Eaton Vance Corp Two International Place Boston MA 02110 Office (617) 482-8260 wwweatonvancecom

October 4 2018

VIA ELECTRONIC MAIL

Mr Brent J Fields

Secretary

US Securities and Exchange Commission

100 F Street NE

Washington DC 20549‐1090

Re Proposed ETF Rule (Release Nos 33‐10515 and IC‐33140 File No S7‐15‐18 (Release))1

Dear Mr Fields

On behalf of Eaton Vance Corp and its subsidiaries and affiliates (Eaton Vance)2 I am writing to

respond to the Commissionrsquos request for comment on Proposed Rule 6c‐11 (the Proposed Rule) under

the Investment Company Act of 1940 as amended (the Investment Company Act) related disclosure

amendments and other matters addressed in the Release (collectively the Proposal) Eaton Vance

appreciates this opportunity to express our views on the Proposal

Eaton Vance supports the Proposalrsquos objectives to simplify the regulatory framework for

exchange‐traded funds (ETFs) to level the playing field among ETFs pursuing similar strategies and to

provide enhanced trading cost information and risk disclosures to ETF investors In the following pages

we comment and make recommendations on certain aspects of the Proposal provide supporting

documentation and address various other issues relating to ETFs and similar vehicles and instruments

1 Unless otherwise noted capitalized terms used in this letter have the same meanings as in the Release

2 Eaton Vance is a leading global asset manager whose history dates to 1924 With offices in North America Europe Asia and Australia Eaton Vance and its affiliates had consolidated assets under management of $4532 billion as of July 31 2018 offering individuals and institutions a broad array of investment strategies and wealth management solutions Our affiliate NextShares Solutions LLC (NextShares Solutions) is the developer and principal sponsor of NextSharestrade exchange‐traded managed funds (NextShares) NextShares are actively managed exchange‐traded products (ETPs) whose potential advantages over actively managed ETFs include maintaining the confidentiality of fund trading information and providing investor trade execution cost transparency and quality control Different from ETFs NextShares trade at market‐determined premiumsdiscounts to the fundrsquos next‐computed net asset value per share (NAV) referred to as ldquoNAV‐based tradingrdquo The Commission has granted exemptive relief to Eaton Vance Management and more than 15 other investment advisers to permit them to offer and operate NextShares 18 NextShares funds from eight fund sponsors are currently available in the marketplace For more information about Eaton Vance visit eatonvancecom For more information about NextShares see NextSharescom

Scope of the Proposed Rule

As described in the Release the Proposed Rule would apply to index‐based and actively

managed ETFs organized as open‐end funds The Proposed Rule would not apply to ETFs organized as

UITs or to leveraged ETFs share class ETFs or NextShares We understand and accept the

Commissionrsquos rationale for excluding each of these structures from the Proposed Rule

To clarify that NextShares fall outside the scope of the Proposed Rule we recommend that the

Commission modify the definition of ldquoexchange‐traded fundrdquo under the Proposed Rule Because each

NextShares fund is a registered open‐end management company (i) that issues (and redeems) creation

units to (and from) authorized participants in exchange for a basket and a cash balancing amount if any

and (ii) whose shares are listed on a national securities exchange and traded at market‐determined

premiumsdiscounts to the fundrsquos next‐computed net asset value (NAV) whether or not a NextShares

fund falls within the proposed definition of ldquoexchange‐traded fundrdquo hinges narrowly on whether

ldquomarket‐determined premiumsdiscounts to the fundrsquos next‐computed NAVrdquo are treated as ldquomarket‐

determined pricesrdquo3 For avoidance of doubt we recommend changing the term ldquomarket‐determined

pricesrdquo to ldquomarket prices determined at trade executionrdquo in the Proposed Rulersquos definition of

ldquoexchange‐traded fundrdquo4

Treatment of ETFs under the Proposed Rule

For ETFs covered by the Proposed Rule we agree with the proposed treatment of fund shares as

a ldquoredeemable securityrdquo under the Investment Company Act and the proposals to permit (a)

redemptions only in creation unit aggregations (b) trading in fund shares at market‐determined prices

(c) in‐kind transactions with certain affiliates (d) additional time for delivery of redemption proceeds

under certain circumstances and (e) the use of custom baskets in meeting redemptions in each case

subject to the limitations set forth in the Proposed Rule We further agree with the proposed conditions

for reliance on the Proposed Rule relating to the issuance and redemption of ETF shares and the

required listing of shares on a national securities exchange We disagree however with certain of the

proposed conditions for ETFs to rely on the Proposed Rule including conditions relating to

dissemination of Intraday Indicative Values (IIVs) the prescribed form of reporting current portfolio

3 See Release at page 271 for the proposed definition of ldquoexchange‐traded fundrdquo and footnote 192 on page 71 for discussion of the Commissionrsquos intent for the Proposed Rule not to apply to NextShares

4 Other than NextShares we are not aware of ETPs for which secondary market trading prices are determined other than at time of trade execution Our proposed definition of ldquoexchange‐traded fundrdquo for purposes of the Proposed Rule is not intended to preclude use of NAV‐based trading (or other order types for which trade prices are not determined at time of trade execution) by ETFs operating under the Proposed Rule rather the intent of the language we suggest is to exclude from treatment as ETFs under the Proposed Rule any ETPs that trade exclusively using NAV‐based trading or other order types for which secondary market trading prices are generally not determined at the time of trade execution

‐2‐

holdings the suspension of new share creations and various aspects of the proposed website and

marketing disclosures

IIVs We are of two minds on the proposed elimination of the current requirement for ETFs to

disseminate IIVs throughout each business dayrsquos market trading session On the one hand we

understand that todayrsquos ETF IIVs are often poor indicators of current intraday value as they can reflect

stale prices and lack a uniform calculation methodology On the other hand IIVs provide retail investors

with the best ndash and typically only ndash view they have into an ETFrsquos intraday values which we regard as

critical information for buyers and sellers of ETF shares seeking to accurately measure their trading

costs

As currently calculated and disseminated IIVs leave much to be desired as estimates of intraday

fund values and suitable proxies for measuring ETF investor trading costs For ETFs holding securities

that trade principally outside the US IIVs are routinely stale by several hours and depending on the

cycle of weekly trading and holidays may be out of date by several days To our understanding little

progress has been made in standardizing the calculation or increasing the utility of disseminated IIVs

since the first ETF was introduced in 1993 Because they are usually based on the last sale price IIVs

may be stale at the time of release even for ETFs that hold only domestic securities Because

dissemination is typically limited to intervals of 15 seconds IIVs may quickly become unrepresentative of

current trading during periods of rapid market movement Moreover current IIVs may not always be

based on an ETFrsquos entire portfolio and may not be calculated in the same manner as NAVs Real‐time

dissemination leaves no time or scope for evaluating inputs or checking calculations prior to release

Even when IIV calculations are consistently timely and accurate their utility may be limited by lack of

investor access and little or no availability of historical IIV data for comparative purposes

While acknowledging all the shortcomings of IIVs as they exist today we believe ETF investors

have a critical need for what IIVs seek to provide ndash timely information about intraday fund values that

can be used to assess ETF investor trading costs Rather than abandoning IIVs we believe the

Commission should take advantage of the current rulemaking process to undertake a comprehensive

review of how IIVs are calculated and disseminated with a goal to make them more useful

We believe the Commission should be open to a range of options for how and by whom future

IIVs are calculated and disseminated Without the Commissionrsquos active support for continuing IIVs we

fear that investors will lose access to essential information for evaluating the cost of buying and selling

ETFs In our view the proposed elimination of the requirement for ETFs to disseminate IIVs is a step in

the wrong direction ndash at odds with the Proposalrsquos objective to provide ETF investors with more and

better information about the trading costs they pay

Disclosure of Portfolio Holdings We agree with the proposed requirement for all ETFs operating

in reliance on the Proposed Rule (whether index‐based or actively managed) to disclose in full their

current portfolio holdings on a free public website prior to the beginning of market trading each

business day Like the Commission we view transparency of current holdings as necessary for ETFs to

‐3‐

trade with premiumsdiscounts to NAV and bid‐ask spreads sufficiently narrow to ensure equitable

treatment of buyers and sellers and to warrant treating ETF shares as redeemable securities under the

Investment Company Act

We recommend that ETFs operating in reliance on the Proposed Rule (a) be required to disclose

their daily portfolio holdings using a common downloadable or machine‐readable format specified by

the Commission and (b) be prohibited from imposing any restrictions on the legal access retrieval

distribution use or reuse of the disclosed portfolio holdings information As a technical matter we

question whether the proposed requirement for portfolio holdings information to be presented in the

manner prescribed within Article 12 of Regulation S‐X is appropriate We believe a better alternative

would be to require a common presentation format that closely corresponds to the generic listing

standards for actively managed ETFs adopted by the listing exchanges (Generic Listing Standards)

Different from Article 12 of Regulation S‐X the Generic Listing Standards have the advantage of

requiring ticker symbols CUSIPs or other standard identifiers of portfolio securities ndash which we regard as

essential to the efficient dissemination and use of disclosed ETF portfolio holdings information

In addition to supporting efficient ETF share arbitrage we see a potential role for the

dissemination of daily ETF portfolio holdings information in a standardized highly readable format

(without restrictions on use) in promoting the development of ldquonext generationrdquo IIVs There is strong

evidence that investor trading costs are often economically significant for many ETFs and that most ETF

investors do not currently have adequate information to accurately assess the costs they pay to buy and

sell ETF shares including costs in connection with intraday variations in premiumsdiscounts A market‐

based solution to todayrsquos IIV shortcomings could be to make the information required to calculate

intraday values broadly available in a standardized user‐friendly format and to encourage pricing

services and other potential providers to develop commercial ETF intraday valuation services that would

compete in the market on the basis of timeliness accuracy reliability and price

Relating to the required portfolio holdings disclosures the Release raises the question of

whether actively managed ETFs with less holdings transparency should be permitted under the

Proposed Rule We strongly oppose any consideration of permitting actively managed ETFs that do not

disclose their full holdings on a current daily basis to operate in reliance on the Proposed Rule

As background the attached Exhibits 1 and 2 prepared by Eaton Vance compare the

premiumdiscount experience of actively managed equity ETFs versus equity index ETFs in the same

Morningstar category over the period from the introduction of the first active ETFs in 2008 through the

end of 2017 Exhibit 1 shows the average of the absolute value of the daily closing premiumdiscount

and the average volatility of the daily closing premiumdiscount as measured based on the relationship

between NAV and closing price for each ETF The average of the absolute value of the daily closing

premiumdiscount measures how far on average an ETFrsquos closing price varies from NAV The average

volatility of the daily closing premiumdiscount is the average of the standard deviation of observed

premiumdiscount values for each ETF Exhibit 2 shows the difference between active and index ETFsrsquo

premiumdiscount experience across overlapping Morningstar categories Throughout our study period

‐4‐

actively managed ETFs were required to disclose their full holdings on a current daily basis and most

(but not all) index ETFs also followed this practice

In all years since the introduction of actively managed ETFs as a group they have demonstrated

higher and more variable premiumsdiscounts than comparable index ETFs across most Morningstar

equity categories that included both types of funds We attribute the observed higher and more

variable premiumsdiscounts of active ETFs to less‐efficient share arbitrage which in turn we attribute

to (a) the generally smaller size of actively managed ETFs versus index ETFs in the same category

reflecting greater scale economies in the management of index‐based products and the relative

newness of active ETFs (b) the generally lower trading volumes of active ETFs versus similarly sized

index ETFs since index products are typically more attractive for use as short‐term market exposure

vehicles and (c) the relatively greater ease of arbitraging index ETFs because in addition to trading

directly in the underlying fund holdings a market maker in index ETFs can hedge its ETF positions

intraday by transacting in corresponding index futures and options contracts index swaps similar index

ETFs and other index portfolio instruments without incurring meaningful basis risk On average the

more cumbersome process of hedging active ETF share inventory positions makes active ETFs more

difficult and costly to arbitrage

Given the higher and more variable premiumsdiscounts observed to date for fully transparent

active managed ETFs and the inherently greater difficulty of arbitraging less‐transparent funds we see

little reason to expect less‐transparent active ETFs to demonstrate secondary market trading

performance that meets the statutory standard for treatment as redeemable securities or the

expectations of ETF investors Accordingly we believe any future consideration by the Commission of

less‐transparent active ETF proposals should be through the established exemptive process

Suspension of Share Creations According to the Release the Commission believes that an ETF

may suspend the issuance of creation units ldquoonly for a limited time and only due to extraordinary

circumstances such as when markets on which the ETFrsquos portfolio holdings are traded are closed for a

limited period of timerdquo5 In connection with the current rulemaking process we urge the Commission to

reconsider its position on this point For many years mutual funds have commonly followed the

practice of suspending (or limiting) the issuance of new shares once the fundrsquos investment adviser has

determined that the fund has reached its investment capacity on the basis that additional growth in

fund shares outstanding would be detrimental to existing fund shareholders As actively managed ETFs

mature and grow in size we would expect their investment advisers to seek to respond similarly when

they determine that an ETF has reached its investment capacity While the inability to issue new shares

may cause the ETF to trade at a premium to NAV that strikes us as an appropriate result Rather than

precluding an ETF from suspending the issuance of new shares when doing so is judged to be in

shareholdersrsquo best interest we believe better policy would be to require ETFs that have suspended

share issuance to add supplemental disclosures addressing the enhanced risk of buying shares at a

premium

See Release at page 67

‐5‐

5

Required Website Disclosures We applaud the Commission decision to use the current

rulemaking process to seek to strengthen disclosures of ETF investor trading costs We agree with the

Commissionrsquos view that fund websites are the most appropriate venue for ETFs to communicate current

information about investor trading costs including closing premiumsdiscounts to NAV and bid‐ask

spreads Unlike fund prospectuses annual and semi‐annual reports fact sheets and other fund sales

literature websites can readily be updated on a current daily basis enabling fund sponsors to easily

provide investors with up‐to‐date information about a fundrsquos current and historical trading

performance

We view the inability of ETF investors to readily measure and evaluate their trading costs as a

critical failing of the product structure as it now stands Investors who do not know the true costs of

their trades are prone to making poor investment decisions including trading too much Shedding more

light on ETF trading costs not only supports informed investor decision‐making but also promotes

increased marketplace competition and enhanced efficiency of ETF trading

The Proposed Rule would require each ETF operating in reliance on the Proposed Rule to post to

its website each business day (a) the fundrsquos closing NAV market price and premium or discount for the

prior business day (b) a table showing the number of days the fundrsquos shares closed at a premium or

discount during the most recently completed calendar year and the most recently completed calendar

quarters since that year (or the life of the fund if shorter) (c) a line graph showing the fundrsquos closing

premiums or discounts for the most recently completed calendar year and the most recently completed

calendar quarters since that year (or the life of the fund if shorter) and (d) if the fundrsquos closing

premium or discount exceeds 2 for more than seven consecutive business days a narrative discussion

of the factors that are reasonably believed to have materially contributed to the premium or discount

The proposed amendments to Form N1‐A included in the Proposal would require an ETF to

disclose its median bid‐ask spread for the most recent fiscal year on its website and also to include this

information in its prospectus To meet the proposed Form N1‐A requirements an ETF would also be

required to include on its website an interactive calculator that investors could use to calculate the

dollar cost of applying the fundrsquos median bid‐ask spread for the most recent fiscal year to different

trading amounts and different numbers of trades as input by the calculator user

While we agree with the Commissionrsquos objective to increase investorsrsquo access to information

about the costs to buy and sell ETF shares we regard the specific proposed requirements as woefully

inadequate In our judgment ETFs operating in reliance on the Proposed Rule should be required to

provide daily updated disclosure of current and historical closing premiumsdiscounts and bid‐ask

spreads similar to the conditions of the NextShares exemptive order granted to Eaton Vance‐affiliated

‐6‐

entities in 20146 (Eaton Vance NextShares Order) and included in all subsequent NextShares exemptive

orders

The website for the [NextShares Funds] which will be publicly accessible at no charge

will contain on a per Share basis for each [Fund] the prior Business Dayrsquos NAV

intraday high low average and closing trading prices (expressed as premiumsdiscounts

to NAV) the midpoint of the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Midpointrdquo) (expressed as a premiumdiscount to

NAV) and the spread between the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Spreadrdquo) The website for the [Funds] also will

contain charts showing the frequency distribution and range of values of trading prices

Closing BidAsk Midpoints and Closing BidAsk Spreads over time

Because ETF trading differs from the NAV‐based trading employed by NextShares not all of the

NextShares investor trading cost disclosure requirements are applicable to ETFs Conforming the

NextShares requirements to fit ETFs we recommend that the website of each ETF operating in reliance

on the Proposed Rule be required to include the following investor trading cost information to be

updated daily

a the prior business dayrsquos closing premiumdiscount to NAV

b a table and line graph showing the frequency distribution and range of daily closing premiumsdiscounts for each calendar quarter over the past five years (or the life of the fund if shorter)

c the prior business dayrsquos average minimum and maximum bid‐ask spreads in secondary market trading and

d a table and line graph showing the frequency distribution and range of daily average bid‐ask spreads (expressed as percentages) for each calendar quarter over the past five years (or the life of the fund if shorter)

Since the launch of the first NextShares fund in February 2016 Eaton Vance has provided the

investor trading cost disclosures required by the NextShares orders on a consistent daily basis Meeting

these requirements has not placed undue burden on our administrative staff and we would expect the

same to be true for sponsors of ETFs if the above‐recommended suggestions are adopted as

requirements for ETFs operating under the Proposed Rule Based on our experience with NextShares

we are confident that ETF sponsors could at very low incremental cost provide investors with far more

and far more useful ETF trading cost information than the Proposal currently would require

See httpswwwsecgovrulesic2014ic‐31361pdf (Order) and httpswwwsecgovrulesic2014ic‐31333pdf (Eaton Vance NextShares Notice of Application)

‐7‐

6

holdings the suspension of new share creations and various aspects of the proposed website and

marketing disclosures

IIVs We are of two minds on the proposed elimination of the current requirement for ETFs to

disseminate IIVs throughout each business dayrsquos market trading session On the one hand we

understand that todayrsquos ETF IIVs are often poor indicators of current intraday value as they can reflect

stale prices and lack a uniform calculation methodology On the other hand IIVs provide retail investors

with the best ndash and typically only ndash view they have into an ETFrsquos intraday values which we regard as

critical information for buyers and sellers of ETF shares seeking to accurately measure their trading

costs

As currently calculated and disseminated IIVs leave much to be desired as estimates of intraday

fund values and suitable proxies for measuring ETF investor trading costs For ETFs holding securities

that trade principally outside the US IIVs are routinely stale by several hours and depending on the

cycle of weekly trading and holidays may be out of date by several days To our understanding little

progress has been made in standardizing the calculation or increasing the utility of disseminated IIVs

since the first ETF was introduced in 1993 Because they are usually based on the last sale price IIVs

may be stale at the time of release even for ETFs that hold only domestic securities Because

dissemination is typically limited to intervals of 15 seconds IIVs may quickly become unrepresentative of

current trading during periods of rapid market movement Moreover current IIVs may not always be

based on an ETFrsquos entire portfolio and may not be calculated in the same manner as NAVs Real‐time

dissemination leaves no time or scope for evaluating inputs or checking calculations prior to release

Even when IIV calculations are consistently timely and accurate their utility may be limited by lack of

investor access and little or no availability of historical IIV data for comparative purposes

While acknowledging all the shortcomings of IIVs as they exist today we believe ETF investors

have a critical need for what IIVs seek to provide ndash timely information about intraday fund values that

can be used to assess ETF investor trading costs Rather than abandoning IIVs we believe the

Commission should take advantage of the current rulemaking process to undertake a comprehensive

review of how IIVs are calculated and disseminated with a goal to make them more useful

We believe the Commission should be open to a range of options for how and by whom future

IIVs are calculated and disseminated Without the Commissionrsquos active support for continuing IIVs we

fear that investors will lose access to essential information for evaluating the cost of buying and selling

ETFs In our view the proposed elimination of the requirement for ETFs to disseminate IIVs is a step in

the wrong direction ndash at odds with the Proposalrsquos objective to provide ETF investors with more and

better information about the trading costs they pay

Disclosure of Portfolio Holdings We agree with the proposed requirement for all ETFs operating

in reliance on the Proposed Rule (whether index‐based or actively managed) to disclose in full their

current portfolio holdings on a free public website prior to the beginning of market trading each

business day Like the Commission we view transparency of current holdings as necessary for ETFs to

‐3‐

trade with premiumsdiscounts to NAV and bid‐ask spreads sufficiently narrow to ensure equitable

treatment of buyers and sellers and to warrant treating ETF shares as redeemable securities under the

Investment Company Act

We recommend that ETFs operating in reliance on the Proposed Rule (a) be required to disclose

their daily portfolio holdings using a common downloadable or machine‐readable format specified by

the Commission and (b) be prohibited from imposing any restrictions on the legal access retrieval

distribution use or reuse of the disclosed portfolio holdings information As a technical matter we

question whether the proposed requirement for portfolio holdings information to be presented in the

manner prescribed within Article 12 of Regulation S‐X is appropriate We believe a better alternative

would be to require a common presentation format that closely corresponds to the generic listing

standards for actively managed ETFs adopted by the listing exchanges (Generic Listing Standards)

Different from Article 12 of Regulation S‐X the Generic Listing Standards have the advantage of

requiring ticker symbols CUSIPs or other standard identifiers of portfolio securities ndash which we regard as

essential to the efficient dissemination and use of disclosed ETF portfolio holdings information

In addition to supporting efficient ETF share arbitrage we see a potential role for the

dissemination of daily ETF portfolio holdings information in a standardized highly readable format

(without restrictions on use) in promoting the development of ldquonext generationrdquo IIVs There is strong

evidence that investor trading costs are often economically significant for many ETFs and that most ETF

investors do not currently have adequate information to accurately assess the costs they pay to buy and

sell ETF shares including costs in connection with intraday variations in premiumsdiscounts A market‐

based solution to todayrsquos IIV shortcomings could be to make the information required to calculate

intraday values broadly available in a standardized user‐friendly format and to encourage pricing

services and other potential providers to develop commercial ETF intraday valuation services that would

compete in the market on the basis of timeliness accuracy reliability and price

Relating to the required portfolio holdings disclosures the Release raises the question of

whether actively managed ETFs with less holdings transparency should be permitted under the

Proposed Rule We strongly oppose any consideration of permitting actively managed ETFs that do not

disclose their full holdings on a current daily basis to operate in reliance on the Proposed Rule

As background the attached Exhibits 1 and 2 prepared by Eaton Vance compare the

premiumdiscount experience of actively managed equity ETFs versus equity index ETFs in the same

Morningstar category over the period from the introduction of the first active ETFs in 2008 through the

end of 2017 Exhibit 1 shows the average of the absolute value of the daily closing premiumdiscount

and the average volatility of the daily closing premiumdiscount as measured based on the relationship

between NAV and closing price for each ETF The average of the absolute value of the daily closing

premiumdiscount measures how far on average an ETFrsquos closing price varies from NAV The average

volatility of the daily closing premiumdiscount is the average of the standard deviation of observed

premiumdiscount values for each ETF Exhibit 2 shows the difference between active and index ETFsrsquo

premiumdiscount experience across overlapping Morningstar categories Throughout our study period

‐4‐

actively managed ETFs were required to disclose their full holdings on a current daily basis and most

(but not all) index ETFs also followed this practice

In all years since the introduction of actively managed ETFs as a group they have demonstrated

higher and more variable premiumsdiscounts than comparable index ETFs across most Morningstar

equity categories that included both types of funds We attribute the observed higher and more

variable premiumsdiscounts of active ETFs to less‐efficient share arbitrage which in turn we attribute

to (a) the generally smaller size of actively managed ETFs versus index ETFs in the same category

reflecting greater scale economies in the management of index‐based products and the relative

newness of active ETFs (b) the generally lower trading volumes of active ETFs versus similarly sized

index ETFs since index products are typically more attractive for use as short‐term market exposure

vehicles and (c) the relatively greater ease of arbitraging index ETFs because in addition to trading

directly in the underlying fund holdings a market maker in index ETFs can hedge its ETF positions

intraday by transacting in corresponding index futures and options contracts index swaps similar index

ETFs and other index portfolio instruments without incurring meaningful basis risk On average the

more cumbersome process of hedging active ETF share inventory positions makes active ETFs more

difficult and costly to arbitrage

Given the higher and more variable premiumsdiscounts observed to date for fully transparent

active managed ETFs and the inherently greater difficulty of arbitraging less‐transparent funds we see

little reason to expect less‐transparent active ETFs to demonstrate secondary market trading

performance that meets the statutory standard for treatment as redeemable securities or the

expectations of ETF investors Accordingly we believe any future consideration by the Commission of

less‐transparent active ETF proposals should be through the established exemptive process

Suspension of Share Creations According to the Release the Commission believes that an ETF

may suspend the issuance of creation units ldquoonly for a limited time and only due to extraordinary

circumstances such as when markets on which the ETFrsquos portfolio holdings are traded are closed for a

limited period of timerdquo5 In connection with the current rulemaking process we urge the Commission to

reconsider its position on this point For many years mutual funds have commonly followed the

practice of suspending (or limiting) the issuance of new shares once the fundrsquos investment adviser has

determined that the fund has reached its investment capacity on the basis that additional growth in

fund shares outstanding would be detrimental to existing fund shareholders As actively managed ETFs

mature and grow in size we would expect their investment advisers to seek to respond similarly when

they determine that an ETF has reached its investment capacity While the inability to issue new shares

may cause the ETF to trade at a premium to NAV that strikes us as an appropriate result Rather than

precluding an ETF from suspending the issuance of new shares when doing so is judged to be in

shareholdersrsquo best interest we believe better policy would be to require ETFs that have suspended

share issuance to add supplemental disclosures addressing the enhanced risk of buying shares at a

premium

See Release at page 67

‐5‐

5

Required Website Disclosures We applaud the Commission decision to use the current

rulemaking process to seek to strengthen disclosures of ETF investor trading costs We agree with the

Commissionrsquos view that fund websites are the most appropriate venue for ETFs to communicate current

information about investor trading costs including closing premiumsdiscounts to NAV and bid‐ask

spreads Unlike fund prospectuses annual and semi‐annual reports fact sheets and other fund sales

literature websites can readily be updated on a current daily basis enabling fund sponsors to easily

provide investors with up‐to‐date information about a fundrsquos current and historical trading

performance

We view the inability of ETF investors to readily measure and evaluate their trading costs as a

critical failing of the product structure as it now stands Investors who do not know the true costs of

their trades are prone to making poor investment decisions including trading too much Shedding more

light on ETF trading costs not only supports informed investor decision‐making but also promotes

increased marketplace competition and enhanced efficiency of ETF trading

The Proposed Rule would require each ETF operating in reliance on the Proposed Rule to post to

its website each business day (a) the fundrsquos closing NAV market price and premium or discount for the

prior business day (b) a table showing the number of days the fundrsquos shares closed at a premium or

discount during the most recently completed calendar year and the most recently completed calendar

quarters since that year (or the life of the fund if shorter) (c) a line graph showing the fundrsquos closing

premiums or discounts for the most recently completed calendar year and the most recently completed

calendar quarters since that year (or the life of the fund if shorter) and (d) if the fundrsquos closing

premium or discount exceeds 2 for more than seven consecutive business days a narrative discussion

of the factors that are reasonably believed to have materially contributed to the premium or discount

The proposed amendments to Form N1‐A included in the Proposal would require an ETF to

disclose its median bid‐ask spread for the most recent fiscal year on its website and also to include this

information in its prospectus To meet the proposed Form N1‐A requirements an ETF would also be

required to include on its website an interactive calculator that investors could use to calculate the

dollar cost of applying the fundrsquos median bid‐ask spread for the most recent fiscal year to different

trading amounts and different numbers of trades as input by the calculator user

While we agree with the Commissionrsquos objective to increase investorsrsquo access to information

about the costs to buy and sell ETF shares we regard the specific proposed requirements as woefully

inadequate In our judgment ETFs operating in reliance on the Proposed Rule should be required to

provide daily updated disclosure of current and historical closing premiumsdiscounts and bid‐ask

spreads similar to the conditions of the NextShares exemptive order granted to Eaton Vance‐affiliated

‐6‐

entities in 20146 (Eaton Vance NextShares Order) and included in all subsequent NextShares exemptive

orders

The website for the [NextShares Funds] which will be publicly accessible at no charge

will contain on a per Share basis for each [Fund] the prior Business Dayrsquos NAV

intraday high low average and closing trading prices (expressed as premiumsdiscounts

to NAV) the midpoint of the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Midpointrdquo) (expressed as a premiumdiscount to

NAV) and the spread between the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Spreadrdquo) The website for the [Funds] also will

contain charts showing the frequency distribution and range of values of trading prices

Closing BidAsk Midpoints and Closing BidAsk Spreads over time

Because ETF trading differs from the NAV‐based trading employed by NextShares not all of the

NextShares investor trading cost disclosure requirements are applicable to ETFs Conforming the

NextShares requirements to fit ETFs we recommend that the website of each ETF operating in reliance

on the Proposed Rule be required to include the following investor trading cost information to be

updated daily

a the prior business dayrsquos closing premiumdiscount to NAV

b a table and line graph showing the frequency distribution and range of daily closing premiumsdiscounts for each calendar quarter over the past five years (or the life of the fund if shorter)

c the prior business dayrsquos average minimum and maximum bid‐ask spreads in secondary market trading and

d a table and line graph showing the frequency distribution and range of daily average bid‐ask spreads (expressed as percentages) for each calendar quarter over the past five years (or the life of the fund if shorter)

Since the launch of the first NextShares fund in February 2016 Eaton Vance has provided the

investor trading cost disclosures required by the NextShares orders on a consistent daily basis Meeting

these requirements has not placed undue burden on our administrative staff and we would expect the

same to be true for sponsors of ETFs if the above‐recommended suggestions are adopted as

requirements for ETFs operating under the Proposed Rule Based on our experience with NextShares

we are confident that ETF sponsors could at very low incremental cost provide investors with far more

and far more useful ETF trading cost information than the Proposal currently would require

See httpswwwsecgovrulesic2014ic‐31361pdf (Order) and httpswwwsecgovrulesic2014ic‐31333pdf (Eaton Vance NextShares Notice of Application)

‐7‐

6

trade with premiumsdiscounts to NAV and bid‐ask spreads sufficiently narrow to ensure equitable

treatment of buyers and sellers and to warrant treating ETF shares as redeemable securities under the

Investment Company Act

We recommend that ETFs operating in reliance on the Proposed Rule (a) be required to disclose

their daily portfolio holdings using a common downloadable or machine‐readable format specified by

the Commission and (b) be prohibited from imposing any restrictions on the legal access retrieval

distribution use or reuse of the disclosed portfolio holdings information As a technical matter we

question whether the proposed requirement for portfolio holdings information to be presented in the

manner prescribed within Article 12 of Regulation S‐X is appropriate We believe a better alternative

would be to require a common presentation format that closely corresponds to the generic listing

standards for actively managed ETFs adopted by the listing exchanges (Generic Listing Standards)

Different from Article 12 of Regulation S‐X the Generic Listing Standards have the advantage of

requiring ticker symbols CUSIPs or other standard identifiers of portfolio securities ndash which we regard as

essential to the efficient dissemination and use of disclosed ETF portfolio holdings information

In addition to supporting efficient ETF share arbitrage we see a potential role for the

dissemination of daily ETF portfolio holdings information in a standardized highly readable format

(without restrictions on use) in promoting the development of ldquonext generationrdquo IIVs There is strong

evidence that investor trading costs are often economically significant for many ETFs and that most ETF

investors do not currently have adequate information to accurately assess the costs they pay to buy and

sell ETF shares including costs in connection with intraday variations in premiumsdiscounts A market‐

based solution to todayrsquos IIV shortcomings could be to make the information required to calculate

intraday values broadly available in a standardized user‐friendly format and to encourage pricing

services and other potential providers to develop commercial ETF intraday valuation services that would

compete in the market on the basis of timeliness accuracy reliability and price

Relating to the required portfolio holdings disclosures the Release raises the question of

whether actively managed ETFs with less holdings transparency should be permitted under the

Proposed Rule We strongly oppose any consideration of permitting actively managed ETFs that do not

disclose their full holdings on a current daily basis to operate in reliance on the Proposed Rule

As background the attached Exhibits 1 and 2 prepared by Eaton Vance compare the

premiumdiscount experience of actively managed equity ETFs versus equity index ETFs in the same

Morningstar category over the period from the introduction of the first active ETFs in 2008 through the

end of 2017 Exhibit 1 shows the average of the absolute value of the daily closing premiumdiscount

and the average volatility of the daily closing premiumdiscount as measured based on the relationship

between NAV and closing price for each ETF The average of the absolute value of the daily closing

premiumdiscount measures how far on average an ETFrsquos closing price varies from NAV The average

volatility of the daily closing premiumdiscount is the average of the standard deviation of observed

premiumdiscount values for each ETF Exhibit 2 shows the difference between active and index ETFsrsquo

premiumdiscount experience across overlapping Morningstar categories Throughout our study period

