trading on one or more stock exchanges, there can be no assurance that an active trading market for such shares will develop or be maintained.
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Risk of Secondary Listings. The Funds’ shares may be listed or traded on U.S. and non-U.S. stock exchanges other than the U.S. stock exchange where the Funds’ primary listing is maintained. There can be no assurance that the Funds’ shares will continue to trade on any such stock exchange or in any market or that the Funds’ shares will continue to meet the requirements for listing or trading on any exchange or in any market. The Funds’ shares may be less actively traded in certain markets than in others, and investors are subject to the execution and settlement risks and market standards of the market where they or their broker direct their trades for execution. Certain information available to investors who trade Fund shares on a U.S. stock exchange during regular U.S. market hours may not be available to investors who trade in other markets, which may result in secondary market prices in such markets being less efficient.
Secondary Market Trading Risk. Shares of a Fund may trade in the secondary market at times when the Fund does not accept orders to purchase or redeem shares. At such times, shares may trade in the secondary market with more significant premiums or discounts than might be experienced at times when the Fund accepts purchase and redemption orders.
Secondary market trading in Fund shares may be halted by a stock exchange because of market conditions or for other reasons. In addition, trading in Fund shares on a stock exchange or in any market may be subject to trading halts caused by extraordinary market volatility pursuant to “circuit breaker” rules on the stock exchange or market. There can be no assurance that the requirements necessary to maintain the listing or trading of Fund shares will continue to be met or will remain unchanged.
Shares of each Fund, similar to shares of other issuers listed on a stock exchange, may be sold short and are therefore subject to the risk of increased volatility associated with short selling.
Shares of each Fund May Trade at Prices Other Than NAV. Shares of each Fund trade on stock exchanges at prices at, above or below its most recent NAV. The NAV of each Fund is calculated at the end of each business day and fluctuates with changes in the market value of such Fund’s holdings. The trading price of a Fund’s shares fluctuates continuously throughout trading hours based on both market supply of and demand for Fund shares and the underlying value of a Fund’s portfolio holdings or NAV. The trading prices of a Fund’s shares may deviate significantly from NAV during periods of market volatility. Unlike conventional ETFs, the Funds are not index funds. Index-based ETFs have generally traded at prices which closely correspond to NAV. Given the high level of transparency of the Funds’ holdings, and their focus on the return of a particular FX Currency, BFA believes that the trading experience of each Fund should be similar to that of index-based ETFs. However, ETFs that do not seek to replicate the performance of a specified index have a limited trading history and, therefore, there can be no assurance as to whether, and/or the extent to which, the Funds’ shares will trade at premiums or discounts to NAV. ANY OF THESE FACTORS, AMONG OTHERS, MAY LEAD TO A FUND’S SHARES TRADING AT A PREMIUM OR DISCOUNT TO NAV. While the subscription/redemption feature of the Funds is designed to make it likely that a Fund’s shares normally will trade on stock exchanges at prices close to the Fund’s next calculated NAV, exchange prices are not expected to correlate exactly with a Fund’s NAV due to timing reasons as well as market supply and demand factors. The Funds will execute subscription and redemption transactions on an ECN operated by a third party. If this ECN suffered service interruptions, slow response times or other performance problems, subscriptions and redemptions could be disrupted and Fund shares could trade at a premium or discount to NAV. In addition, disruptions to subscriptions and redemptions or extreme market volatility may result in trading prices for shares of a Fund that differ significantly from its NAV.
Costs of Buying or Selling Fund Shares. Buying or selling Fund shares on an exchange involves two types of costs that apply to all securities transactions. When buying or selling shares of a Fund through a broker, you will likely incur a brokerage commission or other charges imposed by brokers as determined by that broker. In addition, you may incur the cost of the “spread” – that is, the difference between what investors are willing to pay for Fund shares (the “bid” price) and the price at which they are willing to sell Fund shares (the “ask” price). Because of the costs inherent in buying or selling Fund shares, frequent trading may detract significantly from investment results and an investment in Fund shares may not be advisable for investors who anticipate regularly making small investments.
Municipal Securities Risk. Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities.
Municipal securities can be significantly affected by political changes as well as uncertainties in the municipal market related to government regulation, taxation, legislative changes or the rights of municipal security holders. Because many municipal securities are issued to finance similar projects, such as those related to education, health care, housing, transportation, utilities, and water and sewer, conditions in these sectors can affect the overall municipal market. In addition, changes in the financial condition of an individual municipal insurer can affect the overall municipal market.

Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the taxation supporting the project or assets or the inability to collect revenues for the project or from the assets. There is no guarantee that a Fund’s income, that is derived from municipal securities, will be exempt from U.S. federal income taxes, state income taxes, the federal alternative minimum tax (“AMT”) or the federal Medicare contribution tax of 3.8% on “net investment income”.

Non-Diversification Risk. Each Fund is classified as “non-diversified.” This means that each Fund may invest a large percentage of its assets in securities or financial instruments (including spot foreign exchange contracts) issued by or representing a small number of issuers. As a result, each Fund may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers or securities. Each Fund expects its return to be based primarily on the fluctuations in the exchange rate between its FX Base Currency and the United States dollar.

North American Economic Risk. The United States is Canada and Mexico's largest trading and investment partner. The Canadian and Mexican economies are significantly affected by developments in the U.S. economy. Since the implementation of the North American Free Trade Agreement (“NAFTA”) in 1994 among Canada, the United States and Mexico, total merchandise trade between the three countries has
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increased. To further this relationship, the three NAFTA countries entered into the Security and Prosperity Partnership of North America in March 2005, which may further affect Canada’s and Mexico’s dependency on the U.S. economy. Economic events in any one North American country can have a significant economic effect on the entire North American region, and on some or all of the North American countries.

Not a Money Market Fund. Each Fund is not a money market fund and is not subject to the strict rules that govern the quality, maturity, liquidity and other features of securities that money market funds may purchase. Under normal circumstances, a Fund’s investments may be more susceptible than a money market fund is to credit risk, interest rate risk, valuation risk and other risks relevant to the Fund’s investments. The Funds do not seek to maintain a stable net asset value of $1.00 per share.
Offshore Investor Risk. Investors, such as the Funds, seeking to trade in foreign currencies may have limited access to certain currency markets due to a variety of factors including government regulations, adverse tax treatment exchange controls, and currency convertibility issues. These limitations and restrictions may impact the availability, liquidity and pricing of the financial instruments that are necessary for a Fund to gain exposure to the currency markets. If a Fund’s ability to enter into contracts to purchase or sell its FX Base Currency is impaired, the Fund may not be able to achieve its investment objective.
Portfolio Turnover Risk. Each Fund may engage in active and frequent trading of securities and financial instruments to rebalance its portfolio due to changes in interest rates in order to attempt to align its yield with the yield of the Fund’s FX Base Currency. High portfolio turnover may result in increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to shareholders of higher income or losses as compared to a fund with less active trading policies.
Redemption-in-Cash Risk. Unlike most ETFs, each Fund generally does not make in-kind redemptions. Each Fund may be required to sell portfolio securities or other assets in order to obtain the cash needed to meet redemption orders. This may cause a Fund to sell a security and recognize a capital gain or loss that might not have been incurred if a Fund had made redemptions-in-kind. Consistent with seeking to achieve its investment objective, each Fund will seek to mitigate this risk by typically investing only in short-term United States dollar denominated debt instruments and spot foreign exchange contracts. In addition, the use of cash subscriptions and redemptions may cause the Fund’s shares to trade in the market at greater bid-ask spreads or greater premiums or discounts to the Fund’s NAV.
Reliance on Trading Partners Risk. The economies of the countries in which the Funds have currency exposure are highly dependent on trade with certain key trading partners. Reduction in spending on products and services by these key trading partners, institution of tariffs or other trade barriers or a slowdown in the economies of key trading partners may adversely affect the performance of any FX Base Currency in which the Funds invest and have a material adverse effect on the value of each Fund.
Risk of Investing in Australia. Investment exposure to the Australian dollar will subject the iShares Australian Dollar ETF to regulatory, political, currency, security, and economic risks specific to Australia. The Australian economy is heavily dependent on exports from the agricultural and mining sectors. As a result, the Australian economy is susceptible to fluctuations in the commodity markets. The Australian economy is also becoming increasingly dependent on its growing services industry. The Australian economy is dependent on trading with key trading partners, including the United States, China, Japan, Singapore and certain European countries. Reduction in spending on Australian products and services, or changes in any of the economies may cause an adverse impact on the Australian economy.

Risk of Investing in Canada. The United States is Canada’s largest trading and investment partner, and the Canadian economy is significantly affected by developments in the U.S. economy. Since the implementation of NAFTA in 1994 among Canada, the United States and Mexico, total two-way merchandise trade between the United States and Canada has more than doubled. To further this relationship, the three NAFTA countries entered into the Security and Prosperity Partnership of North America in March 2005, which may further affect Canada’s dependency on the U.S. economy. Any downturn in U.S. or Mexican economic activity is likely to have an adverse impact on the Canadian economy. The Canadian economy is also dependent upon external trade with other key trading partners, including China and the EU. In addition, Canada is a large supplier of natural resources (e.g., oil, natural gas and agricultural products). As a result, the Canadian economy is sensitive to fluctuations in certain commodity prices.

