ETF Risk Report: IEIH Buyer beware: Every ETF holds the full risk of its underlying equities Disclosures in the best interest of investors iShares Evolved U.S. Innovative Healthcare ETF Gray Swan Event Risks exist for every equity held by IEIH. Gray swan events include accounting fraud, management failures, failed internal controls, M&A problems, restatements, etc. These risks occur infrequently, but Gray Swan Event Factor for IEIH 2.31% consistently for all equities. Equities account for 99.25% of IEIH’s assets. Most investors ignore these risks until after they are disclosed; whereupon a stock’s price drops precipitously. Just as insurance companies can predict likely costs for a driver’s future car accidents based on the driver’s history, Watchdog Research contacts each ETF asking how they notify investors about we predict the likely cost (price drop) for IEIH following accounting governance risks in equities in their fund. We will publish their response gray swan disclosures within its holdings. The expected when received. price decrease across the IEIH equity portfolio is 2.31%. However, individual equity risks vary signicantly. This report helps investors know their risk exposure. Inception Date: 03/21/2020 Year-to-Date Return: 0.27% The iShares Evolved U.S. Innovative Healthcare ETF seeks to provide to access to U.S. companies with innovative Net Assets: $35.5m 1-Year Return: 31.44% healthcare exposure, such as pharmaceutical and biotechnology companies. The Fund is an actively Price: $32.34 3-Year Return: 13.69% managed exchange-traded fund and does not seek to Net Asset Value (NAV): $32.25 5-Year Return: NA replicate the performance of a specied index. Sector funds are by denition non-diversied. Net Expense Ratio: 0.18% Yield: 2.85% As of: 03/31/2021 Company Ticker Held Current GSEF Category Value Top Holdings by Value Johnson & Johnson JNJ Long 2.34% Mid $3.62m This table shows Gray Swan Event Factors for the top ten equity holdings by dollar-value, as of Sep 24, 2021. Pzer Inc. PFE Long 3.27% Mid $2.25m Investors should invest in ETFs only when they adequately Merck & Co., Inc. MRK Long 3.34% Mid $2.21m understand an ETF’s risks. Buyer beware. ETF prospectuses generally acknowledge that ETF managers Eli Lilly And Company LLY Long 2.99% Mid $2.21m do NO traditional risk analysis on equities in their fund. Abbvie Inc. ABBV Long 0.92% Low $2.19m Our Gray Swan Event Factors are meant to inform investors of signicant traditional accounting and Moderna, Inc. MRNA Long 1.27% Low $2.02m managerial risks for the equities in each ETF. Bristol Myers Squib... BMY Long 2.24% Mid $1.79m ETF Risk Reports are published quarterly on dedicated Gilead Sciences Inc. GILD Long 2.15% Mid $1.7m platforms like Factset, Renitiv, Capital IQ etc. Weekly updates are available for a paid subscription. Amgen Inc. AMGN Long 2.07% Mid $1.59m For more details contact: [email protected] Regeneron Pharmaceu... REGN Long 2.30% Mid $1.35m Company Ticker Held Current GSEF Category Value Riskiest Holdings Athenex, Inc. ATNX Long 12.82% Extreme $8.24k This table shows the individual Gray Swan Event Factors for this ETF’s most at-risk equities as of Sep 24, 2021. Ani Pharmaceuticals... ANIP Long 12.51% Extreme $5.4k