E*TRADE Exclusive Top 5 Lists

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E*TRADE EXCLUSIVE TOP 5 LISTS.

Looking for smart investment ideas? Our Top 5 lists may be a great place to start. Browse through the lists below and find the investments that are right for you.

Top 5 Performing ETFs (1-Year)

Data quoted represents past performance. Past performance is not an indication of future results and investment returns and share prices will fluctuate on a daily basis. Your investment may be worth more or less than your original cost at redemption. Current performance may be lower or higher than the performance data quoted. Performance is based on market returns. For most recent month end performance and current performance metrics, please click on the fund name. Exchange-Traded Fund [ETF] shares cannot be redeemed directly from the ETF. Consequently, brokerage commissions will reduce the performance.
Average Annual Return Overall Morningstar Rating

Fund Name

Symbol

Category

1-Year Return

5-Year Return

10-Year Return

Since Inception Return/Date

ISHARES SILVER TRUST RYDEX S&P MIDCAP 400 PURE GROWTH ETF RYDEX S&P 500 PURE GROWTH ETF VANGUARD SMALL-CAP GROWTH INDEX FUND POWERSHARES FTSE RAFI ASIA PACIFIC EX-JAPAN PORTFOLIO
Data as of 06/30/2011

SLV

Commodities Precious Metals Mid-Cap Growth

85.83%

24.89%

--

21.95%
04/21/2006

RFG

56.25%

12.79%

--

10.54%
03/01/2006

RPG

Large Growth

49.12%

8.28%

--

6.83%
03/01/2006

VBK

Small Growth Pacific/Asia exJapan Stk

46.60%

7.52%

--

7.83%
01/26/2004

PAF

45.54%

--

--

7.03%
06/25/2007

ETFs on the list were identified by the following criteria: ETFs available on the E*TRADE platform with the highest 1-year total return and overall Morningstar rating of 4 or 5 stars, excluding exchange-traded notes, sector ETFs and leveraged ETFs.

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PLEASE READ IMPORTANT DISCLOSURES BELOW The fund's prospectus contains its investment objectives, risks, charges, expenses and other important information and should be read and considered carefully before investing. For a current prospectus, visit www.etrade.com/mutualfunds or visit the Exchange-Traded Funds Center at www.etrade.com/etf. Exchange-traded funds [ETFs] are subject to risks similar to those of other diversified portfolios. Although ETFs are designed to provide investment results that generally correspond

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E*TRADE Exclusive Top 5 Lists