Risk of Investing in China. The Chinese economy is subject to a considerable degree of economic, political and social instability:
Offshore Renminbi Market Risk. As part of China’s plans to make the Chinese renminbi a more flexible currency for settling cross-border trade, with the ultimate aim of creating a freely floating (unpegged) currency, China has implemented two versions of its currency: the onshore yuan (CNY) and the offshore yuan (CNH). The onshore yuan is also referred to as the “onshore renminbi” and the offshore yuan is also referred to as the “offshore renminbi.” The reason for using two versions of the currency is to facilitate a controlled roll-out of Chinese renminbi as an international currency for trade, investment and reserve, without exposing the Chinese economy to possible shocks. Although the onshore renminbi and the offshore renminbi are the same currency, they trade at different rates because there are different supply and demand conditions for the two versions of the currency. For most of the period since the offshore renminbi began trading actively in late 2010, the offshore renminbi has tended to trade at stronger rates to the United States dollar than the onshore renminbi, primarily because of supply and demand forces and market segmentation. Currently, offshore renminbi demand exceeds supply and China controls offshore renminbi liquidity through a variety of measures, including a Hong Kong-based clearing bank. This results in many of the offshore renminbi distortions relative to onshore renminbi. Additionally, China has adopted restrictive regulations concerning international transfer and settlement of, and other transactions involving, the onshore renminbi, while the offshore renminbi, in contrast, is less regulated. While the onshore renminbi market is expected to continue to grow, it is relatively new and may not be as liquid as more established currency markets.
Economic Risk. The Chinese economy has grown rapidly during the past several years and there is no assurance that this growth rate will be maintained. In fact, the Chinese economy may experience a significant slowdown as a result of, among other things, a deterioration in global demand for Chinese exports, as well as contraction in spending on domestic goods by the Chinese consumer. In addition, China may
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experience substantial rates of inflation or economic recessions, causing a negative effect on the economy and the value of its currency. Delays in enterprise restructuring, slow development of well-functioning financial markets and widespread corruption have also hindered performance of the Chinese economy.
Government Control and Regulations. The Chinese government has implemented significant economic reforms in order to liberalize trade policy, promote foreign investment in the economy, reduce government control of the economy and develop market mechanisms. There can be no assurance these reforms will continue or that they will be effective. Despite recent reform and privatizations, significant regulation of investment and industry is still pervasive and the Chinese government may restrict foreign ownership of Chinese corporations and repatriation of assets, which may adversely affect the Chinese economy. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies that may be connected to governmental influence, a lack of publicly-available information and/or political and social instability.
Political and Social Risk. The Chinese government is authoritarian and has periodically used force to suppress civil dissent. Disparities of wealth and the pace of economic liberalization may lead to social turmoil, violence and labor unrest. In addition, China continues to experience disagreements related to integration with Hong Kong and religious and nationalist disputes in Tibet and Xinjiang. There is also a greater risk involved in currency fluctuations, currency convertibility, interest rate fluctuations and higher rates of inflation as a result of internal social unrest or conflicts with other countries. Unanticipated political or social developments may result in sudden and significant investment losses. China’s growing income inequality and worsening environmental conditions also are factors that may affect the Chinese economy and the value of its currency.
Risk of Investing in Developed Countries. Developed countries generally tend to rely on services sectors (e.g., the financial services sector) as the primary means of economic growth. A prolonged slowdown in, among others, services sectors is likely to have a negative impact on economies of certain developed countries. Developed countries experienced a significant economic slowdown during the recent financial crisis. In the past, certain developed countries have been targets of terrorism. Acts of terrorism in developed countries or against their interests abroad may cause uncertainty in the financial markets and adversely affect the economy of the country. Heavy regulation of, among others, labor and product markets may have an adverse effect on certain economies. Such regulations may negatively affect economic growth or cause prolonged periods of recession. Many developed countries are heavily indebted and face rising healthcare and retirement expenses. In addition, price fluctuations of certain commodities and regulations impacting the import of commodities may negatively affect developed country economies.
Risk of Investing in Emerging Markets. Investments in emerging markets are subject to a greater risk of loss than investments in more developed markets. In addition, emerging markets often have less uniformity in accounting and reporting requirements, unreliable valuation and greater risk associated with custody. Certain emerging markets countries may also lack the infrastructure necessary to induce large amounts of foreign trade and investments. This is due to, among other things, the potential for greater market volatility, lower trading volume, inflation, political and economic instability, greater risk of a market shutdown and more governmental limitations on foreign investments than typically found in more developed markets. Political risks of emerging markets may include unstable governments, nationalization, restrictions on foreign ownership and investment, laws preventing repatriation of assets and legal systems that do not adequately protect property rights. Market risks of emerging markets may include government intervention in securities or currency markets.
Risk of Investing in Japan. Japan may be subject to political, economic, nuclear, and labor risks. Any of these risks, individually or in the aggregate, can impact an investment made in Japan.
Economic Risk. The growth of Japan's economy has historically lagged that of its Asian neighbors and other major developed economies. The Japanese economy is heavily dependent on international trade and has been adversely affected by trade tariffs, other protectionist measures, competition from emerging economies and the economic conditions of its trading partners. Japan is also heavily dependent on oil imports, and higher commodity prices could therefore have a negative impact on the Japanese economy.

Political Risk. Historically, Japan has had unpredictable national politics and may experience frequent political turnover. Future political developments may lead to changes in policy that might adversely affect the iShares Japanese Yen ETF’s investments. In addition, China has become an important trading partner with Japan. Japan's political relationship with China, however, has become strained. Should political tension increase, it could adversely affect the Japanese economy and destabilize the region as a whole.
Large Government Debt Risk. The Japanese economy faces several concerns, including a financial system with large levels of nonperforming loans, over-leveraged corporate balance sheets, extensive cross-ownership by major corporations, a changing corporate governance structure, and large government deficits. These issues may cause a slowdown of the Japanese economy.
Currency Risk. The Japanese yen has fluctuated widely at times and any increase in its value may cause a decline in exports that could weaken the Japanese economy. Japan has, in the past, intervened in the currency markets to attempt to maintain or reduce the value of the yen. Japanese intervention in the currency markets could cause the value of the yen to fluctuate sharply and unpredictably and could cause losses to investors.

Nuclear Energy Risk. The nuclear power plant catastrophe in Japan in March 2011 may have short-term and long-term effects on the Japanese economy and its nuclear energy industry, the extent of which are currently unknown.

Labor Risk. Japan has an aging workforce and has experienced a significant population decline in recent years. Japan’s labor market appears to be undergoing fundamental structural changes, as a labor market traditionally accustomed to lifetime employment adjusts to meet the need for increased labor mobility, which may adversely affect Japan’s economic competitiveness.
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Geographic Risk. Natural disasters, such as earthquakes, volcanoes, typhoons and tsunamis, could occur in Japan or surrounding areas and could negatively affect the Japanese economy, and, in turn, could negatively affect the iShares Japanese Yen ETF.

Risk of Investing in Mexico. Investment exposure to the Mexican peso will subject the iShares Mexican Peso ETF to risks that are specific to Mexico, including regulatory, political, and economic risks. The Mexican economy, among other things, is dependent upon external trade with other economies, specifically with the United States and certain Latin American countries. As a result, Mexico is dependent on, among other things, the U.S. economy and any change in the price or demand for Mexican exports may have an adverse impact on the Mexican economy. Recently, Mexico has experienced an outbreak of violence related to drug trafficking. Incidents involving Mexico’s security may have an adverse effect on the Mexican economy and cause uncertainty in its financial markets. In the past, Mexico has experienced high interest rates, economic volatility and high unemployment rates.

Political and Social Risk. Mexico has been destabilized by local insurrections, social upheavals, drug related violence, and the recent public health crisis related to the H1N1 influenza outbreak. Recurrence of these or similar conditions may adversely impact the Mexican economy. In addition, Mexico has had one political party dominating its government until the elections of 2000. Recently, Mexican elections have been contentious and have been very closely decided. Changes in political parties or other Mexican political events may affect the economy and cause instability.

Risk of Investing in New Zealand. Investment exposure to the New Zealand dollar will subject the iShares New Zealand Dollar ETF to regulatory, political, currency, and economic risks specific to New Zealand. The New Zealand economy is heavily dependent on exports from the agricultural sector. Leading agricultural exports include dairy products, meat, forest products, fruit and vegetables, fish, and wool. New Zealand also has substantial reserves of natural gas, coal, and oil. As a result, the New Zealand economy is susceptible to fluctuations in demand for agricultural products and certain commodities. The New Zealand economy is also becoming increasingly dependent on its growing services industry.