The average equity GSEF across 6,500 public equities is Fibrogen Inc. FGEN Long 10.56% Extreme $53.9k 1.25%. Equities with a GSEF between 5% and 10% are considered high risk. Equities with a GSEF above 10% are Beam Therapeutics Inc. BEAM Long 7.02% High $73.5k extreme risks. Gray Swan Event Factors are derived from skilled analysts Myriad Genetics Inc. MYGN Long 6.47% High $23.5k charting 15 years of negative gray swan event disclosures Sorrento Therapeuti... SRNE Long 6.31% High $54.8k against stock price declines following such disclosures. A Gray Swan Event Factor is an assessment of the Intercept Pharmaceu... ICPT Long 6.10% High $14.9k likelihood of, and 12-month price risk for, gray swan Jazz Pharmaceutical... JAZZ Long 6.04% High $263k events for each equity. Icu Medical Inc. ICUI Long 6.02% High $22.6k Replimune Group, Inc. REPL Long 5.91% High $24.7k Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 This table lists the equity holdings for iShares Evolved U.S. Innovative Healthcare ETF ranked by highest GSE Factor (riskiest rst). We list all equities (US and foreign) for this ETF. However, some foreign listings only show via a ticker. To further evaluate risks, you can access details for each company by opening its Brief Watchdog Report available for viewing and pdf download. The report is free to readers for their personal consumption and it includes the executive summary data pulled from the full Watchdog Report. To learn more about the full Watchdog and GSEF Reports go to last page or visit watchdogresearch.com. Company Access Details Ticker Held Current GSEF Category Value Athenex, Inc. Watchdogresearch.com/watchdog/$ATNX ATNX Long 12.82% Extreme $8.24k Ani Pharmaceuticals Inc. Watchdogresearch.com/watchdog/$ANIP ANIP Long 12.51% Extreme $5.4k Fibrogen Inc. Watchdogresearch.com/watchdog/$FGEN FGEN Long 10.56% Extreme $53.9k Beam Therapeutics Inc. Watchdogresearch.com/watchdog/$BEAM BEAM Long 7.02% High $73.5k Myriad Genetics Inc. Watchdogresearch.com/watchdog/$MYGN MYGN Long 6.47% High $23.5k Sorrento Therapeutics, Inc. Watchdogresearch.com/watchdog/$SRNE SRNE Long 6.31% High $54.8k Intercept Pharmaceuticals Inc. Watchdogresearch.com/watchdog/$ICPT ICPT Long 6.10% High $14.9k Jazz Pharmaceuticals Plc. Watchdogresearch.com/watchdog/$JAZZ JAZZ Long 6.04% High $263k Icu Medical Inc. Watchdogresearch.com/watchdog/$ICUI ICUI Long 6.02% High $22.6k Replimune Group, Inc. Watchdogresearch.com/watchdog/$REPL REPL Long 5.91% High $24.7k Vaxart, Inc. Watchdogresearch.com/watchdog/$VXRT VXRT Long 5.90% High $13.1k Ziopharm Oncology Inc. Watchdogresearch.com/watchdog/$ZIOP ZIOP Long 5.87% High $8.83k Baxter International Inc. Watchdogresearch.com/watchdog/$BAX BAX Long 4.92% Mid $168k Supernus Pharmaceuticals, Inc. Watchdogresearch.com/watchdog/$SUPN SUPN Long 4.76% Mid $37.3k Akebia Therapeutics, Inc. Watchdogresearch.com/watchdog/$AKBA AKBA Long 4.74% Mid $17.1k Endo International Plc. Watchdogresearch.com/watchdog/$ENDP ENDP Long 4.64% Mid $15.4k Voyager Therapeutics, Inc. Watchdogresearch.com/watchdog/$VYGR VYGR Long 4.62% Mid $2.91k Bluebird Bio, Inc. Watchdogresearch.com/watchdog/$BLUE BLUE Long 4.35% Mid $70.2k Horizon Pharma Plc. Watchdogresearch.com/watchdog/$HZNP HZNP Long 