Nasdaq Dorsey Wright

iShares Alternative Spotlight Feature

Published: January 5, 2017

This content is for informational purposes only. This should not be construed as solicitation. The general public should consult their financial advisor for additional information related to investment decisions.

There are no changes in any of this models this week. We offer complete performance review for each of the iShares alternative models both for Q4 and 2016 as a whole.

When all was said and done, the major "theme" in terms of asset class performance in 2016 remained US Equities. Despite heightened volatility coupled with a correction in Q1, money that was diversified away from US equities throughout the year, likely caused a lag relative to major market benchmarks such as the S&P 500 Index SPX and the Dow Jones Industrial Average DJIA. Nonetheless, there were still gains to be had in "alternative" areas of the market. For instance the broad fixed income benchmark, AGG, managed a 4.08% gain in 2016, despite a less than ideal Q4. The iShares Fixed Income Model ISHRFIXED was able to outperformance this benchmark both for the past quarter and the year as a whole, rallying 7.69% for the year. The iShares Alternative Model and the iShares Income Model, were also both able to beat their respective benchmarks for the year. Below we have provided a complete performance review for each of these models both during Q4 and 2016 as a whole.

iShares Fixed Income Model ISHRFIXED Q4 Changes:

12/28/2016 – Sell IGOV, Buy GHYG
11/23/2016 – Sell TLH, Buy CEMB
11/16/2016 – Sell LEMB, Buy HYG
11/09/2016 – Sell TLT, Buy EMHY

iShares Alternative Model ISHRALT Q4 Changes:

11/30/2016 – sell IAU, Buy SLV
11/23/2016 – sell ICF, Buy WOOD

iShares Income Model ISHRINCOME Q4 Changes:

11/16/2016 – Sell KXI, Buy JPMV

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DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. BlackRock sponsors the Dorsey Wright iShares ETF Models. However, analysis, models and recommendations are created and provided solely by Dorsey, Wright & Associates (Dorsey Wright). Neither BlackRock, BlackRock Advisors and its affiliates, nor SEI Investments Distribution Co. or its affiliates (SEI) are affiliated with Dorsey Wright. Neither BlackRock nor SEI provides investment advice or recommendations regarding any security, fund or market. Analysis, models and recommendations should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including iShares. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. No individual risk management tools are used in maintaining this model. This model may not be suitable for all investors. As the investment professional making the final decision with respect to allocations, remember to adhere to NASD Rules 2090 and 2111 (formerly NYSE Rule 405, Know Your Customer). The percentage of the portfolio devoted to any iShares strategy, as well as final individual weightings are at the sole discretion of the financial advisor and not Dorsey, Wright & Associates, BlackRock or SEI Investments Distribution Co. or its affiliates (SEI) . If you are not familiar with the Point & Figure methodology, we suggest you read "Point & Figure Charting, 4th Edition" by Thomas J. Dorsey or visit the PnF University at www.dorseywright.com. If you are not familiar with the iShares products, or Exchange Traded Funds (ETFs), we suggest you visit www.ishares.com for more information.