Risk of Investing in Norway. Investment exposure to the Norwegian krone will subject the iShares Norwegian Krone ETF to legal, regulatory, political, currency, security, and economic risks specific to Norway. Norway is a major producer of oil and gas, and Norway’s economy is subject to the risk of fluctuations in oil and gas prices. The high value of the Norwegian krone as compared to other currencies could have a damaging effect on Norwegian exports and investments. The influx of oil and gas revenue has permitted Norway to expand its social welfare system. In recent years, labor costs in Norway have increased faster than those of its major trading partners, eroding industrial competitiveness.

Risk of Investing in Singapore. Investment exposure to the Singapore dollar will subject the iShares Singapore Dollar ETF to legal, regulatory, political, currency and economic risks specific to Singapore. Specifically, political and economic developments of its neighbors may have an adverse effect on Singapore’s economy. In addition, because its economy is export driven, Singapore relies heavily on its trading partners. China is a major purchaser of Singapore's exports and serves as a source of Singapore's imports. Singapore derives a significant portion of its foreign investments from China. Singapore also has substantial economic exposure to Malaysia and the United States. As a result, Singapore’s economy is susceptible to fluctuations in the world economy. A downturn in the economies of China, Malaysia or the United States, among other countries or regions, could adversely affect Singapore's economy. In addition, Singapore’s economy may be particularly vulnerable to external market changes due to its smaller size.

Risk of Investing in Sweden. Investment exposure to the Swedish krona will subject the iShares Swedish Krona ETF to legal, regulatory, political, currency, security and economic risks specific to Sweden. Among other things, Sweden’s economy is heavily dependent on trading relationships with certain key partners, including the United States, Germany and other Western European nations. Future changes in the price or the demand for Swedish products or services by the United States, Germany and other Western European nations or changes in these countries’ economies, trade regulations or currency exchange rates could adversely impact the Swedish economy and the Swedish krona. Many of the developed Western European nations that Sweden trades with are member states of the EU and EMU. As a result, these member states are dependent on one another economically and politically. Sweden has not joined the EMU, however, the Swedish economy is vulnerable to fluctuations in the economies and monetary policies of its trading partners who are members of the EMU. Sweden has a generous social welfare system and over 70% of its workforce is unionized. These factors can negatively impact the Swedish economy by causing increased government spending, higher production costs and lower productivity, among other things.

Risk of Investing in Switzerland. Investment exposure to the Swiss franc will subject the iShares Swiss Franc ETF to legal, regulatory, political, currency, security, and economic risks specific to Switzerland. Among other things, Switzerland’s economy is heavily dependent on trading relationships with certain key trading partners, including the United States, United Kingdom, France and Germany. Future changes in the price or the demand for Swiss products or services by the United States, United Kingdom, France and Germany or changes in these countries’ economies, trade regulations or currency exchange rates could adversely impact the Swiss economy. Switzerland’s economy relies heavily on the banking sector. Recently, allegations have surfaced that certain Swiss banking institutions marketed and sold offshore tax evasion services to U.S. citizens. Future litigation or settlements arising from these offshore tax evasion services may have a negative impact on the Swiss economy. Due to the lack of natural resources, Switzerland is dependent upon imports for raw materials. As a result, any drastic price fluctuations in the price of certain raw materials will likely have a significant impact on the Swiss economy.

Risk of Investing in Thailand. Investment exposure to the Thai offshore baht involves risks that are specific to Thailand, including, legal, regulatory, political, security and economic risks. Thailand's economy is export-dependent and relies heavily on trading relationships with certain key trading partners, including the United States, China, Japan and other Asian countries. The recent financial crisis and political uncertainty weakened Thailand's economic growth by reducing domestic and international demand for both goods and services. Future changes in the price or the demand for Thailand's exported products by the United States, China, Japan or other Asian countries, or changes in these countries' economies, trade regulations or currency exchange rates could adversely impact the Thai economy. Thailand has been a
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target of terrorist threats, which may cause uncertainty in the Thai financial markets and adversely affect the performance of the Thai economy and the Thai offshore baht.

Risk of Investing in Turkey. Investment exposure to the Turkish lira involves risks that are specific to Turkey, including, legal, regulatory, political, security and economic risks. With few of its own natural resources, the Turkish economy is import-dependent. Turkey’s main import partners include Russia, Germany, China and the United States. The Turkish economy is dependent upon exports to other economies, specifically to Germany, other EU countries and Iraq. As a result, Turkey is dependent on these economies and any change in the price or demand for Turkish exports may have an adverse impact on the Turkish economy. Turkey has historically experienced acts of terrorism and strained relations related to border disputes with certain neighboring countries. Historically, Turkey’s national politics have been unpredictable and subject to influence by the military, and its government may be subject to sudden change. Disparities of wealth, the pace and success of democratization and capital market development and religious and racial disaffection have also led to social and political unrest. Unanticipated or sudden political or social developments may result in sudden and significant investment losses. These and other factors could have a negative impact on the iShares Turkish Lira ETF’s performance.

Risk of Investing in the United Kingdom. Investment exposure to British pounds will subject the iShares British Pound ETF to regulatory, political, currency, security, and economic risks specific to the United Kingdom. The British economy relies heavily on export of financial services to the United States and other European countries. A prolonged slowdown in the financial services sector may have a negative impact on the British economy. In the past, the United Kingdom has been a target of terrorism. Acts of terrorism in the United Kingdom or against British interests abroad may cause uncertainty in the British financial markets and adversely affect the performance of the British economy and the British pound. The British economy, along with the United States and certain other European economies, experienced a significant economic slowdown during the recent financial crisis.

Tax Risk. The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to a Fund’s business of investing in securities. The issuance of such regulations could prevent the Funds from achieving their investment objectives.

U.S. Government Issuers Risk. Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. government.

United States Economic Trading Partners Risk. The United States is a significant, and in some cases the most significant, trading partner of, or foreign investor in certain countries in which the Funds invest and the economies of these countries may be particularly affected by changes in the U.S. economy. Decreasing U.S. imports, new trade regulations or a recession in the United States may have a material adverse effect on economies of these countries and, as a result, securities or financial instruments to which the Funds have exposure.

Valuation Risk. The sales price a Fund could receive for a security or financial instrument may differ from a Fund’s valuation of the security or financial instrument, particularly for those that trade in low volume or volatile markets or that are valued using a fair value methodology. Currency markets may be open on days when a Fund does not price its shares. As a result, the value of the spot foreign exchange contracts in a Fund’s portfolio may change on days when shareholders will not be able to purchase or sell a Fund’s shares.
Because currencies generally are traded between financial institutions in the over-the-counter market, there may not be a central pricing source or independent evaluator of the current exchange rate for a particular FX Base Currency relative to the United States dollar. The prices posted by foreign currency dealers may not necessarily reflect the broader market for foreign currencies. Additionally, a foreign currency dealer will select closing prices to be used in determining margin requirements and in periodically marking to market the positions in customer accounts. Prices a foreign currency dealer uses may vary from those available to banks and other participants in the interbank market. Consequently, there may be several different quoted prices on the same FX Base Currency, which may differ from the price used by the Funds to calculate their NAV.
Yield Risk. A Fund’s yield is designed to reflect the overnight cash rate of its FX Base Currency, less Fund operating expenses. The overnight cash rate of certain currencies may from time to time be very low, zero or negative. When the overnight cash rate of a Fund’s FX Base Currency is lower than the Fund’s operating expenses, the Fund will experience a “negative yield,” or daily loss, before taking into account the effect of currency movements. A Fund with a negative yield will lose money absent positive currency movements. There is no guarantee that a Fund with a negative yield will experience positive currency movements to offset losses from a negative yield.
Portfolio Holdings Information
A description of the Trust's policies and procedures with respect to the disclosure of the Funds' portfolio securities is available in the Funds' Statement of Additional Information (“SAI”). The holdings of each Fund can be found at www.iShares.com. Fund fact sheets provide information regarding each Fund's top holdings and may be requested by calling 1-800-iShares (1-800-474-2737).
Management
Investment Adviser. As investment adviser, BFA has overall responsibility for the general management and administration of the Trust. BFA provides an investment program for each Fund and manages the investment of each Fund’s assets. In managing the Funds, BFA may draw upon the research and expertise of its asset management affiliates with respect to certain portfolio securities. In seeking to achieve a Fund's investment objective, BFA uses teams of portfolio managers, investment strategists and other investment specialists. This team approach brings together many disciplines and leverages BFA’s extensive resources.
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Pursuant to the Investment Advisory Agreement between BFA and the Trust (entered into on behalf of the Funds), BFA is responsible for substantially all expenses of the Funds, except interest expenses, taxes, brokerage expenses, future distribution fees or expenses and extraordinary expenses.
For its investment advisory services to each Fund, BFA will be paid a management fee from each Fund based on a percentage of the Fund's average daily net assets, at an annual rate as set forth below. Because the Funds have been in operation for less than one full fiscal year, this percentage reflects the rate at which BFA will be paid. BFA has contractually agreed to waive a portion of its management fees in an amount equal to each Fund's pro rata share of the fees and expenses attributable to each Fund's investments in other registered investment companies advised by BFA, or its affiliates, “Acquired Fund Fees and Expenses,” through December 31, 2015. The contractual waiver may be terminated prior to December 31, 2015 only upon written agreement of the Trust and BFA.