4.34% Mid $474k Frequency Therapeutics, Inc. Watchdogresearch.com/watchdog/$FREQ FREQ Long 4.16% Mid $7.27k Acadia Pharmaceuticals Inc. Watchdogresearch.com/watchdog/$ACAD ACAD Long 4.06% Mid $74k Caredx, Inc. Watchdogresearch.com/watchdog/$CDNA CDNA Long 3.96% Mid $34.4k Amneal Pharmaceuticals, Inc. Watchdogresearch.com/watchdog/$AMRX AMRX Long 3.90% Mid $15.1k Alkermes Plc. Watchdogresearch.com/watchdog/$ALKS ALKS Long 3.89% Mid $90.7k Novavax Inc. Watchdogresearch.com/watchdog/$NVAX NVAX Long 3.86% Mid $284k Epizyme, Inc. Watchdogresearch.com/watchdog/$EPZM EPZM Long 3.77% Mid $17.4k Tricida, Inc. Watchdogresearch.com/watchdog/$TCDA TCDA Long 3.76% Mid $3.04k Provention Bio, Inc. Watchdogresearch.com/watchdog/$PRVB PRVB Long 3.74% Mid $9.41k Ironwood Pharmaceuticals Inc. Watchdogresearch.com/watchdog/$IRWD IRWD Long 3.72% Mid $42.5k Ardelyx, Inc. Watchdogresearch.com/watchdog/$ARDX ARDX Long 3.72% Mid $14.3k Nextcure, Inc. Watchdogresearch.com/watchdog/$NXTC NXTC Long 3.72% Mid $2.99k Spectrum Pharmaceuticals Inc. Watchdogresearch.com/watchdog/$SPPI SPPI Long 3.68% Mid $9.21k Ligand Pharmaceuticals Inc. Watchdogresearch.com/watchdog/$LGND LGND Long 3.59% Mid $60.6k Charles River Laboratories International Watchdogresearch.com/watchdog/$CRL CRL Long 3.58% Mid $171k Inc. Chinook Therapeutics, Inc. Watchdogresearch.com/watchdog/$KDNY KDNY Long 3.57% Mid $2.84k Catalent, Inc. Watchdogresearch.com/watchdog/$CTLT CTLT Long 3.42% Mid $171k Watchdog Research, Inc. • www.watchdogresearch.com • [email protected] • (855) 820-6272 Company Access Details Ticker Held Current GSEF Category Value Kadmon Holdings, Inc. Watchdogresearch.com/watchdog/$KDMN KDMN Long 3.40% Mid $19k Merck & Co., Inc. Watchdogresearch.com/watchdog/$MRK MRK Long 3.34% Mid $2.21m Chemocentryx, Inc. Watchdogresearch.com/watchdog/$CCXI CCXI Long 3.34% Mid $15.3k Pzer Inc. Watchdogresearch.com/watchdog/$PFE PFE Long 3.27% Mid $2.25m Adverum Biotechnologies, Inc. Watchdogresearch.com/watchdog/$ADVM ADVM Long 3.27% Mid $5.85k Sarepta Therapeutics, Inc. Watchdogresearch.com/watchdog/$SRPT SRPT Long 3.23% Mid $147k Bausch Health Companies Inc. Watchdogresearch.com/watchdog/$BHC BHC Long 3.22% Mid $143k Allakos, Inc. Watchdogresearch.com/watchdog/$ALLK ALLK Long 3.14% Mid $63.8k La Jolla Pharmaceutical Co. Watchdogresearch.com/watchdog/$LJPC LJPC Long 3.13% Mid $2.17k Biogen Inc. Watchdogresearch.com/watchdog/$BIIB BIIB Long 3.04% Mid $1.12m Ionis Pharmaceuticals Inc. Watchdogresearch.com/watchdog/$IONS IONS Long 3.02% Mid $146k Eli Lilly And Company Watchdogresearch.com/watchdog/$LLY LLY Long 2.99% Mid $2.21m Medicinova Inc. Watchdogresearch.com/watchdog/$MNOV MNOV Long 2.97% Mid $3.83k Y Mabs Therapeutics, Inc. Watchdogresearch.com/watchdog/$YMAB YMAB Long 2.97% Mid $21.6k Karyopharm Therapeutics Inc. Watchdogresearch.com/watchdog/$KPTI KPTI Long 2.94% Mid $21.3k Gossamer Bio, Inc. Watchdogresearch.com/watchdog/$GOSS GOSS Long 2.94% Mid $11.4k United Therapeutics Corp. Watchdogresearch.com/watchdog/$UTHR UTHR Long 2.93% Mid $186k Collegium Pharmaceutical, Inc. Watchdogresearch.com/watchdog/$COLL COLL Long 2.90% Mid $14k Dynavax Technologies Corp. Watchdogresearch.com/watchdog/$DVAX DVAX Long 2.78% Mid $13.9k Editas Medicine, Inc.