Nasdaq Dorsey Wright

There are no changes to any of the iShares models this week. As we do each quarter, today we review the performance of the models covered in this report.

There are no changes to any of the iShares models this week. As we do each quarter, today we review the performance of the models covered in this report. US equities continued to advance in the third quarter as the S&P 500 (SPX) gained a little under 8%. The iShares Sector Rotation Model (ISHRSECT) gained just over 7.25%, underperforming SPX by about ½ percent. Meanwhile, the iShares Tactical Model (ISHRTACTICAL) gained 6.52%; the model’s exposure to insurers was a drag on performance as the iShares US Insurance ETF (IAK) finished the quarter down 32 basis points.

International equities also rose in Q3 as the iShares MSCI EAFE ETF (EFA) and the iShares MSCI Emerging Markets ETF (EEM) gained 4.45% and 10.7%, respectively. The iShares International Model (ISHRINTL) finished between the two, gaining 9.56%. However, the model remains well ahead of both benchmarks year-to-date with a gain of 40%.

Interest rates fell in the third quarter, boosting bond prices. The iShares Fixed Income Model (ISHRFIXED) gained 1.74% for the quarter, outpacing the iShares US Core Bond ETF (AGG) by about 70 basis points. For the year, ISHRFIXED has 6.3%, while AGG is up 3.46%.

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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.