‐4‐

actively managed ETFs were required to disclose their full holdings on a current daily basis and most

(but not all) index ETFs also followed this practice

In all years since the introduction of actively managed ETFs as a group they have demonstrated

higher and more variable premiumsdiscounts than comparable index ETFs across most Morningstar

equity categories that included both types of funds We attribute the observed higher and more

variable premiumsdiscounts of active ETFs to less‐efficient share arbitrage which in turn we attribute

to (a) the generally smaller size of actively managed ETFs versus index ETFs in the same category

reflecting greater scale economies in the management of index‐based products and the relative

newness of active ETFs (b) the generally lower trading volumes of active ETFs versus similarly sized

index ETFs since index products are typically more attractive for use as short‐term market exposure

vehicles and (c) the relatively greater ease of arbitraging index ETFs because in addition to trading

directly in the underlying fund holdings a market maker in index ETFs can hedge its ETF positions

intraday by transacting in corresponding index futures and options contracts index swaps similar index

ETFs and other index portfolio instruments without incurring meaningful basis risk On average the

more cumbersome process of hedging active ETF share inventory positions makes active ETFs more

difficult and costly to arbitrage

Given the higher and more variable premiumsdiscounts observed to date for fully transparent

active managed ETFs and the inherently greater difficulty of arbitraging less‐transparent funds we see

little reason to expect less‐transparent active ETFs to demonstrate secondary market trading

performance that meets the statutory standard for treatment as redeemable securities or the

expectations of ETF investors Accordingly we believe any future consideration by the Commission of

less‐transparent active ETF proposals should be through the established exemptive process

Suspension of Share Creations According to the Release the Commission believes that an ETF

may suspend the issuance of creation units ldquoonly for a limited time and only due to extraordinary

circumstances such as when markets on which the ETFrsquos portfolio holdings are traded are closed for a

limited period of timerdquo5 In connection with the current rulemaking process we urge the Commission to

reconsider its position on this point For many years mutual funds have commonly followed the

practice of suspending (or limiting) the issuance of new shares once the fundrsquos investment adviser has

determined that the fund has reached its investment capacity on the basis that additional growth in

fund shares outstanding would be detrimental to existing fund shareholders As actively managed ETFs

mature and grow in size we would expect their investment advisers to seek to respond similarly when

they determine that an ETF has reached its investment capacity While the inability to issue new shares

may cause the ETF to trade at a premium to NAV that strikes us as an appropriate result Rather than

precluding an ETF from suspending the issuance of new shares when doing so is judged to be in

shareholdersrsquo best interest we believe better policy would be to require ETFs that have suspended

share issuance to add supplemental disclosures addressing the enhanced risk of buying shares at a

premium

See Release at page 67

‐5‐

5

Required Website Disclosures We applaud the Commission decision to use the current

rulemaking process to seek to strengthen disclosures of ETF investor trading costs We agree with the

Commissionrsquos view that fund websites are the most appropriate venue for ETFs to communicate current

information about investor trading costs including closing premiumsdiscounts to NAV and bid‐ask

spreads Unlike fund prospectuses annual and semi‐annual reports fact sheets and other fund sales

literature websites can readily be updated on a current daily basis enabling fund sponsors to easily

provide investors with up‐to‐date information about a fundrsquos current and historical trading

performance

We view the inability of ETF investors to readily measure and evaluate their trading costs as a

critical failing of the product structure as it now stands Investors who do not know the true costs of

their trades are prone to making poor investment decisions including trading too much Shedding more

light on ETF trading costs not only supports informed investor decision‐making but also promotes

increased marketplace competition and enhanced efficiency of ETF trading

The Proposed Rule would require each ETF operating in reliance on the Proposed Rule to post to

its website each business day (a) the fundrsquos closing NAV market price and premium or discount for the

prior business day (b) a table showing the number of days the fundrsquos shares closed at a premium or

discount during the most recently completed calendar year and the most recently completed calendar

quarters since that year (or the life of the fund if shorter) (c) a line graph showing the fundrsquos closing

premiums or discounts for the most recently completed calendar year and the most recently completed

calendar quarters since that year (or the life of the fund if shorter) and (d) if the fundrsquos closing

premium or discount exceeds 2 for more than seven consecutive business days a narrative discussion

of the factors that are reasonably believed to have materially contributed to the premium or discount

The proposed amendments to Form N1‐A included in the Proposal would require an ETF to

disclose its median bid‐ask spread for the most recent fiscal year on its website and also to include this

information in its prospectus To meet the proposed Form N1‐A requirements an ETF would also be

required to include on its website an interactive calculator that investors could use to calculate the

dollar cost of applying the fundrsquos median bid‐ask spread for the most recent fiscal year to different

trading amounts and different numbers of trades as input by the calculator user

While we agree with the Commissionrsquos objective to increase investorsrsquo access to information

about the costs to buy and sell ETF shares we regard the specific proposed requirements as woefully

inadequate In our judgment ETFs operating in reliance on the Proposed Rule should be required to

provide daily updated disclosure of current and historical closing premiumsdiscounts and bid‐ask

spreads similar to the conditions of the NextShares exemptive order granted to Eaton Vance‐affiliated

‐6‐

entities in 20146 (Eaton Vance NextShares Order) and included in all subsequent NextShares exemptive

orders

The website for the [NextShares Funds] which will be publicly accessible at no charge

will contain on a per Share basis for each [Fund] the prior Business Dayrsquos NAV

intraday high low average and closing trading prices (expressed as premiumsdiscounts

to NAV) the midpoint of the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Midpointrdquo) (expressed as a premiumdiscount to

NAV) and the spread between the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Spreadrdquo) The website for the [Funds] also will

contain charts showing the frequency distribution and range of values of trading prices

Closing BidAsk Midpoints and Closing BidAsk Spreads over time

Because ETF trading differs from the NAV‐based trading employed by NextShares not all of the

NextShares investor trading cost disclosure requirements are applicable to ETFs Conforming the

NextShares requirements to fit ETFs we recommend that the website of each ETF operating in reliance

on the Proposed Rule be required to include the following investor trading cost information to be

updated daily

a the prior business dayrsquos closing premiumdiscount to NAV

b a table and line graph showing the frequency distribution and range of daily closing premiumsdiscounts for each calendar quarter over the past five years (or the life of the fund if shorter)

c the prior business dayrsquos average minimum and maximum bid‐ask spreads in secondary market trading and

d a table and line graph showing the frequency distribution and range of daily average bid‐ask spreads (expressed as percentages) for each calendar quarter over the past five years (or the life of the fund if shorter)

Since the launch of the first NextShares fund in February 2016 Eaton Vance has provided the

investor trading cost disclosures required by the NextShares orders on a consistent daily basis Meeting

these requirements has not placed undue burden on our administrative staff and we would expect the

same to be true for sponsors of ETFs if the above‐recommended suggestions are adopted as

requirements for ETFs operating under the Proposed Rule Based on our experience with NextShares

we are confident that ETF sponsors could at very low incremental cost provide investors with far more

and far more useful ETF trading cost information than the Proposal currently would require

See httpswwwsecgovrulesic2014ic‐31361pdf (Order) and httpswwwsecgovrulesic2014ic‐31333pdf (Eaton Vance NextShares Notice of Application)

‐7‐

6

actively managed ETFs were required to disclose their full holdings on a current daily basis and most

(but not all) index ETFs also followed this practice

In all years since the introduction of actively managed ETFs as a group they have demonstrated

higher and more variable premiumsdiscounts than comparable index ETFs across most Morningstar

equity categories that included both types of funds We attribute the observed higher and more

variable premiumsdiscounts of active ETFs to less‐efficient share arbitrage which in turn we attribute

to (a) the generally smaller size of actively managed ETFs versus index ETFs in the same category

reflecting greater scale economies in the management of index‐based products and the relative

newness of active ETFs (b) the generally lower trading volumes of active ETFs versus similarly sized

index ETFs since index products are typically more attractive for use as short‐term market exposure

vehicles and (c) the relatively greater ease of arbitraging index ETFs because in addition to trading

directly in the underlying fund holdings a market maker in index ETFs can hedge its ETF positions

intraday by transacting in corresponding index futures and options contracts index swaps similar index

ETFs and other index portfolio instruments without incurring meaningful basis risk On average the

more cumbersome process of hedging active ETF share inventory positions makes active ETFs more

difficult and costly to arbitrage

Given the higher and more variable premiumsdiscounts observed to date for fully transparent

active managed ETFs and the inherently greater difficulty of arbitraging less‐transparent funds we see

little reason to expect less‐transparent active ETFs to demonstrate secondary market trading

performance that meets the statutory standard for treatment as redeemable securities or the

expectations of ETF investors Accordingly we believe any future consideration by the Commission of

less‐transparent active ETF proposals should be through the established exemptive process

Suspension of Share Creations According to the Release the Commission believes that an ETF

may suspend the issuance of creation units ldquoonly for a limited time and only due to extraordinary

circumstances such as when markets on which the ETFrsquos portfolio holdings are traded are closed for a

limited period of timerdquo5 In connection with the current rulemaking process we urge the Commission to

reconsider its position on this point For many years mutual funds have commonly followed the

practice of suspending (or limiting) the issuance of new shares once the fundrsquos investment adviser has

determined that the fund has reached its investment capacity on the basis that additional growth in

fund shares outstanding would be detrimental to existing fund shareholders As actively managed ETFs

mature and grow in size we would expect their investment advisers to seek to respond similarly when

they determine that an ETF has reached its investment capacity While the inability to issue new shares

may cause the ETF to trade at a premium to NAV that strikes us as an appropriate result Rather than

precluding an ETF from suspending the issuance of new shares when doing so is judged to be in

shareholdersrsquo best interest we believe better policy would be to require ETFs that have suspended

share issuance to add supplemental disclosures addressing the enhanced risk of buying shares at a

premium

See Release at page 67

‐5‐

5

Required Website Disclosures We applaud the Commission decision to use the current

rulemaking process to seek to strengthen disclosures of ETF investor trading costs We agree with the

Commissionrsquos view that fund websites are the most appropriate venue for ETFs to communicate current

information about investor trading costs including closing premiumsdiscounts to NAV and bid‐ask

spreads Unlike fund prospectuses annual and semi‐annual reports fact sheets and other fund sales

literature websites can readily be updated on a current daily basis enabling fund sponsors to easily

provide investors with up‐to‐date information about a fundrsquos current and historical trading

performance

We view the inability of ETF investors to readily measure and evaluate their trading costs as a

critical failing of the product structure as it now stands Investors who do not know the true costs of

their trades are prone to making poor investment decisions including trading too much Shedding more

light on ETF trading costs not only supports informed investor decision‐making but also promotes

increased marketplace competition and enhanced efficiency of ETF trading

The Proposed Rule would require each ETF operating in reliance on the Proposed Rule to post to

its website each business day (a) the fundrsquos closing NAV market price and premium or discount for the

prior business day (b) a table showing the number of days the fundrsquos shares closed at a premium or

discount during the most recently completed calendar year and the most recently completed calendar

quarters since that year (or the life of the fund if shorter) (c) a line graph showing the fundrsquos closing

premiums or discounts for the most recently completed calendar year and the most recently completed

calendar quarters since that year (or the life of the fund if shorter) and (d) if the fundrsquos closing

premium or discount exceeds 2 for more than seven consecutive business days a narrative discussion

of the factors that are reasonably believed to have materially contributed to the premium or discount

The proposed amendments to Form N1‐A included in the Proposal would require an ETF to

disclose its median bid‐ask spread for the most recent fiscal year on its website and also to include this

information in its prospectus To meet the proposed Form N1‐A requirements an ETF would also be

required to include on its website an interactive calculator that investors could use to calculate the

dollar cost of applying the fundrsquos median bid‐ask spread for the most recent fiscal year to different

trading amounts and different numbers of trades as input by the calculator user

While we agree with the Commissionrsquos objective to increase investorsrsquo access to information

about the costs to buy and sell ETF shares we regard the specific proposed requirements as woefully

inadequate In our judgment ETFs operating in reliance on the Proposed Rule should be required to

provide daily updated disclosure of current and historical closing premiumsdiscounts and bid‐ask

spreads similar to the conditions of the NextShares exemptive order granted to Eaton Vance‐affiliated

‐6‐

entities in 20146 (Eaton Vance NextShares Order) and included in all subsequent NextShares exemptive

orders

The website for the [NextShares Funds] which will be publicly accessible at no charge

will contain on a per Share basis for each [Fund] the prior Business Dayrsquos NAV

intraday high low average and closing trading prices (expressed as premiumsdiscounts

to NAV) the midpoint of the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Midpointrdquo) (expressed as a premiumdiscount to

NAV) and the spread between the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Spreadrdquo) The website for the [Funds] also will

contain charts showing the frequency distribution and range of values of trading prices

Closing BidAsk Midpoints and Closing BidAsk Spreads over time

Because ETF trading differs from the NAV‐based trading employed by NextShares not all of the

NextShares investor trading cost disclosure requirements are applicable to ETFs Conforming the

NextShares requirements to fit ETFs we recommend that the website of each ETF operating in reliance

on the Proposed Rule be required to include the following investor trading cost information to be

updated daily

a the prior business dayrsquos closing premiumdiscount to NAV

b a table and line graph showing the frequency distribution and range of daily closing premiumsdiscounts for each calendar quarter over the past five years (or the life of the fund if shorter)

c the prior business dayrsquos average minimum and maximum bid‐ask spreads in secondary market trading and

d a table and line graph showing the frequency distribution and range of daily average bid‐ask spreads (expressed as percentages) for each calendar quarter over the past five years (or the life of the fund if shorter)

Since the launch of the first NextShares fund in February 2016 Eaton Vance has provided the

investor trading cost disclosures required by the NextShares orders on a consistent daily basis Meeting

these requirements has not placed undue burden on our administrative staff and we would expect the

same to be true for sponsors of ETFs if the above‐recommended suggestions are adopted as

requirements for ETFs operating under the Proposed Rule Based on our experience with NextShares

we are confident that ETF sponsors could at very low incremental cost provide investors with far more

and far more useful ETF trading cost information than the Proposal currently would require

See httpswwwsecgovrulesic2014ic‐31361pdf (Order) and httpswwwsecgovrulesic2014ic‐31333pdf (Eaton Vance NextShares Notice of Application)

‐7‐

6

Required Website Disclosures We applaud the Commission decision to use the current

rulemaking process to seek to strengthen disclosures of ETF investor trading costs We agree with the

Commissionrsquos view that fund websites are the most appropriate venue for ETFs to communicate current

information about investor trading costs including closing premiumsdiscounts to NAV and bid‐ask

spreads Unlike fund prospectuses annual and semi‐annual reports fact sheets and other fund sales

literature websites can readily be updated on a current daily basis enabling fund sponsors to easily

provide investors with up‐to‐date information about a fundrsquos current and historical trading

performance

We view the inability of ETF investors to readily measure and evaluate their trading costs as a

critical failing of the product structure as it now stands Investors who do not know the true costs of

their trades are prone to making poor investment decisions including trading too much Shedding more

light on ETF trading costs not only supports informed investor decision‐making but also promotes

increased marketplace competition and enhanced efficiency of ETF trading

The Proposed Rule would require each ETF operating in reliance on the Proposed Rule to post to

its website each business day (a) the fundrsquos closing NAV market price and premium or discount for the

prior business day (b) a table showing the number of days the fundrsquos shares closed at a premium or

discount during the most recently completed calendar year and the most recently completed calendar

quarters since that year (or the life of the fund if shorter) (c) a line graph showing the fundrsquos closing

premiums or discounts for the most recently completed calendar year and the most recently completed

calendar quarters since that year (or the life of the fund if shorter) and (d) if the fundrsquos closing

premium or discount exceeds 2 for more than seven consecutive business days a narrative discussion

of the factors that are reasonably believed to have materially contributed to the premium or discount

The proposed amendments to Form N1‐A included in the Proposal would require an ETF to

disclose its median bid‐ask spread for the most recent fiscal year on its website and also to include this

information in its prospectus To meet the proposed Form N1‐A requirements an ETF would also be

required to include on its website an interactive calculator that investors could use to calculate the

dollar cost of applying the fundrsquos median bid‐ask spread for the most recent fiscal year to different

trading amounts and different numbers of trades as input by the calculator user

While we agree with the Commissionrsquos objective to increase investorsrsquo access to information

about the costs to buy and sell ETF shares we regard the specific proposed requirements as woefully

inadequate In our judgment ETFs operating in reliance on the Proposed Rule should be required to

provide daily updated disclosure of current and historical closing premiumsdiscounts and bid‐ask

spreads similar to the conditions of the NextShares exemptive order granted to Eaton Vance‐affiliated

‐6‐

entities in 20146 (Eaton Vance NextShares Order) and included in all subsequent NextShares exemptive

orders

The website for the [NextShares Funds] which will be publicly accessible at no charge

will contain on a per Share basis for each [Fund] the prior Business Dayrsquos NAV

intraday high low average and closing trading prices (expressed as premiumsdiscounts

to NAV) the midpoint of the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Midpointrdquo) (expressed as a premiumdiscount to

NAV) and the spread between the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Spreadrdquo) The website for the [Funds] also will

contain charts showing the frequency distribution and range of values of trading prices

Closing BidAsk Midpoints and Closing BidAsk Spreads over time

Because ETF trading differs from the NAV‐based trading employed by NextShares not all of the

NextShares investor trading cost disclosure requirements are applicable to ETFs Conforming the

NextShares requirements to fit ETFs we recommend that the website of each ETF operating in reliance

on the Proposed Rule be required to include the following investor trading cost information to be

updated daily

a the prior business dayrsquos closing premiumdiscount to NAV

b a table and line graph showing the frequency distribution and range of daily closing premiumsdiscounts for each calendar quarter over the past five years (or the life of the fund if shorter)

c the prior business dayrsquos average minimum and maximum bid‐ask spreads in secondary market trading and

d a table and line graph showing the frequency distribution and range of daily average bid‐ask spreads (expressed as percentages) for each calendar quarter over the past five years (or the life of the fund if shorter)

Since the launch of the first NextShares fund in February 2016 Eaton Vance has provided the

investor trading cost disclosures required by the NextShares orders on a consistent daily basis Meeting

these requirements has not placed undue burden on our administrative staff and we would expect the

same to be true for sponsors of ETFs if the above‐recommended suggestions are adopted as

requirements for ETFs operating under the Proposed Rule Based on our experience with NextShares

we are confident that ETF sponsors could at very low incremental cost provide investors with far more

and far more useful ETF trading cost information than the Proposal currently would require

See httpswwwsecgovrulesic2014ic‐31361pdf (Order) and httpswwwsecgovrulesic2014ic‐31333pdf (Eaton Vance NextShares Notice of Application)

‐7‐

6

entities in 20146 (Eaton Vance NextShares Order) and included in all subsequent NextShares exemptive

orders

The website for the [NextShares Funds] which will be publicly accessible at no charge

will contain on a per Share basis for each [Fund] the prior Business Dayrsquos NAV

intraday high low average and closing trading prices (expressed as premiumsdiscounts

to NAV) the midpoint of the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Midpointrdquo) (expressed as a premiumdiscount to

NAV) and the spread between the highest bid and lowest offer prices as of the close of

Exchange trading (ldquoClosing BidAsk Spreadrdquo) The website for the [Funds] also will

contain charts showing the frequency distribution and range of values of trading prices

Closing BidAsk Midpoints and Closing BidAsk Spreads over time

Because ETF trading differs from the NAV‐based trading employed by NextShares not all of the

NextShares investor trading cost disclosure requirements are applicable to ETFs Conforming the

NextShares requirements to fit ETFs we recommend that the website of each ETF operating in reliance

on the Proposed Rule be required to include the following investor trading cost information to be

updated daily

a the prior business dayrsquos closing premiumdiscount to NAV

b a table and line graph showing the frequency distribution and range of daily closing premiumsdiscounts for each calendar quarter over the past five years (or the life of the fund if shorter)

c the prior business dayrsquos average minimum and maximum bid‐ask spreads in secondary market trading and

d a table and line graph showing the frequency distribution and range of daily average bid‐ask spreads (expressed as percentages) for each calendar quarter over the past five years (or the life of the fund if shorter)

Since the launch of the first NextShares fund in February 2016 Eaton Vance has provided the

investor trading cost disclosures required by the NextShares orders on a consistent daily basis Meeting

these requirements has not placed undue burden on our administrative staff and we would expect the

same to be true for sponsors of ETFs if the above‐recommended suggestions are adopted as

requirements for ETFs operating under the Proposed Rule Based on our experience with NextShares

we are confident that ETF sponsors could at very low incremental cost provide investors with far more

and far more useful ETF trading cost information than the Proposal currently would require

See httpswwwsecgovrulesic2014ic‐31361pdf (Order) and httpswwwsecgovrulesic2014ic‐31333pdf (Eaton Vance NextShares Notice of Application)

‐7‐

6

Required Sales Literature Disclosures We strongly disagree with the Commissionrsquos conclusion

that investorsrsquo understanding of ETFs has now advanced to the point where issuers should no longer be

required to state in sales literature that ETFs do not purchase or redeem individual shares and to explain

that investors may purchase or sell individual ETF shares in market transactions through a broker In our

experience a large percentage of investors still do not understand the fundamental distinctions

between ETFs and mutual funds relating to buying and selling Rather than eliminating the current

disclosure requirements for ETF sales literature we believe each ETF operating in reliance on the

Proposed Rule should be required to include in all its sales literature a statement similar to the following

and including a cross‐reference to the website containing the above‐noted information

This fund is an ETF whose individual shares may be purchased and sold only in market

transactions through a broker To buy shares you may be required to pay more than

the sharesrsquo current value in selling shares you may receive less than current value As a

result your returns may not equal the fundrsquos own returns over your holding period

In our judgment requiring ETFs operating in reliance on the Proposed Rule to include a

statement in their sales literature similar to the above would provide investors with critical information

for distinguishing ETFs from mutual funds that issue and redeem individual shares at NAV

Proposed Form N1‐A Amendments

The proposed amendments to Form N1‐A would require an ETF (a) to disclose its median bid‐

ask spread for the most recent fiscal year in its prospectus and on its website (b) to include on its

website an interactive calculator that investors could use to calculate the dollar cost of applying the

fundrsquos median bid‐ask spread for the most recent fiscal year to different trading amounts and numbers

of trades and (c) to include in its prospectus a standardized set of questions and answers describing the

costs to buy and sell fund shares

Investor Trading Cost Disclosures In our view the proposed Form N1‐A amendments place

undue emphasis on an ETFrsquos bid‐ask spreads as the primary determinant and appropriate measure of

ETF investor trading costs An ETF derives its value from the value of the fundrsquos underlying holdings

Accordingly we believe the cost to buy or sell an ETFrsquos shares is appropriately measured by the

difference between an investorrsquos all‐in purchase or sale price and the value per share of the fundrsquos net

assets at the time the trade price is determined Over an investorrsquos full holding period his or her trading

costs sum to the difference between the return of the ETF itself over the period and the investorrsquos

realized return In addition to any commissions that apply the cost to buy an ETF includes the premium

to current value at which shares are acquired and the cost to sell an ETF includes the discount from

current value at which shares are sold7 While commissions bid‐ask spreads and market impact may

Costs to trade an ETF can be positive or negative To realize profits an ETF market maker that creates and redeems shares in connection with its market making activity must on average incur trading costs that are sufficiently negative to offset its costs to create and redeem Negative trading costs for ETF market makers translate into positive average trading costs for the investors with whom they transact If ETF investors did not on average buy shares at premiums to current value and

‐8‐

7

each contribute to the costs of buying and selling an ETF ETF trading costs are not appropriately

measured as the sum of fund commissions bid‐ask spread costs and market impact costs In fact

variations in ETF premiums and discounts often contribute far more to the trading costs paid by ETF

investors than commissions bid‐ask spreads and market impact combined

A simple example An investor pays $1010 (all‐in) per share to buy an ETF when its net assets

are worth $1000 and later sells the ETF for $1000 (all‐in) when the fundrsquos net assets are worth

$1010 Over the holding period the ETF itself has returned +1 (+$010 divided by $1000)

and the investor has realized net returns of approximately ‐1 (‐$010 divided by $1010) How

much did the investor pay in trading costs We believe the only meaningful answer is 2 which

is the shortfall in the investorrsquos return versus the fundrsquos return over the holding period

For an excellent analysis of the significant and often overlooked contribution of variations in

premiumsdiscounts to ETF trading costs see ldquoETF Transaction Costs Are Often Higher than Investors

Realizerdquo by Jim Angel Todd Broms and Gary Gastineau published in 2016 in The Journal of Portfolio

Management8 A second scholarly analysis of ETF trading costs we recommend is ldquoInefficiencies in the

Pricing of Exchange‐Traded Fundsrdquo by Antti Petajisto published in Financial Analysts Journal in 2017

(Petajisto Study)9 The Petajisto Study concluded that ldquothe difference between [an ETFs] share price and

the value of the underlying portfolio is often economically significant indicating that the

unsophisticated investor may face an unexpected additional cost when trading ETFsrdquo The wealth

transfer from less sophisticated individual investors to more sophisticated institutional investors in

connection with ETF trading costs was estimated in the Petajisto Study to be almost $20 billion a year

more than three times the annual operating costs of all ETFs combined as reflected in their expense

ratios

Investors seeking to understand and measure the costs they incur to buy and sell ETF shares

face many obstacles including the fact that leading sponsors of ETFs have not consistently

acknowledged the contribution of variations in premiumsdiscounts to ETF investor trading costs The

current rulemaking process provides an excellent opportunity for the Commission to establish disclosure

requirements to help remedy the current shortfalls in investor information and understanding of the

costs they pay to buy and sell ETF shares In our judgment implementing the proposed amendments to

Form N1‐A would do the opposite ndash advancing the false narrative that ETF bid‐ask spread costs are the

primary determinant and best measure of investor trading costs As a better alternative we

recommend replacing the proposed question and answer section of ETF prospectuses and the proposed

interactive bid‐ask spread calculator with the new requirements for website trading information we

sell shares at discounts to current value ETF arbitrageurs as a whole would lose money causing the arbitrage process to breakdown as they withdraw from that role

8 Angel JJ Broms TJ and Gastineau GL 2016 ldquoETF Transaction Costs Are Often Higher than Investors Realizerdquo Journal of Portfolio Management 42(3) 55‐65 Reprints available at dpalmeiriiijournalscom

9 Petajisto Anti 2017 ldquoInefficiencies in the Pricing of Exchange‐Traded Fundsrdquo Financial Analyst Journal 73(1) 24‐54 Available at httpswwwcfainstituteorglearningproductspublicationsfajPagesfajv73n17aspx

‐9‐

each contribute to the costs of buying and selling an ETF ETF trading costs are not appropriately

measured as the sum of fund commissions bid‐ask spread costs and market impact costs In fact

variations in ETF premiums and discounts often contribute far more to the trading costs paid by ETF

investors than commissions bid‐ask spreads and market impact combined

A simple example An investor pays $1010 (all‐in) per share to buy an ETF when its net assets

are worth $1000 and later sells the ETF for $1000 (all‐in) when the fundrsquos net assets are worth

$1010 Over the holding period the ETF itself has returned +1 (+$010 divided by $1000)

and the investor has realized net returns of approximately ‐1 (‐$010 divided by $1010) How

much did the investor pay in trading costs We believe the only meaningful answer is 2 which

is the shortfall in the investorrsquos return versus the fundrsquos return over the holding period

For an excellent analysis of the significant and often overlooked contribution of variations in

premiumsdiscounts to ETF trading costs see ldquoETF Transaction Costs Are Often Higher than Investors

Realizerdquo by Jim Angel Todd Broms and Gary Gastineau published in 2016 in The Journal of Portfolio

Management8 A second scholarly analysis of ETF trading costs we recommend is ldquoInefficiencies in the

Pricing of Exchange‐Traded Fundsrdquo by Antti Petajisto published in Financial Analysts Journal in 2017

(Petajisto Study)9 The Petajisto Study concluded that ldquothe difference between [an ETFs] share price and

the value of the underlying portfolio is often economically significant indicating that the

unsophisticated investor may face an unexpected additional cost when trading ETFsrdquo The wealth

transfer from less sophisticated individual investors to more sophisticated institutional investors in

connection with ETF trading costs was estimated in the Petajisto Study to be almost $20 billion a year

more than three times the annual operating costs of all ETFs combined as reflected in their expense

ratios

Investors seeking to understand and measure the costs they incur to buy and sell ETF shares

face many obstacles including the fact that leading sponsors of ETFs have not consistently

acknowledged the contribution of variations in premiumsdiscounts to ETF investor trading costs The

current rulemaking process provides an excellent opportunity for the Commission to establish disclosure

requirements to help remedy the current shortfalls in investor information and understanding of the

costs they pay to buy and sell ETF shares In our judgment implementing the proposed amendments to

Form N1‐A would do the opposite ndash advancing the false narrative that ETF bid‐ask spread costs are the

primary determinant and best measure of investor trading costs As a better alternative we

recommend replacing the proposed question and answer section of ETF prospectuses and the proposed

interactive bid‐ask spread calculator with the new requirements for website trading information we

sell shares at discounts to current value ETF arbitrageurs as a whole would lose money causing the arbitrage process to breakdown as they withdraw from that role

8 Angel JJ Broms TJ and Gastineau GL 2016 ldquoETF Transaction Costs Are Often Higher than Investors Realizerdquo Journal of Portfolio Management 42(3) 55‐65 Reprints available at dpalmeiriiijournalscom

9 Petajisto Anti 2017 ldquoInefficiencies in the Pricing of Exchange‐Traded Fundsrdquo Financial Analyst Journal 73(1) 24‐54 Available at httpswwwcfainstituteorglearningproductspublicationsfajPagesfajv73n17aspx

‐9‐

recommend above and enhancing the required ETF prospectus disclosures of investor trading costs and

risks

In particular we recommend that each ETF be required to include among the principal risks of

investing set forth in its summary and statutory prospectus that the prices at which fund shares trade in

the secondary market may be above at or below the corresponding value of the fundrsquos net assets will

fluctuate in relation to such value based on the supply and demand in the market for shares and other

factors and may vary significantly from the corresponding fund value during periods of market volatility

The principal risk disclosure should further state that returns earned by a fund shareholder will be

reduced if the shareholder sells shares at a greater discount or narrower premium to the corresponding

fund value than he or she acquired shares

Disclosure of Front‐Running Risks Although not addressed in the Release we recommend that

each ETF be required to include among the principal risks of investing set forth in its summary and

statutory prospectus that public disclosure of current fund holdings may interfere with achieving the

fundrsquos investment objective by increasing fund trading costs through the actions of other market

participants that learn to anticipate future fund trades andor by constraining the fundrsquos trading and

investment activity to seek to circumvent predatory trading by other market participants While these

risks are well understood by ETF sponsors and have been acknowledged by the Commission10 many ETF

investors are likely unaware of their potential impact on fund returns

Disclosure of Fund Valuation Practices As part of the current rulemaking process we believe

the Commission should consider adopting requirements for ETFs to better disclose how they calculate

daily NAVs We are aware of two significant differences in valuation practices among ETF sponsors (a)

whether the ETF normally values portfolio holdings that trade on markets that are closed at the time the

ETFrsquos NAV is determined (generally 400 PM eastern time) based on local market closing prices (Local

Close Pricing) or whether the ETF routinely adjusts valuations from local market closing prices to reflect

subsequent market movements (Fair Value Pricing) and (b) whether the ETFrsquos fixed income holdings are

generally valued at the bid side of the market (Bid Pricing) or at the midpoint of the bid‐ask spread (Mid

Pricing)

Understanding whether an ETF employs Local Close Pricing or Fair Value Pricing for securities

positions trading outside US market hours and Bid Pricing or Mid Pricing for fixed income holdings is

critical to evaluating the fundrsquos disclosed premiums and discounts to NAV Without information about

how an ETF values its assets for NAV purposes the utility of its premiumdiscount disclosures is

significantly diminished

10 See Shareholder Reports and Quarterly Portfolio Disclosure of Registered Management Investment Companies Securities Exchange Act Release No 49333 (Feb 27 2004) at p16

‐10‐

Effects of the Proposal on Prior Exemptive Orders

As described in the Release11 the Commission has authority under the Investment Company Act

to amend or rescind previously granted exemptive orders ldquowhen necessary or appropriate to the

exercise of the powers conferred elsewhere in the [Investment Company] Actrdquo As part of the Proposal

the Commission is proposing to amend and rescind the exemptive relief of ETFs that would be permitted

to rely on the Proposed Rule The proposed rescissions would be limited to relief related to the

formation and operation of an ETF and certain master‐feeder relief as described below Under the

