UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09729

iShares Trust

(Exact name of Registrant as specified in charter)

c/o: State Street Bank and Trust Company

1 Iron Street, Boston, MA 02210

(Address of principal executive offices) (Zip code)

The Corporation Trust Company

1209 Orange Street, Wilmington, DE 19801

(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 670-2000

Date of fiscal year end: April 30, 2017

Date of reporting period: April 30, 2017

Item 1. Reports to Stockholders.

APRIL 30, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares Dow Jones U.S. ETF  |  IYY  |  NYSE Arca

^Ø  iShares Transportation Average ETF  |  IYT  |  NYSE Arca

^Ø  iShares U.S. Energy ETF  |  IYE  |  NYSE Arca

^Ø  iShares U.S. Healthcare ETF  |  IYH  |  NYSE Arca

^Ø  iShares U.S. Technology ETF  |  IYW  |  NYSE Arca

^Ø  iShares U.S. Utilities ETF  |  IDU  |  NYSE Arca

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	18
Shareholder Expenses	18
Schedules of Investments	19
iShares Dow Jones U.S. ETF	19
iShares Transportation Average ETF	36
iShares U.S. Energy ETF	37
iShares U.S. Healthcare ETF	39
iShares U.S. Technology ETF	42
iShares U.S. Utilities ETF	45
Financial Statements	47
Financial Highlights	54
Notes to Financial Statements	60
Report of Independent Registered Public Accounting Firm	72
Tax Information	73
Supplemental Information	74
Trustee and Officer Information	77

Management’s Discussion of Fund Performance

iSHARES^® TRUST

U.S. EQUITY MARKET OVERVIEW

U.S. stocks posted strong returns for the 12 months ended April 30, 2017 (the “reporting period”). The Russell 3000^® Index, a broad measure of U.S. equity performance, returned 18.58% for the reporting period.

Despite the strong overall performance, the U.S. equity market rose modestly in the first half of the reporting period. One contributing factor was a sluggish U.S. economy, which grew by 2.0% in 2016, its slowest calendar-year growth rate since 2011. Although economic growth improved in the second half of 2016, it slowed again in early 2017, as the economy grew at a 0.7% annual rate in the first quarter of 2017.

On the positive side, job growth remained robust as the unemployment rate declined to a 10-year low of 4.4%, and retail sales grew by 4.5% during the reporting period. However, other aspects of the economy continued to struggle, for example, manufacturing activity and business productivity remained muted, and government defense spending and investment declined during the reporting period.

A heightened level of volatility was also evident in the stock market during the first half of the reporting period amid continuing geopolitical conflicts and global unrest. In particular, equity investors reacted sharply to the affirmative vote on the United Kingdom’s referendum to leave the European Union, terrorist attacks in France, and an attempted coup in Turkey.

The bulk of the U.S. equity market’s advance for the reporting period occurred after the U.S. presidential election in November 2016. The new administration was expected to enact pro-business fiscal policies, including lower taxes, decreased regulation, and increased fiscal spending, aimed at stimulating economic growth. These expectations drove a strong equity market advance that extended through the end of the reporting period, even as uncertainty emerged regarding how quickly the new administration would be able to implement its new policies.

The stock market remained on an upward trajectory despite two short-term interest rate increases by the U.S. Federal Reserve Bank (“the Fed”) in the last half of the reporting period. Mixed economic data kept the Fed on hold during the first six months of the reporting period, but improving growth in the third quarter of 2016 led the Fed to raise its short-term interest rate target in December 2016. The Fed acted again in March 2017, responding to the highest year-over-year inflation rate in five years. The two Fed interest rate increases raised the federal funds interest rate target to a range of 0.75%-1.00%.

For the reporting period, small-capitalization stocks generated the strongest returns, outperforming mid- and large-capitalization stocks. Value and growth stocks were mixed with growth faring better than value among large-capitalization stocks, while value outperformed growth among mid- and small-capitalization stocks.

In terms of sector performance, the reporting period featured two distinct phases. Initially, defensive sectors of the equity market, such as real estate, utilities, consumer staples, and telecommunication services, were the top performers. These stocks led the market’s advance for most of 2016 as investors flocked to sectors with relatively high dividend yields in a low interest rate environment.

However, after the presidential election, investors rotated into more economically sensitive sectors of the market, including financials, information technology, materials, and industrials. These sectors were the leading performers for the full reporting period, while the more defensive sectors of the market trailed the broader market.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® DOW JONES U.S. ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.04%		18.08%		18.28%		18.04%		18.08%		18.28%
5 Years		13.29%		13.30%		13.50%		86.59%		86.71%		88.33%
10 Years		7.14%		7.14%		7.34%		99.38%		99.37%		103.08%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,135.00	$	1.06	$	1,000.00	$	1,023.80	$	1.00		0.20%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® DOW JONES U.S. ETF

The iShares Dow Jones U.S. ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of U.S. equities, as represented by the Dow Jones U.S. Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 18.04%, net of fees, while the total return for the Index was 18.28%.

As represented by the Index, U.S. stocks posted strong returns for the reporting period.

Ten of 11 sectors contributed to the Index’s return during the reporting period. The information technology sector was the largest contributor to the Index’s performance for the reporting period, as financial services and manufacturing companies continued to invest in cloud computing and data infrastructure. The technology hardware, storage and peripherals industry posted a solid performance despite slower consumer spending on mobile devices and personal computers. Increased spending on enterprise software helped drive the solid gains in the software industry, while growth in technology products with wireless connectivity drove the demand for semiconductors stocks.

The financials sector also significantly contributed to the Index’s performance, amid rising interest rates and expectations of a more lenient regulatory environment under President Trump. Those expectations, coupled with two interest rate increases by the Fed during the reporting period, led to gains in the banking industry. Strong performance in the insurance industry also helped the financials sector.

The consumer discretionary and industrials sectors also boosted the Index’s return during the reporting period. Media stocks made gains in the consumer discretionary sector despite ongoing industry consolidation and declining television subscriptions, while an expanding U.S. defense budget helped the aerospace and defense industry in the industrials sector. The healthcare, consumer staples, materials, and utilities sectors were other notable contributors to the Index’s performance for the reporting period.

In contrast, the real estate sector, which represented approximately 3% of the Index on average, detracted fractionally from the Index’s performance for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Information Technology	21.85	%
Financials	14.27
Health Care	13.33
Consumer Discretionary	12.93
Industrials	10.49
Consumer Staples	8.45
Energy	6.01
Real Estate	3.99
Materials	3.33
Utilities	3.25
Telecommunication Services	2.10
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Apple Inc.	3.19	%
Microsoft Corp.	2.24
Amazon.com Inc.	1.55
Facebook Inc. Class A	1.50
Exxon Mobil Corp.	1.44
Johnson & Johnson	1.42
Berkshire Hathaway Inc. Class B	1.33
JPMorgan Chase & Co.	1.32
Alphabet Inc. Class A	1.16
Alphabet Inc. Class C	1.14
TOTAL	16.29	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® TRANSPORTATION AVERAGE ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		17.32%		17.33%		17.31%		17.32%		17.33%		17.31%
5 Years		13.12%		13.12%		13.32%		85.20%		85.23%		86.85%
10 Years		7.45%		7.44%		7.77%		105.13%		104.94%		111.38%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,136.70	$	2.33	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® TRANSPORTATION AVERAGE ETF

The iShares Transportation Average ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the transportation sector, as represented by the Dow Jones Transportation Average Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 17.32%, net of fees, while the total return for the Index was 17.31%.

As represented by the Index, U.S transportation stocks posted strong returns for the reporting period, generally tracking the broader U.S. equity market.

After advancing gradually over the first half of the reporting period, transportation stocks surged following the election of President Donald Trump in November 2016. The Index peaked in early March 2017, before pulling back over the final two months of the reporting period amid concerns about the prospects for new pro-growth policies.

Within the transportation sector, all the major industry groups contributed to the Index’s performance for the reporting period. The road and rail industry, representing the largest portion of the Index, contributed the most to the Index’s return for the reporting period. Rail stocks soared following the election of President Trump, who pledged in his campaign to revive the coal industry, a key source of railroad traffic. Expectations of pro-business fiscal and regulatory policies under President Trump added to the election’s positive impact on the equity market. In addition, railroads’ cost-cutting efforts helped to boost their stock prices. Trucking stocks posted more subdued gains due to pricing pressure amid weak volumes and capacity oversupply.

Airlines stocks also contributed significantly to the Index’s performance for the reporting period, as the industry benefited from improved operating efficiencies. The air freight and logistics industry contributed to the Index’s return, with package delivery companies benefiting from the growth of e-commerce. The marine transportation industry, the smallest portion of the Index, also modestly contributed to the Index’s performance for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Road & Rail	41.61	%
Air Freight & Logistics	28.94
Airlines	22.49
Marine	6.96
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

FedEx Corp.	12.63	%
Norfolk Southern Corp.	7.80
Union Pacific Corp.	7.41
United Parcel Service Inc. Class B	7.13
JB Hunt Transport Services Inc.	5.92
Alaska Air Group Inc.	5.62
Kansas City Southern	4.97
Landstar System Inc.	4.75
CH Robinson Worldwide Inc.	4.72
Kirby Corp.	4.65
TOTAL	65.60	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® U.S. ENERGY ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		0.52%		0.49%		0.98%		0.52%		0.49%		0.98%
5 Years		0.19%		0.20%		0.58%		0.96%		1.01%		2.94%
10 Years		1.88%		1.88%		2.19%		20.46%		20.42%		24.20%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	999.80	$	2.18	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. ENERGY ETF

The iShares U.S. Energy ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the energy sector, as represented by the Dow Jones U.S. Oil & Gas Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 0.52%, net of fees, while the total return for the Index was 0.98%.

As represented by the Index, U.S. energy stocks experienced considerable volatility during the reporting period, reflecting changes in prices for energy-related commodities, before ultimately finishing little changed. In February 2016, oil touched its lowest level since 2003, less than $27 per barrel, then rallied to more than $55 briefly in early 2017, before ending April 2017 less than $50 per barrel. Natural gas prices were similarly volatile during the reporting period.

The changes in energy prices were largely due to supply and demand dynamics. In 2016, major oil producers announced coordinated production cuts, and many small independent North American energy producers filed for bankruptcy, further restricting supply. In response to historically low prices, U.S. energy consumption rose in 2016; however, the rebound in energy prices encouraged producers to increase output. Capital expenditures by U.S. oil producers increased in the fourth quarter of 2016 after contracting for much of the previous two years. North American producers have increased output so far in 2017, and the U.S. oil rig count rose by roughly two-thirds year over year through March 2017.

In that environment, oil and gas storage and transportation companies contributed the most to the Index’s performance for the reporting period, followed by oil and gas refining, marketing, and transportation companies. In contrast, integrated oil and gas companies, which comprised more than 40% of the Index on average during the reporting period, modestly detracted from the Index’s return. Oil and gas exploration and production companies were also minor detractors.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Oil, Gas & Consumable Fuels	82.60	%
Energy Equipment & Services	16.75
Other**	0.65
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Exxon Mobil Corp.	23.74	%
Chevron Corp.	14.16
Schlumberger Ltd.	7.10
ConocoPhillips	4.15
EOG Resources Inc.	3.74
Occidental Petroleum Corp.	3.30
Halliburton Co.	2.79
Kinder Morgan Inc./DE	2.78
Phillips 66	2.46
Anadarko Petroleum Corp.	2.23
TOTAL	66.45	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® U.S. HEALTHCARE ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.06%		11.05%		11.50%		11.06%		11.05%		11.50%
5 Years		16.90%		16.90%		17.42%		118.29%		118.35%		123.17%
10 Years		9.99%		9.99%		10.45%		159.04%		159.04%		170.14%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,136.90	$	2.33	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. HEALTHCARE ETF

The iShares U.S. Healthcare ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the healthcare sector, as represented by the Dow Jones U.S. Health Care Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 11.06%, net of fees, while the total return for the Index was 11.50%.

As represented by the Index, U.S. healthcare stocks posted positive performance for the reporting period, but trailed the broader U.S. equity market. The Index declined leading up to the U.S. presidential election in November 2016 before rebounding through the remainder of the reporting period.

Healthcare equipment stocks contributed the most to the Index’s return for the reporting period, benefiting amid acquisition announcements by healthcare equipment companies. The pharmaceuticals and biotechnology industries also significantly boosted the Index’s performance. Although pharmaceuticals and biotechnology companies faced uncertainty about potential regulations regarding drug pricing, the outlook for the industries improved, partly due to potential tax reform and cash repatriation. In addition, managed healthcare companies were notable contributors to the Index’s performance, as several U.S. managed healthcare providers improved their financial performances during the reporting period.

In contrast, the healthcare facilities and healthcare services industries detracted from the Index’s return for the reporting period. Among healthcare facilities, hospitals generally struggled amid rising costs and falling revenues. Over the past several years, revenues for hospitals have generally declined, due in part to the Affordable Care Act’s expansion of Medicaid, which provides significantly lower reimbursement rates than private insurance. Higher costs and decreasing revenues have forced many hospitals to streamline operations or to close, leading to a decline in the number of hospitals in the U.S. over the past 20 years, despite a higher population. In addition, higher interest rates threatened to contribute to several hospitals’ debt burdens.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Pharmaceuticals	35.16	%
Biotechnology	22.46
Health Care Equipment & Supplies	20.59
Health Care Providers & Services	17.18
Life Sciences Tools & Services	4.50
Commercial Services & Supplies	0.11
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Johnson & Johnson	11.18	%
Pfizer Inc.	6.74
Merck & Co. Inc.	5.71
UnitedHealth Group Inc.	5.61
Amgen Inc.	4.01
Medtronic PLC	3.79
AbbVie Inc.	3.51
Celgene Corp.	3.22
Bristol-Myers Squibb Co.	3.13
Gilead Sciences Inc.	2.99
TOTAL	49.89	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® U.S. TECHNOLOGY ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		36.57%		36.59%		37.21%		36.57%		36.59%		37.21%
5 Years		14.08%		14.10%		14.53%		93.26%		93.41%		97.06%
10 Years		10.23%		10.22%		10.67%		164.81%		164.52%		175.52%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,171.40	$	2.37	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. TECHNOLOGY ETF

The iShares U.S. Technology ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the technology sector, as represented by the Dow Jones U.S. Technology Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 36.57%, net of fees, while the total return for the Index was 37.21%.

As represented by the Index, U.S. technology stocks posted a strong return for the reporting period, outperforming the broader U.S. equity market.

U.S. technology company profits were strong during the reporting period, as financial services and manufacturing companies continued to invest in cloud computing and data infrastructure. Technology companies benefited from investors’ expectations for growth in innovative areas such as virtual reality and technology products with wireless connectivity. Despite these positive factors, the initial public offering (“IPO”) market for technology stocks in the U.S., another measure of the technology sector’s health, was mixed for the reporting period. Calendar-year 2016 had the lowest number of IPOs since 2009, though the market for new technology companies improved beginning in 2017.

The software and services industry, which represented more than 50% of the Index on average, was the largest contributor to the Index’s return for the reporting period. Profitability among software and services companies was helped by increased spending on enterprise software, as well as strong growth in online advertising and cloud computing. Other strong contributors to the Index’s performance for the reporting period included the technology hardware, storage, and peripherals industry and the semiconductors industry. The technology hardware, storage, and peripherals industry posted a solid performance despite slower consumer spending on mobile devices and personal computers, and several companies in the industry posted better-than-expected financial performances during the reporting period. Strength in the semiconductors industry reflected better pricing and demand for chips used in smartphones, as well as growth in technology products with wireless connectivity.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Software	24.44	%
Internet Software & Services	23.54
Technology Hardware, Storage & Peripherals	20.31
Semiconductors & Semiconductor Equipment	17.37
Communications Equipment	6.38
IT Services	5.84
Other**	2.12
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Apple Inc.	17.34	%
Microsoft Corp.	12.17
Facebook Inc. Class A	8.14
Alphabet Inc. Class A	6.32
Alphabet Inc. Class C	6.16
Intel Corp.	3.93
Cisco Systems Inc.	3.93
International Business Machines Corp.	3.17
Oracle Corp.	3.10
Broadcom Ltd.	2.04
TOTAL	66.30	%

* Excludes money market funds.

** Other includes sectors and/or investment types which individually represent less than 1% of total investments.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® U.S. UTILITIES ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		10.16%		10.15%		10.64%		10.16%		10.15%		10.64%
5 Years		11.85%		11.86%		12.35%		75.06%		75.10%		78.99%
10 Years		6.08%		6.08%		6.52%		80.48%		80.40%		88.05%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 18 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,065.20	$	2.25	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. UTILITIES ETF

The iShares U.S. Utilities ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the utilities sector, as represented by the Dow Jones U.S. Utilities Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 10.16%, net of fees, while the total return for the Index was 10.64%.

As represented by the Index, U.S utility stocks posted a solid return for the reporting period, but trailed the broader U.S. equity market.

Even though the utilities sector posted a positive return, the sector had to contend with a macroeconomic environment that contributed to its restrained performance. With their generous dividend yields and ongoing borrowing needs, the utilities sector’s performance is often adversely influenced by rising interest rates. During the reporting period, both short- and long-term interest rates rose. The Fed raised short-term interest rates twice, while setting expectations for more interest rate increases to normalize monetary policy. Meanwhile, long-term interest rates also rose sharply for a couple of months after the U.S. presidential election, driven by fears of inflation from the new administration’s fiscal stimulus plans. In contrast, utilities stocks also benefited from the expectation that the new administration would deregulate the sector and ease environmental regulations.

Within the Index, the majority of the industries had positive returns for the reporting period. The electric utilities industry contributed the most to the Index’s performance, as it benefited from the continued move toward lower-cost natural gas fuel for power generation. The multi-utilities industry also made a notable contribution, while gas and water utilities made smaller contributions to the Index’s return.

The only industry to detract from the Index’s performance was independent power and renewable electricity producers, which represented the smallest portion of the Index on average. In particular, lower wholesale electricity prices pressured the sales and stock prices for big independent U.S. power producers for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Electric Utilities	58.66	%
Multi-Utilities	30.64
Gas Utilities	5.75
Water Utilities	2.66
Independent Power and Renewable Electricity Producers	2.29
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

NextEra Energy Inc.	8.28	%
Duke Energy Corp.	7.66
Southern Co. (The)	6.55
Dominion Resources Inc./VA	6.45
PG&E Corp.	4.51
American Electric Power Co. Inc.	4.42
Exelon Corp.	4.26
Sempra Energy	3.75
Edison International	3.46
PPL Corp.	3.44
TOTAL	52.78	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 17

About Fund Performance

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on November 1, 2016 and held through April 30, 2017, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.78%
AEROSPACE & DEFENSE — 2.23%
Arconic Inc.		20,614	$	563,382
Boeing Co. (The)		26,777		4,949,193
BWX Technologies Inc.		4,611		226,723
Curtiss-Wright Corp.		2,038		190,471
DigitalGlobe Inc.a,b		3,079		99,144
Esterline Technologies Corp.a		1,379		126,110
General Dynamics Corp.		13,344		2,585,934
HEICO Corp.		1,181		83,934
HEICO Corp. Class A		2,197		134,676
Hexcel Corp.		4,350		225,112
Huntington Ingalls Industries Inc.		2,162		434,324
KLX Inc.a		2,464		116,547
L3 Technologies Inc.		3,623		622,323
Lockheed Martin Corp.		11,710		3,155,259
Moog Inc. Class Aa		1,530		105,034
Northrop Grumman Corp.		8,189		2,014,166
Orbital ATK Inc.		2,661		263,439
Raytheon Co.		13,761		2,135,845
Rockwell Collins Inc.		7,646		795,872
Spirit AeroSystems Holdings Inc. Class A		5,728		327,412
Teledyne Technologies Inc.a		1,666		224,627
Textron Inc.		12,744		594,635
TransDigm Group Inc.		2,334		575,868
Triumph Group Inc.		2,145		56,199
United Technologies Corp.		35,248		4,194,160
				24,800,389
AIR FREIGHT & LOGISTICS — 0.62%
CH Robinson Worldwide Inc.		6,694		486,654
Expeditors International of Washington Inc.		8,552		479,682
FedEx Corp.		11,544		2,189,897
Hub Group Inc. Class Aa		1,574		61,622
United Parcel Service Inc. Class B		32,429		3,484,820
XPO Logistics Inc.a		3,794		187,385
				6,890,060
AIRLINES — 0.56%
Alaska Air Group Inc.		5,744		488,757
Allegiant Travel Co.		611		88,839
American Airlines Group Inc.		23,737		1,011,671
Delta Air Lines Inc.		34,265		1,557,002
JetBlue Airways Corp.a		15,869		346,420

Security	Shares		Value
Southwest Airlines Co.		28,821	$	1,620,317
Spirit Airlines Inc.a		3,301		189,048
United Continental Holdings Inc.a		13,428		942,780
				6,244,834
AUTO COMPONENTS — 0.35%
Adient PLC		4,388		322,781
Autoliv Inc.		4,125		413,284
BorgWarner Inc.		9,362		395,825
Cooper Tire & Rubber Co.		2,608		99,886
Dana Inc.		6,574		127,667
Delphi Automotive PLC		12,629		1,015,372
Gentex Corp.		13,552		279,849
Goodyear Tire & Rubber Co. (The)		11,848		429,253
Lear Corp.		3,244		462,789
Tenneco Inc.		2,529		159,403
Visteon Corp.a		1,518		156,278
				3,862,387
AUTOMOBILES — 0.62%
Ford Motor Co.		183,832		2,108,553
General Motors Co.		64,186		2,223,403
Harley-Davidson Inc.		8,360		474,932
Tesla Inc.a,b		5,842		1,834,797
Thor Industries Inc.		2,256		216,982
				6,858,667
BANKS — 6.20%
Associated Banc-Corp.		7,204		179,380
BancorpSouth Inc.		4,087		124,449
Bank of America Corp.		470,944		10,991,833
Bank of Hawaii Corp.		2,005		163,367
Bank of the Ozarks Inc.		4,202		199,469
BankUnited Inc.		4,749		167,592
BB&T Corp.		37,889		1,636,047
BOK Financial Corp.		1,047		88,252
Cathay General Bancorp.		3,548		135,001
CIT Group Inc.		9,538		441,705
Citigroup Inc.		130,158		7,694,941
Citizens Financial Group Inc.		23,829		874,763
Comerica Inc.		8,294		586,386
Commerce Bancshares Inc./MO		4,022		221,009
Cullen/Frost Bankers Inc.		2,650		250,133
East West Bancorp. Inc.		6,826		370,447
Fifth Third Bancorp.		35,174		859,301
First Financial Bankshares Inc.		3,014		120,409
First Horizon National Corp.		10,737		197,024
First Republic Bank/CA		7,202		665,897

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
FNB Corp./PA		15,027	$	213,984
Fulton Financial Corp.		8,283		152,821
Glacier Bancorp. Inc.		3,508		118,500
Hancock Holding Co.		3,882		181,289
Huntington Bancshares Inc./OH		50,753		652,684
IBERIABANK Corp.		2,397		190,202
International Bancshares Corp.		2,784		104,122
Investors Bancorp. Inc.		14,438		199,966
JPMorgan Chase & Co.		167,798		14,598,426
KeyCorp		50,299		917,454
M&T Bank Corp.		7,223		1,122,526
MB Financial Inc.		3,348		142,323
PacWest Bancorp.		5,685		280,782
People’s United Financial Inc.		16,135		281,878
PNC Financial Services Group Inc. (The)c		22,797		2,729,941
Popular Inc.		4,761		199,534
PrivateBancorp. Inc.		3,754		216,869
Prosperity Bancshares Inc.		3,248		218,266
Regions Financial Corp.		56,747		780,271
Signature Bank/New York NYa		2,519		348,756
SunTrust Banks Inc.		22,987		1,305,891
SVB Financial Groupa		2,466		433,868
Synovus Financial Corp.		5,749		240,308
TCF Financial Corp.		7,933		130,974
Texas Capital Bancshares Inc.a		2,283		173,736
Trustmark Corp.		3,263		108,397
U.S. Bancorp.		74,873		3,839,487
UMB Financial Corp.		2,071		150,127
Umpqua Holdings Corp.		10,101		178,485
United Bankshares Inc./WV		3,769		150,383
Valley National Bancorp.		12,660		148,882
Webster Financial Corp.		4,239		215,384
Wells Fargo & Co.		211,536		11,389,098
Western Alliance Bancorp.a		4,458		213,538
Wintrust Financial Corp.		2,395		169,710
Zions BanCorp.		9,585		383,688
				68,849,955
BEVERAGES — 1.79%
Brown-Forman Corp. Class A		2,785		133,847
Brown-Forman Corp. Class B		8,256		390,674
Coca-Cola Co. (The)		181,522		7,832,674
Constellation Brands Inc. Class A		8,131		1,402,923
Dr Pepper Snapple Group Inc.		8,655		793,231
Molson Coors Brewing Co. Class B		8,706		834,818

Security	Shares		Value
Monster Beverage Corp.a		18,852	$	855,504
PepsiCo Inc.		67,045		7,594,858
				19,838,529
BIOTECHNOLOGY — 2.85%
AbbVie Inc.		74,928		4,940,752
ACADIA Pharmaceuticals Inc.a		4,550		156,202
Agios Pharmaceuticals Inc.a,b		1,488		73,969
Alexion Pharmaceuticals Inc.a		10,584		1,352,424
Alkermes PLCa		7,181		418,293
Alnylam Pharmaceuticals Inc.a		3,268		175,165
Amgen Inc.		34,609		5,652,342
AquaBounty Technologies Inc.a		42		326
Biogen Inc.a		10,125		2,746,001
BioMarin Pharmaceutical Inc.a		8,055		771,991
Bioverativ Inc.a		5,070		298,167
Bluebird Bio Inc.a		1,893		168,382
Celgene Corp.a		36,576		4,537,253
Dyax Corp.a		7,366		16,868
Gilead Sciences Inc.		61,468		4,213,631
Incyte Corp.a		8,308		1,032,518
Intercept Pharmaceuticals Inc.a,b		796		89,431
Intrexon Corp.a,b		2,809		58,540
Ionis Pharmaceuticals Inc.a,b		5,587		269,238
Juno Therapeutics Inc.a,b		3,543		88,362
Kite Pharma Inc.a,b		2,298		188,620
Ligand Pharmaceuticals Inc.a,b		861		95,717
Myriad Genetics Inc.a,b		3,326		61,165
Neurocrine Biosciences Inc.a		4,207		224,654
Novavax Inc.a,b		12,941		10,561
OPKO Health Inc.a,b		17,280		134,266
Portola Pharmaceuticals Inc.a		2,560		102,374
Radius Health Inc.a,b		1,790		69,935
Regeneron Pharmaceuticals Inc.a		3,580		1,390,794
Seattle Genetics Inc.a,b		4,610		314,863
TESARO Inc.a,b		1,604		236,734
Ultragenyx Pharmaceutical Inc.a,b		1,775		114,292
United Therapeutics Corp.a		2,108		264,976
Vertex Pharmaceuticals Inc.a		11,707		1,384,938
				31,653,744
BUILDING PRODUCTS — 0.40%
Allegion PLC		4,554		358,126
AO Smith Corp.		6,926		373,173
Armstrong World Industries Inc.a,b		2,409		112,621
Fortune Brands Home & Security Inc.		7,105		452,873

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Johnson Controls International PLC		44,203	$	1,837,519
Lennox International Inc.		1,787		295,552
Masco Corp.		15,023		556,151
Owens Corning		5,213		317,211
USG Corp.a,b		4,346		131,684
				4,434,910
CAPITAL MARKETS — 2.73%
Affiliated Managers Group Inc.		2,670		442,125
Ameriprise Financial Inc.		7,253		927,296
Bank of New York Mellon Corp. (The)		48,843		2,298,552
BlackRock Inc.c		5,699		2,191,664
CBOE Holdings Inc.		4,281		352,797
Charles Schwab Corp. (The)		57,204		2,222,375
CME Group Inc.		15,997		1,858,691
Donnelley Financial Solutions Inc.a		1,200		26,664
E*TRADE Financial Corp.a		12,955		447,595
Eaton Vance Corp. NVS		5,413		232,380
FactSet Research Systems Inc.		1,830		298,766
Federated Investors Inc. Class B		3,986		106,905
Financial Engines Inc.		2,583		109,778
Franklin Resources Inc.		16,330		703,986
Goldman Sachs Group Inc. (The)		17,425		3,899,715
Intercontinental Exchange Inc.		28,045		1,688,309
Invesco Ltd.		18,799		619,239
Janus Capital Group Inc.		6,660		90,976
Lazard Ltd. Class A		6,124		262,965
Legg Mason Inc.		4,196		156,847
LPL Financial Holdings Inc.		3,815		160,383
MarketAxess Holdings Inc.		1,783		343,263
Moody’s Corp.		7,823		925,617
Morgan Stanley		67,395		2,922,921
MSCI Inc.		4,246		425,959
Nasdaq Inc.		5,406		372,311
Northern Trust Corp.		10,126		911,340
Raymond James Financial Inc.		6,058		451,442
S&P Global Inc.		12,137		1,628,664
SEI Investments Co.		6,200		314,402
State Street Corp.		16,839		1,412,792
Stifel Financial Corp.a		3,160		154,429
T Rowe Price Group Inc.		11,402		808,288
TD Ameritrade Holding Corp.		11,548		441,942
Waddell & Reed Financial Inc. Class A		3,683		66,257
				30,277,635

Security	Shares		Value
CHEMICALS — 2.26%
AdvanSix Inc.a		1,415	$	38,573
Air Products & Chemicals Inc.		10,195		1,432,398
Albemarle Corp.		5,310		578,312
Ashland Global Holdings Inc.		2,958		365,313
Axalta Coating Systems Ltd.a		10,312		323,487
Cabot Corp.		2,993		180,149
Celanese Corp. Series A		6,664		580,035
CF Industries Holdings Inc.		11,003		294,220
Chemours Co. (The)		8,552		344,560
Dow Chemical Co. (The)		52,354		3,287,831
Eastman Chemical Co.		6,906		550,754
Ecolab Inc.		12,365		1,596,198
EI du Pont de Nemours & Co.		40,550		3,233,862
FMC Corp.		6,304		461,642
GCP Applied Technologies Inc.a,b		3,497		115,051
HB Fuller Co.		2,413		127,479
Huntsman Corp.		9,269		229,593
Ingevity Corp.a		1,968		124,437
International Flavors & Fragrances Inc.		3,724		516,109
LyondellBasell Industries NV Class A		15,481		1,312,170
Minerals Technologies Inc.		1,699		133,711
Monsanto Co.		20,643		2,407,180
Mosaic Co. (The)		16,512		444,668
NewMarket Corp.		426		200,518
Olin Corp.		7,863		252,638
Platform Specialty Products Corp.a,b		10,300		145,951
PolyOne Corp.		3,759		147,390
PPG Industries Inc.		12,105		1,329,613
Praxair Inc.		13,398		1,674,482
RPM International Inc.		6,246		328,290
Scotts Miracle-Gro Co. (The) Class A		2,026		195,712
Sensient Technologies Corp.		2,118		173,252
Sherwin-Williams Co. (The)		3,830		1,281,824
Valspar Corp. (The)		3,398		382,071
Westlake Chemical Corp.		1,790		111,428
WR Grace & Co.		3,198		222,965
				25,123,866
COMMERCIAL SERVICES & SUPPLIES — 0.43%
Cintas Corp.		4,028		493,309
Clean Harbors Inc.a		2,521		146,495

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Copart Inc.a		9,560	$	295,404
Covanta Holding Corp.		5,877		85,510
Deluxe Corp.		2,254		162,085
Healthcare Services Group Inc.		3,304		151,687
Herman Miller Inc.		2,711		89,734
HNI Corp.		2,068		96,700
KAR Auction Services Inc.		6,410		279,604
LSC Communications Inc.		1,651		42,712
MSA Safety Inc.		1,525		118,721
Pitney Bowes Inc.		8,369		111,224
Republic Services Inc.		10,838		682,686
Rollins Inc.		4,592		178,307
RR Donnelley & Sons Co.		3,212		40,375
Stericycle Inc.a		4,012		342,384
Tetra Tech Inc.		2,634		115,764
Waste Management Inc.		19,079		1,388,570
				4,821,271
COMMUNICATIONS EQUIPMENT — 1.18%
Arista Networks Inc.a,b		1,974		275,649
ARRIS International PLCa		8,756		227,568
Brocade Communications Systems Inc.		19,534		245,542
Ciena Corp.a		6,788		155,513
Cisco Systems Inc.		235,251		8,015,002
CommScope Holding Co. Inc.a		8,980		377,519
EchoStar Corp. Class Aa		2,226		128,128
F5 Networks Inc.a		3,030		391,264
Finisar Corp.a		5,307		121,212
Harris Corp.		5,897		659,815
InterDigital Inc./PA		1,661		149,324
Juniper Networks Inc.		18,067		543,275
Lumentum Holdings Inc.a,b		2,705		115,639
Motorola Solutions Inc.		7,713		663,087
NetScout Systems Inc.a		4,401		165,698
Palo Alto Networks Inc.a,b		4,295		465,621
Plantronics Inc.		1,647		89,926
ViaSat Inc.a,b		2,564		164,173
Viavi Solutions Inc.a		10,608		106,080
				13,060,035
CONSTRUCTION & ENGINEERING — 0.17%
AECOMa		7,196		246,175
Chicago Bridge & Iron Co. NV		4,790		144,083
Dycom Industries Inc.a,b		1,428		150,883
EMCOR Group Inc.		2,805		184,401
Fluor Corp.		6,570		337,172

Security	Shares		Value
Jacobs Engineering Group Inc.		5,751	$	315,845
KBR Inc.		6,641		93,306
Quanta Services Inc.a		7,136		252,900
Valmont Industries Inc.		1,029		156,768
				1,881,533
CONSTRUCTION MATERIALS — 0.15%
Eagle Materials Inc.		2,221		213,149
Martin Marietta Materials Inc.		2,957		651,102
Vulcan Materials Co.		6,215		751,269
				1,615,520
CONSUMER FINANCE — 0.71%
Ally Financial Inc.		22,283		441,203
American Express Co.		35,504		2,813,692
Capital One Financial Corp.		22,598		1,816,427
Discover Financial Services		18,152		1,136,134
LendingClub Corp.a		14,200		83,070
Navient Corp.		13,414		203,893
PRA Group Inc.a,b		2,244		72,257
SLM Corp.a		20,415		256,004
Synchrony Financial		36,265		1,008,167
				7,830,847
CONTAINERS & PACKAGING — 0.48%
AptarGroup Inc.		2,865		230,060
Avery Dennison Corp.		4,246		353,310
Ball Corp.		8,170		628,191
Bemis Co. Inc.		4,332		194,637
Berry Global Group Inc.a		5,980		299,000
Crown Holdings Inc.a		6,523		365,875
Graphic Packaging Holding Co.		14,985		203,496
International Paper Co.		19,423		1,048,259
Owens-Illinois Inc.a		7,879		171,920
Packaging Corp. of America		4,421		436,706
Sealed Air Corp.		8,971		394,904
Silgan Holdings Inc.		1,750		106,085
Sonoco Products Co.		4,717		246,746
WestRock Co.		11,786		631,258
				5,310,447
DISTRIBUTORS — 0.12%
Genuine Parts Co.		6,952		639,723
LKQ Corp.a		14,328		447,607
Pool Corp.		1,924		230,149
				1,317,479
DIVERSIFIED CONSUMER SERVICES — 0.13%
Bright Horizons Family Solutions Inc.a,b		2,144		163,201
DeVry Education Group Inc.		2,554		96,669

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Graham Holdings Co. Class B		222	$	133,577
Grand Canyon Education Inc.a		2,241		168,434
H&R Block Inc.		9,752		241,752
Houghton Mifflin Harcourt Co.a,b		4,340		49,910
Service Corp. International/U.S.		8,862		285,534
ServiceMaster Global Holdings Inc.a		6,207		236,487
Sotheby’sa		2,182		103,339
				1,478,903
DIVERSIFIED FINANCIAL SERVICES — 1.39%
Berkshire Hathaway Inc. Class Ba		89,222		14,740,366
Leucadia National Corp.		15,225		386,563
Voya Financial Inc.		8,826		329,916
				15,456,845
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.98%
AT&T Inc.		288,509		11,433,612
CenturyLink Inc.		25,890		664,596
Frontier Communications Corp.		54,428		102,325
Level 3 Communications Inc.a		13,735		834,538
Verizon Communications Inc.		191,489		8,791,260
Zayo Group Holdings Inc.a,b		4,747		166,477
				21,992,808
ELECTRIC UTILITIES — 1.90%
ALLETE Inc.		2,360		164,988
Alliant Energy Corp.		10,723		421,628
American Electric Power Co. Inc.		23,152		1,570,400
Duke Energy Corp.		32,807		2,706,577
Edison International		15,310		1,224,341
El Paso Electric Co.		2,005		103,458
Entergy Corp.		8,487		647,219
Eversource Energy		14,974		889,456
Exelon Corp.		43,635		1,511,080
FirstEnergy Corp.		20,833		623,740
Great Plains Energy Inc.		10,084		298,386
Hawaiian Electric Industries Inc.		5,079		170,248
IDACORP Inc.		2,408		203,524
NextEra Energy Inc.		21,930		2,928,971
OGE Energy Corp.		9,323		324,254
PG&E Corp.		23,868		1,600,349
Pinnacle West Capital Corp.		5,254		447,063
PNM Resources Inc.		3,849		143,375
Portland General Electric Co.		4,257		193,012
PPL Corp.		31,986		1,218,986
Southern Co. (The)		46,667		2,324,017
Westar Energy Inc.		6,669		346,988
Xcel Energy Inc.		23,714		1,068,316
				21,130,376

Security	Shares		Value
ELECTRICAL EQUIPMENT — 0.58%
Acuity Brands Inc.		2,051	$	361,181
AMETEK Inc.		10,699		611,983
Eaton Corp. PLC		21,173		1,601,526
Emerson Electric Co.		30,215		1,821,360
EnerSys		1,988		165,223
Generac Holdings Inc.a,b		2,986		105,018
Hubbell Inc.		2,464		278,752
Regal Beloit Corp.		2,164		170,631
Rockwell Automation Inc.		6,037		949,922
Sensata Technologies Holding NVa,b		8,120		334,381
				6,399,977
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.73%
Amphenol Corp. Class A		14,390		1,040,541
Anixter International Inc.a		1,364		111,234
Arrow Electronics Inc.a		4,223		297,721
Avnet Inc.		5,998		232,063
Belden Inc.		2,003		139,609
CDW Corp./DE		7,521		444,416
Cognex Corp.		4,065		346,907
Corning Inc.		43,697		1,260,658
Dolby Laboratories Inc. Class A		2,690		141,844
FLIR Systems Inc.		6,351		233,272
IPG Photonics Corp.a		1,781		224,976
Itron Inc.a		1,544		100,128
Jabil Circuit Inc.		8,529		247,512
Keysight Technologies Inc.a		8,595		321,711
Littelfuse Inc.		1,070		164,940
National Instruments Corp.		5,092		177,762
SYNNEX Corp.		1,412		153,103
TE Connectivity Ltd.		16,707		1,292,621
Tech Data Corp.a		1,685		161,170
Trimble Inc.a		11,783		417,472
Universal Display Corp.b		2,157		192,728
VeriFone Systems Inc.a		5,205		96,501
Vishay Intertechnology Inc.		6,545		107,011
Zebra Technologies Corp. Class Aa,b		2,544		239,823
				8,145,723
ENERGY EQUIPMENT & SERVICES — 1.01%
Baker Hughes Inc.		19,909		1,181,997
Core Laboratories NV		2,032		225,186
Diamond Offshore Drilling Inc.a		3,119		44,976

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Dril-Quip Inc.a,b		1,840	$	94,852
Ensco PLC Class A		14,352		113,237
Halliburton Co.		40,818		1,872,730
Helmerich & Payne Inc.		5,052		306,353
Nabors Industries Ltd.		13,466		139,238
National Oilwell Varco Inc.		17,828		623,445
Noble Corp. PLC		11,227		53,890
Oceaneering International Inc.		4,591		121,157
Oil States International Inc.a		2,314		68,842
Patterson-UTI Energy Inc.		7,659		165,779
Rowan Companies PLC Class Aa		6,129		86,235
Schlumberger Ltd.		65,526		4,756,532
Superior Energy Services Inc.a		7,299		88,172
TechnipFMC PLCa		21,929		660,721
Transocean Ltd.a		17,908		197,525
U.S. Silica Holdings Inc.		3,332		138,278
Weatherford International PLCa,b		45,718		263,793
				11,202,938
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.87%
Acadia Realty Trust		3,934		114,401
Alexandria Real Estate Equities Inc.		4,153		467,254
American Campus Communities Inc.		6,179		292,823
American Homes 4 Rent Class A		10,946		252,305
American Tower Corp.		20,110		2,532,653
Apartment Investment & Management Co. Class A		7,267		317,859
Apple Hospitality REIT Inc.		7,455		139,632
AvalonBay Communities Inc.		6,427		1,220,102
Boston Properties Inc.		7,251		917,977
Brandywine Realty Trust		8,011		135,947
Brixmor Property Group Inc.		12,345		243,814
Camden Property Trust		4,101		337,635
Care Capital Properties Inc.b		4,077		109,549
CBL & Associates Properties Inc.b		7,746		71,650
Colony NorthStar Inc. Class A		26,121		341,401
Columbia Property Trust Inc.		5,567		125,257
CoreCivic Inc.		5,647		194,539
CoreSite Realty Corp.		1,535		150,200
Corporate Office Properties Trust		4,709		154,173
Cousins Properties Inc.		19,619		166,565
Crown Castle International Corp.		16,898		1,598,551
CubeSmart		8,290		210,069

Security	Shares		Value
CyrusOne Inc.b		3,391	$	185,284
DCT Industrial Trust Inc.		4,430		223,981
DDR Corp.		14,627		158,118
DiamondRock Hospitality Co.		9,363		103,087
Digital Realty Trust Inc.		7,485		859,577
Douglas Emmett Inc.		6,972		262,635
Duke Realty Corp.		16,689		462,786
DuPont Fabros Technology Inc.		3,595		185,322
EastGroup Properties Inc.		1,530		119,722
Education Realty Trust Inc.b		3,327		128,988
EPR Properties		3,021		219,657
Equinix Inc.b		3,650		1,524,605
Equity Commonwealtha		5,996		191,812
Equity Lifestyle Properties Inc.		3,804		307,782
Equity Residential		17,306		1,117,621
Essex Property Trust Inc.		3,075		751,745
Extra Space Storage Inc.		5,878		443,965
Federal Realty Investment Trust		3,368		440,838
First Industrial Realty Trust Inc.		5,327		149,902
Forest City Realty Trust Inc. Class A		10,266		232,012
Four Corners Property Trust Inc.		2,846		66,397
Gaming and Leisure Properties Inc.		9,202		320,230
GEO Group Inc. (The)		5,772		192,323
GGP Inc.		27,342		590,861
Gramercy Property Trust		6,431		178,717
HCP Inc.		21,864		685,436
Healthcare Realty Trust Inc.		5,581		183,057
Healthcare Trust of America Inc. Class A		6,558		209,135
Highwoods Properties Inc.		4,706		239,441
Hospitality Properties Trust		7,734		246,173
Host Hotels & Resorts Inc.b		34,771		624,139
Hudson Pacific Properties Inc.		7,258		249,385
Iron Mountain Inc.		11,391		395,951
Kilroy Realty Corp.		4,562		321,758
Kimco Realty Corp.		20,101		407,849
Kite Realty Group Trustb		3,849		78,366
Lamar Advertising Co. Class A		3,897		280,857
LaSalle Hotel Properties		5,367		153,282
Lexington Realty Trust		10,203		103,765
Liberty Property Trust		6,982		283,260
Life Storage Inc.		2,217		173,791
Macerich Co. (The)		5,608		350,107

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Mack-Cali Realty Corp.		4,336	$	117,289
Medical Properties Trust Inc.		14,740		192,652
Mid-America Apartment Communities Inc.		5,364		532,162
National Health Investors Inc.b		1,927		140,999
National Retail Properties Inc.		6,835		288,574
Omega Healthcare Investors Inc.		9,265		305,745
Outfront Media Inc.		6,582		172,185
Paramount Group Inc.		8,873		145,517
Park Hotels & Resorts Inc.		5,364		137,694
Parkway Inc.		1,880		37,882
Pebblebrook Hotel Trustb		3,323		98,892
Physicians Realty Trust		7,114		139,719
Piedmont Office Realty Trust Inc. Class Ab		6,754		147,575
Potlatch Corp.		2,009		90,505
Prologis Inc.		24,815		1,350,184
Public Storage		7,016		1,469,010
Quality Care Properties Inc.a		4,377		75,941
Rayonier Inc.		5,957		168,107
Realty Income Corp.b		12,764		744,779
Regency Centers Corp.		6,939		438,406
Retail Properties of America Inc. Class A		10,917		145,633
RLJ Lodging Trust		5,899		126,770
Ryman Hospitality Properties Inc.		2,440		155,623
SBA Communications Corp.a		5,751		727,444
Senior Housing Properties Trust		11,139		239,711
Simon Property Group Inc.		15,056		2,488,155
SL Green Realty Corp.		4,699		493,066
Spirit Realty Capital Inc.		22,693		213,768
STORE Capital Corp.b		7,990		191,680
Sun Communities Inc.		3,101		259,275
Sunstone Hotel Investors Inc.b		10,681		159,040
Tanger Factory Outlet Centers Inc.		4,603		143,568
Taubman Centers Inc.		2,804		175,390
UDR Inc.		12,669		473,060
Uniti Group Inc.a		6,406		175,909
Urban Edge Properties		4,150		105,825
Ventas Inc.		16,641		1,065,190
VEREIT Inc.		45,946		384,568
Vornado Realty Trust		8,094		778,967
Washington Prime Group Inc.		8,230		72,424
Washington REITb		3,457		109,483

Security	Shares		Value
Weingarten Realty Investors		5,385	$	176,466
Welltower Inc.		16,985		1,213,408
Weyerhaeuser Co.		35,239		1,193,545
WP Carey Inc.		5,042		315,629
Xenia Hotels & Resorts Inc.		5,030		87,824
				42,963,313
FOOD & STAPLES RETAILING — 1.81%
Casey’s General Stores Inc.		1,821		204,079
Costco Wholesale Corp.		20,651		3,665,966
CVS Health Corp.		48,248		3,977,565
Kroger Co. (The)		43,504		1,289,894
Rite Aid Corp.a		49,344		197,376
Sprouts Farmers Market Inc.a,b		5,895		131,517
Sysco Corp.		23,400		1,237,158
United Natural Foods Inc.a		2,420		100,503
Wal-Mart Stores Inc.		70,777		5,321,015
Walgreens Boots Alliance Inc.		39,995		3,461,167
Whole Foods Market Inc.		14,914		542,422
				20,128,662
FOOD PRODUCTS — 1.59%
Archer-Daniels-Midland Co.		26,785		1,225,414
B&G Foods Inc.		3,188		133,896
Bunge Ltd.		6,545		517,251
Campbell Soup Co.		9,171		527,699
Conagra Brands Inc.		19,379		751,518
Darling Ingredients Inc.a		8,111		122,719
Dean Foods Co.		4,125		81,428
Flowers Foods Inc.		8,576		168,175
General Mills Inc.		27,314		1,570,828
Hain Celestial Group Inc. (The)a		4,758		175,998
Hershey Co. (The)		6,610		715,202
Hormel Foods Corp.		12,649		443,727
Ingredion Inc.		3,386		419,255
JM Smucker Co. (The)		5,491		695,820
Kellogg Co.		11,882		843,622
Kraft Heinz Co. (The)		27,961		2,527,395
Lamb Weston Holdings Inc.		6,463		269,830
Lancaster Colony Corp.		882		111,044
McCormick & Co. Inc./MD		5,290		528,471
Mead Johnson Nutrition Co.		8,595		762,548
Mondelez International Inc. Class A		71,600		3,224,148
Pinnacle Foods Inc.		5,615		326,512
Post Holdings Inc.a		3,013		253,665
Snyder’s-Lance Inc.b		4,159		146,646

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
TreeHouse Foods Inc.a		2,637	$	231,001
Tyson Foods Inc. Class A		13,437		863,462
				17,637,274
GAS UTILITIES — 0.19%
Atmos Energy Corp.		5,001		405,181
National Fuel Gas Co.		4,045		224,012
New Jersey Resources Corp.		4,144		167,211
ONE Gas Inc.		2,533		174,346
South Jersey Industries Inc.		3,806		142,801
Southwest Gas Holdings Inc.		2,279		190,889
Spire Inc.		2,072		142,036
UGI Corp.		8,120		407,299
WGL Holdings Inc.		2,428		200,213
				2,053,988
HEALTH CARE EQUIPMENT & SUPPLIES — 2.61%
Abbott Laboratories		81,299		3,547,888
ABIOMED Inc.a		1,879		244,871
Alere Inc.a		4,092		201,204
Align Technology Inc.a		3,533		475,613
Baxter International Inc.		22,798		1,269,393
Becton Dickinson and Co.		9,972		1,864,465
Boston Scientific Corp.a		64,271		1,695,469
Cooper Companies Inc. (The)		2,273		455,350
CR Bard Inc.		3,391		1,042,665
Danaher Corp.		28,597		2,382,988
DENTSPLY SIRONA Inc.		10,843		685,711
DexCom Inc.a		4,040		314,958
Edwards Lifesciences Corp.a		9,979		1,094,397
Haemonetics Corp.a		2,534		106,124
Halyard Health Inc.a		2,331		92,075
Hill-Rom Holdings Inc.		2,861		216,406
Hologic Inc.a		13,075		590,336
IDEXX Laboratories Inc.a		4,143		694,905
Intuitive Surgical Inc.a		1,729		1,445,219
Medtronic PLC		64,340		5,346,011
NuVasive Inc.a,b		2,431		176,272
ResMed Inc.		6,618		449,958
STERIS PLC		4,008		295,790
Stryker Corp.		14,560		1,985,547
Teleflex Inc.		2,087		431,780
Varex Imaging Corp.a		1,745		58,562
Varian Medical Systems Inc.a		4,364		395,989
West Pharmaceutical Services Inc.		3,461		318,516
Zimmer Biomet Holdings Inc.		9,419		1,126,983
				29,005,445

Security	Shares		Value
HEALTH CARE PROVIDERS & SERVICES — 2.51%
Acadia Healthcare Co. Inc.a,b		3,696	$	161,072
Aetna Inc.		16,473		2,225,008
AmerisourceBergen Corp.		7,709		632,523
Anthem Inc.		12,381		2,202,456
Brookdale Senior Living Inc.a		9,086		118,027
Cardinal Health Inc.		14,852		1,078,107
Centene Corp.a		8,013		596,167
Chemed Corp.		786		158,285
Cigna Corp.		12,056		1,885,197
Community Health Systems Inc.a		5,312		45,736
DaVita Inc.a		7,394		510,260
Envision Healthcare Corp.a		5,560		311,527
Express Scripts Holding Co.a		28,512		1,748,926
HCA Holdings Inc.a		13,541		1,140,288
HealthSouth Corp.		4,208		197,355
Henry Schein Inc.a		3,751		651,924
Humana Inc.		7,037		1,562,073
Laboratory Corp. of America Holdingsa		4,800		672,720
LifePoint Health Inc.a		1,880		116,842
Magellan Health Inc.a		1,090		74,992
McKesson Corp.		9,984		1,380,687
MEDNAX Inc.a		4,417		266,610
Molina Healthcare Inc.a		1,942		96,692
Owens & Minor Inc.		2,838		98,337
Patterson Companies Inc.		3,758		167,193
Quest Diagnostics Inc.		6,496		685,393
Tenet Healthcare Corp.a,b		3,703		58,026
UnitedHealth Group Inc.		45,195		7,903,702
Universal Health Services Inc. Class B		4,235		511,419
VCA Inc.a		3,853		352,819
WellCare Health Plans Inc.a		2,087		320,167
				27,930,530
HEALTH CARE TECHNOLOGY — 0.14%
Allscripts Healthcare Solutions Inc.a		8,956		107,203
athenahealth Inc.a,b		1,888		185,043
Cerner Corp.a		13,816		894,586
Medidata Solutions Inc.a,b		2,544		166,454
Veeva Systems Inc.a,b		4,737		253,998
				1,607,284
HOTELS, RESTAURANTS & LEISURE — 2.00%
Aramark		11,551		421,843
Bloomin’ Brands Inc.		4,941		107,170

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Brinker International Inc.		2,330	$	102,963
Buffalo Wild Wings Inc.a		808		127,300
Carnival Corp.		19,648		1,213,657
Cheesecake Factory Inc. (The)		2,018		129,475
Chipotle Mexican Grill Inc.a		1,341		636,264
Choice Hotels International Inc.		1,608		100,822
Cracker Barrel Old Country Store Inc.b		1,138		182,296
Darden Restaurants Inc.		5,831		496,743
Domino’s Pizza Inc.		2,284		414,295
Dunkin’ Brands Group Inc.		4,230		236,288
Hilton Grand Vacations Inc.a		2,670		89,365
Hilton Worldwide Holdings Inc.		8,907		525,246
Hyatt Hotels Corp. Class Aa		1,797		99,733
Jack in the Box Inc.		1,506		153,567
Las Vegas Sands Corp.		17,243		1,017,165
Marriott International Inc./MD Class A		14,808		1,398,171
Marriott Vacations Worldwide Corp.		1,197		131,885
McDonald’s Corp.		38,497		5,386,885
MGM Resorts International		22,561		692,848
Norwegian Cruise Line Holdings Ltd.a		7,758		418,389
Panera Bread Co. Class Aa		1,009		315,494
Royal Caribbean Cruises Ltd.		7,816		833,186
Six Flags Entertainment Corp.		3,951		247,372
Starbucks Corp.		68,544		4,116,753
Texas Roadhouse Inc.		2,914		136,608
Vail Resorts Inc.		1,903		376,147
Wendy’s Co. (The)		8,928		131,599
Wyndham Worldwide Corp.		4,917		468,639
Wynn Resorts Ltd.		3,772		463,994
Yum! Brands Inc.		15,827		1,040,625
				22,212,787
HOUSEHOLD DURABLES — 0.49%
CalAtlantic Group Inc.		3,380		122,424
DR Horton Inc.		15,854		521,438
Garmin Ltd.		5,503		279,772
Helen of Troy Ltd.a,b		1,263		118,722
Leggett & Platt Inc.		6,239		327,797
Lennar Corp. Class A		9,567		483,133
Lennar Corp. Class B		339		14,445
Mohawk Industries Inc.a		2,948		692,161
Newell Brands Inc.		22,563		1,077,158

Security	Shares		Value
NVR Inc.a		164	$	346,245
PulteGroup Inc.		13,468		305,320
Tempur Sealy International Inc.a,b		2,119		99,487
Toll Brothers Inc.		6,817		245,344
Tupperware Brands Corp.		2,455		176,293
Whirlpool Corp.		3,518		653,222
				5,462,961
HOUSEHOLD PRODUCTS — 1.56%
Church & Dwight Co. Inc.		11,943		591,537
Clorox Co. (The)		6,037		807,087
Colgate-Palmolive Co.		41,407		2,982,960
Energizer Holdings Inc.		2,986		176,861
Kimberly-Clark Corp.		16,678		2,163,970
Procter & Gamble Co. (The)		120,094		10,487,809
Spectrum Brands Holdings Inc.		1,132		162,702
				17,372,926
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.07%
AES Corp./VA		30,849		348,902
Calpine Corp.a,b		16,471		168,004
Dynegy Inc.a,b		6,416		41,191
NRG Energy Inc.		14,793		250,002
				808,099
INDUSTRIAL CONGLOMERATES — 2.11%
3M Co.		28,021		5,487,352
Carlisle Companies Inc.		3,053		309,544
General Electric Co.		409,859		11,881,812
Honeywell International Inc.		35,790		4,693,501
Roper Technologies Inc.		4,796		1,048,885
				23,421,094
INSURANCE — 2.94%
Aflac Inc.		18,900		1,415,232
Alleghany Corp.a		684		417,719
Allied World Assurance Co. Holdings AG		4,097		217,510
Allstate Corp. (The)		17,125		1,392,091
American Financial Group Inc./OH		3,393		330,173
American International Group Inc.		43,636		2,657,869
AmTrust Financial Services Inc.		4,882		78,356
Aon PLC		12,357		1,480,863
Arch Capital Group Ltd.a		5,740		556,608
Arthur J Gallagher & Co.		8,366		466,906
Aspen Insurance Holdings Ltd.		2,748		143,858