The following table sets forth the aforementioned annual rates for each Fund:

Fund Management
Fee
iShares Australian Dollar ETF 0.20%
iShares British Pound ETF 0.20%
iShares Canadian Dollar ETF 0.20%
iShares Chinese Offshore Renminbi ETF 0.30%
iShares Euro ETF 0.20%
iShares Japanese Yen ETF 0.20%
iShares Mexican Peso ETF 0.40%
iShares New Zealand Dollar ETF 0.30%
iShares Norwegian Krone ETF 0.30%
iShares Singapore Dollar ETF 0.30%
iShares Swedish Krona ETF 0.30%
iShares Swiss Franc ETF 0.20%
iShares Thai Offshore Baht ETF 0.40%
iShares Turkish Lira ETF 0.40%
BFA is located at 400 Howard Street, San Francisco, CA 94105. It is an indirect wholly owned subsidiary of BlackRock, Inc. (“BlackRock”). As of June 30, 2013, BFA and its affiliates provided investment advisory services for assets in excess of $3.85 trillion. BFA and its affiliates deal, trade and invest for their own accounts in the types of securities in which the Funds may also invest.

A discussion regarding the basis for the Board's approval of the Investment Advisory Agreement with BFA will be available in each Fund's annual report for the period ending October 31.
From time to time, a manager, analyst, or other employee of BlackRock or its affiliates may express views regarding a particular asset class, company, security, industry, or market sector. The views expressed by any such person are the views of only that individual as of the time expressed and do not necessarily represent the views of BlackRock or any other person within the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and BlackRock disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for the Funds are based on numerous factors, may not be relied on as an indication of trading intent on behalf of the Funds.
Portfolio Managers. Thomas Kolimago and Richard Mejzak are primarily responsible for the day-to-day management of the Funds. Each Portfolio Manager is responsible for various functions related to portfolio management, including, but not limited to, developing and implementing the Fund’s investment process and investment strategy, researching and reviewing investment strategy and overseeing members of his or her portfolio management team that have more limited responsibilities. The following information provides additional information about each portfolio manager and member of the iShares Global Investment Research Team.

Thomas Kolimago has been with BlackRock since 1998. Mr. Kolimago became a portfolio manager for BFA in 2012. Mr. Kolimago has been a Portfolio Manager of the Funds since inception.

Richard Mejzak has been with BlackRock since 1990, including his years with Merrill Lynch Investment Managers, which was acquired by BlackRock in 2006. Mr. Mejzak became a portfolio manager for BFA in 2012. Mr. Mejzak has been a Portfolio Manager of the Funds since inception.

The Funds' SAI provides additional information about the Portfolio Managers' compensation, other accounts managed by the Portfolio Managers and the Portfolio Managers' ownership (if any) of shares in the Funds.
Administrator, Custodian and Transfer Agent. State Street Bank and Trust Company (“State Street”) is the administrator, custodian and transfer agent for each Fund.
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Conflicts of Interest. BFA wants you to know that there are certain entities with which BFA has relationships that may give rise to conflicts of interest or the appearance of conflicts of interest. These entities are BFA’s affiliates, including BlackRock and the PNC Financial Services Group, Inc., and each of their affiliates, directors, partners, trustees, managing members, officers and employees (collectively, the “Affiliates”).

The activities of BFA and the Affiliates in the management of, or their interest in, their own accounts and other accounts they manage, may present conflicts of interest that could disadvantage the Funds and their shareholders. BFA and its Affiliates provide investment management services to other funds and discretionary managed accounts that may follow an investment program similar to that of the Funds. BFA and its Affiliates are involved worldwide with a broad spectrum of financial services and asset management activities and may engage in the ordinary course of business in activities in which their interests or the interests of their clients may conflict with those of the Funds. BFA or one or more of the Affiliates acts, or may act, as an investor, investment banker, research provider, investment manager, financier, underwriter, adviser, market maker, trader, prime broker, lender, agent or principal, and have other direct and indirect interests, in securities, currencies and other instruments in which the Funds may directly or indirectly invest. Thus, it is likely that the Funds will have multiple business relationships with and will invest in, engage in transactions with, make voting decisions with respect to, or obtain services from, entities for which BFA or an Affiliate seeks to perform investment banking or other services.
BFA or one or more Affiliates may engage in proprietary trading and advise accounts and funds that have investment objectives similar to those of the Funds and/or that engage in and compete for transactions in the same types of securities, currencies and other instruments as the Funds, including in securities issued by other open-end and closed-end investment management companies, including investment companies that are affiliated with the Funds and BFA, to the extent permitted under the Investment Company Act of 1940, as amended (the “1940 Act”). The trading activities of BFA and these Affiliates are carried out without reference to positions held directly or indirectly by the Funds and may result in BFA or an Affiliate having positions that are adverse to those of the Funds.
No Affiliate is under any obligation to share any investment opportunity, idea or strategy with the Funds. As a result, an Affiliate may compete with the Funds for appropriate investment opportunities. As a result of this and several other factors, the results of the Funds' investment activities may differ from those of an Affiliate and of other accounts managed by an Affiliate, and it is possible that the Funds could sustain losses during periods in which one or more Affiliates and other accounts achieve profits on their trading for proprietary or other accounts. The opposite result is also possible.

The Funds may, from time to time, enter into transactions in which BFA’s or an Affiliate’s clients have an interest adverse to the Funds. Furthermore, transactions undertaken by Affiliate-advised clients may adversely impact the Funds. Transactions by one or more Affiliate-advised clients or BFA may have the effect of diluting or otherwise disadvantaging the values, prices or investment strategies of the Funds.

The Funds' activities may be limited because of regulatory restrictions applicable to one or more Affiliates, and/or their internal policies designed to comply with such restrictions. In addition, the Funds may invest in securities of companies with which an Affiliate has developed or is trying to develop investment banking relationships or in which an Affiliate has significant debt or equity investments or other interests. The Funds also may invest in securities of companies for which an Affiliate provides or may in the future provide research coverage. An Affiliate may have business relationships with, and purchase, distribute or sell services or products from or to, distributors, consultants or others who recommend the Funds or who engage in transactions with or for the Funds, and may receive compensation for such services. The Funds may also make brokerage and other payments to Affiliates in connection with the Funds' portfolio investment transactions.
BFA has a business relationship with the ECN provider for the Funds pursuant to which the ECN provider receives compensation from Authorized Participants in connection with subscription and redemption transactions for the Funds. In addition, BFA has a broader business relationship with the ECN provider in connection with other products and services.
The activities of BFA or the Affiliates may give rise to other conflicts of interest that could disadvantage the Funds and their shareholders. BFA has adopted policies and procedures designed to address these potential conflicts of interest. See the Funds' SAI for further information.

Legal Proceedings. On January 18, 2013, a lawsuit was filed in the United States District Court for the Middle District of Tennessee by Laborers’ Local 265 Pension Fund and Plumbers and Pipefitters Local No. 572 Pension Fund against BFA, BTC, and the current members of the iShares Trust Board of Trustees and the Board of Directors of iShares, Inc. (collectively, “Defendants”) for alleged violations of, among other things, Sections 36(a) and 36(b) of the 1940 Act. The complaint purports to be brought derivatively on behalf of iShares Trust and iShares, Inc., as well as the following eight funds: iShares Russell MidCap Index Fund; iShares MSCI EAFE Index Fund; iShares MSCI Emerging Markets Index Fund; iShares Russell 2000 Growth Index Fund; iShares Russell 2000 Value Index Fund; iShares Core S&P Mid-Cap ETF; iShares Core S&P Small-Cap ETF; and iShares Dow Jones U.S. Real Estate Index Fund (the “Funds”). The complaint alleges, among other things, that BFA and BTC breached their fiduciary duties under the 1940 Act by charging allegedly excessive fees in connection with the provision of securities lending services to the Funds, that the individual defendants breached their fiduciary duties under the 1940 Act by approving those fee arrangements, and that the securities lending contracts are unenforceable under Section 47(b) of the 1940 Act. Plaintiffs seek injunctive relief, rescission of the securities lending contracts and monetary damages of an unspecified amount. Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit. On March 11, 2013, the Defendants filed a motion to dismiss the lawsuit.
Shareholder Information
Additional shareholder information, including how to buy and sell shares of the Funds, is available free of charge by calling toll-free: 1-800-iShares (1-800-474-2737) or visiting our website at www.iShares.com.
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Buying and Selling Shares. Shares of the Funds may be acquired or redeemed directly from a Fund only in blocks of shares equal to or greater than the Minimum Subscription Size stated for the specific Fund in the Subscriptions and Redemptions section of this Prospectus. Only an Authorized Participant (as defined in the Subscriptions and Redemptions section) may engage in subscription or redemption transactions directly with a Fund. Once issued, shares of the Funds generally trade in the secondary market.