Proposal exemptive relief previously granted to UIT ETFs leveraged ETFs share class ETF and

NextShares would not be affected

Custom Baskets One of the Proposalrsquos principal objectives is to level the playing field among

ETF complexes relating to the use of custom baskets The exemptive relief granted to ETF sponsors has

evolved considerably over time in terms of allowable use of custom baskets with orders issued within

the past ten years far more restrictive than earlier orders We agree with the Commissionrsquos view that

the competitive imbalance among ETF sponsors relating to use of custom baskets should be resolved

through the current rulemaking process as proposed

Relating to our sponsorship of NextShares we note that the Eaton Vance NextShares Order and

all subsequent NextShares orders require NextShares funds to use the same basket for all creations and

redemptions effected on the same day except in narrowly limited circumstances corresponding to the

use of custom baskets permitted under (the most restrictive) recently granted ETF exemptive orders12

For the same competitive reasons that the Commission proposes to level the playing field among ETFs

we respectfully request and recommend that the Commission amend the terms and conditions of the

Eaton Vance NextShares Exemptive Order13 relating to custom baskets to correspond to the treatment

of custom baskets under the Proposed Rule

Master‐Feeder Funds Under the Proposal the Commission would rescind the master‐feeder

relief granted to ETFs subject to Rule 6c‐11 that do not rely on the relief as of the date of the Proposal

(June 28 2018) While existing master‐feeder arrangements involving ETF feeder funds would be

grandfathered the formation of new ETF feeder funds would be prevented by amending the relevant

11 See Release at page 143 12 See footnote 16 of Eaton Vance NextShares Amended Application at page 8 ldquoA [NextShares Fund]rsquos Basket could vary if the

required policies and procedures of the [Fund] allowed such differences by permitting an Authorized Participant to deposit cash in lieu of some or all of the Basket Instruments solely because (a) such Basket Instruments in the case of a purchase of a Creation Unit are not available in sufficient quantity (b) such Basket Instruments are not eligible for trading by the Authorized Participant or the investor on whose behalf the Authorized Participant is acting or (c) a holder of Shares of a [Fund] investing in foreign instruments would be subject to unfavorable income tax treatment if the holder received redemption proceeds in kind A ldquocustom orderrdquo is any purchase or redemption of Shares made in whole or in part on a cash basis in reliance on clause (a) or (b) A [Fund] may also determine upon receiving a purchase or redemption order from an Authorized Participant to require the purchase or redemption as applicable to be made entirely in cashrdquo

13 Under their terms all other NextShares orders granted to date would automatically adjust to reflect any amendments to the terms and conditions of the Eaton Vance NextShares Order See for example the Ivy NextShares order at httpswwwsecgovrulesic2015ic‐31816pdf

‐11‐

Effects of the Proposal on Prior Exemptive Orders

As described in the Release11 the Commission has authority under the Investment Company Act

to amend or rescind previously granted exemptive orders ldquowhen necessary or appropriate to the

exercise of the powers conferred elsewhere in the [Investment Company] Actrdquo As part of the Proposal

the Commission is proposing to amend and rescind the exemptive relief of ETFs that would be permitted

to rely on the Proposed Rule The proposed rescissions would be limited to relief related to the

formation and operation of an ETF and certain master‐feeder relief as described below Under the

Proposal exemptive relief previously granted to UIT ETFs leveraged ETFs share class ETF and

NextShares would not be affected

Custom Baskets One of the Proposalrsquos principal objectives is to level the playing field among

ETF complexes relating to the use of custom baskets The exemptive relief granted to ETF sponsors has

evolved considerably over time in terms of allowable use of custom baskets with orders issued within

the past ten years far more restrictive than earlier orders We agree with the Commissionrsquos view that

the competitive imbalance among ETF sponsors relating to use of custom baskets should be resolved

through the current rulemaking process as proposed

Relating to our sponsorship of NextShares we note that the Eaton Vance NextShares Order and

all subsequent NextShares orders require NextShares funds to use the same basket for all creations and

redemptions effected on the same day except in narrowly limited circumstances corresponding to the

use of custom baskets permitted under (the most restrictive) recently granted ETF exemptive orders12

For the same competitive reasons that the Commission proposes to level the playing field among ETFs

we respectfully request and recommend that the Commission amend the terms and conditions of the

Eaton Vance NextShares Exemptive Order13 relating to custom baskets to correspond to the treatment

of custom baskets under the Proposed Rule

Master‐Feeder Funds Under the Proposal the Commission would rescind the master‐feeder

relief granted to ETFs subject to Rule 6c‐11 that do not rely on the relief as of the date of the Proposal

(June 28 2018) While existing master‐feeder arrangements involving ETF feeder funds would be

grandfathered the formation of new ETF feeder funds would be prevented by amending the relevant

11 See Release at page 143 12 See footnote 16 of Eaton Vance NextShares Amended Application at page 8 ldquoA [NextShares Fund]rsquos Basket could vary if the

required policies and procedures of the [Fund] allowed such differences by permitting an Authorized Participant to deposit cash in lieu of some or all of the Basket Instruments solely because (a) such Basket Instruments in the case of a purchase of a Creation Unit are not available in sufficient quantity (b) such Basket Instruments are not eligible for trading by the Authorized Participant or the investor on whose behalf the Authorized Participant is acting or (c) a holder of Shares of a [Fund] investing in foreign instruments would be subject to unfavorable income tax treatment if the holder received redemption proceeds in kind A ldquocustom orderrdquo is any purchase or redemption of Shares made in whole or in part on a cash basis in reliance on clause (a) or (b) A [Fund] may also determine upon receiving a purchase or redemption order from an Authorized Participant to require the purchase or redemption as applicable to be made entirely in cashrdquo

13 Under their terms all other NextShares orders granted to date would automatically adjust to reflect any amendments to the terms and conditions of the Eaton Vance NextShares Order See for example the Ivy NextShares order at httpswwwsecgovrulesic2015ic‐31816pdf

‐11‐

exemptive orders The proposed rescission of master‐feeder relief would not apply to NextShares

which are not ETFs

The Release cites two reasons14 for this proposed change (a) only one ETF complex has

established master‐feeder arrangements involving ETF feeder funds and each such arrangement

involves only a single feeder fund and (b) the Commission is concerned about potential inequities that

could arise if an ETF feeder fund transacts with a master fund in kind and non‐ETF feeder funds

transaction in cash but all feeder fund shareholders bear the costs of the cash transactions

While Eaton Vance does not offer or contemplate offering any ETFs that utilize a master‐feeder

arrangement we do sponsor and manage several NextShares funds that co‐invest alongside a similar

mutual fund in a corresponding master fund In our experience the Commissionrsquos concern about

inequities among feeder fund shareholders can readily be addressed by each master fund imposing

transaction fees that vary according to the type of consideration (cash or in kind) paid or received by the

transacting feeder fund which is our practice and consistent with the Eaton Vance NextShares Order15

At least in the context of NextShares we see a continuing role for master‐feeder structures and would

oppose any proposed action to curtail their availability and use

Application of Regulation FD to ETFs

In discussing the risks of selective disclosure of ETF portfolio holdings the Release raises the

question of whether Regulation FD should be amended to apply to ETFs We support extending

Regulation FD to cover ETFs and urge the Commission to take this action in connection with the

Proposal

Promulgated by the Commission in 2000 Regulation FD seeks to ensure that material non‐

public information released to the marketplace is made available to all market participants at the same

time Regulation FD provides that ldquowhenever an issuer or any person acting on its behalf discloses any

material nonpublic information regarding that issuer or its securities to any person described in

paragraph (b)(1) of this section the issuer shall make public disclosure of that informationrdquo The

referenced paragraph (b)(1) includes any person outside the issuer who is or associated with a broker

or dealer Regulation FD provides carve‐outs to permit disclosures of material non‐public information

for certain purposes under a duty of confidentiality

By its terms Regulation FD does not apply to registered investment companies that are not

closed‐end funds However the adopting release to the 2004 N1‐A Amendments makes clear the

Commissionrsquos intent to subject open‐end funds to similar standards for the dissemination and use of

material non‐public fund information as apply to other issuers of securities Moreover while

Regulation FD does not apply to ETFs directly listing exchanges require ETFs to disclose material non‐

public information in a Regulation FD‐compliant manner Amending Regulation FD so that it applies

14 See Release at page 141 15 See footnote 19 of the Eaton Vance NextShares Notice of Application httpswwwsecgovrulesic2014ic‐31333pdf

‐12‐

directly to ETFs would clarify and reinforce ETFsrsquo obligations with respect to material non‐public

information

On behalf of Eaton Vance I thank the SEC commissioners and staff for their consideration of

these comments and recommendations

Sincerely

Thomas E Faust Jr Chairman and Chief Executive Officer Eaton Vance Corp

‐13‐

5 2 3 4 5 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-1 Measures of ETF Investor Trading Costs 2017

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

37 386 18 125

1384 1374105 706 669269

9 30867 5 19466

021 021 014 002 014 002 018 027 013 002 013 002

028 027 017 003 016 003 023 035 015 003 014 002

Large Growth 5 36 120 158836 1 4449 024 012 015 002 016 002 038 016 018 003 020 003 Large Value 6 70 116 201055 1 1524 027 016 017 002 016 002 037 021 022 003 021 003 Mid-Cap Blend 4 34 212 110527 1 752 016 018 015 003 015 003 019 021 018 003 018 003 Mid-Cap Growth 24 26182 99 014 003 004 021 004 004 Mid-Cap Value 2 23 199 49433 1 186 012 013 011 003 012 003 013 019 013 004 013 003 Small Blend 42 106069 4024 032 004 004 044 005 004 Small Growth 2 12 31 21442 0 152 042 012 033 004 035 004 067 016 050 006 054 006 Small Value 20 31292 217 012 004 004 016 005 005

US EQUITY SECTORS Commodities Industrial Metals

12 308 2 2641 367022

290 28 12715

4 018 019 011 006 015 007 022 020 020

020 021 011 006 014 008 031 028 028

Communications 5 2361 35 010 007 008 012 010 010 Consumer Cyclical 23 20107 777 015 003 004 021 004 005 Consumer Defensive 17 15360 602 028 003 003 030 004 004 Energy Limited Partnership 2 8 2226 11390 19 136 015 016 010 012 014 012 014 020 010 016 013 016 Equity Energy 26 28691 1732 020 004 004 025 005 005 Equity Precious Metals 12 14989 1721 034 024 023 048 032 031 Financial 1 29 65 52155 1 2282 022 009 022 005 022 005 013 012 013 006 013 006 Health 1 33 26 48681 0 1327 020 018 020 004 020 004 027 023 027 005 027 005 Industrials 23 25008 784 013 003 003 019 005 004 Miscellaneous Sector 2 23 9 5803 0 50 019 029 023 020 017 027 023 030 032 020 019 025 Natural Resources 32 18983 440 027 012 007 033 013 009 Real Estate 1 21 26 54328 0 1001 019 015 019 003 019 003 027 020 027 004 027 004 Technology 4 42 275 56185 7 1139 015 017 016 003 016 004 014 000 014 000 014 000 Utilities 1 12 15 12691 0 686 024 017 024 003 024 003 038 021 038 004 038 004

INTERNATIONAL EQUITY China Region

14 473 40

947 621707 14435

7 10115 915 052 044 050 026 042 030 054 034 035

046 040 038 020 029 031 063 043 045

Diversified Emerging Mkts 1 72 47 146419 0 3118 050 052 050 033 050 035 028 049 028 034 028 038 Diversified PacificAsia 1 5 22 5388 0 28 056 035 056 019 056 018 043 045 043 019 043 018 Europe Stock 1 36 76 52472 1 779 047 045 047 017 047 017 029 046 029 019 029 020 Foreign Large Blend 5 60 330 237501 3 2172 040 045 042 020 042 020 034 000 027 000 026 000 Foreign Large Growth 1 11 82 4361 1 24 027 040 027 026 027 027 019 040 019 024 019 023 Foreign Large Value 30 20156 90 036 026 026 030 025 025 Foreign SmallMid Blend 8 15967 80 043 029 029 044 024 025 Foreign SmallMid Value 8 2139 7 048 035 036 041 028 029 Global Real Estate 1 11 1 12013 0 68 088 024 088 020 088 020 078 028 078 018 078 019 India Equity 9 8609 165 047 042 041 055 052 052 Japan Stock 25 29592 580 043 038 037 053 050 049 Latin America Stock 8 7609 713 040 039 042 050 055 059 Miscellaneous Region 1 94 10 32418 0 1052 127 042 127 030 127 033 144 049 144 040 144 044 PacificAsia ex-Japan Stk 12 8099 109 044 035 035 046 040 041 World Stock 3 44 381 24528 1 213 047 036 060 013 047 012 044 032 051 012 037 012

Exhibit 1-2 Measures of ETF Investor Trading Costs 2016

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

29 332 11 94

1201 1012433 318 490019

6 34845 2 23996

023 019 015 003 015 002 024 023 016 002 016 002

032 026 017 004 017 003 037 029 017 003 017 003

Large Growth 3 35 103 122047 0 3594 030 020 021 002 017 002 040 027 024 003 019 003 Large Value 4 63 57 148962 1 1723 028 013 019 003 019 003 037 019 024 004 024 003 Mid-Cap Blend 5 32 414 83226 2 826 016 014 013 003 012 003 018 020 014 004 013 004 Mid-Cap Growth 1 23 38 21828 0 118 009 018 009 004 009 004 011 027 011 005 011 005 Mid-Cap Value 2 23 232 38563 1 220 012 014 012 003 012 003 012 021 012 005 012 004 Small Blend 1 30 14 70586 0 3928 025 038 025 004 025 004 032 043 032 005 032 005 Small Growth 2 12 25 15724 0 176 031 012 039 004 036 004 054 016 067 005 062 005 Small Value 20 21479 265 015 004 004 021 005 005

US EQUITY SECTORS Commodities Industrial Metals

9 323 2 1404 288778

172 9 14396

3 036 024 014 007 021 010 031 022 022

053 031 016 009 024 013 054 031 031

Communications 6 2584 39 015 008 007 021 011 009 Consumer Cyclical 26 19031 929 020 004 004 027 005 006 Consumer Defensive 17 17417 757 022 004 004 031 005 005 Energy Limited Partnership 1 9 82 8979 2 124 068 024 068 016 068 015 086 034 086 021 086 020 Equity Energy 1 26 1232 26605 7 2124 010 025 010 005 010 005 008 034 008 007 008 007 Equity Precious Metals 12 12877 2466 052 035 033 067 047 045 Financial 32 31168 1818 018 005 005 025 007 006 Health 1 35 7 39732 0 1888 055 018 055 004 055 005 084 026 084 006 084 007 Industrials 23 13835 791 017 004 004 024 006 006 Miscellaneous Sector 1 24 6 3516 0 16 030 035 030 021 030 027 052 040 052 024 052 033 Natural Resources 33 12672 507 031 015 008 041 019 014 Real Estate 1 21 29 49626 0 1159 026 018 026 004 026 004 036 023 036 005 036 008 Technology 3 44 38 37232 0 902 037 022 037 004 037 004 058 028 058 005 058 006 Utilities 1 13 11 13333 0 874 023 023 023 004 023 003 035 030 035 005 035 005

INTERNATIONAL EQUITY China Region

14 477 1 36

159 442940 1 12303

2 10835 0 1071

059 060 062 041 064 052 100 080 100 069 100 075

062 072 062 052 058 068 136 093 136 092 136 102

Diversified Emerging Mkts 1 71 4 92001 0 3355 062 069 062 051 062 058 043 080 043 063 043 073 Diversified PacificAsia 1 6 18 3768 0 32 062 058 062 027 062 025 063 071 063 036 063 033 Europe Stock 1 42 19 46655 0 845 058 056 058 027 058 028 050 075 050 039 050 040 Foreign Large Blend 4 46 47 159291 1 2237 068 046 083 030 081 033 060 050 073 037 059 042 Foreign Large Growth 1 10 15 3252 0 25 044 045 044 038 044 037 069 053 069 048 069 047 Foreign Large Value 1 37 35 12422 0 81 051 043 051 039 051 039 057 049 057 048 057 048 Foreign SmallMid Blend 9 10325 64 052 039 039 057 047 048 Foreign SmallMid Value 1 9 10 1541 0 6 055 057 055 044 055 044 055 065 055 054 055 054 Global Real Estate 1 14 1 11424 0 68 023 059 023 027 023 028 036 054 036 035 036 036 India Equity 9 6536 166 062 057 058 078 075 076 Japan Stock 31 27218 791 089 081 080 120 111 111 Latin America Stock 13 4473 653 073 055 059 093 074 080 Miscellaneous Region 1 97 1 28042 0 1157 066 060 066 049 066 053 071 073 071 065 071 070 PacificAsia ex-Japan Stk 12 5565 86 061 059 060 072 077 079 World Stock 1 35 7 18126 0 196 039 046 039 017 039 017 054 045 054 021 054 022

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-3 Measures of ETF Investor Trading Costs 2015

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

27 289 6 89

1222 902925 135 428901

9 39057 1 27662

029 016 016 003 016 003 034 021 028 003 025 002

044 024 023 005 023 004 065 031 055 004 042 003

Large Growth 5 27 112 116940 2 3991 033 014 024 003 014 003 048 020 034 006 018 004 Large Value 5 56 91 125450 1 1846 031 014 021 003 026 004 045 020 032 005 037 005 Mid-Cap Blend 5 25 444 77539 2 797 024 010 011 004 012 003 030 014 014 007 015 005 Mid-Cap Growth 1 16 12 22571 0 145 032 011 032 004 032 005 042 016 042 005 042 006 Mid-Cap Value 3 20 379 33606 2 170 013 012 011 003 012 003 017 018 014 004 015 004 Small Blend 2 28 48 63843 1 4083 029 023 029 004 032 004 039 034 040 005 045 005 Small Growth 11 16384 188 011 005 004 016 008 006 Small Value 17 17691 174 014 005 005 020 006 006

US EQUITY SECTORS Commodities Industrial Metals

8 287 3 1154 284349

176 11 12193

3 030 021 011 006 011 007 055 024 025

043 028 014 009 014 010 072 039 039

Communications 7 2177 24 015 010 009 020 013 012 Consumer Cyclical 19 22396 1018 013 004 004 018 006 006 Consumer Defensive 12 15687 491 013 004 003 017 005 004 Energy Limited Partnership 1 8 15 8934 0 116 048 023 048 013 048 013 063 034 063 039 063 039 Equity Energy 1 24 1050 24010 10 2243 009 019 009 005 009 004 010 025 010 007 010 010 Equity Precious Metals 14 7688 1112 055 028 028 067 035 034 Financial 32 33402 1250 018 005 005 025 008 008 Health 1 28 8 50211 0 2070 037 010 037 005 037 005 054 016 054 007 054 008 Industrials 20 13658 701 014 004 003 018 005 004 Miscellaneous Sector 1 23 8 4474 0 30 030 036 030 025 030 032 045 044 045 031 045 039 Natural Resources 30 12906 462 029 015 011 036 019 015 Real Estate 1 19 51 41564 0 1198 027 017 027 004 027 004 042 022 042 005 042 005 Technology 2 36 19 37138 0 844 034 017 034 005 033 004 050 021 049 006 049 006 Utilities 1 12 3 9929 0 632 022 017 022 004 022 003 029 024 029 005 029 004

INTERNATIONAL EQUITY China Region

16 452 1 37

682 453166 8 18321

4 10848 0 1336

040 062 023 043 029 054 080 091 080 076 080 082

048 074 027 054 036 070 131 123 131 101 131 110

Diversified Emerging Mkts 68 90331 2989 073 048 056 084 059 070 Diversified PacificAsia 6 3600 38 068 024 022 083 030 027 Europe Stock 38 57453 1109 049 033 033 054 044 044 Foreign Large Blend 2 46 21 139266 0 2084 066 049 069 032 065 036 076 049 082 039 074 044 Foreign Large Growth 1 6 17 2772 0 22 051 039 051 040 051 041 067 047 067 050 067 049 Foreign Large Value 2 25 85 11697 0 83 049 046 047 041 048 041 056 056 050 051 054 051 Foreign SmallMid Blend 9 8773 62 058 045 046 061 048 048 Foreign SmallMid Value 1 8 12 1435 0 8 069 055 069 050 069 050 048 067 048 057 048 058 Global Real Estate 1 15 2 11502 0 66 038 060 038 035 038 034 048 051 048 041 048 040 India Equity 9 7556 206 072 067 066 093 087 089 Japan Stock 27 37667 816 074 073 072 098 097 096 Latin America Stock 14 3382 520 073 062 069 092 082 093 Miscellaneous Region 99 34338 1217 061 048 055 075 064 073 PacificAsia ex-Japan Stk 14 7117 112 064 061 064 074 080 082 World Stock 8 31 537 17955 3 180 022 045 015 020 015 020 027 050 018 023 019 024

Exhibit 1-4 Measures of ETF Investor Trading Costs 2014

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

22 239 4 55

821 774265 68 368608

12 34958 4 22916

027 011 014 003 018 003 025 012 027 002 023 002

040 014 019 004 025 003 037 017 038 003 035 003

Large Growth 4 26 36 102359 1 3878 045 008 036 003 039 003 076 010 057 003 064 003 Large Value 4 49 69 107422 1 1581 026 009 017 003 021 003 040 012 024 004 032 003 Mid-Cap Blend 5 25 301 64967 4 859 023 010 012 004 016 003 030 013 015 004 017 004 Mid-Cap Growth 1 16 8 15453 0 87 043 012 043 004 043 004 069 017 069 005 069 005 Mid-Cap Value 3 18 326 30827 3 150 010 009 009 003 010 004 012 012 011 004 012 004 Small Blend 1 24 13 55147 0 5110 023 014 023 004 023 004 030 020 030 005 030 005 Small Growth 11 13821 221 011 005 005 016 006 006 Small Value 15 15661 158 010 005 005 014 006 006

US EQUITY SECTORS Commodities Industrial Metals

7 286 3 795 251880

302 9 10480

5 029 023 013 006 016 007 059 019 024

040 027 012 008 019 009 064 025 030

Communications 8 2071 22 022 009 010 029 012 013 Consumer Cyclical 19 13946 909 015 004 004 020 006 005 Consumer Defensive 13 11999 386 021 004 003 025 005 004 Energy Limited Partnership 1 8 6 9302 74 030 015 030 008 008 034 019 034 012 012 Equity Energy 1 23 722 21758 6 2167 012 018 012 004 012 003 010 020 010 006 010 004 Equity Precious Metals 14 10004 1180 051 029 029 063 039 040 Financial 34 31400 1086 019 005 004 025 006 006 Health 1 26 3 33541 0 1213 033 012 033 004 033 004 047 016 047 006 047 005 Industrials 21 16338 707 015 004 003 020 005 004 Miscellaneous Sector 1 25 14 4977 3 48 024 037 024 024 024 032 035 041 035 028 035 038 Natural Resources 31 18412 476 032 011 006 035 014 009 Real Estate 1 17 38 36378 0 1028 017 014 017 004 017 004 027 017 027 005 027 005 Technology 2 31 12 32212 0 603 041 018 043 004 042 004 063 023 065 006 064 006 Utilities 13 9240 577 024 004 003 031 005 004

INTERNATIONAL EQUITY China Region

14 363 1 33

569 389932 3 14329

9 9722 0 1000

033 054 018 037 022 044 057 057 057 050 057 054

039 064 022 047 027 058 079 072 079 070 079 075

Diversified Emerging Mkts 60 102815 3283 052 040 045 061 052 059 Diversified PacificAsia 4 2904 30 039 019 020 049 024 026 Europe Stock 20 37564 675 041 025 025 049 031 032 Foreign Large Blend 1 26 18 104664 0 1437 042 038 042 028 042 032 049 037 049 032 049 039 Foreign Large Growth 1 6 13 2393 0 12 042 035 042 032 042 032 053 042 053 043 053 042 Foreign Large Value 2 19 38 11151 1 68 061 041 044 038 055 039 064 042 041 042 056 042 Foreign SmallMid Blend 7 7034 43 051 041 041 051 043 044 Foreign SmallMid Value 1 7 8 1316 0 7 060 051 060 048 060 047 042 052 042 052 042 051 Global Real Estate 11 9157 48 035 034 034 040 039 038 India Equity 9 4109 143 082 071 069 095 085 084 Japan Stock 19 26870 658 068 071 070 098 100 100 Latin America Stock 15 5952 978 050 038 041 060 049 053 Miscellaneous Region 93 37484 1131 061 042 046 074 056 067 PacificAsia ex-Japan Stk 14 6784 82 096 046 047 127 061 064 World Stock 8 20 490 15407 7 126 017 030 014 019 014 019 023 034 018 021 019 021

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-5 Measures of ETF Investor Trading Costs 2013

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

11 228 4 52

254 602855 57 283095

5 30466 1 21345

030 011 019 003 020 003 026 013 027 003 026 002

043 015 026 004 026 004 036 017 038 004 036 003

Large Growth 2 24 12 79539 0 2590 059 008 052 003 060 003 086 011 084 004 087 004 Large Value 2 46 22 84819 0 1441 027 010 023 004 025 003 049 013 046 004 047 004 Mid-Cap Blend 1 27 42 50116 1 756 016 012 016 004 016 004 018 017 018 005 018 006 Mid-Cap Growth 15 11764 65 012 004 004 017 005 005 Mid-Cap Value 1 15 118 24542 2 133 012 009 012 004 012 004 013 011 013 005 013 005 Small Blend 1 23 3 45089 0 3853 025 014 025 005 025 005 033 019 033 006 033 006 Small Growth 11 11220 155 012 005 005 016 006 006 Small Value 15 12672 129 012 005 005 015 006 006

US EQUITY SECTORS Commodities Industrial Metals

3 294 3 389 193811

301 4 8170

4 021 028 017 007 017 006 102 024 025

025 032 011 009 013 007 107 031 033

Communications 9 1761 23 034 011 010 039 014 012 Consumer Cyclical 19 13857 930 018 005 004 022 007 006 Consumer Defensive 14 9930 372 026 005 003 031 006 004 Energy Limited Partnership 7 6638 57 019 010 010 019 014 014 Equity Energy 1 25 348 17187 3 1375 016 022 016 005 016 004 009 025 009 006 009 005 Equity Precious Metals 13 9222 901 060 023 014 073 031 020 Financial 37 23390 1069 025 005 004 030 006 005 Health 25 20261 588 015 005 004 017 006 005 Industrials 21 9798 522 020 005 004 023 006 005 Miscellaneous Sector 1 27 13 3594 0 33 027 045 027 025 027 036 039 047 039 027 039 041 Natural Resources 33 17259 469 038 014 007 040 015 008 Real Estate 1 16 28 30178 0 1003 020 014 020 005 020 005 028 018 028 006 028 007 Technology 31 21882 392 023 005 005 027 006 007 Utilities 14 8552 431 028 004 004 033 005 004

INTERNATIONAL EQUITY China Region

6 303 1 28

56 328958 2 15130

1 8997 0 897

034 063 034 045 031 052 045 073 045 059 045 061

050 070 049 056 045 066 065 084 065 075 065 078

Diversified Emerging Mkts 55 113931 3537 070 048 052 075 061 069 Diversified PacificAsia 3 2308 25 040 020 020 048 023 023 Europe Stock 11 16565 335 049 027 028 043 034 035 Foreign Large Blend 1 18 16 77427 0 1304 042 046 042 033 042 038 052 041 052 036 052 044 Foreign Large Growth 1 3 8 1944 0 10 043 045 043 041 043 043 065 047 065 046 065 044 Foreign Large Value 19 7770 50 052 045 046 044 047 046 Foreign SmallMid Blend 7 4883 32 061 052 052 051 048 050 Foreign SmallMid Value 6 860 6 071 063 072 066 059 074 Global Real Estate 11 7520 53 045 044 044 050 050 049 India Equity 9 2195 92 085 078 077 113 105 105 Japan Stock 11 19728 725 091 091 090 111 113 112 Latin America Stock 16 8492 749 048 038 041 055 050 055 Miscellaneous Region 79 32234 990 063 047 048 075 063 065 PacificAsia ex-Japan Stk 13 7314 92 079 052 054 103 070 072 World Stock 3 14 30 10656 1 100 025 045 027 022 025 023 039 047 042 023 037 024

Exhibit 1-6 Measures of ETF Investor Trading Costs 2012

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 237 4 50

57 434426 37 199782

1 30277 1 20543

059 018 052 004 051 003 032 016 035 003 028 003

064 025 056 005 053 004 037 021 040 004 030 004

Large Growth 2 32 9 66776 0 3060 141 016 146 003 139 003 131 022 131 004 131 004 Large Value 1 46 3 59881 0 1165 035 017 035 004 035 003 050 022 050 005 050 004 Mid-Cap Blend 1 28 8 33654 0 786 031 016 031 004 031 005 050 023 050 006 050 006 Mid-Cap Growth 14 8978 67 020 004 004 033 005 005 Mid-Cap Value 13 18493 132 013 004 004 018 006 005 Small Blend 19 29985 1029 017 006 006 024 007 007 Small Growth 16 7974 3371 027 006 005 047 008 007 Small Value 19 8903 124 025 006 006 035 008 008

US EQUITY SECTORS Commodities Industrial Metals

3 294 3 100 146358

347 2 7199

3 029 030 026 008 026 006 070 028 028

035 035 026 010 024 008 162 039 040

Communications 9 1669 14 037 014 014 044 017 016 Consumer Cyclical 19 8276 777 020 006 006 024 007 007 Consumer Defensive 15 8318 228 028 005 004 035 006 005 Energy Limited Partnership 3 3532 34 021 010 010 020 011 012 Equity Energy 1 27 70 15405 2 1381 025 028 025 006 025 005 020 033 020 008 020 006 Equity Precious Metals 13 11920 746 059 017 011 067 022 014 Financial 35 12379 1331 027 006 007 037 008 009 Health 25 12513 323 016 006 005 021 008 007 Industrials 24 5497 742 029 006 004 033 007 005 Miscellaneous Sector 1 25 7 2929 0 20 037 043 037 027 037 032 049 037 049 027 049 035 Natural Resources 35 14239 537 037 014 006 043 016 008 Real Estate 1 17 23 23279 0 359 025 015 025 005 025 005 037 020 037 006 037 007 Technology 31 17304 399 026 005 010 030 007 011 Utilities 13 8752 305 030 005 005 036 007 006

INTERNATIONAL EQUITY China Region

5 278 25

40 250891 12117

0 8093 752 040 066 045 041 042 055 095 066 075

052 071 057 049 053 065 103 085 090

Diversified Emerging Mkts 50 101336 1420 074 040 041 073 049 047 Diversified PacificAsia 3 1594 12 041 012 013 041 015 015 Europe Stock 10 5746 115 056 033 029 054 037 031 Foreign Large Blend 1 18 14 56331 0 402 068 066 068 035 068 035 076 054 076 038 076 037 Foreign Large Growth 1 4 7 1356 0 840 034 039 034 039 034 039 045 045 045 047 045 047 Foreign Large Value 16 4784 35 065 046 046 075 050 052 Foreign SmallMid Blend 7 3336 12 057 045 046 061 046 045 Foreign SmallMid Value 5 586 2 063 051 051 075 059 060 Global Real Estate 10 4903 48 047 045 048 052 049 055 India Equity 9 1758 106 072 064 066 085 078 081 Japan Stock 10 6012 56 068 056 056 086 074 074 Latin America Stock 17 11385 542 050 029 039 061 040 049 Miscellaneous Region 69 26881 1308 063 047 056 071 060 067 PacificAsia ex-Japan Stk 12 6191 2410 068 057 071 083 073 085 World Stock 3 13 19 6575 0 31 033 054 034 029 032 026 047 050 047 030 045 026

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-7 Measures of ETF Investor Trading Costs 2011

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 227 2 51

64 364536 19 166662

1 40351 0 28288

058 025 053 004 054 004 063 023 070 004 073 003

091 040 082 007 084 007 092 036 100 006 104 007

Large Growth 3 30 34 52494 1 4002 065 026 045 004 044 003 108 039 076 005 075 004 Large Value 1 39 3 44248 0 1353 051 017 051 004 051 004 075 025 075 006 075 005 Mid-Cap Blend 1 28 5 32903 0 786 045 025 045 005 045 005 066 043 066 008 066 007 Mid-Cap Growth 1 14 3 8923 0 100 049 028 049 005 049 005 081 043 081 007 081 007 Mid-Cap Value 13 14109 126 015 005 005 024 007 006 Small Blend 19 28441 5329 025 007 007 040 010 009 Small Growth 15 8214 216 048 008 008 078 012 011 Small Value 18 8542 152 037 008 009 057 012 012