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Assurant Inc.		2,668	$	256,768
Assured Guaranty Ltd.		6,109		232,936
Axis Capital Holdings Ltd.		4,141		272,892
Brown & Brown Inc.		5,521		236,851
Chubb Ltd.		21,846		2,998,364
Cincinnati Financial Corp.		7,102		511,983
CNO Financial Group Inc.		7,798		164,304
Erie Indemnity Co. Class A		863		106,857
Everest Re Group Ltd.		1,821		458,364
First American Financial Corp.		5,146		223,388
FNF Group		12,646		517,854
Genworth Financial Inc. Class Aa		21,160		85,486
Hanover Insurance Group Inc. (The)		2,027		178,923
Hartford Financial Services Group Inc. (The)		17,467		844,704
Kemper Corp.		2,204		86,727
Lincoln National Corp.		10,650		702,155
Loews Corp.		13,010		606,526
Markel Corp.a		662		641,875
Marsh & McLennan Companies Inc.		24,178		1,792,315
Mercury General Corp.		1,702		104,656
MetLife Inc.		50,980		2,641,274
Old Republic International Corp.		11,633		240,570
Primerica Inc.		2,078		174,136
Principal Financial Group Inc.		12,642		823,373
ProAssurance Corp.		2,364		146,332
Progressive Corp. (The)		27,272		1,083,244
Prudential Financial Inc.		20,245		2,166,822
Reinsurance Group of America Inc.		2,949		368,743
RenaissanceRe Holdings Ltd.		1,836		261,024
RLI Corp.		1,833		104,884
Torchmark Corp.		5,107		391,758
Travelers Companies Inc. (The)		13,169		1,602,141
Unum Group		10,727		496,982
Validus Holdings Ltd.		3,718		205,531
White Mountains Insurance Group Ltd.		213		182,954
Willis Towers Watson PLC		5,945		788,426
WR Berkley Corp.		4,604		312,980
XL Group Ltd.		12,501		523,167
				32,695,454

Security	Shares		Value
INTERNET & DIRECT MARKETING RETAIL — 2.39%
Amazon.com Inc.a		18,605	$	17,209,439
Expedia Inc.		5,663		757,256
Groupon Inc.a,b		19,749		77,416
HSN Inc.		1,476		54,464
Liberty Expedia Holdings Inc. Class Aa		2,584		124,833
Liberty Interactive Corp. QVC Group Series Aa		20,784		440,205
Liberty TripAdvisor Holdings Inc. Class Aa		3,401		49,995
Liberty Ventures Series Aa		3,877		208,777
Netflix Inc.a		20,187		3,072,461
Priceline Group Inc. (The)a		2,313		4,271,695
Shutterfly Inc.a,b		1,492		77,435
TripAdvisor Inc.a		5,258		236,663
				26,580,639
INTERNET SOFTWARE & SERVICES — 4.37%
Akamai Technologies Inc.a		8,151		496,722
Alphabet Inc. Class Aa		13,958		12,904,450
Alphabet Inc. Class Ca		13,882		12,576,537
CoStar Group Inc.a		1,556		374,825
eBay Inc.a		47,595		1,590,149
Facebook Inc. Class Aa		110,637		16,623,209
GrubHub Inc.a,b		3,891		167,235
IAC/InterActiveCorpa		3,466		287,713
j2 Global Inc.		2,279		205,657
Pandora Media Inc.a,b		10,570		114,684
Twitter Inc.a,b		28,205		464,818
VeriSign Inc.a,b		4,175		371,241
Yahoo! Inc.a		41,124		1,982,588
Yelp Inc.a		2,904		102,831
Zillow Group Inc. Class Aa		2,220		85,448
Zillow Group Inc. Class Ca		5,021		195,819
				48,543,926
IT SERVICES — 3.79%
Accenture PLC Class A		29,296		3,553,605
Acxiom Corp.a		3,710		107,219
Alliance Data Systems Corp.		2,633		657,276
Amdocs Ltd.		6,824		417,902
Automatic Data Processing Inc.		21,136		2,208,501
Booz Allen Hamilton Holding Corp.		6,932		249,067
Broadridge Financial Solutions Inc.		5,498		384,530

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
CACI International Inc. Class Aa		1,101	$	129,918
Cognizant Technology Solutions Corp. Class Aa		28,658		1,726,071
Conduent Inc.a		7,918		129,143
Convergys Corp.		4,362		98,189
CoreLogic Inc./U.S.a		4,079		174,336
CSRA Inc.		6,768		196,813
DST Systems Inc.		1,507		185,527
DXC Technology Co.a		13,417		1,010,837
EPAM Systems Inc.a		2,081		160,237
Euronet Worldwide Inc.a,b		2,500		206,550
Fidelity National Information Services Inc.		15,486		1,303,766
First Data Corp. Class Aa		8,869		138,534
Fiserv Inc.a		10,102		1,203,552
FleetCor Technologies Inc.a		4,344		613,112
Gartner Inc.a		4,198		478,950
Genpact Ltd.		6,301		153,870
Global Payments Inc.		7,211		589,571
International Business Machines Corp.		40,321		6,463,053
Jack Henry & Associates Inc.		3,589		347,846
Leidos Holdings Inc.		6,615		348,346
MasterCard Inc. Class A		44,286		5,151,348
MAXIMUS Inc.		3,040		185,410
NeuStar Inc. Class Aa		2,171		72,077
Paychex Inc.		14,979		887,955
PayPal Holdings Inc.a		52,878		2,523,338
Sabre Corp.		9,786		229,090
Science Applications International Corp.		2,041		148,973
Teradata Corp.a,b		6,019		175,634
Total System Services Inc.		7,764		444,955
Vantiv Inc. Class Aa		7,587		470,698
Visa Inc. Class A		87,283		7,961,955
Western Union Co. (The)		22,814		453,086
WEX Inc.a		1,772		179,787
				42,120,627
LEISURE PRODUCTS — 0.13%
Brunswick Corp./DE		4,224		239,712
Hasbro Inc.		5,296		524,887
Mattel Inc.		16,032		359,437
Polaris Industries Inc.b		2,810		239,581
Vista Outdoor Inc.a		2,774		54,259
				1,417,876

Security	Shares		Value
LIFE SCIENCES TOOLS & SERVICES — 0.73%
Agilent Technologies Inc.		15,118	$	832,246
Bio-Rad Laboratories Inc. Class Aa		990		216,077
Bio-Techne Corp.		1,797		192,423
Bruker Corp.		4,768		116,292
Charles River Laboratories International Inc.a		2,280		204,516
Illumina Inc.a		6,899		1,275,349
Mettler-Toledo International Inc.a		1,225		628,940
PAREXEL International Corp.a		2,327		148,532
PerkinElmer Inc.		5,235		311,011
Quintiles IMS Holdings Inc.a,b		6,109		514,867
Thermo Fisher Scientific Inc.		18,310		3,027,192
Waters Corp.a		3,753		637,597
				8,105,042
MACHINERY — 1.82%
Actuant Corp. Class A		2,797		76,358
AGCO Corp.		3,228		206,560
Allison Transmission Holdings Inc.		7,751		299,809
Caterpillar Inc.		27,495		2,811,639
Colfax Corp.a		4,657		188,469
Crane Co.		2,428		194,021
Cummins Inc.		7,290		1,100,353
Deere & Co.		13,798		1,539,995
Donaldson Co. Inc.		6,109		282,725
Dover Corp.		7,355		580,162
Flowserve Corp.		6,095		310,053
Fortive Corp.		14,089		891,270
Graco Inc.		2,627		283,322
Hillenbrand Inc.		3,044		112,324
IDEX Corp.		3,577		374,727
Illinois Tool Works Inc.		14,686		2,027,990
Ingersoll-Rand PLC		12,184		1,081,330
ITT Inc.		4,164		175,429
Kennametal Inc.		3,854		160,249
Lincoln Electric Holdings Inc.		2,842		253,023
Middleby Corp. (The)a,b		2,706		368,368
Mueller Industries Inc.		2,779		89,039
Nordson Corp.		2,472		309,494
Oshkosh Corp.		3,454		239,673
PACCAR Inc.		16,555		1,104,715
Parker-Hannifin Corp.		6,238		1,003,070
Pentair PLC		7,930		511,564

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Snap-on Inc.		2,734	$	458,027
Stanley Black & Decker Inc.		7,184		978,102
Terex Corp.		4,946		173,011
Timken Co. (The)		3,203		154,545
Toro Co. (The)		5,158		334,857
Trinity Industries Inc.		7,058		189,860
WABCO Holdings Inc.a		2,389		283,980
Wabtec Corp./DE		4,059		340,510
Welbilt Inc.a,b		6,622		135,751
Woodward Inc.		2,524		170,799
Xylem Inc./NY		8,537		438,887
				20,234,060
MARINE — 0.02%
Kirby Corp.a,b		2,536		179,042
				179,042
MEDIA — 3.24%
AMC Networks Inc. Class Aa		2,649		158,092
Cable One Inc.		219		149,327
CBS Corp. Class A		341		22,932
CBS Corp. Class B NVS		17,512		1,165,599
Charter Communications Inc. Class Aa		10,089		3,482,319
Cinemark Holdings Inc.		4,992		215,654
Comcast Corp. Class A		222,326		8,712,956
Discovery Communications Inc. Class Aa,b		7,041		202,640
Discovery Communications Inc. Class C NVSa		10,284		287,746
DISH Network Corp. Class Aa		10,599		683,000
Gannett Co. Inc.		5,129		42,878
Interpublic Group of Companies Inc. (The)		18,260		430,388
John Wiley & Sons Inc. Class A		2,078		109,511
Liberty Broadband Corp. Class Aa		1,255		112,862
Liberty Broadband Corp. Class Ca		3,106		283,143
Liberty Global PLC Class Ba		57		2,058
Liberty Global PLC Series Aa,b		11,945		423,092
Liberty Global PLC Series C NVSa		30,016		1,038,854
Liberty Global PLC LiLAC Class Aa		2,587		55,543
Liberty Global PLC LiLAC Class Ca,b		5,469		119,443
Liberty Media Corp.-Liberty Formula One Class Aa		1,117		37,877

Security	Shares		Value
Liberty Media Corp.-Liberty Formula One Class Ca,b		1,904	$	66,678
Liberty Media Corp.-Liberty SiriusXM Class Aa		4,047		154,191
Liberty Media Corp.-Liberty SiriusXM Class Ca		8,184		310,910
Lions Gate Entertainment Corp. Class A		2,793		73,093
Lions Gate Entertainment Corp. Class Ba		5,354		127,693
Live Nation Entertainment Inc.a		6,138		197,398
Madison Square Garden Co. (The)a		698		140,835
Meredith Corp.		1,667		97,603
New York Times Co. (The) Class A		5,654		81,700
News Corp. Class A		18,073		229,889
News Corp. Class B		5,761		74,893
Omnicom Group Inc.		11,007		903,895
Regal Entertainment Group Class A		4,896		108,055
Scripps Networks Interactive Inc. Class A		4,530		338,482
Sinclair Broadcast Group Inc. Class A		3,428		135,235
Sirius XM Holdings Inc.b		79,522		393,634
TEGNA Inc.		10,256		261,323
Time Inc.		4,379		66,561
Time Warner Inc.		36,429		3,616,307
Tribune Media Co. Class A		3,339		122,074
Twenty-First Century Fox Inc. Class A		49,478		1,511,058
Twenty-First Century Fox Inc. Class B		22,905		683,943
Viacom Inc. Class A		330		14,718
Viacom Inc. Class B NVS		16,358		696,196
Walt Disney Co. (The)		68,339		7,899,988
				36,042,266
METALS & MINING — 0.40%
Alcoa Corp.		7,059		238,100
Allegheny Technologies Inc.		5,373		98,595
Carpenter Technology Corp.		2,235		90,741
Commercial Metals Co.		5,581		104,030
Compass Minerals International Inc.		1,527		100,782

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Freeport-McMoRan Inc.a		62,763	$	800,228
Newmont Mining Corp.		25,055		847,110
Nucor Corp.		14,935		915,964
Reliance Steel & Aluminum Co.		3,447		271,692
Royal Gold Inc.		3,096		218,825
Steel Dynamics Inc.		11,472		414,598
Stillwater Mining Co.a		5,803		104,338
U.S. Steel Corp.		8,232		183,738
Worthington Industries Inc.		1,959		85,216
				4,473,957
MORTGAGE REAL ESTATE INVESTMENT — 0.20%
AGNC Investment Corp.		15,810		333,117
Annaly Capital Management Inc.		47,062		555,802
Blackstone Mortgage Trust Inc. Class Ab		4,314		133,216
Chimera Investment Corp.b		8,298		168,947
CYS Investments Inc.b		7,810		66,619
Invesco Mortgage Capital Inc.		5,427		88,515
MFA Financial Inc.		17,877		148,558
New Residential Investment Corp.		14,676		244,649
Starwood Property Trust Inc.		12,015		272,620
Two Harbors Investment Corp.		16,412		163,956
				2,175,999
MULTI-UTILITIES — 1.00%
Ameren Corp.		11,361		621,333
Avista Corp.		2,984		120,375
Black Hills Corp.		2,523		171,614
CenterPoint Energy Inc.		20,296		579,045
CMS Energy Corp.		13,066		593,196
Consolidated Edison Inc.		14,394		1,141,156
Dominion Resources Inc./VA		29,575		2,289,992
DTE Energy Co.		8,391		877,615
MDU Resources Group Inc.		9,371		252,080
NiSource Inc.		15,296		370,928
NorthWestern Corp.		2,290		136,896
Public Service Enterprise Group Inc.		23,789		1,047,905
SCANA Corp.		6,705		444,609
Sempra Energy		11,796		1,333,184
Vectren Corp.		3,973		236,076
WEC Energy Group Inc.		14,869		899,872
				11,115,876
MULTILINE RETAIL — 0.40%
Big Lots Inc.		2,158		108,957
Dillard’s Inc. Class A		1,165		64,506

Security	Shares		Value
Dollar General Corp.		11,907	$	865,758
Dollar Tree Inc.a		11,098		918,582
JC Penney Co. Inc.a,b		14,617		78,639
Kohl’s Corp.		8,211		320,475
Macy’s Inc.		14,348		419,249
Nordstrom Inc.		5,403		260,803
Target Corp.		26,085		1,456,847
				4,493,816
OIL, GAS & CONSUMABLE FUELS — 4.99%
Anadarko Petroleum Corp.		26,205		1,494,209
Antero Resources Corp.a,b		6,650		140,914
Apache Corp.		17,858		868,613
Cabot Oil & Gas Corp.		22,522		523,411
Carrizo Oil & Gas Inc.a		2,797		70,345
Cheniere Energy Inc.a		11,075		502,251
Chesapeake Energy Corp.a		36,363		191,269
Chevron Corp.		88,931		9,488,938
Cimarex Energy Co.		4,458		520,159
Concho Resources Inc.a		6,976		883,580
ConocoPhillips		57,962		2,776,959
CONSOL Energy Inc.a		8,213		124,673
Continental Resources Inc./OKa,b		4,078		172,948
Devon Energy Corp.		24,754		977,536
Diamondback Energy Inc.a		4,244		423,721
Energen Corp.a		4,470		232,395
EOG Resources Inc.		27,054		2,502,495
EQT Corp.		8,202		476,864
Exxon Mobil Corp.		194,788		15,904,440
Gulfport Energy Corp.a		7,209		114,479
Hess Corp.		12,667		618,530
HollyFrontier Corp.		8,189		230,439
Kinder Morgan Inc./DE		89,986		1,856,411
Marathon Oil Corp.		39,726		590,726
Marathon Petroleum Corp.		24,848		1,265,757
Murphy Oil Corp.		7,571		198,209
Newfield Exploration Co.a		9,429		326,432
Noble Energy Inc.		20,504		662,894
Oasis Petroleum Inc.a		11,189		133,597
Occidental Petroleum Corp.		35,984		2,214,455
ONEOK Inc.		9,996		525,890
Parsley Energy Inc. Class Aa		10,355		308,476
PBF Energy Inc.		5,118		114,234
Phillips 66		20,777		1,653,018
Pioneer Natural Resources Co.		7,994		1,382,882
QEP Resources Inc.a		10,947		129,284

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Range Resources Corp.		8,669	$	229,642
Rice Energy Inc.a,b		5,360		114,114
SemGroup Corp. Class A		2,484		82,717
SM Energy Co.		4,497		101,587
Southwestern Energy Co.a		22,812		171,318
Targa Resources Corp.		9,201		507,251
Tesoro Corp.		5,445		434,021
Valero Energy Corp.		21,216		1,370,766
Western Refining Inc.		3,784		130,510
Whiting Petroleum Corp.a		13,641		113,220
Williams Companies Inc. (The)		38,882		1,190,956
World Fuel Services Corp.		3,220		118,593
WPX Energy Inc.a,b		19,025		226,968
				55,393,096
PAPER & FOREST PRODUCTS — 0.03%
Domtar Corp.		3,004		119,109
KapStone Paper and Packaging Corp.		3,928		82,841
Louisiana-Pacific Corp.a		6,826		175,701
				377,651
PERSONAL PRODUCTS — 0.14%
Avon Products Inc.a		20,830		101,026
Edgewell Personal Care Co.a		2,708		193,595
Estee Lauder Companies Inc. (The) Class A		10,414		907,476
Herbalife Ltd.a,b		3,236		204,709
Nu Skin Enterprises Inc. Class A		2,386		131,779
				1,538,585
PHARMACEUTICALS — 4.46%
Akorn Inc.a		4,208		140,758
Allergan PLC		15,769		3,845,428
Bristol-Myers Squibb Co.		78,659		4,408,837
Catalent Inc.a		5,698		166,837
Eli Lilly & Co.		45,668		3,747,516
Endo International PLCa		9,594		109,084
Horizon Pharma PLCa		7,497		115,304
Impax Laboratories Inc.a		3,281		46,098
Jazz Pharmaceuticals PLCa,b		2,794		445,028
Johnson & Johnson		127,463		15,737,857
Mallinckrodt PLCa		5,010		235,069
Medicines Co. (The)a		3,363		165,863
Merck & Co. Inc.		128,977		8,039,136
Mylan NVa		21,598		806,685
Pacira Pharmaceuticals Inc./DEa,b		1,665		80,836
Perrigo Co. PLC		6,723		497,099

Security	Shares		Value
Pfizer Inc.		279,598	$	9,483,964
Prestige Brands Holdings Inc.a		2,397		137,612
Zoetis Inc.		23,168		1,299,957
				49,508,968
PROFESSIONAL SERVICES — 0.33%
Advisory Board Co. (The)a,b		1,906		97,397
Dun & Bradstreet Corp. (The)		1,722		188,748
Equifax Inc.		5,641		763,284
FTI Consulting Inc.a		1,816		62,815
IHS Markit Ltd.a		15,974		693,272
ManpowerGroup Inc.		3,140		317,077
Nielsen Holdings PLC		15,869		652,692
Robert Half International Inc.		5,946		273,813
Verisk Analytics Inc. Class Aa		7,265		601,615
				3,650,713
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.12%
Alexander & Baldwin Inc.		2,096		96,437
CBRE Group Inc. Class Aa		13,993		501,089
Howard Hughes Corp. (The)a,b		1,651		203,255
Jones Lang LaSalle Inc.		2,148		246,719
Realogy Holdings Corp.		6,867		209,787
St. Joe Co. (The)a,b		3,212		56,210
				1,313,497
ROAD & RAIL — 0.89%
Avis Budget Group Inc.a		4,011		122,336
CSX Corp.		43,614		2,217,336
Genesee & Wyoming Inc. Class Aa		2,859		193,726
Hertz Global Holdings Inc.a,b		3,184		52,504
JB Hunt Transport Services Inc.		4,106		368,144
Kansas City Southern		4,992		449,629
Landstar System Inc.		1,927		164,662
Norfolk Southern Corp.		13,671		1,606,206
Old Dominion Freight Line Inc.		3,276		289,992
Ryder System Inc.		2,451		166,447
Union Pacific Corp.		38,270		4,284,709
				9,915,691
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.20%
Advanced Micro Devices Inc.a		36,399		484,107
Analog Devices Inc.		17,159		1,307,516
Applied Materials Inc.		50,625		2,055,881
Broadcom Ltd.		18,860		4,164,477
Cavium Inc.a,b		3,192		219,769
Cirrus Logic Inc.a		3,028		194,852

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Cree Inc.a,b		4,519	$	98,876
Cypress Semiconductor Corp.		15,081		211,285
First Solar Inc.a,b		3,737		110,428
Integrated Device Technology Inc.a		6,433		154,328
Intel Corp.		222,105		8,029,096
KLA-Tencor Corp.		7,409		727,712
Lam Research Corp.		7,628		1,104,916
Marvell Technology Group Ltd.		20,679		310,599
Maxim Integrated Products Inc.		13,358		589,756
Microchip Technology Inc.		10,142		766,532
Micron Technology Inc.a		48,507		1,342,189
Microsemi Corp.a		5,414		254,133
NVIDIA Corp.		27,625		2,881,287
ON Semiconductor Corp.a,b		19,515		276,723
Qorvo Inc.a		5,933		403,622
QUALCOMM Inc.		69,469		3,733,264
Semtech Corp.a		3,086		105,387
Silicon Laboratories Inc.a		1,922		136,750
Skyworks Solutions Inc.		8,658		863,549
Synaptics Inc.a		1,641		89,877
Teradyne Inc.		9,283		327,411
Texas Instruments Inc.		47,022		3,723,202
Versum Materials Inc.		5,024		160,868
Xilinx Inc.		11,637		734,411
				35,562,803
SOFTWARE — 4.79%
ACI Worldwide Inc.a		5,588		120,086
Activision Blizzard Inc.		32,567		1,701,626
Adobe Systems Inc.a		23,245		3,108,786
ANSYS Inc.a		3,994		439,979
Aspen Technology Inc.a		3,574		219,765
Autodesk Inc.a		9,209		829,455
Blackbaud Inc.		2,299		184,863
CA Inc.		14,860		487,854
Cadence Design Systems Inc.a		13,075		425,853
CDK Global Inc.		6,827		443,823
Citrix Systems Inc.a		7,308		591,510
CommVault Systems Inc.a		1,987		100,244
Dell Technologies Inc. Class Va		10,539		707,272
Electronic Arts Inc.a		14,514		1,376,218
Ellie Mae Inc.a		1,630		165,869
Fair Isaac Corp.b		1,467		198,749
FireEye Inc.a,b		6,926		86,644
Fortinet Inc.a		6,929		270,231
Guidewire Software Inc.a,b		3,406		209,435

Security	Shares		Value
Intuit Inc.		11,392	$	1,426,392
Manhattan Associates Inc.a		3,236		151,089
Microsoft Corp.		363,012		24,851,802
Nuance Communications Inc.a		12,053		215,628
Oracle Corp.		140,816		6,331,087
Proofpoint Inc.a,b		1,994		150,288
PTC Inc.a		5,340		288,627
Red Hat Inc.a		8,363		736,613
salesforce.com Inc.a		30,700		2,643,884
ServiceNow Inc.a		7,745		731,748
Splunk Inc.a,b		6,333		407,275
SS&C Technologies Holdings Inc.		7,899		290,209
Symantec Corp.		29,227		924,450
Synopsys Inc.a		7,144		526,513
Tableau Software Inc. Class Aa,b		2,714		145,688
Take-Two Interactive Software Inc.a		4,738		297,783
Tyler Technologies Inc.a		1,543		252,419
Ultimate Software Group Inc. (The)a		1,412		286,170
Verint Systems Inc.a,b		3,060		120,258
VMware Inc. Class Aa,b		3,345		314,831
Workday Inc. Class Aa		5,718		499,753
				53,260,769
SPECIALTY RETAIL — 2.34%
Aaron’s Inc.		3,106		111,630
Abercrombie & Fitch Co. Class A		2,836		34,004
Advance Auto Parts Inc.		3,498		497,206
American Eagle Outfitters Inc.		8,028		113,115
Asbury Automotive Group Inc.a,b		951		58,201
Ascena Retail Group Inc.a		7,319		28,617
AutoNation Inc.a		3,164		132,888
AutoZone Inc.a		1,341		928,227
Bed Bath & Beyond Inc.		7,144		276,830
Best Buy Co. Inc.		12,715		658,764
Burlington Stores Inc.a		3,356		331,975
Cabela’s Inc.a		2,358		128,747
CarMax Inc.a,b		8,810		515,385
Chico’s FAS Inc.		5,987		82,740
CST Brands Inc.		3,580		172,878
Dick’s Sporting Goods Inc.		4,180		211,299
DSW Inc. Class A		3,338		68,830
Five Below Inc.a,b		2,475		121,572
Foot Locker Inc.		6,232		481,983
GameStop Corp. Class A		4,756		107,914
Gap Inc. (The)		10,194		267,083

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
Genesco Inc.a		927	$	49,409
GNC Holdings Inc. Class Ab		3,165		24,624
Group 1 Automotive Inc.		952		65,640
Home Depot Inc. (The)		57,225		8,932,822
L Brands Inc.		11,393		601,664
Lithia Motors Inc. Class A		1,080		103,194
Lowe’s Companies Inc.		40,617		3,447,571
Murphy USA Inc.a		1,594		110,895
O’Reilly Automotive Inc.a		4,315		1,070,767
Office Depot Inc.		23,232		115,463
Ross Stores Inc.		18,437		1,198,405
Sally Beauty Holdings Inc.a		6,795		129,241
Signet Jewelers Ltd.		3,264		214,902
Staples Inc.		30,743		300,359
Tiffany & Co.		5,042		462,099
TJX Companies Inc. (The)		30,554		2,402,767
Tractor Supply Co.		6,162		381,489
Ulta Salon Cosmetics & Fragrance Inc.a		2,730		768,331
Urban Outfitters Inc.a,b		4,192		95,913
Williams-Sonoma Inc.		3,845		207,822
				26,013,265
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 3.73%
3D Systems Corp.a,b		5,325		84,295
Apple Inc.		246,464		35,404,554
Diebold Nixdorf Inc.		3,467		97,769
Electronics For Imaging Inc.a,b		2,303		105,431
Hewlett Packard Enterprise Co.		78,055		1,454,165
HP Inc.		79,374		1,493,819
NCR Corp.a,b		5,898		243,292
NetApp Inc.		12,696		505,936
Seagate Technology PLC		13,893		585,312
Western Digital Corp.		13,563		1,208,056
Xerox Corp.		39,366		283,042
				41,465,671
TEXTILES, APPAREL & LUXURY GOODS — 0.68%
Carter’s Inc.		2,256		207,642
Coach Inc.		13,123		516,915
Deckers Outdoor Corp.a		1,533		91,352
Fossil Group Inc.a,b		1,773		30,584
G-III Apparel Group Ltd.a		2,237		53,017
Hanesbrands Inc.		18,027		393,169
Kate Spade & Co.a		5,884		102,382
lululemon athletica Inc.a,b		5,049		262,548
Michael Kors Holdings Ltd.a		7,623		284,567
NIKE Inc. Class B		62,155		3,444,009

Security	Shares		Value
PVH Corp.		3,678	$	371,588
Ralph Lauren Corp.		2,620		211,486
Skechers U.S.A. Inc. Class Aa		6,121		154,555
Steven Madden Ltd.a		2,521		95,924
Under Armour Inc. Class Aa,b		8,666		186,232
Under Armour Inc. Class Ca		8,793		170,672
VF Corp.		15,649		854,905
Wolverine World Wide Inc.		4,472		107,820
				7,539,367
THRIFTS & MORTGAGE FINANCE — 0.08%
Capitol Federal Financial Inc.		6,252		91,467
MGIC Investment Corp.a		16,281		171,602
New York Community Bancorp. Inc.		22,605		300,420
Radian Group Inc.		10,210		172,345
Washington Federal Inc.		4,100		138,170
				874,004
TOBACCO — 1.54%
Altria Group Inc.		91,115		6,540,235
Philip Morris International Inc.		72,879		8,077,908
Reynolds American Inc.		38,936		2,511,372
				17,129,515
TRADING COMPANIES & DISTRIBUTORS — 0.28%
Air Lease Corp.		4,395		167,625
Applied Industrial Technologies Inc.		1,742		111,488
Beacon Roofing Supply Inc.a		2,934		145,438
Fastenal Co.		13,552		605,503
GATX Corp.		1,869		111,953
HD Supply Holdings Inc.a		9,492		382,528
MRC Global Inc.a		4,540		82,764
MSC Industrial Direct Co. Inc. Class A		2,067		185,059
NOW Inc.a		4,803		81,699
United Rentals Inc.a		3,997		438,311
Watsco Inc.		1,423		197,513
WESCO International Inc.a		1,959		119,401
WW Grainger Inc.		2,539		489,265
				3,118,547
TRANSPORTATION INFRASTRUCTURE — 0.03%
Macquarie Infrastructure Corp.		3,517		286,178
				286,178
WATER UTILITIES — 0.08%
American Water Works Co. Inc.		8,312		662,965
Aqua America Inc.		8,323		275,408
				938,373

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® DOW JONES U.S. ETF

April 30, 2017

Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 0.12%
Sprint Corp.a,b		29,598	$	267,270
T-Mobile U.S. Inc.a		13,567		912,652
Telephone & Data Systems Inc.		4,502		123,625
				1,303,547
TOTAL COMMON STOCKS (Cost: $765,562,652)				1,108,452,861
SHORT-TERM INVESTMENTS — 2.14%
MONEY MARKET FUNDS — 2.14%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		22,121,552		22,130,401
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		1,579,277		1,579,277
				23,709,678
TOTAL SHORT-TERM INVESTMENTS
(Cost: $23,704,277)				23,709,678

	Value
TOTAL INVESTMENTS IN SECURITIES — 101.92%
(Cost: $789,266,929)g	$	1,132,162,539
Other Assets Less Liabilities — (1.92)%		(21,290,552	)
NET ASSETS — 100.00%	$	1,110,871,987

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated issuer. See Schedule 1.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $809,871,582. Net unrealized appreciation was $322,290,957, of which $374,795,174 represented gross unrealized appreciation on securities and $52,504,217 represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
BlackRock Inc.		5,537		495		(333	)		5,699	$	2,191,664	$	51,618	$	28,652
PNC Financial Services Group Inc. (The)		22,044		2,149		(1,396	)		22,797		2,729,941		48,410		13,477
										$	4,921,605	$	100,028	$	42,129

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,108,435,993	$	—	$	16,868	$	1,108,452,861
Money market funds		23,709,678		—		—		23,709,678
Total	$	1,132,145,671	$	—	$	16,868	$	1,132,162,539

See notes to financial statements.

SCHEDULES OF INVESTMENTS 35

Schedule of Investments

iSHARES^® TRANSPORTATION AVERAGE ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.98%
AIR FREIGHT & LOGISTICS — 28.93%
CH Robinson Worldwide Inc.		628,144	$	45,666,068
Expeditors International of Washington Inc.		767,733		43,062,144
FedEx Corp.		643,283		122,030,785
United Parcel Service Inc. Class B		641,046		68,886,803
				279,645,800
AIRLINES — 22.49%
Alaska Air Group Inc.		638,182		54,302,906
American Airlines Group Inc.		691,632		29,477,356
Delta Air Lines Inc.		712,735		32,386,679
JetBlue Airways Corp.a		777,239		16,967,127
Southwest Airlines Co.		714,005		40,141,361
United Continental Holdings Inc.a		627,751		44,074,398
				217,349,827
MARINE — 6.96%
Kirby Corp.a,b		637,150		44,982,790
Matson Inc.		701,979		22,252,734
				67,235,524
ROAD & RAIL — 41.60%
Avis Budget Group Inc.a,b		711,196		21,691,478
CSX Corp.		783,025		39,808,991
JB Hunt Transport Services Inc.		638,210		57,221,909
Kansas City Southern		532,770		47,986,594
Landstar System Inc.		537,166		45,900,835
Norfolk Southern Corp.		641,715		75,395,095
Ryder System Inc.		626,542		42,548,467

Security	Shares		Value
Union Pacific Corp.		639,481	$	71,596,293
				402,149,662
TOTAL COMMON STOCKS
(Cost: $1,035,033,114)				966,380,813
SHORT-TERM INVESTMENTS — 0.48%
MONEY MARKET FUNDS — 0.48%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		3,329,255		3,330,587
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		1,356,987		1,356,987
				4,687,574
TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,687,087)				4,687,574
TOTAL INVESTMENTS IN SECURITIES — 100.46%
(Cost: $1,039,720,201)f				971,068,387
Other Assets, Less Liabilities — (0.46)%				(4,470,417	)
NET ASSETS — 100.00%			$	966,597,970

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $1,043,120,678. Net unrealized depreciation was $72,052,291, of which $13,528,758 represented gross unrealized appreciation on securities and $85,581,049 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	966,380,813	$	—	$	—	$	966,380,813
Money market funds		4,687,574		—		—		4,687,574
Total	$	971,068,387	$	—	$	—	$	971,068,387

See notes to financial statements.

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® U.S. ENERGY ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.91%
ELECTRIC UTILITIES — 0.49%
OGE Energy Corp.		162,167	$	5,640,168
				5,640,168
ENERGY EQUIPMENT & SERVICES — 16.73%
Baker Hughes Inc.		345,400		20,506,398
Core Laboratories NV		35,812		3,968,686
Diamond Offshore Drilling Inc.a,b		52,777		761,044
Dril-Quip Inc.a,b		30,904		1,593,101
Ensco PLC Class A		246,086		1,941,619
Halliburton Co.		704,006		32,299,795
Helmerich & Payne Inc.		88,155		5,345,719
Nabors Industries Ltd.		232,988		2,409,096
National Oilwell Varco Inc.		307,562		10,755,443
Noble Corp. PLC		200,723		963,471
Oceaneering International Inc.		79,642		2,101,753
Oil States International Inc.a,b		41,953		1,248,102
Patterson-UTI Energy Inc.		135,812		2,939,651
Rowan Companies PLC Class Ab		103,161		1,451,475
Schlumberger Ltd.		1,132,124		82,180,881
Superior Energy Services Inc.b		124,098		1,499,104
TechnipFMC PLCb		378,908		11,416,498
Transocean Ltd.b		316,135		3,486,969
U.S. Silica Holdings Inc.		59,560		2,471,740
Weatherford International PLCa,b		798,577		4,607,789
				193,948,334
OIL, GAS & CONSUMABLE FUELS — 82.53%
Anadarko Petroleum Corp.		453,925		25,882,804
Antero Resources Corp.a,b		117,262		2,484,782
Apache Corp.		308,326		14,996,977
Cabot Oil & Gas Corp.		385,852		8,967,200
Carrizo Oil & Gas Inc.a,b		49,992		1,257,299
Cheniere Energy Inc.a,b		193,244		8,763,615
Chesapeake Energy Corp.a,b		621,926		3,271,331
Chevron Corp.		1,537,321		164,032,151
Cimarex Energy Co.		77,249		9,013,413
Concho Resources Inc.b		120,328		15,240,745
ConocoPhillips		1,003,590		48,081,997
Continental Resources Inc./OKa,b		69,963		2,967,131
Devon Energy Corp.		426,009		16,823,095
Diamondback Energy Inc.b		73,197		7,307,988
Energen Corp.b		78,818		4,097,748
EOG Resources Inc.		468,429		43,329,683
EQT Corp.		140,763		8,183,961

Security	Shares		Value
Exxon Mobil Corp.		3,367,245	$	274,935,554
Gulfport Energy Corp.a,b		129,688		2,059,445
Hess Corp.		218,488		10,668,769
HollyFrontier Corp.		144,019		4,052,695
Kinder Morgan Inc./DE		1,559,080		32,163,820
Marathon Oil Corp.		687,987		10,230,367
Marathon Petroleum Corp.		428,597		21,832,731
Murphy Oil Corp.		131,589		3,445,000
Newfield Exploration Co.b		161,501		5,591,165
Noble Energy Inc.		369,513		11,946,355
Oasis Petroleum Inc.a,b		192,853		2,302,665
Occidental Petroleum Corp.		620,654		38,195,047
ONEOK Inc.		171,153		9,004,359
Parsley Energy Inc. Class Ab		179,977		5,361,515
PBF Energy Inc.		88,970		1,985,810
Phillips 66		358,243		28,501,813
Pioneer Natural Resources Co.		137,880		23,851,861
QEP Resources Inc.b		194,571		2,297,884
Range Resources Corp.		152,752		4,046,400
Rice Energy Inc.a,b		123,859		2,636,958
SemGroup Corp. Class A		43,182		1,437,961
SM Energy Co.		79,928		1,805,574
Southwestern Energy Co.b		406,547		3,053,168
Targa Resources Corp.		157,504		8,683,196
Tesoro Corp.		94,995		7,572,051
Valero Energy Corp.		366,281		23,665,415
Western Refining Inc.		64,949		2,240,091
Whiting Petroleum Corp.b		227,994		1,892,350
Williams Companies Inc. (The)		670,629		20,541,366
World Fuel Services Corp.		57,090		2,102,625
WPX Energy Inc.a,b		321,851		3,839,682
				956,645,612
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.16%
First Solar Inc.a,b		64,006		1,891,377
				1,891,377
TOTAL COMMON STOCKS
(Cost: $1,495,355,223)				1,158,125,491
SHORT-TERM INVESTMENTS — 1.69%
MONEY MARKET FUNDS — 1.69%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		18,709,545		18,717,029

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® U.S. ENERGY ETF

April 30, 2017

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		847,707	$	847,707
				19,564,736
TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,560,042)				19,564,736
TOTAL INVESTMENTS IN SECURITIES — 101.60%
(Cost: $1,514,915,265)f				1,177,690,227
Other Assets, Less Liabilities — (1.60)%				(18,564,746	)
NET ASSETS — 100.00%			$	1,159,125,481

^a  All or a portion of this security represents a security on loan. See Note 1.

^b  Non-income earning security.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $1,554,289,031. Net unrealized depreciation was $376,598,804, of which $1,408,153 represented gross unrealized appreciation on securities and $378,006,957 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,158,125,491	$	—	$	—	$	1,158,125,491
Money market funds		19,564,736		—		—		19,564,736
Total	$	1,177,690,227	$	—	$	—	$	1,177,690,227

See notes to financial statements.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® U.S. HEALTHCARE ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.92%
BIOTECHNOLOGY — 22.44%
AbbVie Inc.		1,015,786	$	66,980,929
ACADIA Pharmaceuticals Inc.a,b		59,989		2,059,422
Agios Pharmaceuticals Inc.a,b		26,205		1,302,651
Alexion Pharmaceuticals Inc.a		143,144		18,290,940
Alkermes PLCa		97,013		5,651,007
Alnylam Pharmaceuticals Inc.a,b		45,551		2,441,534
Amgen Inc.		469,332		76,651,302
AquaBounty Technologies Inc.a,b		563		4,374
Biogen Inc.a		137,593		37,316,597
BioMarin Pharmaceutical Inc.a,b		109,660		10,509,814
Bioverativ Inc.a		68,703		4,040,423
Bluebird Bio Inc.a,b		26,061		2,318,126
Celgene Corp.a		495,788		61,502,501
Dyax Corp.a		95,647		219,032
Gilead Sciences Inc.		832,978		57,100,642
Incyte Corp.a		107,824		13,400,367
Intercept Pharmaceuticals Inc.a,b		11,243		1,263,151
Intrexon Corp.a,b		38,602		804,466
Ionis Pharmaceuticals Inc.a,b		77,347		3,727,352
Juno Therapeutics Inc.a,b		48,634		1,212,932
Kite Pharma Inc.a,b		31,125		2,554,740
Ligand Pharmaceuticals Inc.a		12,070		1,341,822
Myriad Genetics Inc.a,b		42,822		787,497
Neurocrine Biosciences Inc.a		55,594		2,968,720
Novavax Inc.a,b		169,854		138,618
OPKO Health Inc.a,b		230,530		1,791,218
Portola Pharmaceuticals Inc.a,b		36,197		1,447,518
Radius Health Inc.a,b		23,699		925,920
Regeneron Pharmaceuticals Inc.a		48,462		18,827,002
Seattle Genetics Inc.a,b		61,812		4,221,760
TESARO Inc.a		21,723		3,206,098
Ultragenyx Pharmaceutical Inc.a,b		24,492		1,577,040
United Therapeutics Corp.a		28,705		3,608,218
Vertex Pharmaceuticals Inc.a		158,326		18,729,966
				428,923,699
COMMERCIAL SERVICES & SUPPLIES — 0.11%
Healthcare Services Group Inc.b		46,456		2,132,795
				2,132,795
HEALTH CARE EQUIPMENT & SUPPLIES — 20.58%
Abbott Laboratories		1,101,233		48,057,808
ABIOMED Inc.a		25,833		3,366,557
Alere Inc.a		55,523		2,730,066

Security	Shares		Value
Align Technology Inc.a,b		48,132	$	6,479,530
Baxter International Inc.		309,768		17,247,882
Becton Dickinson and Co.		135,631		25,358,928
Boston Scientific Corp.a		868,935		22,922,505
Cooper Companies Inc. (The)		31,220		6,254,303
CR Bard Inc.		45,904		14,114,562
Danaher Corp.		388,801		32,398,787
DENTSPLY SIRONA Inc.		146,475		9,263,079
DexCom Inc.a,b		53,938		4,205,006
Edwards Lifesciences Corp.a		135,431		14,852,718
Haemonetics Corp.a,b		33,179		1,389,537
Halyard Health Inc.a		29,819		1,177,850
Hill-Rom Holdings Inc.		37,968		2,871,900
Hologic Inc.a		177,755		8,025,638
IDEXX Laboratories Inc.a		56,125		9,413,846
Intuitive Surgical Inc.a		23,404		19,562,701
Medtronic PLC		872,374		72,485,556
NuVasive Inc.a,b		32,285		2,340,985
ResMed Inc.		90,119		6,127,191
STERIS PLC		54,101		3,992,654
Stryker Corp.		197,233		26,896,664
Teleflex Inc.		28,645		5,926,364
Varex Imaging Corp.a		23,676		794,567
Varian Medical Systems Inc.a,b		59,646		5,412,278
West Pharmaceutical Services Inc.		46,742		4,301,666
Zimmer Biomet Holdings Inc.		128,160		15,334,344
				393,305,472
HEALTH CARE PROVIDERS & SERVICES — 17.17%
Acadia Healthcare Co. Inc.a,b		48,669		2,120,995
Aetna Inc.		211,403		28,554,203
Anthem Inc.		168,485		29,971,797
Brookdale Senior Living Inc.a		117,721		1,529,196
Centene Corp.a		109,483		8,145,535
Cigna Corp.		163,816		25,615,908
Community Health Systems Inc.a,b		71,679		617,156
DaVita Inc.a		99,051		6,835,509
Envision Healthcare Corp.a		74,981		4,201,185
Express Scripts Holding Co.a,b		386,018		23,678,344
HCA Holdings Inc.a		183,997		15,494,387
HealthSouth Corp.		56,890		2,668,141
Henry Schein Inc.a		50,403		8,760,041
Humana Inc.		95,162		21,124,061
Laboratory Corp. of America Holdingsa		65,237		9,142,966

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® U.S. HEALTHCARE ETF

April 30, 2017

Security	Shares		Value
LifePoint Health Inc.a		25,352	$	1,575,627
Magellan Health Inc.a		15,056		1,035,853
MEDNAX Inc.a,b		59,874		3,613,995
Molina Healthcare Inc.a,b		27,109		1,349,757
Owens & Minor Inc.		38,615		1,338,010
Patterson Companies Inc.		52,199		2,322,334
Quest Diagnostics Inc.		87,687		9,251,855
Tenet Healthcare Corp.a,b		50,988		798,982
UnitedHealth Group Inc.		613,127		107,223,650
Universal Health Services Inc. Class B		56,940		6,876,074
WellCare Health Plans Inc.a		28,255		4,334,600
				328,180,161
LIFE SCIENCES TOOLS & SERVICES — 4.49%
Bio-Rad Laboratories Inc. Class Aa		13,274		2,897,183
Bio-Techne Corp.		23,692		2,536,939
Bruker Corp.		67,642		1,649,789
Charles River Laboratories International Inc.a		30,264		2,714,681
Illumina Inc.a		93,235		17,235,422
PAREXEL International Corp.a		32,518		2,075,624
Quintiles IMS Holdings Inc.a		82,565		6,958,578
Thermo Fisher Scientific Inc.		248,791		41,132,616
Waters Corp.a		50,968		8,658,954
				85,859,786
PHARMACEUTICALS — 35.13%
Akorn Inc.a		55,501		1,856,508
Allergan PLC		213,635		52,097,031
Bristol-Myers Squibb Co.		1,066,001		59,749,356
Catalent Inc.a		79,327		2,322,695
Eli Lilly & Co.		618,774		50,776,594
Endo International PLCa		125,962		1,432,188
Horizon Pharma PLCa		103,177		1,586,862
Impax Laboratories Inc.a,b		46,249		649,798
Jazz Pharmaceuticals PLCa		38,202		6,084,815
Johnson & Johnson		1,729,183		213,502,225
Mallinckrodt PLCa		66,683		3,128,766
Medicines Co. (The)a,b		45,539		2,245,983
Merck & Co. Inc.		1,749,719		109,059,985
Mylan NVa		293,597		10,965,848
Pacira Pharmaceuticals Inc./DEa		23,915		1,161,073
Perrigo Co. PLC		91,203		6,743,550
Pfizer Inc.		3,793,055		128,660,426

Security	Shares		Value
Prestige Brands Holdings Inc.a		33,789	$	1,939,827
Zoetis Inc.		313,523		17,591,776
				671,555,306
TOTAL COMMON STOCKS
(Cost: $1,906,023,456)				1,909,957,219
SHORT-TERM INVESTMENTS — 1.95%
MONEY MARKET FUNDS — 1.95%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		36,258,180		36,272,684
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		936,859		936,859
				37,209,543
TOTAL SHORT-TERM INVESTMENTS
(Cost: $37,197,235)				37,209,543
TOTAL INVESTMENTS IN SECURITIES — 101.87%
(Cost: $1,943,220,691)f				1,947,166,762
Other Assets, Less Liabilities — (1.87)%				(35,780,637	)
NET ASSETS — 100.00%			$	1,911,386,125

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $1,955,488,772. Net unrealized depreciation was $8,322,010, of which $152,474,067 represented gross unrealized appreciation on securities and $160,796,077 represented gross unrealized depreciation on securities.

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. HEALTHCARE ETF

April 30, 2017

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,909,738,187	$	—	$	219,032	$	1,909,957,219
Money market funds		37,209,543		—		—		37,209,543
Total	$	1,946,947,730	$	—	$	219,032	$	1,947,166,762

See notes to financial statements.

SCHEDULES OF INVESTMENTS 41

Schedule of Investments

iSHARES^® U.S. TECHNOLOGY ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.97%
COMMERCIAL SERVICES & SUPPLIES — 0.06%
Pitney Bowes Inc.		145,939	$	1,939,529
				1,939,529
COMMUNICATIONS EQUIPMENT — 6.38%
Arista Networks Inc.a,b		32,729		4,570,278
ARRIS International PLCa		147,747		3,839,944
Brocade Communications Systems Inc.		318,493		4,003,457
Ciena Corp.a,b		110,338		2,527,844
Cisco Systems Inc.		3,907,636		133,133,158
CommScope Holding Co. Inc.a		151,509		6,369,438
EchoStar Corp. Class Aa		36,151		2,080,852
F5 Networks Inc.a		50,629		6,537,723
Finisar Corp.a,b		86,757		1,981,530
Harris Corp.		97,234		10,879,512
InterDigital Inc./PA		26,863		2,414,984
Juniper Networks Inc.		298,418		8,973,429
Lumentum Holdings Inc.a		43,333		1,852,486
Motorola Solutions Inc.		128,697		11,064,081
NetScout Systems Inc.a		71,114		2,677,442
Palo Alto Networks Inc.a		71,432		7,743,943
Plantronics Inc.		25,862		1,412,065
ViaSat Inc.a,b		41,389		2,650,138
Viavi Solutions Inc.a		178,488		1,784,880
				216,497,184
CONSTRUCTION & ENGINEERING — 0.08%
Dycom Industries Inc.a,b		24,606		2,599,870
				2,599,870
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.08%
Zayo Group Holdings Inc.a		75,697		2,654,694
				2,654,694
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.98%
CDW Corp./DE		125,056		7,389,559
Corning Inc.		724,454		20,900,498
SYNNEX Corp.		22,695		2,460,819
Tech Data Corp.a		27,018		2,584,271
				33,335,147
HEALTH CARE TECHNOLOGY — 0.78%
Allscripts Healthcare Solutions Inc.a		141,016		1,687,962

Security	Shares		Value
athenahealth Inc.a,b		30,786	$	3,017,336
Cerner Corp.a,b		228,659		14,805,670
Medidata Solutions Inc.a		42,816		2,801,451
Veeva Systems Inc.a,b		80,360		4,308,903
				26,621,322
HOUSEHOLD DURABLES — 0.13%
Garmin Ltd.		89,632		4,556,891
				4,556,891
INTERNET SOFTWARE & SERVICES — 23.54%
Akamai Technologies Inc.a		135,028		8,228,606
Alphabet Inc. Class Aa		231,841		214,341,641
Alphabet Inc. Class Ca		230,579		208,895,351
eBay Inc.a		788,846		26,355,345
Facebook Inc. Class Aa		1,837,740		276,120,435
GrubHub Inc.a,b		66,476		2,857,138
IAC/InterActiveCorpa		57,474		4,770,917
j2 Global Inc.		37,649		3,397,446
Pandora Media Inc.a,b		182,281		1,977,749
Twitter Inc.a,b		467,901		7,711,009
VeriSign Inc.a,b		69,546		6,184,030
Yahoo! Inc.a		684,944		33,021,150
Zillow Group Inc. Class Aa		35,271		1,357,581
Zillow Group Inc. Class Ca,b		82,316		3,210,324
				798,428,722
IT SERVICES — 5.84%
Amdocs Ltd.		114,685		7,023,309
CACI International Inc. Class Aa		19,053		2,248,254
Cognizant Technology Solutions Corp. Class Aa		474,920		28,604,432
CSRA Inc.		112,944		3,284,411
DST Systems Inc.		24,583		3,026,413
DXC Technology Co.a		221,265		16,670,105
EPAM Systems Inc.a		35,216		2,711,632
Gartner Inc.a		70,246		8,014,366
International Business Machines Corp.		669,751		107,354,388
Leidos Holdings Inc.		111,294		5,860,742
Science Applications International Corp.		34,279		2,502,024
Teradata Corp.a		102,249		2,983,626
Vantiv Inc. Class Aa		125,871		7,809,037
				198,092,739

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. TECHNOLOGY ETF

April 30, 2017

Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 17.37%
Advanced Micro Devices Inc.a,b		602,825	$	8,017,573
Analog Devices Inc.		284,041		21,643,924
Applied Materials Inc.		842,593		34,217,702
Broadcom Ltd.		312,930		69,098,073
Cavium Inc.a,b		52,119		3,588,393
Cirrus Logic Inc.a		50,178		3,228,954
Cree Inc.a,b		76,092		1,664,893
Cypress Semiconductor Corp.		256,148		3,588,634
Integrated Device Technology Inc.a		104,538		2,507,867
Intel Corp.		3,689,264		133,366,894
KLA-Tencor Corp.		122,429		12,024,976
Lam Research Corp.		127,137		18,415,794
Marvell Technology Group Ltd.		345,188		5,184,724
Maxim Integrated Products Inc.		220,715		9,744,567
Microchip Technology Inc.		168,628		12,744,904
Micron Technology Inc.a,b		808,963		22,384,006
Microsemi Corp.a		90,077		4,228,214
NVIDIA Corp.		459,597		47,935,967
ON Semiconductor Corp.a		324,269		4,598,134
Qorvo Inc.a,b		98,784		6,720,276
QUALCOMM Inc.		1,152,536		61,937,285
Semtech Corp.a		51,332		1,752,988
Silicon Laboratories Inc.a		32,802		2,333,862
Skyworks Solutions Inc.		144,425		14,404,950
Synaptics Inc.a		27,622		1,512,857
Teradyne Inc.		156,089		5,505,259
Texas Instruments Inc.		780,021		61,762,063
Versum Materials Inc.		84,759		2,713,983
Xilinx Inc.		193,910		12,237,660
				589,065,376
SOFTWARE — 24.43%
ACI Worldwide Inc.a,b		90,869		1,952,775
Adobe Systems Inc.a		386,774		51,727,155
ANSYS Inc.a		66,691		7,346,681
Aspen Technology Inc.a		59,427		3,654,166
Autodesk Inc.a		152,607		13,745,312
Blackbaud Inc.		36,945		2,970,747
CA Inc.		244,199		8,017,053
Cadence Design Systems Inc.a		217,745		7,091,955
CDK Global Inc.		113,284		7,364,593
Citrix Systems Inc.a		122,137		9,885,769

Security	Shares		Value
CommVault Systems Inc.a		32,764	$	1,652,944
Dell Technologies Inc. Class Va		173,720		11,658,349
Ellie Mae Inc.a		26,440		2,690,534
Fair Isaac Corp.		24,120		3,267,778
FireEye Inc.a,b		117,492		1,469,825
Fortinet Inc.a		116,415		4,540,185
Guidewire Software Inc.a,b		57,181		3,516,060
Intuit Inc.		189,639		23,744,699
Manhattan Associates Inc.a		54,681		2,553,056
Microsoft Corp.		6,029,800		412,800,108
Nuance Communications Inc.a		202,712		3,626,518
Oracle Corp.		2,338,612		105,143,995
Proofpoint Inc.a,b		33,822		2,549,164
PTC Inc.a		90,470		4,889,903
Red Hat Inc.a		139,257		12,265,757
salesforce.com Inc.a		511,018		44,008,870
ServiceNow Inc.a		128,160		12,108,557
Splunk Inc.a		105,977		6,815,381
SS&C Technologies Holdings Inc.		132,515		4,868,601
Symantec Corp.		483,321		15,287,443
Synopsys Inc.a		117,279		8,643,462
Tableau Software Inc. Class Aa		44,906		2,410,554
Tyler Technologies Inc.a,b		26,181		4,282,950
Ultimate Software Group Inc. (The)a,b		23,173		4,696,472
Verint Systems Inc.a		48,516		1,906,679
VMware Inc. Class Aa,b		55,027		5,179,141
Workday Inc. Class Aa,b		95,214		8,321,704
				828,654,895
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 20.30%
3D Systems Corp.a,b		82,904		1,312,370
Apple Inc.		4,093,881		588,086,006
Diebold Nixdorf Inc.		58,796		1,658,047
Electronics For Imaging Inc.a,b		36,456		1,668,956
Hewlett Packard Enterprise Co.		1,299,059		24,201,469
HP Inc.		1,321,383		24,868,428
NCR Corp.a		97,524		4,022,865
NetApp Inc.		211,684		8,435,607
Seagate Technology PLC		230,542		9,712,735
Western Digital Corp.		224,876		20,029,705
Xerox Corp.		665,120		4,782,213
				688,778,401
TOTAL COMMON STOCKS
(Cost: $2,841,194,305)				3,391,224,770

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Continued)

iSHARES^® U.S. TECHNOLOGY ETF

April 30, 2017

Security	Shares		Value
SHORT-TERM INVESTMENTS — 2.78%
MONEY MARKET FUNDS — 2.78%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		92,564,009	$	92,601,035
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		1,741,261		1,741,261
				94,342,296
TOTAL SHORT-TERM INVESTMENTS
(Cost: $94,322,164)				94,342,296

	Value
TOTAL INVESTMENTS IN SECURITIES — 102.75%
(Cost: $2,935,516,469)f	$	3,485,567,066
Other Assets, Less Liabilities — (2.75)%		(93,333,172	)
NET ASSETS — 100.00%	$	3,392,233,894

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $2,956,758,915. Net unrealized appreciation was $528,808,151, of which $639,357,160 represented gross unrealized appreciation on securities and $110,549,009 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,391,224,770	$	—	$	—	$	3,391,224,770
Money market funds		94,342,296		—		—		94,342,296
Total	$	3,485,567,066	$	—	$	—	$	3,485,567,066

See notes to financial statements.