Shares of each Fund are listed on a national securities exchange for trading during the trading day. Shares can be bought and sold throughout the trading day like shares of other publicly traded companies. The Trust does not impose any minimum investment for shares of a Fund purchased on an exchange. The Funds' shares trade under the trading symbols listed on the front cover of this Prospectus.

Buying or selling Fund shares on an exchange involves two types of costs that may apply to all securities transactions. When buying or selling shares of the Funds through a broker, you will likely incur a brokerage commission or other charges determined by your broker. The commission is frequently a fixed amount and may be a significant proportional cost for investors seeking to buy or sell small amounts of shares. In addition, you may incur the cost of the “ spread,” that is, any difference between the bid price and the ask price. The spread varies over time for shares of each Fund based on the Fund’s trading volume and market liquidity, and is generally lower if the Fund has a lot of trading volume and market liquidity, and higher if the Fund has little trading volume and market liquidity.

The Board has adopted a policy of not monitoring for frequent purchases and redemptions of Fund shares (“frequent trading”) that appear to attempt to take advantage of a potential arbitrage opportunity presented by a lag between a change in the value of a Fund’s portfolio securities after the close of the primary markets for the Fund’s portfolio securities and the reflection of that change in the Fund’s NAV (“market timing”), because each Fund generally sells and redeems its shares directly for cash, subject to the conditions described below under Subscriptions and Redemptions. The Board has not adopted a policy of monitoring for other frequent trading activity because shares of the Funds are listed for trading on a national securities exchange.

The national securities exchange on which each Fund's shares are listed is open for trading Monday through Friday and is closed on weekends and the following holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Each Fund’s primary listing exchange is NYSE Arca.
Section 12(d)(1) of the 1940 Act restricts investments by investment companies in the securities of other investment companies. Registered investment companies are permitted to invest in the Funds beyond the limits set forth in Section 12(d)(1), subject to certain terms and conditions set forth in SEC rules or in an SEC exemptive order, issued to the Trust. In order for a registered investment company to invest in shares of the Funds beyond the limitations of Section 12(d)(1) pursuant to the exemptive relief obtained by the Trust, the registered investment company must enter into an agreement with the Trust.
Book Entry. Shares of the Funds are held in book-entry form, which means that no stock certificates are issued. The Depository Trust Company (“DTC”) or its nominee is the record owner of all outstanding shares of each Fund and is recognized as the owner of all shares for all purposes.
Investors owning shares of the Funds are beneficial owners as shown on the records of DTC or its participants. DTC serves as the securities depository for shares of the Funds. DTC participants include securities brokers and dealers, banks, trust companies, clearing corporations and other institutions that directly or indirectly maintain a custodial relationship with DTC. As a beneficial owner of shares, you are not entitled to receive physical delivery of stock certificates or to have shares registered in your name, and you are not considered a registered owner of shares. Therefore, to exercise any right as an owner of shares, you must rely upon the procedures of DTC and its participants. These procedures are the same as those that apply to any other securities that you hold in book-entry or “street name” form.

Share Prices. The trading prices of a Fund’s shares in the secondary market generally differ from the Fund’s daily NAV and are affected by market forces such as supply and demand, economic conditions and other factors. Information regarding the intraday value of shares of each Fund, also known as the “indicative optimized portfolio value” (“IOPV”), is disseminated every 15 seconds throughout the trading day by the national securities exchange on which the Fund's shares are listed or by market data vendors or other information providers. The IOPV is based on the current value of the securities, spot foreign exchange contracts and/or cash required to be deposited in exchange for Fund shares. The IOPV does not necessarily reflect the precise composition of the current portfolio of securities or financial instruments held by a Fund at a particular point in time or the best possible valuation of the current portfolio. Therefore, the IOPV should not be viewed as a “real-time” update of each Fund's NAV, which is computed only once a day. The IOPV is generally determined by using both current market quotations and/or price quotations obtained from broker-dealers that may trade in the portfolio securities held by the Funds. The quotations of certain Fund holdings may not be updated during U.S. trading hours if such holdings do not trade in the United States. The Funds are not involved in, or responsible for, the calculation or dissemination of the IOPV and make no representation or warranty as to its accuracy.

Determination of Net Asset Value. The NAV for each Fund (except the iShares New Zealand Dollar ETF) normally is determined once daily Monday through Friday, generally as of the regularly scheduled close of business of the New York Stock Exchange (“NYSE”) (normally 4:00 p.m., Eastern time) on each day that the NYSE is open for trading. The NAV for the iShares New Zealand Dollar ETF normally is determined at 7:00 a.m. New Zealand time, Tuesday through Friday (which is 1:00 p.m., 2:00 p.m. or 3:00 p.m. Monday through Thursday, Eastern time, depending on daylight savings time) and 8:00 a.m., 9:00 a.m. or 10:00 a.m. New Zealand time on Saturday (which is Friday 4:00 p.m., Eastern time), depending on daylight savings time. The NAV is based on prices at the time of closing provided that (a) any Fund assets or liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollars at the prevailing market rates on the date of valuation as quoted by one or more data service providers (as detailed below) and (b) U.S. fixed-income assets may be valued as of the announced closing time for trading in fixed-income instruments in a particular market or exchange. The NAV of each Fund is calculated by dividing the value of the net assets of the Fund (i.e., the value of its total assets less total liabilities) by the total number of outstanding shares of the Fund, generally rounded to the nearest cent.
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The value of the securities and other assets and liabilities held by each Fund are determined pursuant to valuation policies and procedures approved by the Board.
Generally, trading in non-U.S. securities, U.S. government securities, money market instruments and certain fixed-income securities is substantially completed each day at various times prior to the close of business on the NYSE. The values of such securities used in computing the NAV of the Funds are determined as of such times. Non-U.S. securities held by the Funds may trade on weekends or other days when the Funds do not price their shares. As a result, the Funds’ NAV may change on days when Authorized Participants will not be able to purchase or redeem Fund shares.
Certain short-term debt securities held by the Funds may be valued on the basis of amortized cost. The Funds may value certain fixed income portfolio securities using prices provided directly from one or more broker-dealer, market makers, or independent third-party pricing services which may use matrix pricing and valuation models, as well as recent market transactions for the same or similar assets, to derive value for short-term debt securities.