US EQUITY SECTORS Commodities Industrial Metals

1 297 2

20 135323 540

0 10757 6 030 033 030 012 030 009 046 044 044

059 047 059 017 059 015 063 061 061

Communications 11 1771 21 037 019 016 056 028 024 Consumer Cyclical 20 5994 1080 031 012 014 052 026 038 Consumer Defensive 15 6341 296 034 007 005 045 010 007 Energy Limited Partnership 1 1187 13 010 010 010 012 012 012 Equity Energy 26 20568 2812 027 007 004 035 010 006 Equity Precious Metals 9 11160 846 047 021 015 059 028 020 Financial 35 11342 1572 037 008 006 054 012 009 Health 27 11121 505 022 009 006 032 014 009 Industrials 25 5840 802 033 007 004 048 010 006 Miscellaneous Sector 24 4600 48 042 036 041 051 043 051 Natural Resources 35 14921 1006 043 020 010 057 026 012 Real Estate 1 17 20 16580 0 714 030 026 030 007 030 007 059 042 059 010 059 009 Technology 36 16200 753 027 010 029 045 016 053 Utilities 14 7159 281 033 006 005 044 008 006

INTERNATIONAL EQUITY China Region

3 231 23

31 244592 13779

1 10827 1049

058 084 062 063 071 075 134 097 101

080 101 084 082 096 098 151 137 145

Diversified Emerging Mkts 34 89996 3989 077 056 067 088 076 093 Diversified PacificAsia 2 1583 10 026 019 019 034 023 023 Europe Stock 10 5235 1398 061 047 095 078 058 112 Foreign Large Blend 1 14 12 53642 0 1378 104 071 104 056 104 062 138 082 138 070 138 079 Foreign Large Growth 1 4 8 1494 0 9 038 071 038 066 038 064 054 082 054 084 054 081 Foreign Large Value 15 3779 33 077 068 070 087 084 084 Foreign SmallMid Blend 7 3459 26 065 067 067 080 082 084 Foreign SmallMid Value 4 679 3 075 072 077 089 091 096 Global Real Estate 10 3220 26 064 070 068 076 083 080 India Equity 7 2013 83 088 082 083 119 114 115 Japan Stock 11 7654 332 087 088 088 116 122 122 Latin America Stock 15 15029 1167 103 067 072 102 066 068 Miscellaneous Region 55 31460 1183 085 071 074 112 098 103 PacificAsia ex-Japan Stk 9 6750 92 089 085 085 123 121 122 World Stock 1 11 11 4820 0 49 033 054 033 041 033 038 047 064 047 045 047 043

Exhibit 1-8 Measures of ETF Investor Trading Costs 2010

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 188 1 46

40 293388 3 134992

0 35642 0 24521

082 019 059 005 059 004 085 025 085 004 085 003

134 030 094 006 097 006 141 039 141 005 141 005

Large Growth 3 22 31 42488 0 4271 085 013 053 004 051 004 133 020 083 006 079 007 Large Value 1 30 2 31778 0 1252 080 011 080 005 080 004 150 016 150 006 150 005 Mid-Cap Blend 22 26794 680 024 005 005 040 008 010 Mid-Cap Growth 1 13 3 6898 0 77 071 017 071 005 071 005 116 030 116 007 116 008 Mid-Cap Value 15 10850 117 017 005 006 025 007 007 Small Blend 18 24921 4384 020 007 007 031 009 008 Small Growth 10 6510 176 021 007 007 031 008 008 Small Value 12 8157 164 016 007 008 023 009 009

US EQUITY SECTORS Commodities Industrial Metals

3 242 1

19 96096 431

0 8173 8 103 035 067 012 068 008 047 047 047

152 050 100 015 103 011 061 061 061

Communications 8 1379 18 044 017 017 059 021 021 Consumer Cyclical 17 4618 915 031 010 008 046 013 010 Consumer Defensive 12 4229 196 033 007 006 051 010 008 Energy Limited Partnership 1 293 10 010 010 010 009 009 009 Equity Energy 21 11680 1304 029 009 007 041 012 009 Equity Precious Metals 8 8262 645 055 018 016 061 024 021 Financial 1 31 3 10377 0 1819 162 045 162 008 162 007 235 070 235 011 235 009 Health 22 7904 337 022 008 007 032 011 010 Industrials 21 5086 575 047 010 006 071 013 009 Miscellaneous Sector 24 4684 43 033 029 032 040 034 039 Natural Resources 29 9936 839 041 019 011 051 024 016 Real Estate 1 13 13 12152 0 915 038 029 038 008 038 009 060 052 060 012 060 014 Technology 1 23 3 10056 0 330 108 024 108 007 108 007 161 034 161 009 161 009 Utilities 11 5010 219 031 007 006 044 011 009

INTERNATIONAL EQUITY China Region

2 197 20

11 206613 15039

0 9127 1297

024 080 024 054 024 060 131 075 079

033 084 033 067 032 076 096 098 103

Diversified Emerging Mkts 23 75141 3629 068 043 046 070 051 058 Diversified PacificAsia 2 1460 9 019 021 021 024 025 025 Europe Stock 11 5053 89 055 041 038 073 054 050 Foreign Large Blend 13 46483 1256 065 053 058 083 065 073 Foreign Large Growth 1 3 6 1377 0 9 034 059 034 058 034 058 047 069 047 075 047 074 Foreign Large Value 13 2921 21 056 058 060 071 075 074 Foreign SmallMid Blend 7 2258 20 062 067 067 068 072 071 Foreign SmallMid Value 4 646 3 069 063 066 080 082 082 Global Real Estate 10 1980 15 065 070 068 071 081 073 India Equity 6 1673 59 083 074 077 079 090 093 Japan Stock 8 5205 227 077 073 073 107 097 096 Latin America Stock 10 14150 1424 133 070 076 060 083 092 Miscellaneous Region 48 23490 940 072 061 061 087 081 081 PacificAsia ex-Japan Stk 8 6620 99 094 068 068 124 091 090 World Stock 1 11 5 3117 0 30 015 114 015 035 015 034 019 116 019 037 019 038

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-9 Measures of ETF Investor Trading Costs 2009

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 173 1 42

20 232818 2 114656

1 34114 0 23503

067 040 068 009 071 008 059 032 059 008 059 007

101 062 103 015 110 012 090 048 090 012 090 011

Large Growth 3 21 9 34388 0 4606 067 032 068 010 068 008 097 049 100 015 100 014 Large Value 1 29 3 24456 0 1704 076 024 076 010 076 007 122 048 122 024 122 011 Mid-Cap Blend 17 18471 766 035 010 009 055 014 015 Mid-Cap Growth 1 16 5 4919 0 82 067 096 067 011 067 011 102 131 102 015 102 015 Mid-Cap Value 14 7979 120 034 011 011 060 015 016 Small Blend 15 16862 3059 037 015 014 059 020 019 Small Growth 9 5096 146 081 014 014 112 018 019 Small Value 10 5991 129 031 018 019 049 024 025

US EQUITY SECTORS Commodities Industrial Metals

3 204 1

10 66859 285

0 8017 7 113 048 128 021 131 018 066 066 066

178 069 207 031 214 026 081 081 081

Communications 7 950 16 049 025 022 065 033 030 Consumer Cyclical 15 2842 682 050 022 016 079 030 022 Consumer Defensive 10 3219 147 035 015 014 057 034 020 Energy Limited Partnership Equity Energy 18 8656 1390 040 014 010 056 018 013 Equity Precious Metals 3 4919 461 059 024 025 081 037 038 Financial 1 24 3 9381 0 2396 072 054 072 021 072 019 096 081 096 033 096 030 Health 20 6696 266 028 014 013 040 020 019 Industrials 17 2856 337 048 020 017 074 027 023 Miscellaneous Sector 24 4289 41 055 046 053 069 059 068 Natural Resources 23 6336 559 056 027 019 070 037 025 Real Estate 1 11 4 6903 0 1291 194 070 194 022 194 023 336 120 336 034 336 035 Technology 1 22 3 6299 0 206 072 042 072 016 072 016 103 063 103 023 103 022 Utilities 9 3229 218 042 015 013 062 024 019

INTERNATIONAL EQUITY China Region

0 175 15

0 139639 13661

0 7155 1162

106 074 077 088 120 125

129 096 103 105 162 167

Diversified Emerging Mkts 17 41629 2631 093 059 061 096 074 078 Diversified PacificAsia 2 1286 12 025 029 029 037 039 039 Europe Stock 17 4452 49 157 053 056 199 068 073 Foreign Large Blend 12 38012 1141 108 069 074 136 088 096 Foreign Large Growth 3 1164 9 082 077 078 108 099 100 Foreign Large Value 13 2258 19 084 081 082 109 103 103 Foreign SmallMid Blend 6 976 13 082 091 087 099 100 092 Foreign SmallMid Value 4 511 3 105 092 094 124 111 112 Global Real Estate 11 1153 9 123 104 105 159 122 125 India Equity 3 588 18 088 108 112 109 136 140 Japan Stock 9 5439 271 126 115 115 164 154 154 Latin America Stock 5 10277 1121 099 050 052 096 075 081 Miscellaneous Region 37 12306 604 095 089 091 114 114 118 PacificAsia ex-Japan Stk 10 4162 66 172 106 106 214 134 134 World Stock 11 1766 27 086 046 049 105 054 056

Exhibit 1-10 Measures of ETF Investor Trading Costs 2008

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

3 168 1 35

11 248798 2 121228

0 60751 0 39529

135 063 140 019 137 023 122 066 122 021 122 023

192 101 191 033 194 037 201 104 201 033 201 035

Large Growth 1 19 3 39760 0 7858 128 047 128 017 128 013 183 080 183 030 183 026 Large Value 28 26315 3719 049 019 041 085 033 068 Mid-Cap Blend 19 16971 1365 079 022 024 112 045 058 Mid-Cap Growth 1 17 6 6346 0 48 155 078 155 018 155 020 193 131 193 037 193 034 Mid-Cap Value 14 10630 603 070 018 106 110 032 164 Small Blend 15 16205 6674 064 017 019 100 026 029 Small Growth 9 5198 740 062 019 016 100 031 028 Small Value 12 6143 215 063 021 021 100 033 032

US EQUITY SECTORS Commodities Industrial Metals

1 214 1

3 70350 58

0 15814 2 526 085 526 036 526 037 056 056 056

562 126 562 057 562 063 082 082 082

Communications 7 1115 19 072 041 035 108 064 056 Consumer Cyclical 15 2503 542 080 028 027 123 048 046 Consumer Defensive 10 3666 138 056 026 025 093 051 052 Energy Limited Partnership Equity Energy 17 9112 7371 067 026 041 107 048 063 Equity Precious Metals 2 1794 168 099 025 025 139 044 044 Financial 21 12328 4450 084 038 038 138 076 075 Health 40 7545 290 092 025 024 136 047 049 Industrials 16 3356 434 081 026 022 126 045 040 Miscellaneous Sector 23 5487 81 081 052 072 109 072 095 Natural Resources 19 6789 787 138 078 032 156 076 050 Real Estate 1 11 3 7417 0 1060 526 096 526 030 526 036 562 162 562 053 562 062 Technology 23 5757 213 071 025 024 117 041 039 Utilities 9 3425 260 064 025 021 097 040 033

INTERNATIONAL EQUITY China Region

0 154 8

0 135999 10999

0 13543 1422

136 116 137 190 208 231

190 176 205 258 286 317

Diversified Emerging Mkts 14 29704 2808 120 106 117 159 161 183 Diversified PacificAsia 2 1558 14 024 029 029 038 045 045 Europe Stock 17 6677 1026 146 075 098 216 116 155 Foreign Large Blend 10 43781 1163 119 109 111 167 169 173 Foreign Large Growth 3 1256 13 125 109 110 177 164 164 Foreign Large Value 13 2187 26 115 110 111 164 165 167 Foreign SmallMid Blend 5 450 8 119 127 131 176 182 186 Foreign SmallMid Value 4 604 6 117 115 115 165 164 164 Global Real Estate 11 1035 14 153 121 125 206 173 176 India Equity 2 247 11 153 174 176 197 230 232 Japan Stock 9 7816 4843 160 163 154 224 239 225 Latin America Stock 4 9599 1222 138 058 065 201 111 128 Miscellaneous Region 30 15103 886 127 123 131 186 187 198 PacificAsia ex-Japan Stk 10 3539 50 176 173 172 242 245 240 World Stock 12 1443 31 125 061 065 162 087 088

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

Exhibit 2-1 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Asset-Weighted (AW) within overlapping fund categories

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 121 102 059 055 049 048 016 011 013 012 012 051 081 066 032 024 024 026 014 011

040 043

Large Growth 111 058 049 041 142 049 033 021 018 013 053 Large Value 066 075 047 031 020 013 018 016 014 033 Mid-Cap Blend 040 027 012 008 008 010 012 017 Mid-Cap Growth 137 056 065 044 040 028 006 054 Mid-Cap Value 009 006 008 008 009 008 Small Blend 020 019 025 021 021 Small Growth 035 029 032 Small Value

US EQUITY SECTORS Commodities Industrial Metals

496 107 059 023 019 010 008 006 009 007 074

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 035 053 -002 027 Equity Energy 019 011 008 004 004 009 Equity Precious Metals

Financial 050 154 017 074 Health 029 032 051 017 032 Industrials Miscellaneous Sector 010 002 000 005 009 003 005 Natural Resources Real Estate 496 172 030 023 020 015 014 023 022 016 083 Technology 056 101 038 029 033 013 045 Utilities 018 020 021 020

INTERNATIONAL EQUITY

China Region -018 007 011 -002 -012 -013 025 026

-015 007 004 031 003 007

Diversified Emerging Mkts 010 016 013 Diversified PacificAsia 035 037 036 Europe Stock 031 030 030 Foreign Large Blend 048 033 009 014 036 053 022 031 Foreign Large Growth -024 -027 -006 002 010 010 006 001 -004 Foreign Large Value 006 005 012 008 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -004 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 017 096 056 PacificAsia ex-Japan Stk

World Stock -020 -008 005 005 -006 -005 022 047 005

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 159 169 089 089 076 052 021 015 018 013 014 078 136 094 036 034 035 051 014 012

055 066

Large Growth 152 085 077 071 127 080 053 028 020 016 071 Large Value 098 144 069 045 041 020 027 020 019 054 Mid-Cap Blend 058 045 012 010 007 010 015 022 Mid-Cap Growth 155 087 109 075 064 037 007 076 Mid-Cap Value 008 007 010 007 009 008 Small Blend 027 025 035 028 029 Small Growth 062 044 053 Small Value

US EQUITY SECTORS Commodities Industrial Metals

509 177 089 049 018 004 006 005 009 006 087

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 024 065 -007 026 Equity Energy 012 003 004 003 001 005 Equity Precious Metals

Financial 063 224 007 098 Health 042 047 078 022 047 Industrials Miscellaneous Sector 021 012 006 015 028 013 016 Natural Resources Real Estate 509 302 048 049 031 022 022 038 031 023 107 Technology 081 151 060 043 053 014 067 Utilities 024 030 034 029

INTERNATIONAL EQUITY

China Region -015 016 019 008 -014 -017 016 022

-010 009 030 043 004 018

Diversified Emerging Mkts -020 -006 -013 Diversified PacificAsia 026 024 025 Europe Stock 011 009 010 Foreign Large Blend 068 038 016 017 044 036 027 035 Foreign Large Growth -028 -030 -002 018 010 018 021 -005 000 Foreign Large Value -001 -001 009 002 Foreign SmallMid Blend

Foreign SmallMid Value -010 -009 002 -006 Global Real Estate 007 001 060 023 India Equity Japan Stock Latin America Stock Miscellaneous Region 006 104 055 PacificAsia ex-Japan Stk

World Stock -018 002 017 020 -003 -005 034 039 011

Exhibit 2-2 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Volume-Weighted (VW) within overlapping fund categories

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 160 098 091 077 049 022 021 019 013 013 057 Large Blend 167 079 136 097 026 032 032 039 015 011 063 Large Growth 157 086 073 071 127 083 060 014 016 017 070 Large Value 111 144 070 045 043 029 032 021 018 057 Mid-Cap Blend 059 044 012 012 010 009 015 023 Mid-Cap Growth 159 088 108 075 063 036 006 076 Mid-Cap Value 007 008 011 008 010 009 Small Blend 027 025 039 027 029 Small Growth 057 049 053 Small Value

US EQUITY SECTORS 500 183 093 049 017 007 014 005 017 010 089 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 024 065 -003 029 Equity Energy 014 004 006 001 002 005 Equity Precious Metals

Financial 065 226 007 100 Health 042 046 077 023 047 Industrials Miscellaneous Sector 014 -002 -004 006 020 -006 005 Natural Resources Real Estate 500 301 046 049 030 022 022 038 028 023 106 Technology 081 152 058 044 053 014 067 Utilities 025 030 034 030

INTERNATIONAL EQUITY -014 018 010 -011 -025 -031 -005 004 -007 China Region -012 004 021 034 012 Diversified Emerging Mkts -030 -010 -020 Diversified PacificAsia 030 025 027 Europe Stock 011 008 009 Foreign Large Blend 059 039 008 010 030 017 026 027 Foreign Large Growth -026 -027 -002 021 011 018 022 -004 002 Foreign Large Value 014 003 008 008 Foreign SmallMid Blend

Foreign SmallMid Value -009 -010 001 -006 Global Real Estate 008 000 059 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 001 100 050 PacificAsia ex-Japan Stk

World Stock -018 004 019 013 -001 -005 033 025 009

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - VW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 116 064 056 051 048 017 016 014 012 012 041 Large Blend 100 052 082 070 025 024 021 023 014 011 042 Large Growth 115 060 047 041 136 057 037 011 015 014 053 Large Value 069 076 047 031 021 019 022 016 013 035 Mid-Cap Blend 040 027 011 013 009 009 012 017 Mid-Cap Growth 135 056 065 044 039 027 005 053 Mid-Cap Value 008 006 009 009 009 008 Small Blend 021 019 028 021 022 Small Growth 032 031 031 Small Value

US EQUITY SECTORS 490 111 061 024 020 013 012 006 016 011 076 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 035 053 002 030 Equity Energy 020 012 009 005 005 010 Equity Precious Metals

Financial 052 156 017 075 Health 029 032 050 017 032 Industrials Miscellaneous Sector 005 -009 -008 -002 003 -010 -003 Natural Resources Real Estate 490 171 030 024 020 015 013 023 022 015 082 Technology 056 102 038 029 032 012 045 Utilities 019 020 021 020

INTERNATIONAL EQUITY -016 010 004 -015 -018 -023 015 014 -004 China Region -017 003 -002 025 002 Diversified Emerging Mkts 004 015 009 Diversified PacificAsia 037 038 037 Europe Stock 030 029 030 Foreign Large Blend 042 033 004 010 029 048 022 027 Foreign Large Growth -024 -026 -006 000 010 009 007 -001 -004 Foreign Large Value 016 006 011 011 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -005 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 013 093 053 PacificAsia ex-Japan Stk

World Stock -019 -006 005 001 -004 -005 021 035 004

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - VW

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-1 Measures of ETF Investor Trading Costs 2017

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

37 386 18 125

1384 1374105 706 669269

9 30867 5 19466

021 021 014 002 014 002 018 027 013 002 013 002

028 027 017 003 016 003 023 035 015 003 014 002

Large Growth 5 36 120 158836 1 4449 024 012 015 002 016 002 038 016 018 003 020 003 Large Value 6 70 116 201055 1 1524 027 016 017 002 016 002 037 021 022 003 021 003 Mid-Cap Blend 4 34 212 110527 1 752 016 018 015 003 015 003 019 021 018 003 018 003 Mid-Cap Growth 24 26182 99 014 003 004 021 004 004 Mid-Cap Value 2 23 199 49433 1 186 012 013 011 003 012 003 013 019 013 004 013 003 Small Blend 42 106069 4024 032 004 004 044 005 004 Small Growth 2 12 31 21442 0 152 042 012 033 004 035 004 067 016 050 006 054 006 Small Value 20 31292 217 012 004 004 016 005 005

US EQUITY SECTORS Commodities Industrial Metals

12 308 2 2641 367022

290 28 12715

4 018 019 011 006 015 007 022 020 020

020 021 011 006 014 008 031 028 028

Communications 5 2361 35 010 007 008 012 010 010 Consumer Cyclical 23 20107 777 015 003 004 021 004 005 Consumer Defensive 17 15360 602 028 003 003 030 004 004 Energy Limited Partnership 2 8 2226 11390 19 136 015 016 010 012 014 012 014 020 010 016 013 016 Equity Energy 26 28691 1732 020 004 004 025 005 005 Equity Precious Metals 12 14989 1721 034 024 023 048 032 031 Financial 1 29 65 52155 1 2282 022 009 022 005 022 005 013 012 013 006 013 006 Health 1 33 26 48681 0 1327 020 018 020 004 020 004 027 023 027 005 027 005 Industrials 23 25008 784 013 003 003 019 005 004 Miscellaneous Sector 2 23 9 5803 0 50 019 029 023 020 017 027 023 030 032 020 019 025 Natural Resources 32 18983 440 027 012 007 033 013 009 Real Estate 1 21 26 54328 0 1001 019 015 019 003 019 003 027 020 027 004 027 004 Technology 4 42 275 56185 7 1139 015 017 016 003 016 004 014 000 014 000 014 000 Utilities 1 12 15 12691 0 686 024 017 024 003 024 003 038 021 038 004 038 004

INTERNATIONAL EQUITY China Region

14 473 40

947 621707 14435

7 10115 915 052 044 050 026 042 030 054 034 035

046 040 038 020 029 031 063 043 045

Diversified Emerging Mkts 1 72 47 146419 0 3118 050 052 050 033 050 035 028 049 028 034 028 038 Diversified PacificAsia 1 5 22 5388 0 28 056 035 056 019 056 018 043 045 043 019 043 018 Europe Stock 1 36 76 52472 1 779 047 045 047 017 047 017 029 046 029 019 029 020 Foreign Large Blend 5 60 330 237501 3 2172 040 045 042 020 042 020 034 000 027 000 026 000 Foreign Large Growth 1 11 82 4361 1 24 027 040 027 026 027 027 019 040 019 024 019 023 Foreign Large Value 30 20156 90 036 026 026 030 025 025 Foreign SmallMid Blend 8 15967 80 043 029 029 044 024 025 Foreign SmallMid Value 8 2139 7 048 035 036 041 028 029 Global Real Estate 1 11 1 12013 0 68 088 024 088 020 088 020 078 028 078 018 078 019 India Equity 9 8609 165 047 042 041 055 052 052 Japan Stock 25 29592 580 043 038 037 053 050 049 Latin America Stock 8 7609 713 040 039 042 050 055 059 Miscellaneous Region 1 94 10 32418 0 1052 127 042 127 030 127 033 144 049 144 040 144 044 PacificAsia ex-Japan Stk 12 8099 109 044 035 035 046 040 041 World Stock 3 44 381 24528 1 213 047 036 060 013 047 012 044 032 051 012 037 012

Exhibit 1-2 Measures of ETF Investor Trading Costs 2016

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

29 332 11 94

1201 1012433 318 490019

6 34845 2 23996

023 019 015 003 015 002 024 023 016 002 016 002

032 026 017 004 017 003 037 029 017 003 017 003

Large Growth 3 35 103 122047 0 3594 030 020 021 002 017 002 040 027 024 003 019 003 Large Value 4 63 57 148962 1 1723 028 013 019 003 019 003 037 019 024 004 024 003 Mid-Cap Blend 5 32 414 83226 2 826 016 014 013 003 012 003 018 020 014 004 013 004 Mid-Cap Growth 1 23 38 21828 0 118 009 018 009 004 009 004 011 027 011 005 011 005 Mid-Cap Value 2 23 232 38563 1 220 012 014 012 003 012 003 012 021 012 005 012 004 Small Blend 1 30 14 70586 0 3928 025 038 025 004 025 004 032 043 032 005 032 005 Small Growth 2 12 25 15724 0 176 031 012 039 004 036 004 054 016 067 005 062 005 Small Value 20 21479 265 015 004 004 021 005 005

US EQUITY SECTORS Commodities Industrial Metals

9 323 2 1404 288778

172 9 14396

3 036 024 014 007 021 010 031 022 022

053 031 016 009 024 013 054 031 031

Communications 6 2584 39 015 008 007 021 011 009 Consumer Cyclical 26 19031 929 020 004 004 027 005 006 Consumer Defensive 17 17417 757 022 004 004 031 005 005 Energy Limited Partnership 1 9 82 8979 2 124 068 024 068 016 068 015 086 034 086 021 086 020 Equity Energy 1 26 1232 26605 7 2124 010 025 010 005 010 005 008 034 008 007 008 007 Equity Precious Metals 12 12877 2466 052 035 033 067 047 045 Financial 32 31168 1818 018 005 005 025 007 006 Health 1 35 7 39732 0 1888 055 018 055 004 055 005 084 026 084 006 084 007 Industrials 23 13835 791 017 004 004 024 006 006 Miscellaneous Sector 1 24 6 3516 0 16 030 035 030 021 030 027 052 040 052 024 052 033 Natural Resources 33 12672 507 031 015 008 041 019 014 Real Estate 1 21 29 49626 0 1159 026 018 026 004 026 004 036 023 036 005 036 008 Technology 3 44 38 37232 0 902 037 022 037 004 037 004 058 028 058 005 058 006 Utilities 1 13 11 13333 0 874 023 023 023 004 023 003 035 030 035 005 035 005

INTERNATIONAL EQUITY China Region

14 477 1 36

159 442940 1 12303

2 10835 0 1071

059 060 062 041 064 052 100 080 100 069 100 075

062 072 062 052 058 068 136 093 136 092 136 102

Diversified Emerging Mkts 1 71 4 92001 0 3355 062 069 062 051 062 058 043 080 043 063 043 073 Diversified PacificAsia 1 6 18 3768 0 32 062 058 062 027 062 025 063 071 063 036 063 033 Europe Stock 1 42 19 46655 0 845 058 056 058 027 058 028 050 075 050 039 050 040 Foreign Large Blend 4 46 47 159291 1 2237 068 046 083 030 081 033 060 050 073 037 059 042 Foreign Large Growth 1 10 15 3252 0 25 044 045 044 038 044 037 069 053 069 048 069 047 Foreign Large Value 1 37 35 12422 0 81 051 043 051 039 051 039 057 049 057 048 057 048 Foreign SmallMid Blend 9 10325 64 052 039 039 057 047 048 Foreign SmallMid Value 1 9 10 1541 0 6 055 057 055 044 055 044 055 065 055 054 055 054 Global Real Estate 1 14 1 11424 0 68 023 059 023 027 023 028 036 054 036 035 036 036 India Equity 9 6536 166 062 057 058 078 075 076 Japan Stock 31 27218 791 089 081 080 120 111 111 Latin America Stock 13 4473 653 073 055 059 093 074 080 Miscellaneous Region 1 97 1 28042 0 1157 066 060 066 049 066 053 071 073 071 065 071 070 PacificAsia ex-Japan Stk 12 5565 86 061 059 060 072 077 079 World Stock 1 35 7 18126 0 196 039 046 039 017 039 017 054 045 054 021 054 022

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-3 Measures of ETF Investor Trading Costs 2015

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

27 289 6 89

1222 902925 135 428901

9 39057 1 27662

029 016 016 003 016 003 034 021 028 003 025 002

044 024 023 005 023 004 065 031 055 004 042 003

Large Growth 5 27 112 116940 2 3991 033 014 024 003 014 003 048 020 034 006 018 004 Large Value 5 56 91 125450 1 1846 031 014 021 003 026 004 045 020 032 005 037 005 Mid-Cap Blend 5 25 444 77539 2 797 024 010 011 004 012 003 030 014 014 007 015 005 Mid-Cap Growth 1 16 12 22571 0 145 032 011 032 004 032 005 042 016 042 005 042 006 Mid-Cap Value 3 20 379 33606 2 170 013 012 011 003 012 003 017 018 014 004 015 004 Small Blend 2 28 48 63843 1 4083 029 023 029 004 032 004 039 034 040 005 045 005 Small Growth 11 16384 188 011 005 004 016 008 006 Small Value 17 17691 174 014 005 005 020 006 006

US EQUITY SECTORS Commodities Industrial Metals

8 287 3 1154 284349

176 11 12193

3 030 021 011 006 011 007 055 024 025

043 028 014 009 014 010 072 039 039

Communications 7 2177 24 015 010 009 020 013 012 Consumer Cyclical 19 22396 1018 013 004 004 018 006 006 Consumer Defensive 12 15687 491 013 004 003 017 005 004 Energy Limited Partnership 1 8 15 8934 0 116 048 023 048 013 048 013 063 034 063 039 063 039 Equity Energy 1 24 1050 24010 10 2243 009 019 009 005 009 004 010 025 010 007 010 010 Equity Precious Metals 14 7688 1112 055 028 028 067 035 034 Financial 32 33402 1250 018 005 005 025 008 008 Health 1 28 8 50211 0 2070 037 010 037 005 037 005 054 016 054 007 054 008 Industrials 20 13658 701 014 004 003 018 005 004 Miscellaneous Sector 1 23 8 4474 0 30 030 036 030 025 030 032 045 044 045 031 045 039 Natural Resources 30 12906 462 029 015 011 036 019 015 Real Estate 1 19 51 41564 0 1198 027 017 027 004 027 004 042 022 042 005 042 005 Technology 2 36 19 37138 0 844 034 017 034 005 033 004 050 021 049 006 049 006 Utilities 1 12 3 9929 0 632 022 017 022 004 022 003 029 024 029 005 029 004

INTERNATIONAL EQUITY China Region

16 452 1 37

682 453166 8 18321

4 10848 0 1336

040 062 023 043 029 054 080 091 080 076 080 082

048 074 027 054 036 070 131 123 131 101 131 110

Diversified Emerging Mkts 68 90331 2989 073 048 056 084 059 070 Diversified PacificAsia 6 3600 38 068 024 022 083 030 027 Europe Stock 38 57453 1109 049 033 033 054 044 044 Foreign Large Blend 2 46 21 139266 0 2084 066 049 069 032 065 036 076 049 082 039 074 044 Foreign Large Growth 1 6 17 2772 0 22 051 039 051 040 051 041 067 047 067 050 067 049 Foreign Large Value 2 25 85 11697 0 83 049 046 047 041 048 041 056 056 050 051 054 051 Foreign SmallMid Blend 9 8773 62 058 045 046 061 048 048 Foreign SmallMid Value 1 8 12 1435 0 8 069 055 069 050 069 050 048 067 048 057 048 058 Global Real Estate 1 15 2 11502 0 66 038 060 038 035 038 034 048 051 048 041 048 040 India Equity 9 7556 206 072 067 066 093 087 089 Japan Stock 27 37667 816 074 073 072 098 097 096 Latin America Stock 14 3382 520 073 062 069 092 082 093 Miscellaneous Region 99 34338 1217 061 048 055 075 064 073 PacificAsia ex-Japan Stk 14 7117 112 064 061 064 074 080 082 World Stock 8 31 537 17955 3 180 022 045 015 020 015 020 027 050 018 023 019 024

Exhibit 1-4 Measures of ETF Investor Trading Costs 2014

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

22 239 4 55

821 774265 68 368608

12 34958 4 22916

027 011 014 003 018 003 025 012 027 002 023 002

040 014 019 004 025 003 037 017 038 003 035 003

Large Growth 4 26 36 102359 1 3878 045 008 036 003 039 003 076 010 057 003 064 003 Large Value 4 49 69 107422 1 1581 026 009 017 003 021 003 040 012 024 004 032 003 Mid-Cap Blend 5 25 301 64967 4 859 023 010 012 004 016 003 030 013 015 004 017 004 Mid-Cap Growth 1 16 8 15453 0 87 043 012 043 004 043 004 069 017 069 005 069 005 Mid-Cap Value 3 18 326 30827 3 150 010 009 009 003 010 004 012 012 011 004 012 004 Small Blend 1 24 13 55147 0 5110 023 014 023 004 023 004 030 020 030 005 030 005 Small Growth 11 13821 221 011 005 005 016 006 006 Small Value 15 15661 158 010 005 005 014 006 006

US EQUITY SECTORS Commodities Industrial Metals

7 286 3 795 251880

302 9 10480

5 029 023 013 006 016 007 059 019 024

040 027 012 008 019 009 064 025 030

Communications 8 2071 22 022 009 010 029 012 013 Consumer Cyclical 19 13946 909 015 004 004 020 006 005 Consumer Defensive 13 11999 386 021 004 003 025 005 004 Energy Limited Partnership 1 8 6 9302 74 030 015 030 008 008 034 019 034 012 012 Equity Energy 1 23 722 21758 6 2167 012 018 012 004 012 003 010 020 010 006 010 004 Equity Precious Metals 14 10004 1180 051 029 029 063 039 040 Financial 34 31400 1086 019 005 004 025 006 006 Health 1 26 3 33541 0 1213 033 012 033 004 033 004 047 016 047 006 047 005 Industrials 21 16338 707 015 004 003 020 005 004 Miscellaneous Sector 1 25 14 4977 3 48 024 037 024 024 024 032 035 041 035 028 035 038 Natural Resources 31 18412 476 032 011 006 035 014 009 Real Estate 1 17 38 36378 0 1028 017 014 017 004 017 004 027 017 027 005 027 005 Technology 2 31 12 32212 0 603 041 018 043 004 042 004 063 023 065 006 064 006 Utilities 13 9240 577 024 004 003 031 005 004