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® U.S. UTILITIES ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.84%
ELECTRIC UTILITIES — 58.56%
ALLETE Inc.		53,064	$	3,709,704
Alliant Energy Corp.		241,763		9,506,121
American Electric Power Co. Inc.		522,092		35,413,500
Duke Energy Corp.		742,851		61,285,207
Edison International		345,948		27,665,462
El Paso Electric Co.		43,004		2,219,006
Entergy Corp.		190,479		14,525,929
Eversource Energy		336,462		19,985,843
Exelon Corp.		983,848		34,070,656
FirstEnergy Corp.		469,824		14,066,531
Great Plains Energy Inc.		228,691		6,766,967
Hawaiian Electric Industries Inc.		115,536		3,872,767
IDACORP Inc.		53,533		4,524,609
NextEra Energy Inc.		496,480		66,309,869
PG&E Corp.		538,210		36,086,980
Pinnacle West Capital Corp.		118,215		10,058,914
PNM Resources Inc.		84,450		3,145,763
Portland General Electric Co.		94,464		4,282,998
PPL Corp.		721,731		27,505,168
Southern Co. (The)		1,052,293		52,404,191
Westar Energy Inc.		150,818		7,847,061
Xcel Energy Inc.		538,564		24,262,308
				469,515,554
GAS UTILITIES — 5.74%
Atmos Energy Corp.		111,681		9,048,395
National Fuel Gas Co.		90,609		5,017,927
New Jersey Resources Corp.		91,718		3,700,821
ONE Gas Inc.		55,510		3,820,753
South Jersey Industries Inc.		84,270		3,161,810
Southwest Gas Holdings Inc.		50,502		4,230,048
Spire Inc.		48,492		3,324,127
UGI Corp.		183,621		9,210,429
WGL Holdings Inc.		54,405		4,486,236
				46,000,546
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 2.29%
AES Corp./VA		699,927		7,916,174
Calpine Corp.a,b		381,443		3,890,719
Dynegy Inc.a,b		139,970		898,607
NRG Energy Inc.		335,505		5,670,035
				18,375,535

Security	Shares		Value
MULTI-UTILITIES — 30.59%
Ameren Corp.		257,635	$	14,090,058
Avista Corp.		68,291		2,754,859
Black Hills Corp.		56,714		3,857,686
CenterPoint Energy Inc.		457,306		13,046,940
CMS Energy Corp.		297,209		13,493,289
Consolidated Edison Inc.		323,909		25,679,506
Dominion Resources Inc./VA		666,925		51,640,003
DTE Energy Co.		190,515		19,925,964
NiSource Inc.		343,440		8,328,420
NorthWestern Corp.		51,673		3,089,012
Public Service Enterprise Group Inc.		537,505		23,677,095
SCANA Corp.		151,752		10,062,675
Sempra Energy		266,022		30,065,806
Vectren Corp.		88,051		5,231,990
WEC Energy Group Inc.		335,086		20,279,405
				245,222,708
WATER UTILITIES — 2.66%
American Water Works Co. Inc.		189,228		15,092,825
Aqua America Inc.		188,405		6,234,322
				21,327,147
TOTAL COMMON STOCKS
(Cost: $820,267,412)				800,441,490
SHORT-TERM INVESTMENTS — 0.71%
MONEY MARKET FUNDS — 0.71%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		4,647,583		4,649,442
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		1,025,323		1,025,323
				5,674,765
TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,674,675)				5,674,765

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® U.S. UTILITIES ETF

April 30, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.55%
(Cost: $825,942,087)f	$	806,116,255
Other Assets, Less Liabilities — (0.55)%		(4,443,401	)
NET ASSETS — 100.00%	$	801,672,854

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $828,402,935. Net unrealized depreciation was $22,286,680, of which $29,764,240 represented gross unrealized appreciation on securities and $52,050,920 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	800,441,490	$	—	$	—	$	800,441,490
Money market funds		5,674,765		—		—		5,674,765
Total	$	806,116,255	$	—	$	—	$	806,116,255

See notes to financial statements.

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

April 30, 2017

	iShares Dow Jones U.S. ETF			iShares Transportation Average ETF			iShares U.S. Energy ETF
ASSETS
Investments, at cost:
Unaffiliated	$	762,425,412		$	1,035,033,114		$	1,495,355,223
Affiliated (Note 2)		26,841,517			4,687,087			19,560,042
Total cost of investments	$	789,266,929		$	1,039,720,201		$	1,514,915,265
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	1,103,531,256		$	966,380,813		$	1,158,125,491
Affiliated (Note 2)		28,631,283			4,687,574			19,564,736
Total fair value of investments		1,132,162,539			971,068,387			1,177,690,227
Receivables:
Investment securities sold		—			5,199,940			—
Dividends and interest		1,012,273			1,851			572,223
Capital shares sold		—			9,054			—
Total Assets		1,133,174,812			976,279,232			1,178,262,450
LIABILITIES
Payables:
Investment securities purchased		—			6,005,197			—
Collateral for securities on loan (Note 1)		22,122,423			3,325,246			18,708,703
Capital shares redeemed		—			8,960			—
Investment advisory fees (Note 2)		180,402			341,859			428,266
Total Liabilities		22,302,825			9,681,262			19,136,969
NET ASSETS	$	1,110,871,987		$	966,597,970		$	1,159,125,481
Net assets consist of:
Paid-in capital	$	820,009,079		$	1,068,642,577		$	1,637,081,464
Undistributed net investment income		680,558			—			—
Accumulated net realized loss		(52,713,260	)		(33,392,793	)		(140,730,945	)
Net unrealized appreciation (depreciation)		342,895,610			(68,651,814	)		(337,225,038	)
NET ASSETS	$	1,110,871,987		$	966,597,970		$	1,159,125,481
Shares outstandingb		9,300,000			5,900,000			31,100,000
Net asset value per share	$	119.45		$	163.83		$	37.27

^a  Securities on loan with values of $21,428,338, $3,109,651 and $18,170,147, respectively. See Note 1.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

FINANCIAL STATEMENTS 47

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2017

	iShares U.S. Healthcare ETF			iShares U.S. Technology ETF			iShares U.S. Utilities ETF
ASSETS
Investments, at cost:
Unaffiliated	$	1,906,023,456		$	2,841,194,305		$	820,267,412
Affiliated (Note 2)		37,197,235			94,322,164			5,674,675
Total cost of investments	$	1,943,220,691		$	2,935,516,469		$	825,942,087
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	1,909,957,219		$	3,391,224,770		$	800,441,490
Affiliated (Note 2)		37,209,543			94,342,296			5,674,765
Total fair value of investments		1,947,166,762			3,485,567,066			806,116,255
Receivables:
Investment securities sold		—			4,025			—
Dividends and interest		1,393,193			417,331			521,134
Capital shares sold		—			3,774			—
Total Assets		1,948,559,955			3,485,992,196			806,637,389
LIABILITIES
Payables:
Investment securities purchased		257,861			—			—
Collateral for securities on loan (Note 1)		36,257,269			92,580,712			4,649,335
Capital shares redeemed		—			5,912			33,745
Investment advisory fees (Note 2)		658,700			1,171,678			281,455
Total Liabilities		37,173,830			93,758,302			4,964,535
NET ASSETS	$	1,911,386,125		$	3,392,233,894		$	801,672,854
Net assets consist of:
Paid-in capital	$	1,939,212,989		$	2,919,148,757		$	852,538,912
Undistributed net investment income		931,554			539,726			—
Accumulated net realized loss		(32,704,489	)		(77,505,186	)		(31,040,226	)
Net unrealized appreciation (depreciation)		3,946,071			550,050,597			(19,825,832	)
NET ASSETS	$	1,911,386,125		$	3,392,233,894		$	801,672,854
Shares outstandingb		12,050,000			24,550,000			6,200,000
Net asset value per share	$	158.62		$	138.18		$	129.30

^a  Securities on loan with values of $35,669,390, $89,177,083 and $4,715,348, respectively. See Note 1.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year ended April 30, 2017

	iShares Dow Jones U.S. ETF			iShares Transportation Average ETF			iShares U.S. Energy ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	19,652,936		$	11,677,706		$	32,665,751
Dividends — affiliated (Note 2)		104,999			4,151			3,820
Interest — unaffiliated		43			—			—
Securities lending income — affiliated — net (Note 2)		157,515			48,043			241,952
Total investment income		19,915,493			11,729,900			32,911,523
EXPENSES
Investment advisory fees (Note 2)		1,973,757			3,597,084			5,555,713
Total expenses		1,973,757			3,597,084			5,555,713
Net investment income		17,941,736			8,132,816			27,355,810
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(128,129	)		(8,556,556	)		(69,265,678	)
Investments — affiliated (Note 2)		(1,571	)		4,854			3,632
In-kind redemptions — unaffiliated		11,911,775			73,885,856			55,971,231
In-kind redemptions — affiliated (Note 2)		46,277			—			—
Realized gain distributions from affiliated funds		42			126			187
Net realized gain (loss)		11,828,394			65,334,280			(13,290,628	)
Net change in unrealized appreciation/depreciation		134,033,913			51,399,806			(11,220,016	)
Net realized and unrealized gain (loss)		145,862,307			116,734,086			(24,510,644	)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	163,804,043		$	124,866,902		$	2,845,166

^a  Net of foreign withholding tax of $1,316, $  — and $15,521, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 49

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended April 30, 2017

	iShares U.S. Healthcare ETF			iShares U.S. Technology ETF			iShares U.S. Utilities ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	30,421,762		$	43,931,912		$	28,871,081
Dividends — affiliated (Note 2)		6,552			12,605			3,617
Securities lending income — affiliated — net (Note 2)		265,092			324,310			5,270
Total investment income		30,693,406			44,268,827			28,879,968
EXPENSES
Investment advisory fees (Note 2)		8,195,725			12,596,106			3,748,444
Total expenses		8,195,725			12,596,106			3,748,444
Net investment income		22,497,681			31,672,721			25,131,524
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(20,276,429	)		(6,674,621	)		(5,763,950	)
Investments — affiliated (Note 2)		3,107			191			149
In-kind redemptions — unaffiliated		40,887,099			193,861,689			47,973,050
Realized gain distributions from affiliated funds		97			209			26
Net realized gain		20,613,874			187,187,468			42,209,275
Net change in unrealized appreciation/depreciation		130,548,641			665,112,454			5,477,996
Net realized and unrealized gain		151,162,515			852,299,922			47,687,271
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	173,660,196		$	883,972,643		$	72,818,795

See notes to financial statements.

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Dow Jones U.S. ETF						iShares Transportation Average  ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	17,941,736		$	17,750,833		$	8,132,816		$	8,309,275
Net realized gain (loss)		11,828,394			65,118,389			65,334,280			(45,474,846	)
Net change in unrealized appreciation/depreciation		134,033,913			(94,118,144	)		51,399,806			(54,713,367	)
Net increase (decrease) in net assets resulting from operations		163,804,043			(11,248,922	)		124,866,902			(91,878,938	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(18,010,104	)		(19,570,280	)		(8,584,148	)		(8,592,453	)
Total distributions to shareholders		(18,010,104	)		(19,570,280	)		(8,584,148	)		(8,592,453	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		74,257,888			127,991,606			1,935,091,399			1,763,351,888
Cost of shares redeemed		(26,413,681	)		(148,855,518	)		(1,649,499,268	)		(2,291,005,221	)
Net increase (decrease) in net assets from capital share transactions		47,844,207			(20,863,912	)		285,592,131			(527,653,333	)
INCREASE (DECREASE) IN NET ASSETS		193,638,146			(51,683,114	)		401,874,885			(628,124,724	)
NET ASSETS
Beginning of year		917,233,841			968,916,955			564,723,085			1,192,847,809
End of year	$	1,110,871,987		$	917,233,841		$	966,597,970		$	564,723,085
Undistributed net investment income included in net assets at end of year	$	680,558		$	611,701		$	—		$	—
SHARES ISSUED AND REDEEMED
Shares sold		650,000			1,250,000			12,600,000			12,200,000
Shares redeemed		(250,000	)		(1,550,000	)		(10,700,000	)		(15,950,000	)
Net increase (decrease) in shares outstanding		400,000			(300,000	)		1,900,000			(3,750,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S.  Energy ETF						iShares U.S.  Healthcare ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	27,355,810		$	34,112,212		$	22,497,681		$	23,657,289
Net realized gain (loss)		(13,290,628	)		(127,811,059	)		20,613,874			138,406,693
Net change in unrealized appreciation/depreciation		(11,220,016	)		(200,298,353	)		130,548,641			(241,375,288	)
Net increase (decrease) in net assets resulting from operations		2,845,166			(293,997,200	)		173,660,196			(79,311,306	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(27,753,775	)		(34,976,627	)		(24,154,405	)		(41,677,249	)
Total distributions to shareholders		(27,753,775	)		(34,976,627	)		(24,154,405	)		(41,677,249	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		744,590,274			605,799,967			643,518,210			1,295,784,371
Cost of shares redeemed		(809,559,508	)		(1,246,938,677	)		(690,074,440	)		(1,725,232,328	)
Net decrease in net assets from capital share transactions		(64,969,234	)		(641,138,710	)		(46,556,230	)		(429,447,957	)
INCREASE (DECREASE) IN NET ASSETS		(89,877,843	)		(970,112,537	)		102,949,561			(550,436,512	)
NET ASSETS
Beginning of year		1,249,003,324			2,219,115,861			1,808,436,564			2,358,873,076
End of year	$	1,159,125,481		$	1,249,003,324		$	1,911,386,125		$	1,808,436,564
Undistributed net investment income included in net assets at end of year	$	—		$	154,308		$	931,554		$	2,588,186
SHARES ISSUED AND REDEEMED
Shares sold		18,900,000			16,600,000			4,250,000			8,450,000
Shares redeemed		(20,750,000	)		(31,250,000	)		(4,700,000	)		(11,500,000	)
Net decrease in shares outstanding		(1,850,000	)		(14,650,000	)		(450,000	)		(3,050,000	)

See notes to financial statements.

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares U.S.  Technology ETF						iShares U.S.  Utilities ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	31,672,721		$	33,051,142		$	25,131,524		$	19,832,855
Net realized gain (loss)		187,187,468			125,899,815			42,209,275			(7,194,609	)
Net change in unrealized appreciation/depreciation		665,112,454			(292,658,697	)		5,477,996			77,522,700
Net increase (decrease) in net assets resulting from operations		883,972,643			(133,707,740	)		72,818,795			90,160,946
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(31,233,037	)		(32,951,300	)		(25,227,655	)		(26,759,287	)
Total distributions to shareholders		(31,233,037	)		(32,951,300	)		(25,227,655	)		(26,759,287	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,103,058,373			892,739,855			504,457,483			792,166,468
Cost of shares redeemed		(957,278,403	)		(1,202,109,593	)		(815,999,744	)		(439,792,849	)
Net increase (decrease) in net assets from capital share transactions		145,779,970			(309,369,738	)		(311,542,261	)		352,373,619
INCREASE (DECREASE) IN NET ASSETS		998,519,576			(476,028,778	)		(263,951,121	)		415,775,278
NET ASSETS
Beginning of year		2,393,714,318			2,869,743,096			1,065,623,975			649,848,697
End of year	$	3,392,233,894		$	2,393,714,318		$	801,672,854		$	1,065,623,975
Undistributed net investment income included in net assets at end of year	$	539,726		$	99,842		$	—		$	—
SHARES ISSUED AND REDEEMED
Shares sold		9,200,000			8,250,000			4,000,000			6,900,000
Shares redeemed		(8,050,000	)		(11,600,000	)		(6,600,000	)		(3,950,000	)
Net increase (decrease) in shares outstanding		1,150,000			(3,350,000	)		(2,600,000	)		2,950,000

See notes to financial statements.

FINANCIAL STATEMENTS 53

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Dow Jones U.S. ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	103.06		$	105.32		$	95.10		$	80.50		$	70.31
Income from investment operations:
Net investment incomea		2.01			1.92			1.77			1.57			1.47
Net realized and unrealized gain (loss)b		16.40			(2.11	)		10.22			14.58			10.20
Total from investment operations		18.41			(0.19	)		11.99			16.15			11.67
Less distributions from:
Net investment income		(2.02	)		(2.07	)		(1.77	)		(1.55	)		(1.48	)
Total distributions		(2.02	)		(2.07	)		(1.77	)		(1.55	)		(1.48	)
Net asset value, end of year	$	119.45		$	103.06		$	105.32		$	95.10		$	80.50
Total return		18.04	%		(0.14	)%		12.68	%		20.23	%		16.85	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,110,872		$	917,234		$	968,917		$	889,168		$	712,416
Ratio of expenses to average net assets		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets		1.82	%		1.88	%		1.74	%		1.78	%		2.04	%
Portfolio turnover ratec		4	%		4	%		4	%		5	%		7	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Transportation Average ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	141.18		$	153.92		$	137.21		$	110.07		$	93.21
Income from investment operations:
Net investment incomea		1.54			1.50			1.24			1.24			1.09
Net realized and unrealized gain (loss)b		22.75			(12.63	)		16.73			27.13			16.90
Total from investment operations		24.29			(11.13	)		17.97			28.37			17.99
Less distributions from:
Net investment income		(1.64	)		(1.61	)		(1.26	)		(1.23	)		(1.13	)
Total distributions		(1.64	)		(1.61	)		(1.26	)		(1.23	)		(1.13	)
Net asset value, end of year	$	163.83		$	141.18		$	153.92		$	137.21		$	110.07
Total return		17.32	%		(7.24	)%		13.10	%		25.91	%		19.51	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	966,598		$	564,723		$	1,192,848		$	857,587		$	539,321
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		0.99	%		1.05	%		0.80	%		1.00	%		1.13	%
Portfolio turnover ratec		5	%		11	%		22	%		12	%		12	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 55

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Energy ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	37.91		$	46.62		$	53.49		$	44.70		$	41.05
Income from investment operations:
Net investment incomea		0.84			1.06			1.02			0.77			0.69
Net realized and unrealized gain (loss)b		(0.62	)		(8.66	)		(6.87	)		8.77			3.69
Total from investment operations		0.22			(7.60	)		(5.85	)		9.54			4.38
Less distributions from:
Net investment income		(0.86	)		(1.11	)		(1.02	)		(0.75	)		(0.73	)
Total distributions		(0.86	)		(1.11	)		(1.02	)		(0.75	)		(0.73	)
Net asset value, end of year	$	37.27		$	37.91		$	46.62		$	53.49		$	44.70
Total return		0.52	%		(16.20	)%		(11.03	)%		21.57	%		10.81	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,159,125		$	1,249,003		$	2,219,116		$	2,414,897		$	1,215,787
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		2.17	%		2.80	%		2.04	%		1.58	%		1.65	%
Portfolio turnover ratec		18	%		15	%		7	%		6	%		9	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Healthcare ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	144.67		$	151.70		$	122.07		$	99.61		$	78.11
Income from investment operations:
Net investment incomea		1.81			1.70			1.45			1.37			1.39
Net realized and unrealized gain (loss)b		14.07			(5.63	)		29.70			22.39			21.48
Total from investment operations		15.88			(3.93	)		31.15			23.76			22.87
Less distributions from:
Net investment income		(1.93	)		(3.10	)		(1.52	)		(1.30	)		(1.37	)
Total distributions		(1.93	)		(3.10	)		(1.52	)		(1.30	)		(1.37	)
Net asset value, end of year	$	158.62		$	144.67		$	151.70		$	122.07		$	99.61
Total return		11.06	%		(2.64	)%		25.64	%		23.99	%		29.59	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,911,386		$	1,808,437		$	2,358,873		$	2,703,810		$	986,141
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		1.21	%		1.13	%		1.05	%		1.21	%		1.63	%
Portfolio turnover ratec		6	%		7	%		8	%		5	%		6	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 57

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Technology ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	102.30		$	107.28		$	90.83		$	73.63		$	75.75
Income from investment operations:
Net investment incomea		1.33			1.30			1.20			1.01			0.78
Net realized and unrealized gain (loss)b		35.87			(4.97	)		16.47			17.18			(2.14	)
Total from investment operations		37.20			(3.67	)		17.67			18.19			(1.36	)
Less distributions from:
Net investment income		(1.32	)		(1.31	)		(1.22	)		(0.99	)		(0.76	)
Total distributions		(1.32	)		(1.31	)		(1.22	)		(0.99	)		(0.76	)
Net asset value, end of year	$	138.18		$	102.30		$	107.28		$	90.83		$	73.63
Total return		36.57	%		(3.45	)%		19.53	%		24.84	%		(1.77	)%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,392,234		$	2,393,714		$	2,869,743		$	3,946,472		$	1,859,214
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		1.11	%		1.24	%		1.18	%		1.21	%		1.08	%
Portfolio turnover ratec		4	%		8	%		8	%		9	%		5	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Utilities ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	121.09		$	111.09		$	108.15		$	102.50		$	87.59
Income from investment operations:
Net investment incomea		3.69			3.37			3.31			3.28			3.10
Net realized and unrealized gainb		8.46			11.18			3.11			5.60			14.84
Total from investment operations		12.15			14.55			6.42			8.88			17.94
Less distributions from:
Net investment income		(3.94	)		(4.55	)		(3.48	)		(3.23	)		(3.03	)
Total distributions		(3.94	)		(4.55	)		(3.48	)		(3.23	)		(3.03	)
Net asset value, end of year	$	129.30		$	121.09		$	111.09		$	108.15		$	102.50
Total return		10.16	%		13.61	%		5.97	%		9.08	%		21.00	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	801,673		$	1,065,624		$	649,849		$	740,802		$	1,117,295
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		2.96	%		3.02	%		2.96	%		3.38	%		3.41	%
Portfolio turnover ratec		9	%		6	%		3	%		8	%		5	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 59

Notes to Financial Statements

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification Classification
Dow Jones U.S.	Diversified
Transportation Average	Non-diversified
U.S. Energy	Non-diversified
U.S. Healthcare	Non-diversified
U.S. Technology	Non-diversified
U.S. Utilities	Non-diversified

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

• Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration factors that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.

NOTES TO FINANCIAL STATEMENTS 61

Notes to Financial Statements (Continued)

iSHARES^® TRUST

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of April 30, 2017 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated and recorded as a reduction of cost of the related investment and/or reclassified to capital gains. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

On October 11, 2016, BlackRock, Inc. (“BlackRock”) implemented changes required by amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. The Funds may be exposed to additional risks when reinvesting the cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00 and which may be subject to redemption gates or liquidity fees under certain circumstances.

Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of April 30, 2017, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of April 30, 2017 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of April 30, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
Dow Jones U.S.
Barclays Capital Inc.	$	204,798	$	204,798	$	—
BNP Paribas New York Branch		372,225		372,225		—
BNP Paribas Prime Brokerage Inc.		448,930		448,930		—
BNP Paribas Prime Brokerage International Ltd.		3,646		3,646		—
Citigroup Global Markets Inc.		2,284,561		2,284,561		—
Credit Suisse Securities (USA) LLC		1,510,501		1,510,501		—
Deutsche Bank Securities Inc.		2,236,169		2,236,169		—
Goldman Sachs & Co.		3,169,298		3,169,298		—
HSBC Bank PLC		590,232		590,232		—
Jefferies LLC		425		425		—
JPMorgan Securities LLC		3,630,551		3,630,551		—
Merrill Lynch, Pierce, Fenner & Smith		1,397,777		1,397,777		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		2,668,521		2,668,521		—
State Street Bank & Trust Company		1,953,306		1,953,306		—
UBS AG		157,954		157,954		—
UBS Securities LLC		736,662		736,662		—
Wells Fargo Securities LLC		62,782		62,782		—
	$	21,428,338	$	21,428,338	$	—
Transportation Average
Goldman Sachs & Co.	$	432,637	$	432,637	$	—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		386,464		386,464		—
State Street Bank & Trust Company		2,290,550		2,290,550		—
	$	3,109,651	$	3,109,651	$	—

NOTES TO FINANCIAL STATEMENTS 63

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
U.S. Energy
Barclays Capital Inc.	$	761,044	$	761,044	$	—
BNP Paribas New York Branch		823,737		823,737		—
BNP Paribas Prime Brokerage Inc.		475,883		475,883		—
Citigroup Global Markets Inc.		1,451,767		1,451,767		—
Credit Suisse Securities (USA) LLC		120,357		120,357		—
Deutsche Bank Securities Inc.		4,812,436		4,812,436		—
Goldman Sachs & Co.		4,166,358		4,166,358		—
JPMorgan Securities LLC		2,886,336		2,886,336		—
Merrill Lynch, Pierce, Fenner & Smith		30,702		30,702		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		26,563		26,563		—
Wells Fargo Securities LLC		2,614,964		2,607,159		(7,805	)
	$	18,170,147	$	18,162,342	$	(7,805	)
U.S. Healthcare
Barclays Capital Inc.	$	733,621	$	733,621	$	—
BNP Paribas New York Branch		103,543		103,543		—
BNP Paribas Prime Brokerage International Ltd.		5,056		5,056		—
Citigroup Global Markets Inc.		9,964,276		9,964,276		—
Credit Suisse Securities (USA) LLC		6,008,015		6,008,015		—
Deutsche Bank Securities Inc.		2,418,442		2,418,442		—
Goldman Sachs & Co.		5,288,912		5,288,912		—
HSBC Bank PLC		47,524		47,524		—
JPMorgan Securities LLC		3,160,716		3,160,716		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		3,763,303		3,763,303		—
Scotia Capital (USA) Inc.		35,709		35,709		—
State Street Bank & Trust Company		1,866,981		1,866,981		—
UBS AG		807,002		807,002		—
UBS Securities LLC		192,588		192,329		(259	)
Wells Fargo Securities LLC		1,273,702		1,273,702		—
	$	35,669,390	$	35,669,131	$	(259	)

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
U.S. Technology
Barclays Capital Inc.	$	13,376	$	13,376	$	—
BNP Paribas New York Branch		643,324		643,324		—
BNP Paribas Prime Brokerage International Ltd.		3,354,569		3,354,569		—
Citigroup Global Markets Inc.		7,108,769		7,108,769		—
Credit Suisse Securities (USA) LLC		21,083		21,083		—
Deutsche Bank Securities Inc.		20,475,554		20,475,554		—
Goldman Sachs & Co.		8,680,507		8,680,507		—
Jefferies LLC		911,547		911,547		—
JPMorgan Securities LLC		15,148,041		15,148,041		—
Merrill Lynch, Pierce, Fenner & Smith		3,846,763		3,846,763		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		13,591,753		13,591,753		—
Nomura Securities International Inc.		12,298		12,298		—
Scotia Capital (USA) Inc.		2,892,657		2,892,657		—
State Street Bank & Trust Company		12,157,286		12,157,286		—
UBS AG		31,411		31,411		—
UBS Securities LLC		242,634		242,634		—
Wells Fargo Securities LLC		45,511		45,511		—
	$	89,177,083	$	89,177,083	$	—
U.S. Utilities
Deutsche Bank Securities Inc.	$	157,495	$	157,495	$	—
JPMorgan Securities LLC		155,364		155,364		—
Merrill Lynch, Pierce, Fenner & Smith		4,370,830		4,301,800		(69,030	)
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		39		39		—
Nomura Securities International Inc.		31,620		31,002		(618	)
	$	4,715,348	$	4,645,700	$	(69,648	)

^a  Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

^b  Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

RECENT ACCOUNTING STANDARD

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued a new rule, Investment Company Reporting Modernization, that modernizes and enhances the reporting and disclosure of information by registered investment companies. As part of these changes, the new rule amends Regulation S-X to require standardized, enhanced disclosures related to derivatives and updates to other disclosures in investment company financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is evaluating the impact, if any, of these changes on the Funds’ financial statements.

NOTES TO FINANCIAL STATEMENTS 65

Notes to Financial Statements (Continued)

iSHARES^® TRUST

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent Trustees).

For its investment advisory services to the iShares Dow Jones U.S. ETF, BFA is entitled to an annual investment advisory fee of 0.20%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.

For its investment advisory services to each of the iShares Transportation Average, iShares U.S. Energy, iShares U.S. Healthcare, iShares U.S. Technology and iShares U.S. Utilities ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.48	%	First $10 billion
	0.43		Over $10 billion, up to and including $20  billion
	0.38		Over $20 billion, up to and including $30 billion
	0.34		Over $30 billion, up to and including $40 billion
	0.33		Over $40 billion, up to and including $50 billion
	0.31		Over $50 billion

The SEC has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement, each Fund retains 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For the year ended April 30, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Dow Jones U.S.	$	67,410
Transportation Average		24,010
U.S. Energy		101,014
U.S. Healthcare		116,809
U.S. Technology		147,186
U.S. Utilities		2,601

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended April 30, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
Dow Jones U.S.	$	4,573,803	$	2,417,266
U.S. Energy		13,099,855		20,059,775
U.S. Healthcare		23,223,044		5,363,945
U.S. Technology		21,593,669		7,975,605
U.S. Utilities		6,649,748		7,658,244

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain trustees and officers of the Trust are also officers of BTC and/or BFA.

NOTES TO FINANCIAL STATEMENTS 67

Notes to Financial Statements (Continued)

iSHARES^® TRUST

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended April 30, 2017 were as follows:

iShares ETF	Purchases		Sales
Dow Jones U.S.	$	52,389,834	$	39,373,770
Transportation Average		41,157,454		40,901,569
U.S. Energy		229,687,298		229,061,983
U.S. Healthcare		119,626,669		112,284,848
U.S. Technology		177,077,924		119,133,412
U.S. Utilities		76,823,250		80,629,185

In-kind transactions (see Note 4) for the year ended April 30, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Dow Jones U.S.	$	73,857,881	$	26,073,185
Transportation Average		1,931,531,013		1,646,458,565
U.S. Energy		740,525,514		805,999,669
U.S. Healthcare		640,037,677		685,174,706
U.S. Technology		1,096,884,377		953,758,829
U.S. Utilities		503,183,410		810,487,743

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5. PRINCIPAL RISKS

In the normal course of business, each Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk.

68 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, political and social conditions affecting those market sectors may have a significant impact on its investment performance.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

6. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of April 30, 2017, attributable to the characterization of corporate actions, the expiration of capital loss carryforwards, distributions

NOTES TO FINANCIAL STATEMENTS 69

Notes to Financial Statements (Continued)

iSHARES^® TRUST

paid in excess of taxable income and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:

iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
Dow Jones U.S.	$	1,012,716		$	137,225	$	(1,149,941	)
Transportation Average		55,150,442			451,332		(55,601,774	)
U.S. Energy		(41,025,490	)		243,657		40,781,833
U.S. Healthcare		26,348,249			92		(26,348,341	)
U.S. Technology		171,057,864			200		(171,058,064	)
U.S. Utilities		40,933,008			96,131		(41,029,139	)

The tax character of distributions paid during the years ended April 30, 2017 and April 30, 2016 was as follows:

iShares ETF	2017		2016
Dow Jones U.S.
Ordinary income	$	18,010,104	$	19,570,280
Transportation Average
Ordinary income	$	8,584,148	$	8,592,453
U.S. Energy
Ordinary income	$	27,753,775	$	34,976,627
U.S. Healthcare
Ordinary income	$	24,154,405	$	41,677,249
U.S. Technology
Ordinary income	$	31,233,037	$	32,951,300
U.S. Utilities
Ordinary income	$	25,227,655	$	26,759,287

As of April 30, 2017, the tax components of accumulated net earnings (losses) were as follows:

iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains  (Losses) a			Total
Dow Jones U.S.	$	670,935	$	(32,098,984	)	$	322,290,957		$	290,862,908
Transportation Average		—		(29,992,316	)		(72,052,291	)		(102,044,607	)
U.S. Energy		—		(101,357,179	)		(376,598,804	)		(477,955,983	)
U.S. Healthcare		931,554		(20,436,408	)		(8,322,010	)		(27,826,864	)
U.S. Technology		539,726		(56,262,740	)		528,808,151			473,085,137
U.S. Utilities		—		(28,579,378	)		(22,286,680	)		(50,866,058	)

^a  The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and the characterization of corporate actions.

70 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of April 30, 2017, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring  a		Expiring 2018		Expiring 2019		Total
Dow Jones U.S.	$	—	$	29,445,888	$	2,653,096	$	32,098,984
Transportation Average		21,306,416		3,834,866		4,851,034		29,992,316
U.S. Energy		43,425,789		47,146,200		10,785,190		101,357,179
U.S. Healthcare		13,179,695		5,013,547		2,243,166		20,436,408
U.S. Technology		30,147,510		19,733,772		6,381,458		56,262,740
U.S. Utilities		4,788,205		18,294,046		5,497,127		28,579,378

^a  Must be utilized prior to losses subject to expiration.

For the year ended April 30, 2017, the following Funds utilized their capital loss carryforwards as follows:

iShares ETF	Utilized
Dow Jones U.S.	$	1,988,593
Transportation Average		182,664
U.S. Technology		2,553,598
U.S. Utilities		877,806

Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2017, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

7. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”). The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. The Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit.

8. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

NOTES TO FINANCIAL STATEMENTS 71

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and

Shareholders of the iShares Dow Jones U.S. ETF, iShares Transportation Average ETF,

iShares U.S. Energy ETF, iShares U.S. Healthcare ETF,

iShares U.S. Technology ETF and iShares U.S. Utilities ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Dow Jones U.S. ETF, iShares Transportation Average ETF, iShares U.S. Energy ETF, iShares U.S. Healthcare ETF, iShares U.S. Technology ETF and iShares U.S. Utilities ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

June 22, 2017

72 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended April 30, 2017:

iShares ETF	Qualified Dividend Income
Dow Jones U.S.	$	18,571,265
Transportation Average		10,896,002
U.S. Energy		32,231,107
U.S. Healthcare		30,221,102
U.S. Technology		43,718,826
U.S. Utilities		28,735,202

For corporate shareholders, the percentage of income dividends paid during the fiscal year ended April 30, 2017 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends- Received Deduction
Dow Jones U.S.		96.72	%
Transportation Average		100.00
U.S. Energy		100.00
U.S. Healthcare		100.00
U.S. Technology		100.00
U.S. Utilities		100.00

TAX INFORMATION 73

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Dow Jones U.S.		$1.990540	$	—	$	0.029831	$	2.020371		99	%		—	%		1	%		100	%
Transportation Average		1.639750		—		—		1.639750		100			—			—			100
U.S Healthcare		1.926260		—		—		1.926260		100			—			—			100
U.S. Utilities		3.904307		—		0.035108		3.939415		99			—			1			100

Premium/Discount Information

The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of a fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a fund on a given day, generally at the time the NAV is calculated. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of the NAV.

The following information shows the frequency of distributions of premiums and discounts for each of the Funds. The information shown for each Fund is for five calendar years (or from the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

74 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares Dow Jones U.S. ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		538		40.76	%
At NAV		186		14.09
Less than 0.0% and Greater than –0.5%		596		45.15
		1,320		100.00	%

iShares Transportation Average ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		553		41.89	%
At NAV		264		20.00
Less than 0.0% and Greater than –0.5%		502		38.03
Less than –0.5%		1		0.08
		1,320		100.00	%

iShares U.S. Energy ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		547		41.44	%
At NAV		228		17.27
Less than 0.0% and Greater than –0.5%		545		41.29
		1,320		100.00	%

SUPPLEMENTAL INFORMATION 75

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares U.S. Healthcare ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		594		45.00	%
At NAV		270		20.45
Less than 0.0% and Greater than –0.5%		456		34.55
		1,320		100.00	%

iShares U.S. Technology ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		552		41.82	%
At NAV		257		19.47
Less than 0.0% and Greater than –0.5%		511		38.71
		1,320		100.00	%

iShares U.S. Utilities ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		435		32.95	%
At NAV		297		22.50
Less than 0.0% and Greater than –0.5%		588		44.55
		1,320		100.00	%

76 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 334 funds (as of April 30, 2017) within the Exchange-Traded Fund Complex. Drew E. Lawton, from October 2016 to June 2017, and Richard L. Fagnani, from April 2017 to June 2017, served as Advisory Board Members for iShares Trust, iShares, Inc. and iShares U.S. ETF Trust with respect to all funds within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small and Benjamin Archibald, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Wiedman, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

Interested Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Robert S. Kapitoa (60)	Trustee (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).	Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedmanb (46)	Trustee (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Director of iShares, Inc. (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^a  Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

^b  Mark K. Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

TRUSTEE AND OFFICER INFORMATION 77

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Cecilia H. Herbert (68)	Trustee (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School.	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2016); Trustee of Forward Funds (17 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (61)	Trustee (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (62)	Trustee (since 2017).	Retired; Partner, KPMG LLP (2002-2016).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
Charles A. Hurty (73)	Trustee (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (61)	Trustee (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).
Drew E. Lawton (58)	Trustee (since 2017).	Senior Managing Director of New York Life Insurance Company (2010-2015).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (55)	Trustee (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

78 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Madhav V. Rajan (52)	Trustee (since 2011); Equity Plus Committee Chair and 15(c) Committee Chair (since 2016).	Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).

TRUSTEE AND OFFICER INFORMATION 79

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013): Secretary of the BlackRock-advised Mutual Funds (since 2012).
Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).
Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).
Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

^c  Manish Mehta served as President until October 15, 2016.

80 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 81

Notes:

82 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices, LLC, nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds’ website.

©2017 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-401-0417

APRIL 30, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares U.S. Basic Materials ETF  |  IYM  |  NYSE Arca

^Ø  iShares U.S. Consumer Goods ETF  |  IYK  |  NYSE Arca

^Ø  iShares U.S. Consumer Services ETF  |  IYC  |  NYSE Arca

^Ø  iShares U.S. Financial Services ETF  |  IYG  |  NYSE Arca

^Ø  iShares U.S. Financials ETF  |  IYF  |  NYSE Arca

^Ø  iShares U.S. Industrials ETF  |  IYJ  |  NYSE Arca

^Ø  iShares MSCI KLD 400 Social ETF  |  DSI  |  NYSE Arca

^Ø  iShares MSCI USA ESG Select ETF  |  KLD  |  NYSE Arca

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	22
Shareholder Expenses	22
Schedules of Investments	23
iShares U.S. Basic Materials ETF	23
iShares U.S. Consumer Goods ETF	25
iShares U.S. Consumer Services ETF	28
iShares U.S. Financial Services ETF	32
iShares U.S. Financials ETF	35
iShares U.S. Industrials ETF	40
iShares MSCI KLD 400 Social ETF	44
iShares MSCI USA ESG Select ETF	52
Financial Statements	56
Financial Highlights	66
Notes to Financial Statements	74
Report of Independent Registered Public Accounting Firm	86
Tax Information	87
Supplemental Information	88
Trustee and Officer Information	91

Management’s Discussion of Fund Performance

iSHARES^® TRUST

U.S. EQUITY MARKET OVERVIEW

U.S. stocks posted strong returns for the 12 months ended April 30, 2017 (the “reporting period”). The Russell 3000^® Index, a broad measure of U.S. equity performance, returned 18.58% for the reporting period.

Despite the strong overall performance, the U.S. equity market rose modestly in the first half of the reporting period. One contributing factor was a sluggish U.S. economy, which grew by 2.0% in 2016, its slowest calendar-year growth rate since 2011. Although economic growth improved in the second half of 2016, it slowed again in early 2017, as the economy grew at a 0.7% annual rate in the first quarter of 2017.

On the positive side, job growth remained robust as the unemployment rate declined to a 10-year low of 4.4%, and retail sales grew by 4.5% during the reporting period. However, other aspects of the economy continued to struggle, for example, manufacturing activity and business productivity remained muted, and government defense spending and investment declined during the reporting period.

A heightened level of volatility was also evident in the stock market during the first half of the reporting period amid continuing geopolitical conflicts and global unrest. In particular, equity investors reacted sharply to the affirmative vote on the United Kingdom’s referendum to leave the European Union, terrorist attacks in France, and an attempted coup in Turkey.

The bulk of the U.S. equity market’s advance for the reporting period occurred after the U.S. presidential election in November 2016. The new administration was expected to enact pro-business fiscal policies, including lower taxes, decreased regulation, and increased fiscal spending, aimed at stimulating economic growth. These expectations drove a strong equity market advance that extended through the end of the reporting period, even as uncertainty emerged regarding how quickly the new administration would be able to implement its new policies.

The stock market remained on an upward trajectory despite two short-term interest rate increases by the U.S. Federal Reserve Bank (“the Fed”) in the last half of the reporting period. Mixed economic data kept the Fed on hold during the first six months of the reporting period, but improving growth in the third quarter of 2016 led the Fed to raise its short-term interest rate target in December 2016. The Fed acted again in March 2017, responding to the highest year-over-year inflation rate in five years. The two Fed interest rate increases raised the federal funds interest rate target to a range of 0.75% - 1.00%.

For the reporting period, small-capitalization stocks generated the strongest returns, outperforming mid- and large-capitalization stocks. Value and growth stocks were mixed with growth faring better than value among large-capitalization stocks, while value outperformed growth among mid- and small-capitalization stocks.

In terms of sector performance, the reporting period featured two distinct phases. Initially, defensive sectors of the equity market, such as real estate, utilities, consumer staples, and telecommunication services, were the top performers. These stocks led the market’s advance for most of 2016 as investors flocked to sectors with relatively high dividend yields in a low interest rate environment.

However, after the presidential election, investors rotated into more economically sensitive sectors of the market, including financials, information technology, materials, and industrials. These sectors were the leading performers for the full reporting period, while the more defensive sectors of the market trailed the broader market.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® U.S. BASIC MATERIALS ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.88%		16.81%		17.43%		16.88%		16.81%		17.43%
5 Years		6.96%		6.96%		7.42%		40.01%		40.02%		43.01%
10 Years		4.90%		4.90%		5.36%		61.37%		61.34%		68.53%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 22 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,161.80	$	2.36	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. BASIC MATERIALS ETF

The iShares U.S. Basic Materials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the basic materials sector, as represented by the Dow Jones U.S. Basic Materials Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 16.88%, net of fees, while the total return for the Index was 17.43%.

The Index posted a strong gain for the reporting period, in line with the performance of the broader U.S. equity market.

A recovery in commodities prices was the most important driver of the Index’s robust performance during the reporting period. Commodities prices rose amid stronger demand for raw materials, particularly from China. After an 18-month downturn, China’s manufacturing sector began to recover in the second half of 2016, leading to increased demand for commodities.

Basic materials stocks also benefited from the economic optimism that developed after the U.S. presidential election in November 2016. Expectations that the new administration would implement policies to stimulate economic growth led to a sharp rise in economically sensitive sectors of the market, including basic materials stocks. In particular, plans for increased government spending on infrastructure improvements contributed to the advance in basic materials stocks during the reporting period.

Chemicals stocks, which represented approximately 80% of the Index on average during the reporting period, were the largest contributors to the Index’s performance. The chemicals industry benefited from continued strength in two important end markets, vehicle manufacturing and commercial construction. Additionally, the shale gas boom in the U.S. drove new investment in plants and equipment for petrochemical production.

Metals and mining stocks also contributed to the Index’s performance, reflecting a 15% increase in industrial metals prices during the reporting period. Within the metals and mining industry, steel producers were the most significant performance contributors, benefiting from reduced production capacity in China.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Chemicals	83.04	%
Metals & Mining	15.79
Paper & Forest Products	0.72
Oil, Gas & Consumable Fuels	0.45
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Dow Chemical Co. (The)	11.67	%
EI du Pont de Nemours & Co.	11.48
Monsanto Co.	8.52
Praxair Inc.	5.93
Ecolab Inc.	5.64
Air Products & Chemicals Inc.	5.09
PPG Industries Inc.	4.70
LyondellBasell Industries NV Class A	4.66
Nucor Corp.	3.26
Newmont Mining Corp.	2.99
TOTAL	63.94	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® U.S. CONSUMER GOODS ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.04%		9.05%		9.48%		9.04%		9.05%		9.48%
5 Years		12.42%		12.42%		12.91%		79.60%		79.60%		83.55%
10 Years		9.00%		8.99%		9.48%		136.66%		136.50%		147.28%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 22 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,077.40	$	2.27	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. CONSUMER GOODS ETF

The iShares U.S. Consumer Goods ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the consumer goods sector, as represented by the Dow Jones U.S. Consumer Goods Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 9.04%, net of fees, while the total return for the Index was 9.48%.

As represented by the Index, consumer goods stocks posted positive returns during the reporting period but underperformed the broader U.S. equity market.

The tobacco and household products industries contributed the most to the Index’s performance for the reporting period. Tobacco stocks benefited from such trends as lower-risk product introductions, merger possibilities, and generous dividend payouts. The household products industry, which makes non-durable goods used in and around the home, benefited from steady demand for its essential products as well as solid dividend payouts.

The food products industry also contributed to the Index’s performance during the reporting period. In addition to steady consumer demand, many large food and beverage companies have relatively high dividend payouts, which tend to attract income-oriented investors. Merger and acquisition activity also helped this industry.

The autos and components industry further contributed to the Index’s performance for the reporting period. The stocks of many large automakers and their suppliers of component parts benefited from strong U.S. vehicle sales.

In contrast, textile and apparel stocks detracted from the Index’s performance for the reporting period, driven lower in part by competition from low-cost retailers and the continuing rise of e-commerce.

ALLOCATION BY SECTOR

As of 4/30/17

Sector	Percentage of Total Investments*
Food, Beverage & Tobacco		51.63	%
Household & Personal Products		17.89
Consumer Durables & Apparel		13.39
Automobiles & Components		10.13
Software & Services		3.19
Capital Goods		1.97
Retailing		1.25
Diversified Financials		0.37
Commercial & Professional Services		0.18
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security	Percentage of Total Investments*
Procter & Gamble Co. (The)		9.92	%
Philip Morris International Inc.		7.64
Coca-Cola Co. (The)		7.41
PepsiCo Inc.		7.18
Altria Group Inc.		6.19
NIKE Inc. Class B		3.26
Mondelez International Inc. Class A		3.05
Colgate-Palmolive Co.		2.83
Kraft Heinz Co. (The)		2.39
Reynolds American Inc.		2.37
TOTAL		52.24	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® U.S. CONSUMER SERVICES ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.71%		15.72%		16.23%		15.71%		15.72%		16.23%
5 Years		16.30%		16.29%		16.81%		112.74%		112.72%		117.49%
10 Years		10.25%		10.25%		10.69%		165.30%		165.30%		176.20%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 22 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,155.70	$	2.35	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. CONSUMER SERVICES ETF

The iShares U.S. Consumer Services ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the consumer services sector, as represented by the Dow Jones U.S. Consumer Services Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 15.71%, net of fees, while the total return for the Index was 16.23%.

As represented by the Index, consumer services stocks posted positive returns for the reporting period but modestly trailed the broader U.S. equity market.

The retail industry contributed the most to the Index’s performance for the reporting period, led by the internet and direct marketing retail stocks, which benefited from consumers’ continuing shift to online shopping. In an environment of rising consumer confidence, specialty retail stocks were also meaningful contributors to the Index’s return, led by home improvement retailers.

The media industry made a solid contribution to the Index’s performance for the reporting period. Cable and satellite television stocks benefited from industry consolidation, which helped increase profit margins among the industry’s major providers.

Despite the overall strong performance by the retail industry, the multiline retail and drug retail industries detracted from the Index’s performance for the reporting period. Consisting of department and general merchandise stores, multiline retailers continued to struggle against consumer trends toward online commerce.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Retailing	38.30	%
Media	23.57
Consumer Services	15.99
Food & Staples Retailing	13.47
Transportation	4.36
Health Care Equipment & Services	2.43
Commercial & Professional Services	1.55
Software & Services	0.14
Technology Hardware & Equipment	0.10
Capital Goods	0.09
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Amazon.com Inc.	11.49	%
Home Depot Inc. (The)	5.97
Comcast Corp. Class A	5.82
Walt Disney Co. (The)	4.65
McDonald’s Corp.	3.59
Wal-Mart Stores Inc.	3.55
Priceline Group Inc. (The)	2.85
Starbucks Corp.	2.75
CVS Health Corp.	2.65
Costco Wholesale Corp.	2.44
TOTAL	45.76	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® U.S. FINANCIAL SERVICES ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		28.74%		28.74%		29.31%		28.74%		28.74%		29.31%
5 Years		15.92%		15.94%		16.42%		109.34%		109.46%		113.85%
10 Years		(0.48)%		(0.49)%		(0.13)%		(4.72)%		(4.81)%		(1.32)%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 22 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,211.00	$	2.41	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. FINANCIAL SERVICES ETF

The iShares U.S. Financial Services ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financial services sector, as represented by the Dow Jones U.S. Financial Services Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 28.74%, net of fees, while the total return for the Index was 29.31%.

As represented by the Index, financial services stocks posted very strong returns for the reporting period, widely outperforming the broader U.S. equity market.

The banking industry, which represented more than half of the Index on average during the reporting period, was the largest contributor to the Index’s performance. The industry’s strong performance resulted primarily from a rising interest rate environment, which generally leads to higher net interest margins for banks, as the Fed raised interest rates twice during the reporting period. The election of Donald Trump to the U.S. presidency in November 2016 drove expectations that the new administration’s policies would stimulate economic growth and reduce regulation, further helping the banking industry during the reporting period.

The capital markets industry, which comprised approximately 24% of the Index on average during the reporting period, was also a meaningful contributor to the Index’s performance, led by investment banking and brokerage companies. In addition to expected industry deregulation, investment bank and brokerage stocks benefited from increased trading volumes during the post-election market upturn. Asset management company stocks also performed well during the reporting period.

The information technology services industry, which comprised 11% of the Index on average during the reporting period, also contributed to the Index’s performance. Within the industry, credit card companies posted solid gains, generating revenue increases due to stronger consumer spending and an ongoing shift toward credit card payments over cash.

ALLOCATION BY SECTOR

As of 4/30/17

Sector	Percentage of Total Investments*
Banks		57.26	%
Diversified Financials		31.19
Software & Services		11.12
Insurance		0.43
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security	Percentage of Total Investments*
JPMorgan Chase & Co.		11.97	%
Wells Fargo & Co.		9.34
Bank of America Corp.		9.01
Visa Inc. Class A		6.53
Citigroup Inc.		6.31
MasterCard Inc. Class A		4.22
Goldman Sachs Group Inc. (The)		3.19
U.S. Bancorp.		3.15
Morgan Stanley		2.40
American Express Co.		2.31
TOTAL		58.43	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® U.S. FINANCIALS ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.52%		21.51%		22.04%		21.52%		21.51%		22.04%
5 Years		14.30%		14.30%		14.79%		95.06%		95.11%		99.33%
10 Years		0.56%		0.56%		0.93%		5.74%		5.73%		9.67%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 22 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,160.50	$	2.36	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. FINANCIALS ETF

The iShares U.S. Financials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financials sector, as represented by the Dow Jones U.S. Financials Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 21.52%, net of fees, while the total return for the Index was 22.04%.

As represented by the Index, financials stocks posted a positive return during the reporting period, outperforming the broader U.S. equity market.

The banking industry, which represented approximately 31% of the Index on average during the reporting period, was the largest contributor to the Index’s performance. The industry’s strong performance resulted primarily from a rising interest rate environment, which generally leads to higher net interest margins for banks, as the Fed raised interest rates twice during the reporting period. The election of Donald Trump to the U.S. presidency in November 2016 drove expectations that the new administration’s fiscal policies would stimulate economic growth and reduce regulation, further helping the banking industry.

The insurance industry, which represented approximately 16% of the Index on average during the reporting period, was a meaningful contributor, led by property and casualty insurance companies and life and health insurers. Property and casualty insurers performed well against a backdrop of domestic economic growth, an improving labor market, and rising consumer confidence, which helped support solid premium growth. Health insurers benefited from a greater number of insured people under the Affordable Care Act.

The capital markets industry, representing approximately 13% of the Index on average during the reporting period was also a meaningful contributor to the Index’s performance, led by investment banks and brokerage companies. These stocks benefited from expected industry deregulation and increased trading volumes during the post-election market upturn. Asset management company stocks also performed well as robust global market activity increased assets under management.

Real estate investment trusts further contributed to the Index’s performance for the reporting period, helped by strong earnings growth due in part to record occupancy rates.

ALLOCATION BY SECTOR

As of 4/30/17

Sector	Percentage of Total Investments*
Banks		32.34	%
Diversified Financials		25.63
Real Estate		20.56
Insurance		15.19
Software & Services		6.28
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security	Percentage of Total Investments*
Berkshire Hathaway Inc. Class B		6.83	%
JPMorgan Chase & Co.		6.76
Wells Fargo & Co.		5.27
Bank of America Corp.		5.09
Visa Inc. Class A		3.69
Citigroup Inc.		3.56
MasterCard Inc. Class A		2.38
Goldman Sachs Group Inc. (The)		1.80
U.S. Bancorp.		1.78
Chubb Ltd.		1.39
TOTAL		38.55	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® U.S. INDUSTRIALS ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.13%		20.14%		20.70%		20.13%		20.14%		20.70%
5 Years		14.39%		14.40%		14.90%		95.88%		95.97%		100.24%
10 Years		7.99%		7.99%		8.45%		115.67%		115.60%		124.99%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 22 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,160.80	$	2.36	$	1,000.00	$	1,022.60	$	2.21		0.44%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® U.S. INDUSTRIALS ETF

The iShares U.S. Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the industrials sector, as represented by the Dow Jones U.S. Industrials Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 20.13%, net of fees, while the total return for the Index was 20.70%.

The Index posted a strong gain for the reporting period and outperformed the broader U.S. equity market.

As the reporting period began, U.S. manufacturing activity had experienced a year-over-year decline, reflecting generally weak economic conditions globally. By the end of the reporting period, however, U.S. industrial production rose by 1.5% on a year-over-year basis. The increase was driven primarily by increased output from utilities and mining companies.

In addition to improving industrial production levels, the Index benefited from the economic optimism that developed after the U.S. presidential election in November 2016. Expectations that the new administration would implement policies to stimulate economic growth led to a sharp rise in economically sensitive sectors of the market. In particular, plans for increased government spending on infrastructure improvements benefited the industrials sector.

Producers of capital goods, which represented approximately 60% of the Index on average during the reporting period, contributed the most to the Index’s performance, led by the aerospace and defense and machinery industries. Aerospace and defense stocks benefited from expectations of an increase in U.S. military spending, while machinery stocks benefitted from strong U.S. vehicle sales.

In the transportation industry, railroad stocks were the leading contributors to the Index’s performance for the reporting period, as rail companies stood to benefit significantly from an improving U.S. economy and increased infrastructure spending.

The information technology services industry, electronic equipment, instrument, and component industry, and industrial conglomerates industry also contributed to the Index’s performance for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector	Percentage of Total Investments*
Capital Goods		59.21	%
Transportation		12.34
Software & Services		12.19
Materials		6.34
Technology Hardware & Equipment		4.31
Commercial & Professional Services		4.15
Pharmaceuticals, Biotechnology & Life Sciences		1.28
Utilities		0.18
TOTAL		100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security	Percentage of Total Investments*
General Electric Co.		8.59	%
3M Co.		3.96
Boeing Co. (The)		3.57
Honeywell International Inc.		3.39
Union Pacific Corp.		3.09
United Technologies Corp.		3.03
Accenture PLC Class A		2.56
United Parcel Service Inc. Class B		2.51
Lockheed Martin Corp.		2.28
Caterpillar Inc.		2.04
TOTAL		35.02	%

MANAGEMENT’S DISCUSSION S OF FUND PERFORMANCE 17

Management’s Discussion of Fund Performance

iSHARES^® MSCI KLD 400 SOCIAL ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.83%		16.84%		17.43%		16.83%		16.84%		17.43%
5 Years		12.97%		12.99%		13.54%		84.02%		84.13%		88.73%
10 Years		6.78%		6.78%		7.32%		92.78%		92.73%		102.66%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 22 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,130.60	$	2.64	$	1,000.00	$	1,022.30	$	2.51		0.50%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

The iShares MSCI KLD 400 Social ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI KLD 400 Social Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 16.83%, net of fees, while the total return for the Index was 17.43%.

As represented by the Index, stocks of socially responsible U.S. companies posted strong positive gains for the reporting period, slightly trailing the broader U.S. equity market.

After a modest advance over the first half of the reporting period, stocks of socially responsible U.S. companies soared along with the broad stock market following the election of President Donald Trump in November 2016.

Ten of the 11 sectors in the Index contributed to the Index’s performance for the reporting period. The information technology sector, which represented the largest portion of the Index on average, contributed the most to the Index’s return. Information technology stocks posted impressive gains following the election of President Trump, despite widespread criticism of his proposals by information technology executives during the campaign. Expectations by some analysts that the information technology sector would be among the top beneficiaries of President Trump’s corporate tax reduction proposals helped drive the sector’s gains. Several sector trends also benefited the information technology sector, including growth in cloud computing, internet software, and mobile online advertising.

The financials and consumer discretionary sectors also contributed to the Index’s performance. The financials sector benefited from rising interest rates and expectations of a more lenient regulatory environment under the new administration. The consumer discretionary sector benefited from a 16-year high in consumer confidence in March 2017, as the U.S. job market strengthened and consumer debt levels declined.

The telecommunication services sector detracted fractionally from the Index’s performance for the reporting period, as weak returns from large integrated telecommunications companies offset gains by wireless communications companies.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Information Technology	27.83	%
Consumer Discretionary	13.91
Health Care	12.18
Industrials	9.96
Financials	9.61
Consumer Staples	9.52
Energy	5.34
Real Estate	4.47
Materials	2.96
Telecommunication Services	2.41
Utilities	1.81
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Microsoft Corp.	5.36	%
Alphabet Inc. Class C	2.98
Alphabet Inc. Class A	2.90
Procter & Gamble Co. (The)	2.37
Verizon Communications Inc.	1.98
Coca-Cola Co. (The)	1.88
Walt Disney Co. (The)	1.85
Merck & Co. Inc.	1.82
Intel Corp.	1.82
Cisco Systems Inc.	1.81
TOTAL	24.77	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 19

Management’s Discussion of Fund Performance

iSHARES^® MSCI USA ESG SELECT ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.92%		18.90%		19.55%		18.92%		18.90%		19.55%
5 Years		12.00%		11.99%		12.57%		76.20%		76.18%		80.75%
10 Years		6.64%		6.63%		7.16%		90.14%		90.01%		99.73%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 22 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,138.90	$	2.65	$	1,000.00	$	1,022.30	$	2.51		0.50%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI USA ESG SELECT ETF

The iShares MSCI USA ESG Select ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI USA ESG Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 18.92%, net of fees, while the total return for the Index was 19.55%.