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to the performance of their respective underlying indices, they may not be able to exactly replicate the performance of the indices because of expenses and other factors. Also, there are brokerage commissions associated with trading ETFs that may negate their low management fees. ETFs are required to distribute portfolio gains to shareholders at year end. These gains may be generated by portfolio rebalancing or the need to meet diversification requirements. ETF trading will also generate tax consequences. Investing in Commodities, REITS, and International or Global investments carries certain risks such as price volatility, currency risk, market risk, interest rate risk and credit risk. An investor should fully understand these risks before making an investment. Customers who receive promotional offers from affiliates of E*TRADE Financial Corporation may be subject to IRS Form 1099-MISC reporting requirements should the total value of those items exceed $599 in a calendar year. Please consult a tax professional. 1. Credits for deposits of new funds or securities from accounts outside of E*TRADE will be made as follows: deposits over $250,000 receive $500; deposits between $100,000 $249,999 receive $250; deposits between $50,000 - $99,999 receive $100; $25,000 and $49,999 receive $50. To receive the credit, you must transfer new funds or securities from a bank or brokerage account outside of E*TRADE into a new or existing E*TRADE CompleteTM Investment Account. Deposits of new funds or securities from existing E*TRADE Bank and E*TRADE Securities accounts are not eligible for this offer. New funds or securities must be deposited into the enrolled account within 45 days of enrollment. This offer is not valid for IRAs, other retirement, business, trust, or E*TRADE Bank accounts. E*TRADE Financial Corporation associates, and non-U.S. residents not eligible. New funds or securities must remain in the account (minus any trading losses) for a minimum of 6 months or the credit may be surrendered. The credit will be made to your account within 8 weeks of account funding. We reserve the right to terminate this offer at any time. Accounts must be enrolled by December 31, 2011, the offer expiration date. 2. Dividend Yields provide an idea of the cash dividend expected from an investment in a stock. Dividend Yields can change daily as they are based on the prior day's closing stock price. There are risks involved with dividend yield investing strategies, such as the company not paying a dividend or the dividend being far less that what is anticipated. Furthermore, dividend yield should not be relied upon solely when making a decision to invest in a stock. An investment in high yield stock and bonds involve certain risks such as market risk, price volatility, liquidity risk and risk of default. All-Star Mutual Funds typically have at least a three year track record and compare favorably against their peers based on historical return, risk, expenses, manager tenure, performance and style consistency, asset size and growth and must be 1) structured through sound investment philosophy and process, 2) implemented with acceptable level of investment risk management strategy and 3) supported by a well balanced investment firm. All-Star ETFs are selected based on criteria such as low expense ratio, tracking error, liquidity, style purity, underlying holdings, and how well the ETF represents the index it seeks to replicate. In addition, ETFs chosen are passively managed, have at least 6-months trading history and are sponsored by a well balanced investment firm. Inverse and leveraged ETFs are not considered. 4. 5. As of March 31, 2011. E*TRADE Financial Corporation. You can invest in the mutual funds available through E*TRADE Securities' no-load, no-transaction fee program without paying loads, transaction fees, or commissions. To discourage short-term trading, E*TRADE Securities will charge an Early Redemption Fee of $49.99 on redemptions or exchanges of no-load, no transaction fee funds that are held less than 90 days. Direxion, ProFunds and Rydex mutual funds, or funds held at least 90 days will not be subject to the Early Redemption Fee. All fees and expenses as described in the fund's prospectus still apply. Please read the fund's prospectus carefully before investing. Online & inperson education is being provided to you for educational purposes only. No information presented constitutes a recommendation by E*TRADE Financial or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities by E*TRADE Financial Corporation or its affiliates. Neither E*TRADE Financial Corporation nor its affiliates offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. Neither E*TRADE Financial Corporation nor any of its affiliates is affiliated with the third party providing this content.

3.

6.

The overall Morningstar RatingTM for a fund is derived from a weighted average of the performance figures associated with its three, five, and ten-year (if applicable) Morningstar Rating metrics. For each fund with at least a threeyear history, Morningstar calculates a Morningstar Rating based on a Morningstar RiskAdjusted Return measure that accounts for variation in a funds monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.). Funds selected for the All-Star List are selected from the no-load mutual funds offered through E*TRADE Securities. For more information on the All-Star List, please see the list criteria on etrade.com/allstar. The performance metrics for Exchange Traded Funds (ETF) are based on Market Value Returns. For definition of terms, please click on the Data Definitions link. Quotes and other information supplied by independent providers identified on the E*TRADE vendor disclosures page. E*TRADE Securities online broker ratings, as reported by SmartMoney Magazine in its 2011 Broker Survey and based on the following categories: Trading Tools (5 stars), Customer Service (2 stars), Banking Services (4 stars), Mutual Funds & Investment Products (4 stars) and Research (5 stars). E*TRADE overall ranked #6. SmartMoney is a trademark of Dow Jones & Company, Inc. 2011 Dow Jones & Company, Inc. All rights reserved. The E*TRADE Financial family of companies provides financial services including trading, investing, investment advisory services and related banking products and services to retail investors. Securities products and services are offered by E*TRADE Securities LLC, Member FINRA/SIPC. System response and account access times may vary due to a variety of factors, including trading volumes, market conditions, system performance, and other factors. 2011 E*TRADE Financial Corporation. All rights reserved.

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