INTERNATIONAL EQUITY China Region

14 363 1 33

569 389932 3 14329

9 9722 0 1000

033 054 018 037 022 044 057 057 057 050 057 054

039 064 022 047 027 058 079 072 079 070 079 075

Diversified Emerging Mkts 60 102815 3283 052 040 045 061 052 059 Diversified PacificAsia 4 2904 30 039 019 020 049 024 026 Europe Stock 20 37564 675 041 025 025 049 031 032 Foreign Large Blend 1 26 18 104664 0 1437 042 038 042 028 042 032 049 037 049 032 049 039 Foreign Large Growth 1 6 13 2393 0 12 042 035 042 032 042 032 053 042 053 043 053 042 Foreign Large Value 2 19 38 11151 1 68 061 041 044 038 055 039 064 042 041 042 056 042 Foreign SmallMid Blend 7 7034 43 051 041 041 051 043 044 Foreign SmallMid Value 1 7 8 1316 0 7 060 051 060 048 060 047 042 052 042 052 042 051 Global Real Estate 11 9157 48 035 034 034 040 039 038 India Equity 9 4109 143 082 071 069 095 085 084 Japan Stock 19 26870 658 068 071 070 098 100 100 Latin America Stock 15 5952 978 050 038 041 060 049 053 Miscellaneous Region 93 37484 1131 061 042 046 074 056 067 PacificAsia ex-Japan Stk 14 6784 82 096 046 047 127 061 064 World Stock 8 20 490 15407 7 126 017 030 014 019 014 019 023 034 018 021 019 021

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-5 Measures of ETF Investor Trading Costs 2013

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

11 228 4 52

254 602855 57 283095

5 30466 1 21345

030 011 019 003 020 003 026 013 027 003 026 002

043 015 026 004 026 004 036 017 038 004 036 003

Large Growth 2 24 12 79539 0 2590 059 008 052 003 060 003 086 011 084 004 087 004 Large Value 2 46 22 84819 0 1441 027 010 023 004 025 003 049 013 046 004 047 004 Mid-Cap Blend 1 27 42 50116 1 756 016 012 016 004 016 004 018 017 018 005 018 006 Mid-Cap Growth 15 11764 65 012 004 004 017 005 005 Mid-Cap Value 1 15 118 24542 2 133 012 009 012 004 012 004 013 011 013 005 013 005 Small Blend 1 23 3 45089 0 3853 025 014 025 005 025 005 033 019 033 006 033 006 Small Growth 11 11220 155 012 005 005 016 006 006 Small Value 15 12672 129 012 005 005 015 006 006

US EQUITY SECTORS Commodities Industrial Metals

3 294 3 389 193811

301 4 8170

4 021 028 017 007 017 006 102 024 025

025 032 011 009 013 007 107 031 033

Communications 9 1761 23 034 011 010 039 014 012 Consumer Cyclical 19 13857 930 018 005 004 022 007 006 Consumer Defensive 14 9930 372 026 005 003 031 006 004 Energy Limited Partnership 7 6638 57 019 010 010 019 014 014 Equity Energy 1 25 348 17187 3 1375 016 022 016 005 016 004 009 025 009 006 009 005 Equity Precious Metals 13 9222 901 060 023 014 073 031 020 Financial 37 23390 1069 025 005 004 030 006 005 Health 25 20261 588 015 005 004 017 006 005 Industrials 21 9798 522 020 005 004 023 006 005 Miscellaneous Sector 1 27 13 3594 0 33 027 045 027 025 027 036 039 047 039 027 039 041 Natural Resources 33 17259 469 038 014 007 040 015 008 Real Estate 1 16 28 30178 0 1003 020 014 020 005 020 005 028 018 028 006 028 007 Technology 31 21882 392 023 005 005 027 006 007 Utilities 14 8552 431 028 004 004 033 005 004

INTERNATIONAL EQUITY China Region

6 303 1 28

56 328958 2 15130

1 8997 0 897

034 063 034 045 031 052 045 073 045 059 045 061

050 070 049 056 045 066 065 084 065 075 065 078

Diversified Emerging Mkts 55 113931 3537 070 048 052 075 061 069 Diversified PacificAsia 3 2308 25 040 020 020 048 023 023 Europe Stock 11 16565 335 049 027 028 043 034 035 Foreign Large Blend 1 18 16 77427 0 1304 042 046 042 033 042 038 052 041 052 036 052 044 Foreign Large Growth 1 3 8 1944 0 10 043 045 043 041 043 043 065 047 065 046 065 044 Foreign Large Value 19 7770 50 052 045 046 044 047 046 Foreign SmallMid Blend 7 4883 32 061 052 052 051 048 050 Foreign SmallMid Value 6 860 6 071 063 072 066 059 074 Global Real Estate 11 7520 53 045 044 044 050 050 049 India Equity 9 2195 92 085 078 077 113 105 105 Japan Stock 11 19728 725 091 091 090 111 113 112 Latin America Stock 16 8492 749 048 038 041 055 050 055 Miscellaneous Region 79 32234 990 063 047 048 075 063 065 PacificAsia ex-Japan Stk 13 7314 92 079 052 054 103 070 072 World Stock 3 14 30 10656 1 100 025 045 027 022 025 023 039 047 042 023 037 024

Exhibit 1-6 Measures of ETF Investor Trading Costs 2012

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 237 4 50

57 434426 37 199782

1 30277 1 20543

059 018 052 004 051 003 032 016 035 003 028 003

064 025 056 005 053 004 037 021 040 004 030 004

Large Growth 2 32 9 66776 0 3060 141 016 146 003 139 003 131 022 131 004 131 004 Large Value 1 46 3 59881 0 1165 035 017 035 004 035 003 050 022 050 005 050 004 Mid-Cap Blend 1 28 8 33654 0 786 031 016 031 004 031 005 050 023 050 006 050 006 Mid-Cap Growth 14 8978 67 020 004 004 033 005 005 Mid-Cap Value 13 18493 132 013 004 004 018 006 005 Small Blend 19 29985 1029 017 006 006 024 007 007 Small Growth 16 7974 3371 027 006 005 047 008 007 Small Value 19 8903 124 025 006 006 035 008 008

US EQUITY SECTORS Commodities Industrial Metals

3 294 3 100 146358

347 2 7199

3 029 030 026 008 026 006 070 028 028

035 035 026 010 024 008 162 039 040

Communications 9 1669 14 037 014 014 044 017 016 Consumer Cyclical 19 8276 777 020 006 006 024 007 007 Consumer Defensive 15 8318 228 028 005 004 035 006 005 Energy Limited Partnership 3 3532 34 021 010 010 020 011 012 Equity Energy 1 27 70 15405 2 1381 025 028 025 006 025 005 020 033 020 008 020 006 Equity Precious Metals 13 11920 746 059 017 011 067 022 014 Financial 35 12379 1331 027 006 007 037 008 009 Health 25 12513 323 016 006 005 021 008 007 Industrials 24 5497 742 029 006 004 033 007 005 Miscellaneous Sector 1 25 7 2929 0 20 037 043 037 027 037 032 049 037 049 027 049 035 Natural Resources 35 14239 537 037 014 006 043 016 008 Real Estate 1 17 23 23279 0 359 025 015 025 005 025 005 037 020 037 006 037 007 Technology 31 17304 399 026 005 010 030 007 011 Utilities 13 8752 305 030 005 005 036 007 006

INTERNATIONAL EQUITY China Region

5 278 25

40 250891 12117

0 8093 752 040 066 045 041 042 055 095 066 075

052 071 057 049 053 065 103 085 090

Diversified Emerging Mkts 50 101336 1420 074 040 041 073 049 047 Diversified PacificAsia 3 1594 12 041 012 013 041 015 015 Europe Stock 10 5746 115 056 033 029 054 037 031 Foreign Large Blend 1 18 14 56331 0 402 068 066 068 035 068 035 076 054 076 038 076 037 Foreign Large Growth 1 4 7 1356 0 840 034 039 034 039 034 039 045 045 045 047 045 047 Foreign Large Value 16 4784 35 065 046 046 075 050 052 Foreign SmallMid Blend 7 3336 12 057 045 046 061 046 045 Foreign SmallMid Value 5 586 2 063 051 051 075 059 060 Global Real Estate 10 4903 48 047 045 048 052 049 055 India Equity 9 1758 106 072 064 066 085 078 081 Japan Stock 10 6012 56 068 056 056 086 074 074 Latin America Stock 17 11385 542 050 029 039 061 040 049 Miscellaneous Region 69 26881 1308 063 047 056 071 060 067 PacificAsia ex-Japan Stk 12 6191 2410 068 057 071 083 073 085 World Stock 3 13 19 6575 0 31 033 054 034 029 032 026 047 050 047 030 045 026

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-7 Measures of ETF Investor Trading Costs 2011

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 227 2 51

64 364536 19 166662

1 40351 0 28288

058 025 053 004 054 004 063 023 070 004 073 003

091 040 082 007 084 007 092 036 100 006 104 007

Large Growth 3 30 34 52494 1 4002 065 026 045 004 044 003 108 039 076 005 075 004 Large Value 1 39 3 44248 0 1353 051 017 051 004 051 004 075 025 075 006 075 005 Mid-Cap Blend 1 28 5 32903 0 786 045 025 045 005 045 005 066 043 066 008 066 007 Mid-Cap Growth 1 14 3 8923 0 100 049 028 049 005 049 005 081 043 081 007 081 007 Mid-Cap Value 13 14109 126 015 005 005 024 007 006 Small Blend 19 28441 5329 025 007 007 040 010 009 Small Growth 15 8214 216 048 008 008 078 012 011 Small Value 18 8542 152 037 008 009 057 012 012

US EQUITY SECTORS Commodities Industrial Metals

1 297 2

20 135323 540

0 10757 6 030 033 030 012 030 009 046 044 044

059 047 059 017 059 015 063 061 061

Communications 11 1771 21 037 019 016 056 028 024 Consumer Cyclical 20 5994 1080 031 012 014 052 026 038 Consumer Defensive 15 6341 296 034 007 005 045 010 007 Energy Limited Partnership 1 1187 13 010 010 010 012 012 012 Equity Energy 26 20568 2812 027 007 004 035 010 006 Equity Precious Metals 9 11160 846 047 021 015 059 028 020 Financial 35 11342 1572 037 008 006 054 012 009 Health 27 11121 505 022 009 006 032 014 009 Industrials 25 5840 802 033 007 004 048 010 006 Miscellaneous Sector 24 4600 48 042 036 041 051 043 051 Natural Resources 35 14921 1006 043 020 010 057 026 012 Real Estate 1 17 20 16580 0 714 030 026 030 007 030 007 059 042 059 010 059 009 Technology 36 16200 753 027 010 029 045 016 053 Utilities 14 7159 281 033 006 005 044 008 006

INTERNATIONAL EQUITY China Region

3 231 23

31 244592 13779

1 10827 1049

058 084 062 063 071 075 134 097 101

080 101 084 082 096 098 151 137 145

Diversified Emerging Mkts 34 89996 3989 077 056 067 088 076 093 Diversified PacificAsia 2 1583 10 026 019 019 034 023 023 Europe Stock 10 5235 1398 061 047 095 078 058 112 Foreign Large Blend 1 14 12 53642 0 1378 104 071 104 056 104 062 138 082 138 070 138 079 Foreign Large Growth 1 4 8 1494 0 9 038 071 038 066 038 064 054 082 054 084 054 081 Foreign Large Value 15 3779 33 077 068 070 087 084 084 Foreign SmallMid Blend 7 3459 26 065 067 067 080 082 084 Foreign SmallMid Value 4 679 3 075 072 077 089 091 096 Global Real Estate 10 3220 26 064 070 068 076 083 080 India Equity 7 2013 83 088 082 083 119 114 115 Japan Stock 11 7654 332 087 088 088 116 122 122 Latin America Stock 15 15029 1167 103 067 072 102 066 068 Miscellaneous Region 55 31460 1183 085 071 074 112 098 103 PacificAsia ex-Japan Stk 9 6750 92 089 085 085 123 121 122 World Stock 1 11 11 4820 0 49 033 054 033 041 033 038 047 064 047 045 047 043

Exhibit 1-8 Measures of ETF Investor Trading Costs 2010

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 188 1 46

40 293388 3 134992

0 35642 0 24521

082 019 059 005 059 004 085 025 085 004 085 003

134 030 094 006 097 006 141 039 141 005 141 005

Large Growth 3 22 31 42488 0 4271 085 013 053 004 051 004 133 020 083 006 079 007 Large Value 1 30 2 31778 0 1252 080 011 080 005 080 004 150 016 150 006 150 005 Mid-Cap Blend 22 26794 680 024 005 005 040 008 010 Mid-Cap Growth 1 13 3 6898 0 77 071 017 071 005 071 005 116 030 116 007 116 008 Mid-Cap Value 15 10850 117 017 005 006 025 007 007 Small Blend 18 24921 4384 020 007 007 031 009 008 Small Growth 10 6510 176 021 007 007 031 008 008 Small Value 12 8157 164 016 007 008 023 009 009

US EQUITY SECTORS Commodities Industrial Metals

3 242 1

19 96096 431

0 8173 8 103 035 067 012 068 008 047 047 047

152 050 100 015 103 011 061 061 061

Communications 8 1379 18 044 017 017 059 021 021 Consumer Cyclical 17 4618 915 031 010 008 046 013 010 Consumer Defensive 12 4229 196 033 007 006 051 010 008 Energy Limited Partnership 1 293 10 010 010 010 009 009 009 Equity Energy 21 11680 1304 029 009 007 041 012 009 Equity Precious Metals 8 8262 645 055 018 016 061 024 021 Financial 1 31 3 10377 0 1819 162 045 162 008 162 007 235 070 235 011 235 009 Health 22 7904 337 022 008 007 032 011 010 Industrials 21 5086 575 047 010 006 071 013 009 Miscellaneous Sector 24 4684 43 033 029 032 040 034 039 Natural Resources 29 9936 839 041 019 011 051 024 016 Real Estate 1 13 13 12152 0 915 038 029 038 008 038 009 060 052 060 012 060 014 Technology 1 23 3 10056 0 330 108 024 108 007 108 007 161 034 161 009 161 009 Utilities 11 5010 219 031 007 006 044 011 009

INTERNATIONAL EQUITY China Region

2 197 20

11 206613 15039

0 9127 1297

024 080 024 054 024 060 131 075 079

033 084 033 067 032 076 096 098 103

Diversified Emerging Mkts 23 75141 3629 068 043 046 070 051 058 Diversified PacificAsia 2 1460 9 019 021 021 024 025 025 Europe Stock 11 5053 89 055 041 038 073 054 050 Foreign Large Blend 13 46483 1256 065 053 058 083 065 073 Foreign Large Growth 1 3 6 1377 0 9 034 059 034 058 034 058 047 069 047 075 047 074 Foreign Large Value 13 2921 21 056 058 060 071 075 074 Foreign SmallMid Blend 7 2258 20 062 067 067 068 072 071 Foreign SmallMid Value 4 646 3 069 063 066 080 082 082 Global Real Estate 10 1980 15 065 070 068 071 081 073 India Equity 6 1673 59 083 074 077 079 090 093 Japan Stock 8 5205 227 077 073 073 107 097 096 Latin America Stock 10 14150 1424 133 070 076 060 083 092 Miscellaneous Region 48 23490 940 072 061 061 087 081 081 PacificAsia ex-Japan Stk 8 6620 99 094 068 068 124 091 090 World Stock 1 11 5 3117 0 30 015 114 015 035 015 034 019 116 019 037 019 038

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-9 Measures of ETF Investor Trading Costs 2009

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 173 1 42

20 232818 2 114656

1 34114 0 23503

067 040 068 009 071 008 059 032 059 008 059 007

101 062 103 015 110 012 090 048 090 012 090 011

Large Growth 3 21 9 34388 0 4606 067 032 068 010 068 008 097 049 100 015 100 014 Large Value 1 29 3 24456 0 1704 076 024 076 010 076 007 122 048 122 024 122 011 Mid-Cap Blend 17 18471 766 035 010 009 055 014 015 Mid-Cap Growth 1 16 5 4919 0 82 067 096 067 011 067 011 102 131 102 015 102 015 Mid-Cap Value 14 7979 120 034 011 011 060 015 016 Small Blend 15 16862 3059 037 015 014 059 020 019 Small Growth 9 5096 146 081 014 014 112 018 019 Small Value 10 5991 129 031 018 019 049 024 025

US EQUITY SECTORS Commodities Industrial Metals

3 204 1

10 66859 285

0 8017 7 113 048 128 021 131 018 066 066 066

178 069 207 031 214 026 081 081 081

Communications 7 950 16 049 025 022 065 033 030 Consumer Cyclical 15 2842 682 050 022 016 079 030 022 Consumer Defensive 10 3219 147 035 015 014 057 034 020 Energy Limited Partnership Equity Energy 18 8656 1390 040 014 010 056 018 013 Equity Precious Metals 3 4919 461 059 024 025 081 037 038 Financial 1 24 3 9381 0 2396 072 054 072 021 072 019 096 081 096 033 096 030 Health 20 6696 266 028 014 013 040 020 019 Industrials 17 2856 337 048 020 017 074 027 023 Miscellaneous Sector 24 4289 41 055 046 053 069 059 068 Natural Resources 23 6336 559 056 027 019 070 037 025 Real Estate 1 11 4 6903 0 1291 194 070 194 022 194 023 336 120 336 034 336 035 Technology 1 22 3 6299 0 206 072 042 072 016 072 016 103 063 103 023 103 022 Utilities 9 3229 218 042 015 013 062 024 019

INTERNATIONAL EQUITY China Region

0 175 15

0 139639 13661

0 7155 1162

106 074 077 088 120 125

129 096 103 105 162 167

Diversified Emerging Mkts 17 41629 2631 093 059 061 096 074 078 Diversified PacificAsia 2 1286 12 025 029 029 037 039 039 Europe Stock 17 4452 49 157 053 056 199 068 073 Foreign Large Blend 12 38012 1141 108 069 074 136 088 096 Foreign Large Growth 3 1164 9 082 077 078 108 099 100 Foreign Large Value 13 2258 19 084 081 082 109 103 103 Foreign SmallMid Blend 6 976 13 082 091 087 099 100 092 Foreign SmallMid Value 4 511 3 105 092 094 124 111 112 Global Real Estate 11 1153 9 123 104 105 159 122 125 India Equity 3 588 18 088 108 112 109 136 140 Japan Stock 9 5439 271 126 115 115 164 154 154 Latin America Stock 5 10277 1121 099 050 052 096 075 081 Miscellaneous Region 37 12306 604 095 089 091 114 114 118 PacificAsia ex-Japan Stk 10 4162 66 172 106 106 214 134 134 World Stock 11 1766 27 086 046 049 105 054 056

Exhibit 1-10 Measures of ETF Investor Trading Costs 2008

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

3 168 1 35

11 248798 2 121228

0 60751 0 39529

135 063 140 019 137 023 122 066 122 021 122 023

192 101 191 033 194 037 201 104 201 033 201 035

Large Growth 1 19 3 39760 0 7858 128 047 128 017 128 013 183 080 183 030 183 026 Large Value 28 26315 3719 049 019 041 085 033 068 Mid-Cap Blend 19 16971 1365 079 022 024 112 045 058 Mid-Cap Growth 1 17 6 6346 0 48 155 078 155 018 155 020 193 131 193 037 193 034 Mid-Cap Value 14 10630 603 070 018 106 110 032 164 Small Blend 15 16205 6674 064 017 019 100 026 029 Small Growth 9 5198 740 062 019 016 100 031 028 Small Value 12 6143 215 063 021 021 100 033 032

US EQUITY SECTORS Commodities Industrial Metals

1 214 1

3 70350 58

0 15814 2 526 085 526 036 526 037 056 056 056

562 126 562 057 562 063 082 082 082

Communications 7 1115 19 072 041 035 108 064 056 Consumer Cyclical 15 2503 542 080 028 027 123 048 046 Consumer Defensive 10 3666 138 056 026 025 093 051 052 Energy Limited Partnership Equity Energy 17 9112 7371 067 026 041 107 048 063 Equity Precious Metals 2 1794 168 099 025 025 139 044 044 Financial 21 12328 4450 084 038 038 138 076 075 Health 40 7545 290 092 025 024 136 047 049 Industrials 16 3356 434 081 026 022 126 045 040 Miscellaneous Sector 23 5487 81 081 052 072 109 072 095 Natural Resources 19 6789 787 138 078 032 156 076 050 Real Estate 1 11 3 7417 0 1060 526 096 526 030 526 036 562 162 562 053 562 062 Technology 23 5757 213 071 025 024 117 041 039 Utilities 9 3425 260 064 025 021 097 040 033

INTERNATIONAL EQUITY China Region

0 154 8

0 135999 10999

0 13543 1422

136 116 137 190 208 231

190 176 205 258 286 317

Diversified Emerging Mkts 14 29704 2808 120 106 117 159 161 183 Diversified PacificAsia 2 1558 14 024 029 029 038 045 045 Europe Stock 17 6677 1026 146 075 098 216 116 155 Foreign Large Blend 10 43781 1163 119 109 111 167 169 173 Foreign Large Growth 3 1256 13 125 109 110 177 164 164 Foreign Large Value 13 2187 26 115 110 111 164 165 167 Foreign SmallMid Blend 5 450 8 119 127 131 176 182 186 Foreign SmallMid Value 4 604 6 117 115 115 165 164 164 Global Real Estate 11 1035 14 153 121 125 206 173 176 India Equity 2 247 11 153 174 176 197 230 232 Japan Stock 9 7816 4843 160 163 154 224 239 225 Latin America Stock 4 9599 1222 138 058 065 201 111 128 Miscellaneous Region 30 15103 886 127 123 131 186 187 198 PacificAsia ex-Japan Stk 10 3539 50 176 173 172 242 245 240 World Stock 12 1443 31 125 061 065 162 087 088

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

Exhibit 2-1 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Asset-Weighted (AW) within overlapping fund categories

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 121 102 059 055 049 048 016 011 013 012 012 051 081 066 032 024 024 026 014 011

040 043

Large Growth 111 058 049 041 142 049 033 021 018 013 053 Large Value 066 075 047 031 020 013 018 016 014 033 Mid-Cap Blend 040 027 012 008 008 010 012 017 Mid-Cap Growth 137 056 065 044 040 028 006 054 Mid-Cap Value 009 006 008 008 009 008 Small Blend 020 019 025 021 021 Small Growth 035 029 032 Small Value

US EQUITY SECTORS Commodities Industrial Metals

496 107 059 023 019 010 008 006 009 007 074

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 035 053 -002 027 Equity Energy 019 011 008 004 004 009 Equity Precious Metals

Financial 050 154 017 074 Health 029 032 051 017 032 Industrials Miscellaneous Sector 010 002 000 005 009 003 005 Natural Resources Real Estate 496 172 030 023 020 015 014 023 022 016 083 Technology 056 101 038 029 033 013 045 Utilities 018 020 021 020

INTERNATIONAL EQUITY

China Region -018 007 011 -002 -012 -013 025 026

-015 007 004 031 003 007

Diversified Emerging Mkts 010 016 013 Diversified PacificAsia 035 037 036 Europe Stock 031 030 030 Foreign Large Blend 048 033 009 014 036 053 022 031 Foreign Large Growth -024 -027 -006 002 010 010 006 001 -004 Foreign Large Value 006 005 012 008 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -004 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 017 096 056 PacificAsia ex-Japan Stk

World Stock -020 -008 005 005 -006 -005 022 047 005

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 159 169 089 089 076 052 021 015 018 013 014 078 136 094 036 034 035 051 014 012

055 066

Large Growth 152 085 077 071 127 080 053 028 020 016 071 Large Value 098 144 069 045 041 020 027 020 019 054 Mid-Cap Blend 058 045 012 010 007 010 015 022 Mid-Cap Growth 155 087 109 075 064 037 007 076 Mid-Cap Value 008 007 010 007 009 008 Small Blend 027 025 035 028 029 Small Growth 062 044 053 Small Value

US EQUITY SECTORS Commodities Industrial Metals

509 177 089 049 018 004 006 005 009 006 087

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 024 065 -007 026 Equity Energy 012 003 004 003 001 005 Equity Precious Metals

Financial 063 224 007 098 Health 042 047 078 022 047 Industrials Miscellaneous Sector 021 012 006 015 028 013 016 Natural Resources Real Estate 509 302 048 049 031 022 022 038 031 023 107 Technology 081 151 060 043 053 014 067 Utilities 024 030 034 029

INTERNATIONAL EQUITY

China Region -015 016 019 008 -014 -017 016 022

-010 009 030 043 004 018

Diversified Emerging Mkts -020 -006 -013 Diversified PacificAsia 026 024 025 Europe Stock 011 009 010 Foreign Large Blend 068 038 016 017 044 036 027 035 Foreign Large Growth -028 -030 -002 018 010 018 021 -005 000 Foreign Large Value -001 -001 009 002 Foreign SmallMid Blend

Foreign SmallMid Value -010 -009 002 -006 Global Real Estate 007 001 060 023 India Equity Japan Stock Latin America Stock Miscellaneous Region 006 104 055 PacificAsia ex-Japan Stk

World Stock -018 002 017 020 -003 -005 034 039 011

Exhibit 2-2 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Volume-Weighted (VW) within overlapping fund categories

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 160 098 091 077 049 022 021 019 013 013 057 Large Blend 167 079 136 097 026 032 032 039 015 011 063 Large Growth 157 086 073 071 127 083 060 014 016 017 070 Large Value 111 144 070 045 043 029 032 021 018 057 Mid-Cap Blend 059 044 012 012 010 009 015 023 Mid-Cap Growth 159 088 108 075 063 036 006 076 Mid-Cap Value 007 008 011 008 010 009 Small Blend 027 025 039 027 029 Small Growth 057 049 053 Small Value

US EQUITY SECTORS 500 183 093 049 017 007 014 005 017 010 089 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 024 065 -003 029 Equity Energy 014 004 006 001 002 005 Equity Precious Metals

Financial 065 226 007 100 Health 042 046 077 023 047 Industrials Miscellaneous Sector 014 -002 -004 006 020 -006 005 Natural Resources Real Estate 500 301 046 049 030 022 022 038 028 023 106 Technology 081 152 058 044 053 014 067 Utilities 025 030 034 030

INTERNATIONAL EQUITY -014 018 010 -011 -025 -031 -005 004 -007 China Region -012 004 021 034 012 Diversified Emerging Mkts -030 -010 -020 Diversified PacificAsia 030 025 027 Europe Stock 011 008 009 Foreign Large Blend 059 039 008 010 030 017 026 027 Foreign Large Growth -026 -027 -002 021 011 018 022 -004 002 Foreign Large Value 014 003 008 008 Foreign SmallMid Blend

Foreign SmallMid Value -009 -010 001 -006 Global Real Estate 008 000 059 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 001 100 050 PacificAsia ex-Japan Stk

World Stock -018 004 019 013 -001 -005 033 025 009

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - VW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 116 064 056 051 048 017 016 014 012 012 041 Large Blend 100 052 082 070 025 024 021 023 014 011 042 Large Growth 115 060 047 041 136 057 037 011 015 014 053 Large Value 069 076 047 031 021 019 022 016 013 035 Mid-Cap Blend 040 027 011 013 009 009 012 017 Mid-Cap Growth 135 056 065 044 039 027 005 053 Mid-Cap Value 008 006 009 009 009 008 Small Blend 021 019 028 021 022 Small Growth 032 031 031 Small Value

US EQUITY SECTORS 490 111 061 024 020 013 012 006 016 011 076 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 035 053 002 030 Equity Energy 020 012 009 005 005 010 Equity Precious Metals

Financial 052 156 017 075 Health 029 032 050 017 032 Industrials Miscellaneous Sector 005 -009 -008 -002 003 -010 -003 Natural Resources Real Estate 490 171 030 024 020 015 013 023 022 015 082 Technology 056 102 038 029 032 012 045 Utilities 019 020 021 020

INTERNATIONAL EQUITY -016 010 004 -015 -018 -023 015 014 -004 China Region -017 003 -002 025 002 Diversified Emerging Mkts 004 015 009 Diversified PacificAsia 037 038 037 Europe Stock 030 029 030 Foreign Large Blend 042 033 004 010 029 048 022 027 Foreign Large Growth -024 -026 -006 000 010 009 007 -001 -004 Foreign Large Value 016 006 011 011 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -005 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 013 093 053 PacificAsia ex-Japan Stk

World Stock -019 -006 005 001 -004 -005 021 035 004

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - VW

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-3 Measures of ETF Investor Trading Costs 2015

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

27 289 6 89

1222 902925 135 428901

9 39057 1 27662

029 016 016 003 016 003 034 021 028 003 025 002

044 024 023 005 023 004 065 031 055 004 042 003

Large Growth 5 27 112 116940 2 3991 033 014 024 003 014 003 048 020 034 006 018 004 Large Value 5 56 91 125450 1 1846 031 014 021 003 026 004 045 020 032 005 037 005 Mid-Cap Blend 5 25 444 77539 2 797 024 010 011 004 012 003 030 014 014 007 015 005 Mid-Cap Growth 1 16 12 22571 0 145 032 011 032 004 032 005 042 016 042 005 042 006 Mid-Cap Value 3 20 379 33606 2 170 013 012 011 003 012 003 017 018 014 004 015 004 Small Blend 2 28 48 63843 1 4083 029 023 029 004 032 004 039 034 040 005 045 005 Small Growth 11 16384 188 011 005 004 016 008 006 Small Value 17 17691 174 014 005 005 020 006 006

US EQUITY SECTORS Commodities Industrial Metals

8 287 3 1154 284349

176 11 12193

3 030 021 011 006 011 007 055 024 025

043 028 014 009 014 010 072 039 039

Communications 7 2177 24 015 010 009 020 013 012 Consumer Cyclical 19 22396 1018 013 004 004 018 006 006 Consumer Defensive 12 15687 491 013 004 003 017 005 004 Energy Limited Partnership 1 8 15 8934 0 116 048 023 048 013 048 013 063 034 063 039 063 039 Equity Energy 1 24 1050 24010 10 2243 009 019 009 005 009 004 010 025 010 007 010 010 Equity Precious Metals 14 7688 1112 055 028 028 067 035 034 Financial 32 33402 1250 018 005 005 025 008 008 Health 1 28 8 50211 0 2070 037 010 037 005 037 005 054 016 054 007 054 008 Industrials 20 13658 701 014 004 003 018 005 004 Miscellaneous Sector 1 23 8 4474 0 30 030 036 030 025 030 032 045 044 045 031 045 039 Natural Resources 30 12906 462 029 015 011 036 019 015 Real Estate 1 19 51 41564 0 1198 027 017 027 004 027 004 042 022 042 005 042 005 Technology 2 36 19 37138 0 844 034 017 034 005 033 004 050 021 049 006 049 006 Utilities 1 12 3 9929 0 632 022 017 022 004 022 003 029 024 029 005 029 004

INTERNATIONAL EQUITY China Region

16 452 1 37

682 453166 8 18321

4 10848 0 1336

040 062 023 043 029 054 080 091 080 076 080 082

048 074 027 054 036 070 131 123 131 101 131 110

Diversified Emerging Mkts 68 90331 2989 073 048 056 084 059 070 Diversified PacificAsia 6 3600 38 068 024 022 083 030 027 Europe Stock 38 57453 1109 049 033 033 054 044 044 Foreign Large Blend 2 46 21 139266 0 2084 066 049 069 032 065 036 076 049 082 039 074 044 Foreign Large Growth 1 6 17 2772 0 22 051 039 051 040 051 041 067 047 067 050 067 049 Foreign Large Value 2 25 85 11697 0 83 049 046 047 041 048 041 056 056 050 051 054 051 Foreign SmallMid Blend 9 8773 62 058 045 046 061 048 048 Foreign SmallMid Value 1 8 12 1435 0 8 069 055 069 050 069 050 048 067 048 057 048 058 Global Real Estate 1 15 2 11502 0 66 038 060 038 035 038 034 048 051 048 041 048 040 India Equity 9 7556 206 072 067 066 093 087 089 Japan Stock 27 37667 816 074 073 072 098 097 096 Latin America Stock 14 3382 520 073 062 069 092 082 093 Miscellaneous Region 99 34338 1217 061 048 055 075 064 073 PacificAsia ex-Japan Stk 14 7117 112 064 061 064 074 080 082 World Stock 8 31 537 17955 3 180 022 045 015 020 015 020 027 050 018 023 019 024