As represented by the Index, stocks of socially responsible U.S. companies posted strong positive gains for the reporting period, closely tracking broader stock market indexes.

Stocks of socially responsible U.S. companies posted a modest advance over the first half of the reporting period, despite a brief decrease following the U.K.’s “Brexit” vote in June 2016 to leave the European Union. The Index then soared along with the broad stock market following the election of President Donald Trump in November 2016.

All 10 sectors represented in the Index made contributions to the Index’s return for the reporting period. The information technology sector, which represented the largest portion of the Index on average during the reporting period, contributed the most to the Index’s return. Information technology stocks posted impressive gains following the election of President Trump, despite widespread criticism of his proposals by information technology executives during the campaign. Expectations by some analysts that the information technology sector would be among the top beneficiaries of President Trump’s corporate tax reduction proposals helped drive the sector’s gains. In addition, several industry trends benefitted information technology stocks, including growth in cloud computing, internet software, and mobile online advertising.

The industrials sector, helped by the capital goods and transportation industries during the reporting period, benefited from expectations that the new administration’s fiscal policies would stimulate economic growth and reduce regulation and President Trump’s infrastructure spending plans. The financials sector benefited from rising interest rates and expectations during the reporting period of a less stringent regulatory environment under President Trump.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Information Technology	25.27	%
Health Care	14.11
Industrials	13.05
Financials	11.43
Consumer Staples	11.32
Consumer Discretionary	10.08
Real Estate	4.58
Materials	4.39
Energy	3.04
Utilities	2.73
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Microsoft Corp.	4.62	%
3M Co.	4.56
Apple Inc.	3.72
Ecolab Inc.	3.17
Accenture PLC Class A	2.90
Henry Schein Inc.	2.43
Alphabet Inc. Class A	2.35
Cummins Inc.	2.14
BlackRock Inc.	2.10
Kellogg Co.	2.05
TOTAL	30.04	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 21

About Fund Performance

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on November 1, 2016 and held through April 30, 2017, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® U.S. BASIC MATERIALS ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 100.29%
CHEMICALS — 83.28%
AdvanSix Inc.a		48,744	$	1,328,761
Air Products & Chemicals Inc.		349,071		49,044,476
Albemarle Corp.		180,585		19,667,512
Ashland Global Holdings Inc.		99,812		12,326,782
Axalta Coating Systems Ltd.a		347,187		10,891,256
Cabot Corp.		99,772		6,005,277
Celanese Corp. Series A		226,084		19,678,351
CF Industries Holdings Inc.		373,976		10,000,118
Chemours Co. (The)		293,824		11,838,169
Dow Chemical Co. (The)		1,790,749		112,459,037
Eastman Chemical Co.		235,006		18,741,729
Ecolab Inc.		421,193		54,371,804
EI du Pont de Nemours & Co.		1,387,000		110,613,250
FMC Corp.		214,473		15,705,858
GCP Applied Technologies Inc.a,b		113,973		3,749,712
HB Fuller Co.		80,585		4,257,306
Huntsman Corp.		317,577		7,866,382
Ingevity Corp.a,b		67,541		4,270,617
International Flavors & Fragrances Inc.		126,797		17,572,796
LyondellBasell Industries NV Class A		529,527		44,882,709
Minerals Technologies Inc.		56,208		4,423,570
Monsanto Co.		703,442		82,028,372
Mosaic Co. (The)		561,803		15,129,355
NewMarket Corp.		14,832		6,981,422
Olin Corp.		265,344		8,525,503
Platform Specialty Products Corp.a,b		339,521		4,811,013
PolyOne Corp.		131,817		5,168,545
PPG Industries Inc.		412,447		45,303,178
Praxair Inc.		457,327		57,156,728
RPM International Inc.		214,290		11,263,082
Scotts Miracle-Gro Co. (The) Class A		71,042		6,862,657
Sensient Technologies Corp.		71,164		5,821,215
Westlake Chemical Corp.		59,971		3,733,195
WR Grace & Co.		109,539		7,637,059
				800,116,796
METALS & MINING — 15.83%
Alcoa Corp.		236,154		7,965,474
Allegheny Technologies Inc.		174,491		3,201,910
Carpenter Technology Corp.		74,952		3,043,051
Commercial Metals Co.		185,397		3,455,800
Compass Minerals International Inc.b		54,218		3,578,388
Freeport-McMoRan Inc.a		2,133,263		27,199,103

Security	Shares		Value
Newmont Mining Corp.		852,662	$	28,828,502
Nucor Corp.		511,515		31,371,215
Reliance Steel & Aluminum Co.		116,881		9,212,560
Royal Gold Inc.		104,811		7,408,042
Steel Dynamics Inc.		388,792		14,050,943
Stillwater Mining Co.a		193,598		3,480,892
U.S. Steel Corp.		279,608		6,240,851
Worthington Industries Inc.		70,483		3,066,011
				152,102,742
OIL, GAS & CONSUMABLE FUELS — 0.45%
CONSOL Energy Inc.a		283,426		4,302,407
				4,302,407
PAPER & FOREST PRODUCTS — 0.73%
Domtar Corp.		100,409		3,981,217
KapStone Paper and Packaging Corp.		141,146		2,976,769
				6,957,986
TOTAL COMMON STOCKS
(Cost: $989,947,292)				963,479,931
SHORT-TERM INVESTMENTS — 0.38%
MONEY MARKET FUNDS — 0.38%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		2,222,421		2,223,310
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		1,436,557		1,436,557
				3,659,867
TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,658,982)				3,659,867
TOTAL INVESTMENTS IN SECURITIES — 100.67%
(Cost: $993,606,274)f				967,139,798
Other Assets, Less Liabilities — (0.67)%				(6,392,857	)
NET ASSETS — 100.00%			$	960,746,941

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f The cost of investments for federal income tax purposes was $997,797,889. Net unrealized depreciation was $30,658,091, of which $40,495,322 represented gross unrealized appreciation on securities and $71,153,413 represented gross unrealized depreciation on securities.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® U.S. BASIC MATERIALS ETF

April 30, 2017

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	963,479,931	$	—	$	—	$	963,479,931
Money market funds		3,659,867		—		—		3,659,867
Total	$	967,139,798	$	—	$	—	$	967,139,798

See notes to financial statements.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® U.S. CONSUMER GOODS ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.82%
AUTO COMPONENTS — 3.66%
Adient PLC		29,889	$	2,198,635
Autoliv Inc.		28,179		2,823,254
BorgWarner Inc.		63,858		2,699,916
Cooper Tire & Rubber Co.		16,774		642,444
Dana Inc.		45,874		890,873
Delphi Automotive PLC		86,100		6,922,440
Gentex Corp.		91,761		1,894,865
Goodyear Tire & Rubber Co. (The)		80,375		2,911,986
Lear Corp.		22,175		3,163,486
Tenneco Inc.		17,579		1,108,004
Visteon Corp.a		10,521		1,083,137
				26,339,040
AUTOMOBILES — 6.46%
Ford Motor Co.		1,246,751		14,300,234
General Motors Co.		435,385		15,081,737
Harley-Davidson Inc.		56,320		3,199,539
Tesla Inc.a,b		39,615		12,441,883
Thor Industries Inc.		15,283		1,469,919
				46,493,312
BEVERAGES — 18.72%
Brown-Forman Corp. Class A		18,306		879,786
Brown-Forman Corp. Class B		56,497		2,673,438
Coca-Cola Co. (The)		1,234,188		53,255,212
Constellation Brands Inc. Class A		55,162		9,517,652
Dr Pepper Snapple Group Inc.		58,477		5,359,417
Molson Coors Brewing Co. Class B		58,892		5,647,154
Monster Beverage Corp.a,b		128,493		5,831,012
PepsiCo Inc.		455,845		51,638,122
				134,801,793
COMMERCIAL SERVICES & SUPPLIES — 0.18%
Herman Miller Inc.		19,092		631,945
HNI Corp.		14,100		659,316
				1,291,261
DISTRIBUTORS — 1.25%
Genuine Parts Co.		47,394		4,361,196
LKQ Corp.a		98,374		3,073,204
Pool Corp.		13,147		1,572,644
				9,007,044

Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES — 0.36%
Leucadia National Corp.		103,429	$	2,626,062
				2,626,062
FOOD PRODUCTS — 16.65%
Archer-Daniels-Midland Co.		182,398		8,344,709
B&G Foods Inc.		21,172		889,224
Bunge Ltd.		44,540		3,519,996
Campbell Soup Co.		61,787		3,555,224
Conagra Brands Inc.		132,053		5,121,015
Darling Ingredients Inc.a		52,482		794,053
Dean Foods Co.		28,914		570,762
Flowers Foods Inc.		58,716		1,151,421
General Mills Inc.		185,254		10,653,958
Hain Celestial Group Inc. (The)a		33,041		1,222,187
Hershey Co. (The)		44,607		4,826,477
Hormel Foods Corp.		86,138		3,021,721
Ingredion Inc.		22,926		2,838,697
JM Smucker Co. (The)		37,184		4,711,956
Kellogg Co.		80,748		5,733,108
Kraft Heinz Co. (The)		190,486		17,218,030
Lamb Weston Holdings Inc.		44,317		1,850,235
Lancaster Colony Corp.		6,197		780,202
McCormick & Co. Inc./MD		36,302		3,626,570
Mead Johnson Nutrition Co.		58,586		5,197,750
Mondelez International Inc. Class A		487,597		21,956,493
Pinnacle Foods Inc.		37,738		2,194,465
Post Holdings Inc.a,b		20,533		1,728,673
Snyder’s-Lance Inc.		27,378		965,348
TreeHouse Foods Inc.a		18,142		1,589,239
Tyson Foods Inc. Class A		91,648		5,889,300
				119,950,813
HOUSEHOLD DURABLES — 4.90%
CalAtlantic Group Inc.		23,062		835,306
DR Horton Inc.		108,533		3,569,650
Helen of Troy Ltd.a		8,596		808,024
Leggett & Platt Inc.		42,718		2,244,404
Lennar Corp. Class A		64,895		3,277,197
Lennar Corp. Class B		3,114		132,688
Mohawk Industries Inc.a		20,137		4,727,966
Newell Brands Inc.		154,075		7,355,540
NVR Inc.a		1,100		2,322,375
PulteGroup Inc.		91,364		2,071,222

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® U.S. CONSUMER GOODS ETF

April 30, 2017

Security	Shares		Value
Tempur Sealy International Inc.a,b		14,904	$	699,743
Toll Brothers Inc.		47,220		1,699,448
Tupperware Brands Corp.		16,244		1,166,482
Whirlpool Corp.		23,794		4,418,070
				35,328,115
HOUSEHOLD PRODUCTS — 16.41%
Church & Dwight Co. Inc.		81,328		4,028,176
Clorox Co. (The)		40,970		5,477,279
Colgate-Palmolive Co.		281,979		20,313,767
Energizer Holdings Inc.		19,779		1,171,510
Kimberly-Clark Corp.		113,625		14,742,844
Procter & Gamble Co. (The)		816,530		71,307,565
Spectrum Brands Holdings Inc.		7,816		1,123,394
				118,164,535
LEISURE PRODUCTS — 1.33%
Brunswick Corp./DE		28,592		1,622,596
Hasbro Inc.		35,728		3,541,002
Mattel Inc.		109,375		2,452,187
Polaris Industries Inc.		18,699		1,594,277
Vista Outdoor Inc.a		18,445		360,784
				9,570,846
MACHINERY — 1.97%
Middleby Corp. (The)a		18,379		2,501,933
Snap-on Inc.		18,515		3,101,818
Stanley Black & Decker Inc.		48,737		6,635,543
WABCO Holdings Inc.a		16,368		1,945,664
				14,184,958
PERSONAL PRODUCTS — 1.45%
Avon Products Inc.a		139,526		676,701
Edgewell Personal Care Co.a		18,357		1,312,342
Estee Lauder Companies Inc. (The) Class A		70,997		6,186,679
Herbalife Ltd.a,b		22,297		1,410,508
Nu Skin Enterprises Inc. Class A		15,739		869,265
				10,455,495
SOFTWARE — 3.18%
Activision Blizzard Inc.		220,928		11,543,488
Electronic Arts Inc.a		98,461		9,336,072
Take-Two Interactive Software Inc.a,b		32,392		2,035,837
				22,915,397

Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 7.13%
Carter’s Inc.		15,522	$	1,428,645
Coach Inc.		89,629		3,530,486
Deckers Outdoor Corp.a		10,208		608,295
Fossil Group Inc.a,b		13,446		231,943
G-III Apparel Group Ltd.a,b		14,138		335,071
Hanesbrands Inc.		120,963		2,638,203
Kate Spade & Co.a		40,870		711,138
lululemon athletica Inc.a,b		34,143		1,775,436
Michael Kors Holdings Ltd.a		51,886		1,936,904
NIKE Inc. Class B		423,272		23,453,501
PVH Corp.		25,316		2,557,675
Ralph Lauren Corp.		17,994		1,452,476
Skechers U.S.A. Inc. Class Aa,b		42,726		1,078,831
Steven Madden Ltd.a,b		17,280		657,504
Under Armour Inc. Class Aa,b		58,687		1,261,184
Under Armour Inc. Class Ca,b		58,882		1,142,900
VF Corp.		105,805		5,780,127
Wolverine World Wide Inc.		30,823		743,143
				51,323,462
TOBACCO — 16.17%
Altria Group Inc.		619,442		44,463,547
Philip Morris International Inc.		495,508		54,922,107
Reynolds American Inc.		264,155		17,037,997
				116,423,651
TOTAL COMMON STOCKS
(Cost: $710,237,358)				718,875,784
SHORT-TERM INVESTMENTS — 3.97%
MONEY MARKET FUNDS — 3.97%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		28,154,555		28,165,817
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		403,730		403,730
				28,569,547
TOTAL SHORT-TERM INVESTMENTS
(Cost: $28,564,899)				28,569,547

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. CONSUMER GOODS ETF

April 30, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 103.79%
(Cost: $738,802,257)f	$	747,445,331
Other Assets, Less Liabilities — (3.79)%		(27,261,372	)
NET ASSETS — 100.00%	$	720,183,959

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $740,898,028. Net unrealized appreciation was $6,547,303, of which $40,160,020 represented gross unrealized appreciation on securities and $33,612,717 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	718,875,784	$	—	$	—	$	718,875,784
Money market funds		28,569,547		—		—		28,569,547
Total	$	747,445,331	$	—	$	—	$	747,445,331

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments

iSHARES^® U.S. CONSUMER SERVICES ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.88%
AIRLINES — 4.22%
Alaska Air Group Inc.		26,416	$	2,247,738
Allegiant Travel Co.		2,824		410,610
American Airlines Group Inc.		107,073		4,563,451
Delta Air Lines Inc.		154,042		6,999,668
JetBlue Airways Corp.a		73,100		1,595,773
Southwest Airlines Co.		130,164		7,317,820
Spirit Airlines Inc.a		14,721		843,072
United Continental Holdings Inc.a		60,465		4,245,248
				28,223,380
COMMERCIAL SERVICES & SUPPLIES — 0.51%
Copart Inc.a		43,146		1,333,211
KAR Auction Services Inc.		29,153		1,271,654
Rollins Inc.		20,442		793,763
				3,398,628
DIVERSIFIED CONSUMER SERVICES — 1.01%
Bright Horizons Family Solutions Inc.a		9,395		715,147
DeVry Education Group Inc.		12,339		467,031
Graham Holdings Co. Class B		1,010		607,717
Grand Canyon Education Inc.a		10,118		760,469
H&R Block Inc.		45,348		1,124,177
Houghton Mifflin Harcourt Co.a,b		22,567		259,521
Service Corp. International/U.S.		40,297		1,298,369
ServiceMaster Global Holdings Inc.a,b		28,555		1,087,945
Sotheby’sa		10,002		473,695
				6,794,071
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.10%
Dolby Laboratories Inc. Class A		12,236		645,204
				645,204
FOOD & STAPLES RETAILING — 13.45%
Casey’s General Stores Inc.		8,301		930,293
Costco Wholesale Corp.		92,018		16,335,035
CVS Health Corp.		215,015		17,725,836
Kroger Co. (The)		195,621		5,800,163
Rite Aid Corp.a		222,234		888,936
Sprouts Farmers Market Inc.a,b		28,645		639,070
Sysco Corp.		105,317		5,568,110
United Natural Foods Inc.a		10,875		451,639

Security	Shares		Value
Wal-Mart Stores Inc.		315,688	$	23,733,424
Walgreens Boots Alliance Inc.		179,537		15,537,132
Whole Foods Market Inc.		66,964		2,435,481
				90,045,119
HEALTH CARE PROVIDERS & SERVICES — 2.42%
AmerisourceBergen Corp.		35,114		2,881,104
Cardinal Health Inc.		66,859		4,853,295
Chemed Corp.		3,485		701,809
McKesson Corp.		44,880		6,206,455
VCA Inc.a		17,148		1,570,242
				16,212,905
HOTELS, RESTAURANTS & LEISURE — 14.96%
Aramark		52,879		1,931,141
Bloomin’ Brands Inc.		22,780		494,098
Brinker International Inc.		10,656		470,889
Buffalo Wild Wings Inc.a		4,224		665,491
Carnival Corp.		87,803		5,423,591
Cheesecake Factory Inc. (The)b		9,453		606,504
Chipotle Mexican Grill Inc.a,b		6,076		2,882,880
Choice Hotels International Inc.		7,778		487,681
Cracker Barrel Old Country Store Inc.b		5,118		819,852
Darden Restaurants Inc.		26,694		2,274,062
Domino’s Pizza Inc.		10,125		1,836,574
Dunkin’ Brands Group Inc.		19,417		1,084,634
Hilton Grand Vacations Inc.a		12,579		421,019
Hilton Worldwide Holdings Inc.		40,969		2,415,942
Hyatt Hotels Corp. Class Aa		9,212		511,266
Jack in the Box Inc.		6,880		701,554
Las Vegas Sands Corp.		77,616		4,578,568
Marriott International Inc./MD Class A		66,569		6,285,445
Marriott Vacations Worldwide Corp.		5,228		576,021
McDonald’s Corp.		171,683		24,023,602
MGM Resorts International		103,188		3,168,903
Norwegian Cruise Line Holdings Ltd.a		34,433		1,856,972
Panera Bread Co. Class Aa		4,624		1,445,832
Royal Caribbean Cruises Ltd.		35,671		3,802,529
Six Flags Entertainment Corp.		18,102		1,133,366
Starbucks Corp.		305,520		18,349,531
Texas Roadhouse Inc.		13,725		643,428
Vail Resorts Inc.		8,412		1,662,716
Wendy’s Co. (The)		42,831		631,329

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. CONSUMER SERVICES ETF

April 30, 2017

Security	Shares		Value
Wyndham Worldwide Corp.		22,595	$	2,153,529
Wynn Resorts Ltd.		16,722		2,056,973
Yum! Brands Inc.		71,377		4,693,038
				100,088,960
INTERNET & DIRECT MARKETING RETAIL — 17.75%
Amazon.com Inc.a		83,027		76,799,145
Expedia Inc.		25,330		3,387,128
Groupon Inc.a		87,994		344,936
HSN Inc.		7,061		260,551
Liberty Expedia Holdings Inc. Class Aa,b		11,633		561,990
Liberty Interactive Corp. QVC Group Series Aa		93,361		1,977,386
Liberty TripAdvisor Holdings Inc. Class Aa		15,595		229,246
Liberty Ventures Series Aa,b		17,288		930,959
Netflix Inc.a		90,389		13,757,206
Priceline Group Inc. (The)a		10,313		19,046,255
Shutterfly Inc.a,b		7,423		385,254
TripAdvisor Inc.a		24,108		1,085,101
				118,765,157
INTERNET SOFTWARE & SERVICES — 0.07%
Yelp Inc.a		12,931		457,887
				457,887
IT SERVICES — 0.07%
Acxiom Corp.a		16,697		482,543
				482,543
MEDIA — 23.54%
AMC Networks Inc. Class Aa,b		12,586		751,133
Cable One Inc.		1,005		685,269
CBS Corp. Class A		1,805		121,386
CBS Corp. Class B NVS		78,795		5,244,595
Charter Communications Inc. Class Aa		45,243		15,616,074
Cinemark Holdings Inc.		22,455		970,056
Comcast Corp. Class A		992,139		38,881,927
Discovery Communications Inc. Class Aa		32,198		926,659
Discovery Communications Inc. Class C NVSa		46,569		1,303,001
DISH Network Corp. Class Aa		48,395		3,118,574
Gannett Co. Inc.		25,439		212,670
Interpublic Group of Companies Inc. (The)		83,517		1,968,496

Security	Shares		Value
John Wiley & Sons Inc. Class A		9,639	$	507,975
Liberty Broadband Corp. Class Aa		5,637		506,935
Liberty Broadband Corp. Class Ca		14,232		1,297,389
Liberty Global PLC Class Ba		811		29,277
Liberty Global PLC Series Aa		54,060		1,914,805
Liberty Global PLC Series C NVSa		135,407		4,686,436
Liberty Global PLC LiLAC Class Aa		11,288		242,353
Liberty Global PLC LiLAC Class Ca,b		25,883		565,285
Liberty Media Corp.-Liberty Formula One Class Aa,b		4,609		156,291
Liberty Media Corp.-Liberty Formula One Class Ca,b		9,737		340,990
Liberty Media Corp.-Liberty SiriusXM Class Aa		18,269		696,049
Liberty Media Corp.-Liberty SiriusXM Class Ca		37,131		1,410,607
Lions Gate Entertainment Corp. Class A		12,430		325,293
Lions Gate Entertainment Corp. Class Ba		23,527		561,119
Live Nation Entertainment Inc.a		28,148		905,240
Madison Square Garden Co. (The)a		3,118		629,119
Meredith Corp.		8,624		504,935
New York Times Co. (The) Class A		26,462		382,376
News Corp. Class A		80,828		1,028,132
News Corp. Class B		26,144		339,872
Omnicom Group Inc.		49,399		4,056,646
Regal Entertainment Group Class A		22,429		495,008
Scripps Networks Interactive Inc. Class A		20,087		1,500,901
Sinclair Broadcast Group Inc. Class A		13,318		525,395
Sirius XM Holdings Inc.b		365,382		1,808,641
TEGNA Inc.		45,410		1,157,047
Time Inc.		21,395		325,204
Time Warner Inc.		162,329		16,114,400
Tribune Media Co. Class A		15,865		580,024
Twenty-First Century Fox Inc. Class A		221,469		6,763,663
Twenty-First Century Fox Inc. Class B		103,830		3,100,364
Viacom Inc. Class A		2,307		102,892

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® U.S. CONSUMER SERVICES ETF

April 30, 2017

Security	Shares		Value
Viacom Inc. Class B NVS		74,020	$	3,150,291
Walt Disney Co. (The)		268,551		31,044,496
				157,555,290
MULTILINE RETAIL — 3.03%
Big Lots Inc.b		9,578		483,593
Dillard’s Inc. Class A		5,628		311,622
Dollar General Corp.		54,007		3,926,849
Dollar Tree Inc.a		50,192		4,154,392
JC Penney Co. Inc.a,b		66,506		357,802
Kohl’s Corp.		37,225		1,452,892
Macy’s Inc.		64,275		1,878,116
Nordstrom Inc.		24,548		1,184,932
Target Corp.		117,465		6,560,420
				20,310,618
PROFESSIONAL SERVICES — 1.04%
Dun & Bradstreet Corp. (The)		7,796		854,520
IHS Markit Ltd.a		72,404		3,142,334
Nielsen Holdings PLC		71,641		2,946,594
				6,943,448
ROAD & RAIL — 0.14%
Avis Budget Group Inc.a		18,748		571,814
Hertz Global Holdings Inc.a,b		21,924		361,527
				933,341
SPECIALTY RETAIL — 17.47%
Aaron’s Inc.		13,735		493,636
Abercrombie & Fitch Co. Class A		15,298		183,423
Advance Auto Parts Inc.		15,794		2,244,959
American Eagle Outfitters Inc.		36,643		516,300
Asbury Automotive Group Inc.a		4,333		265,180
Ascena Retail Group Inc.a,b		38,199		149,358
AutoNation Inc.a,b		13,970		586,740
AutoZone Inc.a		6,038		4,179,443
Bed Bath & Beyond Inc.		32,051		1,241,976
Best Buy Co. Inc.		57,310		2,969,231
Burlington Stores Inc.a		14,917		1,475,590
Cabela’s Inc.a		10,981		599,563
CarMax Inc.a		39,942		2,336,607
Chico’s FAS Inc.		28,067		387,886
CST Brands Inc.		16,115		778,193
Dick’s Sporting Goods Inc.		18,590		939,725
DSW Inc. Class A		16,351		337,158
Five Below Inc.a		11,794		579,321
Foot Locker Inc.		28,456		2,200,787

Security	Shares		Value
GameStop Corp. Class A		21,833	$	495,391
Gap Inc. (The)		46,431		1,216,492
Genesco Inc.a		4,538		241,875
GNC Holdings Inc. Class Ab		15,594		121,321
Group 1 Automotive Inc.		4,333		298,760
Home Depot Inc. (The)		255,605		39,899,941
L Brands Inc.		51,361		2,712,374
Lithia Motors Inc. Class A		5,020		479,661
Lowe’s Companies Inc.		181,550		15,409,964
Murphy USA Inc.a		7,793		542,159
O’Reilly Automotive Inc.a,b		19,403		4,814,854
Office Depot Inc.		113,587		564,527
Ross Stores Inc.		83,015		5,395,975
Sally Beauty Holdings Inc.a		30,759		585,036
Signet Jewelers Ltd.		14,701		967,914
Staples Inc.		137,579		1,344,147
Tiffany & Co.		22,524		2,064,325
TJX Companies Inc. (The)		136,665		10,747,336
Tractor Supply Co.		27,596		1,708,468
Ulta Salon Cosmetics & Fragrance Inc.a		12,295		3,460,305
Urban Outfitters Inc.a,b		18,913		432,729
Williams-Sonoma Inc.		17,290		934,525
				116,903,155
TRADING COMPANIES & DISTRIBUTORS — 0.10%
Beacon Roofing Supply Inc.a		12,877		638,313
				638,313
TOTAL COMMON STOCKS
(Cost: $625,807,649)				668,398,019
SHORT-TERM INVESTMENTS — 2.42%
MONEY MARKET FUNDS — 2.42%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		15,419,209		15,425,376
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		814,889		814,889
				16,240,265
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,237,200)				16,240,265

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. CONSUMER SERVICES ETF

April 30, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 102.30%
(Cost: $642,044,849)f	$	684,638,284
Other Assets, Less Liabilities — (2.30)%		(15,419,930	)
NET ASSETS — 100.00%	$	669,218,354

NVS—Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $646,408,579. Net unrealized appreciation was $38,229,705, of which $96,425,196 represented gross unrealized appreciation on securities and $58,195,491 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	668,398,019	$	—	$	—	$	668,398,019
Money market funds		16,240,265		—		—		16,240,265
Total	$	684,638,284	$	—	$	—	$	684,638,284

See notes to financial statements.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments

iSHARES^® U.S. FINANCIAL SERVICES ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.80%
BANKS — 56.43%
Associated Banc-Corp.		83,909	$	2,089,334
BancorpSouth Inc.		47,073		1,433,373
Bank of America Corp.		5,512,853		128,669,989
Bank of Hawaii Corp.		23,457		1,911,276
Bank of the Ozarks Inc.		50,372		2,391,159
BankUnited Inc.		57,712		2,036,657
BB&T Corp.		444,545		19,195,453
BOK Financial Corp.		11,547		973,297
Cathay General Bancorp.		41,406		1,575,498
CIT Group Inc.		111,119		5,145,921
Citigroup Inc.		1,523,610		90,075,823
Citizens Financial Group Inc.		279,939		10,276,561
Comerica Inc.		96,690		6,835,983
Commerce Bancshares Inc./MO		48,215		2,649,414
Cullen/Frost Bankers Inc.		31,355		2,959,598
East West Bancorp. Inc.		79,565		4,317,993
Fifth Third Bancorp.		412,681		10,081,797
First Financial Bankshares Inc.		36,484		1,457,536
First Horizon National Corp.		129,015		2,367,425
First Republic Bank/CA		84,789		7,839,591
FNB Corp./PA		177,047		2,521,149
Fulton Financial Corp.		96,301		1,776,753
Glacier Bancorp. Inc.		42,219		1,426,158
Hancock Holding Co.		46,546		2,173,698
Huntington Bancshares Inc./OH		597,139		7,679,208
IBERIABANK Corp.		28,089		2,228,862
International Bancshares Corp.		32,137		1,201,924
Investors Bancorp. Inc.		170,877		2,366,646
JPMorgan Chase & Co.		1,964,224		170,887,488
KeyCorp		589,743		10,756,912
M&T Bank Corp.		84,773		13,174,572
MB Financial Inc.		39,515		1,679,783
PacWest Bancorp.		65,931		3,256,332
People’s United Financial Inc.		188,805		3,298,423
PNC Financial Services Group Inc. (The)a		267,357		32,016,001
Popular Inc.		57,336		2,402,952
PrivateBancorp. Inc.		44,190		2,552,856
Prosperity Bancshares Inc.		38,374		2,578,733
Regions Financial Corp.		662,798		9,113,473
Signature Bank/New York NYb		29,529		4,088,290
SunTrust Banks Inc.		270,248		15,352,789
SVB Financial Groupb,c		28,768		5,061,442

Security	Shares		Value
Synovus Financial Corp.		67,568	$	2,824,342
TCF Financial Corp.		94,214		1,555,473
Texas Capital Bancshares Inc.b		27,378		2,083,466
Trustmark Corp.		37,553		1,247,511
U.S. Bancorp.		875,684		44,905,076
UMB Financial Corp.		24,243		1,757,375
Umpqua Holdings Corp.		121,761		2,151,517
United Bankshares Inc./WV		57,437		2,291,736
Valley National Bancorp.		145,890		1,715,666
Webster Financial Corp.		50,853		2,583,841
Wells Fargo & Co.		2,476,252		133,321,408
Western Alliance Bancorp.b		52,247		2,502,631
Wintrust Financial Corp.		28,971		2,052,885
Zions BanCorp.		111,330		4,456,540
				807,327,589
CAPITAL MARKETS — 24.72%
Affiliated Managers Group Inc.		31,175		5,162,268
Ameriprise Financial Inc.		84,721		10,831,580
Bank of New York Mellon Corp. (The)		570,502		26,847,824
BlackRock Inc.a		66,895		25,725,810
CBOE Holdings Inc.		50,441		4,156,843
Charles Schwab Corp. (The)		668,015		25,952,383
CME Group Inc.		186,752		21,698,715
Donnelley Financial Solutions Inc.b		14,766		328,101
E*TRADE Financial Corp.b		151,039		5,218,397
Eaton Vance Corp. NVS		63,383		2,721,032
FactSet Research Systems Inc.		21,835		3,564,782
Federated Investors Inc. Class B		27,048		725,427
Financial Engines Inc.		31,675		1,346,188
Franklin Resources Inc.		189,618		8,174,432
Goldman Sachs Group Inc. (The)		203,748		45,598,802
Intercontinental Exchange Inc.		327,576		19,720,075
Invesco Ltd.		221,937		7,310,605
Janus Capital Group Inc.		79,666		1,088,238
Lazard Ltd. Class A		71,599		3,074,461
Legg Mason Inc.		47,819		1,787,474
LPL Financial Holdings Inc.		43,790		1,840,932
MarketAxess Holdings Inc.		20,788		4,002,106
Moody’s Corp.		91,293		10,801,788
Morgan Stanley		790,177		34,269,976
MSCI Inc.		49,810		4,996,939
Nasdaq Inc.		63,285		4,358,438
Northern Trust Corp.		118,266		10,643,940
Raymond James Financial Inc.		70,305		5,239,129

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. FINANCIAL SERVICES ETF

April 30, 2017

Security	Shares		Value
S&P Global Inc.		142,084	$	19,066,252
SEI Investments Co.		73,729		3,738,798
State Street Corp.		197,436		16,564,880
Stifel Financial Corp.b		37,681		1,841,470
T Rowe Price Group Inc.		133,853		9,488,839
TD Ameritrade Holding Corp.		133,527		5,110,078
Waddell & Reed Financial Inc. Class A		36,325		653,487
				353,650,489
CONSUMER FINANCE — 6.41%
Ally Financial Inc.		259,318		5,134,496
American Express Co.		416,317		32,993,122
Capital One Financial Corp.		264,299		21,244,354
Discover Financial Services		212,003		13,269,268
LendingClub Corp.b		177,446		1,038,059
Navient Corp.		160,823		2,444,510
PRA Group Inc.b		25,707		827,765
SLM Corp.b		237,024		2,972,281
Synchrony Financial		423,543		11,774,495
				91,698,350
INSURANCE — 0.43%
FNF Group		149,524		6,123,008
				6,123,008
IT SERVICES — 11.09%
MasterCard Inc. Class A		518,072		60,262,135
Visa Inc. Class A		1,021,724		93,201,663
Western Union Co. (The)		264,464		5,252,255
				158,716,053
THRIFTS & MORTGAGE FINANCE — 0.72%
Capitol Federal Financial Inc.		70,028		1,024,510
MGIC Investment Corp.b		187,347		1,974,637
New York Community Bancorp. Inc.		269,709		3,584,433
Radian Group Inc.		118,506		2,000,381
Washington Federal Inc.		49,586		1,671,048
				10,255,009
TOTAL COMMON STOCKS
(Cost: $1,332,838,289)				1,427,770,498

Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.21%
MONEY MARKET FUNDS — 0.21%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		1,620,552	$	1,621,200
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		1,357,821		1,357,821
				2,979,021
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,979,021)				2,979,021
TOTAL INVESTMENTS IN SECURITIES — 100.01%				1,430,749,519
(Cost: $1,335,817,310)g
Other Assets, Less Liabilities — (0.01)%				(103,261	)
NET ASSETS — 100.00%			$	1,430,646,258

NVS  —  Non-Voting Shares

^a  Affiliated issuer. See Schedule 1.

^b  Non-income earning security.

^c  All or a portion of this security represents a security on loan. See Note 1.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $1,343,634,414. Net unrealized appreciation was $87,115,105, of which $106,483,328 represented gross unrealized appreciation on securities and $19,368,223 represented gross unrealized depreciation on securities.

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® U.S. FINANCIAL SERVICES ETF

April 30, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
BlackRock Inc.		33,852		58,117		(25,074	)		66,895	$	25,725,810	$	429,224	$	898,883
PNC Financial Services Group Inc. (The)		134,392		230,829		(97,864	)		267,357		32,016,001		437,516		1,736,797
										$	57,741,811	$	866,740	$	2,635,680

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,427,770,498	$	—	$	—	$	1,427,770,498
Money market funds		2,979,021		—		—		2,979,021
Total	$	1,430,749,519	$	—	$	—	$	1,430,749,519

See notes to financial statements.

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® U.S. FINANCIALS ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.81%
BANKS — 31.87%
Associated Banc-Corp.		55,782	$	1,388,973
BancorpSouth Inc.		31,405		956,282
Bank of America Corp.		3,659,284		85,407,689
Bank of Hawaii Corp.		15,537		1,265,955
Bank of the Ozarks Inc.		33,353		1,583,267
BankUnited Inc.		37,935		1,338,726
BB&T Corp.		295,229		12,747,988
BOK Financial Corp.		7,573		638,328
Cathay General Bancorp.		27,375		1,041,619
CIT Group Inc.		73,633		3,409,944
Citigroup Inc.		1,011,344		59,790,657
Citizens Financial Group Inc.		185,996		6,827,913
Comerica Inc.		64,320		4,547,424
Commerce Bancshares Inc./MO		32,095		1,763,620
Cullen/Frost Bankers Inc.		20,840		1,967,088
East West Bancorp. Inc.		52,535		2,851,074
Fifth Third Bancorp.		274,141		6,697,265
First Financial Bankshares Inc.		24,010		959,199
First Horizon National Corp.		85,797		1,574,375
First Republic Bank/CA		56,380		5,212,895
FNB Corp./PA		116,777		1,662,904
Fulton Financial Corp.		63,681		1,174,914
Glacier Bancorp. Inc.		28,011		946,212
Hancock Holding Co.		30,939		1,444,851
Huntington Bancshares Inc./OH		396,974		5,105,086
IBERIABANK Corp.		18,691		1,483,131
International Bancshares Corp.		21,413		800,846
Investors Bancorp. Inc.		113,515		1,572,183
JPMorgan Chase & Co.		1,303,808		113,431,296
KeyCorp		391,755		7,145,611
M&T Bank Corp.		56,301		8,749,738
MB Financial Inc.		26,213		1,114,315
PacWest Bancorp.		43,855		2,165,998
People’s United Financial Inc.		125,401		2,190,755
PNC Financial Services Group Inc. (The)a		177,540		21,260,415
Popular Inc.		38,156		1,599,118
PrivateBancorp. Inc.		29,262		1,690,466
Prosperity Bancshares Inc.		25,318		1,701,370
Regions Financial Corp.		440,373		6,055,129
Signature Bank/New York NYb		19,573		2,709,882
SunTrust Banks Inc.		179,458		10,195,009
SVB Financial Groupb		19,156		3,370,307

Security	Shares		Value
Synovus Financial Corp.		44,547	$	1,862,065
TCF Financial Corp.		62,119		1,025,585
Texas Capital Bancshares Inc.b		18,032		1,372,235
Trustmark Corp.		24,515		814,388
U.S. Bancorp.		581,220		29,804,962
UMB Financial Corp.		16,011		1,160,637
Umpqua Holdings Corp.		80,187		1,416,904
United Bankshares Inc./WV		38,051		1,518,235
Valley National Bancorp.		97,035		1,141,132
Webster Financial Corp.		33,663		1,710,417
Wells Fargo & Co.		1,643,658		88,494,547
Western Alliance Bancorp.b		34,468		1,651,017
Wintrust Financial Corp.		19,085		1,352,363
Zions BanCorp.		73,743		2,951,932
				535,816,236
CAPITAL MARKETS — 13.99%
Affiliated Managers Group Inc.		20,768		3,438,973
Ameriprise Financial Inc.		56,265		7,193,480
Bank of New York Mellon Corp. (The)		378,883		17,830,234
BlackRock Inc.a		44,442		17,091,060
CBOE Holdings Inc.		33,431		2,755,049
Charles Schwab Corp. (The)		443,659		17,236,152
CME Group Inc.		124,035		14,411,627
Donnelley Financial Solutions Inc.b		9,930		220,645
E*TRADE Financial Corp.b		100,605		3,475,903
Eaton Vance Corp. NVS		42,157		1,809,800
FactSet Research Systems Inc.		14,493		2,366,127
Federated Investors Inc. Class B		27,661		741,868
Financial Engines Inc.		21,090		896,325
Franklin Resources Inc.		126,064		5,434,619
Goldman Sachs Group Inc. (The)		135,222		30,262,684
Intercontinental Exchange Inc.		217,548		13,096,390
Invesco Ltd.		147,600		4,861,944
Janus Capital Group Inc.		53,295		728,010
Lazard Ltd. Class A		47,280		2,030,203
Legg Mason Inc.		31,911		1,192,833
LPL Financial Holdings Inc.		29,154		1,225,634
MarketAxess Holdings Inc.		13,721		2,641,567
Moody’s Corp.		60,637		7,174,570
Morgan Stanley		524,762		22,758,928
MSCI Inc.		32,986		3,309,155
Nasdaq Inc.		41,936		2,888,132
Northern Trust Corp.		78,567		7,071,030
Raymond James Financial Inc.		46,815		3,488,654

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® U.S. FINANCIALS ETF

April 30, 2017

Security	Shares		Value
S&P Global Inc.		94,370	$	12,663,510
SEI Investments Co.		48,714		2,470,287
State Street Corp.		131,105		10,999,709
Stifel Financial Corp.b		25,059		1,224,633
T Rowe Price Group Inc.		88,935		6,304,602
TD Ameritrade Holding Corp.		88,470		3,385,747
Waddell & Reed Financial Inc. Class A		31,521		567,063
				235,247,147
CONSUMER FINANCE — 3.62%
Ally Financial Inc.		172,711		3,419,678
American Express Co.		276,490		21,911,832
Capital One Financial Corp.		175,520		14,108,298
Discover Financial Services		140,783		8,811,608
LendingClub Corp.b,c		116,206		679,805
Navient Corp.		106,817		1,623,618
PRA Group Inc.b,c		16,755		539,511
SLM Corp.b		157,529		1,975,414
Synchrony Financial		281,299		7,820,112
				60,889,876
DIVERSIFIED FINANCIAL SERVICES — 6.97%
Berkshire Hathaway Inc. Class Bb		693,261		114,533,650
Voya Financial Inc.c		69,458		2,596,340
				117,129,990
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 19.90%
Acadia Realty Trust		31,106		904,562
Alexandria Real Estate Equities Inc.c		32,547		3,661,863
American Campus Communities Inc.		48,557		2,301,116
American Homes 4 Rent Class A		85,071		1,960,887
American Tower Corp.		156,003		19,647,018
Apartment Investment & Management Co. Class A		57,198		2,501,841
Apple Hospitality REIT Inc.c		56,922		1,066,149
AvalonBay Communities Inc.		50,152		9,520,856
Boston Properties Inc.		56,192		7,113,907
Brandywine Realty Trust		64,387		1,092,647
Brixmor Property Group Inc.		95,372		1,883,597
Camden Property Trust		31,906		2,626,821
Care Capital Properties Inc.c		31,062		834,636
CBL & Associates Properties Inc.c		62,270		575,998
Colony NorthStar Inc. Class A		202,121		2,641,721
Columbia Property Trust Inc.		44,631		1,004,198

Security	Shares		Value
CoreCivic Inc.		42,891	$	1,477,595
CoreSite Realty Corp.		12,361		1,209,524
Corporate Office Properties Trust		36,274		1,187,611
Cousins Properties Inc.c		153,911		1,306,704
Crown Castle International Corp.		131,680		12,456,928
CubeSmart		65,636		1,663,216
CyrusOne Inc.c		27,124		1,482,055
DCT Industrial Trust Inc.		33,496		1,693,558
DDR Corp.		113,307		1,224,849
DiamondRock Hospitality Co.c		73,713		811,580
Digital Realty Trust Inc.c		58,190		6,682,540
Douglas Emmett Inc.		52,971		1,995,418
Duke Realty Corp.		130,058		3,606,508
DuPont Fabros Technology Inc.c		28,468		1,467,525
EastGroup Properties Inc.		12,275		960,519
Education Realty Trust Inc.		26,639		1,032,794
EPR Properties		23,468		1,706,358
Equinix Inc.		28,372		11,850,984
Equity Commonwealthb		45,548		1,457,081
Equity Lifestyle Properties Inc.		29,718		2,404,483
Equity Residential		134,057		8,657,401
Essex Property Trust Inc.		23,952		5,855,545
Extra Space Storage Inc.		46,075		3,480,045
Federal Realty Investment Trust		26,403		3,455,889
First Industrial Realty Trust Inc.		42,667		1,200,649
Forest City Realty Trust Inc. Class A		78,975		1,784,835
Four Corners Property Trust Inc.		21,867		510,157
Gaming and Leisure Properties Inc.		71,608		2,491,958
GEO Group Inc. (The)		44,789		1,492,353
GGP Inc.		213,565		4,615,140
Gramercy Property Trust		51,457		1,429,990
HCP Inc.		171,141		5,365,270
Healthcare Realty Trust Inc.		42,818		1,404,430
Healthcare Trust of America Inc. Class Ac		51,662		1,647,501
Highwoods Properties Inc.		37,324		1,899,045
Hospitality Properties Trust		61,440		1,955,635
Host Hotels & Resorts Inc.		270,312		4,852,100
Hudson Pacific Properties Inc.		56,829		1,952,644
Iron Mountain Inc.		89,360		3,106,154
Kilroy Realty Corp.		35,766		2,522,576
Kimco Realty Corp.		155,718		3,159,518
Kite Realty Group Trust		31,248		636,209
Lamar Advertising Co. Class A		30,376		2,189,198

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. FINANCIALS ETF

April 30, 2017

Security	Shares		Value
LaSalle Hotel Properties		41,119	$	1,174,359
Lexington Realty Trust		78,458		797,918
Liberty Property Trust		53,570		2,173,335
Life Storage Inc.		17,068		1,337,961
Macerich Co. (The)		44,223		2,760,842
Mack-Cali Realty Corp.		32,883		889,485
Medical Properties Trust Inc.		116,868		1,527,465
Mid-America Apartment Communities Inc.		41,542		4,121,382
National Health Investors Inc.c		14,703		1,075,819
National Retail Properties Inc.		53,634		2,264,427
Omega Healthcare Investors Inc.c		71,696		2,365,968
Outfront Media Inc.		50,891		1,331,309
Paramount Group Inc.		67,018		1,099,095
Park Hotels & Resorts Inc.		41,993		1,077,960
Parkway Inc.		15,938		321,151
Pebblebrook Hotel Trustc		26,397		785,575
Physicians Realty Trust		55,422		1,088,488
Piedmont Office Realty Trust Inc. Class Ac		52,813		1,153,964
Potlatch Corp.		14,794		666,470
Prologis Inc.		193,310		10,517,997
Public Storage		54,541		11,419,795
Quality Care Properties Inc.b		34,685		601,785
Rayonier Inc.		45,215		1,275,967
Realty Income Corp.c		99,065		5,780,443
Regency Centers Corp.		53,469		3,378,171
Retail Properties of America Inc. Class A		86,259		1,150,695
RLJ Lodging Trustc		45,319		973,905
Ryman Hospitality Properties Inc.c		18,749		1,195,811
SBA Communications Corp.b		44,649		5,647,652
Senior Housing Properties Trust		88,847		1,911,987
Simon Property Group Inc.		116,799		19,302,203
SL Green Realty Corp.		36,802		3,861,634
Spirit Realty Capital Inc.		176,190		1,659,710
STORE Capital Corp.		62,093		1,489,611
Sun Communities Inc.		24,381		2,038,495
Sunstone Hotel Investors Inc.c		80,158		1,193,553
Tanger Factory Outlet Centers Inc.		35,206		1,098,075
Taubman Centers Inc.c		22,224		1,390,111
UDR Inc.		97,843		3,653,458
Uniti Group Inc.b		56,775		1,559,041
Urban Edge Propertiesc		33,322		849,711
Ventas Inc.		129,499		8,289,231

Security	Shares		Value
VEREIT Inc.		354,939	$	2,970,839
Vornado Realty Trust		62,890		6,052,534
Washington Prime Group Inc.		67,808		596,710
Washington REIT		27,513		871,337
Weingarten Realty Investors		42,927		1,406,718
Welltower Inc.c		132,395		9,458,299
Weyerhaeuser Co.		273,541		9,264,834
WP Carey Inc.		38,715		2,423,559
Xenia Hotels & Resorts Inc.		39,215		684,694
				334,661,427
INSURANCE — 15.17%
Aflac Inc.		146,607		10,977,932
Alleghany Corp.b		5,576		3,405,263
Allied World Assurance Co. Holdings AG		31,714		1,683,696
Allstate Corp. (The)		133,331		10,838,477
American Financial Group Inc./OH		26,773		2,605,281
American International Group Inc.		339,841		20,699,715
AmTrust Financial Services Inc.		39,767		638,260
Aon PLC		95,904		11,493,135
Arch Capital Group Ltd.b		44,878		4,351,820
Arthur J Gallagher & Co.		65,377		3,648,690
Aspen Insurance Holdings Ltd.		21,867		1,144,738
Assurant Inc.		20,408		1,964,066
Assured Guaranty Ltd.		47,492		1,810,870
Axis Capital Holdings Ltd.		32,235		2,124,287
Brown & Brown Inc.		41,805		1,793,435
Chubb Ltd.		169,976		23,329,206
Cincinnati Financial Corp.		54,856		3,954,569
CNO Financial Group Inc.		65,004		1,369,634
Erie Indemnity Co. Class A		6,747		835,414
Everest Re Group Ltd.		15,293		3,849,401
First American Financial Corp.		40,303		1,749,553
FNF Group		99,534		4,075,917
Genworth Financial Inc. Class Ab		186,423		753,149
Hanover Insurance Group Inc. (The)		15,481		1,366,508
Hartford Financial Services Group Inc. (The)		136,591		6,605,541
Kemper Corp.		17,873		703,303
Lincoln National Corp.		82,334		5,428,281
Loews Corp.		100,944		4,706,009
Markel Corp.b		5,109		4,953,686
Marsh & McLennan Companies Inc.		188,079		13,942,296
Mercury General Corp.		13,333		819,846
MetLife Inc.		397,059		20,571,627

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® U.S. FINANCIALS ETF

April 30, 2017

Security	Shares		Value
Old Republic International Corp.		89,695	$	1,854,893
Primerica Inc.		17,093		1,432,393
Principal Financial Group Inc.		97,683		6,362,094
ProAssurance Corp.		19,900		1,231,810
Progressive Corp. (The)		212,101		8,424,652
Prudential Financial Inc.		157,024		16,806,279
Reinsurance Group of America Inc.		23,484		2,936,439
RenaissanceRe Holdings Ltd.		13,279		1,887,875
RLI Corp.		14,112		807,489
Torchmark Corp.		39,910		3,061,496
Travelers Companies Inc. (The)		102,142		12,426,596
Unum Group		83,895		3,886,855
Validus Holdings Ltd.		29,112		1,609,311
White Mountains Insurance Group Ltd.		1,667		1,431,853
Willis Towers Watson PLC		46,545		6,172,798
WR Berkley Corp.		35,335		2,402,073
XL Group Ltd.		96,979		4,058,571
				254,987,082
IT SERVICES — 6.27%
MasterCard Inc. Class A		343,900		40,002,448
Visa Inc. Class A		678,201		61,865,495
Western Union Co. (The)		176,083		3,497,009
				105,364,952
MORTGAGE REAL ESTATE INVESTMENT — 1.01%
AGNC Investment Corp.		120,633		2,541,737
Annaly Capital Management Inc.		371,704		4,389,824
Blackstone Mortgage Trust Inc. Class A		34,693		1,071,320
Chimera Investment Corp.		65,142		1,326,291
CYS Investments Inc.		55,367		472,281
Invesco Mortgage Capital Inc.		40,679		663,475
MFA Financial Inc.		137,143		1,139,658
New Residential Investment Corp.		112,802		1,880,409
Starwood Property Trust Inc.		95,091		2,157,615
Two Harbors Investment Corp.c		126,954		1,268,270
				16,910,880
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.61%
Alexander & Baldwin Inc.		16,736		770,023
CBRE Group Inc. Class Ab		110,052		3,940,962
Howard Hughes Corp. (The)b		13,202		1,625,298
Jones Lang LaSalle Inc.		16,483		1,893,238
Realogy Holdings Corp.		52,069		1,590,708
St. Joe Co. (The)b,c		26,935		471,363
				10,291,592

Security	Shares		Value
THRIFTS & MORTGAGE FINANCE — 0.40%
Capitol Federal Financial Inc.		46,946	$	686,820
MGIC Investment Corp.b		125,442		1,322,159
New York Community Bancorp. Inc.		178,704		2,374,976
Radian Group Inc.		78,126		1,318,767
Washington Federal Inc.		32,847		1,106,944
				6,809,666
TOTAL COMMON STOCKS
(Cost: $1,625,033,850)				1,678,108,848
SHORT-TERM INVESTMENTS — 1.31%
MONEY MARKET FUNDS — 1.31%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		19,888,080		19,896,035
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		2,174,793		2,174,793
				22,070,828
TOTAL SHORT-TERM INVESTMENTS
(Cost: $22,064,086)				22,070,828
TOTAL INVESTMENTS IN SECURITIES — 101.12%				1,700,179,676
(Cost: $1,647,097,936)g
Other Assets, Less Liabilities — (1.12)%				(18,855,612	)
NET ASSETS — 100.00%			$	1,681,324,064

NVS  —  Non-Voting Shares

^a  Affiliated issuer. See Schedule 1.

^b  Non-income earning security.

^c  All or a portion of this security represents a security on loan. See Note 1.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $1,652,514,726. Net unrealized appreciation was $47,664,950, of which $116,739,238 represented gross unrealized appreciation on securities and $69,074,288 represented gross unrealized depreciation on securities.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. FINANCIALS ETF

April 30, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
BlackRock Inc.		38,272		46,394		(40,224	)		44,442	$	17,091,060	$	439,614	$	344,829
PNC Financial Services Group Inc. (The)		151,948		183,854		(158,262	)		177,540		21,260,415		395,959		1,787,657
										$	38,351,475	$	835,573	$	2,132,486

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,678,108,848	$	—	$	—	$	1,678,108,848
Money market funds		22,070,828		—		—		22,070,828
Total	$	1,700,179,676	$	—	$	—	$	1,700,179,676

See notes to financial statements.