When market quotations are not readily available or are believed by BFA to be unreliable, each Fund’s investments are valued at fair value. Fair value determinations are made by BFA in accordance with policies and procedures approved by the Trust's Board. BFA may conclude that a market quotation is not readily available or is unreliable if a security or other asset or liability does not have a price source due to its lack of liquidity, if a market quotation differs significantly from recent price quotations or otherwise no longer appears to reflect fair value, where the security or other asset or liability is thinly traded, or where there is a significant event subsequent to the most recent market quotation. A “significant event” is an event that, in the judgment of BFA, is likely to cause a material change to the closing market price of the asset or liability held by a Fund. Non-U.S. securities  or other instruments whose values are affected by volatility that occurs in U.S. markets for related or highly correlated assets (e.g., ADRs, GDRs or ETFs) on a trading day after the close of non-U.S. securities markets may be fair valued.
Fair value represents a good faith approximation of the value of an asset or liability. The fair value of an asset or liability held by a Fund is the amount the Fund might reasonably expect to receive from the current sale of that asset or the cost to extinguish that liability in an arm’s-length transaction. Valuing a Fund’s investments using fair value pricing will result in prices that may differ from current market valuations and that may not be the prices at which those investments could have been sold during the period in which the particular fair values were used.
The value of assets or liabilities denominated in foreign currencies will be converted into U.S. dollars using exchange rates deemed appropriate by BFA as investment adviser.
Dividends and Distributions
General Policies. Dividends from net investment income, if any, generally are declared and paid monthly by each Fund. Distributions of net realized securities gains and net currency gains, if any, generally are declared and paid once a year, but the Trust may make distributions on a more frequent basis for each Fund. The Trust reserves the right to declare special distributions if, in its reasonable discretion, such action is necessary or advisable to preserve its status as a regulated investment company (“RIC”) or to avoid imposition of income or excise taxes on undistributed income or realized gains.
Dividends and other distributions on shares of each Fund are distributed on a pro rata basis to beneficial owners of such shares. Dividend payments are made through DTC participants and indirect participants to beneficial owners then of record with proceeds received from a Fund.
Dividend Reinvestment Service. No dividend reinvestment service is provided by the Trust. Broker-dealers may make available the DTC book-entry Dividend Reinvestment Service for use by beneficial owners of a Fund for reinvestment of their dividend distributions. Beneficial owners should contact their broker to determine the availability and costs of the service and the details of participation therein. Brokers may require beneficial owners to adhere to specific procedures and timetables. If this service is available and used, dividend distributions of both income and realized gains will be automatically reinvested in additional whole shares of a Fund purchased in the secondary market.
Taxes. As with any investment, you should consider how your investment in shares of the Funds will be taxed. The tax information in this Prospectus is provided as general information, based on current law. You should consult your own tax professional about the tax consequences of an investment in shares of the Funds.
Unless your investment in Fund shares is made through a tax-exempt entity or tax-deferred retirement account, such as an IRA, you need to be aware of the possible tax consequences when a Fund makes distributions or you sell Fund shares.
Taxes on Distributions. Distributions from a Fund’s net investment income, including distributions out of the Fund’s net short-term capital gains, if any, are taxable to you as ordinary income. Distributions by a Fund of net long-term capital gains in excess of net short-term capital losses (capital gain dividends) are taxable to you as long-term capital gains, regardless of how long you have held a Fund’s shares. In addition, a 3.8% U.S. federal Medicare contribution tax is imposed on “net investment income,” including, but not limited to, interest, dividends, and net gain, of U.S. individuals with income exceeding $200,000 (or $250,000 if married and filing jointly), and of estates and trusts. Spot foreign exchange contracts produce ordinary income or losses for tax purposes. Foreign currency losses may offset a Fund’s taxable net income but not short-term or long-term capital gains. An overall net ordinary loss incurred by a Fund for a given year cannot be carried forward to offset ordinary income in future years.
In general, your distributions are subject to U.S. federal income tax for the year when they are paid. Certain distributions paid in January, however, may be treated as paid on December 31 of the prior year.
If a Fund’s distributions exceed current and accumulated earnings and profits, all or a portion of the distributions made in the taxable year may be recharacterized as a return of capital to shareholders. Distributions in excess of a Fund’s minimum distribution requirements, but not
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in excess of the Fund’s earnings and profits, will be taxable to shareholders and will not constitute nontaxable returns of capital. A return of capital distribution generally will not be taxable but will reduce the shareholder’s cost basis and result in a higher capital gain or lower capital loss when those shares on which the distribution was received are sold. Once a shareholder’s cost basis is reduced to zero, further distributions will be treated as capital gain, if the shareholder holds shares of the Fund as capital assets.
If you are neither a resident nor a citizen of the United States or if you are a non-U.S. entity, a Fund’s ordinary income dividends (which include distributions of net short-term capital gains) will generally be subject to a 30% U.S. withholding tax, unless a lower treaty rate applies, provided that withholding tax will generally not apply to any gain or income realized by a non-U.S. shareholder in respect of any distributions of long-term capital gains or upon the sale or other disposition of shares of a Fund.
A 30% withholding tax will be imposed on U.S.-source dividends, interest and other income items paid after June 30, 2014, and proceeds from the sale of property producing U.S.-source dividends and interest paid after December 31, 2016, to (i)  foreign financial institutions including non-U.S. investment funds unless they agree to collect and disclose to the Internal Revenue Service (“IRS”) information regarding their direct and indirect U.S. account holders and (ii) certain other foreign entities, unless they certify certain information regarding their direct and indirect U.S. owners. To avoid withholding, foreign financial institutions will need to (i) enter into agreements with the IRS that state that they will provide the IRS information, including the names, addresses and taxpayer identification numbers of direct and indirect U.S. account holders, comply with due diligence procedures with respect to the identification of U.S. accounts, report to the IRS certain information with respect to U.S. accounts maintained, agree to withhold tax on certain payments made to non-compliant foreign financial institutions or to account holders who fail to provide the required information, and determine certain other information as to their account holders, or (ii) in the event that an applicable intergovernmental agreement and implementing legislation are adopted, provide local revenue authorities with similar account holder information. Other foreign entities will need to provide the name, address, and taxpayer identification number of each substantial U.S. owner or certifications of no substantial U.S. ownership unless certain exceptions apply, or agree to provide certain information to other revenue authorities for transmittal to the IRS.
Interest and capital gains earned by a Fund with respect to non-U.S. securities may give rise to withholding and other taxes imposed by non-U.S. countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes. If more than 50% of the total assets of each Fund at the close of a year consists of non-U.S. stocks or securities, such Fund may “pass through” to you certain non-U.S. income taxes, if any, (including withholding taxes) paid by the Fund. This means that you would be considered to have received as an additional dividend your share of such non-U.S. taxes, but you may be entitled to either a corresponding tax deduction in calculating your taxable income, or, subject to certain limitations, a credit in calculating your U.S. federal income tax.
The U.S. Department of the Treasury has the statutory authority to restrict by regulation the ability of a registered investment company to realize foreign currency gains that are not directly related to the fund’s business of investing in securities. The issuance of such regulations could prevent the Funds from achieving their investment objectives.
For purposes of foreign tax credits for U.S. shareholders of the Funds, foreign capital gains taxes may not produce associated foreign source income, thereby limiting a U.S. person’s ability to use such credits.
If you are a resident or a citizen of the United States, by law, back-up withholding at a 28% rate will apply to your distributions and proceeds if you have not provided a taxpayer identification number or social security number and made other required certifications.

Taxes When Shares are Sold. Currently, any capital gain or loss realized upon a sale of Fund shares is generally treated as a long-term gain or loss if the shares have been held for more than one year. Any capital gain or loss realized upon a sale of Fund shares held for one year or less is generally treated as short-term gain or loss, except that any capital loss on the sale of shares held for six months or less is treated as long-term capital loss to the extent that capital gain dividends were paid with respect to such shares. Any such capital gains, including from sales of Fund shares or from capital gain dividends, are included in “ net investment income” for purposes of the 3.8% U.S. federal Medicare contribution tax mentioned above.
The foregoing discussion summarizes some of the consequences under current U.S. federal tax law of an investment in a Fund. It is not a substitute for personal tax advice. You may also be subject to state and local taxation on Fund distributions and sales of shares. Consult your personal tax adviser about the potential tax consequences of an investment in shares of a Fund under all applicable tax laws.
Subscriptions and Redemptions. Prior to trading in the secondary market, shares of each Fund may be created at NAV by certain markets makers, large investors and institutions who are Authorized Participants and only in amounts equal to or greater than a Fund’s Minimum Subscription Size. Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size.
Orders for the issuance of shares (each a “Subscription Order”) placed by Authorized Participants who have entered into an authorized participant agreement with BlackRock Investments, LLC (the “Distributor”), an affiliate of BFA, must be received in proper form before the Fund’s order cut-off time on any day that the NYSE is open for trading. Subscription Orders received by the Distributor or its agent after the Fund’s order cut-off time will be considered by the Distributor to have been received on the next day that the NYSE is open for regular trading.
For each Subscription Order for a Fund (except the iShares New Zealand Dollar ETF) accepted by the Distributor and the agent, the Authorized Participant must submit its order by 4:00 p.m., Eastern time on the Subscription Order acceptance date and deliver cash in United States dollars in an amount equal to the NAV of the shares on the Subscription Order acceptance date by 11:00 a.m., Eastern time on the settlement date (two business days after the Subscription Order acceptance date). For Subscription Orders for the iShares New Zealand Dollar ETF accepted by the Distributor and the agent, the Authorized Participant must submit its order before 7:00 a.m. New Zealand time Tuesday through Friday (which is 1:00 p.m., 2:00 p.m. or 3:00 p.m. Monday through Thursday, Eastern time, depending on daylight savings
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time) and 8:00 a.m., 9:00 a.m. or 10:00 a.m. New Zealand time on Saturday (which is Friday 4:00 p.m., Eastern time), depending on daylight savings time, on the Subscription Order acceptance date and deliver cash in United States dollars in an amount equal to the NAV of the shares on the Subscription Order acceptance date by 11:00 a.m., Eastern time on the settlement date (two business days after the Subscription Order acceptance date). In addition, the Authorized Participant must deliver the standard transaction fee and the amount of the transaction costs and expenses incurred by the Fund in connection with issuance of the shares. The Authorized Participant or its affiliate may also incur transaction costs and other expenses by connection with entering into a Qualifying FX Transaction with the Fund.