Exhibit 1-4 Measures of ETF Investor Trading Costs 2014

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

22 239 4 55

821 774265 68 368608

12 34958 4 22916

027 011 014 003 018 003 025 012 027 002 023 002

040 014 019 004 025 003 037 017 038 003 035 003

Large Growth 4 26 36 102359 1 3878 045 008 036 003 039 003 076 010 057 003 064 003 Large Value 4 49 69 107422 1 1581 026 009 017 003 021 003 040 012 024 004 032 003 Mid-Cap Blend 5 25 301 64967 4 859 023 010 012 004 016 003 030 013 015 004 017 004 Mid-Cap Growth 1 16 8 15453 0 87 043 012 043 004 043 004 069 017 069 005 069 005 Mid-Cap Value 3 18 326 30827 3 150 010 009 009 003 010 004 012 012 011 004 012 004 Small Blend 1 24 13 55147 0 5110 023 014 023 004 023 004 030 020 030 005 030 005 Small Growth 11 13821 221 011 005 005 016 006 006 Small Value 15 15661 158 010 005 005 014 006 006

US EQUITY SECTORS Commodities Industrial Metals

7 286 3 795 251880

302 9 10480

5 029 023 013 006 016 007 059 019 024

040 027 012 008 019 009 064 025 030

Communications 8 2071 22 022 009 010 029 012 013 Consumer Cyclical 19 13946 909 015 004 004 020 006 005 Consumer Defensive 13 11999 386 021 004 003 025 005 004 Energy Limited Partnership 1 8 6 9302 74 030 015 030 008 008 034 019 034 012 012 Equity Energy 1 23 722 21758 6 2167 012 018 012 004 012 003 010 020 010 006 010 004 Equity Precious Metals 14 10004 1180 051 029 029 063 039 040 Financial 34 31400 1086 019 005 004 025 006 006 Health 1 26 3 33541 0 1213 033 012 033 004 033 004 047 016 047 006 047 005 Industrials 21 16338 707 015 004 003 020 005 004 Miscellaneous Sector 1 25 14 4977 3 48 024 037 024 024 024 032 035 041 035 028 035 038 Natural Resources 31 18412 476 032 011 006 035 014 009 Real Estate 1 17 38 36378 0 1028 017 014 017 004 017 004 027 017 027 005 027 005 Technology 2 31 12 32212 0 603 041 018 043 004 042 004 063 023 065 006 064 006 Utilities 13 9240 577 024 004 003 031 005 004

INTERNATIONAL EQUITY China Region

14 363 1 33

569 389932 3 14329

9 9722 0 1000

033 054 018 037 022 044 057 057 057 050 057 054

039 064 022 047 027 058 079 072 079 070 079 075

Diversified Emerging Mkts 60 102815 3283 052 040 045 061 052 059 Diversified PacificAsia 4 2904 30 039 019 020 049 024 026 Europe Stock 20 37564 675 041 025 025 049 031 032 Foreign Large Blend 1 26 18 104664 0 1437 042 038 042 028 042 032 049 037 049 032 049 039 Foreign Large Growth 1 6 13 2393 0 12 042 035 042 032 042 032 053 042 053 043 053 042 Foreign Large Value 2 19 38 11151 1 68 061 041 044 038 055 039 064 042 041 042 056 042 Foreign SmallMid Blend 7 7034 43 051 041 041 051 043 044 Foreign SmallMid Value 1 7 8 1316 0 7 060 051 060 048 060 047 042 052 042 052 042 051 Global Real Estate 11 9157 48 035 034 034 040 039 038 India Equity 9 4109 143 082 071 069 095 085 084 Japan Stock 19 26870 658 068 071 070 098 100 100 Latin America Stock 15 5952 978 050 038 041 060 049 053 Miscellaneous Region 93 37484 1131 061 042 046 074 056 067 PacificAsia ex-Japan Stk 14 6784 82 096 046 047 127 061 064 World Stock 8 20 490 15407 7 126 017 030 014 019 014 019 023 034 018 021 019 021

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-5 Measures of ETF Investor Trading Costs 2013

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

11 228 4 52

254 602855 57 283095

5 30466 1 21345

030 011 019 003 020 003 026 013 027 003 026 002

043 015 026 004 026 004 036 017 038 004 036 003

Large Growth 2 24 12 79539 0 2590 059 008 052 003 060 003 086 011 084 004 087 004 Large Value 2 46 22 84819 0 1441 027 010 023 004 025 003 049 013 046 004 047 004 Mid-Cap Blend 1 27 42 50116 1 756 016 012 016 004 016 004 018 017 018 005 018 006 Mid-Cap Growth 15 11764 65 012 004 004 017 005 005 Mid-Cap Value 1 15 118 24542 2 133 012 009 012 004 012 004 013 011 013 005 013 005 Small Blend 1 23 3 45089 0 3853 025 014 025 005 025 005 033 019 033 006 033 006 Small Growth 11 11220 155 012 005 005 016 006 006 Small Value 15 12672 129 012 005 005 015 006 006

US EQUITY SECTORS Commodities Industrial Metals

3 294 3 389 193811

301 4 8170

4 021 028 017 007 017 006 102 024 025

025 032 011 009 013 007 107 031 033

Communications 9 1761 23 034 011 010 039 014 012 Consumer Cyclical 19 13857 930 018 005 004 022 007 006 Consumer Defensive 14 9930 372 026 005 003 031 006 004 Energy Limited Partnership 7 6638 57 019 010 010 019 014 014 Equity Energy 1 25 348 17187 3 1375 016 022 016 005 016 004 009 025 009 006 009 005 Equity Precious Metals 13 9222 901 060 023 014 073 031 020 Financial 37 23390 1069 025 005 004 030 006 005 Health 25 20261 588 015 005 004 017 006 005 Industrials 21 9798 522 020 005 004 023 006 005 Miscellaneous Sector 1 27 13 3594 0 33 027 045 027 025 027 036 039 047 039 027 039 041 Natural Resources 33 17259 469 038 014 007 040 015 008 Real Estate 1 16 28 30178 0 1003 020 014 020 005 020 005 028 018 028 006 028 007 Technology 31 21882 392 023 005 005 027 006 007 Utilities 14 8552 431 028 004 004 033 005 004

INTERNATIONAL EQUITY China Region

6 303 1 28

56 328958 2 15130

1 8997 0 897

034 063 034 045 031 052 045 073 045 059 045 061

050 070 049 056 045 066 065 084 065 075 065 078

Diversified Emerging Mkts 55 113931 3537 070 048 052 075 061 069 Diversified PacificAsia 3 2308 25 040 020 020 048 023 023 Europe Stock 11 16565 335 049 027 028 043 034 035 Foreign Large Blend 1 18 16 77427 0 1304 042 046 042 033 042 038 052 041 052 036 052 044 Foreign Large Growth 1 3 8 1944 0 10 043 045 043 041 043 043 065 047 065 046 065 044 Foreign Large Value 19 7770 50 052 045 046 044 047 046 Foreign SmallMid Blend 7 4883 32 061 052 052 051 048 050 Foreign SmallMid Value 6 860 6 071 063 072 066 059 074 Global Real Estate 11 7520 53 045 044 044 050 050 049 India Equity 9 2195 92 085 078 077 113 105 105 Japan Stock 11 19728 725 091 091 090 111 113 112 Latin America Stock 16 8492 749 048 038 041 055 050 055 Miscellaneous Region 79 32234 990 063 047 048 075 063 065 PacificAsia ex-Japan Stk 13 7314 92 079 052 054 103 070 072 World Stock 3 14 30 10656 1 100 025 045 027 022 025 023 039 047 042 023 037 024

Exhibit 1-6 Measures of ETF Investor Trading Costs 2012

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 237 4 50

57 434426 37 199782

1 30277 1 20543

059 018 052 004 051 003 032 016 035 003 028 003

064 025 056 005 053 004 037 021 040 004 030 004

Large Growth 2 32 9 66776 0 3060 141 016 146 003 139 003 131 022 131 004 131 004 Large Value 1 46 3 59881 0 1165 035 017 035 004 035 003 050 022 050 005 050 004 Mid-Cap Blend 1 28 8 33654 0 786 031 016 031 004 031 005 050 023 050 006 050 006 Mid-Cap Growth 14 8978 67 020 004 004 033 005 005 Mid-Cap Value 13 18493 132 013 004 004 018 006 005 Small Blend 19 29985 1029 017 006 006 024 007 007 Small Growth 16 7974 3371 027 006 005 047 008 007 Small Value 19 8903 124 025 006 006 035 008 008

US EQUITY SECTORS Commodities Industrial Metals

3 294 3 100 146358

347 2 7199

3 029 030 026 008 026 006 070 028 028

035 035 026 010 024 008 162 039 040

Communications 9 1669 14 037 014 014 044 017 016 Consumer Cyclical 19 8276 777 020 006 006 024 007 007 Consumer Defensive 15 8318 228 028 005 004 035 006 005 Energy Limited Partnership 3 3532 34 021 010 010 020 011 012 Equity Energy 1 27 70 15405 2 1381 025 028 025 006 025 005 020 033 020 008 020 006 Equity Precious Metals 13 11920 746 059 017 011 067 022 014 Financial 35 12379 1331 027 006 007 037 008 009 Health 25 12513 323 016 006 005 021 008 007 Industrials 24 5497 742 029 006 004 033 007 005 Miscellaneous Sector 1 25 7 2929 0 20 037 043 037 027 037 032 049 037 049 027 049 035 Natural Resources 35 14239 537 037 014 006 043 016 008 Real Estate 1 17 23 23279 0 359 025 015 025 005 025 005 037 020 037 006 037 007 Technology 31 17304 399 026 005 010 030 007 011 Utilities 13 8752 305 030 005 005 036 007 006

INTERNATIONAL EQUITY China Region

5 278 25

40 250891 12117

0 8093 752 040 066 045 041 042 055 095 066 075

052 071 057 049 053 065 103 085 090

Diversified Emerging Mkts 50 101336 1420 074 040 041 073 049 047 Diversified PacificAsia 3 1594 12 041 012 013 041 015 015 Europe Stock 10 5746 115 056 033 029 054 037 031 Foreign Large Blend 1 18 14 56331 0 402 068 066 068 035 068 035 076 054 076 038 076 037 Foreign Large Growth 1 4 7 1356 0 840 034 039 034 039 034 039 045 045 045 047 045 047 Foreign Large Value 16 4784 35 065 046 046 075 050 052 Foreign SmallMid Blend 7 3336 12 057 045 046 061 046 045 Foreign SmallMid Value 5 586 2 063 051 051 075 059 060 Global Real Estate 10 4903 48 047 045 048 052 049 055 India Equity 9 1758 106 072 064 066 085 078 081 Japan Stock 10 6012 56 068 056 056 086 074 074 Latin America Stock 17 11385 542 050 029 039 061 040 049 Miscellaneous Region 69 26881 1308 063 047 056 071 060 067 PacificAsia ex-Japan Stk 12 6191 2410 068 057 071 083 073 085 World Stock 3 13 19 6575 0 31 033 054 034 029 032 026 047 050 047 030 045 026

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-7 Measures of ETF Investor Trading Costs 2011

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 227 2 51

64 364536 19 166662

1 40351 0 28288

058 025 053 004 054 004 063 023 070 004 073 003

091 040 082 007 084 007 092 036 100 006 104 007

Large Growth 3 30 34 52494 1 4002 065 026 045 004 044 003 108 039 076 005 075 004 Large Value 1 39 3 44248 0 1353 051 017 051 004 051 004 075 025 075 006 075 005 Mid-Cap Blend 1 28 5 32903 0 786 045 025 045 005 045 005 066 043 066 008 066 007 Mid-Cap Growth 1 14 3 8923 0 100 049 028 049 005 049 005 081 043 081 007 081 007 Mid-Cap Value 13 14109 126 015 005 005 024 007 006 Small Blend 19 28441 5329 025 007 007 040 010 009 Small Growth 15 8214 216 048 008 008 078 012 011 Small Value 18 8542 152 037 008 009 057 012 012

US EQUITY SECTORS Commodities Industrial Metals

1 297 2

20 135323 540

0 10757 6 030 033 030 012 030 009 046 044 044

059 047 059 017 059 015 063 061 061

Communications 11 1771 21 037 019 016 056 028 024 Consumer Cyclical 20 5994 1080 031 012 014 052 026 038 Consumer Defensive 15 6341 296 034 007 005 045 010 007 Energy Limited Partnership 1 1187 13 010 010 010 012 012 012 Equity Energy 26 20568 2812 027 007 004 035 010 006 Equity Precious Metals 9 11160 846 047 021 015 059 028 020 Financial 35 11342 1572 037 008 006 054 012 009 Health 27 11121 505 022 009 006 032 014 009 Industrials 25 5840 802 033 007 004 048 010 006 Miscellaneous Sector 24 4600 48 042 036 041 051 043 051 Natural Resources 35 14921 1006 043 020 010 057 026 012 Real Estate 1 17 20 16580 0 714 030 026 030 007 030 007 059 042 059 010 059 009 Technology 36 16200 753 027 010 029 045 016 053 Utilities 14 7159 281 033 006 005 044 008 006

INTERNATIONAL EQUITY China Region

3 231 23

31 244592 13779

1 10827 1049

058 084 062 063 071 075 134 097 101

080 101 084 082 096 098 151 137 145

Diversified Emerging Mkts 34 89996 3989 077 056 067 088 076 093 Diversified PacificAsia 2 1583 10 026 019 019 034 023 023 Europe Stock 10 5235 1398 061 047 095 078 058 112 Foreign Large Blend 1 14 12 53642 0 1378 104 071 104 056 104 062 138 082 138 070 138 079 Foreign Large Growth 1 4 8 1494 0 9 038 071 038 066 038 064 054 082 054 084 054 081 Foreign Large Value 15 3779 33 077 068 070 087 084 084 Foreign SmallMid Blend 7 3459 26 065 067 067 080 082 084 Foreign SmallMid Value 4 679 3 075 072 077 089 091 096 Global Real Estate 10 3220 26 064 070 068 076 083 080 India Equity 7 2013 83 088 082 083 119 114 115 Japan Stock 11 7654 332 087 088 088 116 122 122 Latin America Stock 15 15029 1167 103 067 072 102 066 068 Miscellaneous Region 55 31460 1183 085 071 074 112 098 103 PacificAsia ex-Japan Stk 9 6750 92 089 085 085 123 121 122 World Stock 1 11 11 4820 0 49 033 054 033 041 033 038 047 064 047 045 047 043

Exhibit 1-8 Measures of ETF Investor Trading Costs 2010

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 188 1 46

40 293388 3 134992

0 35642 0 24521

082 019 059 005 059 004 085 025 085 004 085 003

134 030 094 006 097 006 141 039 141 005 141 005

Large Growth 3 22 31 42488 0 4271 085 013 053 004 051 004 133 020 083 006 079 007 Large Value 1 30 2 31778 0 1252 080 011 080 005 080 004 150 016 150 006 150 005 Mid-Cap Blend 22 26794 680 024 005 005 040 008 010 Mid-Cap Growth 1 13 3 6898 0 77 071 017 071 005 071 005 116 030 116 007 116 008 Mid-Cap Value 15 10850 117 017 005 006 025 007 007 Small Blend 18 24921 4384 020 007 007 031 009 008 Small Growth 10 6510 176 021 007 007 031 008 008 Small Value 12 8157 164 016 007 008 023 009 009

US EQUITY SECTORS Commodities Industrial Metals

3 242 1

19 96096 431

0 8173 8 103 035 067 012 068 008 047 047 047

152 050 100 015 103 011 061 061 061

Communications 8 1379 18 044 017 017 059 021 021 Consumer Cyclical 17 4618 915 031 010 008 046 013 010 Consumer Defensive 12 4229 196 033 007 006 051 010 008 Energy Limited Partnership 1 293 10 010 010 010 009 009 009 Equity Energy 21 11680 1304 029 009 007 041 012 009 Equity Precious Metals 8 8262 645 055 018 016 061 024 021 Financial 1 31 3 10377 0 1819 162 045 162 008 162 007 235 070 235 011 235 009 Health 22 7904 337 022 008 007 032 011 010 Industrials 21 5086 575 047 010 006 071 013 009 Miscellaneous Sector 24 4684 43 033 029 032 040 034 039 Natural Resources 29 9936 839 041 019 011 051 024 016 Real Estate 1 13 13 12152 0 915 038 029 038 008 038 009 060 052 060 012 060 014 Technology 1 23 3 10056 0 330 108 024 108 007 108 007 161 034 161 009 161 009 Utilities 11 5010 219 031 007 006 044 011 009

INTERNATIONAL EQUITY China Region

2 197 20

11 206613 15039

0 9127 1297

024 080 024 054 024 060 131 075 079

033 084 033 067 032 076 096 098 103

Diversified Emerging Mkts 23 75141 3629 068 043 046 070 051 058 Diversified PacificAsia 2 1460 9 019 021 021 024 025 025 Europe Stock 11 5053 89 055 041 038 073 054 050 Foreign Large Blend 13 46483 1256 065 053 058 083 065 073 Foreign Large Growth 1 3 6 1377 0 9 034 059 034 058 034 058 047 069 047 075 047 074 Foreign Large Value 13 2921 21 056 058 060 071 075 074 Foreign SmallMid Blend 7 2258 20 062 067 067 068 072 071 Foreign SmallMid Value 4 646 3 069 063 066 080 082 082 Global Real Estate 10 1980 15 065 070 068 071 081 073 India Equity 6 1673 59 083 074 077 079 090 093 Japan Stock 8 5205 227 077 073 073 107 097 096 Latin America Stock 10 14150 1424 133 070 076 060 083 092 Miscellaneous Region 48 23490 940 072 061 061 087 081 081 PacificAsia ex-Japan Stk 8 6620 99 094 068 068 124 091 090 World Stock 1 11 5 3117 0 30 015 114 015 035 015 034 019 116 019 037 019 038

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-9 Measures of ETF Investor Trading Costs 2009

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 173 1 42

20 232818 2 114656

1 34114 0 23503

067 040 068 009 071 008 059 032 059 008 059 007

101 062 103 015 110 012 090 048 090 012 090 011

Large Growth 3 21 9 34388 0 4606 067 032 068 010 068 008 097 049 100 015 100 014 Large Value 1 29 3 24456 0 1704 076 024 076 010 076 007 122 048 122 024 122 011 Mid-Cap Blend 17 18471 766 035 010 009 055 014 015 Mid-Cap Growth 1 16 5 4919 0 82 067 096 067 011 067 011 102 131 102 015 102 015 Mid-Cap Value 14 7979 120 034 011 011 060 015 016 Small Blend 15 16862 3059 037 015 014 059 020 019 Small Growth 9 5096 146 081 014 014 112 018 019 Small Value 10 5991 129 031 018 019 049 024 025

US EQUITY SECTORS Commodities Industrial Metals

3 204 1

10 66859 285

0 8017 7 113 048 128 021 131 018 066 066 066

178 069 207 031 214 026 081 081 081

Communications 7 950 16 049 025 022 065 033 030 Consumer Cyclical 15 2842 682 050 022 016 079 030 022 Consumer Defensive 10 3219 147 035 015 014 057 034 020 Energy Limited Partnership Equity Energy 18 8656 1390 040 014 010 056 018 013 Equity Precious Metals 3 4919 461 059 024 025 081 037 038 Financial 1 24 3 9381 0 2396 072 054 072 021 072 019 096 081 096 033 096 030 Health 20 6696 266 028 014 013 040 020 019 Industrials 17 2856 337 048 020 017 074 027 023 Miscellaneous Sector 24 4289 41 055 046 053 069 059 068 Natural Resources 23 6336 559 056 027 019 070 037 025 Real Estate 1 11 4 6903 0 1291 194 070 194 022 194 023 336 120 336 034 336 035 Technology 1 22 3 6299 0 206 072 042 072 016 072 016 103 063 103 023 103 022 Utilities 9 3229 218 042 015 013 062 024 019

INTERNATIONAL EQUITY China Region

0 175 15

0 139639 13661

0 7155 1162

106 074 077 088 120 125

129 096 103 105 162 167

Diversified Emerging Mkts 17 41629 2631 093 059 061 096 074 078 Diversified PacificAsia 2 1286 12 025 029 029 037 039 039 Europe Stock 17 4452 49 157 053 056 199 068 073 Foreign Large Blend 12 38012 1141 108 069 074 136 088 096 Foreign Large Growth 3 1164 9 082 077 078 108 099 100 Foreign Large Value 13 2258 19 084 081 082 109 103 103 Foreign SmallMid Blend 6 976 13 082 091 087 099 100 092 Foreign SmallMid Value 4 511 3 105 092 094 124 111 112 Global Real Estate 11 1153 9 123 104 105 159 122 125 India Equity 3 588 18 088 108 112 109 136 140 Japan Stock 9 5439 271 126 115 115 164 154 154 Latin America Stock 5 10277 1121 099 050 052 096 075 081 Miscellaneous Region 37 12306 604 095 089 091 114 114 118 PacificAsia ex-Japan Stk 10 4162 66 172 106 106 214 134 134 World Stock 11 1766 27 086 046 049 105 054 056

Exhibit 1-10 Measures of ETF Investor Trading Costs 2008

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

3 168 1 35

11 248798 2 121228

0 60751 0 39529

135 063 140 019 137 023 122 066 122 021 122 023

192 101 191 033 194 037 201 104 201 033 201 035

Large Growth 1 19 3 39760 0 7858 128 047 128 017 128 013 183 080 183 030 183 026 Large Value 28 26315 3719 049 019 041 085 033 068 Mid-Cap Blend 19 16971 1365 079 022 024 112 045 058 Mid-Cap Growth 1 17 6 6346 0 48 155 078 155 018 155 020 193 131 193 037 193 034 Mid-Cap Value 14 10630 603 070 018 106 110 032 164 Small Blend 15 16205 6674 064 017 019 100 026 029 Small Growth 9 5198 740 062 019 016 100 031 028 Small Value 12 6143 215 063 021 021 100 033 032

US EQUITY SECTORS Commodities Industrial Metals

1 214 1

3 70350 58

0 15814 2 526 085 526 036 526 037 056 056 056

562 126 562 057 562 063 082 082 082

Communications 7 1115 19 072 041 035 108 064 056 Consumer Cyclical 15 2503 542 080 028 027 123 048 046 Consumer Defensive 10 3666 138 056 026 025 093 051 052 Energy Limited Partnership Equity Energy 17 9112 7371 067 026 041 107 048 063 Equity Precious Metals 2 1794 168 099 025 025 139 044 044 Financial 21 12328 4450 084 038 038 138 076 075 Health 40 7545 290 092 025 024 136 047 049 Industrials 16 3356 434 081 026 022 126 045 040 Miscellaneous Sector 23 5487 81 081 052 072 109 072 095 Natural Resources 19 6789 787 138 078 032 156 076 050 Real Estate 1 11 3 7417 0 1060 526 096 526 030 526 036 562 162 562 053 562 062 Technology 23 5757 213 071 025 024 117 041 039 Utilities 9 3425 260 064 025 021 097 040 033

INTERNATIONAL EQUITY China Region

0 154 8

0 135999 10999

0 13543 1422

136 116 137 190 208 231

190 176 205 258 286 317

Diversified Emerging Mkts 14 29704 2808 120 106 117 159 161 183 Diversified PacificAsia 2 1558 14 024 029 029 038 045 045 Europe Stock 17 6677 1026 146 075 098 216 116 155 Foreign Large Blend 10 43781 1163 119 109 111 167 169 173 Foreign Large Growth 3 1256 13 125 109 110 177 164 164 Foreign Large Value 13 2187 26 115 110 111 164 165 167 Foreign SmallMid Blend 5 450 8 119 127 131 176 182 186 Foreign SmallMid Value 4 604 6 117 115 115 165 164 164 Global Real Estate 11 1035 14 153 121 125 206 173 176 India Equity 2 247 11 153 174 176 197 230 232 Japan Stock 9 7816 4843 160 163 154 224 239 225 Latin America Stock 4 9599 1222 138 058 065 201 111 128 Miscellaneous Region 30 15103 886 127 123 131 186 187 198 PacificAsia ex-Japan Stk 10 3539 50 176 173 172 242 245 240 World Stock 12 1443 31 125 061 065 162 087 088

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

Exhibit 2-1 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Asset-Weighted (AW) within overlapping fund categories

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 121 102 059 055 049 048 016 011 013 012 012 051 081 066 032 024 024 026 014 011

040 043

Large Growth 111 058 049 041 142 049 033 021 018 013 053 Large Value 066 075 047 031 020 013 018 016 014 033 Mid-Cap Blend 040 027 012 008 008 010 012 017 Mid-Cap Growth 137 056 065 044 040 028 006 054 Mid-Cap Value 009 006 008 008 009 008 Small Blend 020 019 025 021 021 Small Growth 035 029 032 Small Value

US EQUITY SECTORS Commodities Industrial Metals

496 107 059 023 019 010 008 006 009 007 074

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 035 053 -002 027 Equity Energy 019 011 008 004 004 009 Equity Precious Metals

Financial 050 154 017 074 Health 029 032 051 017 032 Industrials Miscellaneous Sector 010 002 000 005 009 003 005 Natural Resources Real Estate 496 172 030 023 020 015 014 023 022 016 083 Technology 056 101 038 029 033 013 045 Utilities 018 020 021 020

INTERNATIONAL EQUITY

China Region -018 007 011 -002 -012 -013 025 026

-015 007 004 031 003 007

Diversified Emerging Mkts 010 016 013 Diversified PacificAsia 035 037 036 Europe Stock 031 030 030 Foreign Large Blend 048 033 009 014 036 053 022 031 Foreign Large Growth -024 -027 -006 002 010 010 006 001 -004 Foreign Large Value 006 005 012 008 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -004 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 017 096 056 PacificAsia ex-Japan Stk

World Stock -020 -008 005 005 -006 -005 022 047 005

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 159 169 089 089 076 052 021 015 018 013 014 078 136 094 036 034 035 051 014 012

055 066

Large Growth 152 085 077 071 127 080 053 028 020 016 071 Large Value 098 144 069 045 041 020 027 020 019 054 Mid-Cap Blend 058 045 012 010 007 010 015 022 Mid-Cap Growth 155 087 109 075 064 037 007 076 Mid-Cap Value 008 007 010 007 009 008 Small Blend 027 025 035 028 029 Small Growth 062 044 053 Small Value

US EQUITY SECTORS Commodities Industrial Metals

509 177 089 049 018 004 006 005 009 006 087

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 024 065 -007 026 Equity Energy 012 003 004 003 001 005 Equity Precious Metals

Financial 063 224 007 098 Health 042 047 078 022 047 Industrials Miscellaneous Sector 021 012 006 015 028 013 016 Natural Resources Real Estate 509 302 048 049 031 022 022 038 031 023 107 Technology 081 151 060 043 053 014 067 Utilities 024 030 034 029

INTERNATIONAL EQUITY

China Region -015 016 019 008 -014 -017 016 022

-010 009 030 043 004 018

Diversified Emerging Mkts -020 -006 -013 Diversified PacificAsia 026 024 025 Europe Stock 011 009 010 Foreign Large Blend 068 038 016 017 044 036 027 035 Foreign Large Growth -028 -030 -002 018 010 018 021 -005 000 Foreign Large Value -001 -001 009 002 Foreign SmallMid Blend

Foreign SmallMid Value -010 -009 002 -006 Global Real Estate 007 001 060 023 India Equity Japan Stock Latin America Stock Miscellaneous Region 006 104 055 PacificAsia ex-Japan Stk

World Stock -018 002 017 020 -003 -005 034 039 011

Exhibit 2-2 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Volume-Weighted (VW) within overlapping fund categories

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 160 098 091 077 049 022 021 019 013 013 057 Large Blend 167 079 136 097 026 032 032 039 015 011 063 Large Growth 157 086 073 071 127 083 060 014 016 017 070 Large Value 111 144 070 045 043 029 032 021 018 057 Mid-Cap Blend 059 044 012 012 010 009 015 023 Mid-Cap Growth 159 088 108 075 063 036 006 076 Mid-Cap Value 007 008 011 008 010 009 Small Blend 027 025 039 027 029 Small Growth 057 049 053 Small Value

US EQUITY SECTORS 500 183 093 049 017 007 014 005 017 010 089 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 024 065 -003 029 Equity Energy 014 004 006 001 002 005 Equity Precious Metals

Financial 065 226 007 100 Health 042 046 077 023 047 Industrials Miscellaneous Sector 014 -002 -004 006 020 -006 005 Natural Resources Real Estate 500 301 046 049 030 022 022 038 028 023 106 Technology 081 152 058 044 053 014 067 Utilities 025 030 034 030

INTERNATIONAL EQUITY -014 018 010 -011 -025 -031 -005 004 -007 China Region -012 004 021 034 012 Diversified Emerging Mkts -030 -010 -020 Diversified PacificAsia 030 025 027 Europe Stock 011 008 009 Foreign Large Blend 059 039 008 010 030 017 026 027 Foreign Large Growth -026 -027 -002 021 011 018 022 -004 002 Foreign Large Value 014 003 008 008 Foreign SmallMid Blend

Foreign SmallMid Value -009 -010 001 -006 Global Real Estate 008 000 059 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 001 100 050 PacificAsia ex-Japan Stk

World Stock -018 004 019 013 -001 -005 033 025 009

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - VW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 116 064 056 051 048 017 016 014 012 012 041 Large Blend 100 052 082 070 025 024 021 023 014 011 042 Large Growth 115 060 047 041 136 057 037 011 015 014 053 Large Value 069 076 047 031 021 019 022 016 013 035 Mid-Cap Blend 040 027 011 013 009 009 012 017 Mid-Cap Growth 135 056 065 044 039 027 005 053 Mid-Cap Value 008 006 009 009 009 008 Small Blend 021 019 028 021 022 Small Growth 032 031 031 Small Value

US EQUITY SECTORS 490 111 061 024 020 013 012 006 016 011 076 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 035 053 002 030 Equity Energy 020 012 009 005 005 010 Equity Precious Metals

Financial 052 156 017 075 Health 029 032 050 017 032 Industrials Miscellaneous Sector 005 -009 -008 -002 003 -010 -003 Natural Resources Real Estate 490 171 030 024 020 015 013 023 022 015 082 Technology 056 102 038 029 032 012 045 Utilities 019 020 021 020

INTERNATIONAL EQUITY -016 010 004 -015 -018 -023 015 014 -004 China Region -017 003 -002 025 002 Diversified Emerging Mkts 004 015 009 Diversified PacificAsia 037 038 037 Europe Stock 030 029 030 Foreign Large Blend 042 033 004 010 029 048 022 027 Foreign Large Growth -024 -026 -006 000 010 009 007 -001 -004 Foreign Large Value 016 006 011 011 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -005 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 013 093 053 PacificAsia ex-Japan Stk

World Stock -019 -006 005 001 -004 -005 021 035 004

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - VW

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 6 7 8 9 10 11 12 13

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-5 Measures of ETF Investor Trading Costs 2013

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

11 228 4 52

254 602855 57 283095

5 30466 1 21345

030 011 019 003 020 003 026 013 027 003 026 002

043 015 026 004 026 004 036 017 038 004 036 003

Large Growth 2 24 12 79539 0 2590 059 008 052 003 060 003 086 011 084 004 087 004 Large Value 2 46 22 84819 0 1441 027 010 023 004 025 003 049 013 046 004 047 004 Mid-Cap Blend 1 27 42 50116 1 756 016 012 016 004 016 004 018 017 018 005 018 006 Mid-Cap Growth 15 11764 65 012 004 004 017 005 005 Mid-Cap Value 1 15 118 24542 2 133 012 009 012 004 012 004 013 011 013 005 013 005 Small Blend 1 23 3 45089 0 3853 025 014 025 005 025 005 033 019 033 006 033 006 Small Growth 11 11220 155 012 005 005 016 006 006 Small Value 15 12672 129 012 005 005 015 006 006

US EQUITY SECTORS Commodities Industrial Metals

3 294 3 389 193811

301 4 8170

4 021 028 017 007 017 006 102 024 025

025 032 011 009 013 007 107 031 033

Communications 9 1761 23 034 011 010 039 014 012 Consumer Cyclical 19 13857 930 018 005 004 022 007 006 Consumer Defensive 14 9930 372 026 005 003 031 006 004 Energy Limited Partnership 7 6638 57 019 010 010 019 014 014 Equity Energy 1 25 348 17187 3 1375 016 022 016 005 016 004 009 025 009 006 009 005 Equity Precious Metals 13 9222 901 060 023 014 073 031 020 Financial 37 23390 1069 025 005 004 030 006 005 Health 25 20261 588 015 005 004 017 006 005 Industrials 21 9798 522 020 005 004 023 006 005 Miscellaneous Sector 1 27 13 3594 0 33 027 045 027 025 027 036 039 047 039 027 039 041 Natural Resources 33 17259 469 038 014 007 040 015 008 Real Estate 1 16 28 30178 0 1003 020 014 020 005 020 005 028 018 028 006 028 007 Technology 31 21882 392 023 005 005 027 006 007 Utilities 14 8552 431 028 004 004 033 005 004