SCHEDULES OF INVESTMENTS 39

Schedule of Investments  

iSHARES^® U.S. INDUSTRIALS ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.91%
AEROSPACE & DEFENSE — 17.92%
Arconic Inc.		147,146	$	4,021,499
Boeing Co. (The)		190,096		35,135,444
BWX Technologies Inc.		33,104		1,627,724
Curtiss-Wright Corp.		14,853		1,388,161
DigitalGlobe Inc.a,b		20,783		669,213
Esterline Technologies Corp.a		9,926		907,733
General Dynamics Corp.		94,972		18,404,624
HEICO Corp.		8,884		631,386
HEICO Corp. Class A		15,070		923,791
Hexcel Corp.		30,591		1,583,084
Huntington Ingalls Industries Inc.		15,394		3,092,501
KLX Inc.a		17,596		832,291
L3 Technologies Inc.		25,975		4,461,726
Lockheed Martin Corp.		83,323		22,451,382
Moog Inc. Class Aa		10,847		744,646
Northrop Grumman Corp.		58,269		14,331,843
Orbital ATK Inc.		19,201		1,900,899
Raytheon Co.		97,743		15,170,691
Rockwell Collins Inc.		54,163		5,637,827
Spirit AeroSystems Holdings Inc. Class A		40,576		2,319,324
Teledyne Technologies Inc.a		11,741		1,583,039
Textron Inc.		90,172		4,207,425
TransDigm Group Inc.		16,594		4,094,238
Triumph Group Inc.		16,510		432,562
United Technologies Corp.		250,115		29,761,184
				176,314,237
AIR FREIGHT & LOGISTICS — 4.96%
CH Robinson Worldwide Inc.		47,234		3,433,912
Expeditors International of Washington Inc.		60,210		3,377,179
FedEx Corp.		81,827		15,522,582
Hub Group Inc. Class Aa		11,202		438,558
United Parcel Service Inc. Class B		230,018		24,717,734
XPO Logistics Inc.a,b		27,043		1,335,654
				48,825,619
BUILDING PRODUCTS — 3.20%
Allegion PLC		31,863		2,505,706
AO Smith Corp.		49,117		2,646,424
Armstrong World Industries Inc.a,b		16,657		778,715
Fortune Brands Home & Security Inc.		51,182		3,262,341
Johnson Controls International PLC		313,277		13,022,925

Security	Shares		Value
Lennox International Inc.		12,905	$	2,134,358
Masco Corp.		107,027		3,962,139
Owens Corning		37,487		2,281,084
USG Corp.a		30,424		921,847
				31,515,539
CHEMICALS — 1.20%
Sherwin-Williams Co. (The)		27,092		9,067,151
Valspar Corp. (The)		24,380		2,741,287
				11,808,438
COMMERCIAL SERVICES & SUPPLIES — 2.61%
Cintas Corp.		28,782		3,524,931
Clean Harbors Inc.a		17,456		1,014,368
Covanta Holding Corp.		43,954		639,531
Deluxe Corp.		16,214		1,165,949
LSC Communications Inc.		10,802		279,448
MSA Safety Inc.		10,436		812,443
Republic Services Inc.		76,961		4,847,773
RR Donnelley & Sons Co.		23,702		297,934
Stericycle Inc.a		28,394		2,423,144
Tetra Tech Inc.		19,154		841,818
Waste Management Inc.		135,004		9,825,591
				25,672,930
CONSTRUCTION & ENGINEERING — 1.25%
AECOMa,b		51,795		1,771,907
Chicago Bridge & Iron Co. NVb		33,461		1,006,507
EMCOR Group Inc.		19,900		1,308,226
Fluor Corp.		46,474		2,385,046
Jacobs Engineering Group Inc.		40,379		2,217,615
KBR Inc.		47,884		672,770
Quanta Services Inc.a		50,433		1,787,345
Valmont Industries Inc.		7,520		1,145,672
				12,295,088
CONSTRUCTION MATERIALS — 1.17%
Eagle Materials Inc.		16,141		1,549,052
Martin Marietta Materials Inc.		21,050		4,635,000
Vulcan Materials Co.		44,171		5,339,390
				11,523,442
CONTAINERS & PACKAGING — 3.83%
AptarGroup Inc.		20,812		1,671,204
Avery Dennison Corp.		29,827		2,481,905
Ball Corp.		58,447		4,493,990
Bemis Co. Inc.		30,829		1,385,147

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. INDUSTRIALS ETF

April 30, 2017

Security	Shares		Value
Berry Global Group Inc.a		42,690	$	2,134,500
Crown Holdings Inc.a,b		46,655		2,616,879
Graphic Packaging Holding Co.		104,100		1,413,678
International Paper Co.		137,249		7,407,329
Owens-Illinois Inc.a		54,466		1,188,448
Packaging Corp. of America		31,514		3,112,953
Sealed Air Corp.		64,569		2,842,327
Silgan Holdings Inc.		12,592		763,327
Sonoco Products Co.		33,136		1,733,344
WestRock Co.		83,590		4,477,080
				37,722,111
ELECTRICAL EQUIPMENT — 4.62%
Acuity Brands Inc.		14,707		2,589,903
AMETEK Inc.		76,626		4,383,007
Eaton Corp. PLC		150,079		11,351,975
Emerson Electric Co.		215,279		12,977,018
EnerSys		14,583		1,211,993
Generac Holdings Inc.a		21,110		742,439
Hubbell Inc.		17,205		1,946,402
Regal Beloit Corp.		15,046		1,186,377
Rockwell Automation Inc.		42,917		6,752,990
Sensata Technologies Holding NVa,b		56,995		2,347,054
				45,489,158
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 4.31%
Amphenol Corp. Class A		102,677		7,424,574
Anixter International Inc.a		9,588		781,901
Arrow Electronics Inc.a		29,660		2,091,030
Avnet Inc.		42,991		1,663,322
Belden Inc.		14,173		987,858
Cognex Corp.		28,809		2,458,560
FLIR Systems Inc.		45,480		1,670,480
IPG Photonics Corp.a,b		12,488		1,577,484
Itron Inc.a		11,189		725,607
Jabil Circuit Inc.		60,786		1,764,010
Keysight Technologies Inc.a		61,113		2,287,460
Littelfuse Inc.		7,556		1,164,757
National Instruments Corp.		35,422		1,236,582
TE Connectivity Ltd.		118,573		9,173,993
Trimble Inc.a		84,144		2,981,222
Universal Display Corp.		14,889		1,330,332
VeriFone Systems Inc.a,b		37,425		693,860
Vishay Intertechnology Inc.b		44,753		731,712
Zebra Technologies Corp. Class Aa		17,642		1,663,111
				42,407,855

Security	Shares		Value
INDUSTRIAL CONGLOMERATES — 16.91%
3M Co.		198,972	$	38,964,687
Carlisle Companies Inc.		21,538		2,183,738
General Electric Co.		2,911,738		84,411,284
Honeywell International Inc.		254,035		33,314,150
Roper Technologies Inc.		33,999		7,435,581
				166,309,440
INTERNET SOFTWARE & SERVICES — 0.27%
CoStar Group Inc.a		10,868		2,617,993
				2,617,993
IT SERVICES — 11.92%
Accenture PLC Class A		207,792		25,205,170
Alliance Data Systems Corp.		18,670		4,660,592
Automatic Data Processing Inc.		149,814		15,654,065
Booz Allen Hamilton Holding Corp.		50,012		1,796,931
Broadridge Financial Solutions Inc.		39,472		2,760,672
Conduent Inc.a		57,124		931,692
Convergys Corp.		31,746		714,603
CoreLogic Inc./U.S.a		28,138		1,202,618
Euronet Worldwide Inc.a		17,408		1,438,249
Fidelity National Information Services Inc.		109,725		9,237,748
First Data Corp. Class Aa		63,318		989,027
Fiserv Inc.a		71,607		8,531,258
FleetCor Technologies Inc.a,b		30,969		4,370,965
Genpact Ltd.		45,211		1,104,053
Global Payments Inc.		50,845		4,157,087
Jack Henry & Associates Inc.		25,908		2,511,003
MAXIMUS Inc.		21,692		1,322,995
NeuStar Inc. Class Aa		11,647		386,680
Paychex Inc.		106,583		6,318,240
PayPal Holdings Inc.a		374,798		17,885,361
Sabre Corp.		68,588		1,605,645
Total System Services Inc.		55,072		3,156,176
WEX Inc.a		12,827		1,301,427
				117,242,257
LIFE SCIENCES TOOLS & SERVICES — 1.27%
Agilent Technologies Inc.		107,482		5,916,884
Mettler-Toledo International Inc.a		8,656		4,444,164
PerkinElmer Inc.		36,623		2,175,772
				12,536,820
MACHINERY — 13.10%
Actuant Corp. Class A		20,015		546,410
AGCO Corp.		22,343		1,429,729

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Continued)

iSHARES^® U.S. INDUSTRIALS ETF

April 30, 2017

Security	Shares		Value
Allison Transmission Holdings Inc.		55,156	$	2,133,434
Caterpillar Inc.		195,730		20,015,350
Colfax Corp.a		32,869		1,330,208
Crane Co.		16,760		1,339,292
Cummins Inc.		51,630		7,793,032
Deere & Co.		97,806		10,916,128
Donaldson Co. Inc.		44,043		2,038,310
Dover Corp.		51,918		4,095,292
Flowserve Corp.		43,575		2,216,660
Fortive Corp.		100,461		6,355,163
Graco Inc.		18,681		2,014,746
Hillenbrand Inc.		21,241		783,793
IDEX Corp.		25,447		2,665,828
Illinois Tool Works Inc.		104,090		14,373,788
Ingersoll-Rand PLC		86,607		7,686,371
ITT Inc.		29,452		1,240,813
Kennametal Inc.		26,869		1,117,213
Lincoln Electric Holdings Inc.		20,639		1,837,490
Mueller Industries Inc.		19,363		620,391
Nordson Corp.		17,849		2,234,695
Oshkosh Corp.		24,878		1,726,284
PACCAR Inc.		117,106		7,814,483
Parker-Hannifin Corp.		44,484		7,153,027
Pentair PLC		55,881		3,604,883
Terex Corp.		35,390		1,237,942
Timken Co. (The)		23,415		1,129,774
Toro Co. (The)		36,118		2,344,781
Trinity Industries Inc.		50,928		1,369,963
Wabtec Corp./DE		28,753		2,412,089
Welbilt Inc.a		46,131		945,685
Woodward Inc.		18,506		1,252,301
Xylem Inc./NY		60,032		3,086,245
				128,861,593
MARINE — 0.13%
Kirby Corp.a		18,034		1,273,200
				1,273,200
MULTI-UTILITIES — 0.18%
MDU Resources Group Inc.		65,136		1,752,158
				1,752,158
PAPER & FOREST PRODUCTS — 0.13%
Louisiana-Pacific Corp.a		48,126		1,238,763
				1,238,763

Security	Shares		Value
PROFESSIONAL SERVICES — 1.53%
Advisory Board Co. (The)a		13,404	$	684,945
Equifax Inc.		40,014		5,414,294
FTI Consulting Inc.a,b		13,736		475,128
ManpowerGroup Inc.		22,564		2,278,513
Robert Half International Inc.		42,679		1,965,368
Verisk Analytics Inc. Class Aa		51,652		4,277,302
				15,095,550
ROAD & RAIL — 7.03%
CSX Corp.		309,185		15,718,965
Genesee & Wyoming Inc. Class Aa,b		20,425		1,383,998
JB Hunt Transport Services Inc.		28,956		2,596,195
Kansas City Southern		35,659		3,211,806
Landstar System Inc.		13,984		1,194,933
Norfolk Southern Corp.		96,967		11,392,653
Old Dominion Freight Line Inc.		23,110		2,045,697
Ryder System Inc.		17,841		1,211,582
Union Pacific Corp.		271,589		30,407,105
				69,162,934
TRADING COMPANIES & DISTRIBUTORS — 2.16%
Air Lease Corp.		32,043		1,222,120
Applied Industrial Technologies Inc.		13,100		838,400
Fastenal Co.		96,536		4,313,228
GATX Corp.		13,139		787,026
HD Supply Holdings Inc.a		67,172		2,707,032
MRC Global Inc.a		31,561		575,357
MSC Industrial Direct Co. Inc. Class A		14,953		1,338,742
NOW Inc.a		36,136		614,673
United Rentals Inc.a		28,180		3,090,219
Watsco Inc.		10,161		1,410,347
WESCO International Inc.a		14,061		857,018
WW Grainger Inc.		18,075		3,483,053
				21,237,215
TRANSPORTATION INFRASTRUCTURE — 0.21%
Macquarie Infrastructure Corp.		25,195		2,050,117
				2,050,117
TOTAL COMMON STOCKS
(Cost: $936,991,385)				982,952,457

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® U.S. INDUSTRIALS ETF

April 30, 2017

Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.19%
MONEY MARKET FUNDS — 1.19%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		11,211,689	$	11,216,174
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		502,321		502,321
				11,718,495
TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,717,321)				11,718,495
TOTAL INVESTMENTS IN SECURITIES — 101.10%
(Cost: $948,708,706)f				994,670,952
Other Assets, Less Liabilities — (1.10)%				(10,850,947	)
NET ASSETS — 100.00%			$	983,820,005

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $953,015,968. Net unrealized appreciation was $41,654,984, of which $78,604,881 represented gross unrealized appreciation on securities and $36,949,897 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	982,952,457	$	—	$	—	$	982,952,457
Money market funds		11,718,495		—		—		11,718,495
Total	$	994,670,952	$	—	$	—	$	994,670,952

See notes to financial statements.

SCHEDULES OF INVESTMENTS 43

Schedule of Investments  

iSHARES^® MSCI KLD 400 SOCIAL ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.86%
AEROSPACE & DEFENSE — 0.01%
Wesco Aircraft Holdings Inc.a,b		5,126	$	62,281
				62,281
AIR FREIGHT & LOGISTICS — 1.01%
CH Robinson Worldwide Inc.		12,370		899,299
Echo Global Logistics Inc.a		2,285		42,844
Expeditors International of Washington Inc.		15,694		880,276
United Parcel Service Inc. Class B		60,039		6,451,791
				8,274,210
AIRLINES — 0.18%
Delta Air Lines Inc.		16,232		737,582
Southwest Airlines Co.		13,448		756,047
				1,493,629
AUTO COMPONENTS — 0.19%
Autoliv Inc.		7,651		766,554
BorgWarner Inc.		18,577		785,435
				1,551,989
AUTOMOBILES — 0.53%
Harley-Davidson Inc.		15,346		871,806
Tesla Inc.a,b		11,202		3,518,212
				4,390,018
BANKS — 1.79%
Bank of Hawaii Corp.		3,719		303,024
Cathay General Bancorp.		6,500		247,325
CIT Group Inc.		17,701		819,733
Citizens Financial Group Inc.		44,566		1,636,018
Comerica Inc.		14,955		1,057,319
Heartland Financial USA Inc.		1,908		91,584
International Bancshares Corp.		4,861		181,801
KeyCorp		94,268		1,719,448
M&T Bank Corp.		12,150		1,888,232
Old National Bancorp./IN		11,117		186,766
People’s United Financial Inc.		29,871		521,846
PNC Financial Services Group Inc. (The)c		42,308		5,066,383
Signature Bank/New York NYa		4,657		644,762
Umpqua Holdings Corp.		19,094		337,391
				14,701,632
BEVERAGES — 2.05%
Coca-Cola Co. (The)		356,852		15,398,164
Dr Pepper Snapple Group Inc.		16,031		1,469,241
				16,867,405

Security	Shares		Value
BIOTECHNOLOGY — 4.37%
Amgen Inc.		64,791	$	10,581,666
Biogen Inc.a		18,951		5,139,701
BioMarin Pharmaceutical Inc.a		14,972		1,434,916
Celgene Corp.a		67,516		8,375,360
Gilead Sciences Inc.		114,743		7,865,633
Vertex Pharmaceuticals Inc.a		21,576		2,552,441
				35,949,717
BUILDING PRODUCTS — 0.82%
AO Smith Corp.		12,854		692,574
Builders FirstSource Inc.a,b		8,719		139,591
Fortune Brands Home & Security Inc.		13,479		859,151
Johnson Controls International PLC		81,514		3,388,537
Masco Corp.		28,628		1,059,809
Owens Corning		9,820		597,547
				6,737,209
CAPITAL MARKETS — 3.40%
Ameriprise Financial Inc.		13,760		1,759,216
Bank of New York Mellon Corp. (The)		92,137		4,335,967
BlackRock Inc.c		10,570		4,064,905
Charles Schwab Corp. (The)		103,991		4,040,050
CME Group Inc.		29,530		3,431,091
FactSet Research Systems Inc.		3,479		567,981
Franklin Resources Inc.		32,190		1,387,711
Invesco Ltd.		35,547		1,170,918
Legg Mason Inc.		7,865		293,994
Northern Trust Corp.		18,726		1,685,340
State Street Corp.		33,581		2,817,446
T Rowe Price Group Inc.		21,193		1,502,372
TD Ameritrade Holding Corp.		23,032		881,435
				27,938,426
CHEMICALS — 2.19%
Air Products & Chemicals Inc.		17,910		2,516,355
Albemarle Corp.		9,824		1,069,932
Axalta Coating Systems Ltd.a		18,932		593,897
Ecolab Inc.		22,843		2,948,803
HB Fuller Co.		4,362		230,444
International Flavors & Fragrances Inc.		6,903		956,687
Minerals Technologies Inc.		3,019		237,595
Mosaic Co. (The)		29,132		784,525
PPG Industries Inc.		22,983		2,524,453
Praxair Inc.		24,843		3,104,878

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

April 30, 2017

Security	Shares		Value
Sherwin-Williams Co. (The)		6,876	$	2,301,260
Valspar Corp. (The)		6,603		742,441
				18,011,270
COMMERCIAL SERVICES & SUPPLIES — 0.23%
ACCO Brands Corp.a		9,292		132,411
Copart Inc.a		17,952		554,717
Deluxe Corp.		4,227		303,964
Essendant Inc.		3,231		53,958
HNI Corp.		3,860		180,494
Interface Inc.		5,619		111,818
Knoll Inc.		4,262		102,117
RR Donnelley & Sons Co.		6,051		76,061
Steelcase Inc. Class A		7,599		129,563
Team Inc.a,b		2,417		65,017
Tetra Tech Inc.		4,978		218,783
				1,928,903
COMMUNICATIONS EQUIPMENT — 2.06%
Calix Inc.a		3,803		25,480
Cisco Systems Inc.		437,192		14,895,131
F5 Networks Inc.a		5,715		737,978
Motorola Solutions Inc.		13,014		1,118,814
Plantronics Inc.		2,873		156,866
				16,934,269
CONSTRUCTION & ENGINEERING — 0.12%
EMCOR Group Inc.		5,270		346,450
Granite Construction Inc.		3,430		180,795
Quanta Services Inc.a		13,057		462,740
				989,985
CONSUMER FINANCE — 0.74%
Ally Financial Inc.		36,958		731,769
American Express Co.		67,761		5,370,059
				6,101,828
CONTAINERS & PACKAGING — 0.50%
Avery Dennison Corp.		7,805		649,454
Ball Corp.		14,460		1,111,829
Sealed Air Corp.		16,831		740,901
Sonoco Products Co.		8,687		454,417
WestRock Co.		21,807		1,167,983
				4,124,584
DISTRIBUTORS — 0.16%
LKQ Corp.a		26,898		840,293
Pool Corp.		3,574		427,522
Weyco Group Inc.		549		15,350
				1,283,165

Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES — 0.08%
Voya Financial Inc.		16,948	$	633,516
				633,516
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.33%
CenturyLink Inc.		47,656		1,223,330
Cincinnati Bell Inc.a		3,279		61,809
Level 3 Communications Inc.a		26,632		1,618,160
Verizon Communications Inc.		355,052		16,300,437
				19,203,736
ELECTRIC UTILITIES — 0.29%
Alliant Energy Corp.		19,911		782,900
Eversource Energy		27,639		1,641,757
				2,424,657
ELECTRICAL EQUIPMENT — 0.73%
Acuity Brands Inc.		3,844		676,928
Eaton Corp. PLC		39,323		2,974,392
Rockwell Automation Inc.		11,163		1,756,498
Sensata Technologies Holding NVa,b		14,812		609,958
				6,017,776
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.79%
Corning Inc.		82,862		2,390,569
Flex Ltd.a		46,882		724,796
Itron Inc.a		3,152		204,407
TE Connectivity Ltd.		30,935		2,393,441
Trimble Inc.a		21,863		774,606
				6,487,819
ENERGY EQUIPMENT & SERVICES — 1.65%
Baker Hughes Inc.		34,969		2,076,110
Core Laboratories NV		3,819		423,222
National Oilwell Varco Inc.		32,950		1,152,261
Schlumberger Ltd.		121,175		8,796,093
TechnipFMC PLCa		38,585		1,162,566
				13,610,252
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 4.24%
American Tower Corp.		37,089		4,670,989
AvalonBay Communities Inc.		11,956		2,269,727
Boston Properties Inc.		13,388		1,694,921
Corporate Office Properties Trust		8,218		269,057
Digital Realty Trust Inc.b		13,880		1,593,979
Duke Realty Corp.		30,877		856,219
Equinix Inc.		6,673		2,787,312

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

April 30, 2017

Security	Shares		Value
Equity Residentialb		31,834	$	2,055,840
Federal Realty Investment Trust		6,249		817,932
Forest City Realty Trust Inc. Class A		20,941		473,267
HCP Inc.		40,778		1,278,390
Host Hotels & Resorts Inc.		64,395		1,155,890
Iron Mountain Inc.		21,908		761,522
Liberty Property Trust		12,725		516,253
Macerich Co. (The)		10,707		668,438
Potlatch Corp.		3,516		158,396
Prologis Inc.		46,012		2,503,513
SBA Communications Corp.a		10,804		1,366,598
Simon Property Group Inc.		27,374		4,523,827
UDR Inc.		23,376		872,860
Vornado Realty Trust		14,807		1,425,026
Weyerhaeuser Co.		65,145		2,206,461
				34,926,417
FOOD & STAPLES RETAILING — 0.43%
Sysco Corp.		45,239		2,391,786
United Natural Foods Inc.a		4,365		181,278
Whole Foods Market Inc.		27,642		1,005,340
				3,578,404
FOOD PRODUCTS — 3.11%
Archer-Daniels-Midland Co.		50,220		2,297,565
Bunge Ltd.		12,193		963,613
Campbell Soup Co.		17,398		1,001,081
Darling Ingredients Inc.a		14,270		215,905
General Mills Inc.		51,478		2,960,500
Hain Celestial Group Inc. (The)a		8,971		331,837
Hormel Foods Corp.		25,264		886,261
Ingredion Inc.		6,324		783,038
JM Smucker Co. (The)		10,155		1,286,842
Kellogg Co.		22,913		1,626,823
Kraft Heinz Co. (The)		53,019		4,792,387
McCormick & Co. Inc./MD		9,973		996,303
Mead Johnson Nutrition Co.		16,105		1,428,835
Mondelez International Inc. Class A		134,509		6,056,940
				25,627,930
GAS UTILITIES — 0.10%
New Jersey Resources Corp.		7,472		301,495
Northwest Natural Gas Co.		2,521		150,251
WGL Holdings Inc.		4,432		365,463
				817,209
HEALTH CARE EQUIPMENT & SUPPLIES — 1.50%
Align Technology Inc.a		6,243		840,433
Becton Dickinson and Co.		18,478		3,454,832

Security	Shares		Value
Cooper Companies Inc. (The)		4,245	$	850,401
DENTSPLY SIRONA Inc.		20,173		1,275,740
Edwards Lifesciences Corp.a		18,614		2,041,397
Hologic Inc.a		21,846		986,347
IDEXX Laboratories Inc.a		7,819		1,311,481
ResMed Inc.		12,317		837,433
Varian Medical Systems Inc.a		8,185		742,707
				12,340,771
HEALTH CARE PROVIDERS & SERVICES — 2.20%
AmerisourceBergen Corp.		14,384		1,180,207
Cardinal Health Inc.		27,863		2,022,575
Centene Corp.a		14,804		1,101,418
Cigna Corp.		22,343		3,493,775
Envision Healthcare Corp.a		10,168		569,713
HCA Holdings Inc.a		26,092		2,197,207
Henry Schein Inc.a		7,006		1,217,643
Humana Inc.		12,981		2,881,522
Laboratory Corp. of America Holdingsa		8,967		1,256,725
MEDNAX Inc.a		8,109		489,459
Patterson Companies Inc.		7,304		324,955
Quest Diagnostics Inc.		12,052		1,271,607
Select Medical Holdings Corp.a		9,124		125,455
				18,132,261
HEALTH CARE TECHNOLOGY — 0.21%
Cerner Corp.a		26,598		1,722,220
				1,722,220
HOTELS, RESTAURANTS & LEISURE — 3.23%
Aramark		20,316		741,940
Choice Hotels International Inc.		3,164		198,383
Darden Restaurants Inc.		10,178		867,064
Domino’s Pizza Inc.		4,180		758,210
Hilton Worldwide Holdings Inc.		17,233		1,016,230
Jack in the Box Inc.		2,832		288,779
Marriott International Inc./MD Class A		28,894		2,728,172
McDonald’s Corp.		72,327		10,120,717
Royal Caribbean Cruises Ltd.		14,928		1,591,325
Starbucks Corp.		126,757		7,613,025
Vail Resorts Inc.		3,463		684,497
				26,608,342
HOUSEHOLD DURABLES — 0.52%
CSS Industries Inc.		748		19,717
Ethan Allen Interiors Inc.		2,171		64,696

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

April 30, 2017

Security	Shares		Value
Garmin Ltd.		10,319	$	524,618
La-Z-Boy Inc.		4,266		119,021
Meritage Homes Corp.a		3,301		128,574
Mohawk Industries Inc.a		5,498		1,290,876
Newell Brands Inc.		37,800		1,804,572
Tupperware Brands Corp.		4,377		314,312
				4,266,386
HOUSEHOLD PRODUCTS — 3.68%
Clorox Co. (The)		11,226		1,500,804
Colgate-Palmolive Co.		73,543		5,298,038
Kimberly-Clark Corp.		31,216		4,050,276
Procter & Gamble Co. (The)		222,690		19,447,517
				30,296,635
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.10%
AES Corp./VA		57,147		646,333
Ormat Technologies Inc.		3,221		190,232
				836,565
INDUSTRIAL CONGLOMERATES — 1.48%
3M Co.		52,384		10,258,359
Roper Technologies Inc.		8,831		1,931,339
				12,189,698
INSURANCE — 3.53%
Aflac Inc.		35,527		2,660,262
Allstate Corp. (The)		32,059		2,606,076
Chubb Ltd.		40,529		5,562,605
Hartford Financial Services Group Inc. (The)		32,890		1,590,560
Loews Corp.		25,022		1,166,526
Marsh & McLennan Companies Inc.		44,870		3,326,213
Principal Financial Group Inc.		25,062		1,632,288
Progressive Corp. (The)		50,651		2,011,858
Prudential Financial Inc.		37,485		4,012,020
Travelers Companies Inc. (The)		24,727		3,008,287
Willis Towers Watson PLC		11,341		1,504,043
				29,080,738
INTERNET & DIRECT MARKETING RETAIL — 1.70%
HSN Inc.		2,949		108,818
Netflix Inc.a		37,377		5,688,780
NutriSystem Inc.		2,565		137,099
Priceline Group Inc. (The)a		4,298		7,937,632
Shutterfly Inc.a		2,800		145,320
				14,017,649

Security	Shares		Value
INTERNET SOFTWARE & SERVICES — 6.34%
Alphabet Inc. Class Aa		25,788	$	23,841,522
Alphabet Inc. Class Ca		27,050		24,506,218
Yahoo! Inc.a		79,036		3,810,325
				52,158,065
IT SERVICES — 3.52%
Accenture PLC Class A		54,025		6,553,232
Automatic Data Processing Inc.		39,326		4,109,174
Cognizant Technology Solutions Corp. Class Aa		52,807		3,180,566
Convergys Corp.		8,312		187,103
FleetCor Technologies Inc.a		8,078		1,140,129
International Business Machines Corp.		78,674		12,610,655
Teradata Corp.a		11,303		329,822
Western Union Co. (The)		42,287		839,820
				28,950,501
LEISURE PRODUCTS — 0.21%
Callaway Golf Co.		8,152		96,601
Hasbro Inc.		9,784		969,693
Mattel Inc.		29,848		669,192
				1,735,486
LIFE SCIENCES TOOLS & SERVICES — 0.69%
Agilent Technologies Inc.		28,214		1,553,181
Bio-Techne Corp.		3,231		345,975
Mettler-Toledo International Inc.a		2,294		1,177,786
PAREXEL International Corp.a		4,716		301,022
Quintiles IMS Holdings Inc.a		12,883		1,085,779
Waters Corp.a		7,037		1,195,516
				5,659,259
MACHINERY — 3.41%
AGCO Corp.		5,626		360,008
Caterpillar Inc.		50,969		5,212,090
Cummins Inc.		13,944		2,104,707
Deere & Co.		23,266		2,596,718
Dover Corp.		13,560		1,069,613
Flowserve Corp.		11,301		574,882
Fortive Corp.		27,105		1,714,662
Graco Inc.		4,831		521,023
Illinois Tool Works Inc.		27,549		3,804,241
Ingersoll-Rand PLC		22,488		1,995,810
Lincoln Electric Holdings Inc.		5,156		459,039
Meritor Inc.a		7,145		127,252

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

April 30, 2017

Security	Shares		Value
Middleby Corp. (The)a		4,994	$	679,833
Parker-Hannifin Corp.		11,610		1,866,888
Snap-on Inc.		5,038		844,016
Stanley Black & Decker Inc.		13,117		1,785,880
Tennant Co.		1,452		106,359
Timken Co. (The)		6,107		294,663
WABCO Holdings Inc.a		4,595		546,208
Wabtec Corp./DE		7,484		627,833
Xylem Inc./NY		15,702		807,240
				28,098,965
MEDIA — 4.02%
Charter Communications Inc. Class Aa		18,859		6,509,372
Discovery Communications Inc. Class Aa,b		13,369		384,760
Discovery Communications Inc. Class C NVSa		19,344		541,245
John Wiley & Sons Inc. Class A		3,985		210,010
Liberty Global PLC Series Aa,b		21,261		753,065
Liberty Global PLC Series C NVSa		52,846		1,829,000
Liberty Global PLC LiLAC Class Ca		9,450		206,388
New York Times Co. (The) Class A		11,109		160,525
Scholastic Corp.		2,270		98,132
Scripps Networks Interactive Inc. Class A		7,016		524,236
Time Warner Inc.		67,161		6,667,072
Walt Disney Co. (The)		131,677		15,221,861
				33,105,666
METALS & MINING — 0.24%
Compass Minerals International Inc.		2,934		193,644
Nucor Corp.		27,731		1,700,742
Schnitzer Steel Industries Inc. Class A		2,293		43,338
				1,937,724
MULTI-UTILITIES — 1.16%
Avista Corp.		5,523		222,798
CenterPoint Energy Inc.		35,764		1,020,347
CMS Energy Corp.		24,442		1,109,667
Consolidated Edison Inc.		26,529		2,103,219
MDU Resources Group Inc.		16,090		432,821
NiSource Inc.		28,272		685,596
Sempra Energy		20,682		2,337,479
WEC Energy Group Inc.		27,506		1,664,663
				9,576,590

Security	Shares		Value
MULTILINE RETAIL — 0.14%
Kohl’s Corp.		15,639	$	610,390
Nordstrom Inc.		11,277		544,341
				1,154,731
OIL, GAS & CONSUMABLE FUELS — 3.68%
Clean Energy Fuels Corp.a		9,667		23,588
ConocoPhillips		107,917		5,170,303
Denbury Resources Inc.a		34,540		76,679
Devon Energy Corp.		41,037		1,620,551
Energen Corp.a		8,418		437,652
EOG Resources Inc.		50,218		4,645,165
EQT Corp.		15,108		878,379
Hess Corp.		24,810		1,211,472
Marathon Oil Corp.		73,992		1,100,261
Marathon Petroleum Corp.		45,948		2,340,591
Noble Energy Inc.		40,678		1,315,120
Occidental Petroleum Corp.		66,597		4,098,379
ONEOK Inc.		18,390		967,498
Phillips 66		40,792		3,245,412
Pioneer Natural Resources Co.		14,774		2,555,754
QEP Resources Inc.a		20,770		245,294
Southwestern Energy Co.a		42,788		321,338
				30,253,436
PAPER & FOREST PRODUCTS — 0.03%
Domtar Corp.		5,369		212,881
				212,881
PERSONAL PRODUCTS — 0.23%
Avon Products Inc.a		37,896		183,795
Estee Lauder Companies Inc. (The) Class A		19,348		1,685,985
				1,869,780
PHARMACEUTICALS — 3.19%
Bristol-Myers Squibb Co.		145,554		8,158,302
Jazz Pharmaceuticals PLCa		5,245		835,424
Merck & Co. Inc.		240,131		14,967,365
Zoetis Inc.		40,920		2,296,021
				26,257,112
PROFESSIONAL SERVICES — 0.44%
Dun & Bradstreet Corp. (The)		3,226		353,602
Exponent Inc.		2,253		137,771
Heidrick & Struggles International Inc.		1,529		32,873
ICF International Inc.a		1,559		68,830
IHS Markit Ltd.a		31,207		1,354,384

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

April 30, 2017

Security	Shares		Value
Kelly Services Inc. Class A		2,699	$	60,242
ManpowerGroup Inc.		5,838		589,521
Navigant Consulting Inc.a		4,111		98,541
On Assignment Inc.a		4,389		227,219
Resources Connection Inc.		2,421		33,652
Robert Half International Inc.		11,282		519,536
RPX Corp.a		4,298		55,186
TrueBlue Inc.a		3,687		100,839
				3,632,196
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.22%
CBRE Group Inc. Class Aa		26,424		946,244
Jones Lang LaSalle Inc.		3,919		450,136
Realogy Holdings Corp.		12,587		384,533
				1,780,913
ROAD & RAIL — 1.09%
ArcBest Corp.		2,117		55,995
Avis Budget Group Inc.a		6,810		207,705
CSX Corp.		81,664		4,151,798
Genesee & Wyoming Inc. Class Aa,b		5,305		359,467
Hertz Global Holdings Inc.a		4,195		69,175
Kansas City Southern		9,363		843,325
Norfolk Southern Corp.		25,418		2,986,361
Ryder System Inc.		4,640		315,102
				8,988,928
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 4.74%
Advanced Micro Devices Inc.a		68,577		912,074
Analog Devices Inc.		31,668		2,413,102
Applied Materials Inc.		94,260		3,827,898
Intel Corp.		412,739		14,920,515
Lam Research Corp.		14,173		2,052,959
Microchip Technology Inc.b		18,808		1,421,509
NVIDIA Corp.		46,959		4,897,824
Skyworks Solutions Inc.		16,214		1,617,184
SunPower Corp.a,b		5,393		37,427
Texas Instruments Inc.		87,050		6,892,619
				38,993,111
SOFTWARE — 9.61%
Adobe Systems Inc.a		43,306		5,791,744
ANSYS Inc.a,b		7,560		832,810
Autodesk Inc.a		17,401		1,567,308
CA Inc.		27,245		894,453
Cadence Design Systems Inc.a		24,967		813,175

Security	Shares		Value
Citrix Systems Inc.a		13,603	$	1,101,027
Dell Technologies Inc. Class V Class Va		19,456		1,305,692
Fortinet Inc.a		12,735		496,665
Intuit Inc.		21,232		2,658,459
Microsoft Corp.		643,328		44,042,235
Oracle Corp.		268,183		12,057,508
salesforce.com Inc.a		56,204		4,840,289
Symantec Corp.		54,270		1,716,560
Workday Inc. Class Aa,b		10,621		928,275
				79,046,200
SPECIALTY RETAIL — 1.83%
AutoNation Inc.a		6,196		260,232
Best Buy Co. Inc.		24,862		1,288,100
Buckle Inc. (The)		2,529		47,292
Caleres Inc.		3,762		108,421
CarMax Inc.a		16,600		971,100
Foot Locker Inc.		11,601		897,221
GameStop Corp. Class A		9,012		204,482
Gap Inc. (The)		20,703		542,419
Lowe’s Companies Inc.		75,759		6,430,424
Office Depot Inc.		44,697		222,144
Pier 1 Imports Inc.		7,221		48,669
Signet Jewelers Ltd.		5,157		339,537
Staples Inc.		56,396		550,989
Tiffany & Co.		10,832		992,753
Tractor Supply Co.		11,427		707,446
Ulta Salon Cosmetics & Fragrance Inc.a		5,166		1,453,919
				15,065,148
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.75%
Hewlett Packard Enterprise Co.		145,099		2,703,194
HP Inc.		148,925		2,802,769
Super Micro Computer Inc.a		3,375		82,350
Xerox Corp.		75,525		543,025
				6,131,338
TEXTILES, APPAREL & LUXURY GOODS — 1.35%
Columbia Sportswear Co.		2,420		137,020
Deckers Outdoor Corp.a		2,638		157,198
Hanesbrands Inc.		33,131		722,587
Michael Kors Holdings Ltd.a		14,299		533,782
NIKE Inc. Class B		116,373		6,448,228
PVH Corp.		7,006		707,816
Under Armour Inc. Class Aa,b		15,903		341,755

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

April 30, 2017

Security	Shares		Value
Under Armour Inc. Class Ca,b		16,170	$	313,860
VF Corp.		28,770		1,571,705
Wolverine World Wide Inc.		8,623		207,901
				11,141,852
THRIFTS & MORTGAGE FINANCE — 0.07%
New York Community Bancorp. Inc.		42,233		561,277
				561,277
TRADING COMPANIES & DISTRIBUTORS — 0.42%
Air Lease Corp.		8,469		323,008
Applied Industrial Technologies Inc.		3,215		205,760
Fastenal Co.		25,240		1,127,723
H&E Equipment Services Inc.		2,770		58,502
United Rentals Inc.a		7,333		804,137
WW Grainger Inc.b		4,925		949,047
				3,468,177
WATER UTILITIES — 0.15%
American Water Works Co. Inc.		15,532		1,238,832
				1,238,832
WIRELESS TELECOMMUNICATION SERVICES — 0.08%
Sprint Corp.a,b		68,988		622,962
				622,962
TOTAL COMMON STOCKS
(Cost: $666,133,913)				821,800,631
SHORT-TERM INVESTMENTS — 1.39%
MONEY MARKET FUNDS — 1.39%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		10,860,508		10,864,853
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		603,275		603,275
				11,468,128
TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,465,512)				11,468,128

	Value
TOTAL INVESTMENTS IN SECURITIES — 101.25%
(Cost: $677,599,425)g	$	833,268,759
Other Assets, Less Liabilities — (1.25)%		(10,323,306	)
NET ASSETS — 100.00%	$	822,945,453

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated issuer. See Schedule 1.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $687,085,595. Net unrealized appreciation was $146,183,164, of which $165,309,841 represented gross unrealized appreciation on securities and $19,126,677 represented gross unrealized depreciation on securities.

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI KLD 400 SOCIAL ETF

April 30, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
BlackRock Inc.		7,496		4,018		(944	)		10,570	$	4,064,905	$	86,338	$	79,468
PNC Financial Services Group Inc. (The)		30,943		16,455		(5,090	)		42,308		5,066,383		84,219		71,941
										$	9,131,288	$	170,557	$	151,409

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	821,800,631	$	—	$	—	$	821,800,631
Money market funds		11,468,128		—		—		11,468,128
Total	$	833,268,759	$	—	$	—	$	833,268,759

See notes to financial statements.

SCHEDULES OF INVESTMENTS 51

Schedule of Investments

iSHARES^® MSCI USA ESG SELECT ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.81%
AEROSPACE & DEFENSE — 1.54%
Rockwell Collins Inc.		78,412	$	8,161,905
				8,161,905
AIR FREIGHT & LOGISTICS — 1.08%
Expeditors International of Washington Inc.		79,797		4,475,814
United Parcel Service Inc. Class B		11,405		1,225,581
				5,701,395
AUTOMOBILES — 0.82%
Tesla Inc.a,b		13,798		4,333,538
				4,333,538
BANKS — 2.33%
Comerica Inc.		51,402		3,634,121
KeyCorp		99,081		1,807,238
People’s United Financial Inc.		257,003		4,489,842
PNC Financial Services Group Inc. (The)c		5,759		689,640
Signature Bank/New York NYa		12,117		1,677,599
				12,298,440
BEVERAGES — 2.74%
Coca-Cola Co. (The)		123,740		5,339,381
PepsiCo Inc.		80,757		9,148,153
				14,487,534
BIOTECHNOLOGY — 2.06%
AbbVie Inc.		12,354		814,623
Amgen Inc.		3,019		493,063
Biogen Inc.a		7,982		2,164,798
Celgene Corp.a		16,957		2,103,516
Gilead Sciences Inc.		36,557		2,505,982
Vertex Pharmaceuticals Inc.a		23,545		2,785,374
				10,867,356
BUILDING PRODUCTS — 0.45%
Johnson Controls International PLC		29,232		1,215,174
Masco Corp.		31,552		1,168,055
				2,383,229
CAPITAL MARKETS — 6.45%
Bank of New York Mellon Corp. (The)		26,264		1,235,984
BlackRock Inc.c		28,832		11,087,922
Franklin Resources Inc.		75,546		3,256,788
Northern Trust Corp.		117,247		10,552,230
State Street Corp.		84,021		7,049,362

Security	Shares		Value
T Rowe Price Group Inc.		12,439	$	881,801
				34,064,087
CHEMICALS — 3.85%
Ecolab Inc.		129,407		16,705,150
International Flavors & Fragrances Inc.		26,156		3,624,960
				20,330,110
COMMUNICATIONS EQUIPMENT — 2.23%
Cisco Systems Inc.		269,595		9,185,102
Motorola Solutions Inc.		30,229		2,598,787
				11,783,889
CONSUMER FINANCE — 1.10%
American Express Co.		73,398		5,816,791
				5,816,791
CONTAINERS & PACKAGING — 0.54%
Ball Corp.		37,093		2,852,081
				2,852,081
DISTRIBUTORS — 0.13%
LKQ Corp.a		21,629		675,690
				675,690
ELECTRIC UTILITIES — 1.46%
Edison International		14,862		1,188,514
Eversource Energy		73,657		4,375,226
Xcel Energy Inc.		48,258		2,174,023
				7,737,763
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.66%
Corning Inc.		48,448		1,397,725
TE Connectivity Ltd.		26,767		2,070,962
				3,468,687
ENERGY EQUIPMENT & SERVICES — 1.40%
Baker Hughes Inc.		42,868		2,545,073
Core Laboratories NV		6,187		685,643
National Oilwell Varco Inc.		14,992		524,270
Schlumberger Ltd.		18,465		1,340,375
TechnipFMC PLCa		76,520		2,305,548
				7,400,909
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.69%
American Tower Corp.		28,697		3,614,100
HCP Inc.		38,442		1,205,157
Liberty Property Trust		149,558		6,067,568
Prologis Inc.		158,265		8,611,198
				19,498,023

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA ESG SELECT ETF

April 30, 2017

Security	Shares		Value
FOOD & STAPLES RETAILING — 0.17%
Whole Foods Market Inc.		24,294	$	883,573
				883,573
FOOD PRODUCTS — 5.21%
Bunge Ltd.		67,240		5,313,977
Campbell Soup Co.		72,483		4,170,672
General Mills Inc.		96,836		5,569,039
Kellogg Co.		152,029		10,794,059
Mondelez International Inc. Class A		37,845		1,704,160
				27,551,907
HEALTH CARE PROVIDERS & SERVICES — 6.07%
AmerisourceBergen Corp.		37,600		3,085,080
Cardinal Health Inc.		116,868		8,483,448
HCA Holdings Inc.a		6,174		519,913
Henry Schein Inc.a		73,674		12,804,541
Patterson Companies Inc.		145,825		6,487,754
Quest Diagnostics Inc.		6,672		703,963
				32,084,699
HOTELS, RESTAURANTS & LEISURE — 0.94%
Hilton Worldwide Holdings Inc.		13,044		769,205
Marriott International Inc./MD Class A		44,510		4,202,634
				4,971,839
HOUSEHOLD DURABLES — 0.58%
Newell Brands Inc.		63,698		3,040,942
				3,040,942
HOUSEHOLD PRODUCTS — 3.18%
Clorox Co. (The)		46,136		6,167,922
Kimberly-Clark Corp.		24,481		3,176,410
Procter & Gamble Co. (The)		85,279		7,447,415
				16,791,747
INDUSTRIAL CONGLOMERATES — 4.55%
3M Co.		122,936		24,074,557
				24,074,557
INSURANCE — 1.53%
Marsh & McLennan Companies Inc.		109,417		8,111,082
				8,111,082
INTERNET & DIRECT MARKETING RETAIL — 0.42%
Amazon.com Inc.a		895		827,866
Netflix Inc.a		9,028		1,374,062
				2,201,928
INTERNET SOFTWARE & SERVICES — 2.59%
Alphabet Inc. Class Aa		13,424		12,410,756
Facebook Inc. Class Aa		8,339		1,252,935
				13,663,691

Security	Shares		Value
IT SERVICES — 4.13%
Accenture PLC Class A		126,202	$	15,308,303
International Business Machines Corp.		40,546		6,499,118
				21,807,421
LEISURE PRODUCTS — 0.18%
Mattel Inc.		41,526		931,013
				931,013
LIFE SCIENCES TOOLS & SERVICES — 3.48%
Agilent Technologies Inc.		163,935		9,024,622
Mettler-Toledo International Inc.a		6,715		3,447,615
Waters Corp.a		34,966		5,940,374
				18,412,611
MACHINERY — 4.20%
Caterpillar Inc.		60,575		6,194,399
Cummins Inc.		74,908		11,306,613
Ingersoll-Rand PLC		22,469		1,994,124
Parker-Hannifin Corp.		4,607		740,806
Xylem Inc./NY		38,231		1,965,456
				22,201,398
MEDIA — 2.50%
Charter Communications Inc. Class Aa		5,336		1,841,774
Liberty Global PLC Series Aa		17,895		633,841
Scripps Networks Interactive Inc. Class A		16,845		1,258,658
Time Warner Inc.		20,856		2,070,375
Walt Disney Co. (The)		64,044		7,403,486
				13,208,134
MULTI-UTILITIES — 1.26%
Sempra Energy		59,131		6,682,986
				6,682,986
MULTILINE RETAIL — 0.11%
Nordstrom Inc.		12,409		598,982
				598,982
OIL, GAS & CONSUMABLE FUELS — 1.63%
ConocoPhillips		65,522		3,139,159
Hess Corp.		59,490		2,904,897
Marathon Oil Corp.		53,760		799,411
Noble Energy Inc.		22,150		716,110
Phillips 66		13,415		1,067,297
				8,626,874

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Continued)

iSHARES^® MSCI USA ESG SELECT ETF

April 30, 2017

Security	Shares		Value
PHARMACEUTICALS — 2.47%
Merck & Co. Inc.		141,980	$	8,849,613
Zoetis Inc.		74,805		4,197,309
				13,046,922
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.88%
CBRE Group Inc. Class Aa,b		130,002		4,655,372
				4,655,372
ROAD & RAIL — 1.07%
CSX Corp.		18,004		915,323
Norfolk Southern Corp.		40,504		4,758,815
				5,674,138
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.03%
Applied Materials Inc.		78,060		3,170,016
Intel Corp.		202,340		7,314,591
NVIDIA Corp.		15,867		1,654,928
Texas Instruments Inc.		48,844		3,867,468
				16,007,003
SOFTWARE — 7.65%
Autodesk Inc.a		29,311		2,640,042
CA Inc.		67,456		2,214,580
Microsoft Corp.		355,582		24,343,144
Oracle Corp.		149,517		6,722,284
salesforce.com Inc.a		22,991		1,979,985
Symantec Corp.		80,285		2,539,415
				40,439,450
SPECIALTY RETAIL — 2.27%
Best Buy Co. Inc.		62,131		3,219,007
Gap Inc. (The)		26,620		697,444
Signet Jewelers Ltd.		14,818		975,617
Tiffany & Co.		77,652		7,116,806
				12,008,874
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 4.94%
Apple Inc.		136,574		19,618,855
Hewlett Packard Enterprise Co.		174,676		3,254,214
HP Inc.		172,928		3,254,505
				26,127,574

Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 2.12%
Hanesbrands Inc.		45,469	$	991,679
NIKE Inc. Class B		146,208		8,101,385
PVH Corp.		15,345		1,550,306
VF Corp.		10,291		562,197
				11,205,567
TRADING COMPANIES & DISTRIBUTORS — 0.12%
WW Grainger Inc.		3,290		633,983
				633,983
TOTAL COMMON STOCKS
(Cost: $428,432,316)				527,505,694
SHORT-TERM INVESTMENTS — 1.07%
MONEY MARKET FUNDS — 1.07%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		4,956,622		4,958,605
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		682,676		682,676
				5,641,281
TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,640,918)				5,641,281
TOTAL INVESTMENTS IN SECURITIES — 100.88%
(Cost: $434,073,234)g				533,146,975
Other Assets, Less Liabilities — (0.88)%				(4,638,451	)
NET ASSETS — 100.00%			$	528,508,524

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated issuer. See Schedule 1.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $439,100,849. Net unrealized appreciation was $94,046,126, of which $104,810,734 represented gross unrealized appreciation on securities and $10,764,608 represented gross unrealized depreciation on securities.

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA ESG SELECT ETF

April 30, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
BlackRock Inc.		13,444		17,361		(1,973	)		28,832	$	11,087,922	$	208,207	$	104,241
PNC Financial Services Group Inc. (The)		—		6,089		(330	)		5,759		689,640		11,404		7,798
										$	11,777,562	$	219,611	$	112,039

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	527,505,694	$	—	$	—	$	527,505,694
Money market funds		5,641,281		—		—		5,641,281
Total	$	533,146,975	$	—	$	—	$	533,146,975

See notes to financial statements.

SCHEDULES OF INVESTMENTS 55

Statements of Assets and Liabilities

iSHARES^® TRUST

April 30, 2017

	iShares U.S. Basic Materials ETF			iShares U.S. Consumer Goods ETF			iShares U.S. Consumer Services ETF
ASSETS
Investments, at cost:
Unaffiliated	$	989,947,292		$	710,237,358		$	625,807,649
Affiliated (Note 2)		3,658,982			28,564,899			16,237,200
Total cost of investments	$	993,606,274		$	738,802,257		$	642,044,849
Investments in securities, at fair value (including securities on loan)a (Note 1):
Unaffiliated	$	963,479,931		$	718,875,784		$	668,398,019
Affiliated (Note 2)		3,659,867			28,569,547			16,240,265
Total fair value of investments		967,139,798			747,445,331			684,638,284
Cash		61,940			—			—
Receivables:
Dividends and interest		535,915			1,141,173			239,462
Total Assets		967,737,653			748,586,504			684,877,746
LIABILITIES
Payables:
Investment securities purchased		4,446,718			—			—
Collateral for securities on loan (Note 1)		2,221,328			28,159,887			15,419,029
Investment advisory fees (Note 2)		322,666			242,658			240,363
Total Liabilities		6,990,712			28,402,545			15,659,392
NET ASSETS	$	960,746,941		$	720,183,959		$	669,218,354
Net assets consist of:
Paid-in capital	$	1,102,828,195		$	729,470,938		$	653,049,517
Undistributed net investment income		1,533,225			—			536,347
Accumulated net realized loss		(117,148,003	)		(17,930,053	)		(26,960,945	)
Net unrealized appreciation (depreciation)		(26,466,476	)		8,643,074			42,593,435
NET ASSETS	$	960,746,941		$	720,183,959		$	669,218,354
Shares outstandingb		10,750,000			6,050,000			4,050,000
Net asset value per share	$	89.37		$	119.04		$	165.24

^a  Securities on loan with values of $2,134,622, $27,691,827 and $14,715,588, respectively. See Note 1.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2017

	iShares U.S. Financial Services ETF			iShares U.S. Financials ETF			iShares U.S. Industrials ETF
ASSETS
Investments, at cost:
Unaffiliated	$	1,279,999,550		$	1,590,175,704		$	936,991,385
Affiliated (Note 2)		55,817,760			56,922,232			11,717,321
Total cost of investments	$	1,335,817,310		$	1,647,097,936		$	948,708,706
Investments in securities, at fair value (including securities on loan)a (Note 1):
Unaffiliated	$	1,370,028,687		$	1,639,757,373		$	982,952,457
Affiliated (Note 2)		60,720,832			60,422,303			11,718,495
Total fair value of investments		1,430,749,519			1,700,179,676			994,670,952
Receivables:
Investment securities sold		232,151			—			—
Dividends and interest		2,027,368			1,796,434			733,918
Capital shares sold		14,165			—			—
Total Assets		1,433,023,203			1,701,976,110			995,404,870
LIABILITIES
Payables:
Investment securities purchased		—			158,562			—
Collateral for securities on loan (Note 1)		1,621,200			19,887,362			11,213,782
Capital shares redeemed		253,109			—			16,301
Investment advisory fees (Note 2)		502,636			606,122			354,782
Total Liabilities		2,376,945			20,652,046			11,584,865
NET ASSETS	$	1,430,646,258		$	1,681,324,064		$	983,820,005
Net assets consist of:
Paid-in capital	$	1,401,916,321		$	1,686,169,638		$	959,577,379
Undistributed net investment income		1,932,949			85,896			267,491
Accumulated net realized loss		(68,135,221	)		(58,013,210	)		(21,987,111	)
Net unrealized appreciation		94,932,209			53,081,740			45,962,246
NET ASSETS	$	1,430,646,258		$	1,681,324,064		$	983,820,005
Shares outstandingb		13,200,000			16,200,000			7,650,000
Net asset value per share	$	108.38		$	103.79		$	128.60

^a  Securities on loan with values of $1,477,896, $19,134,041 and $10,808,432, respectively. See Note 1.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

FINANCIAL STATEMENTS 57

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2017

	iShares MSCI KLD 400 Social ETF			iShares MSCI USA ESG Select ETF
ASSETS
Investments, at cost:
Unaffiliated	$	659,474,708		$	417,526,979
Affiliated (Note 2)		18,124,717			16,546,255
Total cost of investments	$	677,599,425		$	434,073,234
Investments in securities, at fair value (including securities on loan)a (Note 1):
Unaffiliated	$	812,669,343		$	515,728,132
Affiliated (Note 2)		20,599,416			17,418,843
Total fair value of investments		833,268,759			533,146,975
Receivables:
Dividends and interest		869,583			543,120
Total Assets		834,138,342			533,690,095
LIABILITIES
Payables:
Collateral for securities on loan (Note 1)		10,862,132			4,957,749
Capital shares redeemed		—			9,243
Investment advisory fees (Note 2)		330,757			214,579
Total Liabilities		11,192,889			5,181,571
NET ASSETS	$	822,945,453		$	528,508,524
Net assets consist of:
Paid-in capital	$	682,185,075		$	440,341,322
Undistributed net investment income		235,582			250,889
Accumulated net realized loss		(15,144,538	)		(11,157,428	)
Net unrealized appreciation		155,669,334			99,073,741
NET ASSETS	$	822,945,453		$	528,508,524
Shares outstandingb		9,350,000			5,300,000
Net asset value per share	$	88.02		$	99.72

^a  Securities on loan with values of $10,670,996 and $4,836,708, respectively. See Note 1.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year ended April 30, 2017

	iShares U.S. Basic Materials ETF			iShares U.S. Consumer Goods ETF			iShares U.S. Consumer Services ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	13,329,224		$	16,329,132		$	12,279,834
Dividends — affiliated (Note 2)		2,562			2,944			3,060
Securities lending income — affiliated — net (Note 2)		26,411			430,111			110,998
Total investment income		13,358,197			16,762,187			12,393,892
EXPENSES
Investment advisory fees (Note 2)		2,851,757			2,998,395			3,762,805
Total expenses		2,851,757			2,998,395			3,762,805
Net investment income		10,506,440			13,763,792			8,631,087
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(33,752,667	)		(6,530,515	)		(9,267,777	)
Investments — affiliated (Note 2)		1,096			1,282			3,283
In-kind redemptions — unaffiliated		69,254,359			53,980,172			97,630,956
Realized gain distributions from affiliated funds		84			23			85
Net realized gain		35,502,872			47,450,962			88,366,547
Net change in unrealized appreciation/depreciation		55,005,749			(6,378,723	)		17,754,845
Net realized and unrealized gain		90,508,621			41,072,239			106,121,392
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	101,015,061		$	54,836,031		$	114,752,479

^a  Net of foreign withholding tax of $  —, $  — and $417, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 59

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended April 30, 2017

	iShares U.S. Financial Services ETF			iShares U.S. Financials ETF			iShares U.S. Industrials ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	16,583,631		$	32,605,324		$	18,432,270
Dividends — affiliated (Note 2)		871,236			841,775			4,837
Interest — unaffiliated		—			—			362
Securities lending income — affiliated — net (Note 2)		6,690			78,115			115,963
Total investment income		17,461,557			33,525,214			18,553,432
EXPENSES
Investment advisory fees (Note 2)		3,985,637			6,887,967			4,109,685
Total expenses		3,985,637			6,887,967			4,109,685
Net investment income		13,475,920			26,637,247			14,443,747
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(4,585,784	)		(8,844,331	)		(8,013,858	)
Investments — affiliated (Note 2)		(40,569	)		(80,988	)		1,217
In-kind redemptions — unaffiliated		72,707,894			109,922,011			91,019,492
In-kind redemptions — affiliated (Note 2)		2,676,482			2,215,406			—
Realized gain distributions from affiliated funds		84			163			59
Net realized gain		70,758,107			103,212,261			83,006,910
Net change in unrealized appreciation/depreciation		160,824,534			173,407,649			71,275,827
Net realized and unrealized gain		231,582,641			276,619,910			154,282,737
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	245,058,561		$	303,257,157		$	168,726,484

^a  Net of foreign withholding tax of $2,779, $2,880 and $1,504, respectively.

See notes to financial statements.

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended April 30, 2017

	iShares MSCI KLD 400 Social ETF			iShares MSCI USA ESG Select ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	12,902,533		$	8,645,809
Dividends — affiliated (Note 2)		173,345			221,871
Securities lending income — affiliated — net (Note 2)		111,508			99,988
Total investment income		13,187,386			8,967,668
EXPENSES
Investment advisory fees (Note 2)		3,319,785			2,208,134
Total expenses		3,319,785			2,208,134
Net investment income		9,867,601			6,759,534
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(638,976	)		2,801,739
Investments — affiliated (Note 2)		(7,133	)		(4,155	)
In-kind redemptions — unaffiliated		13,569,731			21,188,066
In-kind redemptions — affiliated (Note 2)		158,647			116,687
Realized gain distributions from affiliated funds		102			68
Net realized gain		13,082,371			24,102,405
Net change in unrealized appreciation/depreciation		83,380,091			46,774,848
Net realized and unrealized gain		96,462,462			70,877,253
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	106,330,063		$	77,636,787

^a  Net of foreign withholding tax of $1,331 and $1,882, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 61

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares U.S. Basic Materials ETF						iShares U.S. Consumer Goods ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	10,506,440		$	7,306,256		$	13,763,792		$	15,460,006
Net realized gain (loss)		35,502,872			(57,685,145	)		47,450,962			73,771,917
Net change in unrealized appreciation/depreciation		55,005,749			17,530,716			(6,378,723	)		(25,954,748	)
Net increase (decrease) in net assets resulting from operations		101,015,061			(32,848,173	)		54,836,031			63,277,175
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,748,115	)		(7,139,124	)		(16,041,659	)		(15,201,572	)
Total distributions to shareholders		(9,748,115	)		(7,139,124	)		(16,041,659	)		(15,201,572	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,056,402,271			314,783,107			298,891,859			696,410,406
Cost of shares redeemed		(738,205,121	)		(218,392,540	)		(569,371,600	)		(571,027,855	)
Net increase (decrease) in net assets from capital share transactions		318,197,150			96,390,567			(270,479,741	)		125,382,551
INCREASE (DECREASE) IN NET ASSETS		409,464,096			56,403,270			(231,685,369	)		173,458,154
NET ASSETS
Beginning of year		551,282,845			494,879,575			951,869,328			778,411,174
End of year	$	960,746,941		$	551,282,845		$	720,183,959		$	951,869,328
Undistributed net investment income included in net assets at end of year	$	1,533,225		$	774,819		$	—		$	1,743,511
SHARES ISSUED AND REDEEMED
Shares sold		12,500,000			4,300,000			2,550,000			6,500,000
Shares redeemed		(8,850,000	)		(3,050,000	)		(5,000,000	)		(5,400,000	)
Net increase (decrease) in shares outstanding		3,650,000			1,250,000			(2,450,000	)		1,100,000

See notes to financial statements.