For purposes of the foregoing, a “Qualifying FX Transaction” means a spot foreign exchange contract pursuant to which a Fund is entitled to receive from its counterparty an amount of a Fund’s FX Base Currency equal to the product of (i) the Fund’s NAV expressed in the Fund’s FX Base Currency on the day the order is accepted by the Fund, minus any income earned and accrued, and expenses, and (ii) the number of shares being issued or redeemed, and is required to deliver to its counterparty United States dollars in an amount equal to the product of (a) the Fund’s NAV on the day the order is accepted by the Fund, minus any income earned and accrued, and expenses, and (b) the number of shares being issued or redeemed. An Authorized Participant, or its affiliate, entering into a Qualifying FX Transaction with a Fund will be required to bear the transaction costs associated with effecting the Qualifying FX Transaction.
Shares of each Fund may be redeemed at NAV only by an Authorized Participant and only in blocks of shares equal to or greater than a Fund’s Minimum Subscription Size. Orders for the redemption of shares (“Redemption Order”) must be received in proper form by the Distributor before the Fund’s order cut-off time on any day that the NYSE is open for trading.
Redemption Orders received by the Distributor or its agent after a Fund’s order cut-off time will be considered by the Distributor to have been received on the next day that the NYSE is open for regular trading. Redemptions will generally be made in cash, but a Fund may also pay redemptions by delivering a designated portfolio of securities (including any portion of such securities for which cash may be substituted) held by the Fund.
The prices at which subscriptions and redemptions occur are based on the next calculation of NAV after a Subscription Order or Redemption Order is received in an acceptable form under the authorized participant agreement.
Only an Authorized Participant may create or redeem Fund shares directly with a Fund.
As a result of any system failure or other interruption, orders either may not be executed according to a Fund’s instructions or may not be executed at all, or the Fund may not be able to place or change orders. Foreign currency dealers generally disclaim any liability for any such failure of hardware or software, system downtime or communications interruption.
To the extent a Fund engages in in-kind transactions, each Fund intends to comply with the U.S. federal securities laws in accepting securities for deposit and satisfying redemptions with securities by, among other means, assuring that any securities accepted for deposit and any securities used to satisfy redemption requests will be sold in transactions that would be exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). Further, an Authorized Participant that is not a “qualified institutional buyer,” as such term is defined under Rule 144A of the 1933 Act, will not be able to receive securities that are restricted securities eligible for resale under Rule 144A.
Subscriptions and redemptions must be made through a firm that is either a member of the Continuous Net Settlement System of the National Securities Clearing Corporation or a DTC participant and has executed an agreement with the Distributor with respect to subscriptions and redemptions of a Fund’s shares. Information about the procedures regarding subscription and redemption of a Fund’s shares (including the cut-off times for receipt of subscription and redemption orders) is included in the Funds’ SAI.
Because new shares may be created and issued on an ongoing basis, at any point during the life of a Fund, a “distribution,” as such term is used in the 1933 Act, may be occurring. Broker-dealers and other persons are cautioned that some activities on their part may, depending on the circumstances, result in their being deemed participants in a distribution, in a manner that could render them statutory underwriters and subject to the prospectus delivery and liability provisions of the 1933 Act. Any determination of whether one is an underwriter must take into account all the relevant facts and circumstances of each particular case.
Broker-dealers should also note that dealers who are not “underwriters” but are participating in a distribution (as contrasted to ordinary secondary transactions), and thus dealing with shares that are part of an “unsold allotment” within the meaning of Section 4(a)(3)(C) of the 1933 Act, would be unable to take advantage of the prospectus delivery exemption provided by Section 4(a)(3) of the 1933 Act. For delivery of prospectuses to exchange members, the prospectus delivery mechanism of Rule 153 under the 1933 Act is available only with respect to transactions on a national securities exchange.
Costs Associated with Subscriptions and Redemptions. Authorized Participants are charged standard subscription and redemption transaction fees to offset transfer, processing and other transaction costs associated with the issuance and redemption of a Fund’s shares. The standard subscription and redemption transaction fees are set forth in the table below. The standard subscription transaction fee is charged to the Authorized Participant on the day such Authorized Participant creates a Fund’s shares, and is the same regardless of the number of shares purchased by the Authorized Participant on the applicable business day. Similarly, the standard redemption transaction fee is charged to the Authorized Participant on the day such Authorized Participant redeems a Fund’s shares, and is the same regardless of the number of shares redeemed by the Authorized Participant on the applicable business day. If a Subscription Order or Redemption Order consists solely or partially of cash, which will be the case for most orders, Authorized Participants may also be required to bear the costs of transferring a Fund’s FX Base Currency, portfolio securities or other Fund assets from the Fund to the account of the Authorized Participant or its client. The ECN provider may charge Authorized Participants a transaction fee in connection with subscription and redemption transactions in Fund shares. It is anticipated that this transaction fee will vary depending on the value of Fund shares purchased or redeemed
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by the Authorized Participant on a given day. Investors who use the services of a broker or other financial intermediary to acquire or dispose of Fund shares may pay fees for such services.

The following table shows, as of _______, 2013, the approximate value of the Minimum Subscription Size required to issue or redeem shares of each Fund and standard fees for subscriptions and redemptions (as described above):

Fund   Approximate
Dollar Value
of the Minimum
Subscription Size
  Minimum
Subscription
Size (Number
of Shares)
  Standard
Subscription/
Redemption
Transaction Fee
  Maximum
Additional Charge
for Subscription
Orders*
  Maximum
Additional Charge
for Redemption
Orders*
iShares Australian Dollar ETF   $ 5,092,050   50,000   $102   3.0%   2.0%
iShares British Pound ETF   3,876,350   25,000   155   3.0%   2.0%
iShares Canadian Dollar ETF   4,978,000   50,000   100   3.0%   2.0%
iShares Chinese Offshore Renminbi ETF   4,037,250   25,000   161   3.0%   2.0%
iShares Euro ETF   3,280,400   25,000   131   3.0%   2.0%
iShares Japanese Yen ETF   5,055,000   50,000   101   3.0%   2.0%
iShares Mexican Peso ETF   4,154,000   50,000   83   3.0%   2.0%
iShares New Zealand Dollar ETF   4,201,450   50,000   84   3.0%   2.0%
iShares Norwegian Krone ETF   4,304,750   25,000   172   3.0%   2.0%
iShares Singapore Dollar ETF   4,065,350   50,000   81   3.0%   2.0%
iShares Swedish Krona ETF   3,836,250   25,000   153   3.0%   2.0%
iShares Swiss Franc ETF   5,328,550   50,000   107   3.0%   2.0%
iShares Thai Offshore Baht ETF   1,695,500   50,000   34   3.0%   2.0%
iShares Turkish Lira ETF   2,785,900   50,000   56   3.0%   2.0%

* As a percentage of the net asset value per subscription order or redemption order, inclusive, in the case of redemption orders, of the standard redemption transaction fee.
If a Subscription Order or Redemption Order consists solely or partially of cash, which will be the case for most orders, and the applicable Fund places a brokerage transaction for portfolio securities or enters into a Qualifying FX Transaction with the Authorized Participant or its affiliated broker-dealer, the Authorized Participant (or its affiliated broker-dealer) may be required, in its capacity as broker-dealer or counterparty with respect to that transaction, to cover certain brokerage, tax, foreign exchange, execution, and market impact costs, as further described in the Funds’ SAI.
Householding. Householding is an option available to certain Fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.
Distribution
The Distributor or its agent distributes shares for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Funds. The Distributor has no role in determining the policies of any Fund or the securities that are purchased or sold by any Fund. The Distributor’s principal address is 525 Washington Boulevard, Suite 1405, Jersey City, NJ 07310.

In addition, BFA or its Affiliates make payments to broker-dealers, registered investment advisers, banks or other intermediaries (together, “intermediaries”) related to marketing activities and presentations, educational training programs, conferences, the development of technology platforms and reporting systems, or their making shares of the Funds and certain other iShares funds available to their customers generally and in certain investment programs. Such payments, which may be significant to the intermediary, are not made by the Funds. Rather, such payments are made by BFA or its Affiliates from their own resources, which come directly or indirectly in part from fees paid by the iShares funds complex. Payments of this type are sometimes referred to as revenue-sharing payments. A financial intermediary may make decisions about which investment options it recommends or makes available, or the level of services provided, to its customers based on the payments it is eligible to receive. Therefore, such payments to an intermediary create conflicts of interest between the intermediary and its customers and may cause the intermediary to recommend the Funds or other iShares funds over another investment. More information regarding these payments is contained in the Funds' SAI. Please contact your salesperson or other investment professional for more information regarding any such payments his or her firm may receive from BFA or its Affiliates.
Financial Highlights
Financial highlights for the Funds are not available because, as of the effective date of the Prospectus, the Funds have not commenced operations, and therefore have no financial highlights to report.
Disclaimers
Shares of the Funds are not sponsored, endorsed or promoted by NYSE Arca. NYSE Arca makes no representation or warranty, express or implied, to the owners of the shares of the Funds or any member of the public regarding the ability of the Funds to achieve their investment objective. NYSE Arca is not responsible for, nor has it participated in, the determination of the Funds'
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investments, nor in the determination of the timing of, prices of, or quantities of shares of the Funds to be issued, nor in the determination or calculation of the equation by which the shares are redeemable. NYSE Arca has no obligation or liability to owners of the shares of the Funds in connection with the administration, marketing or trading of the shares of the Funds.

Without limiting any of the foregoing, in no event shall NYSE Arca have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
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For more information visit www.iShares.com or call 1-800-474-2737
Copies of the Prospectus, SAI and other information can be found on our website at www.iShares.com. For more information about the Funds, you may request a copy of the SAI. The SAI provides detailed information about the Funds and is incorporated by reference into this Prospectus. This means that the SAI, for legal purposes, is a part of this Prospectus.
If you have any questions about the Trust or shares of the Funds or you wish to obtain the SAI free of charge, please:
Call: 1-800-iShares or 1-800-474-2737 (toll free)
Monday through Friday, 8:30 a.m. to 6:30 p.m. (Eastern time)
Email: iSharesETFs@blackrock.com
Write: c/o BlackRock Investments, LLC
525 Washington Boulevard, Suite 1405, Jersey City, NJ 07310

Information about the Funds (including the SAI) can be reviewed and copied at the SEC's Public Reference Room in Washington, D.C., and information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-551-8090. Reports and other information about the Funds are available on the EDGAR database on the SEC's website at www.sec.gov, and copies of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by writing to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

No person is authorized to give any information or to make any representations about each Fund and its shares not contained in this Prospectus and you should not rely on any other information. Read and keep this Prospectus for future reference.