INTERNATIONAL EQUITY China Region

6 303 1 28

56 328958 2 15130

1 8997 0 897

034 063 034 045 031 052 045 073 045 059 045 061

050 070 049 056 045 066 065 084 065 075 065 078

Diversified Emerging Mkts 55 113931 3537 070 048 052 075 061 069 Diversified PacificAsia 3 2308 25 040 020 020 048 023 023 Europe Stock 11 16565 335 049 027 028 043 034 035 Foreign Large Blend 1 18 16 77427 0 1304 042 046 042 033 042 038 052 041 052 036 052 044 Foreign Large Growth 1 3 8 1944 0 10 043 045 043 041 043 043 065 047 065 046 065 044 Foreign Large Value 19 7770 50 052 045 046 044 047 046 Foreign SmallMid Blend 7 4883 32 061 052 052 051 048 050 Foreign SmallMid Value 6 860 6 071 063 072 066 059 074 Global Real Estate 11 7520 53 045 044 044 050 050 049 India Equity 9 2195 92 085 078 077 113 105 105 Japan Stock 11 19728 725 091 091 090 111 113 112 Latin America Stock 16 8492 749 048 038 041 055 050 055 Miscellaneous Region 79 32234 990 063 047 048 075 063 065 PacificAsia ex-Japan Stk 13 7314 92 079 052 054 103 070 072 World Stock 3 14 30 10656 1 100 025 045 027 022 025 023 039 047 042 023 037 024

Exhibit 1-6 Measures of ETF Investor Trading Costs 2012

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 237 4 50

57 434426 37 199782

1 30277 1 20543

059 018 052 004 051 003 032 016 035 003 028 003

064 025 056 005 053 004 037 021 040 004 030 004

Large Growth 2 32 9 66776 0 3060 141 016 146 003 139 003 131 022 131 004 131 004 Large Value 1 46 3 59881 0 1165 035 017 035 004 035 003 050 022 050 005 050 004 Mid-Cap Blend 1 28 8 33654 0 786 031 016 031 004 031 005 050 023 050 006 050 006 Mid-Cap Growth 14 8978 67 020 004 004 033 005 005 Mid-Cap Value 13 18493 132 013 004 004 018 006 005 Small Blend 19 29985 1029 017 006 006 024 007 007 Small Growth 16 7974 3371 027 006 005 047 008 007 Small Value 19 8903 124 025 006 006 035 008 008

US EQUITY SECTORS Commodities Industrial Metals

3 294 3 100 146358

347 2 7199

3 029 030 026 008 026 006 070 028 028

035 035 026 010 024 008 162 039 040

Communications 9 1669 14 037 014 014 044 017 016 Consumer Cyclical 19 8276 777 020 006 006 024 007 007 Consumer Defensive 15 8318 228 028 005 004 035 006 005 Energy Limited Partnership 3 3532 34 021 010 010 020 011 012 Equity Energy 1 27 70 15405 2 1381 025 028 025 006 025 005 020 033 020 008 020 006 Equity Precious Metals 13 11920 746 059 017 011 067 022 014 Financial 35 12379 1331 027 006 007 037 008 009 Health 25 12513 323 016 006 005 021 008 007 Industrials 24 5497 742 029 006 004 033 007 005 Miscellaneous Sector 1 25 7 2929 0 20 037 043 037 027 037 032 049 037 049 027 049 035 Natural Resources 35 14239 537 037 014 006 043 016 008 Real Estate 1 17 23 23279 0 359 025 015 025 005 025 005 037 020 037 006 037 007 Technology 31 17304 399 026 005 010 030 007 011 Utilities 13 8752 305 030 005 005 036 007 006

INTERNATIONAL EQUITY China Region

5 278 25

40 250891 12117

0 8093 752 040 066 045 041 042 055 095 066 075

052 071 057 049 053 065 103 085 090

Diversified Emerging Mkts 50 101336 1420 074 040 041 073 049 047 Diversified PacificAsia 3 1594 12 041 012 013 041 015 015 Europe Stock 10 5746 115 056 033 029 054 037 031 Foreign Large Blend 1 18 14 56331 0 402 068 066 068 035 068 035 076 054 076 038 076 037 Foreign Large Growth 1 4 7 1356 0 840 034 039 034 039 034 039 045 045 045 047 045 047 Foreign Large Value 16 4784 35 065 046 046 075 050 052 Foreign SmallMid Blend 7 3336 12 057 045 046 061 046 045 Foreign SmallMid Value 5 586 2 063 051 051 075 059 060 Global Real Estate 10 4903 48 047 045 048 052 049 055 India Equity 9 1758 106 072 064 066 085 078 081 Japan Stock 10 6012 56 068 056 056 086 074 074 Latin America Stock 17 11385 542 050 029 039 061 040 049 Miscellaneous Region 69 26881 1308 063 047 056 071 060 067 PacificAsia ex-Japan Stk 12 6191 2410 068 057 071 083 073 085 World Stock 3 13 19 6575 0 31 033 054 034 029 032 026 047 050 047 030 045 026

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-7 Measures of ETF Investor Trading Costs 2011

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 227 2 51

64 364536 19 166662

1 40351 0 28288

058 025 053 004 054 004 063 023 070 004 073 003

091 040 082 007 084 007 092 036 100 006 104 007

Large Growth 3 30 34 52494 1 4002 065 026 045 004 044 003 108 039 076 005 075 004 Large Value 1 39 3 44248 0 1353 051 017 051 004 051 004 075 025 075 006 075 005 Mid-Cap Blend 1 28 5 32903 0 786 045 025 045 005 045 005 066 043 066 008 066 007 Mid-Cap Growth 1 14 3 8923 0 100 049 028 049 005 049 005 081 043 081 007 081 007 Mid-Cap Value 13 14109 126 015 005 005 024 007 006 Small Blend 19 28441 5329 025 007 007 040 010 009 Small Growth 15 8214 216 048 008 008 078 012 011 Small Value 18 8542 152 037 008 009 057 012 012

US EQUITY SECTORS Commodities Industrial Metals

1 297 2

20 135323 540

0 10757 6 030 033 030 012 030 009 046 044 044

059 047 059 017 059 015 063 061 061

Communications 11 1771 21 037 019 016 056 028 024 Consumer Cyclical 20 5994 1080 031 012 014 052 026 038 Consumer Defensive 15 6341 296 034 007 005 045 010 007 Energy Limited Partnership 1 1187 13 010 010 010 012 012 012 Equity Energy 26 20568 2812 027 007 004 035 010 006 Equity Precious Metals 9 11160 846 047 021 015 059 028 020 Financial 35 11342 1572 037 008 006 054 012 009 Health 27 11121 505 022 009 006 032 014 009 Industrials 25 5840 802 033 007 004 048 010 006 Miscellaneous Sector 24 4600 48 042 036 041 051 043 051 Natural Resources 35 14921 1006 043 020 010 057 026 012 Real Estate 1 17 20 16580 0 714 030 026 030 007 030 007 059 042 059 010 059 009 Technology 36 16200 753 027 010 029 045 016 053 Utilities 14 7159 281 033 006 005 044 008 006

INTERNATIONAL EQUITY China Region

3 231 23

31 244592 13779

1 10827 1049

058 084 062 063 071 075 134 097 101

080 101 084 082 096 098 151 137 145

Diversified Emerging Mkts 34 89996 3989 077 056 067 088 076 093 Diversified PacificAsia 2 1583 10 026 019 019 034 023 023 Europe Stock 10 5235 1398 061 047 095 078 058 112 Foreign Large Blend 1 14 12 53642 0 1378 104 071 104 056 104 062 138 082 138 070 138 079 Foreign Large Growth 1 4 8 1494 0 9 038 071 038 066 038 064 054 082 054 084 054 081 Foreign Large Value 15 3779 33 077 068 070 087 084 084 Foreign SmallMid Blend 7 3459 26 065 067 067 080 082 084 Foreign SmallMid Value 4 679 3 075 072 077 089 091 096 Global Real Estate 10 3220 26 064 070 068 076 083 080 India Equity 7 2013 83 088 082 083 119 114 115 Japan Stock 11 7654 332 087 088 088 116 122 122 Latin America Stock 15 15029 1167 103 067 072 102 066 068 Miscellaneous Region 55 31460 1183 085 071 074 112 098 103 PacificAsia ex-Japan Stk 9 6750 92 089 085 085 123 121 122 World Stock 1 11 11 4820 0 49 033 054 033 041 033 038 047 064 047 045 047 043

Exhibit 1-8 Measures of ETF Investor Trading Costs 2010

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 188 1 46

40 293388 3 134992

0 35642 0 24521

082 019 059 005 059 004 085 025 085 004 085 003

134 030 094 006 097 006 141 039 141 005 141 005

Large Growth 3 22 31 42488 0 4271 085 013 053 004 051 004 133 020 083 006 079 007 Large Value 1 30 2 31778 0 1252 080 011 080 005 080 004 150 016 150 006 150 005 Mid-Cap Blend 22 26794 680 024 005 005 040 008 010 Mid-Cap Growth 1 13 3 6898 0 77 071 017 071 005 071 005 116 030 116 007 116 008 Mid-Cap Value 15 10850 117 017 005 006 025 007 007 Small Blend 18 24921 4384 020 007 007 031 009 008 Small Growth 10 6510 176 021 007 007 031 008 008 Small Value 12 8157 164 016 007 008 023 009 009

US EQUITY SECTORS Commodities Industrial Metals

3 242 1

19 96096 431

0 8173 8 103 035 067 012 068 008 047 047 047

152 050 100 015 103 011 061 061 061

Communications 8 1379 18 044 017 017 059 021 021 Consumer Cyclical 17 4618 915 031 010 008 046 013 010 Consumer Defensive 12 4229 196 033 007 006 051 010 008 Energy Limited Partnership 1 293 10 010 010 010 009 009 009 Equity Energy 21 11680 1304 029 009 007 041 012 009 Equity Precious Metals 8 8262 645 055 018 016 061 024 021 Financial 1 31 3 10377 0 1819 162 045 162 008 162 007 235 070 235 011 235 009 Health 22 7904 337 022 008 007 032 011 010 Industrials 21 5086 575 047 010 006 071 013 009 Miscellaneous Sector 24 4684 43 033 029 032 040 034 039 Natural Resources 29 9936 839 041 019 011 051 024 016 Real Estate 1 13 13 12152 0 915 038 029 038 008 038 009 060 052 060 012 060 014 Technology 1 23 3 10056 0 330 108 024 108 007 108 007 161 034 161 009 161 009 Utilities 11 5010 219 031 007 006 044 011 009

INTERNATIONAL EQUITY China Region

2 197 20

11 206613 15039

0 9127 1297

024 080 024 054 024 060 131 075 079

033 084 033 067 032 076 096 098 103

Diversified Emerging Mkts 23 75141 3629 068 043 046 070 051 058 Diversified PacificAsia 2 1460 9 019 021 021 024 025 025 Europe Stock 11 5053 89 055 041 038 073 054 050 Foreign Large Blend 13 46483 1256 065 053 058 083 065 073 Foreign Large Growth 1 3 6 1377 0 9 034 059 034 058 034 058 047 069 047 075 047 074 Foreign Large Value 13 2921 21 056 058 060 071 075 074 Foreign SmallMid Blend 7 2258 20 062 067 067 068 072 071 Foreign SmallMid Value 4 646 3 069 063 066 080 082 082 Global Real Estate 10 1980 15 065 070 068 071 081 073 India Equity 6 1673 59 083 074 077 079 090 093 Japan Stock 8 5205 227 077 073 073 107 097 096 Latin America Stock 10 14150 1424 133 070 076 060 083 092 Miscellaneous Region 48 23490 940 072 061 061 087 081 081 PacificAsia ex-Japan Stk 8 6620 99 094 068 068 124 091 090 World Stock 1 11 5 3117 0 30 015 114 015 035 015 034 019 116 019 037 019 038

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-9 Measures of ETF Investor Trading Costs 2009

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 173 1 42

20 232818 2 114656

1 34114 0 23503

067 040 068 009 071 008 059 032 059 008 059 007

101 062 103 015 110 012 090 048 090 012 090 011

Large Growth 3 21 9 34388 0 4606 067 032 068 010 068 008 097 049 100 015 100 014 Large Value 1 29 3 24456 0 1704 076 024 076 010 076 007 122 048 122 024 122 011 Mid-Cap Blend 17 18471 766 035 010 009 055 014 015 Mid-Cap Growth 1 16 5 4919 0 82 067 096 067 011 067 011 102 131 102 015 102 015 Mid-Cap Value 14 7979 120 034 011 011 060 015 016 Small Blend 15 16862 3059 037 015 014 059 020 019 Small Growth 9 5096 146 081 014 014 112 018 019 Small Value 10 5991 129 031 018 019 049 024 025

US EQUITY SECTORS Commodities Industrial Metals

3 204 1

10 66859 285

0 8017 7 113 048 128 021 131 018 066 066 066

178 069 207 031 214 026 081 081 081

Communications 7 950 16 049 025 022 065 033 030 Consumer Cyclical 15 2842 682 050 022 016 079 030 022 Consumer Defensive 10 3219 147 035 015 014 057 034 020 Energy Limited Partnership Equity Energy 18 8656 1390 040 014 010 056 018 013 Equity Precious Metals 3 4919 461 059 024 025 081 037 038 Financial 1 24 3 9381 0 2396 072 054 072 021 072 019 096 081 096 033 096 030 Health 20 6696 266 028 014 013 040 020 019 Industrials 17 2856 337 048 020 017 074 027 023 Miscellaneous Sector 24 4289 41 055 046 053 069 059 068 Natural Resources 23 6336 559 056 027 019 070 037 025 Real Estate 1 11 4 6903 0 1291 194 070 194 022 194 023 336 120 336 034 336 035 Technology 1 22 3 6299 0 206 072 042 072 016 072 016 103 063 103 023 103 022 Utilities 9 3229 218 042 015 013 062 024 019

INTERNATIONAL EQUITY China Region

0 175 15

0 139639 13661

0 7155 1162

106 074 077 088 120 125

129 096 103 105 162 167

Diversified Emerging Mkts 17 41629 2631 093 059 061 096 074 078 Diversified PacificAsia 2 1286 12 025 029 029 037 039 039 Europe Stock 17 4452 49 157 053 056 199 068 073 Foreign Large Blend 12 38012 1141 108 069 074 136 088 096 Foreign Large Growth 3 1164 9 082 077 078 108 099 100 Foreign Large Value 13 2258 19 084 081 082 109 103 103 Foreign SmallMid Blend 6 976 13 082 091 087 099 100 092 Foreign SmallMid Value 4 511 3 105 092 094 124 111 112 Global Real Estate 11 1153 9 123 104 105 159 122 125 India Equity 3 588 18 088 108 112 109 136 140 Japan Stock 9 5439 271 126 115 115 164 154 154 Latin America Stock 5 10277 1121 099 050 052 096 075 081 Miscellaneous Region 37 12306 604 095 089 091 114 114 118 PacificAsia ex-Japan Stk 10 4162 66 172 106 106 214 134 134 World Stock 11 1766 27 086 046 049 105 054 056

Exhibit 1-10 Measures of ETF Investor Trading Costs 2008

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

3 168 1 35

11 248798 2 121228

0 60751 0 39529

135 063 140 019 137 023 122 066 122 021 122 023

192 101 191 033 194 037 201 104 201 033 201 035

Large Growth 1 19 3 39760 0 7858 128 047 128 017 128 013 183 080 183 030 183 026 Large Value 28 26315 3719 049 019 041 085 033 068 Mid-Cap Blend 19 16971 1365 079 022 024 112 045 058 Mid-Cap Growth 1 17 6 6346 0 48 155 078 155 018 155 020 193 131 193 037 193 034 Mid-Cap Value 14 10630 603 070 018 106 110 032 164 Small Blend 15 16205 6674 064 017 019 100 026 029 Small Growth 9 5198 740 062 019 016 100 031 028 Small Value 12 6143 215 063 021 021 100 033 032

US EQUITY SECTORS Commodities Industrial Metals

1 214 1

3 70350 58

0 15814 2 526 085 526 036 526 037 056 056 056

562 126 562 057 562 063 082 082 082

Communications 7 1115 19 072 041 035 108 064 056 Consumer Cyclical 15 2503 542 080 028 027 123 048 046 Consumer Defensive 10 3666 138 056 026 025 093 051 052 Energy Limited Partnership Equity Energy 17 9112 7371 067 026 041 107 048 063 Equity Precious Metals 2 1794 168 099 025 025 139 044 044 Financial 21 12328 4450 084 038 038 138 076 075 Health 40 7545 290 092 025 024 136 047 049 Industrials 16 3356 434 081 026 022 126 045 040 Miscellaneous Sector 23 5487 81 081 052 072 109 072 095 Natural Resources 19 6789 787 138 078 032 156 076 050 Real Estate 1 11 3 7417 0 1060 526 096 526 030 526 036 562 162 562 053 562 062 Technology 23 5757 213 071 025 024 117 041 039 Utilities 9 3425 260 064 025 021 097 040 033

INTERNATIONAL EQUITY China Region

0 154 8

0 135999 10999

0 13543 1422

136 116 137 190 208 231

190 176 205 258 286 317

Diversified Emerging Mkts 14 29704 2808 120 106 117 159 161 183 Diversified PacificAsia 2 1558 14 024 029 029 038 045 045 Europe Stock 17 6677 1026 146 075 098 216 116 155 Foreign Large Blend 10 43781 1163 119 109 111 167 169 173 Foreign Large Growth 3 1256 13 125 109 110 177 164 164 Foreign Large Value 13 2187 26 115 110 111 164 165 167 Foreign SmallMid Blend 5 450 8 119 127 131 176 182 186 Foreign SmallMid Value 4 604 6 117 115 115 165 164 164 Global Real Estate 11 1035 14 153 121 125 206 173 176 India Equity 2 247 11 153 174 176 197 230 232 Japan Stock 9 7816 4843 160 163 154 224 239 225 Latin America Stock 4 9599 1222 138 058 065 201 111 128 Miscellaneous Region 30 15103 886 127 123 131 186 187 198 PacificAsia ex-Japan Stk 10 3539 50 176 173 172 242 245 240 World Stock 12 1443 31 125 061 065 162 087 088

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

Exhibit 2-1 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Asset-Weighted (AW) within overlapping fund categories

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 121 102 059 055 049 048 016 011 013 012 012 051 081 066 032 024 024 026 014 011

040 043

Large Growth 111 058 049 041 142 049 033 021 018 013 053 Large Value 066 075 047 031 020 013 018 016 014 033 Mid-Cap Blend 040 027 012 008 008 010 012 017 Mid-Cap Growth 137 056 065 044 040 028 006 054 Mid-Cap Value 009 006 008 008 009 008 Small Blend 020 019 025 021 021 Small Growth 035 029 032 Small Value

US EQUITY SECTORS Commodities Industrial Metals

496 107 059 023 019 010 008 006 009 007 074

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 035 053 -002 027 Equity Energy 019 011 008 004 004 009 Equity Precious Metals

Financial 050 154 017 074 Health 029 032 051 017 032 Industrials Miscellaneous Sector 010 002 000 005 009 003 005 Natural Resources Real Estate 496 172 030 023 020 015 014 023 022 016 083 Technology 056 101 038 029 033 013 045 Utilities 018 020 021 020

INTERNATIONAL EQUITY

China Region -018 007 011 -002 -012 -013 025 026

-015 007 004 031 003 007

Diversified Emerging Mkts 010 016 013 Diversified PacificAsia 035 037 036 Europe Stock 031 030 030 Foreign Large Blend 048 033 009 014 036 053 022 031 Foreign Large Growth -024 -027 -006 002 010 010 006 001 -004 Foreign Large Value 006 005 012 008 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -004 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 017 096 056 PacificAsia ex-Japan Stk

World Stock -020 -008 005 005 -006 -005 022 047 005

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 159 169 089 089 076 052 021 015 018 013 014 078 136 094 036 034 035 051 014 012

055 066

Large Growth 152 085 077 071 127 080 053 028 020 016 071 Large Value 098 144 069 045 041 020 027 020 019 054 Mid-Cap Blend 058 045 012 010 007 010 015 022 Mid-Cap Growth 155 087 109 075 064 037 007 076 Mid-Cap Value 008 007 010 007 009 008 Small Blend 027 025 035 028 029 Small Growth 062 044 053 Small Value

US EQUITY SECTORS Commodities Industrial Metals

509 177 089 049 018 004 006 005 009 006 087

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 024 065 -007 026 Equity Energy 012 003 004 003 001 005 Equity Precious Metals

Financial 063 224 007 098 Health 042 047 078 022 047 Industrials Miscellaneous Sector 021 012 006 015 028 013 016 Natural Resources Real Estate 509 302 048 049 031 022 022 038 031 023 107 Technology 081 151 060 043 053 014 067 Utilities 024 030 034 029

INTERNATIONAL EQUITY

China Region -015 016 019 008 -014 -017 016 022

-010 009 030 043 004 018

Diversified Emerging Mkts -020 -006 -013 Diversified PacificAsia 026 024 025 Europe Stock 011 009 010 Foreign Large Blend 068 038 016 017 044 036 027 035 Foreign Large Growth -028 -030 -002 018 010 018 021 -005 000 Foreign Large Value -001 -001 009 002 Foreign SmallMid Blend

Foreign SmallMid Value -010 -009 002 -006 Global Real Estate 007 001 060 023 India Equity Japan Stock Latin America Stock Miscellaneous Region 006 104 055 PacificAsia ex-Japan Stk

World Stock -018 002 017 020 -003 -005 034 039 011

Exhibit 2-2 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Volume-Weighted (VW) within overlapping fund categories

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 160 098 091 077 049 022 021 019 013 013 057 Large Blend 167 079 136 097 026 032 032 039 015 011 063 Large Growth 157 086 073 071 127 083 060 014 016 017 070 Large Value 111 144 070 045 043 029 032 021 018 057 Mid-Cap Blend 059 044 012 012 010 009 015 023 Mid-Cap Growth 159 088 108 075 063 036 006 076 Mid-Cap Value 007 008 011 008 010 009 Small Blend 027 025 039 027 029 Small Growth 057 049 053 Small Value

US EQUITY SECTORS 500 183 093 049 017 007 014 005 017 010 089 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 024 065 -003 029 Equity Energy 014 004 006 001 002 005 Equity Precious Metals

Financial 065 226 007 100 Health 042 046 077 023 047 Industrials Miscellaneous Sector 014 -002 -004 006 020 -006 005 Natural Resources Real Estate 500 301 046 049 030 022 022 038 028 023 106 Technology 081 152 058 044 053 014 067 Utilities 025 030 034 030

INTERNATIONAL EQUITY -014 018 010 -011 -025 -031 -005 004 -007 China Region -012 004 021 034 012 Diversified Emerging Mkts -030 -010 -020 Diversified PacificAsia 030 025 027 Europe Stock 011 008 009 Foreign Large Blend 059 039 008 010 030 017 026 027 Foreign Large Growth -026 -027 -002 021 011 018 022 -004 002 Foreign Large Value 014 003 008 008 Foreign SmallMid Blend

Foreign SmallMid Value -009 -010 001 -006 Global Real Estate 008 000 059 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 001 100 050 PacificAsia ex-Japan Stk

World Stock -018 004 019 013 -001 -005 033 025 009

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - VW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 116 064 056 051 048 017 016 014 012 012 041 Large Blend 100 052 082 070 025 024 021 023 014 011 042 Large Growth 115 060 047 041 136 057 037 011 015 014 053 Large Value 069 076 047 031 021 019 022 016 013 035 Mid-Cap Blend 040 027 011 013 009 009 012 017 Mid-Cap Growth 135 056 065 044 039 027 005 053 Mid-Cap Value 008 006 009 009 009 008 Small Blend 021 019 028 021 022 Small Growth 032 031 031 Small Value

US EQUITY SECTORS 490 111 061 024 020 013 012 006 016 011 076 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 035 053 002 030 Equity Energy 020 012 009 005 005 010 Equity Precious Metals

Financial 052 156 017 075 Health 029 032 050 017 032 Industrials Miscellaneous Sector 005 -009 -008 -002 003 -010 -003 Natural Resources Real Estate 490 171 030 024 020 015 013 023 022 015 082 Technology 056 102 038 029 032 012 045 Utilities 019 020 021 020

INTERNATIONAL EQUITY -016 010 004 -015 -018 -023 015 014 -004 China Region -017 003 -002 025 002 Diversified Emerging Mkts 004 015 009 Diversified PacificAsia 037 038 037 Europe Stock 030 029 030 Foreign Large Blend 042 033 004 010 029 048 022 027 Foreign Large Growth -024 -026 -006 000 010 009 007 -001 -004 Foreign Large Value 016 006 011 011 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -005 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 013 093 053 PacificAsia ex-Japan Stk

World Stock -019 -006 005 001 -004 -005 021 035 004

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - VW

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-7 Measures of ETF Investor Trading Costs 2011

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

8 227 2 51

64 364536 19 166662

1 40351 0 28288

058 025 053 004 054 004 063 023 070 004 073 003

091 040 082 007 084 007 092 036 100 006 104 007

Large Growth 3 30 34 52494 1 4002 065 026 045 004 044 003 108 039 076 005 075 004 Large Value 1 39 3 44248 0 1353 051 017 051 004 051 004 075 025 075 006 075 005 Mid-Cap Blend 1 28 5 32903 0 786 045 025 045 005 045 005 066 043 066 008 066 007 Mid-Cap Growth 1 14 3 8923 0 100 049 028 049 005 049 005 081 043 081 007 081 007 Mid-Cap Value 13 14109 126 015 005 005 024 007 006 Small Blend 19 28441 5329 025 007 007 040 010 009 Small Growth 15 8214 216 048 008 008 078 012 011 Small Value 18 8542 152 037 008 009 057 012 012

US EQUITY SECTORS Commodities Industrial Metals

1 297 2

20 135323 540

0 10757 6 030 033 030 012 030 009 046 044 044

059 047 059 017 059 015 063 061 061

Communications 11 1771 21 037 019 016 056 028 024 Consumer Cyclical 20 5994 1080 031 012 014 052 026 038 Consumer Defensive 15 6341 296 034 007 005 045 010 007 Energy Limited Partnership 1 1187 13 010 010 010 012 012 012 Equity Energy 26 20568 2812 027 007 004 035 010 006 Equity Precious Metals 9 11160 846 047 021 015 059 028 020 Financial 35 11342 1572 037 008 006 054 012 009 Health 27 11121 505 022 009 006 032 014 009 Industrials 25 5840 802 033 007 004 048 010 006 Miscellaneous Sector 24 4600 48 042 036 041 051 043 051 Natural Resources 35 14921 1006 043 020 010 057 026 012 Real Estate 1 17 20 16580 0 714 030 026 030 007 030 007 059 042 059 010 059 009 Technology 36 16200 753 027 010 029 045 016 053 Utilities 14 7159 281 033 006 005 044 008 006

INTERNATIONAL EQUITY China Region

3 231 23

31 244592 13779

1 10827 1049

058 084 062 063 071 075 134 097 101

080 101 084 082 096 098 151 137 145

Diversified Emerging Mkts 34 89996 3989 077 056 067 088 076 093 Diversified PacificAsia 2 1583 10 026 019 019 034 023 023 Europe Stock 10 5235 1398 061 047 095 078 058 112 Foreign Large Blend 1 14 12 53642 0 1378 104 071 104 056 104 062 138 082 138 070 138 079 Foreign Large Growth 1 4 8 1494 0 9 038 071 038 066 038 064 054 082 054 084 054 081 Foreign Large Value 15 3779 33 077 068 070 087 084 084 Foreign SmallMid Blend 7 3459 26 065 067 067 080 082 084 Foreign SmallMid Value 4 679 3 075 072 077 089 091 096 Global Real Estate 10 3220 26 064 070 068 076 083 080 India Equity 7 2013 83 088 082 083 119 114 115 Japan Stock 11 7654 332 087 088 088 116 122 122 Latin America Stock 15 15029 1167 103 067 072 102 066 068 Miscellaneous Region 55 31460 1183 085 071 074 112 098 103 PacificAsia ex-Japan Stk 9 6750 92 089 085 085 123 121 122 World Stock 1 11 11 4820 0 49 033 054 033 041 033 038 047 064 047 045 047 043

Exhibit 1-8 Measures of ETF Investor Trading Costs 2010

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 188 1 46

40 293388 3 134992

0 35642 0 24521

082 019 059 005 059 004 085 025 085 004 085 003

134 030 094 006 097 006 141 039 141 005 141 005

Large Growth 3 22 31 42488 0 4271 085 013 053 004 051 004 133 020 083 006 079 007 Large Value 1 30 2 31778 0 1252 080 011 080 005 080 004 150 016 150 006 150 005 Mid-Cap Blend 22 26794 680 024 005 005 040 008 010 Mid-Cap Growth 1 13 3 6898 0 77 071 017 071 005 071 005 116 030 116 007 116 008 Mid-Cap Value 15 10850 117 017 005 006 025 007 007 Small Blend 18 24921 4384 020 007 007 031 009 008 Small Growth 10 6510 176 021 007 007 031 008 008 Small Value 12 8157 164 016 007 008 023 009 009

US EQUITY SECTORS Commodities Industrial Metals

3 242 1

19 96096 431

0 8173 8 103 035 067 012 068 008 047 047 047

152 050 100 015 103 011 061 061 061

Communications 8 1379 18 044 017 017 059 021 021 Consumer Cyclical 17 4618 915 031 010 008 046 013 010 Consumer Defensive 12 4229 196 033 007 006 051 010 008 Energy Limited Partnership 1 293 10 010 010 010 009 009 009 Equity Energy 21 11680 1304 029 009 007 041 012 009 Equity Precious Metals 8 8262 645 055 018 016 061 024 021 Financial 1 31 3 10377 0 1819 162 045 162 008 162 007 235 070 235 011 235 009 Health 22 7904 337 022 008 007 032 011 010 Industrials 21 5086 575 047 010 006 071 013 009 Miscellaneous Sector 24 4684 43 033 029 032 040 034 039 Natural Resources 29 9936 839 041 019 011 051 024 016 Real Estate 1 13 13 12152 0 915 038 029 038 008 038 009 060 052 060 012 060 014 Technology 1 23 3 10056 0 330 108 024 108 007 108 007 161 034 161 009 161 009 Utilities 11 5010 219 031 007 006 044 011 009

INTERNATIONAL EQUITY China Region

2 197 20

11 206613 15039

0 9127 1297

024 080 024 054 024 060 131 075 079

033 084 033 067 032 076 096 098 103

Diversified Emerging Mkts 23 75141 3629 068 043 046 070 051 058 Diversified PacificAsia 2 1460 9 019 021 021 024 025 025 Europe Stock 11 5053 89 055 041 038 073 054 050 Foreign Large Blend 13 46483 1256 065 053 058 083 065 073 Foreign Large Growth 1 3 6 1377 0 9 034 059 034 058 034 058 047 069 047 075 047 074 Foreign Large Value 13 2921 21 056 058 060 071 075 074 Foreign SmallMid Blend 7 2258 20 062 067 067 068 072 071 Foreign SmallMid Value 4 646 3 069 063 066 080 082 082 Global Real Estate 10 1980 15 065 070 068 071 081 073 India Equity 6 1673 59 083 074 077 079 090 093 Japan Stock 8 5205 227 077 073 073 107 097 096 Latin America Stock 10 14150 1424 133 070 076 060 083 092 Miscellaneous Region 48 23490 940 072 061 061 087 081 081 PacificAsia ex-Japan Stk 8 6620 99 094 068 068 124 091 090 World Stock 1 11 5 3117 0 30 015 114 015 035 015 034 019 116 019 037 019 038

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-9 Measures of ETF Investor Trading Costs 2009

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 173 1 42

20 232818 2 114656

1 34114 0 23503

067 040 068 009 071 008 059 032 059 008 059 007

101 062 103 015 110 012 090 048 090 012 090 011

Large Growth 3 21 9 34388 0 4606 067 032 068 010 068 008 097 049 100 015 100 014 Large Value 1 29 3 24456 0 1704 076 024 076 010 076 007 122 048 122 024 122 011 Mid-Cap Blend 17 18471 766 035 010 009 055 014 015 Mid-Cap Growth 1 16 5 4919 0 82 067 096 067 011 067 011 102 131 102 015 102 015 Mid-Cap Value 14 7979 120 034 011 011 060 015 016 Small Blend 15 16862 3059 037 015 014 059 020 019 Small Growth 9 5096 146 081 014 014 112 018 019 Small Value 10 5991 129 031 018 019 049 024 025