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets  (Continued)

iSHARES^® TRUST

	iShares U.S. Consumer Services ETF						iShares U.S. Financial Services ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	8,631,087		$	10,166,229		$	13,475,920		$	10,649,933
Net realized gain		88,366,547			68,368,903			70,758,107			38,570,180
Net change in unrealized appreciation/depreciation		17,754,845			(67,273,747	)		160,824,534			(123,211,950	)
Net increase (decrease) in net assets resulting from operations		114,752,479			11,261,385			245,058,561			(73,991,837	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,488,256	)		(10,136,926	)		(12,364,655	)		(10,698,471	)
Total distributions to shareholders		(9,488,256	)		(10,136,926	)		(12,364,655	)		(10,698,471	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		188,529,023			246,435,482			1,101,417,991			653,302,434
Cost of shares redeemed		(584,451,919	)		(342,955,499	)		(471,125,581	)		(565,323,910	)
Net increase (decrease) in net assets from capital share transactions		(395,922,896	)		(96,520,017	)		630,292,410			87,978,524
INCREASE (DECREASE) IN NET ASSETS		(290,658,673	)		(95,395,558	)		862,986,316			3,288,216
NET ASSETS
Beginning of year		959,877,027			1,055,272,585			567,659,942			564,371,726
End of year	$	669,218,354		$	959,877,027		$	1,430,646,258		$	567,659,942
Undistributed net investment income included in net assets at end of year	$	536,347		$	486,318		$	1,932,949		$	821,755
SHARES ISSUED AND REDEEMED
Shares sold		1,250,000			1,700,000			11,200,000			7,050,000
Shares redeemed		(3,850,000	)		(2,450,000	)		(4,650,000	)		(6,600,000	)
Net increase (decrease) in shares outstanding		(2,600,000	)		(750,000	)		6,550,000			450,000

See notes to financial statements.

FINANCIAL STATEMENTS 63

Statements of Changes in Net Assets  (Continued)

iSHARES^® TRUST

	iShares U.S. Financials ETF						iShares U.S. Industrials ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	26,637,247		$	23,201,864		$	14,443,747		$	9,705,778
Net realized gain (loss)		103,212,261			(35,967,515	)		83,006,910			(8,897,904	)
Net change in unrealized appreciation/depreciation		173,407,649			(62,316,897	)		71,275,827			6,372,478
Net increase (decrease) in net assets resulting from operations		303,257,157			(75,082,548	)		168,726,484			7,180,352
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(27,974,695	)		(25,797,288	)		(14,219,187	)		(9,662,904	)
Total distributions to shareholders		(27,974,695	)		(25,797,288	)		(14,219,187	)		(9,662,904	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,520,325,655			1,547,422,376			740,482,618			259,067,218
Cost of shares redeemed		(1,287,579,008	)		(1,436,661,278	)		(644,587,072	)		(441,021,410	)
Net increase (decrease) in net assets from capital share transactions		232,746,647			110,761,098			95,895,546			(181,954,192	)
INCREASE (DECREASE) IN NET ASSETS		508,029,109			9,881,262			250,402,843			(184,436,744	)
NET ASSETS
Beginning of year		1,173,294,955			1,163,413,693			733,417,162			917,853,906
End of year	$	1,681,324,064		$	1,173,294,955		$	983,820,005		$	733,417,162
Undistributed net investment income included in net assets at end of year	$	85,896		$	81,002		$	267,491		$	42,874
SHARES ISSUED AND REDEEMED
Shares sold		16,250,000			17,350,000			6,300,000			2,450,000
Shares redeemed		(13,550,000	)		(16,950,000	)		(5,400,000	)		(4,250,000	)
Net increase (decrease) in shares outstanding		2,700,000			400,000			900,000			(1,800,000	)

See notes to financial statements.

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets  (Continued)

iSHARES^® TRUST

	iShares MSCI KLD 400 Social ETF						iShares MSCI USA ESG Select ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	9,867,601		$	7,178,063		$	6,759,534		$	5,376,610
Net realized gain		13,082,371			7,067,540			24,102,405			13,615,604
Net change in unrealized appreciation/depreciation		83,380,091			(11,769,764	)		46,774,848			(17,384,644	)
Net increase in net assets resulting from operations		106,330,063			2,475,839			77,636,787			1,607,570
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,805,524	)		(7,482,505	)		(6,710,825	)		(5,328,373	)
Total distributions to shareholders		(9,805,524	)		(7,482,505	)		(6,710,825	)		(5,328,373	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		266,035,782			120,926,426			158,914,934			80,059,618
Cost of shares redeemed		(40,292,161	)		(46,945,966	)		(58,843,156	)		(47,104,740	)
Net increase in net assets from capital share transactions		225,743,621			73,980,460			100,071,778			32,954,878
INCREASE IN NET ASSETS		322,268,160			68,973,794			170,997,740			29,234,075
NET ASSETS
Beginning of year		500,677,293			431,703,499			357,510,784			328,276,709
End of year	$	822,945,453		$	500,677,293		$	528,508,524		$	357,510,784
Undistributed net investment income included in net assets at end of year	$	235,582		$	173,405		$	250,889		$	202,114
SHARES ISSUED AND REDEEMED
Shares sold		3,300,000			1,600,000			1,750,000			950,000
Shares redeemed		(500,000	)		(650,000	)		(650,000	)		(550,000	)
Net increase in shares outstanding		2,800,000			950,000			1,100,000			400,000

See notes to financial statements.

FINANCIAL STATEMENTS 65

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Basic Materials ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	77.65		$	84.59		$	83.92		$	69.93		$	69.97
Income from investment operations:
Net investment incomea		1.34			1.39			1.34			1.49			1.51
Net realized and unrealized gain (loss)b		11.62			(6.93	)		0.82			13.89			(0.12	)
Total from investment operations		12.96			(5.54	)		2.16			15.38			1.39
Less distributions from:
Net investment income		(1.24	)		(1.40	)		(1.49	)		(1.39	)		(1.43	)
Total distributions		(1.24	)		(1.40	)		(1.49	)		(1.39	)		(1.43	)
Net asset value, end of year	$	89.37		$	77.65		$	84.59		$	83.92		$	69.93
Total return		16.88	%		(6.42	)%		2.58	%		22.27	%		2.06	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	960,747		$	551,283		$	494,880		$	939,881		$	506,979
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		1.62	%		1.88	%		1.57	%		1.94	%		2.23	%
Portfolio turnover ratec		13	%		13	%		7	%		16	%		8	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Consumer Goods ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	111.98		$	105.19		$	96.90		$	87.54		$	73.95
Income from investment operations:
Net investment incomea		2.32			2.31			2.03			1.81			1.70
Net realized and unrealized gainb		7.66			6.90			8.23			9.37			13.60
Total from investment operations		9.98			9.21			10.26			11.18			15.30
Less distributions from:
Net investment income		(2.92	)		(2.42	)		(1.97	)		(1.82	)		(1.71	)
Total distributions		(2.92	)		(2.42	)		(1.97	)		(1.82	)		(1.71	)
Net asset value, end of year	$	119.04		$	111.98		$	105.19		$	96.90		$	87.54
Total return		9.04	%		8.88	%		10.66	%		12.92	%		21.06	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	720,184		$	951,869		$	778,411		$	460,252		$	494,612
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		2.03	%		2.15	%		1.98	%		1.97	%		2.22	%
Portfolio turnover ratec		7	%		4	%		4	%		9	%		7	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 67

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Consumer Services ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	144.34		$	142.60		$	118.79		$	99.99		$	81.99
Income from investment operations:
Net investment incomea		1.52			1.42			1.44			1.08			1.30
Net realized and unrealized gainb		20.99			1.74			23.64			18.72			18.02
Total from investment operations		22.51			3.16			25.08			19.80			19.32
Less distributions from:
Net investment income		(1.61	)		(1.42	)		(1.27	)		(1.00	)		(1.32	)
Total distributions		(1.61	)		(1.42	)		(1.27	)		(1.00	)		(1.32	)
Net asset value, end of year	$	165.24		$	144.34		$	142.60		$	118.79		$	99.99
Total return		15.71	%		2.23	%		21.19	%		19.85	%		23.82	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	669,218		$	959,877		$	1,055,273		$	421,694		$	379,975
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		1.01	%		0.99	%		1.08	%		0.96	%		1.50	%
Portfolio turnover ratec		8	%		9	%		8	%		5	%		9	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

68 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Financial Services ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	85.36		$	91.03		$	81.22		$	66.98		$	55.38
Income from investment operations:
Net investment incomea		1.47			1.28			1.15			0.94			0.84
Net realized and unrealized gain (loss)b		22.88			(5.66	)		9.77			14.22			11.60
Total from investment operations		24.35			(4.38	)		10.92			15.16			12.44
Less distributions from:
Net investment income		(1.33	)		(1.29	)		(1.11	)		(0.92	)		(0.84	)
Total distributions		(1.33	)		(1.29	)		(1.11	)		(0.92	)		(0.84	)
Net asset value, end of year	$	108.38		$	85.36		$	91.03		$	81.22		$	66.98
Total return		28.74	%		(4.85	)%		13.50	%		22.68	%		22.74	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,430,646		$	567,660		$	564,372		$	592,917		$	428,658
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		1.49	%		1.44	%		1.32	%		1.20	%		1.43	%
Portfolio turnover ratec		4	%		5	%		3	%		4	%		5	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 69

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Financials ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	86.91		$	88.81		$	80.39		$	69.55		$	57.76
Income from investment operations:
Net investment incomea		1.64			1.44			1.27			1.15			1.06
Net realized and unrealized gain (loss)b		16.91			(1.81	)		8.46			10.84			11.76
Total from investment operations		18.55			(0.37	)		9.73			11.99			12.82
Less distributions from:
Net investment income		(1.67	)		(1.53	)		(1.31	)		(1.15	)		(1.03	)
Total distributions		(1.67	)		(1.53	)		(1.31	)		(1.15	)		(1.03	)
Net asset value, end of year	$	103.79		$	86.91		$	88.81		$	80.39		$	69.55
Total return		21.52	%		(0.41	)%		12.15	%		17.32	%		22.50	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,681,324		$	1,173,295		$	1,163,414		$	1,559,644		$	879,785
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		1.70	%		1.64	%		1.48	%		1.50	%		1.73	%
Portfolio turnover ratec		6	%		6	%		6	%		6	%		10	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

70 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares U.S. Industrials ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	108.65		$	107.35		$	101.19		$	81.15		$	70.81
Income from investment operations:
Net investment incomea		1.82			1.59			1.43			1.28			1.24
Net realized and unrealized gainb		19.89			1.35			6.17			20.14			10.30
Total from investment operations		21.71			2.94			7.60			21.42			11.54
Less distributions from:
Net investment income		(1.76	)		(1.64	)		(1.44	)		(1.38	)		(1.20	)
Total distributions		(1.76	)		(1.64	)		(1.44	)		(1.38	)		(1.20	)
Net asset value, end of year	$	128.60		$	108.65		$	107.35		$	101.19		$	81.15
Total return		20.13	%		2.83	%		7.54	%		26.53	%		16.53	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	983,820		$	733,417		$	917,854		$	895,493		$	917,039
Ratio of expenses to average net assets		0.44	%		0.44	%		0.43	%		0.45	%		0.46	%
Ratio of net investment income to average net assets		1.55	%		1.54	%		1.37	%		1.37	%		1.69	%
Portfolio turnover ratec		10	%		7	%		6	%		6	%		7	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 71

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI KLD 400 Social ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	76.44		$	77.09		$	70.16		$	59.39		$	51.54
Income from investment operations:
Net investment incomea		1.22			1.17			1.04			0.95			0.90
Net realized and unrealized gain (loss)b		11.54			(0.62	)		6.89			10.72			7.86
Total from investment operations		12.76			0.55			7.93			11.67			8.76
Less distributions from:
Net investment income		(1.18	)		(1.20	)		(1.00	)		(0.90	)		(0.91	)
Total distributions		(1.18	)		(1.20	)		(1.00	)		(0.90	)		(0.91	)
Net asset value, end of year	$	88.02		$	76.44		$	77.09		$	70.16		$	59.39
Total return		16.83	%		0.75	%		11.34	%		19.76	%		17.25	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	822,945		$	500,677		$	431,703		$	350,800		$	210,836
Ratio of expenses to average net assets		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assets		1.49	%		1.55	%		1.39	%		1.45	%		1.71	%
Portfolio turnover ratec		10	%		16	%		14	%		13	%		11	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

72 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI USA ESG Select ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	85.12		$	86.39		$	78.49		$	67.40		$	60.98
Income from investment operations:
Net investment incomea		1.41			1.32			1.08			1.01			1.04
Net realized and unrealized gain (loss)b		14.57			(1.29	)		7.89			11.12			6.42
Total from investment operations		15.98			0.03			8.97			12.13			7.46
Less distributions from:
Net investment income		(1.38	)		(1.30	)		(1.07	)		(1.04	)		(1.04	)
Total distributions		(1.38	)		(1.30	)		(1.07	)		(1.04	)		(1.04	)
Net asset value, end of year	$	99.72		$	85.12		$	86.39		$	78.49		$	67.40
Total return		18.92	%		0.07	%		11.46	%		18.12	%		12.45	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	528,509		$	357,511		$	328,277		$	255,081		$	208,935
Ratio of expenses to average net assets		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of net investment income to average net assets		1.53	%		1.58	%		1.29	%		1.38	%		1.71	%
Portfolio turnover ratec		19	%		20	%		19	%		20	%		34	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 73

Notes to Financial Statements

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification Classification
U.S. Basic Materials		Non-diversified
U.S. Consumer Goods		Non-diversified
U.S. Consumer Services		Diversified
U.S. Financial Services		Non-diversified

iShares ETF	Diversification Classification
U.S. Financials		Diversified
U.S. Industrials		Diversified
MSCI KLD 400 Social		Diversified
MSCI USA ESG Select		Diversified

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

• Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

74 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration factors that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.

NOTES TO FINANCIAL STATEMENTS 75

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of April 30, 2017 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated and recorded as a reduction of cost of the related investment and/or reclassified to capital gains. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

On October 11, 2016, BlackRock, Inc. (“BlackRock”) implemented changes required by amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. The Funds may be exposed to additional risks when reinvesting the cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00 and which may be subject to redemption gates or liquidity fees under certain circumstances.

Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of April 30, 2017, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of April 30, 2017 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by

76 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of April 30, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
U.S. Basic Materials
Goldman Sachs & Co.	$	924,235	$	924,235	$	—
State Street Bank & Trust Company		1,210,387		1,210,387		—
	$	2,134,622	$	2,134,622	$	—
U.S. Consumer Goods
Citigroup Global Markets Inc.	$	255,562	$	255,562	$	—
Credit Suisse Securities (USA) LLC		9,226,370		9,226,370		—
Deutsche Bank Securities Inc.		5,852,369		5,852,369		—
Goldman Sachs & Co.		988,053		988,053		—
HSBC Bank PLC		1,603,366		1,603,366		—
JPMorgan Securities LLC		1,292,389		1,292,389		—
Merrill Lynch, Pierce, Fenner & Smith		3,531,717		3,531,717		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		985,084		985,084		—
State Street Bank & Trust Company		1,352,416		1,352,416		—
UBS AG		501,989		501,989		—
UBS Securities LLC		1,545,535		1,545,535		—
Wells Fargo Bank, National Association		370,917		370,917		—
Wells Fargo Securities LLC		186,060		186,060		—
	$	27,691,827	$	27,691,827	$	—

NOTES TO FINANCIAL STATEMENTS 77

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
U.S. Consumer Services
Barclays Capital Inc.	$	156,291	$	156,291	$	—
BNP Paribas New York Branch		323,850		323,850		—
BNP Paribas Prime Brokerage International Ltd.		376,745		376,745		—
Citigroup Global Markets Inc.		41,496		41,496		—
Credit Suisse Securities (USA) LLC		1,616,025		1,616,025		—
Deutsche Bank Securities Inc.		919,416		919,416		—
Goldman Sachs & Co.		2,379,716		2,379,716		—
JPMorgan Securities LLC		1,435,932		1,435,932		—
Merrill Lynch, Pierce, Fenner & Smith		1,112,386		1,112,386		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		5,895,171		5,895,171		—
Scotia Capital (USA) Inc.		297,827		297,827		—
UBS AG		94,005		94,005		—
UBS Securities LLC		66,728		66,728		—
	$	14,715,588	$	14,715,588	$	—
U.S. Financial Services
Deutsche Bank Securities Inc.	$	1,477,896	$	1,477,896	$	—
U.S. Financials
Citigroup Global Markets Inc.	$	3,062,854	$	3,062,854	$	—
Credit Suisse Securities (USA) LLC		771,617		771,617		—
Deutsche Bank Securities Inc.		7,232		7,232		—
Goldman Sachs & Co.		1,168,928		1,168,928		—
JPMorgan Securities LLC		1,219,682		1,219,682		—
Merrill Lynch, Pierce, Fenner & Smith		2,428,960		2,428,960		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		3,882,563		3,882,563		—
Scotia Capital (USA) Inc.		751,754		751,754		—
State Street Bank & Trust Company		5,620,251		5,620,251		—
UBS Securities LLC		220,200		220,200		—
	$	19,134,041	$	19,134,041	$	—
U.S. Industrials
Barclays Capital Inc.	$	788,906	$	788,906	$	—
Citigroup Global Markets Inc.		2,540,312		2,540,312		—
Goldman Sachs & Co.		1,353,138		1,353,138		—
JPMorgan Securities LLC		3,776,762		3,776,762		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		1,252,943		1,252,943		—
State Street Bank & Trust Company		925,321		925,321		—
UBS Securities LLC		171,050		171,050		—
	$	10,808,432	$	10,808,432	$	—

78 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
MSCI KLD 400 Social
Barclays Capital Inc.	$	812	$	812	$	—
Citigroup Global Markets Inc.		1,602,533		1,602,533		—
Credit Suisse Securities (USA) LLC		644,554		644,554		—
Deutsche Bank Securities Inc.		34,714		34,714		—
Goldman Sachs & Co.		1,589,997		1,589,997		—
HSBC Bank PLC		720,549		720,549		—
JPMorgan Securities LLC		1,010,236		1,010,236		—
Merrill Lynch, Pierce, Fenner & Smith		6,188		6,188		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		2,690,193		2,690,193		—
National Financial Services LLC		2,048,514		2,048,514		—
Nomura Securities International Inc.		176,256		176,256		—
State Street Bank & Trust Company		146,450		146,450		—
	$	10,670,996	$	10,670,996	$	—
MSCI USA ESG Select
Credit Suisse Securities (USA) LLC	$	168,342	$	168,342	$	—
Goldman Sachs & Co.		929,019		929,019		—
JPMorgan Securities LLC		3,739,347		3,739,347		—
	$	4,836,708	$	4,836,708	$	—

^a  Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

RECENT ACCOUNTING STANDARD

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued a new rule, Investment Company Reporting Modernization, that modernizes and enhances the reporting and disclosure of information by registered investment companies. As part of these changes, the new rule amends Regulation S-X to require standardized, enhanced disclosures related to derivatives and updates to other disclosures in investment company financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is evaluating the impact, if any, of these changes on the Funds’ financial statements.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent Trustees).

NOTES TO FINANCIAL STATEMENTS 79

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

For its investment advisory services to each of the iShares U.S. Basic Materials, iShares U.S. Consumer Goods, iShares U.S. Consumer Services, iShares U.S. Financial Services, iShares U.S. Financials and iShares U.S. Industrials ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on each Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.48	%	First $10 billion
	0.43		Over $10 billion, up to and including $20 billion
	0.38		Over $20 billion, up to and including $30 billion
	0.34		Over $30 billion, up to and including $40 billion
	0.33		Over $40 billion, up to and including $50 billion
	0.31		Over $50 billion

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

iShares ETF	Investment Advisory Fee
MSCI KLD 400 Social		0.50	%
MSCI USA ESG Select		0.50

The SEC has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement, each Fund retains 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.

For the year ended April 30, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
U.S. Basic Materials	$	12,009
U.S. Consumer Goods		170,395
U.S. Consumer Services		51,841
U.S. Financial Services		3,147

iShares ETF	Fees Paid to BTC
U.S. Financials	$	38,999
U.S. Industrials		49,389
MSCI KLD 400 Social		45,904
MSCI USA ESG Select		39,122

80 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended April 30, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
U.S. Basic Materials	$	3,125,919	$	3,135,761
U.S. Consumer Goods		10,792,406		13,717,652
U.S. Consumer Services		10,513,904		7,345,415
U.S. Financial Services		7,011,860		3,283,223
U.S. Financials		9,407,551		3,652,057
U.S. Industrials		19,937,604		26,256,576
MSCI KLD 400 Social		10,454,696		18,614,949
MSCI USA ESG Select		16,134,815		18,367,172

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain trustees and officers of the Trust are also officers of BTC and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended April 30, 2017 were as follows:

iShares ETF	Purchases		Sales
U.S. Basic Materials	$	82,251,685	$	85,041,643
U.S. Consumer Goods		51,112,744		54,167,126
U.S. Consumer Services		64,718,352		64,670,256
U.S. Financial Services		38,343,291		36,421,981
U.S. Financials		91,609,691		92,503,689
U.S. Industrials		92,816,133		91,067,956
MSCI KLD 400 Social		68,831,971		65,412,962
MSCI USA ESG Select		89,877,937		83,512,265

NOTES TO FINANCIAL STATEMENTS 81

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the year ended April 30, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
U.S. Basic Materials	$	1,052,138,727	$	727,463,154
U.S. Consumer Goods		298,300,448		564,915,694
U.S. Consumer Services		187,637,613		582,590,335
U.S. Financial Services		1,093,180,677		464,918,350
U.S. Financials		1,493,574,760		1,255,283,726
U.S. Industrials		737,924,800		642,160,027
MSCI KLD 400 Social		264,664,830		40,095,317
MSCI USA ESG Select		157,522,284		58,257,420

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5. PRINCIPAL RISKS

In the normal course of business, each Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

82 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements(Continued)

iSHARES^® TRUST

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, political and social conditions affecting those market sectors may have a significant impact on its investment performance.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

6. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of April 30, 2017, attributable to the characterization of corporate actions, the expiration of capital loss carryforwards, distributions paid in excess of taxable income and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:

iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
U.S. Basic Materials	$	37,659,738	$	81		$	(37,659,819	)
U.S. Consumer Goods		48,873,924		534,356			(49,408,280	)
U.S. Consumer Services		84,175,022		907,198			(85,082,220	)
U.S. Financial Services		31,730,212		(71	)		(31,730,141	)
U.S. Financials		52,108,614		1,342,342			(53,450,956	)
U.S. Industrials		82,925,083		57			(82,925,140	)
MSCI KLD 400 Social		13,192,345		100			(13,192,445	)
MSCI USA ESG Select		21,000,315		66			(21,000,381	)

NOTES TO FINANCIAL STATEMENTS 83

Notes to Financial Statements(Continued)

iSHARES^® TRUST

The tax character of distributions paid during the years ended April 30, 2017 and April 30, 2016 was as follows:

iShares ETF	2017		2016
U.S. Basic Materials
Ordinary income	$	9,748,115	$	7,139,124
U.S. Consumer Goods
Ordinary income	$	16,041,659	$	15,201,572
U.S. Consumer Services
Ordinary income	$	9,488,256	$	10,136,926
U.S. Financial Service
Ordinary income	$	12,364,655	$	10,698,471
U.S. Financials
Ordinary income	$	27,974,695	$	25,797,288
U.S. Industrials
Ordinary income	$	14,219,187	$	9,662,904
MSCI KLD 400 Social
Ordinary income	$	9,805,524	$	7,482,505
MSCI USA ESG Select
Ordinary income	$	6,710,825	$	5,328,373

As of April 30, 2017, the tax components of accumulated net earnings (losses) were as follows:

iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains  (Losses) a			Total
U.S. Basic Materials	$	1,533,225	$	(112,956,388	)	$	(30,658,091	)	$	(142,081,254	)
U.S. Consumer Goods		—		(15,834,282	)		6,547,303			(9,286,979	)
U.S. Consumer Services		536,347		(22,597,215	)		38,229,705			16,168,837
U.S. Financial Services		1,844,797		(60,229,965	)		87,115,105			28,729,937
U.S. Financials		—		(52,510,524	)		47,664,950			(4,845,574	)
U.S. Industrials		267,491		(17,679,849	)		41,654,984			24,242,626
MSCI KLD 400 Social		235,582		(5,658,368	)		146,183,164			140,760,378
MSCI USA ESG Select		250,889		(6,129,813	)		94,046,126			88,167,202

^a  The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the characterization of corporate actions and the timing and recognition of partnership income.

84 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements(Continued)

iSHARES^® TRUST

As of April 30, 2017, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring  a		Expiring 2018		Expiring 2019		Total
U.S. Basic Materials	$	102,078,857	$	10,812,780	$	64,751	$	112,956,388
U.S. Consumer Goods		3,940,502		11,893,780		—		15,834,282
U.S. Consumer Services		14,467,536		6,983,187		1,146,492		22,597,215
U.S. Financial Services		12,113,737		41,743,037		6,373,191		60,229,965
U.S. Financials		—		52,510,524		—		52,510,524
U.S. Industrials		8,634,018		9,045,831		—		17,679,849
MSCI KLD 400 Social		3,140,225		2,143,183		374,960		5,658,368
MSCI USA ESG Select		—		6,055,688		74,125		6,129,813

^a  Must be utilized prior to losses subjected to expiration.

For the year ended April 30, 2017, the following Funds utilized their capital loss carryforwards as follows:

iShares ETF	Utilized
U.S. Financials	$	2,360,622
MSCI USA ESG Select		3,205,186

Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2017, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

7. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”). The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. The Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit.

8. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

NOTES TO FINANCIAL STATEMENTS 85

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and

Shareholders of the iShares U.S. Basic Materials ETF, iShares U.S. Consumer Goods ETF,

iShares U.S. Consumer Services ETF, iShares U.S. Financial Services ETF, iShares U.S. Financials ETF,

iShares U.S. Industrials ETF, iShares MSCI KLD 400 Social ETF and iShares MSCI USA ESG Select ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares U.S. Basic Materials ETF, iShares U.S. Consumer Goods ETF, iShares U.S. Consumer Services ETF, iShares U.S. Financial Services ETF, iShares U.S. Financials ETF, iShares U.S. Industrials ETF, iShares MSCI KLD 400 Social ETF and iShares MSCI USA ESG Select ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

June 22, 2017

86 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended April 30, 2017:

iShares ETF	Qualified Dividend Income
U.S. Basic Materials	$	13,032,736
U.S. Consumer Goods		15,009,126
U.S. Consumer Services		12,682,949
U.S. Financial Services		17,245,996

iShares ETF	Qualified Dividend Income
U.S. Financials	$	22,131,655
U.S. Industrials		18,261,579
MSCI KLD 400 Social		12,395,223
MSCI USA ESG Select		8,475,720

For corporate shareholders, the percentage of income dividends paid during the fiscal year ended April 30, 2017 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividend- Receivable Deduction
U.S. Basic Materials		100.00	%
U.S. Consumer Goods		100.00
U.S. Consumer Services		100.00
U.S. Financial Services		100.00

iShares ETF	Dividend- Receivable Deduction
U.S. Financials		77.98	%
U.S. Industrials		100.00
MSCI KLD 400 Social		100.00
MSCI USA ESG Select		100.00

TAX INFORMATION 87

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
U.S. Basic Materials	$	1.243939	$	—	$	—	$	1.243939		100	%		—	%		—	%		100	%
U.S. Consumer Goods		2.918066		—		—		2.918066		100			—			—			100
U.S. Consumer Services		1.486251		—		0.122697		1.608948		92			—			8			100
U.S. Financial Services		1.330961		—		0.001328		1.332289		100			—			0	a		100
U.S. Financials		1.552518		—		0.116437		1.668955		93			—			7			100
U.S. Industrials		1.755397		—		—		1.755397		100			—			—			100
MSCI KLD 400 Social		1.165604		—		0.017756		1.183360		98			—			2			100
MSCI USA ESG Select		1.366605		—		0.011206		1.377811		99			—			1			100

^a  Rounds to less than 1%.

Premium/Discount Information

The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of a fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a fund on a given day, generally at the time the NAV is calculated. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of the NAV.

The following information shows the frequency of distributions of premiums and discounts for each of the Funds. The information shown for each Fund is for five calendar years (or from the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

88 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)(Continued)

iSHARES^® TRUST

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares U.S. Basic Materials ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		482		36.52	%
At NAV		310		23.48
Less than 0.0% and Greater than –0.5%		528		40.00
		1,320		100.00	%

iShares U.S. Consumer Goods ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		1		0.08	%
Greater than 0.0% and Less than 0.5%		512		38.79
At NAV		231		17.50
Less than 0.0% and Greater than –0.5%		576		43.63
		1,320		100.00	%

iShares U.S. Consumer Services ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		491		37.20	%
At NAV		262		19.85
Less than 0.0% and Greater than –0.5%		567		42.95
		1,320		100.00	%

iShares U.S. Financial Services ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		615		46.59	%
At NAV		220		16.67
Less than 0.0% and Greater than –0.5%		485		36.74
		1,320		100.00	%

SUPPLEMENTAL INFORMATION 89

Supplemental Information (Unaudited)(Continued)

iSHARES^® TRUST

iShares U.S. Financials ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		571		43.26	%
At NAV		240		18.18
Less than 0.0% and Greater than –0.5%		509		38.56
		1,320		100.00	%

iShares U.S. Industrials ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		1		0.08	%
Greater than 0.0% and Less than 0.5%		612		46.36
At NAV		245		18.56
Less than 0.0% and Greater than –0.5%		462		35.00
		1,320		100.00	%

iShares MSCI KLD 400 Social ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		838		63.49	%
At NAV		148		11.21
Less than 0.0% and Greater than –0.5%		334		25.30
		1,320		100.00	%

iShares MSCI USA ESG Select ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		751		56.89	%
At NAV		191		14.47
Less than 0.0% and Greater than –0.5%		378		28.64
		1,320		100.00	%

90 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 334 funds (as of April 30, 2017) within the Exchange-Traded Fund Complex. Drew E. Lawton, from October 2016 to June 2017, and Richard L. Fagnani, from April 2017 to June 2017, served as Advisory Board Members for iShares Trust, iShares, Inc. and iShares U.S. ETF Trust with respect to all funds within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small and Benjamin Archibald, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Wiedman, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

Interested Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Robert S. Kapitoa (60)	Trustee (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).	Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedmanb (46)	Trustee (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Director of iShares, Inc. (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^a  Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

^b  Mark K. Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

TRUSTEE AND OFFICER INFORMATION 91

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Cecilia H. Herbert (68)	Trustee (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School.	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2016); Trustee of Forward Funds (17 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (61)	Trustee (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (62)	Trustee (since 2017).	Retired; Partner, KPMG LLP (2002-2016).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
Charles A. Hurty (73)	Trustee (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (61)	Trustee (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).
Drew E. Lawton (58)	Trustee (since 2017).	Senior Managing Director of New York Life Insurance Company (2010-2015).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (55)	Trustee (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

92 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Madhav V. Rajan (52)	Trustee (since 2011); Equity Plus Committee Chair and 15(c) Committee Chair (since 2016).	Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013): Secretary of the BlackRock-advised Mutual Funds (since 2012).
Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).
Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).
Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

^c  Manish Mehta served as President until October 15, 2016.

TRUSTEE AND OFFICER INFORMATION 93

Notes:

94 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold, or promoted by S&P Dow Jones Indices, LLC or MSCI Inc., nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds’ website.

©2017 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-402-0417

APRIL 30, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares Core Dividend Growth ETF  |  DGRO  |  NYSE Arca

^Ø  iShares Core High Dividend ETF  |  HDV  |  NYSE Arca

^Ø  iShares International Select Dividend ETF  |  IDV  |  NYSE Arca

^Ø  iShares Select Dividend ETF  |  DVY  |  NYSE Arca

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	14
Shareholder Expenses	14
Schedules of Investments	15
iShares Core Dividend Growth ETF	15
iShares Core High Dividend ETF	23
iShares International Select Dividend ETF	26
iShares Select Dividend ETF	29
Financial Statements	33
Financial Highlights	39
Notes to Financial Statements	43
Report of Independent Registered Public Accounting Firm	55
Tax Information	56
Supplemental Information	57
Trustee and Officer Information	61

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended April 30, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 15.14% in U.S. dollar terms for the reporting period.

The broad rise in global equity markets was driven in part by increased economic stimulus actions from many of the world’s central banks, including expanded quantitative easing measures and negative interest rates. Other positive factors included a recovery in energy and commodities prices, as well as signs of stabilization in the Chinese economy. Global equity markets also faced a heightened level of volatility, particularly during the first half of the reporting period. For example, the affirmative vote on the United Kingdom’s “Brexit” referendum to leave the European Union, terrorist attacks in France, and an attempted coup in Turkey all contributed to an increase in volatility during the summer of 2016.

The bulk of the advance in global stocks, however, occurred during the last half of the reporting period, following the outcome of the U.S. presidential election in November 2016. The new presidential administration was expected to enact pro-business policies, including lower taxes, decreased regulation, and increased fiscal spending, aimed at stimulating U.S. economic growth. These expectations drove a strong global equity market advance that extended through the end of the reporting period, even as uncertainty emerged regarding how quickly the new administration would be able to implement its new policies.

The U.S. equity market returned the strongest performance among developed markets, returning approximately 18% for the reporting period. Despite robust employment growth and healthy consumer spending levels, the U.S. economy grew by 2.0% in 2016 — its slowest calendar-year growth rate since 2011. Nonetheless, U.S. stocks rose sharply based on the post-election optimism about the economy’s future prospects. U.S. stocks remained on a positive trajectory despite two short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the last half of the reporting period, which raised the federal funds interest rate target to a range of 0.75% — 1.00%.

Equity markets in the Asia-Pacific region also generated strong returns, gaining approximately 13% in U.S. dollar terms for the reporting period. Hong Kong and Australian stocks were the leading performers, while stock markets in Singapore and New Zealand trailed other markets in the region.

European stock markets returned approximately 11% in U.S. dollar terms for the reporting period. The European Central Bank expanded its quantitative easing measures and maintained a negative interest rate policy, but economic activity across the Continent remained muted. Equity markets in Austria, Spain, and the Netherlands were the top performers, while Denmark was the only European market to decline during the reporting period. In the U.K., the equity market advanced by 20% for the reporting period, but a sharp decline in the British pound in the wake of the “Brexit” vote erased most of those gains, resulting in a 6% return in U.S. dollar terms.

Emerging markets stocks outperformed developed markets, increasing by more than 19% in U.S. dollar terms for the reporting period. Many emerging economies stabilized after several years of slowing growth as commodities prices decreased and export demand began to recover. Emerging markets in Asia generated the strongest returns, led by Taiwan and China, while stock markets in the Middle East trailed broad emerging markets indexes.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® CORE DIVIDEND GROWTH ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		17.78%		17.78%		17.83%		17.78%		17.78%		17.83%
Since Inception		9.91%		9.92%		9.94%		31.39%		31.43%		31.50%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/10/14. The first day of secondary market trading was 6/12/14.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,142.40	$	0.42	$	1,000.00	$	1,024.40	$	0.40		0.08%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CORE DIVIDEND GROWTH ETF

The iShares Core Dividend Growth ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends, as represented by the Morningstar^® U.S. Dividend Growth Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 17.78%, net of fees, while the total return for the Index was 17.83%.

As represented by the Index, U.S. stocks with a history of consistently growing dividends performed well for the reporting period but slightly trailed the broader U.S. equity market.

The leading contribution to the Index’s performance during the reporting period came from the information technology sector. U.S. technology company profits were strong during the reporting period as these companies benefited from investors’ expectations for growth in innovative areas like virtual reality and technology products with wireless connectivity. The software and services industry was the main source of strength during the reporting period, followed by the technology hardware and semiconductors and semiconductor equipment industries.

Financials stocks also contributed significantly to the Index’s performance during the reporting period. Bank stocks led the gains in the financials sector, driven in large measure by a rising interest rate environment, which generally leads to higher net interest margins for banks. Bank stocks also benefited from expectations for reduced industry regulation under a new U.S. presidential administration. The insurance industry was another source of strength during the reporting period, led by life and health insurance and property and casualty insurance companies.

The industrials sector was also a meaningful contributor to the Index’s performance for the reporting period. Industrials stocks generally benefited from the outcome of the U.S. presidential election in November 2016, which resulted in expectations for increased government spending on infrastructure and defense. This was reflected in gains in the aerospace and defense, machinery, industrial conglomerates, and road and rail industries, which led the sector’s advance.

ALLOCATION BY SECTOR As of 4/30/17

Sector Percentage of
Total  Investments*

Information Technology	17.54	%
Health Care	15.84
Financials	14.94
Consumer Staples	14.18
Industrials	13.81
Consumer Discretionary	11.30
Materials	4.29
Utilities	4.16
Energy	3.90
Telecommunication Services	0.03
Real Estate	0.01
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 4/30/17

Security Percentage of
Total  Investments*

Microsoft Corp.	3.13	%
Apple Inc.	3.06
Exxon Mobil Corp.	3.01
Johnson & Johnson	2.79
Pfizer Inc.	2.76
Procter & Gamble Co. (The)	2.63
JPMorgan Chase & Co.	2.59
Wells Fargo & Co.	2.51
Coca-Cola Co. (The)	2.20
Cisco Systems Inc.	2.07
TOTAL	26.75	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® CORE HIGH DIVIDEND ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.22%		9.14%		9.28%		9.22%		9.14%		9.28%
5 Years		11.31%		11.30%		11.56%		70.85%		70.80%		72.81%
Since Inception		12.23%		12.23%		12.54%		101.93%		101.87%		105.35%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 3/29/11. The first day of secondary market trading was 3/31/11.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,067.80	$	0.41	$	1,000.00	$	1,024.40	$	0.40		0.08%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CORE HIGH DIVIDEND ETF

The iShares Core High Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities, as represented by the Morningstar^® Dividend Yield Focus Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 9.22%, net of fees, while the total return for the Index was 9.28%.

As represented by the Index, U.S. stocks with a history of paying relatively high dividends performed well for the reporting period but trailed the broader U.S. equity market. Stocks with high dividend yields attracted strong demand early in the reporting period from income-oriented investors in a low interest rate environment. But they were comparatively less attractive towards the end of the reporting period, when interest rates rose and investors showed a preference for more economically sensitive, growth-oriented stocks.

The leading contribution to the Index’s performance during the reporting period came from the consumer staples sector, reflecting these stocks’ comparatively generous dividend yields. Within the sector, the tobacco and household products industries were significant contributors to performance for the reporting period. Tobacco stocks benefited from improving employment and rising consumer confidence, while household products companies were supported by steady demand for their essential products as well as solid dividend payouts.

Information technology stocks also contributed significantly to the Index’s performance during the reporting period. U.S. technology company profits were strong during the reporting period, as these companies benefited from investors’ expectations for growth in innovative areas like virtual reality and technology products with wireless connectivity.

The healthcare sector was another meaningful contributor to the Index’s performance for the reporting period, led by the pharmaceuticals industry. Although pharmaceuticals companies faced uncertainty about potential regulations regarding drug pricing, the outlook for the industry improved, partly due to potential tax reform surrounding the repatriation of cash from outside of the U.S.

The telecommunication services, financials, and real estate sectors detracted modestly from the Index’s performance for the reporting period.

ALLOCATION BY SECTOR As of 4/30/17

Sector Percentage of
Total  Investments*

Consumer Staples	23.87	%
Energy	16.29
Health Care	15.61
Telecommunication Services	13.64
Information Technology	12.06
Industrials	7.22
Utilities	6.30
Consumer Discretionary	3.73
Financials	1.28
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 4/30/17

Security Percentage of
Total  Investments*

Exxon Mobil Corp.	8.46	%
AT&T Inc.	7.71
Verizon Communications Inc.	5.94
Johnson & Johnson	5.83
Chevron Corp.	5.37
Pfizer Inc.	5.14
Procter & Gamble Co. (The)	4.48
Philip Morris International Inc.	4.40
Coca-Cola Co. (The)	3.75
Cisco Systems Inc.	3.52
TOTAL	54.60	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.47%		11.53%		11.63%		11.47%		11.53%		11.63%
5 Years		5.23%		5.19%		5.44%		29.03%		28.76%		30.30%
Since Inception		0.69%		0.69%		0.83%		7.07%		7.06%		8.52%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/11/07. The first day of secondary market trading was 6/15/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,109.70	$	2.62	$	1,000.00	$	1,022.30	$	2.51		0.50%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

The iShares International Select Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets, as represented by the Dow Jones EPAC Select Dividend Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 11.47%, net of fees, while the total return for the Index was 11.63%.

As represented by the Index, relatively high dividend paying international stocks performed well for the reporting period and was in line with the broad international equity markets. These stocks benefited from relatively attractive valuations and strong investor demand for yield, particularly when compared with record low interest rates on many developed country government bonds.

Looking at the Index’s performance by country, Australia contributed the most during the reporting period. Two interest rate cuts by the Reserve Bank of Australia, a recovery in commodities prices, and a record trade surplus helped the country’s economy rebound after contracting in the third quarter of 2016. Finland, the United Kingdom, Hong Kong, and France also contributed to the Index’s performance. No single country detracted meaningfully from the Index’s performance during the reporting period, although a handful detracted fractionally, including New Zealand and the Netherlands.

In terms of the Index’s performance by sector, high dividend paying stocks in the financials sector, which made up more than 30% of the Index on average during the reporting period, contributed the most to the Index’s return, led by the banking industry. The economically sensitive industrials and materials sectors were also significant contributors to the Index’s performance. Telecommunication services was the only sector to detract from the Index’s performance during the reporting period.

Looking at currency effects, the U.S. dollar gained against the Australian dollar, the British pound, and the euro during the reporting period, negatively impacting the Index’s performance in U.S. dollar terms. A stronger U.S. dollar means assets denominated in foreign currencies are worth less when translated back into U.S. dollars.

ALLOCATION BY SECTOR As of 4/30/17

Sector Percentage of
Total  Investments*

Financials	31.90	%
Utilities	11.89
Consumer Discretionary	11.20
Telecommunication Services	9.90
Energy	9.45
Industrials	8.09
Health Care	6.53
Consumer Staples	4.65
Materials	3.25
Information Technology	2.46
Real Estate	0.68
TOTAL	100.00	%

TEN LARGEST COUNTRIES As of 4/30/17

Country Percentage of
Total  Investments*

United Kingdom	23.55	%
Australia	16.54
France	10.42
Italy	7.67
Canada	6.26
Finland	5.25
New Zealand	4.56
Sweden	3.90
Hong Kong	3.90
Spain	3.83
TOTAL	85.88	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® SELECT DIVIDEND ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.12%		15.12%		15.60%		15.12%		15.12%		15.60%
5 Years		13.77%		13.77%		14.19%		90.64%		90.63%		94.17%
10 Years		6.03%		6.03%		6.63%		79.66%		79.56%		89.96%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,106.00	$	2.04	$	1,000.00	$	1,022.90	$	1.96		0.39%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® SELECT DIVIDEND ETF

The iShares Select Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities, as represented by the Dow Jones U.S. Select Dividend Index^TM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 15.12%, net of fees, while the total return for the Index was 15.60%.

As represented by the Index, U.S. stocks with a history of paying relatively high dividends performed well for the reporting period but trailed the broader U.S. equity market. Stocks with high dividend yields attracted strong demand early in the reporting period from income-oriented investors in a low interest rate environment. But they were comparatively less attractive towards the end of the reporting period, when interest rates rose and investors showed a preference for more economically sensitive, growth oriented stocks.

The leading contribution to the Index’s performance during the reporting period came from the utilities sector, reflecting these stocks’ generous dividend yields. The sector rallied on optimism about the new U.S. presidential administration’s promises to deregulate utilities and ease environmental regulations. Utilities stocks also benefited from declining cost of capital during the reporting period, spurring plans for capital investment in facilities. Electric utilities were the main sources of strength for the reporting period, followed by multi-utilities.

The financials sector also contributed significantly to the Index’s performance during the reporting period. Banks and diversified financial services companies led the gains in the sector, driven in large measure by a rising interest rate environment, which generally leads to higher net interest margins for banks.

The materials and industrials sectors were also contributors to the Index’s performance for the reporting period. Materials stocks were helped by higher commodities prices and an increase in global manufacturing activity. Industrials stocks generally benefited from the outcome of the U.S. presidential election in November 2016, which resulted in expectations for increased government spending on infrastructure and defense.

ALLOCATION BY SECTOR As of 4/30/17

Sector Percentage of
Total  Investments*

Utilities	29.35	%
Consumer Discretionary	15.89
Financials	13.80
Industrials	10.59
Energy	8.91
Consumer Staples	8.54
Materials	6.38
Health Care	2.63
Telecommunication Services	2.23
Information Technology	1.68
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 4/30/17

Security Percentage of
Total  Investments*

Lockheed Martin Corp.	3.77	%
CME Group Inc.	2.86
Chevron Corp.	2.16
Philip Morris International Inc.	2.16
McDonald’s Corp.	2.11
NextEra Energy Inc.	2.08
Kimberly-Clark Corp.	1.96
Entergy Corp.	1.86
DTE Energy Co.	1.77
Sempra Energy	1.76
TOTAL	22.49	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

About Fund Performance

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on November 1, 2016 and held through April 30, 2017, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CORE DIVIDEND GROWTH ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.79%
AEROSPACE & DEFENSE — 3.96%
Boeing Co. (The)		100,744	$	18,620,514
BWX Technologies Inc.		4,409		216,791
General Dynamics Corp.		25,727		4,985,635
HEICO Corp.		368		26,154
HEICO Corp. Class A		615		37,699
Huntington Ingalls Industries Inc.		2,934		589,411
L3 Technologies Inc.		7,932		1,362,480
Lockheed Martin Corp.		38,419		10,352,000
Northrop Grumman Corp.		14,626		3,597,411
Raytheon Co.		31,526		4,893,150
United Technologies Corp.		100,193		11,921,965
				56,603,210
AIR FREIGHT & LOGISTICS — 1.22%
CH Robinson Worldwide Inc.		18,332		1,332,736
Expeditors International of Washington Inc.		14,504		813,529
FedEx Corp.		11,525		2,186,293
United Parcel Service Inc. Class B		122,474		13,161,056
				17,493,614
AIRLINES — 0.10%
Southwest Airlines Co.		24,676		1,387,285
				1,387,285
AUTO COMPONENTS — 0.15%
Autoliv Inc.		11,415		1,143,669
Gentex Corp.		27,469		567,235
Lear Corp.		3,295		470,064
				2,180,968
AUTOMOBILES — 0.12%
Harley-Davidson Inc.		24,936		1,416,614
Thor Industries Inc.		3,530		339,516
				1,756,130
BANKS — 7.72%
Associated Banc-Corp.		16,589		413,066
Bank of the Ozarks Inc.		6,510		309,030
BB&T Corp.		114,415		4,940,440
BOK Financial Corp.		2,672		225,223
Chemical Financial Corp.		8,276		392,696
Columbia Banking System Inc.		7,455		294,547
Comerica Inc.		12,615		891,881
Commerce Bancshares Inc./MO		7,451		409,432
Community Bank System Inc.		5,659		316,621
Cullen/Frost Bankers Inc.		7,571		714,627

Security	Shares		Value
First Financial Bankshares Inc.		6,381	$	254,921
First Horizon National Corp.		18,958		347,879
First Republic Bank/CA		5,837		539,689
Home BancShares Inc./AR		8,939		227,498
Hope Bancorp Inc.		16,742		306,546
Huntington Bancshares Inc./OH		138,899		1,786,241
Independent Bank Corp./ Rockland MA		2,766		175,088
JPMorgan Chase & Co.		425,514		37,019,718
KeyCorp		110,065		2,007,586
LegacyTexas Financial Group Inc.		3,588		135,662
MB Financial Inc.		6,892		292,979
Old National Bancorp./IN		22,443		377,042
People’s United Financial Inc.		64,815		1,132,318
PNC Financial Services Group Inc. (The)a		47,338		5,668,725
Prosperity Bancshares Inc.		7,270		488,544
Simmons First National Corp. Class A		2,808		153,457
South State Corp.		2,038		179,650
SunTrust Banks Inc.		48,803		2,772,498
TowneBank/Portsmouth VA		5,347		173,510
U.S. Bancorp.		183,945		9,432,700
UMB Financial Corp.		3,334		241,682
Umpqua Holdings Corp.		44,114		779,494
Union Bankshares Corp.		5,508		188,594
Webster Financial Corp.		9,636		489,605
Wells Fargo & Co.		665,431		35,826,805
WesBanco Inc.		5,617		223,613
Westamerica Bancorp.		4,140		227,783
				110,357,390
BEVERAGES — 4.18%
Brown-Forman Corp. Class A		4,979		239,291
Brown-Forman Corp. Class B		15,805		747,892
Coca-Cola Co. (The)		729,092		31,460,320
Dr Pepper Snapple Group Inc.		23,334		2,138,561
PepsiCo Inc.		222,429		25,196,757
				59,782,821
BIOTECHNOLOGY — 2.89%
AbbVie Inc.		360,019		23,739,653
Amgen Inc.		107,840		17,612,429
				41,352,082
BUILDING PRODUCTS — 0.44%
AO Smith Corp.		9,427		507,927
Apogee Enterprises Inc.		1,664		90,688

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Continued)

iSHARES^® CORE DIVIDEND GROWTH ETF

April 30, 2017

Security	Shares		Value
Johnson Controls International PLC		129,124	$	5,367,685
Lennox International Inc.		2,352		388,997
				6,355,297
CAPITAL MARKETS — 3.03%
Ameriprise Financial Inc.		19,674		2,515,321
Bank of New York Mellon Corp. (The)		92,668		4,360,956
BlackRock Inc.a		16,407		6,309,640
CBOE Holdings Inc.		6,686		550,993
CME Group Inc.		37,471		4,353,755
Cohen & Steers Inc.		3,193		127,401
Eaton Vance Corp. NVS		15,491		665,029
Evercore Partners Inc. Class A		3,746		276,268
FactSet Research Systems Inc.		2,546		415,660
Franklin Resources Inc.		36,711		1,582,611
Goldman Sachs Group Inc. (The)		21,794		4,877,497
Invesco Ltd.		79,552		2,620,443
Janus Capital Group Inc.		28,770		392,998
Legg Mason Inc.		11,765		439,776
MarketAxess Holdings Inc.		1,479		284,737
Moody’s Corp.		12,715		1,504,439
Morningstar Inc.		1,178		86,147
Northern Trust Corp.		20,836		1,875,240
S&P Global Inc.		18,321		2,458,495
SEI Investments Co.		8,308		421,299
State Street Corp.		38,547		3,234,093
T Rowe Price Group Inc.		41,796		2,962,918
TD Ameritrade Holding Corp.		25,247		966,203
				43,281,919
CHEMICALS — 3.42%
Air Products & Chemicals Inc.		30,378		4,268,109
Albemarle Corp.		7,584		825,973
Ashland Global Holdings Inc.		4,560		563,160
Balchem Corp.		876		71,096
Cabot Corp.		7,290		438,785
Celanese Corp. Series A		12,944		1,126,646
Dow Chemical Co. (The)		183,681		11,535,167
Eastman Chemical Co.		21,624		1,724,514
Ecolab Inc.		17,693		2,283,989
FMC Corp.		8,608		630,364
HB Fuller Co.		3,414		180,362
International Flavors & Fragrances Inc.		9,236		1,280,017
LyondellBasell Industries NV Class A		70,733		5,995,329

Security	Shares		Value
Monsanto Co.		46,954	$	5,475,306
NewMarket Corp.		775		364,793
PolyOne Corp.		7,589		297,565
PPG Industries Inc.		21,833		2,398,137
Praxair Inc.		40,832		5,103,183
Quaker Chemical Corp.		789		114,089
RPM International Inc.		16,901		888,317
Scotts Miracle-Gro Co. (The) Class A		5,521		533,329
Sensient Technologies Corp.		3,939		322,210
Sherwin-Williams Co. (The)		4,999		1,673,065
Valspar Corp. (The)		5,546		623,592
Westlake Chemical Corp.		2,515		156,559
				48,873,656
COMMERCIAL SERVICES & SUPPLIES — 0.57%
ABM Industries Inc.		5,039		217,635
Brady Corp. Class A		5,626		219,133
Cintas Corp.		4,336		531,030
Healthcare Services Group Inc.		7,424		340,836
Herman Miller Inc.		7,424		245,734
HNI Corp.		5,842		273,172
Matthews International Corp. Class A		1,877		128,668
MSA Safety Inc.		3,281		255,426
Republic Services Inc.		26,816		1,689,140
Rollins Inc.		6,916		268,548
Steelcase Inc. Class A		14,107		240,524
Waste Management Inc.		52,071		3,789,727
				8,199,573
COMMUNICATIONS EQUIPMENT — 2.30%
Cisco Systems Inc.		866,364		29,517,021
Harris Corp.		13,538		1,514,767
Motorola Solutions Inc.		21,770		1,871,567
				32,903,355
CONSUMER FINANCE — 0.54%
American Express Co.		69,390		5,499,158
Discover Financial Services		36,599		2,290,731
				7,789,889
CONTAINERS & PACKAGING — 0.47%
AptarGroup Inc.		5,986		480,676
Avery Dennison Corp.		10,404		865,717
Bemis Co. Inc.		12,954		582,023
Packaging Corp. of America		14,493		1,431,619
Silgan Holdings Inc.		2,457		148,943

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CORE DIVIDEND GROWTH ETF

April 30, 2017

Security	Shares		Value
Sonoco Products Co.		15,750	$	823,882
WestRock Co.		44,282		2,371,744
				6,704,604
DISTRIBUTORS — 0.18%
Core-Mark Holding Co. Inc.		2,965		103,834
Genuine Parts Co.		23,757		2,186,119
Pool Corp.		2,486		297,376
				2,587,329
DIVERSIFIED CONSUMER SERVICES — 0.05%
DeVry Education Group Inc.		3,641		137,812
Service Corp. International/U.S.		17,966		578,864
				716,676
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.01%
ATN International Inc.		1,272		88,010
				88,010
ELECTRIC UTILITIES — 2.10%
ALLETE Inc.		9,319		651,491
Alliant Energy Corp.		42,378		1,666,303
Edison International		51,267		4,099,822
El Paso Electric Co.		5,995		309,342
Eversource Energy		59,328		3,524,083
IDACORP Inc.		7,875		665,595
MGE Energy Inc.		3,823		245,819
NextEra Energy Inc.		80,338		10,729,943
Pinnacle West Capital Corp.		20,335		1,730,305
PNM Resources Inc.		12,081		450,017
Portland General Electric Co.		14,649		664,186
Westar Energy Inc.		22,564		1,174,005
Xcel Energy Inc.		90,776		4,089,459
				30,000,370
ELECTRICAL EQUIPMENT — 1.16%
AZZ Inc.		1,770		104,519
Eaton Corp. PLC		80,782		6,110,350
Emerson Electric Co.		117,228		7,066,504
Hubbell Inc.		6,807		770,076
Regal Beloit Corp.		3,373		265,961
Rockwell Automation Inc.		14,450		2,273,707
				16,591,117
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.59%
Amphenol Corp. Class A		15,855		1,146,475
AVX Corp.		7,728		130,680
Corning Inc.		118,109		3,407,445
FLIR Systems Inc.		12,784		469,556

Security	Shares		Value
Littelfuse Inc.		1,078	$	166,174
TE Connectivity Ltd.		39,819		3,080,796
				8,401,126
ENERGY EQUIPMENT & SERVICES — 0.04%
Core Laboratories NV		5,024		556,760
				556,760
FOOD & STAPLES RETAILING — 3.50%
Casey’s General Stores Inc.		1,961		219,769
Costco Wholesale Corp.		26,913		4,777,596
CVS Health Corp.		143,254		11,809,860
Kroger Co. (The)		86,656		2,569,350
Sysco Corp.		71,039		3,755,832
Wal-Mart Stores Inc.		244,182		18,357,603
Walgreens Boots Alliance Inc.		84,998		7,355,727
Whole Foods Market Inc.		34,439		1,252,546
				50,098,283
FOOD PRODUCTS — 1.75%
Archer-Daniels-Midland Co.		94,119		4,305,944
Bunge Ltd.		16,533		1,306,603
General Mills Inc.		104,917		6,033,777
Hershey Co. (The)		18,032		1,951,062
Hormel Foods Corp.		29,983		1,051,804
Ingredion Inc.		6,839		846,805
J&J Snack Foods Corp.		1,121		150,864
JM Smucker Co. (The)		14,235		1,803,859
Kellogg Co.		40,193		2,853,703
Lancaster Colony Corp.		1,879		236,566
McCormick & Co. Inc./MD		12,244		1,223,176
Mead Johnson Nutrition Co.		19,524		1,732,169
Tyson Foods Inc. Class A		23,652		1,519,878
				25,016,210
GAS UTILITIES — 0.41%
Atmos Energy Corp.		14,011		1,135,171
National Fuel Gas Co.		13,019		720,992
New Jersey Resources Corp.		13,110		528,989
Northwest Natural Gas Co.		5,369		319,992
South Jersey Industries Inc.		14,770		554,171
Southwest Gas Holdings Inc.		5,851		490,080
Spire Inc.		8,002		548,537
UGI Corp.		19,702		988,252
WGL Holdings Inc.		6,843		564,274
				5,850,458
HEALTH CARE EQUIPMENT & SUPPLIES — 2.51%
Abbott Laboratories		228,521		9,972,656
Baxter International Inc.		27,937		1,555,532

