* Source: BlackRock. For illustrative purposes only. Does not include commissions or sales charges or fees. Ending balances assume the tax liability of 1% is paid out of fund assets each year.
** Source: Morningstar, as of 3/31/14. “Tax cost” is a Morningstar measure of the impact of taxes on capital gains and income distributions on performance. Averages are calculated using the oldest share class of all Open-End Mutual Funds available in the U.S. (excluding municipal bond and money market funds) with 10 year track records as of 3/31/14.
Rob Nestor, head of iShares Retail Product Strategy at BlackRock, contributed to this article.