US EQUITY SECTORS Commodities Industrial Metals

3 204 1

10 66859 285

0 8017 7 113 048 128 021 131 018 066 066 066

178 069 207 031 214 026 081 081 081

Communications 7 950 16 049 025 022 065 033 030 Consumer Cyclical 15 2842 682 050 022 016 079 030 022 Consumer Defensive 10 3219 147 035 015 014 057 034 020 Energy Limited Partnership Equity Energy 18 8656 1390 040 014 010 056 018 013 Equity Precious Metals 3 4919 461 059 024 025 081 037 038 Financial 1 24 3 9381 0 2396 072 054 072 021 072 019 096 081 096 033 096 030 Health 20 6696 266 028 014 013 040 020 019 Industrials 17 2856 337 048 020 017 074 027 023 Miscellaneous Sector 24 4289 41 055 046 053 069 059 068 Natural Resources 23 6336 559 056 027 019 070 037 025 Real Estate 1 11 4 6903 0 1291 194 070 194 022 194 023 336 120 336 034 336 035 Technology 1 22 3 6299 0 206 072 042 072 016 072 016 103 063 103 023 103 022 Utilities 9 3229 218 042 015 013 062 024 019

INTERNATIONAL EQUITY China Region

0 175 15

0 139639 13661

0 7155 1162

106 074 077 088 120 125

129 096 103 105 162 167

Diversified Emerging Mkts 17 41629 2631 093 059 061 096 074 078 Diversified PacificAsia 2 1286 12 025 029 029 037 039 039 Europe Stock 17 4452 49 157 053 056 199 068 073 Foreign Large Blend 12 38012 1141 108 069 074 136 088 096 Foreign Large Growth 3 1164 9 082 077 078 108 099 100 Foreign Large Value 13 2258 19 084 081 082 109 103 103 Foreign SmallMid Blend 6 976 13 082 091 087 099 100 092 Foreign SmallMid Value 4 511 3 105 092 094 124 111 112 Global Real Estate 11 1153 9 123 104 105 159 122 125 India Equity 3 588 18 088 108 112 109 136 140 Japan Stock 9 5439 271 126 115 115 164 154 154 Latin America Stock 5 10277 1121 099 050 052 096 075 081 Miscellaneous Region 37 12306 604 095 089 091 114 114 118 PacificAsia ex-Japan Stk 10 4162 66 172 106 106 214 134 134 World Stock 11 1766 27 086 046 049 105 054 056

Exhibit 1-10 Measures of ETF Investor Trading Costs 2008

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

3 168 1 35

11 248798 2 121228

0 60751 0 39529

135 063 140 019 137 023 122 066 122 021 122 023

192 101 191 033 194 037 201 104 201 033 201 035

Large Growth 1 19 3 39760 0 7858 128 047 128 017 128 013 183 080 183 030 183 026 Large Value 28 26315 3719 049 019 041 085 033 068 Mid-Cap Blend 19 16971 1365 079 022 024 112 045 058 Mid-Cap Growth 1 17 6 6346 0 48 155 078 155 018 155 020 193 131 193 037 193 034 Mid-Cap Value 14 10630 603 070 018 106 110 032 164 Small Blend 15 16205 6674 064 017 019 100 026 029 Small Growth 9 5198 740 062 019 016 100 031 028 Small Value 12 6143 215 063 021 021 100 033 032

US EQUITY SECTORS Commodities Industrial Metals

1 214 1

3 70350 58

0 15814 2 526 085 526 036 526 037 056 056 056

562 126 562 057 562 063 082 082 082

Communications 7 1115 19 072 041 035 108 064 056 Consumer Cyclical 15 2503 542 080 028 027 123 048 046 Consumer Defensive 10 3666 138 056 026 025 093 051 052 Energy Limited Partnership Equity Energy 17 9112 7371 067 026 041 107 048 063 Equity Precious Metals 2 1794 168 099 025 025 139 044 044 Financial 21 12328 4450 084 038 038 138 076 075 Health 40 7545 290 092 025 024 136 047 049 Industrials 16 3356 434 081 026 022 126 045 040 Miscellaneous Sector 23 5487 81 081 052 072 109 072 095 Natural Resources 19 6789 787 138 078 032 156 076 050 Real Estate 1 11 3 7417 0 1060 526 096 526 030 526 036 562 162 562 053 562 062 Technology 23 5757 213 071 025 024 117 041 039 Utilities 9 3425 260 064 025 021 097 040 033

INTERNATIONAL EQUITY China Region

0 154 8

0 135999 10999

0 13543 1422

136 116 137 190 208 231

190 176 205 258 286 317

Diversified Emerging Mkts 14 29704 2808 120 106 117 159 161 183 Diversified PacificAsia 2 1558 14 024 029 029 038 045 045 Europe Stock 17 6677 1026 146 075 098 216 116 155 Foreign Large Blend 10 43781 1163 119 109 111 167 169 173 Foreign Large Growth 3 1256 13 125 109 110 177 164 164 Foreign Large Value 13 2187 26 115 110 111 164 165 167 Foreign SmallMid Blend 5 450 8 119 127 131 176 182 186 Foreign SmallMid Value 4 604 6 117 115 115 165 164 164 Global Real Estate 11 1035 14 153 121 125 206 173 176 India Equity 2 247 11 153 174 176 197 230 232 Japan Stock 9 7816 4843 160 163 154 224 239 225 Latin America Stock 4 9599 1222 138 058 065 201 111 128 Miscellaneous Region 30 15103 886 127 123 131 186 187 198 PacificAsia ex-Japan Stk 10 3539 50 176 173 172 242 245 240 World Stock 12 1443 31 125 061 065 162 087 088

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

Exhibit 2-1 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Asset-Weighted (AW) within overlapping fund categories

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 121 102 059 055 049 048 016 011 013 012 012 051 081 066 032 024 024 026 014 011

040 043

Large Growth 111 058 049 041 142 049 033 021 018 013 053 Large Value 066 075 047 031 020 013 018 016 014 033 Mid-Cap Blend 040 027 012 008 008 010 012 017 Mid-Cap Growth 137 056 065 044 040 028 006 054 Mid-Cap Value 009 006 008 008 009 008 Small Blend 020 019 025 021 021 Small Growth 035 029 032 Small Value

US EQUITY SECTORS Commodities Industrial Metals

496 107 059 023 019 010 008 006 009 007 074

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 035 053 -002 027 Equity Energy 019 011 008 004 004 009 Equity Precious Metals

Financial 050 154 017 074 Health 029 032 051 017 032 Industrials Miscellaneous Sector 010 002 000 005 009 003 005 Natural Resources Real Estate 496 172 030 023 020 015 014 023 022 016 083 Technology 056 101 038 029 033 013 045 Utilities 018 020 021 020

INTERNATIONAL EQUITY

China Region -018 007 011 -002 -012 -013 025 026

-015 007 004 031 003 007

Diversified Emerging Mkts 010 016 013 Diversified PacificAsia 035 037 036 Europe Stock 031 030 030 Foreign Large Blend 048 033 009 014 036 053 022 031 Foreign Large Growth -024 -027 -006 002 010 010 006 001 -004 Foreign Large Value 006 005 012 008 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -004 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 017 096 056 PacificAsia ex-Japan Stk

World Stock -020 -008 005 005 -006 -005 022 047 005

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 159 169 089 089 076 052 021 015 018 013 014 078 136 094 036 034 035 051 014 012

055 066

Large Growth 152 085 077 071 127 080 053 028 020 016 071 Large Value 098 144 069 045 041 020 027 020 019 054 Mid-Cap Blend 058 045 012 010 007 010 015 022 Mid-Cap Growth 155 087 109 075 064 037 007 076 Mid-Cap Value 008 007 010 007 009 008 Small Blend 027 025 035 028 029 Small Growth 062 044 053 Small Value

US EQUITY SECTORS Commodities Industrial Metals

509 177 089 049 018 004 006 005 009 006 087

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 024 065 -007 026 Equity Energy 012 003 004 003 001 005 Equity Precious Metals

Financial 063 224 007 098 Health 042 047 078 022 047 Industrials Miscellaneous Sector 021 012 006 015 028 013 016 Natural Resources Real Estate 509 302 048 049 031 022 022 038 031 023 107 Technology 081 151 060 043 053 014 067 Utilities 024 030 034 029

INTERNATIONAL EQUITY

China Region -015 016 019 008 -014 -017 016 022

-010 009 030 043 004 018

Diversified Emerging Mkts -020 -006 -013 Diversified PacificAsia 026 024 025 Europe Stock 011 009 010 Foreign Large Blend 068 038 016 017 044 036 027 035 Foreign Large Growth -028 -030 -002 018 010 018 021 -005 000 Foreign Large Value -001 -001 009 002 Foreign SmallMid Blend

Foreign SmallMid Value -010 -009 002 -006 Global Real Estate 007 001 060 023 India Equity Japan Stock Latin America Stock Miscellaneous Region 006 104 055 PacificAsia ex-Japan Stk

World Stock -018 002 017 020 -003 -005 034 039 011

Exhibit 2-2 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Volume-Weighted (VW) within overlapping fund categories

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 160 098 091 077 049 022 021 019 013 013 057 Large Blend 167 079 136 097 026 032 032 039 015 011 063 Large Growth 157 086 073 071 127 083 060 014 016 017 070 Large Value 111 144 070 045 043 029 032 021 018 057 Mid-Cap Blend 059 044 012 012 010 009 015 023 Mid-Cap Growth 159 088 108 075 063 036 006 076 Mid-Cap Value 007 008 011 008 010 009 Small Blend 027 025 039 027 029 Small Growth 057 049 053 Small Value

US EQUITY SECTORS 500 183 093 049 017 007 014 005 017 010 089 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 024 065 -003 029 Equity Energy 014 004 006 001 002 005 Equity Precious Metals

Financial 065 226 007 100 Health 042 046 077 023 047 Industrials Miscellaneous Sector 014 -002 -004 006 020 -006 005 Natural Resources Real Estate 500 301 046 049 030 022 022 038 028 023 106 Technology 081 152 058 044 053 014 067 Utilities 025 030 034 030

INTERNATIONAL EQUITY -014 018 010 -011 -025 -031 -005 004 -007 China Region -012 004 021 034 012 Diversified Emerging Mkts -030 -010 -020 Diversified PacificAsia 030 025 027 Europe Stock 011 008 009 Foreign Large Blend 059 039 008 010 030 017 026 027 Foreign Large Growth -026 -027 -002 021 011 018 022 -004 002 Foreign Large Value 014 003 008 008 Foreign SmallMid Blend

Foreign SmallMid Value -009 -010 001 -006 Global Real Estate 008 000 059 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 001 100 050 PacificAsia ex-Japan Stk

World Stock -018 004 019 013 -001 -005 033 025 009

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - VW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 116 064 056 051 048 017 016 014 012 012 041 Large Blend 100 052 082 070 025 024 021 023 014 011 042 Large Growth 115 060 047 041 136 057 037 011 015 014 053 Large Value 069 076 047 031 021 019 022 016 013 035 Mid-Cap Blend 040 027 011 013 009 009 012 017 Mid-Cap Growth 135 056 065 044 039 027 005 053 Mid-Cap Value 008 006 009 009 009 008 Small Blend 021 019 028 021 022 Small Growth 032 031 031 Small Value

US EQUITY SECTORS 490 111 061 024 020 013 012 006 016 011 076 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 035 053 002 030 Equity Energy 020 012 009 005 005 010 Equity Precious Metals

Financial 052 156 017 075 Health 029 032 050 017 032 Industrials Miscellaneous Sector 005 -009 -008 -002 003 -010 -003 Natural Resources Real Estate 490 171 030 024 020 015 013 023 022 015 082 Technology 056 102 038 029 032 012 045 Utilities 019 020 021 020

INTERNATIONAL EQUITY -016 010 004 -015 -018 -023 015 014 -004 China Region -017 003 -002 025 002 Diversified Emerging Mkts 004 015 009 Diversified PacificAsia 037 038 037 Europe Stock 030 029 030 Foreign Large Blend 042 033 004 010 029 048 022 027 Foreign Large Growth -024 -026 -006 000 010 009 007 -001 -004 Foreign Large Value 016 006 011 011 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -005 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 013 093 053 PacificAsia ex-Japan Stk

World Stock -019 -006 005 001 -004 -005 021 035 004

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - VW

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

5 2 3 4 5 6 7 8 9 10 11 12 13

Exhibit 1-9 Measures of ETF Investor Trading Costs 2009

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

6 173 1 42

20 232818 2 114656

1 34114 0 23503

067 040 068 009 071 008 059 032 059 008 059 007

101 062 103 015 110 012 090 048 090 012 090 011

Large Growth 3 21 9 34388 0 4606 067 032 068 010 068 008 097 049 100 015 100 014 Large Value 1 29 3 24456 0 1704 076 024 076 010 076 007 122 048 122 024 122 011 Mid-Cap Blend 17 18471 766 035 010 009 055 014 015 Mid-Cap Growth 1 16 5 4919 0 82 067 096 067 011 067 011 102 131 102 015 102 015 Mid-Cap Value 14 7979 120 034 011 011 060 015 016 Small Blend 15 16862 3059 037 015 014 059 020 019 Small Growth 9 5096 146 081 014 014 112 018 019 Small Value 10 5991 129 031 018 019 049 024 025

US EQUITY SECTORS Commodities Industrial Metals

3 204 1

10 66859 285

0 8017 7 113 048 128 021 131 018 066 066 066

178 069 207 031 214 026 081 081 081

Communications 7 950 16 049 025 022 065 033 030 Consumer Cyclical 15 2842 682 050 022 016 079 030 022 Consumer Defensive 10 3219 147 035 015 014 057 034 020 Energy Limited Partnership Equity Energy 18 8656 1390 040 014 010 056 018 013 Equity Precious Metals 3 4919 461 059 024 025 081 037 038 Financial 1 24 3 9381 0 2396 072 054 072 021 072 019 096 081 096 033 096 030 Health 20 6696 266 028 014 013 040 020 019 Industrials 17 2856 337 048 020 017 074 027 023 Miscellaneous Sector 24 4289 41 055 046 053 069 059 068 Natural Resources 23 6336 559 056 027 019 070 037 025 Real Estate 1 11 4 6903 0 1291 194 070 194 022 194 023 336 120 336 034 336 035 Technology 1 22 3 6299 0 206 072 042 072 016 072 016 103 063 103 023 103 022 Utilities 9 3229 218 042 015 013 062 024 019

INTERNATIONAL EQUITY China Region

0 175 15

0 139639 13661

0 7155 1162

106 074 077 088 120 125

129 096 103 105 162 167

Diversified Emerging Mkts 17 41629 2631 093 059 061 096 074 078 Diversified PacificAsia 2 1286 12 025 029 029 037 039 039 Europe Stock 17 4452 49 157 053 056 199 068 073 Foreign Large Blend 12 38012 1141 108 069 074 136 088 096 Foreign Large Growth 3 1164 9 082 077 078 108 099 100 Foreign Large Value 13 2258 19 084 081 082 109 103 103 Foreign SmallMid Blend 6 976 13 082 091 087 099 100 092 Foreign SmallMid Value 4 511 3 105 092 094 124 111 112 Global Real Estate 11 1153 9 123 104 105 159 122 125 India Equity 3 588 18 088 108 112 109 136 140 Japan Stock 9 5439 271 126 115 115 164 154 154 Latin America Stock 5 10277 1121 099 050 052 096 075 081 Miscellaneous Region 37 12306 604 095 089 091 114 114 118 PacificAsia ex-Japan Stk 10 4162 66 172 106 106 214 134 134 World Stock 11 1766 27 086 046 049 105 054 056

Exhibit 1-10 Measures of ETF Investor Trading Costs 2008

Category No of Funds Average

Market Cap ($MM)

Average

Volume ($MM) Avg Abs PremiumDiscount () Volatility of PremiumDiscount () EW AW VW EW AW VW

AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF AETF IETF

US EQUITY DIVERSIFIED Large Blend

3 168 1 35

11 248798 2 121228

0 60751 0 39529

135 063 140 019 137 023 122 066 122 021 122 023

192 101 191 033 194 037 201 104 201 033 201 035

Large Growth 1 19 3 39760 0 7858 128 047 128 017 128 013 183 080 183 030 183 026 Large Value 28 26315 3719 049 019 041 085 033 068 Mid-Cap Blend 19 16971 1365 079 022 024 112 045 058 Mid-Cap Growth 1 17 6 6346 0 48 155 078 155 018 155 020 193 131 193 037 193 034 Mid-Cap Value 14 10630 603 070 018 106 110 032 164 Small Blend 15 16205 6674 064 017 019 100 026 029 Small Growth 9 5198 740 062 019 016 100 031 028 Small Value 12 6143 215 063 021 021 100 033 032

US EQUITY SECTORS Commodities Industrial Metals

1 214 1

3 70350 58

0 15814 2 526 085 526 036 526 037 056 056 056

562 126 562 057 562 063 082 082 082

Communications 7 1115 19 072 041 035 108 064 056 Consumer Cyclical 15 2503 542 080 028 027 123 048 046 Consumer Defensive 10 3666 138 056 026 025 093 051 052 Energy Limited Partnership Equity Energy 17 9112 7371 067 026 041 107 048 063 Equity Precious Metals 2 1794 168 099 025 025 139 044 044 Financial 21 12328 4450 084 038 038 138 076 075 Health 40 7545 290 092 025 024 136 047 049 Industrials 16 3356 434 081 026 022 126 045 040 Miscellaneous Sector 23 5487 81 081 052 072 109 072 095 Natural Resources 19 6789 787 138 078 032 156 076 050 Real Estate 1 11 3 7417 0 1060 526 096 526 030 526 036 562 162 562 053 562 062 Technology 23 5757 213 071 025 024 117 041 039 Utilities 9 3425 260 064 025 021 097 040 033

INTERNATIONAL EQUITY China Region

0 154 8

0 135999 10999

0 13543 1422

136 116 137 190 208 231

190 176 205 258 286 317

Diversified Emerging Mkts 14 29704 2808 120 106 117 159 161 183 Diversified PacificAsia 2 1558 14 024 029 029 038 045 045 Europe Stock 17 6677 1026 146 075 098 216 116 155 Foreign Large Blend 10 43781 1163 119 109 111 167 169 173 Foreign Large Growth 3 1256 13 125 109 110 177 164 164 Foreign Large Value 13 2187 26 115 110 111 164 165 167 Foreign SmallMid Blend 5 450 8 119 127 131 176 182 186 Foreign SmallMid Value 4 604 6 117 115 115 165 164 164 Global Real Estate 11 1035 14 153 121 125 206 173 176 India Equity 2 247 11 153 174 176 197 230 232 Japan Stock 9 7816 4843 160 163 154 224 239 225 Latin America Stock 4 9599 1222 138 058 065 201 111 128 Miscellaneous Region 30 15103 886 127 123 131 186 187 198 PacificAsia ex-Japan Stk 10 3539 50 176 173 172 242 245 240 World Stock 12 1443 31 125 061 065 162 087 088

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF EW means weighting all funds equally AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

Exhibit 2-1 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Asset-Weighted (AW) within overlapping fund categories

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 121 102 059 055 049 048 016 011 013 012 012 051 081 066 032 024 024 026 014 011

040 043

Large Growth 111 058 049 041 142 049 033 021 018 013 053 Large Value 066 075 047 031 020 013 018 016 014 033 Mid-Cap Blend 040 027 012 008 008 010 012 017 Mid-Cap Growth 137 056 065 044 040 028 006 054 Mid-Cap Value 009 006 008 008 009 008 Small Blend 020 019 025 021 021 Small Growth 035 029 032 Small Value

US EQUITY SECTORS Commodities Industrial Metals

496 107 059 023 019 010 008 006 009 007 074

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 035 053 -002 027 Equity Energy 019 011 008 004 004 009 Equity Precious Metals

Financial 050 154 017 074 Health 029 032 051 017 032 Industrials Miscellaneous Sector 010 002 000 005 009 003 005 Natural Resources Real Estate 496 172 030 023 020 015 014 023 022 016 083 Technology 056 101 038 029 033 013 045 Utilities 018 020 021 020

INTERNATIONAL EQUITY

China Region -018 007 011 -002 -012 -013 025 026

-015 007 004 031 003 007

Diversified Emerging Mkts 010 016 013 Diversified PacificAsia 035 037 036 Europe Stock 031 030 030 Foreign Large Blend 048 033 009 014 036 053 022 031 Foreign Large Growth -024 -027 -006 002 010 010 006 001 -004 Foreign Large Value 006 005 012 008 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -004 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 017 096 056 PacificAsia ex-Japan Stk

World Stock -020 -008 005 005 -006 -005 022 047 005

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 159 169 089 089 076 052 021 015 018 013 014 078 136 094 036 034 035 051 014 012

055 066

Large Growth 152 085 077 071 127 080 053 028 020 016 071 Large Value 098 144 069 045 041 020 027 020 019 054 Mid-Cap Blend 058 045 012 010 007 010 015 022 Mid-Cap Growth 155 087 109 075 064 037 007 076 Mid-Cap Value 008 007 010 007 009 008 Small Blend 027 025 035 028 029 Small Growth 062 044 053 Small Value

US EQUITY SECTORS Commodities Industrial Metals

509 177 089 049 018 004 006 005 009 006 087

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 024 065 -007 026 Equity Energy 012 003 004 003 001 005 Equity Precious Metals

Financial 063 224 007 098 Health 042 047 078 022 047 Industrials Miscellaneous Sector 021 012 006 015 028 013 016 Natural Resources Real Estate 509 302 048 049 031 022 022 038 031 023 107 Technology 081 151 060 043 053 014 067 Utilities 024 030 034 029

INTERNATIONAL EQUITY

China Region -015 016 019 008 -014 -017 016 022

-010 009 030 043 004 018

Diversified Emerging Mkts -020 -006 -013 Diversified PacificAsia 026 024 025 Europe Stock 011 009 010 Foreign Large Blend 068 038 016 017 044 036 027 035 Foreign Large Growth -028 -030 -002 018 010 018 021 -005 000 Foreign Large Value -001 -001 009 002 Foreign SmallMid Blend

Foreign SmallMid Value -010 -009 002 -006 Global Real Estate 007 001 060 023 India Equity Japan Stock Latin America Stock Miscellaneous Region 006 104 055 PacificAsia ex-Japan Stk

World Stock -018 002 017 020 -003 -005 034 039 011

Exhibit 2-2 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Volume-Weighted (VW) within overlapping fund categories

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 160 098 091 077 049 022 021 019 013 013 057 Large Blend 167 079 136 097 026 032 032 039 015 011 063 Large Growth 157 086 073 071 127 083 060 014 016 017 070 Large Value 111 144 070 045 043 029 032 021 018 057 Mid-Cap Blend 059 044 012 012 010 009 015 023 Mid-Cap Growth 159 088 108 075 063 036 006 076 Mid-Cap Value 007 008 011 008 010 009 Small Blend 027 025 039 027 029 Small Growth 057 049 053 Small Value

US EQUITY SECTORS 500 183 093 049 017 007 014 005 017 010 089 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 024 065 -003 029 Equity Energy 014 004 006 001 002 005 Equity Precious Metals

Financial 065 226 007 100 Health 042 046 077 023 047 Industrials Miscellaneous Sector 014 -002 -004 006 020 -006 005 Natural Resources Real Estate 500 301 046 049 030 022 022 038 028 023 106 Technology 081 152 058 044 053 014 067 Utilities 025 030 034 030

INTERNATIONAL EQUITY -014 018 010 -011 -025 -031 -005 004 -007 China Region -012 004 021 034 012 Diversified Emerging Mkts -030 -010 -020 Diversified PacificAsia 030 025 027 Europe Stock 011 008 009 Foreign Large Blend 059 039 008 010 030 017 026 027 Foreign Large Growth -026 -027 -002 021 011 018 022 -004 002 Foreign Large Value 014 003 008 008 Foreign SmallMid Blend

Foreign SmallMid Value -009 -010 001 -006 Global Real Estate 008 000 059 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 001 100 050 PacificAsia ex-Japan Stk

World Stock -018 004 019 013 -001 -005 033 025 009

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - VW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 116 064 056 051 048 017 016 014 012 012 041 Large Blend 100 052 082 070 025 024 021 023 014 011 042 Large Growth 115 060 047 041 136 057 037 011 015 014 053 Large Value 069 076 047 031 021 019 022 016 013 035 Mid-Cap Blend 040 027 011 013 009 009 012 017 Mid-Cap Growth 135 056 065 044 039 027 005 053 Mid-Cap Value 008 006 009 009 009 008 Small Blend 021 019 028 021 022 Small Growth 032 031 031 Small Value

US EQUITY SECTORS 490 111 061 024 020 013 012 006 016 011 076 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 035 053 002 030 Equity Energy 020 012 009 005 005 010 Equity Precious Metals

Financial 052 156 017 075 Health 029 032 050 017 032 Industrials Miscellaneous Sector 005 -009 -008 -002 003 -010 -003 Natural Resources Real Estate 490 171 030 024 020 015 013 023 022 015 082 Technology 056 102 038 029 032 012 045 Utilities 019 020 021 020

INTERNATIONAL EQUITY -016 010 004 -015 -018 -023 015 014 -004 China Region -017 003 -002 025 002 Diversified Emerging Mkts 004 015 009 Diversified PacificAsia 037 038 037 Europe Stock 030 029 030 Foreign Large Blend 042 033 004 010 029 048 022 027 Foreign Large Growth -024 -026 -006 000 010 009 007 -001 -004 Foreign Large Value 016 006 011 011 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -005 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 013 093 053 PacificAsia ex-Japan Stk

World Stock -019 -006 005 001 -004 -005 021 035 004

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - VW

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds

Exhibit 2-1 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Asset-Weighted (AW) within overlapping fund categories

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 121 102 059 055 049 048 016 011 013 012 012 051 081 066 032 024 024 026 014 011

040 043

Large Growth 111 058 049 041 142 049 033 021 018 013 053 Large Value 066 075 047 031 020 013 018 016 014 033 Mid-Cap Blend 040 027 012 008 008 010 012 017 Mid-Cap Growth 137 056 065 044 040 028 006 054 Mid-Cap Value 009 006 008 008 009 008 Small Blend 020 019 025 021 021 Small Growth 035 029 032 Small Value

US EQUITY SECTORS Commodities Industrial Metals

496 107 059 023 019 010 008 006 009 007 074

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 035 053 -002 027 Equity Energy 019 011 008 004 004 009 Equity Precious Metals

Financial 050 154 017 074 Health 029 032 051 017 032 Industrials Miscellaneous Sector 010 002 000 005 009 003 005 Natural Resources Real Estate 496 172 030 023 020 015 014 023 022 016 083 Technology 056 101 038 029 033 013 045 Utilities 018 020 021 020

INTERNATIONAL EQUITY

China Region -018 007 011 -002 -012 -013 025 026

-015 007 004 031 003 007

Diversified Emerging Mkts 010 016 013 Diversified PacificAsia 035 037 036 Europe Stock 031 030 030 Foreign Large Blend 048 033 009 014 036 053 022 031 Foreign Large Growth -024 -027 -006 002 010 010 006 001 -004 Foreign Large Value 006 005 012 008 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -004 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 017 096 056 PacificAsia ex-Japan Stk

World Stock -020 -008 005 005 -006 -005 022 047 005

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - AW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED

Large Blend 159 169 089 089 076 052 021 015 018 013 014 078 136 094 036 034 035 051 014 012

055 066

Large Growth 152 085 077 071 127 080 053 028 020 016 071 Large Value 098 144 069 045 041 020 027 020 019 054 Mid-Cap Blend 058 045 012 010 007 010 015 022 Mid-Cap Growth 155 087 109 075 064 037 007 076 Mid-Cap Value 008 007 010 007 009 008 Small Blend 027 025 035 028 029 Small Growth 062 044 053 Small Value

US EQUITY SECTORS Commodities Industrial Metals

509 177 089 049 018 004 006 005 009 006 087

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 022 024 065 -007 026 Equity Energy 012 003 004 003 001 005 Equity Precious Metals

Financial 063 224 007 098 Health 042 047 078 022 047 Industrials Miscellaneous Sector 021 012 006 015 028 013 016 Natural Resources Real Estate 509 302 048 049 031 022 022 038 031 023 107 Technology 081 151 060 043 053 014 067 Utilities 024 030 034 029

INTERNATIONAL EQUITY

China Region -015 016 019 008 -014 -017 016 022

-010 009 030 043 004 018

Diversified Emerging Mkts -020 -006 -013 Diversified PacificAsia 026 024 025 Europe Stock 011 009 010 Foreign Large Blend 068 038 016 017 044 036 027 035 Foreign Large Growth -028 -030 -002 018 010 018 021 -005 000 Foreign Large Value -001 -001 009 002 Foreign SmallMid Blend

Foreign SmallMid Value -010 -009 002 -006 Global Real Estate 007 001 060 023 India Equity Japan Stock Latin America Stock Miscellaneous Region 006 104 055 PacificAsia ex-Japan Stk

World Stock -018 002 017 020 -003 -005 034 039 011

Exhibit 2-2 Comparison of Active ETF (AETF) vs Index ETF (IETF) Trading Costs Volume-Weighted (VW) within overlapping fund categories

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 160 098 091 077 049 022 021 019 013 013 057 Large Blend 167 079 136 097 026 032 032 039 015 011 063 Large Growth 157 086 073 071 127 083 060 014 016 017 070 Large Value 111 144 070 045 043 029 032 021 018 057 Mid-Cap Blend 059 044 012 012 010 009 015 023 Mid-Cap Growth 159 088 108 075 063 036 006 076 Mid-Cap Value 007 008 011 008 010 009 Small Blend 027 025 039 027 029 Small Growth 057 049 053 Small Value

US EQUITY SECTORS 500 183 093 049 017 007 014 005 017 010 089 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 024 065 -003 029 Equity Energy 014 004 006 001 002 005 Equity Precious Metals

Financial 065 226 007 100 Health 042 046 077 023 047 Industrials Miscellaneous Sector 014 -002 -004 006 020 -006 005 Natural Resources Real Estate 500 301 046 049 030 022 022 038 028 023 106 Technology 081 152 058 044 053 014 067 Utilities 025 030 034 030

INTERNATIONAL EQUITY -014 018 010 -011 -025 -031 -005 004 -007 China Region -012 004 021 034 012 Diversified Emerging Mkts -030 -010 -020 Diversified PacificAsia 030 025 027 Europe Stock 011 008 009 Foreign Large Blend 059 039 008 010 030 017 026 027 Foreign Large Growth -026 -027 -002 021 011 018 022 -004 002 Foreign Large Value 014 003 008 008 Foreign SmallMid Blend

Foreign SmallMid Value -009 -010 001 -006 Global Real Estate 008 000 059 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 001 100 050 PacificAsia ex-Japan Stk

World Stock -018 004 019 013 -001 -005 033 025 009

Category Difference (AETF-IETF) in Volatility of PremiumDiscount () - VW

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 AVG

US EQUITY DIVERSIFIED 116 064 056 051 048 017 016 014 012 012 041 Large Blend 100 052 082 070 025 024 021 023 014 011 042 Large Growth 115 060 047 041 136 057 037 011 015 014 053 Large Value 069 076 047 031 021 019 022 016 013 035 Mid-Cap Blend 040 027 011 013 009 009 012 017 Mid-Cap Growth 135 056 065 044 039 027 005 053 Mid-Cap Value 008 006 009 009 009 008 Small Blend 021 019 028 021 022 Small Growth 032 031 031 Small Value

US EQUITY SECTORS 490 111 061 024 020 013 012 006 016 011 076 Commodities Industrial Metals

Communications Consumer Cyclical Consumer Defensive Energy Limited Partnership 035 053 002 030 Equity Energy 020 012 009 005 005 010 Equity Precious Metals

Financial 052 156 017 075 Health 029 032 050 017 032 Industrials Miscellaneous Sector 005 -009 -008 -002 003 -010 -003 Natural Resources Real Estate 490 171 030 024 020 015 013 023 022 015 082 Technology 056 102 038 029 032 012 045 Utilities 019 020 021 020

INTERNATIONAL EQUITY -016 010 004 -015 -018 -023 015 014 -004 China Region -017 003 -002 025 002 Diversified Emerging Mkts 004 015 009 Diversified PacificAsia 037 038 037 Europe Stock 030 029 030 Foreign Large Blend 042 033 004 010 029 048 022 027 Foreign Large Growth -024 -026 -006 000 010 009 007 -001 -004 Foreign Large Value 016 006 011 011 Foreign SmallMid Blend

Foreign SmallMid Value 013 019 011 014 Global Real Estate 003 -005 068 022 India Equity Japan Stock Latin America Stock Miscellaneous Region 013 093 053 PacificAsia ex-Japan Stk

World Stock -019 -006 005 001 -004 -005 021 035 004

Category Difference (AETF-IETF) in Avg Absolute PremiumDiscount () - VW

Source Morningstar Inc AETF means actively-managed ETF IETF means index ETF AW means weighting funds by net assets VW means weighting funds by dollar trading volume Note Excludes ETNs non-equity leveraged inverse and inverse leveraged ETFs as well as premiumdiscount observations greater than 20 for included funds