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Continued)

iSHARES^® CORE DIVIDEND GROWTH ETF

April 30, 2017

Security	Shares		Value
Becton Dickinson and Co.		19,102	$	3,571,501
Cantel Medical Corp.		315		23,439
CR Bard Inc.		1,745		536,553
DENTSPLY SIRONA Inc.		6,444		407,518
Hill-Rom Holdings Inc.		3,506		265,194
Medtronic PLC		162,058		13,465,399
ResMed Inc.		15,004		1,020,122
STERIS PLC		7,861		580,142
Stryker Corp.		22,964		3,131,601
West Pharmaceutical Services Inc.		2,698		248,297
Zimmer Biomet Holdings Inc.		9,317		1,114,779
				35,892,733
HEALTH CARE PROVIDERS & SERVICES — 1.88%
AmerisourceBergen Corp.		15,261		1,252,165
Anthem Inc.		23,426		4,167,251
Cardinal Health Inc.		39,380		2,858,594
Chemed Corp.		543		109,349
Humana Inc.		4,475		993,361
McKesson Corp.		9,004		1,245,163
Owens & Minor Inc.		9,840		340,956
Patterson Companies Inc.		10,102		449,438
Quest Diagnostics Inc.		14,230		1,501,407
UnitedHealth Group Inc.		80,144		14,015,583
				26,933,267
HOTELS, RESTAURANTS & LEISURE — 2.88%
Brinker International Inc.		9,007		398,019
Cheesecake Factory Inc. (The)		3,904		250,481
Cracker Barrel Old Country Store Inc.		3,964		634,993
Darden Restaurants Inc.		20,982		1,787,457
Dunkin’ Brands Group Inc.		11,573		646,468
Marriott International Inc./MD Class A		24,677		2,330,002
McDonald’s Corp.		136,051		19,037,616
Royal Caribbean Cruises Ltd.		19,011		2,026,573
Starbucks Corp.		147,968		8,886,958
Texas Roadhouse Inc.		6,700		314,096
Vail Resorts Inc.		4,037		797,953
Wendy’s Co. (The)		22,993		338,917
Wyndham Worldwide Corp.		14,454		1,377,611
Yum! Brands Inc.		35,537		2,336,558
				41,163,702
HOUSEHOLD DURABLES — 0.20%
Leggett & Platt Inc.		21,179		1,112,745
Whirlpool Corp.		9,547		1,772,687
				2,885,432

Security	Shares		Value
HOUSEHOLD PRODUCTS — 3.92%
Church & Dwight Co. Inc.		22,174	$	1,098,278
Clorox Co. (The)		16,974		2,269,254
Colgate-Palmolive Co.		106,534		7,674,709
Kimberly-Clark Corp.		55,978		7,263,146
Procter & Gamble Co. (The)		429,818		37,536,006
WD-40 Co.		1,449		151,928
				55,993,321
INDUSTRIAL CONGLOMERATES — 2.07%
3M Co.		83,679		16,386,858
Carlisle Companies Inc.		4,948		501,678
Honeywell International Inc.		90,515		11,870,137
Roper Technologies Inc.		3,844		840,683
				29,599,356
INSURANCE — 3.54%
Aflac Inc.		54,410		4,074,221
Allied World Assurance Co. Holdings AG		9,691		514,495
Allstate Corp. (The)		37,602		3,056,667
American Equity Investment Life Holding Co.		2,309		54,769
American Financial Group Inc./OH		5,495		534,718
AmTrust Financial Services Inc.		18,940		303,987
Aon PLC		16,917		2,027,333
Arthur J Gallagher & Co.		27,468		1,532,989
Aspen Insurance Holdings Ltd.		5,529		289,443
Assurant Inc.		6,726		647,310
Assured Guaranty Ltd.		9,567		364,790
Axis Capital Holdings Ltd.		11,158		735,312
Brown & Brown Inc.		8,194		351,523
Chubb Ltd.		53,119		7,290,583
Cincinnati Financial Corp.		22,420		1,616,258
CNO Financial Group Inc.		2,808		59,165
Erie Indemnity Co. Class A		2,769		342,858
FBL Financial Group Inc. Class A		1,497		99,550
First American Financial Corp.		22,517		977,463
FNF Group		41,173		1,686,034
Horace Mann Educators Corp.		5,971		230,779
Lincoln National Corp.		21,435		1,413,210
Marsh & McLennan Companies Inc.		54,395		4,032,301
Primerica Inc.		1,761		147,572
Principal Financial Group Inc.		41,325		2,691,497
Prudential Financial Inc.		65,728		7,034,868
Reinsurance Group of America Inc.		4,652		581,686

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CORE DIVIDEND GROWTH ETF

April 30, 2017

Security	Shares		Value
RenaissanceRe Holdings Ltd.		789	$	112,172
RLI Corp.		3,020		172,804
Torchmark Corp.		4,462		342,280
Travelers Companies Inc. (The)		35,018		4,260,290
Unum Group		21,341		988,728
Validus Holdings Ltd.		10,824		598,351
WR Berkley Corp.		4,020		273,280
XL Group Ltd.		29,836		1,248,637
				50,687,923
INTERNET & DIRECT MARKETING RETAIL — 0.05%
Expedia Inc.		5,711		763,675
				763,675
INTERNET SOFTWARE & SERVICES — 0.03%
j2 Global Inc.		4,791		432,340
				432,340
IT SERVICES — 4.05%
Accenture PLC Class A		68,516		8,310,991
Automatic Data Processing Inc.		55,850		5,835,766
Booz Allen Hamilton Holding Corp.		15,907		571,539
Broadridge Financial Solutions Inc.		12,967		906,912
Convergys Corp.		9,062		203,986
Fidelity National Information Services Inc.		23,592		1,986,210
International Business Machines Corp.		151,584		24,297,399
Jack Henry & Associates Inc.		5,787		560,876
MasterCard Inc. Class A		42,296		4,919,871
Paychex Inc.		53,232		3,155,593
Visa Inc. Class A		78,012		7,116,255
				57,865,398
LEISURE PRODUCTS — 0.15%
Hasbro Inc.		13,298		1,317,965
Polaris Industries Inc.		9,000		767,340
				2,085,305
MACHINERY — 2.55%
Albany International Corp. Class A		2,510		122,362
Barnes Group Inc.		2,944		161,832
Caterpillar Inc.		109,651		11,212,911
Cummins Inc.		23,782		3,589,655
Donaldson Co. Inc.		11,828		547,400
Dover Corp.		20,098		1,585,330
Flowserve Corp.		12,229		622,089
Franklin Electric Co. Inc.		2,075		85,282
Graco Inc.		4,883		526,632

Security	Shares		Value
Hillenbrand Inc.		8,182	$	301,916
IDEX Corp.		6,362		666,483
Illinois Tool Works Inc.		34,296		4,735,935
Ingersoll-Rand PLC		29,706		2,636,407
ITT Inc.		5,993		252,485
Kennametal Inc.		9,512		395,509
Lincoln Electric Holdings Inc.		5,690		506,581
Nordson Corp.		2,680		335,536
PACCAR Inc.		28,343		1,891,328
Pentair PLC		22,060		1,423,091
Snap-on Inc.		5,527		925,938
Stanley Black & Decker Inc.		15,653		2,131,156
Toro Co. (The)		7,066		458,725
Trinity Industries Inc.		14,494		389,889
Wabtec Corp./DE		2,471		207,292
Xylem Inc./NY		15,400		791,714
				36,503,478
MARINE — 0.01%
Matson Inc.		5,762		182,655
				182,655
MEDIA — 2.93%
CBS Corp. Class B NVS		22,346		1,487,350
Comcast Corp. Class A		396,949		15,556,431
John Wiley & Sons Inc. Class A		6,075		320,153
Meredith Corp.		6,740		394,627
Omnicom Group Inc.		34,387		2,823,860
Scripps Networks Interactive Inc. Class A		8,275		618,308
Sinclair Broadcast Group Inc. Class A		6,068		239,383
Time Warner Inc.		71,620		7,109,717
Walt Disney Co. (The)		115,868		13,394,341
				41,944,170
METALS & MINING — 0.39%
Compass Minerals International Inc.		7,610		502,260
Kaiser Aluminum Corp.		2,670		225,375
Nucor Corp.		44,698		2,741,328
Reliance Steel & Aluminum Co.		8,639		680,926
Royal Gold Inc.		5,712		403,724
Steel Dynamics Inc.		22,295		805,741
Worthington Industries Inc.		4,080		177,480
				5,536,834

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Continued)

iSHARES^® CORE DIVIDEND GROWTH ETF

April 30, 2017

Security	Shares		Value
MULTI-UTILITIES — 1.44%
Avista Corp.		13,616	$	549,269
Black Hills Corp.		8,427		573,205
CMS Energy Corp.		48,341		2,194,681
DTE Energy Co.		33,527		3,506,589
MDU Resources Group Inc.		32,593		876,752
NiSource Inc.		55,769		1,352,398
NorthWestern Corp.		9,338		558,226
SCANA Corp.		27,403		1,817,093
Sempra Energy		39,515		4,465,985
Vectren Corp.		14,206		844,120
WEC Energy Group Inc.		63,711		3,855,790
				20,594,108
MULTILINE RETAIL — 0.84%
Dillard’s Inc. Class A		836		46,289
Kohl’s Corp.		48,829		1,905,796
Macy’s Inc.		81,827		2,390,985
Target Corp.		137,288		7,667,535
				12,010,605
OIL, GAS & CONSUMABLE FUELS — 3.86%
Exxon Mobil Corp.		525,834		42,934,346
Marathon Petroleum Corp.		85,717		4,366,424
Phillips 66		81,439		6,479,287
Tesoro Corp.		17,416		1,388,229
				55,168,286
PAPER & FOREST PRODUCTS — 0.01%
Neenah Paper Inc.		1,906		149,335
				149,335
PERSONAL PRODUCTS — 0.16%
Estee Lauder Companies Inc. (The) Class A		20,568		1,792,296
Nu Skin Enterprises Inc. Class A		8,031		443,552
				2,235,848
PHARMACEUTICALS — 8.52%
Bristol-Myers Squibb Co.		258,526		14,490,382
Johnson & Johnson		322,743		39,849,078
Merck & Co. Inc.		443,928		27,670,032
Perrigo Co. PLC		6,542		483,716
Pfizer Inc.		1,159,790		39,340,077
				121,833,285
PROFESSIONAL SERVICES — 0.20%
Dun & Bradstreet Corp. (The)		3,927		430,438
Equifax Inc.		6,809		921,326
Insperity Inc.		1,213		110,808

Security	Shares		Value
ManpowerGroup Inc.		6,588	$	665,256
Robert Half International Inc.		14,338		660,265
				2,788,093
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.01%
Jones Lang LaSalle Inc.		1,470		168,844
				168,844
ROAD & RAIL — 1.22%
CSX Corp.		79,305		4,031,866
JB Hunt Transport Services Inc.		4,681		419,698
Kansas City Southern		8,981		808,919
Ryder System Inc.		7,061		479,513
Union Pacific Corp.		104,441		11,693,214
				17,433,210
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.40%
Analog Devices Inc.		44,480		3,389,376
Broadcom Ltd.		42,158		9,308,908
KLA-Tencor Corp.		20,848		2,047,691
Maxim Integrated Products Inc.		46,927		2,071,827
Microchip Technology Inc.		24,122		1,823,141
MKS Instruments Inc.		3,225		252,356
QUALCOMM Inc.		306,744		16,484,422
Texas Instruments Inc.		142,604		11,291,385
Xilinx Inc.		31,649		1,997,368
				48,666,474
SOFTWARE — 4.08%
Activision Blizzard Inc.		21,037		1,099,183
Intuit Inc.		14,929		1,869,260
Microsoft Corp.		651,590		44,607,852
Oracle Corp.		238,828		10,737,707
				58,314,002
SPECIALTY RETAIL — 3.07%
Best Buy Co. Inc.		38,121		1,975,049
Chico’s FAS Inc.		16,993		234,843
DSW Inc. Class A		14,794		305,052
Foot Locker Inc.		10,762		832,333
Gap Inc. (The)		47,216		1,237,059
Group 1 Automotive Inc.		1,430		98,599
Home Depot Inc. (The)		129,504		20,215,574
L Brands Inc.		64,082		3,384,171
Lithia Motors Inc. Class A		1,454		138,930
Lowe’s Companies Inc.		84,366		7,160,986
Monro Muffler Brake Inc.		2,214		114,796
Penske Automotive Group Inc.		5,154		245,897

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CORE DIVIDEND GROWTH ETF

April 30, 2017

Security	Shares		Value
Ross Stores Inc.		18,085	$	1,175,525
Signet Jewelers Ltd.		6,428		423,220
Tiffany & Co.		12,257		1,123,354
TJX Companies Inc. (The)		48,969		3,850,922
Tractor Supply Co.		9,796		606,470
Williams-Sonoma Inc.		13,872		749,782
				43,872,562
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 3.06%
Apple Inc.		304,196		43,697,755
				43,697,755
TEXTILES, APPAREL & LUXURY GOODS — 0.65%
Columbia Sportswear Co.		2,137		120,997
NIKE Inc. Class B		95,618		5,298,193
Ralph Lauren Corp.		7,925		639,706
VF Corp.		59,062		3,226,557
				9,285,453
THRIFTS & MORTGAGE FINANCE — 0.07%
EverBank Financial Corp.		8,319		162,221
Northwest Bancshares Inc.		21,134		341,103
Provident Financial Services Inc.		10,015		257,285
Washington Federal Inc.		9,176		309,231
				1,069,840
TOBACCO — 0.64%
Reynolds American Inc.		142,486		9,190,347
				9,190,347
TRADING COMPANIES & DISTRIBUTORS — 0.28%
Applied Industrial Technologies Inc.		4,082		261,248
Fastenal Co.		40,853		1,825,312
GATX Corp.		6,173		369,763
MSC Industrial Direct Co. Inc. Class A		4,434		396,976
WW Grainger Inc.		5,945		1,145,601
				3,998,900
WATER UTILITIES — 0.20%
American States Water Co.		4,830		215,032
American Water Works Co. Inc.		20,100		1,603,176
Aqua America Inc.		25,172		832,941
California Water Service Group		5,781		206,382
				2,857,531

Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 0.02%
Telephone & Data Systems Inc.		12,499	$	343,223
				343,223
TOTAL COMMON STOCKS
(Cost: $1,320,868,570)				1,427,075,422
SHORT-TERM INVESTMENTS — 0.31%
MONEY MARKET FUNDS — 0.31%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%b,c		4,399,548		4,399,548
				4,399,548
TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,399,548)				4,399,548
TOTAL INVESTMENTS IN SECURITIES — 100.10%
(Cost: $1,325,268,118)d				1,431,474,970
Other Assets, Less Liabilities — (0.10)%				(1,477,762	)
NET ASSETS — 100.00%			$	1,429,997,208

NVS — Non-Voting Shares

^a  Affiliated issuer. See Schedule 1.

^b  Affiliated money market fund.

^c  The rate quoted is the annualized seven-day yield of the fund at period end.

^d  The cost of investments for federal income tax purposes was $1,333,578,798. Net unrealized appreciation was $97,896,172, of which $117,118,192 represented gross unrealized appreciation on securities and $19,222,020 represented gross unrealized depreciation on securities.

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Continued)

iSHARES^® CORE DIVIDEND GROWTH ETF

April 30, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
BlackRock Inc.		6,395		13,490		(3,478	)		16,407	$	6,309,640	$	92,063	$	131,774
PNC Financial Services Group Inc. (The)		22,942		48,727		(24,331	)		47,338		5,668,725		80,322		136,280
										$	11,978,365	$	172,385	$	268,054

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of April 30, 2017 were as follows:

Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
S&P 500 E-Mini		21		Jun. 2017		Chicago Mercantile	$	2,468,655	$	2,499,525	$	30,870

Schedule 3 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,427,075,422	$	—	$	—	$	1,427,075,422
Money market funds		4,399,548		—		—		4,399,548
Total	$	1,431,474,970	$	—	$	—	$	1,431,474,970
Derivative financial instrumentsa:
Assets:
Futures contracts	$	30,870	$	—	$	—	$	30,870
Total	$	30,870	$	—	$	—	$	30,870

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CORE HIGH DIVIDEND ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.84%
AEROSPACE & DEFENSE — 3.45%
Boeing Co. (The)		795,656	$	147,061,099
Lockheed Martin Corp.		303,441		81,762,177
				228,823,276
AIR FREIGHT & LOGISTICS — 1.57%
United Parcel Service Inc. Class B		967,287		103,944,661
				103,944,661
BEVERAGES — 6.75%
Coca-Cola Co. (The)		5,758,180		248,465,467
PepsiCo Inc.		1,756,662		198,994,671
				447,460,138
CAPITAL MARKETS — 0.57%
Cohen & Steers Inc.		26,759		1,067,684
Eaton Vance Corp. NVS		122,574		5,262,102
Federated Investors Inc. Class B		131,722		3,532,784
Janus Capital Group Inc.		227,916		3,113,332
T Rowe Price Group Inc.		330,080		23,399,371
WisdomTree Investments Inc.		173,636		1,449,861
				37,825,134
COMMERCIAL SERVICES & SUPPLIES — 0.12%
KAR Auction Services Inc.		176,431		7,695,920
				7,695,920
COMMUNICATIONS EQUIPMENT — 3.51%
Cisco Systems Inc.		6,842,327		233,118,081
				233,118,081
DISTRIBUTORS — 0.26%
Genuine Parts Co.		187,191		17,225,316
				17,225,316
DIVERSIFIED TELECOMMUNICATION SERVICES — 13.62%
AT&T Inc.		12,880,239		510,443,871
Verizon Communications Inc.		8,560,870		393,029,542
				903,473,413
ELECTRIC UTILITIES — 4.58%
ALLETE Inc.		74,103		5,180,541
Alliant Energy Corp.		334,267		13,143,378
American Electric Power Co. Inc.		796,088		53,998,649
Edison International		404,498		32,347,705
IDACORP Inc.		61,495		5,197,557
NextEra Energy Inc.		634,505		84,744,488
Pinnacle West Capital Corp.		161,175		13,714,381
Portland General Electric Co.		115,926		5,256,085

Security	Shares		Value
PPL Corp.		1,281,294	$	48,830,114
Westar Energy Inc.		178,470		9,285,794
Xcel Energy Inc.		716,172		32,263,549
				303,962,241
ELECTRICAL EQUIPMENT — 1.57%
Eaton Corp. PLC		637,977		48,256,580
Emerson Electric Co.		925,826		55,808,791
				104,065,371
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.08%
AVX Corp.		60,346		1,020,451
National Instruments Corp.		124,602		4,349,856
				5,370,307
FOOD & STAPLES RETAILING — 2.19%
Wal-Mart Stores Inc.		1,928,470		144,982,375
				144,982,375
FOOD PRODUCTS — 1.06%
General Mills Inc.		828,577		47,651,463
Kellogg Co.		318,701		22,627,771
				70,279,234
HOTELS, RESTAURANTS & LEISURE — 2.34%
Cracker Barrel Old Country Store Inc.		31,429		5,034,612
McDonald’s Corp.		1,074,498		150,354,505
				155,389,117
HOUSEHOLD DURABLES — 0.29%
Garmin Ltd.		202,181		10,278,882
Leggett & Platt Inc.		167,431		8,796,825
				19,075,707
HOUSEHOLD PRODUCTS — 5.33%
Kimberly-Clark Corp.		442,102		57,362,734
Procter & Gamble Co. (The)		3,394,594		296,449,894
				353,812,628
INSURANCE — 0.48%
Arthur J Gallagher & Co.		216,373		12,075,777
Cincinnati Financial Corp.		176,973		12,757,984
Erie Indemnity Co. Class A		21,542		2,667,330
Mercury General Corp.		70,244		4,319,304
				31,820,395
IT SERVICES — 3.27%
International Business Machines Corp.		1,197,150		191,891,173
Paychex Inc.		421,918		25,011,299
				216,902,472

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® CORE HIGH DIVIDEND ETF

April 30, 2017

Security	Shares		Value
MACHINERY — 0.43%
Cummins Inc.		187,632	$	28,321,174
				28,321,174
MEDIA — 0.18%
Interpublic Group of Companies Inc. (The)		520,751		12,274,101
				12,274,101
MULTI-UTILITIES — 1.70%
CenterPoint Energy Inc.		749,792		21,391,566
CMS Energy Corp.		380,855		17,290,817
Public Service Enterprise Group Inc.		844,065		37,181,063
Vectren Corp.		111,471		6,623,607
WEC Energy Group Inc.		502,604		30,417,594
				112,904,647
OIL, GAS & CONSUMABLE FUELS — 16.26%
Chevron Corp.		3,334,731		355,815,798
Exxon Mobil Corp.		6,861,381		560,231,759
Marathon Petroleum Corp.		676,385		34,455,052
ONEOK Inc.		423,730		22,292,435
Phillips 66		643,193		51,172,435
Valero Energy Corp.		844,120		54,538,593
				1,078,506,072
PHARMACEUTICALS — 15.59%
Eli Lilly & Co.		1,082,169		88,802,788
Johnson & Johnson		3,127,062		386,098,345
Merck & Co. Inc.		3,506,046		218,531,847
Pfizer Inc.		10,041,272		340,599,947
				1,034,032,927
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 4.95%
Intel Corp.		6,169,782		223,037,619
Maxim Integrated Products Inc.		371,865		16,417,840
Texas Instruments Inc.		1,126,249		89,176,396
				328,631,855
SOFTWARE — 0.22%
CA Inc.		446,101		14,645,496
				14,645,496
TEXTILES, APPAREL & LUXURY GOODS — 0.65%
Coach Inc.		437,335		17,226,626
VF Corp.		471,408		25,753,019
				42,979,645

Security	Shares		Value
THRIFTS & MORTGAGE FINANCE — 0.23%
New York Community Bancorp. Inc.		1,027,865	$	13,660,326
TFS Financial Corp.		79,409		1,313,425
				14,973,751
TOBACCO — 8.51%
Altria Group Inc.		2,788,793		200,179,561
Philip Morris International Inc.		2,628,938		291,391,488
Reynolds American Inc.		1,125,314		72,582,753
				564,153,802
TRADING COMPANIES & DISTRIBUTORS — 0.08%
Watsco Inc.		38,441		5,335,611
				5,335,611
TOTAL COMMON STOCKS
(Cost: $6,173,270,030)				6,621,984,867
SHORT-TERM INVESTMENTS — 0.16%
MONEY MARKET FUNDS — 0.16%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%a,b		10,411,346		10,411,346
				10,411,346
TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,411,346)				10,411,346
TOTAL INVESTMENTS IN SECURITIES — 100.00%
(Cost: $6,183,681,376)c				6,632,396,213
Other Assets, Less Liabilities — 0.00%				282,553
NET ASSETS — 100.00%			$	6,632,678,766

NVS  —  Non-Voting Shares

^a  Affiliated money market fund.

^b  The rate quoted is the annualized seven-day yield of the fund at period end.

^c  The cost of investments for federal income tax purposes was $6,250,956,573. Net unrealized appreciation was $381,439,640, of which $550,084,076 represented gross unrealized appreciation on securities and $168,644,436 represented gross unrealized depreciation on securities.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CORE HIGH DIVIDEND ETF

April 30, 2017

Schedule 1 — Futures Contracts (Note 5)

Futures contracts outstanding as of April 30, 2017 were as follows:

Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
S&P 500 E-Mini		76		Jun. 2017		Chicago Mercantile	$	8,927,136	$	9,045,900	$	118,764

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	6,621,984,867	$	—	$	—	$	6,621,984,867
Money market funds		10,411,346		—		—		10,411,346
Total	$	6,632,396,213	$	—	$	—	$	6,632,396,213
Derivative financial instrumentsa:
Assets:
Futures contracts	$	118,764	$	—	$	—	$	118,764
Total	$	118,764	$	—	$	—	$	118,764

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 25

Schedule of Investments

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.39%
AUSTRALIA — 16.44%
Amcor Ltd./Australia		1,508,011	$	17,717,198
APA Group		1,900,930		13,021,948
AusNet Services		2,372,560		3,105,057
Australia & New Zealand Banking Group Ltd.		1,978,946		48,483,302
Bendigo & Adelaide Bank Ltd.		2,224,665		20,496,971
Commonwealth Bank of Australia		1,966,805		128,554,442
Flight Centre Travel Group Ltd.		1,877,856		44,166,937
Harvey Norman Holdings Ltd.		2,448,398		7,672,032
Macquarie Group Ltd.		1,916,844		133,316,551
National Australia Bank Ltd.		2,386,327		60,676,877
Suncorp Group Ltd.		2,226,169		22,974,791
Sydney Airport		2,435,772		12,550,765
Tabcorp Holdings Ltd.		2,592,148		9,208,052
Tatts Group Ltd.		2,540,930		8,171,005
Telstra Corp. Ltd.		3,594,624		11,344,367
Wesfarmers Ltd.		1,852,766		59,580,395
Westpac Banking Corp.		2,224,188		58,317,346
				659,358,036
AUSTRIA — 1.12%
Oesterreichische Post AG		1,063,701		45,145,404
				45,145,404
BELGIUM — 1.04%
Proximus SADP		1,370,627		41,918,097
				41,918,097
CANADA — 6.22%
Bank of Nova Scotia (The)		776,664		43,101,927
Canadian Imperial Bank of Commerce		839,769		67,713,400
Corus Entertainment Inc. Class B		2,120,160		20,778,281
Emera Inc.		937,310		32,390,768
IGM Financial Inc.		1,095,096		32,845,672
National Bank of Canada		774,963		30,067,862
Russel Metals Inc.		1,174,746		22,493,125
				249,391,035
DENMARK — 0.85%
Tryg A/S		1,769,392		33,938,088
				33,938,088
FINLAND — 5.21%
Elisa OYJ		1,368,103		46,585,904
Fortum OYJ		2,127,870		30,957,038
Metso OYJ		1,051,802		37,716,690

Security	Shares		Value
Nokian Renkaat OYJ		1,121,475	$	48,238,583
Stora Enso OYJ Class R		1,233,059		14,662,713
UPM-Kymmene OYJ		1,173,991		30,976,049
				209,136,977
FRANCE — 10.36%
Bouygues SA		1,166,183		49,012,359
Casino Guichard Perrachon SA		1,721,463		103,664,647
CNP Assurances		1,203,271		25,118,483
Engie SA		2,109,432		29,746,998
Lagardere SCA		1,418,388		43,432,839
Natixis SA		1,710,906		11,899,560
Orange SA		1,370,532		21,192,655
SES SA		2,404,098		52,555,185
Total SA		1,535,578		78,876,132
				415,498,858
GERMANY — 1.82%
Freenet AG		1,071,923		33,629,057
ProSiebenSat.1 Media SE Registered		931,835		39,563,992
				73,193,049
HONG KONG — 3.88%
New World Development Co. Ltd.		13,153,000		16,387,239
PCCW Ltd.		24,916,000		14,063,714
SJM Holdings Ltd.		9,970,000		9,678,305
Television Broadcasts Ltd.		4,495,000		17,280,570
VTech Holdings Ltd.		7,738,200		98,051,393
				155,461,221
ITALY — 7.63%
Azimut Holding SpA		5,270,112		102,840,860
Banca Mediolanum SpA		5,221,998		39,947,617
Enel SpA		3,443,481		16,364,031
Eni SpA		4,571,086		71,031,537
Italgas SpAa		5,155,438		23,298,154
Snam SpA		7,396,554		32,685,063
Terna Rete Elettrica Nazionale SpA		3,917,038		19,749,069
				305,916,331
NETHERLANDS — 0.82%
Aegon NV		6,431,646		32,770,497
				32,770,497
NEW ZEALAND — 4.53%
Fletcher Building Ltd.		8,810,101		51,715,320
Sky Network Television Ltd.b		20,784,033		55,079,418

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

April 30, 2017

Security	Shares		Value
SKYCITY Entertainment Group Ltd.		11,221,705	$	33,590,584
Spark New Zealand Ltd.		16,231,184		41,175,309
				181,560,631
NORWAY — 0.92%
Statoil ASA		2,232,213		36,923,432
				36,923,432
PORTUGAL — 1.22%
EDP – Energias de Portugal SA		14,826,774		48,921,205
				48,921,205
SINGAPORE — 1.24%
StarHub Ltd.		25,018,900		49,941,140
				49,941,140
SOUTH KOREA — 1.36%
Korea Electric Power Corp. ADR		2,745,563		54,389,603
				54,389,603
SPAIN — 3.81%
Ferrovial SA		2,240,311		47,657,316
Gas Natural SDG SA		2,299,643		51,987,103
Mapfre SA		2,924,044		10,201,975
Telefonica SA		3,874,448		42,844,750
				152,691,144
SWEDEN — 3.88%
Nordea Bank AB		3,045,462		37,488,747
Skandinaviska Enskilda Banken AB Class A		2,773,108		31,943,919
Swedbank AB Class A		3,133,091		74,268,849
Telia Co. AB		2,891,919		11,790,021
				155,491,536
SWITZERLAND — 3.63%
Swiss Prime Site AG Registered		125,798		10,899,671
Swiss Re AG		164,849		14,341,176
Swisscom AG Registered		159,012		69,326,644
Zurich Insurance Group AG		184,701		51,099,157
				145,666,648
UNITED KINGDOM — 23.41%
Aberdeen Asset Management PLC		4,664,819		16,837,953
Ashmore Group PLC		3,150,675		14,176,972
AstraZeneca PLC		3,223,281		193,389,270
Bovis Homes Group PLC		3,846,088		45,802,934
BP PLC		4,830,317		27,652,805
Capita PLC		4,439,716		31,935,981

Security	Shares		Value
Carillion PLC		5,540,284	$	15,948,224
Centamin PLC		6,265,651		14,339,840
Dairy Crest Group PLC		2,989,126		22,197,619
easyJet PLC		3,962,288		59,874,123
GlaxoSmithKline PLC		3,331,680		66,810,583
HSBC Holdings PLC		4,249,360		34,992,278
IG Group Holdings PLC		4,242,054		29,828,130
Legal & General Group PLC		3,881,636		12,358,811
National Grid PLC		3,087,855		39,949,117
Old Mutual PLC		2,214,279		5,557,563
Phoenix Group Holdings		4,730,540		45,227,798
Royal Dutch Shell PLC Class A		4,810,657		125,096,905
Royal Dutch Shell PLC Class A ADR		173,451		4,493,654
SSE PLC		4,206,965		75,708,791
Taylor Wimpey PLC		4,405,241		11,398,559
United Utilities Group PLC		2,727,479		34,351,654
Vodafone Group PLC		4,231,494		10,896,981
				938,826,545
TOTAL COMMON STOCKS
(Cost: $3,960,577,447)				3,986,139,477
SHORT-TERM INVESTMENTS — 0.01%
MONEY MARKET FUNDS — 0.01%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		500,569		500,569
				500,569
TOTAL SHORT-TERM INVESTMENTS
(Cost: $500,569)				500,569
TOTAL INVESTMENTS IN SECURITIES — 99.40%
(Cost: $3,961,078,016)e				3,986,640,046
Other Assets, Less Liabilities — 0.60%				24,076,306
NET ASSETS — 100.00%			$	4,010,716,352

ADR  —  American Depositary Receipts

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  The cost of investments for federal income tax purposes was $4,005,260,471. Net unrealized depreciation was $18,620,425, of which $215,084,065 represented gross unrealized appreciation on securities and $233,704,490 represented gross unrealized depreciation on securities.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® INTERNATIONAL SELECT DIVIDEND ETF

April 30, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
Sky Network Television Ltd.		10,853,612		10,275,737		(345,316	)		20,784,033	$	55,079,418	$	3,424,392	$	(78,097	)

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,968,858,907	$	17,280,570	$	—	$	3,986,139,477
Money market funds		500,569		—		—		500,569
Total	$	3,969,359,476	$	17,280,570	$	—	$	3,986,640,046

See notes to financial statements.

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® SELECT DIVIDEND ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.78%
AEROSPACE & DEFENSE — 3.76%
Lockheed Martin Corp.		2,398,820	$	646,362,049
				646,362,049
AUTOMOBILES — 0.29%
Ford Motor Co.		4,290,514		49,212,196
				49,212,196
BANKS — 4.34%
Bank of Hawaii Corp.		2,101,656		171,242,931
BB&T Corp.		2,218,417		95,791,246
FNB Corp./PA		2,697,562		38,413,283
PacWest Bancorp.		3,178,626		156,992,338
People’s United Financial Inc.		3,201,185		55,924,702
Trustmark Corp.		2,520,571		83,733,369
United Bankshares Inc./WV		2,680,434		106,949,316
Valley National Bancorp.		3,146,159		36,998,830
				746,046,015
BEVERAGES — 0.78%
Coca-Cola Co. (The)		3,111,719		134,270,675
				134,270,675
CAPITAL MARKETS — 5.55%
CME Group Inc.		4,217,591		490,041,898
Federated Investors Inc. Class B		3,114,468		83,530,032
Lazard Ltd. Class A		5,592,580		240,145,385
Waddell & Reed Financial Inc. Class Aa		7,819,876		140,679,569
				954,396,884
CHEMICALS — 1.26%
CF Industries Holdings Inc.		3,575,526		95,609,565
Huntsman Corp.		2,003,695		49,631,525
Olin Corp.		2,226,299		71,530,987
				216,772,077
COMMERCIAL SERVICES & SUPPLIES — 1.51%
Pitney Bowes Inc.		5,016,075		66,663,637
RR Donnelley & Sons Co.		3,342,416		42,014,169
Waste Management Inc.		2,078,785		151,293,972
				259,971,778
CONTAINERS & PACKAGING — 3.98%
International Paper Co.		3,168,468		171,002,218
Packaging Corp. of America		2,392,181		236,299,639
Sonoco Products Co.		2,470,951		129,255,447
WestRock Co.		2,752,256		147,410,831
				683,968,135

Security	Shares		Value
DISTRIBUTORS — 1.37%
Genuine Parts Co.		2,557,387	$	235,330,752
				235,330,752
DIVERSIFIED CONSUMER SERVICES — 0.47%
H&R Block Inc.		3,244,832		80,439,385
				80,439,385
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.22%
AT&T Inc.		4,140,467		164,086,707
CenturyLink Inc.		8,491,453		217,975,599
				382,062,306
ELECTRIC UTILITIES — 15.84%
Alliant Energy Corp.		2,911,877		114,495,004
American Electric Power Co. Inc.		3,196,111		216,792,209
Edison International		2,451,658		196,059,090
Entergy Corp.		4,189,858		319,518,571
Eversource Energy		2,915,634		173,188,660
Exelon Corp.		3,254,598		112,706,729
FirstEnergy Corp.		4,086,565		122,351,756
Great Plains Energy Inc.		3,437,347		101,711,098
IDACORP Inc.		2,418,845		204,440,779
NextEra Energy Inc.		2,678,590		357,752,480
OGE Energy Corp.		2,992,557		104,081,132
PG&E Corp.		2,654,991		178,017,147
Pinnacle West Capital Corp.		2,856,622		243,069,966
PPL Corp.		3,868,598		147,432,270
Xcel Energy Inc.		2,951,801		132,978,635
				2,724,595,526
ELECTRICAL EQUIPMENT — 2.29%
Eaton Corp. PLC		2,947,991		222,986,039
Emerson Electric Co.		2,833,540		170,805,791
				393,791,830
ENERGY EQUIPMENT & SERVICES — 1.31%
Helmerich & Payne Inc.		3,716,811		225,387,419
				225,387,419
FOOD & STAPLES RETAILING — 0.69%
Sysco Corp.		2,238,458		118,347,274
				118,347,274
FOOD PRODUCTS — 0.94%
General Mills Inc.		2,821,376		162,257,334
				162,257,334
GAS UTILITIES — 0.56%
New Jersey Resources Corp.		2,375,799		95,863,490
				95,863,490

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® SELECT DIVIDEND ETF

April 30, 2017

Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 3.41%
Darden Restaurants Inc.		2,628,866	$	223,953,095
McDonald’s Corp.		2,590,169		362,442,348
				586,395,443
HOUSEHOLD DURABLES — 3.43%
Garmin Ltd.		3,463,427		176,080,628
Leggett & Platt Inc.		2,473,033		129,933,154
Tupperware Brands Corp.a		3,961,396		284,467,847
				590,481,629
HOUSEHOLD PRODUCTS — 1.95%
Kimberly-Clark Corp.		2,586,794		335,636,522
				335,636,522
INDUSTRIAL CONGLOMERATES — 0.48%
General Electric Co.		2,858,888		82,879,163
				82,879,163
INSURANCE — 3.56%
Arthur J Gallagher & Co.		2,451,681		136,828,317
Cincinnati Financial Corp.		2,426,234		174,907,209
Mercury General Corp.a		3,768,815		231,744,434
Old Republic International Corp.		3,348,290		69,242,637
				612,722,597
LEISURE PRODUCTS — 0.70%
Mattel Inc.		5,337,546		119,667,781
				119,667,781
MACHINERY — 2.53%
Caterpillar Inc.		2,915,287		298,117,249
PACCAR Inc.		2,045,191		136,475,595
				434,592,844
MEDIA — 1.60%
Cinemark Holdings Inc.		2,456,164		106,106,285
Meredith Corp.a		2,876,639		168,427,213
				274,533,498
METALS & MINING — 0.24%
Commercial Metals Co.		2,254,885		42,031,056
				42,031,056
MULTI-UTILITIES — 12.89%
Avista Corp.a		3,303,168		133,249,797
Black Hills Corp.		2,456,907		167,118,814
CenterPoint Energy Inc.		3,460,186		98,719,107
CMS Energy Corp.		2,702,746		122,704,668
Dominion Resources Inc./VA		3,547,190		274,658,922
DTE Energy Co.		2,908,235		304,172,299
NiSource Inc.		2,698,611		65,441,317

Security	Shares		Value
NorthWestern Corp.a		3,261,463	$	194,970,258
Public Service Enterprise Group Inc.		3,453,809		152,140,286
SCANA Corp.		3,179,905		210,859,501
Sempra Energy		2,676,701		302,520,747
WEC Energy Group Inc.		3,143,681		190,255,574
				2,216,811,290
MULTILINE RETAIL — 3.05%
Kohl’s Corp.		4,793,222		187,079,455
Macy’s Inc.		4,196,308		122,616,120
Target Corp.		3,848,758		214,953,134
				524,648,709
OIL, GAS & CONSUMABLE FUELS — 7.58%
Chevron Corp.		3,477,553		371,054,905
ConocoPhillips		2,048,908		98,163,182
HollyFrontier Corp.		4,295,899		120,886,598
Occidental Petroleum Corp.		4,321,755		265,960,803
ONEOK Inc.		3,962,909		208,488,642
Valero Energy Corp.		3,694,359		238,692,535
				1,303,246,665
PAPER & FOREST PRODUCTS — 0.89%
Domtar Corp.a		3,853,291		152,782,988
				152,782,988
PERSONAL PRODUCTS — 0.81%
Nu Skin Enterprises Inc. Class A		2,525,810		139,500,486
				139,500,486
PHARMACEUTICALS — 2.62%
Eli Lilly & Co.		2,200,315		180,557,849
Merck & Co. Inc.		2,521,156		157,143,654
Pfizer Inc.		3,349,736		113,623,045
				451,324,548
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.54%
Intel Corp.		2,590,945		93,662,662
				93,662,662
SPECIALTY RETAIL — 1.55%
L Brands Inc.		4,160,704		219,726,778
Staples Inc.		4,754,194		46,448,476
				266,175,254
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 1.13%
Seagate Technology PLC		4,622,683		194,753,635
				194,753,635

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® SELECT DIVIDEND ETF

April 30, 2017

Security	Shares		Value
THRIFTS & MORTGAGE FINANCE — 0.32%
New York Community Bancorp. Inc.		4,176,239	$	55,502,216
				55,502,216
TOBACCO — 3.34%
Altria Group Inc.		2,838,717		203,763,106
Philip Morris International Inc.		3,345,398		370,803,915
				574,567,021
TOTAL COMMON STOCKS
(Cost: $13,684,344,285)				17,160,991,132
SHORT-TERM INVESTMENTS — 0.13%
MONEY MARKET FUNDS — 0.13%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%b,c		22,860,912		22,860,912
				22,860,912
TOTAL SHORT-TERM INVESTMENTS
(Cost: $22,860,912)				22,860,912

	Value
TOTAL INVESTMENTS IN SECURITIES — 99.91%
(Cost: $13,707,205,197)d	$	17,183,852,044
Other Assets, Less Liabilities — 0.09%		16,206,887
NET ASSETS — 100.00%	$	17,200,058,931

^a  Affiliated issuer. See Schedule 1.

^b  Affiliated money market fund.

^c  The rate quoted is the annualized seven-day yield of the fund at period end.

^d  The cost of investments for federal income tax purposes was $13,839,141,479. Net unrealized appreciation was $3,344,710,565, of which $3,835,880,747 represented gross unrealized appreciation on securities and $491,170,182 represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
Avista Corp.		2,736,205		918,664		(351,701	)		3,303,168	$	133,249,797	$	4,087,804	$	4,246,969
Bank of Hawaii Corp.a		2,132,779		503,375		(534,498	)		2,101,656		171,242,931		4,461,845		9,411,596
Domtar Corp.		3,514,204		744,399		(405,312	)		3,853,291		152,782,988		6,353,918		273,405
Mercury General Corp.		3,548,723		560,447		(340,355	)		3,768,815		231,744,434		9,089,095		1,636,564
Meredith Corp.		3,452,406		430,087		(1,005,854	)		2,876,639		168,427,213		7,432,673		9,986,270
NorthWestern Corp.		2,562,768		1,043,955		(345,260	)		3,261,463		194,970,258		5,636,497		1,446,939
Nu Skin Enterprises Inc. Class Aa		3,316,745		779,749		(1,570,684	)		2,525,810		139,500,486		5,099,984		14,249,890
Trustmark Corp.a		3,183,310		711,010		(1,373,749	)		2,520,571		83,733,369		3,169,649		7,946,700
Tupperware Brands Corp.		3,997,321		947,216		(983,141	)		3,961,396		284,467,847		11,828,814		(16,386,226	)
Waddell & Reed Financial Inc. Class A		5,768,975		2,465,815		(414,914	)		7,819,876		140,679,569		12,199,200		(823,097	)
										$	1,700,798,892	$	69,359,479	$	31,989,010

^a  Not an affiliate at the end of the year.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® SELECT DIVIDEND ETF

April 30, 2017

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of April 30, 2017 were as follows:

Issue	Number of long (short) contracts		Expiration date		Exchange		Initial notional value		Current notional value		Unrealized appreciation (depreciation)
S&P 500 E-Mini		308		Jun. 2017		Chicago Mercantile	$	36,386,391	$	36,659,700	$	273,309

Schedule 3 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	17,160,991,132	$	—	$	—	$	17,160,991,132
Money market funds		22,860,912		—		—		22,860,912
Total	$	17,183,852,044	$	—	$	—	$	17,183,852,044
Derivative financial instrumentsa:
Assets:
Futures contracts	$	273,309	$	—	$	—	$	273,309
Total	$	273,309	$	—	$	—	$	273,309

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

April 30, 2017

	iShares Core Dividend Growth ETF			iShares Core High Dividend ETF			iShares International Select Dividend ETF
ASSETS
Investments, at cost:
Unaffiliated	$	1,310,182,310		$	6,173,270,030		$	3,896,699,497
Affiliated (Note 2)		15,085,808			10,411,346			64,378,519
Total cost of investments	$	1,325,268,118		$	6,183,681,376		$	3,961,078,016
Investments in securities, at fair value (Note 1):
Unaffiliated	$	1,415,097,057		$	6,621,984,867		$	3,931,060,059
Affiliated (Note 2)		16,377,913			10,411,346			55,579,987
Total fair value of investments		1,431,474,970			6,632,396,213			3,986,640,046
Foreign currency, at valuea		—			—			14,952,585
Cash pledged to broker		106,400			384,600			—
Cash		26,800			—			—
Receivables:
Dividends and interest		1,705,278			15,110,354			8,619,028
Capital shares sold		55,924			—			—
Tax reclaims		—			—			4,141,472
Foreign withholding tax claims (Note 8)		—			—			4,246,806
Total Assets		1,433,369,372			6,647,891,167			4,018,599,937
LIABILITIES
Payables:
Investment securities purchased		3,275,518			14,747,232			6,237,070
Capital shares redeemed		—			9,800			—
Futures variation margin		5,880			21,280			—
Professional fees (Note 8)		—			—			42,468
Investment advisory fees (Note 2)		90,766			434,089			1,604,047
Total Liabilities		3,372,164			15,212,401			7,883,585
NET ASSETS	$	1,429,997,208		$	6,632,678,766		$	4,010,716,352
Net assets consist of:
Paid-in capital	$	1,331,694,038		$	6,428,585,225		$	4,517,892,144
Undistributed net investment income		1,452,144			14,814,447			14,975,921
Accumulated net realized loss		(9,386,696	)		(259,554,507	)		(547,706,882	)
Net unrealized appreciation		106,237,722			448,833,601			25,555,169
NET ASSETS	$	1,429,997,208		$	6,632,678,766		$	4,010,716,352
Shares outstandingb		46,500,000			79,650,000			126,200,000
Net asset value per share	$	30.75		$	83.27		$	31.78

^a  Cost of foreign currency: $  —, $  — and $14,942,504, respectively.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

FINANCIAL STATEMENTS 33

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2017

	iShares Select Dividend ETF
ASSETS
Investments, at cost:
Unaffiliated	$	12,555,281,644
Affiliated (Note 2)		1,151,923,553
Total cost of investments	$	13,707,205,197
Investments in securities, at fair value (Note 1):
Unaffiliated	$	15,854,669,026
Affiliated (Note 2)		1,329,183,018
Total fair value of investments		17,183,852,044
Cash pledged to broker		1,556,200
Receivables:
Dividends and interest		18,885,643
Capital shares sold		1,299,565
Total Assets		17,205,593,452
LIABILITIES
Payables:
Futures variation margin		86,240
Investment advisory fees (Note 2)		5,448,281
Total Liabilities		5,534,521
NET ASSETS	$	17,200,058,931
Net assets consist of:
Paid-in capital	$	15,020,357,384
Undistributed net investment income		10,390,543
Accumulated net realized loss		(1,307,609,152	)
Net unrealized appreciation		3,476,920,156
NET ASSETS	$	17,200,058,931
Shares outstandinga		187,950,000
Net asset value per share	$	91.51

^a  No par value, unlimited number of shares authorized.

See notes to financial statements.

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year ended April 30, 2017

	iShares Core Dividend Growth ETF			iShares Core High Dividend ETF			iShares International Select Dividend ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	21,313,203		$	224,130,399		$	160,472,964
Dividends — affiliated (Note 2)		179,265			44,553			3,433,754
Interest — unaffiliated		228			2,650			—
Securities lending income — affiliated — net (Note 2)		109			445,499			157,363
Foreign withholding tax claims (Note 8)		—			—			4,246,806
Total investment income		21,492,805			224,623,101			168,310,887
EXPENSES
Investment advisory fees (Note 2)		769,926			6,049,591			16,018,767
Professional fees (Note 8)		—			—			60,670
Total expenses		769,926			6,049,591			16,079,437
Net investment income		20,722,879			218,573,510			152,231,450
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(2,873,904	)		(55,597,215	)		(35,364,179	)
Investments — affiliated (Note 2)		(16,807	)		—			(87,846	)
In-kind redemptions — unaffiliated		45,444,640			141,663,327			1,440,282
In-kind redemptions — affiliated (Note 2)		284,861			—			9,749
Futures contracts		406,675			4,166,028			—
Foreign currency transactions		—			—			(1,213,750	)
Realized gain distributions from affiliated funds		236			1,312			68
Net realized gain (loss)		43,245,701			90,233,452			(35,215,676	)
Net change in unrealized appreciation/depreciation on:
Investments		80,087,371			207,528,639			269,071,990
Futures contracts		27,001			(182,256	)		—
Translation of assets and liabilities in foreign currencies		—			—			(132,309	)
Net change in unrealized appreciation/depreciation		80,114,372			207,346,383			268,939,681
Net realized and unrealized gain		123,360,073			297,579,835			233,724,005
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	144,082,952		$	516,153,345		$	385,955,455

^a  Net of foreign withholding tax of $1,216, $2,770 and $12,910,605, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 35

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended April 30, 2017

	iShares Select Dividend ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	518,099,381
Dividends — affiliated (Note 2)		69,465,029
Interest — unaffiliated		6,266
Securities lending income — affiliated — net (Note 2)		2,770,043
Total investment income		590,340,719
EXPENSES
Investment advisory fees (Note 2)		63,567,190
Total expenses		63,567,190
Net investment income		526,773,529
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		209,818,547
Investments — affiliated (Note 2)		4,030,609
In-kind redemptions — unaffiliated		474,713,951
In-kind redemptions — affiliated (Note 2)		27,958,401
Futures contracts		6,253,739
Realized gain distributions from affiliated funds		2,835
Net realized gain		722,778,082
Net change in unrealized appreciation/depreciation on:
Investments		1,022,973,080
Futures contracts		(309,240	)
Net change in unrealized appreciation/depreciation		1,022,663,840
Net realized and unrealized gain		1,745,441,922
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,272,215,451

See notes to financial statements.

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Core Dividend Growth ETF						iShares Core High Dividend ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	20,722,879		$	7,219,351		$	218,573,510		$	159,956,308
Net realized gain (loss)		43,245,701			(9,021,104	)		90,233,452			(61,720,674	)
Net change in unrealized appreciation/depreciation		80,114,372			23,408,511			207,346,383			165,199,596
Net increase in net assets resulting from operations		144,082,952			21,606,758			516,153,345			263,435,230
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(19,794,874	)		(6,924,753	)		(210,133,528	)		(167,183,051	)
Total distributions to shareholders		(19,794,874	)		(6,924,753	)		(210,133,528	)		(167,183,051	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,097,954,043			313,360,709			2,208,470,716			1,368,869,927
Cost of shares redeemed		(269,200,028	)		(19,714,275	)		(958,764,601	)		(1,246,387,730	)
Net increase in net assets from capital share transactions		828,754,015			293,646,434			1,249,706,115			122,482,197
INCREASE IN NET ASSETS		953,042,093			308,328,439			1,555,725,932			218,734,376
NET ASSETS
Beginning of year		476,955,115			168,626,676			5,076,952,834			4,858,218,458
End of year	$	1,429,997,208		$	476,955,115		$	6,632,678,766		$	5,076,952,834
Undistributed net investment income included in net assets at end of year	$	1,452,144		$	523,910		$	14,814,447		$	6,373,191
SHARES ISSUED AND REDEEMED
Shares sold		38,000,000			12,250,000			27,050,000			18,050,000
Shares redeemed		(9,350,000	)		(800,000	)		(11,800,000	)		(16,600,000	)
Net increase in shares outstanding		28,650,000			11,450,000			15,250,000			1,450,000

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares International Select Dividend ETF						iShares Select Dividend ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	152,231,450		$	159,903,437		$	526,773,529		$	459,222,146
Net realized gain (loss)		(35,215,676	)		(320,461,063	)		722,778,082			921,184,326
Net change in unrealized appreciation/depreciation		268,939,681			(346,934,811	)		1,022,663,840			(299,624,176	)
Net increase (decrease) in net assets resulting from operations		385,955,455			(507,492,437	)		2,272,215,451			1,080,782,296
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(144,141,129	)		(168,115,003	)		(517,278,307	)		(471,155,295	)
Total distributions to shareholders		(144,141,129	)		(168,115,003	)		(517,278,307	)		(471,155,295	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,044,369,320			163,062,320			2,397,347,228			1,822,518,831
Cost of shares redeemed		(12,858,231	)		(1,362,620,494	)		(1,597,585,625	)		(2,639,890,148	)
Net increase (decrease) in net assets from capital share transactions		1,031,511,089			(1,199,558,174	)		799,761,603			(817,371,317	)
INCREASE (DECREASE) IN NET ASSETS		1,273,325,415			(1,875,165,614	)		2,554,698,747			(207,744,316	)
NET ASSETS
Beginning of year		2,737,390,937			4,612,556,551			14,645,360,184			14,853,104,500
End of year	$	4,010,716,352		$	2,737,390,937		$	17,200,058,931		$	14,645,360,184
Undistributed net investment income included in net assets at end of year	$	14,975,921		$	8,099,285		$	10,390,543		$	892,611
SHARES ISSUED AND REDEEMED
Shares sold		34,950,000			5,400,000			27,800,000			23,000,000
Shares redeemed		(450,000	)		(45,150,000	)		(18,350,000	)		(34,150,000	)
Net increase (decrease) in shares outstanding		34,500,000			(39,750,000	)		9,450,000			(11,150,000	)

See notes to financial statements.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Core Dividend Growth ETF

	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Period from Jun. 10, 2014a to Apr. 30, 2015
Net asset value, beginning of period	$	26.72		$	26.35		$	24.96
Income from investment operations:
Net investment incomeb		0.71			0.67			0.53
Net realized and unrealized gainc		3.98			0.34			1.29
Total from investment operations		4.69			1.01			1.82
Less distributions from:
Net investment income		(0.66	)		(0.64	)		(0.43	)
Total distributions		(0.66	)		(0.64	)		(0.43	)
Net asset value, end of period	$	30.75		$	26.72		$	26.35
Total return		17.78	%		3.95	%		7.31	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,429,997		$	476,955		$	168,627
Ratio of expenses to average net assetse		0.09	%		0.10	%		0.05	%
Ratio of expenses to average net assets prior to waived feese		n/a			0.12	%		0.12	%
Ratio of net investment income to average net assetse		2.46	%		2.62	%		2.31	%
Portfolio turnover ratef		27	%		45	%		47	%d

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 39

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Core High Dividend ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	78.83		$	77.18		$	73.80		$	68.58		$	57.95
Income from investment operations:
Net investment incomea		2.85			2.70			2.71			2.27			2.11
Net realized and unrealized gainb		4.34			1.79			3.27			5.21			10.63
Total from investment operations		7.19			4.49			5.98			7.48			12.74
Less distributions from:
Net investment income		(2.75	)		(2.84	)		(2.60	)		(2.26	)		(2.11	)
Total distributions		(2.75	)		(2.84	)		(2.60	)		(2.26	)		(2.11	)
Net asset value, end of year	$	83.27		$	78.83		$	77.18		$	73.80		$	68.58
Total return		9.22	%		6.12	%		8.21	%		11.20	%		22.49	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	6,632,679		$	5,076,953		$	4,858,218		$	3,542,299		$	3,518,312
Ratio of expenses to average net assets		0.10	%		0.12	%		0.14	%		0.40	%		0.40	%
Ratio of net investment income to average net assets		3.49	%		3.63	%		3.57	%		3.29	%		3.45	%
Portfolio turnover ratec		49	%		74	%		63	%		47	%		43	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares International Select Dividend ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	29.85		$	35.09		$	39.73		$	36.07		$	31.73
Income from investment operations:
Net investment incomea		1.42	b		1.51			1.61			1.93			1.70
Net realized and unrealized gain (loss)c		1.88			(5.18	)		(4.40	)		3.56			4.29
Total from investment operations		3.30			(3.67	)		(2.79	)		5.49			5.99
Less distributions from:
Net investment income		(1.37	)		(1.57	)		(1.74	)		(1.83	)		(1.65	)
Net realized gain		—			—			(0.11	)		—			—
Total distributions		(1.37	)		(1.57	)		(1.85	)		(1.83	)		(1.65	)
Net asset value, end of year	$	31.78		$	29.85		$	35.09		$	39.73		$	36.07
Total return		11.47	%b		(10.37	)%		(7.20	)%		16.20	%		19.76	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	4,010,716		$	2,737,391		$	4,612,557		$	3,744,611		$	2,059,371
Ratio of expenses to average net assets		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 8)		0.50	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assets		4.75	%b		4.97	%		4.42	%		5.27	%		5.21	%
Portfolio turnover rated		29	%		27	%		53	%		55	%		24	%

^a  Based on average shares outstanding throughout each period.

