transactions involving the acquisition or
disposition of portfolio securities, regardless of whether the Fund may be considered to be an underwriter under the 1933 Act or is otherwise engaged in the underwriting business to the extent permitted by applicable
law.
With respect to the fundamental
policy relating to lending set forth in (7) above, the Investment Company Act does not prohibit each Fund from making loans (including lending its securities); however, SEC staff interpretations currently prohibit
funds from lending more than one-third of their total assets (including lending its securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition, collateral
arrangements with respect to options, forward currency and futures transactions and other derivative instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered
loans.
Non-Fundamental Investment
Policies
Each Fund has adopted a
non-fundamental policy not to make short sales of securities or maintain a short position, except to the extent permitted by each Fund's Prospectus and SAI, as amended from time to time, and applicable law.
The iShares Evolved U.S. Consumer
Staples ETF has adopted a non-fundamental investment policy, in accordance with Rule 35d-1 under the 1940 Act, to invest, under normal circumstances, at least 80% of the value of its net assets, plus the amount of any
borrowings for investment purposes, in U.S. listed common stock of large-, mid- and small-capitalization consumer staples companies, as defined by a proprietary classification system.
The iShares Evolved U.S.
Discretionary Spending ETF has adopted a non-fundamental investment policy, in accordance with Rule 35d-1 under the 1940 Act, to invest, under normal circumstances, at least 80% of the value of its net assets, plus
the amount of any borrowings for investment purposes, in U.S. listed common stock of large-, mid- and small-capitalization discretionary spending companies, as defined by a proprietary classification system.
The iShares Evolved U.S. Financials
ETF has adopted a non-fundamental investment policy, in accordance with Rule 35d-1 under the 1940 Act, to invest, under normal circumstances, at least 80% of the value of its net assets, plus the amount of any
borrowings for investment purposes, in U.S. listed common stock of large-, mid- and small-capitalization financial companies, as defined by a proprietary classification system.
The iShares Evolved U.S. Healthcare
Staples ETF has adopted a non-fundamental investment policy, in accordance with Rule 35d-1 under the 1940 Act, to invest, under normal circumstances, at least 80% of the value of its net assets, plus the amount of any
borrowings for investment purposes, in U.S. listed common stock of large-, mid- and small-capitalization healthcare equipment and services companies, as defined by a proprietary classification system.
The iShares Evolved U.S. Innovative
Healthcare ETF has adopted a non-fundamental investment policy, in accordance with Rule 35d-1 under the 1940 Act, to invest, under normal circumstances, at least 80% of the value of its net assets, plus the amount of
any borrowings for investment purposes, in U.S. listed common stock of large-, mid- and small-capitalization pharmaceutical and biotechnology companies, as defined by a proprietary classification system.
The iShares Evolved U.S. Media and
Entertainment ETF has adopted a non-fundamental investment policy, in accordance with Rule 35d-1 under the 1940 Act, to invest, under normal circumstances, at least 80% of the value of its net assets, plus the amount
of any borrowings for investment purposes, in U.S. listed common stock of large-, mid- and small-capitalization media and entertainment companies, as defined by a proprietary classification system.
The iShares Evolved U.S. Technology
ETF has adopted a non-fundamental investment policy, in accordance with Rule 35d-1 under the 1940 Act, to invest, under normal circumstances, at least 80% of the value of its net assets, plus the amount of any
borrowings for investment purposes, in U.S. listed common stock of large-, mid- and small-capitalization technology companies, as defined by a proprietary classification system.
Each Fund also has adopted a policy
to provide its shareholders with at least 60 days’ prior written notice of any change in such policy. If, subsequent to an investment, the 80% requirement is no longer met, a Fund’s future investments will
be made in a manner that will bring the Fund into compliance with this policy.
Each Fund has adopted a
non-fundamental policy not to purchase securities of other investment companies, except to the extent permitted by the Investment Company Act. As a matter of policy, however, each Fund will not purchase shares of any
registered open-end investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the