Nasdaq Dorsey Wright

Today, there is a change within the iShares Sector Rotation Model, which is to sell the remaining Healthcare exposure through the IYH.

Today there is a change within the iShares Sector Rotation Model. The buy and sell decisions within this portfolio are determined based on individual RS charts for each of the members in the potential universe versus the iShares Dow Jones US ETF IYY. Over the course of the past week, there has been enough of a price dispersion between the iShares U.S. Healthcare ETF IYH and the IYY to cause a reversal down in to O's on the RS chart. This reversal tells us that IYH is weakening relative to the broad market and as a result, we have sold the IYH out of the portfolio. The IYH was previously added to the model back on January 7th of 2015. While it was a leader within that portfolio during different times of its holding period, it ultimately contributed a loss of -3.34 while in the portfolio. Fortunately, the model still managed to beat both the IYY and the SPX, rallying 11.73 versus 10.63% and 10.82%, respectively (from 1/7/15-12/7/16). As a result of this change, the model has rid itself of all healthcare exposure, as it sold out of Biotech IBB earlier in the year. Additionally, each of the remaining 10 positions will be rebalanced to 10% each to reflect an equally weighted portfolio.

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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.