©2013 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK, INC. are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.
Investment Company Act File No.: 811-09729
IS-P-___-____


Table of Contents
The information in this Statement of Additional Information is not complete and may be changed. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. The securities described herein may not be sold until the registration statement becomes effective. This Statement of Additional Information is not an offer to sell or the solicitation of an offer to buy securities and is not soliciting an offer to buy these securities in any state in which the offer, solicitation or sale would be unlawful.
iShares® Trust
Statement of Additional Information
Dated ________, 2013
This combined Statement of Additional Information (“SAI”) is not a prospectus. It should be read in conjunction with the current prospectuses (each, a “Prospectus” and collectively, the “Prospectuses”) for the following funds of iShares Trust (the “Trust”):
Fund   Ticker   Stock Exchange
iShares Australian Dollar ETF   AUDS   NYSE Arca
iShares British Pound ETF   GBPS   NYSE Arca
iShares Canadian Dollar ETF   CADS   NYSE Arca
iShares Chinese Offshore Renminbi ETF   CNHS   NYSE Arca
iShares Euro ETF   EURS   NYSE Arca
iShares Japanese Yen ETF   JPYS   NYSE Arca
iShares Mexican Peso ETF   MXNS   NYSE Arca
iShares New Zealand Dollar ETF   NZDS   NYSE Arca
iShares Norwegian Krone ETF   NOKS   NYSE Arca
iShares Singapore Dollar ETF   SGDS   NYSE Arca
iShares Swedish Krona ETF   SEKS   NYSE Arca
iShares Swiss Franc ETF   CHFS   NYSE Arca
iShares Thai Offshore Baht ETF   THBS   NYSE Arca
iShares Turkish Lira ETF   TRYS   NYSE Arca

The Prospectuses for the above-listed funds (each, a “Fund” and collectively, the “Funds”) are dated ________, 2013, as amended and supplemented from time to time. Capitalized terms used herein that are not defined have the same meaning as in the applicable Prospectus, unless otherwise noted. A copy of the Prospectus for each Fund may be obtained without charge by writing to the Trust's distributor, BlackRock Investments, LLC (the “Distributor”), 525 Washington Boulevard, Suite 1405, Jersey City, NJ 07310, calling 1-800-iShares (1-800-474-2737) or visiting www.iShares.com. Each Fund's Prospectus is incorporated by reference into this SAI.
iShares® is a registered trademark of BlackRock Fund Advisors (“BFA”) or its affiliates.


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TABLE OF CONTENTS
  Page
General Description of the Trust and its Funds 1
Exchange Listing and Trading 2
Investment Strategies and Risks 3
Borrowing 3
Currency Transactions 4
Diversification Status 4
Illiquid Securities 4
Municipal Securities 4
Regulation Regarding Derivatives 6
Repurchase Agreements 6
Short-Term Instruments and Temporary Investments 7
Future Developments 7
General Considerations and Risks 7
Borrowing Risk 7
Capital Control Risk 7
Counterparty Risk 8
Cyber Security Issues 8
Municipal Securities Risk 8
Not a Money Market Fund 9
Privately-Issued Securities Risk 9
Repurchase Agreement Risk 9
Risk of Investing in Australasia 9
Risk of Investing in Asia 10
Risk of Investing in Australia 10
Risk of Investing in Canada 10
Risk of Investing in Central and South America 11
Risk of Investing in China 11
Risk of Investing in Developed Countries 12
Risk of Investing in Emerging Markets 12
Risk of Investing in Europe 13
Risk of Investing in Japan 14
Risk of Investing in Mexico 14
Risk of Investing in New Zealand 14
Risk of Investing in North America 15
Risk of Investing in Norway 15
Risk of Investing in Singapore 15
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  Page
Risk of Investing in Sweden 15
Risk of Investing in Switzerland 15
Risk of Investing in Thailand 16
Risk of Investing in Turkey 16
Risk of Investing in the United Kingdom 16
United States Economic Trading Partners Risk 16
Risk of Investing in the Financials Sector 16
Proxy Voting Policy 17
Portfolio Holdings Information 18
Investment Limitations 19
Continuous Offering 21
Management 22
Trustees and Officers 22
Committees of the Board of Trustees 29
Remuneration of Trustees 33
Control Persons and Principal Holders of Securities 35
Potential Conflicts of Interest 35
Investment Advisory, Administrative and Distribution Services 40
Investment Adviser 40
Portfolio Managers 41
Codes of Ethics 43
Anti-Money Laundering Requirements 43
Administrator, Custodian and Transfer Agent 43
Distributor 44
Payments by BFA and its Affiliates 44
Brokerage Transactions 45
Additional Information Concerning the Trust 46
Shares 46
Termination of the Trust or a Fund 47
DTC as Securities Depository for Shares of the Funds 47
Subscription and Redemption of Shares 48
General 48
Fund Deposit 48
Cash Purchase Method 49
Role of the Authorized Participant 49
Subscription Orders 49
Timing of Submission of Subscription Orders 50
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  Page
Acceptance of Orders for Shares 50
Issuance of Shares 50
Costs Associated with Subscription Transactions 51
Redemption of Shares 51
Cash Redemption Method 52
Costs Associated with Redemption Transactions 52
Placement of Redemption Orders 53
Taxation on Subscriptions and Redemptions of Shares 54
Regular Holidays 54
Redemptions 57
Taxes 59
Regulated Investment Company Qualifications 59
Taxation of RICs 59
Excise Tax 60
Net Capital Loss Carryforwards 60
Taxation of U.S. Shareholders 60
Sales of Shares 61
Back-Up Withholding 62
Sections 351 and 362 62
Taxation of Certain Derivatives 62
Excess Inclusion Income 62
Non-U.S. Investments 63
Passive Foreign Investment Companies 63
Reporting 64
Other Taxes 64
Taxation of Non-U.S. Shareholders 64
Financial Statements 64
Miscellaneous Information 65
Counsel 65
Independent Registered Public Accounting Firm 65
Shareholder Communications to the Board 65
Appendix A A-1
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General Description of the Trust and its Funds
The Trust currently consists of more than ___ investment series or portfolios. The Trust was organized as a Delaware statutory trust on December 16, 1999 and is authorized to have multiple series or portfolios. The Trust is an open-end management investment company registered with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940, as amended (the “Investment Company Act” or the “1940 Act”). The offering of the Trust’s shares is registered under the Securities Act of 1933, as amended (the “1933 Act”). This SAI relates to the following Funds:

iShares Australian Dollar ETF
iShares British Pound ETF
iShares Canadian Dollar ETF
iShares Chinese Offshore Renminbi ETF
iShares Euro ETF
iShares Japanese Yen ETF
iShares Mexican Peso ETF
iShares New Zealand Dollar ETF
iShares Norwegian Krone ETF
iShares Singapore Dollar ETF
iShares Swedish Krona ETF
iShares Swiss Franc ETF
iShares Thai Offshore Baht ETF
iShares Turkish Lira ETF

The investment objective of each Fund is to seek to provide its shareholders a daily return that reflects the increase or decrease in the exchange rate of a specified currency against the United States dollar and the yield of the specified currency, minus the Fund’s fees and expenses. Each Fund is managed by BFA, an indirect wholly owned subsidiary of BlackRock, Inc.
Each Fund will issue or redeem shares only in aggregations equal to or greater than that Fund’s Minimum Subscription Size (as described in the Subscription and Redemption of Shares section of this SAI). Issuances and redemptions of shares may occur in increments of one share or more in excess of the Minimum Subscription Size. Only authorized participants who have entered into agreements with a Fund’s distributor are able to issue or redeem shares. A Fund will only issue or redeem shares in return for a specified amount of cash.
Shares of the Funds are listed for trading on NYSE Arca, Inc. (“NYSE Arca” or the “Listing Exchange”), a national securities exchange. Shares of each Fund are traded in the secondary market and elsewhere at market prices that may be at, above or below the Fund’s net asset value per share (“NAV”).
The Trust reserves the right to permit or require that subscriptions and redemptions of shares are effected fully in cash. See the Subscription and Redemption of Shares section of this SAI. In all cases, conditions and fees will be limited in accordance with the requirements of SEC rules and regulations applicable to management investment companies offering redeemable securities.
The Funds intend to use the following FTSE Indexes as portfolio benchmarks to measure their investment returns. The Funds are not index funds and do not seek to track the performance of their respective FTSE benchmarks.

Fund   Benchmark Index
iShares Australian Dollar ETF   FTSE Cürex FX Benchmark AUDUSD FIX
iShares British Pound ETF   FTSE Cürex FX Benchmark GBPUSD FIX
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Fund   Benchmark Index
iShares Canadian Dollar ETF   FTSE Cürex FX Benchmark CADUSD FIX
iShares Chinese Offshore Renminbi ETF   FTSE Cürex FX Benchmark CNHUSD FIX
iShares E