^b  Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees (See Note 8), which resulted in the following increases:

• Net investment income per share by $0.04.

• Total return by 0.10%.

• Ratio of net investment income to average net assets by 0.13%.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 41

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Select Dividend ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	82.05		$	78.32		$	74.82		$	65.47		$	56.70
Income from investment operations:
Net investment incomea		2.82			2.57			2.43			2.18			2.17
Net realized and unrealized gainb		9.41			3.78			3.47			9.40			8.78
Total from investment operations		12.23			6.35			5.90			11.58			10.95
Less distributions from:
Net investment income		(2.77	)		(2.62	)		(2.40	)		(2.23	)		(2.18	)
Total distributions		(2.77	)		(2.62	)		(2.40	)		(2.23	)		(2.18	)
Net asset value, end of year	$	91.51		$	82.05		$	78.32		$	74.82		$	65.47
Total return		15.12	%		8.42	%		7.97	%		18.06	%		19.83	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	17,200,059		$	14,645,360		$	14,853,105		$	13,567,826		$	12,430,015
Ratio of expenses to average net assets		0.39	%		0.39	%		0.39	%		0.39	%		0.40	%
Ratio of net investment income to average net assets		3.23	%		3.36	%		3.16	%		3.18	%		3.72	%
Portfolio turnover ratec		19	%		21	%		20	%		22	%		13	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification Classification
Core Dividend Growth	Diversified
Core High Dividend	Non-diversified
International Select Dividend	Diversified
Select Dividend	Diversified

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

• Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

NOTES TO FINANCIAL STATEMENTS 43

Notes to Financial Statements (Continued)

iSHARES^® TRUST

• Futures contracts are valued at that day’s last reported settlement price on the exchange where the contract is traded.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration factors that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of April 30, 2017 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated and recorded as a reduction of cost of the related investment and/or reclassified to capital gains. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

FOREIGN TAXES

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of April 30, 2017, if any, are disclosed in the Funds’ statements of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an

NOTES TO FINANCIAL STATEMENTS 45

Notes to Financial Statements (Continued)

iSHARES^® TRUST

approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

On October 11, 2016, BlackRock, Inc. (“BlackRock”) implemented changes required by amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. The Funds may be exposed to additional risks when reinvesting the cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00 and which may be subject to redemption gates or liquidity fees under certain circumstances.

Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of April 30, 2017, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of April 30, 2017 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

RECENT ACCOUNTING STANDARD

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued a new rule, Investment Company Reporting Modernization, that modernizes and enhances the reporting and disclosure of information by registered investment companies. As part of these changes, the new rule amends Regulation S-X to require standardized, enhanced disclosures related to derivatives and updates to other disclosures in investment company financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is evaluating the impact, if any, of these changes on the Funds’ financial statements.

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent Trustees).

For its investment advisory services to each of the iShares Core Dividend Growth ETF and iShares Core High Dividend ETF, BFA is entitled to an annual investment advisory fee of 0.08%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund. Prior to October 5, 2016, for its investment advisory services to each of these Funds, BFA was entitled to an annual investment advisory fee of 0.12% based on the average daily net assets of each Fund.

For its investment advisory services to the iShares International Select Dividend ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee		Aggregate Average Daily Net Assets
	0.5000%	First $12 billion
	0.4750a	Over $12 billion, up to and including $18 billionb
	0.4513a	Over $18 billion, up to and including $24 billionb
	0.4287a	Over $24 billionb

^a  Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.

^b  Breakpoint level was added or amended effective July 1, 2016.

For its investment advisory services to the iShares Select Dividend ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee		Aggregate Average Daily Net Assets
	0.4000%	First $46 billion
	0.3800a	Over $46 billion, up to and including $81  billion
	0.3610a	Over $81 billion, up to and including $111 billion
	0.3430a	Over $111 billion, up to and including $141  billion
	0.3259a	Over $141 billion

^a Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.

The SEC has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.

NOTES TO FINANCIAL STATEMENTS 47

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Pursuant to a securities lending agreement, the iShares Core Dividend Growth ETF, iShares Core High Dividend ETF and iShares Select Dividend ETF (the “Group 1 Funds”), retain 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.

Pursuant to a securities lending agreement, the iShares International Select Dividend ETF (the “Group 2 Fund”), retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Group 1 Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. The Group 2 Fund will receive for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended April 30, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Core Dividend Growth	$	45
Core High Dividend		176,356
International Select Dividend		31,924
Select Dividend		1,113,065

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended April 30, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
Core High Dividend	$	282,641,757	$	1,069,029,421
International Select Dividend		7,224,664		1,366,701
Select Dividend		156,538,323		255,146,211

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Certain trustees and officers of the Trust are also officers of BTC and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended April 30, 2017 were as follows:

iShares ETF	Purchases		Sales
Core Dividend Growth	$	241,654,663	$	230,113,304
Core High Dividend		3,046,578,386		3,020,141,792
International Select Dividend		1,010,670,774		946,571,235
Select Dividend		3,216,241,233		3,157,793,736

In-kind transactions (see Note 4) for the year ended April 30, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Core Dividend Growth	$	1,087,077,252	$	267,382,223
Core High Dividend		2,194,000,856		953,167,789
International Select Dividend		972,107,859		12,594,048
Select Dividend		2,301,859,919		1,535,254,775

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5. FUTURES CONTRACTS

Futures contracts are purchased or sold to gain or manage exposure to changes in the value of commodities (commodity risk), interest rates (interest rate risk), foreign currencies (foreign currency risk) and/or equities (market risk). A futures contract is a standardized, exchange-traded agreement to buy or sell a financial instrument at a set price on a future date. Upon entering into a futures contract, a fund is required to pledge to the executing broker which holds segregated from its own assets, an amount of cash, U.S. government securities or other high-quality debt and equity securities equal to the minimum initial margin requirements of the exchange on which the contract is traded. Pursuant to the contract, the fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation

NOTES TO FINANCIAL STATEMENTS 49

Notes to Financial Statements (Continued)

iSHARES^® TRUST

and are recorded by the fund as unrealized appreciation or depreciation. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Losses may arise if the value of a futures contract decreases due to an unfavorable change in the market rates or values of the underlying instrument during the term of the contract or if the counterparty does not perform under the contract. The use of futures contracts also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

The following table shows the value of futures contracts held as of April 30, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Assets
	iShares Core Dividend Growth ETF		iShares Core High Dividend ETF		iShares Select Dividend ETF
Equity contracts:
Variation margin / Net assets consist of — net unrealized appreciationa	$	30,870	$	118,764	$	273,309

^a  Represents cumulative appreciation of futures contracts as reported in the schedules of investments. Only current day’s variation margin is reported separately within the statements of assets and liabilities.

The following table shows the realized and unrealized gains (losses) on futures contracts held during the year ended April 30, 2017 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)
	iShares Core Dividend Growth ETF		iShares Core High Dividend ETF			iShares Select Dividend ETF
Equity contracts:
Futures contracts	$	406,675	$	4,166,028		$	6,253,739
	Net Change in Unrealized Appreciation/Depreciation
	iShares Core Dividend Growth ETF		iShares Core High Dividend ETF			iShares Select Dividend ETF
Equity contracts:
Futures contracts	$	27,001	$	(182,256	)	$	(309,240	)

The following table shows the average quarter-end balances of open futures contracts for the year ended April 30, 2017:

	iShares Core Dividend Growth ETF		iShares Core High Dividend ETF		iShares Select Dividend ETF
Average value of contracts purchased	$	1,694,062	$	13,945,730	$	30,955,462

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

6. PRINCIPAL RISKS

In the normal course of business, each Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war. These risks are heightened for investments in issuers from countries with less developed markets.

The economies and markets of European countries are often closely connected and interdependent, and events in one European country can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of several European countries. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or

NOTES TO FINANCIAL STATEMENTS 51

Notes to Financial Statements (Continued)

iSHARES^® TRUST

principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

7. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of April 30, 2017, attributable to foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:

iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
Core Dividend Growth	$	41,500,768	$	229		$	(41,500,997	)
Core High Dividend		134,492,702		1,274			(134,493,976	)
International Select Dividend		1,236,437		(1,213,685	)		(22,752	)
Select Dividend		483,985,040		2,710			(483,987,750	)

The tax character of distributions paid during the years ended April 30, 2017 and April 30, 2016 was as follows:

iShares ETF	2017		2016
Core Dividend Growth
Ordinary income	$	19,794,874	$	6,924,753
Core High Dividend
Ordinary income	$	210,133,528	$	167,183,051
International Select Dividend
Ordinary income	$	144,141,129	$	168,115,003
Select Dividend
Ordinary income	$	517,278,307	$	471,155,295

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of April 30, 2017, the tax components of accumulated net earnings (losses) were as follows:

iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses) a			Total
Core Dividend Growth	$	1,452,144	$	(1,045,146	)	$	97,896,172		$	98,303,170
Core High Dividend		14,814,447		(192,160,546	)		381,439,640			204,093,541
International Select Dividend		12,143,071		(504,903,684	)		(14,415,179	)		(507,175,792	)
Select Dividend		10,390,543		(1,175,399,561	)		3,344,710,565			2,179,701,547

^a  The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the foreign withholding tax reclaims, the realization for tax purposes of unrealized gains (losses) on certain futures contracts and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

As of April 30, 2017, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring a		Expiring 2018		Total
Core Dividend Growth	$	1,045,146	$	—	$	1,045,146
Core High Dividend		192,160,546		—		192,160,546
International Select Dividend		504,903,684		—		504,903,684
Select Dividend		—		1,175,399,561		1,175,399,561

^a  Must be utilized prior to losses subject to expiration.

For the year ended April 30, 2017, the following Funds utilized their capital loss carryforwards as follows:

iShares ETF	Utilized
Core Dividend Growth	$	156,698
Select Dividend		227,236,902

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2017, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

8. FOREIGN WITHHOLDING TAX CLAIMS

The iShares International Select Dividend ETF intends to file claims to recover taxes withheld by Finland on dividend income on the basis that Finland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded a receivable for all recoverable taxes withheld by Finland based upon recent favorable determinations issued by the Finnish Tax Authority. Withholding tax claims may potentially be for a limited number of prior calendar years, depending upon the member state’s statute of limitation on taxes. The Fund continues to evaluate developments in Finland for potential impact to the receivables recorded. Such foreign withholding tax claims are disclosed in the statement of assets and liabilities and

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Continued)

iSHARES^® TRUST

statement of operations. Professional fees associated with the filing of these claims resulting in the recovery of foreign withholding taxes were approved by the Board as appropriate expenses of the Fund.

The Internal Revenue Service has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the Fund is able to pass through to its shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.

9. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”). The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. The Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit.

10. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and

Shareholders of the iShares Core Dividend Growth ETF, iShares Core High Dividend ETF,

iShares International Select Dividend ETF and iShares Select Dividend ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Core Dividend Growth ETF, iShares Core High Dividend ETF, iShares International Select Dividend ETF and iShares Select Dividend ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

June 22, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 55

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended April 30, 2017:

iShares ETF	Qualified Dividend Income
Core Dividend Growth	$	21,288,722
Core High Dividend		221,695,340
International Select Dividend		162,474,613
Select Dividend		576,656,539

For corporate shareholders, the percentage of income dividends paid during the fiscal year ended April 30, 2017 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends- Received Deductions
Core Dividend Growth		96.52	%
Core High Dividend		100.00
Select Dividend		100.00

For the fiscal year ended April 30, 2017, the iShares International Select Dividend ETF earned foreign source income of $176,807,961 and paid foreign taxes of $11,459,173 which it intends to pass through to its shareholders.

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Core Dividend Growth	$	0.648191	$	—	$	0.011142	$	0.659333		98	%		—	%		2	%		100	%
Core High Dividend		2.745613		—		—		2.745613		100			—			—			100
International Select Dividend		1.336336		—		0.033782		1.370118		98			—			2			100
Select Dividend		2.766395		—		—		2.766395		100			—			—			100

Premium/Discount Information

The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of a fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a fund on a given day, generally at the time the NAV is calculated. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of the NAV.

The following information shows the frequency of distributions of premiums and discounts for each of the Funds. The information shown for each Fund is for five calendar years (or from the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

SUPPLEMENTAL INFORMATION 57

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares Core Dividend Growth ETF

Period Covered: June 10, 2014 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		554		78.14	%
At NAV		51		7.19
Less than 0.0% and Greater than –0.5%		103		14.53
Less than –0.5%		1		0.14
		709		100.00	%

iShares Core High Dividend ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		706		53.48	%
At NAV		241		18.26
Less than 0.0% and Greater than –0.5%		373		28.26
		1,320		100.00	%

iShares International Select Dividend ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		1		0.08	%
Greater than 2.0% and Less than 2.5%		3		0.23
Greater than 1.5% and Less than 2.0%		7		0.53
Greater than 1.0% and Less than 1.5%		33		2.50
Greater than 0.5% and Less than 1.0%		231		17.50
Greater than 0.0% and Less than 0.5%		645		48.86
At NAV		11		0.83
Less than 0.0% and Greater than –0.5%		302		22.88
Less than –0.5% and Greater than –1.0%		62		4.70
Less than –1.0% and Greater than –1.5%		18		1.36
Less than –1.5% and Greater than –2.0%		5		0.38
Less than –2.0% and Greater than –2.5%		2		0.15
		1,320		100.00	%

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Select Dividend ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		546		41.37	%
At NAV		310		23.48
Less than 0.0% and Greater than –0.5%		464		35.15
		1,320		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of AIFMD if such managers market a fund to EU investors.

BFA has registered the iShares Select Dividend ETF (the “Fund”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

BFA is required under AIFMD to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.

Disclosures are provided in relation to both (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.

BlackRock has a clear and well defined pay-for-performance philosophy, and compensation programs which support that philosophy. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Compensation decisions for employees are made based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.

Bonus pools are reviewed by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Operational Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions.

SUPPLEMENTAL INFORMATION 59

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

Functions such as Finance, Operational Risk, Legal & Compliance, and Human Resources each have their own organizational structures which are independent of the business units. Functional bonus pools are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent compensation committee. No individual is involved in setting his or her own remuneration.

Members of staff and senior management of BFA typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of BFA and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Fund according to an objective apportionment methodology which acknowledges the multiple-service nature of BFA. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2016 was USD 1.80 million. This figure is comprised of fixed remuneration of USD 709.98 thousand and variable remuneration of USD 1.09 million. There were a total of 325 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2016, to its senior management was USD 249.61 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 60.13 thousand.

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 334 funds (as of April 30, 2017) within the Exchange-Traded Fund Complex. Drew E. Lawton, from October 2016 to June 2017, and Richard L. Fagnani, from April 2017 to June 2017, served as Advisory Board Members for iShares Trust, iShares, Inc. and iShares U.S. ETF Trust with respect to all funds within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small and Benjamin Archibald, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Wiedman, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

Interested Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Robert S. Kapitoa (60)	Trustee (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).	Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedmanb (46)	Trustee (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Director of iShares, Inc. (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^a  Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

^b  Mark K. Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

TRUSTEE AND OFFICER INFORMATION 61

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Cecilia H. Herbert (68)	Trustee (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School.	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2016); Trustee of Forward Funds (17 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (61)	Trustee (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (62)	Trustee (since 2017).	Retired; Partner, KPMG LLP (2002-2016).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
Charles A. Hurty (73)	Trustee (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (61)	Trustee (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).
Drew E. Lawton (58)	Trustee (since 2017).	Senior Managing Director of New York Life Insurance Company (2010-2015).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (55)	Trustee (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Madhav V. Rajan (52)	Trustee (since 2011); Equity Plus Committee Chair and 15(c) Committee Chair (since 2016).	Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).

TRUSTEE AND OFFICER INFORMATION 63

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013): Secretary of the BlackRock-advised Mutual Funds (since 2012).
Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).
Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).
Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

^c Manish Mehta served as President until October 15, 2016.

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 65

Notes:

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by S&P Dow Jones Indices, LLC or Morningstar, Inc., nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds’ website.

©2017 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-406-0417

APRIL 30, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares Morningstar Large-Cap ETF  |  JKD  |  NYSE Arca

^Ø  iShares Morningstar Large-Cap Growth ETF  |  JKE  |  NYSE Arca

^Ø  iShares Morningstar Large-Cap Value ETF  |  JKF  |  NYSE Arca

^Ø  iShares Morningstar Mid-Cap ETF  |  JKG  |  NYSE Arca

^Ø  iShares Morningstar Mid-Cap Growth ETF  |  JKH  |  NYSE Arca

^Ø  iShares Morningstar Mid-Cap Value ETF  |  JKI  |  NASDAQ

^Ø  iShares Morningstar Small-Cap ETF  |  JKJ  |  NYSE Arca

^Ø  iShares Morningstar Small-Cap Growth ETF  |  JKK  |  NYSE Arca

^Ø  iShares Morningstar Small-Cap Value ETF  |  JKL  |  NYSE Arca

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	24
Shareholder Expenses	24
Schedules of Investments	25
iShares Morningstar Large-Cap ETF	25
iShares Morningstar Large-Cap Growth ETF	28
iShares Morningstar Large-Cap Value ETF	31
iShares Morningstar Mid-Cap ETF	34
iShares Morningstar Mid-Cap Growth ETF	39
iShares Morningstar Mid-Cap Value ETF	44
iShares Morningstar Small-Cap ETF	48
iShares Morningstar Small-Cap Growth ETF	54
iShares Morningstar Small-Cap Value ETF	59
Financial Statements	64
Financial Highlights	75
Notes to Financial Statements	84
Report of Independent Registered Public Accounting Firm	97
Tax Information	98
Supplemental Information	99
Trustee and Officer Information	103

Management’s Discussion of Fund Performance

iSHARES^® TRUST

U.S. EQUITY MARKET OVERVIEW

U.S. stocks posted strong returns for the 12 months ended April 30, 2017 (the “reporting period”). The Russell 3000^® Index, a broad measure of U.S. equity performance, returned 18.58% for the reporting period.

Despite the strong overall performance, the U.S. equity market rose modestly in the first half of the reporting period. One contributing factor was a sluggish U.S. economy, which grew by 2.0% in 2016, its slowest calendar-year growth rate since 2011. Although economic growth improved in the second half of 2016, it slowed again in early 2017, as the economy grew at a 0.7% annual rate in the first quarter of 2017.

On the positive side, job growth remained robust as the unemployment rate declined to a 10-year low of 4.4%, and retail sales grew by 4.5% during the reporting period. However, other aspects of the economy continued to struggle, for example, manufacturing activity and business productivity remained muted, and government defense spending and investment declined during the reporting period.

A heightened level of volatility was also evident in the stock market during the first half of the reporting period amid continuing geopolitical conflicts and global unrest. In particular, equity investors reacted sharply to the affirmative vote on the United Kingdom’s referendum to leave the European Union, terrorist attacks in France, and an attempted coup in Turkey.

The bulk of the U.S. equity market’s advance for the reporting period occurred after the U.S. presidential election in November 2016. The new administration was expected to enact pro-business fiscal policies, including lower taxes, decreased regulation, and increased fiscal spending, aimed at stimulating economic growth. These expectations drove a strong equity market advance that extended through the end of the reporting period, even as uncertainty emerged regarding how quickly the new administration would be able to implement its new policies.

The stock market remained on an upward trajectory despite two short-term interest rate increases by the U.S. Federal Reserve Bank (“the Fed”) in the last half of the reporting period. Mixed economic data kept the Fed on hold during the first six months of the reporting period, but improving growth in the third quarter of 2016 led the Fed to raise its short-term interest rate target in December 2016. The Fed acted again in March 2017, responding to the highest year-over-year inflation rate in five years. The two Fed interest rate increases raised the federal funds interest rate target to a range of 0.75%-1.00%.

For the reporting period, small-capitalization stocks generated the strongest returns, outperforming mid- and large-capitalization stocks. Value and growth stocks were mixed with growth faring better than value among large-capitalization stocks, while value outperformed growth among mid- and small-capitalization stocks.

In terms of sector performance, the reporting period featured two distinct phases. Initially, defensive sectors of the equity market, such as real estate, utilities, consumer staples, and telecommunication services, were the top performers. These stocks led the market’s advance for most of 2016 as investors flocked to sectors with relatively high dividend yields in a low interest rate environment.

However, after the presidential election, investors rotated into more economically sensitive sectors of the market, including financials, information technology, materials, and industrials. These sectors were the leading performers for the full reporting period, while the more defensive sectors of the market trailed the broader market.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR LARGE-CAP ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.97%		20.96%		21.07%		20.97%		20.96%		21.07%
5 Years		14.91%		14.92%		15.14%		100.39%		100.46%		102.39%
10 Years		8.44%		8.42%		8.64%		124.86%		124.48%		129.10%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,139.90	$	1.06	$	1,000.00	$	1,023.80	$	1.00		0.20%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP ETF

The iShares Morningstar Large-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities, as represented by the Morningstar^® Large Core Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 20.97%, net of fees, while the total return for the Index was 21.07%.

As represented by the Index, large-capitalization U.S. stocks posted a positive return for the reporting period, outperforming mid-capitalization stocks, but trailing small-capitalization stocks during the reporting period.

Ten of 11 sectors contributed to the Index’s performance for the reporting period. The information technology sector was the largest contributor to the Index’s return for the reporting period, as financial services and manufacturing companies continued to invest in cloud computing and data infrastructure. The technology hardware, storage and peripherals industry posted a solid performance despite declining consumer spending on mobile devices and personal computers.

The industrials sector also posted strong performance for the reporting period, as growth in manufacturing, increasing construction spending, and investors’ optimism contributed to a positive environment for this economically sensitive sector. Strong performance in the aerospace and defense industry helped the sector, as the U.S. defense budget was expected to expand after declining for several years.

The financials sector also contributed to the Index’s performance for the reporting period. The election of a new U.S. president drove expectations that the incoming administration’s policies would stimulate economic growth and reduce regulation. Those expectations, coupled with two interest rate increases by the Fed during the reporting period, led to gains in the banking industry.

The healthcare sector was also a strong contributor to the Index’s performance for the reporting period, as solid earnings and optimism for growth offset uncertainty surrounding the potential repeal of the Affordable Care Act. The only detractor from performance was the real estate sector, which had a minimal impact on the Index’s return for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Information Technology	30.04	%
Industrials	20.67
Health Care	18.63
Consumer Staples	11.32
Consumer Discretionary	5.74
Energy	3.90
Materials	3.41
Financials	2.55
Utilities	2.49
Real Estate	0.89
Telecommunication Services	0.36
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Apple Inc.	13.11	%
Microsoft Corp.	9.21
Johnson & Johnson	4.46
General Electric Co.	4.40
Intel Corp.	2.98
PepsiCo Inc.	2.82
Altria Group Inc.	2.43
Oracle Corp.	2.35
Amgen Inc.	2.10
3M Co.	2.04
TOTAL	45.90	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.15%		18.19%		18.45%		18.15%		18.19%		18.45%
5 Years		13.26%		13.26%		13.55%		86.37%		86.38%		88.74%
10 Years		8.25%		8.25%		8.52%		120.99%		120.86%		126.53%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,152.40	$	1.33	$	1,000.00	$	1,023.60	$	1.25		0.25%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

The iShares Morningstar Large-Cap Growth ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar^® Large Growth Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 18.15%, net of fees, while the total return for the Index was 18.45%.

As represented by the Index, large-capitalization U.S. growth stocks posted a positive return, outperforming large-capitalization U.S. value stocks for the reporting period.

Eight of 10 sectors contributed to the Index’s return for the reporting period, led by the information technology sector. Financial services and manufacturing companies continued to invest in cloud computing and data infrastructure, while increased spending on enterprise software helped drive the solid gains in the software industry. Growth in technology products with wireless connectivity drove demand for semiconductors stocks. The technology hardware, storage, and peripherals industry posted a solid performance despite slower consumer spending on mobile devices and personal computers.

The consumer discretionary and healthcare sectors both contributed meaningfully to the Index’s performance for the reporting period. Steady job growth and rising consumer confidence in the second half of the reporting period led to solid growth in retail sales. In the healthcare sector, solid earnings and optimism for growth offset uncertainty surrounding the potential repeal of the Affordable Care Act. The healthcare equipment and supplies industry benefited from increased demand from ageing populations and speculation that a tax on medical devices could be permanently lifted.

In contrast, the energy and real estate sectors were modest detractors from the Index’s performance for the reporting period. The real estate sector declined as increasing interest rates weighed on real estate investment trusts.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Information Technology	34.21	%
Consumer Discretionary	28.47
Health Care	15.57
Consumer Staples	5.96
Financials	5.13
Real Estate	4.91
Energy	3.90
Materials	1.55
Telecommunication Services	0.30
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Amazon.com Inc.	6.18	%
Facebook Inc. Class A	5.97
Alphabet Inc. Class A	4.63
Alphabet Inc. Class C	4.51
Chevron Corp.	3.40
Home Depot Inc. (The)	3.21
Comcast Corp. Class A	3.13
Visa Inc. Class A	2.86
UnitedHealth Group Inc.	2.84
Walt Disney Co. (The)	2.83
TOTAL	39.56	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR LARGE-CAP VALUE ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		14.95%		14.91%		15.23%		14.95%		14.91%		15.23%
5 Years		11.66%		11.67%		11.95%		73.61%		73.61%		75.80%
10 Years		3.93%		3.91%		4.16%		46.98%		46.74%		50.27%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,108.20	$	1.31	$	1,000.00	$	1,023.60	$	1.25		0.25%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP VALUE ETF

The iShares Morningstar Large-Cap Value ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar^® Large Value Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 14.95%, net of fees, while the total return for the Index was 15.23%.

As represented by the Index, large-capitalization U.S. value stocks posted a positive return for the reporting period. Within the large-capitalization market, value stocks underperformed growth stocks.

Ten of 11 sectors contributed to the Index’s return for the reporting period, led by the financials sector. The election of Donald Trump to the U.S. presidency drove expectations that the new administration’s fiscal policies would stimulate economic growth and reduce regulation. Those expectations, coupled with two interest rate increases by the Fed during the reporting period, led to gains in the banking industry. Insurance stocks rose for the reporting period, reflecting rising interest rates and increasing premiums. Health insurers also benefited from the greater number of insured people under the Affordable Care Act. The capital markets industry also contributed to the Index’s performance for the reporting period, benefiting from expected industry deregulation and increased trading volumes.

The information technology and industrials sectors contributed modestly to the Index’s return for the reporting period. Within the information technology sector, the technology hardware, storage and peripherals industry posted a solid performance despite slower consumer spending on mobile devices and personal computers. For the industrials sector, expansion in manufacturing, increasing construction spending, and investors’ optimism contributed to a positive environment for this economically sensitive sector.

In contrast, the consumer discretionary sector was a minor detractor from the Index’s performance for the reporting period despite steady consumer spending, as brick-and-mortar retailers continue to face increased competition from e-commerce.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Financials	34.97	%
Consumer Staples	13.09
Energy	11.18
Health Care	9.04
Telecommunication Services	7.49
Industrials	7.02
Information Technology	6.95
Utilities	5.63
Consumer Discretionary	2.11
Materials	1.68
Real Estate	0.84
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Exxon Mobil Corp.	5.81	%
Berkshire Hathaway Inc. Class B	5.39
JPMorgan Chase & Co.	5.33
AT&T Inc.	4.18
Wells Fargo & Co.	4.16
Bank of America Corp.	4.02
Procter & Gamble Co. (The)	3.83
Pfizer Inc.	3.47
Verizon Communications Inc.	3.21
Philip Morris International Inc.	2.95
TOTAL	42.35	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR MID-CAP ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		17.06%		17.08%		17.37%		17.06%		17.08%		17.37%
5 Years		13.45%		13.46%		13.72%		87.96%		88.03%		90.15%
10 Years		8.14%		8.14%		8.37%		118.70%		118.69%		123.47%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,136.70	$	1.32	$	1,000.00	$	1,023.60	$	1.25		0.25%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR MID-CAP ETF

The iShares Morningstar Mid-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities, as represented by the Morningstar^® Mid Core Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 17.06%, net of fees, while the total return for the Index was 17.37%.

As represented by the Index, mid-capitalization U.S. stocks posted a positive return for the reporting period, but trailed both large- and small-capitalization stocks.

Eight of 10 sectors contributed to the Index’s return for the reporting period, led by the information technology sector. Growth in data centers for cloud computing and technology products with wireless connectivity increased demand for semiconductors, while increased spending on enterprise software helped the software and services industry.

The financials sector was another strong contributor to the Index’s performance. The election of a new U.S. president drove expectations that the new administration’s policies would stimulate economic growth and reduce regulation. Those expectations, coupled with two interest rate increases by the Fed during the reporting period, led to gains in the banking industry.

In keeping with rising expectations for economic growth, several other economically sensitive sectors performed well during the reporting period. The industrials and consumer discretionary sectors posted strong performances for the reporting period, as did the materials sector. Expansion in manufacturing, increasing consumer spending, and investors’ optimism contributed to a positive environment for these economically sensitive sectors. Solid gains in the hotels, restaurants, and leisure industry benefited the consumer discretionary sector.

In contrast, the real estate and energy sectors, which together represented approximately 12% of the Index on average, detracted fractionally from the Index’s performance for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Industrials	16.38	%
Consumer Discretionary	16.37
Financials	14.96
Information Technology	14.35
Real Estate	12.34
Health Care	9.20
Materials	6.13
Consumer Staples	5.17
Energy	2.74
Utilities	2.36
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Analog Devices Inc.	1.53	%
Lam Research Corp.	1.30
Ingersoll-Rand PLC	1.27
Delphi Automotive PLC	1.19
DXC Technology Co.	1.18
Stanley Black & Decker Inc.	1.14
Rockwell Automation Inc.	1.11
Symantec Corp.	1.08
Nucor Corp.	1.08
Northern Trust Corp.	1.07
TOTAL	11.95	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.06%		16.09%		16.30%		16.06%		16.09%		16.30%
5 Years		11.31%		11.32%		11.54%		70.85%		70.92%		72.67%
10 Years		7.18%		7.18%		7.43%		100.11%		100.12%		104.68%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,139.40	$	1.59	$	1,000.00	$	1,023.30	$	1.51		0.30%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

The iShares Morningstar Mid-Cap Growth ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar^® Mid Growth Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 16.06%, net of fees, while the total return for the Index was 16.30%.

As represented by the Index, U.S. growth stocks posted a positive return for the reporting period, but trailed mid-capitalization U.S. value stocks.

Nine of 10 sectors in the Index contributed to the Index’s return for the reporting period, led by the information technology sector. Financial services and manufacturing companies continued to invest in cloud computing and data infrastructure, and increased spending on enterprise software helped drive the solid gains in the software industry. Growth in technology products with wireless connectivity drove demand for semiconductors stocks. The technology hardware, storage, and peripherals industry posted a solid performance despite slower consumer spending on mobile devices and personal computers.

The healthcare sector was also a strong contributor to the Index’s performance for the reporting period, as solid earnings and optimism for growth offset uncertainty surrounding the potential repeal of the Affordable Care Act. The healthcare equipment and supplies industry benefited from increased demand from ageing populations and speculation that a tax on medical devices could be permanently lifted.

The industrials sector also contributed to the Index’s performance for the reporting period, benefitting from a steady increase in manufacturing, construction spending, and investor optimism. The energy sector detracted fractionally from the Index’s performance for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total  Investments*

Information Technology	21.88	%
Industrials	19.45
Consumer Discretionary	16.24
Health Care	15.11
Real Estate	8.15
Financials	6.56
Energy	4.37
Materials	4.21
Consumer Staples	3.81
Telecommunication Services	0.22
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total  Investments*

Roper Technologies Inc.	1.43	%
CR Bard Inc.	1.42
Incyte Corp.	1.35
Dollar Tree Inc.	1.25
Fortive Corp.	1.22
Skyworks Solutions Inc.	1.18
Autodesk Inc.	1.13
BioMarin Pharmaceutical Inc.	1.05
Ulta Salon Cosmetics & Fragrance Inc.	1.05
Equifax Inc.	1.04
TOTAL	12.12	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.15%		20.14%		20.59%		20.15%		20.14%		20.59%
5 Years		15.74%		15.74%		16.08%		107.65%		107.71%		110.80%
10 Years		7.45%		7.45%		7.75%		105.20%		105.09%		110.92%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,131.10	$	1.59	$	1,000.00	$	1,023.30	$	1.51		0.30%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

The iShares Morningstar Mid-Cap Value ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar^® Mid Value Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 20.15%, net of fees, while the total return for the Index was 20.59%.

As represented by the Index, mid-capitalization U.S. value stocks posted a positive return for the reporting period, outperforming mid-capitalization U.S. growth stocks.

Nine of 11 sectors contributed to the Index’s return for the reporting period, led by the financials sector. The election of Donald Trump to the U.S. presidency drove expectations that the new administration’s fiscal policies would stimulate economic growth and reduce regulation. Those expectations, coupled with two interest rate increases by the Fed during the reporting period, led to gains in the banking industry. Insurance stocks also rose for the reporting period, reflecting rising interest rates and increasing premiums. Health insurers also benefited from greater numbers of insured people under the Affordable Care Act.

The information technology sector was also a large contributor to the Index’s return for the reporting period, as financial services and manufacturing companies continued to invest in cloud computing and data infrastructure. The technology hardware, storage and peripherals industry posted a solid performance despite slower consumer spending on mobile devices and personal computers. Growth in technology products with wireless connectivity drove demand for semiconductors stocks.

The industrials sector contributed modestly to the Index’s return for the reporting period, as expansion in manufacturing, increasing construction spending, and investors’ optimism contributed to a positive environment for this economically sensitive sector.

In contrast, the real estate and telecommunications sectors, which together represented approximately 4% of the Index on average, were minor detractors from the Index’s performance for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total Investments*

Financials	21.17	%
Information Technology	13.98
Utilities	13.23
Consumer Discretionary	12.58
Materials	10.46
Energy	9.49
Industrials	9.01
Consumer Staples	4.31
Real Estate	3.53
Health Care	1.19
Telecommunication Services	1.05
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total Investments*

Micron Technology Inc.	1.84	%
Western Digital Corp.	1.65
M&T Bank Corp.	1.54
International Paper Co.	1.43
Parker-Hannifin Corp.	1.38
Devon Energy Corp.	1.33
United Continental Holdings Inc.	1.29
Ameriprise Financial Inc.	1.27
KeyCorp	1.26
Eversource Energy	1.21
TOTAL	14.20	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 17

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR SMALL-CAP ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.86%		21.79%		22.10%		21.86%		21.79%		22.10%
5 Years		13.02%		13.03%		13.15%		84.44%		84.46%		85.48%
10 Years		7.27%		7.27%		7.39%		101.79%		101.79%		104.08%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,162.90	$	1.34	$	1,000.00	$	1,023.60	$	1.25		0.25%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

The iShares Morningstar Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the Morningstar^® Small Core Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 21.86%, net of fees, while the total return for the Index was 22.10%.

As represented by the Index, small-capitalization U.S. stock posted a positive return for the reporting period, outperforming both mid- and large-capitalization stocks.

Ten of 11 sectors contributed to the Index’s performance for the reporting period, led by the financials sector. The election of a new U.S. president drove expectations that the new administration’s policies would stimulate economic growth and reduce regulation. Those expectations, coupled with two interest rate increases by the Fed during the reporting period, led to gains in the banking industry.

The information technology sector was another strong contributor to the Index’s return for the reporting period, as financial services and manufacturing companies continued to invest in cloud computing and data infrastructure. Growth in technology products with wireless connectivity drove demand for semiconductors stocks.

The industrials and materials sectors also posted solid performances for the reporting period, as did the consumer discretionary sector. Expansion in manufacturing, increasing construction spending, and investors’ optimism contributed to a positive environment for these economically sensitive sectors. Chemicals stocks contributed the most to the materials sector’s performance for the reporting period, driven by access to low-cost natural gas.

The healthcare sector was also a strong contributor to the Index’s performance for the reporting period, as solid earnings and optimism for growth offset uncertainty surrounding the potential repeal of the Affordable Care Act. The only detractor from performance was the real estate sector, which fractionally worked against the Index’s return for the reporting period.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total Investments*

Financials	19.63	%
Industrials	16.59
Consumer Discretionary	13.32
Real Estate	12.80
Information Technology	11.62
Health Care	10.18
Materials	8.96
Consumer Staples	2.57
Utilities	2.03
Energy	1.89
Telecommunication Services	0.41
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total Investments*

Chemours Co. (The)	1.21	%
Envision Healthcare Corp.	1.07
Olin Corp.	0.87
Zebra Technologies Corp. Class A	0.81
Teledyne Technologies Inc.	0.78
Webster Financial Corp.	0.76
Cypress Semiconductor Corp.	0.75
Bio-Rad Laboratories Inc. Class A	0.74
Hill-Rom Holdings Inc.	0.74
Realogy Holdings Corp.	0.71
TOTAL	8.44	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 19

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.10%		20.05%		20.31%		20.10%		20.05%		20.31%
5 Years		11.84%		11.84%		11.86%		74.96%		74.95%		75.11%
10 Years		7.64%		7.63%		7.75%		108.81%		108.66%		110.91%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,156.60	$	1.60	$	1,000.00	$	1,023.30	$	1.51		0.30%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

The iShares Morningstar Small-Cap Growth ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar^® Small Growth Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 20.10%, net of fees, while the total return for the Index was 20.31%.

As represented by the Index, stocks classified as small-capitalization U.S. growth stocks by Morningstar posted a positive return for the reporting period. Based on Morningstar classifications, small-capitalization U.S. growth stocks posted strong returns, outperforming both large-capitalization and mid-capitalization U.S. growth stocks for the reporting period. Within small-capitalization stocks, U.S. growth stocks performed similarly to U.S. value stocks.

Eight of 11 sectors in the Index contributed to the Index’s return for the reporting period, led by the information technology sector. Financial services and manufacturing companies continued to invest in cloud computing and data infrastructure, while higher spending on enterprise software helped drive the solid gains in the software industry. The technology hardware, storage, and peripherals industry posted a solid performance despite slower consumer spending on mobile devices and personal computers. Growth in technology products with wireless connectivity drove demand for semiconductors stocks.

The healthcare sector was also a strong contributor to the Index’s performance for the reporting period, as solid earnings and optimism for growth offset uncertainty surrounding the potential repeal of the Affordable Care Act. The healthcare equipment and supplies industry was buoyed by increasing demand from ageing populations and speculation that a tax on medical devices could be permanently lifted.

The industrials sector also posted strong performance for the reporting period, helping the Index’s return. Expansion in manufacturing, increasing construction spending, and investors’ optimism contributed to a positive environment for this economically sensitive sector.

The consumer discretionary and financials sectors were also notable contributors to the Index’s return for the reporting period, while the energy, real estate, and telecommunication services sectors were minor detractors.

ALLOCATION BY SECTOR

As of 4/30/17

Sector	Percentage of Total Investments*
Information Technology		31.07	%
Health Care		22.04
Consumer Discretionary		12.02
Industrials		10.37
Real Estate		9.52
Financials		5.12
Consumer Staples		3.30
Energy		3.16
Materials		2.03
Telecommunication Services		0.73
Utilities		0.64
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security	Percentage of Total Investments*
Colony NorthStar Inc. Class A		1.30	%
Take-Two Interactive Software Inc.		1.14
LogMeIn Inc.		1.07
Ionis Pharmaceuticals Inc.		1.05
Veeva Systems Inc.		0.99
Hudson Pacific Properties Inc.		0.96
Coherent Inc.		0.95
Exelixis Inc.		0.91
Eagle Materials Inc.		0.83
PrivateBancorp. Inc.		0.83
TOTAL		10.03	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 21

Management’s Discussion of Fund Performance

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.58%		20.50%		20.84%		20.58%		20.50%		20.84%
5 Years		13.39%		13.38%		13.59%		87.43%		87.36%		89.09%
10 Years		7.99%		7.90%		8.22%		115.75%		113.92%		120.29%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 24 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,158.90	$	1.61	$	1,000.00	$	1,023.30	$	1.51		0.30%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

The iShares Morningstar Small-Cap Value ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar^® Small Value Index^SM (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 20.58%, net of fees, while the total return for the Index was 20.84%.

As represented by the Index, small-capitalization U.S. value stocks posted a positive return for the reporting period, performing in line with small-capitalization U.S. growth stocks.

Eight of 11 sectors contributed to the Index’s return for the reporting period, led by the financials sector. The election of Donald Trump to the U.S. presidency drove expectations that the new administration’s fiscal policies would stimulate economic growth and reduce regulation. Those expectations, coupled with two interest rate increases by the Fed during the reporting period, led to gains in the banking and diversified financial services industries. Insurance stocks rose for the reporting period, reflecting rising interest rates and increasing premiums.

The information technology sector was also a large contributor to the Index’s return for the reporting period, as financial services and manufacturing companies continued to invest in cloud computing and data infrastructure. Growth in technology products with wireless connectivity drove demand for semiconductors stocks. Strong performances in the IT services and electronic equipment, instruments, and components industries also benefited the information technology sector.

The industrials and utilities sectors contributed modestly to the Index’s return for the reporting period. For the industrials sector, an expansion in manufacturing, increasing construction spending, and investors’ optimism contributed to a positive environment, while the utilities sector benefited in part from investors’ expectations of reduced regulation by new administration.

In contrast, the energy sector was the largest detractor from the Index’s return for the reporting period despite higher oil and gas prices.

ALLOCATION BY SECTOR

As of 4/30/17

Sector Percentage of
Total Investments*

Financials	25.96	%
Industrials	16.72
Consumer Discretionary	11.13
Utilities	9.29
Real Estate	8.24
Information Technology	7.61
Energy	7.14
Materials	5.89
Consumer Staples	4.46
Health Care	3.00
Telecommunication Services	0.56
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 4/30/17

Security Percentage of
Total Investments*

SLM Corp.	0.98	%
NRG Energy Inc.	0.97
Oshkosh Corp.	0.94
New Residential Investment Corp.	0.93
WPX Energy Inc.	0.86
Allied World Assurance Co. Holdings AG	0.84
FNB Corp./PA	0.83
Popular Inc.	0.79
WGL Holdings Inc.	0.77
United Bankshares Inc./WV	0.76
TOTAL	8.67	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 23

About Fund Performance

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on November 1, 2016 and held through April 30, 2017, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR LARGE-CAP ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.89%
AEROSPACE & DEFENSE — 5.58%
Boeing Co. (The)		80,903	$	14,953,302
General Dynamics Corp.		41,094		7,963,606
Lockheed Martin Corp.		35,989		9,697,236
Northrop Grumman Corp.		25,346		6,234,102
Raytheon Co.		42,557		6,605,272
				45,453,518
AIR FREIGHT & LOGISTICS — 2.14%
FedEx Corp.		35,587		6,750,854
United Parcel Service Inc. Class B		99,182		10,658,098
				17,408,952
AIRLINES — 1.22%
Delta Air Lines Inc.		106,919		4,858,399
Southwest Airlines Co.		90,188		5,070,370
				9,928,769
BANKS — 1.44%
U.S. Bancorp.		228,634		11,724,351
				11,724,351
BEVERAGES — 2.82%
PepsiCo Inc.		202,440		22,932,403
				22,932,403
BIOTECHNOLOGY — 3.93%
AbbVie Inc.		226,390		14,928,157
Amgen Inc.		104,553		17,075,596
				32,003,753
CHEMICALS — 3.28%
EI du Pont de Nemours & Co.		124,522		9,930,629
Monsanto Co.		63,575		7,413,481
PPG Industries Inc.		38,006		4,174,579
Praxair Inc.		41,770		5,220,415
				26,739,104
COMMERCIAL SERVICES & SUPPLIES — 0.53%
Waste Management Inc.		59,350		4,319,493
				4,319,493
ELECTRIC UTILITIES — 1.11%
NextEra Energy Inc.		67,497		9,014,899
				9,014,899

Security	Shares		Value
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.99%
Corning Inc.		137,534	$	3,967,856
TE Connectivity Ltd.		52,478		4,060,223
				8,028,079
ENERGY EQUIPMENT & SERVICES — 2.49%
Halliburton Co.		126,010		5,781,339
Schlumberger Ltd.		199,483		14,480,471
				20,261,810
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.89%
Ventas Inc.a		52,717		3,374,415
Welltower Inc.		53,803		3,843,686
				7,218,101
FOOD & STAPLES RETAILING — 1.97%
CVS Health Corp.		147,444		12,155,283
Sysco Corp.		73,538		3,887,954
				16,043,237
FOOD PRODUCTS — 2.15%
General Mills Inc.		84,875		4,881,161
Mondelez International Inc. Class A		220,016		9,907,321
Tyson Foods Inc. Class A		43,016		2,764,208
				17,552,690
HEALTH CARE EQUIPMENT & SUPPLIES —  4.67%
Abbott Laboratories		248,225		10,832,539
Danaher Corp.		88,320		7,359,706
Medtronic PLC		195,571		16,249,994
Zimmer Biomet Holdings Inc.		29,741		3,558,511
				38,000,750
HEALTH CARE PROVIDERS & SERVICES —  4.15%
Aetna Inc.		47,341		6,394,349
Cardinal Health Inc.		46,658		3,386,904
Cigna Corp.		37,486		5,861,686
Express Scripts Holding Co.b		88,318		5,417,426
HCA Holdings Inc.b		42,656		3,592,062
Humana Inc.		21,904		4,862,250
McKesson Corp.		31,149		4,307,595
				33,822,272
HOTELS, RESTAURANTS & LEISURE — 0.86%
Carnival Corp.		61,821		3,818,683
Las Vegas Sands Corp.		54,718		3,227,815
				7,046,498

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP ETF

April 30, 2017

Security	Shares		Value
HOUSEHOLD DURABLES — 0.42%
Newell Brands Inc.		71,691	$	3,422,528
				3,422,528
HOUSEHOLD PRODUCTS — 1.95%
Colgate-Palmolive Co.		127,228		9,165,505
Kimberly-Clark Corp.		51,611		6,696,527
				15,862,032
INDUSTRIAL CONGLOMERATES — 8.19%
3M Co.		84,646		16,576,226
General Electric Co.		1,236,391		35,842,975
Honeywell International Inc.		109,079		14,304,620
				66,723,821
INSURANCE — 1.10%
Marsh & McLennan Companies Inc.		75,172		5,572,501
Progressive Corp. (The)		86,367		3,430,497
				9,002,998
MACHINERY — 0.77%
Illinois Tool Works Inc.		45,406		6,270,115
				6,270,115
MEDIA — 3.87%
Charter Communications Inc. Class Ab		30,955		10,684,428
Omnicom Group Inc.		34,985		2,872,968
Time Warner Inc.		111,268		11,045,574
Twenty-First Century Fox Inc. Class A		154,142		4,707,497
Twenty-First Century Fox Inc. Class B		74,407		2,221,793
				31,532,260
METALS & MINING — 0.12%
Southern Copper Corp.		28,209		997,752
				997,752
MULTI-UTILITIES — 1.38%
Dominion Resources Inc./VA		91,104		7,054,183
Sempra Energy		36,825		4,161,961
				11,216,144
OIL, GAS & CONSUMABLE FUELS — 1.41%
EOG Resources Inc.		83,422		7,716,535
Williams Companies Inc. (The)		122,668		3,757,321
				11,473,856

Security	Shares		Value
PHARMACEUTICALS — 5.86%
Eli Lilly & Co.		139,492	$	11,446,714
Johnson & Johnson		293,943		36,293,142
				47,739,856
ROAD & RAIL — 2.22%
Norfolk Southern Corp.		42,561		5,000,492
Union Pacific Corp.		116,877		13,085,549
				18,086,041
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 4.37%
Intel Corp.		670,521		24,239,334
QUALCOMM Inc.		211,922		11,388,688
				35,628,022
SOFTWARE — 11.55%
Microsoft Corp.		1,094,313		74,916,668
Oracle Corp.		425,303		19,121,623
				94,038,291
SPECIALTY RETAIL — 0.24%
L Brands Inc.		37,258		1,967,595
				1,967,595
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 13.10%
Apple Inc.		742,798		106,702,933
				106,702,933
TEXTILES, APPAREL & LUXURY GOODS — 0.33%
VF Corp.		49,970		2,729,861
				2,729,861
TOBACCO — 2.43%
Altria Group Inc.		275,200		19,753,856
				19,753,856
WIRELESS TELECOMMUNICATION SERVICES — 0.36%
T-Mobile U.S. Inc.b		43,459		2,923,487
				2,923,487
TOTAL COMMON STOCKS
(Cost: $662,571,395)				813,570,127
SHORT-TERM INVESTMENTS — 0.11%
MONEY MARKET FUNDS — 0.11%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		387,409		387,563

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP ETF

April 30, 2017

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		504,487	$	504,487
				892,050
TOTAL SHORT-TERM INVESTMENTS
(Cost: $892,050)				892,050
TOTAL INVESTMENTS IN SECURITIES — 100.00% (Cost: $663,463,445)f				814,462,177
Other Assets, Less Liabilities — 0.00%				(28,962	)
NET ASSETS — 100.00%			$	814,433,215

^a All or a portion of this security represents a security on loan. See Note 1.

^b Non-income earning security.

^c Affiliated money market fund.

^d The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f The cost of investments for federal income tax purposes was $667,077,293. Net unrealized appreciation was $147,384,884, of which $155,387,075 represented gross unrealized appreciation on securities and $8,002,191 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	813,570,127	$	—	$	—	$	813,570,127
Money market funds		892,050		—		—		892,050
Total	$	814,462,177	$	—	$	—	$	814,462,177

See notes to financial statements.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.88%
AUTOMOBILES — 0.65%
Tesla Inc.a,b		15,222	$	4,780,774
				4,780,774
BEVERAGES — 1.11%
Constellation Brands Inc. Class A		21,194		3,656,813
Molson Coors Brewing Co. Class B		22,605		2,167,593
Monster Beverage Corp.a		49,321		2,238,187
				8,062,593
BIOTECHNOLOGY — 4.09%
Alexion Pharmaceuticals Inc.a		27,569		3,522,767
Biogen Inc.a		26,516		7,191,404
Celgene Corp.a		95,488		11,845,287
Regeneron Pharmaceuticals Inc.a		9,332		3,625,389
Vertex Pharmaceuticals Inc.a		30,498		3,607,913
				29,792,760
CAPITAL MARKETS — 4.59%
Bank of New York Mellon Corp. (The)		127,414		5,996,103
BlackRock Inc.c		14,944		5,747,014
Charles Schwab Corp. (The)		149,197		5,796,303
CME Group Inc.		41,713		4,846,634
Intercontinental Exchange Inc.		73,117		4,401,643
Moody’s Corp.		20,404		2,414,201
S&P Global Inc.		31,720		4,256,507
				33,458,405
CHEMICALS — 1.54%
Air Products & Chemicals Inc.		26,725		3,754,863
Ecolab Inc.		32,260		4,164,443
Sherwin-Williams Co. (The)		9,959		3,333,078
				11,252,384
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.30%
Level 3 Communications Inc.a		35,925		2,182,803
				2,182,803
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.37%
Amphenol Corp. Class A		37,785		2,732,233
				2,732,233
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 4.91%
American Tower Corp.		52,465		6,607,442
AvalonBay Communities Inc.		16,844		3,197,665

Security	Shares		Value
Boston Properties Inc.		18,861	$	2,387,803
Crown Castle International Corp.		44,257		4,186,712
Equinix Inc.		9,539		3,984,440
GGP Inc.		71,668		1,548,745
Prologis Inc.		64,991		3,536,160
Public Storage		18,339		3,839,820
Simon Property Group Inc.		39,279		6,491,248
				35,780,035
FOOD & STAPLES RETAILING — 2.56%
Costco Wholesale Corp.		53,908		9,569,748
Walgreens Boots Alliance Inc.		104,728		9,063,161
				18,632,909
FOOD PRODUCTS — 1.07%
Hormel Foods Corp.		33,139		1,162,516
Kraft Heinz Co. (The)		73,246		6,620,706
				7,783,222
HEALTH CARE EQUIPMENT & SUPPLIES — 3.35%
Baxter International Inc.		59,635		3,320,477
Becton Dickinson and Co.		26,132		4,885,900
Boston Scientific Corp.a		167,408		4,416,223
Edwards Lifesciences Corp.a		26,055		2,857,452
Intuitive Surgical Inc.a		4,506		3,766,430
Stryker Corp.		38,004		5,182,605
				24,429,087
HEALTH CARE PROVIDERS & SERVICES — 2.83%
UnitedHealth Group Inc.		118,121		20,657,001
				20,657,001
HEALTH CARE TECHNOLOGY — 0.32%
Cerner Corp.a		36,085		2,336,504
				2,336,504
HOTELS, RESTAURANTS & LEISURE — 4.46%
Hilton Worldwide Holdings Inc.		23,512		1,386,503
Marriott International Inc./MD Class A		38,600		3,644,612
McDonald’s Corp.		100,529		14,067,023
Starbucks Corp.		178,866		10,742,692
Yum! Brands Inc.		41,226		2,710,609
				32,551,439
INSURANCE — 0.53%
Aon PLC		32,251		3,864,960
				3,864,960
INTERNET & DIRECT MARKETING RETAIL — 8.80%
Amazon.com Inc.a		48,623		44,975,789

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
Netflix Inc.a		52,861	$	8,045,444
Priceline Group Inc. (The)a		6,035		11,145,559
				64,166,792
INTERNET SOFTWARE & SERVICES — 15.81%
Alphabet Inc. Class Aa		36,477		33,723,716
Alphabet Inc. Class Ca		36,278		32,866,417
Facebook Inc. Class Aa		289,143		43,443,736
Yahoo! Inc.a		107,767		5,195,447
				115,229,316
IT SERVICES — 9.72%
Accenture PLC Class A		76,468		9,275,568
Automatic Data Processing Inc.		55,132		5,760,743
Cognizant Technology Solutions Corp. Class Aa		74,725		4,500,687
Fidelity National Information Services Inc.		40,352		3,397,235
Fiserv Inc.a		26,323		3,136,122
FleetCor Technologies Inc.a		11,389		1,607,443
MasterCard Inc. Class A		115,647		13,452,059
Paychex Inc.		39,152		2,320,930
PayPal Holdings Inc.a		137,926		6,581,829
Visa Inc. Class A		228,108		20,808,012
				70,840,628
LIFE SCIENCES TOOLS & SERVICES —  1.54%
Illumina Inc.a		17,949		3,318,052
Thermo Fisher Scientific Inc.		47,945		7,926,747
				11,244,799
MEDIA — 6.51%
CBS Corp. Class B NVS		45,623		3,036,667
Comcast Corp. Class A		581,033		22,770,683
Sirius XM Holdings Inc.b		208,732		1,033,223
Walt Disney Co. (The)		178,599		20,646,045
				47,486,618
MULTILINE RETAIL — 0.31%
Dollar General Corp.		31,248		2,272,042
				2,272,042
OIL, GAS & CONSUMABLE FUELS — 3.89%
Chevron Corp.		232,415		24,798,680
Pioneer Natural Resources Co.		20,828		3,603,036
				28,401,716
PERSONAL PRODUCTS — 0.33%
Estee Lauder Companies Inc. (The) Class A		27,267		2,376,046
				2,376,046

Security	Shares		Value
PHARMACEUTICALS — 3.42%
Allergan PLC		41,170	$	10,039,716
Bristol-Myers Squibb Co.		205,307		11,507,458
Zoetis Inc.		60,366		3,387,136
				24,934,310
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 4.60%
Applied Materials Inc.		132,618		5,385,617
Broadcom Ltd.		49,221		10,868,489
NVIDIA Corp.		72,337		7,544,749
Texas Instruments Inc.		122,682		9,713,961
				33,512,816
SOFTWARE — 3.68%
Activision Blizzard Inc.		84,913		4,436,704
Adobe Systems Inc.a		60,875		8,141,422
Electronic Arts Inc.a		37,828		3,586,851
Intuit Inc.		29,823		3,734,138
salesforce.com Inc.a		80,431		6,926,718
				26,825,833
SPECIALTY RETAIL — 6.45%
AutoZone Inc.a		3,492		2,417,128
Home Depot Inc. (The)		149,553		23,345,223
Lowe’s Companies Inc.		106,357		9,027,582
O’Reilly Automotive Inc.a		11,243		2,789,951
Ross Stores Inc.		48,358		3,143,270
TJX Companies Inc. (The)		80,058		6,295,761
				47,018,915
TEXTILES, APPAREL & LUXURY GOODS — 1.24%
NIKE Inc. Class B		162,756		9,018,310
				9,018,310
TOBACCO — 0.90%
Reynolds American Inc.		101,556		6,550,362
				6,550,362
TOTAL COMMON STOCKS
(Cost: $523,837,818)				728,175,612
SHORT-TERM INVESTMENTS — 0.90%
MONEY MARKET FUNDS — 0.90%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		5,943,789		5,946,166

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		577,634	$	577,634
				6,523,800
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,522,383)				6,523,800
TOTAL INVESTMENTS IN SECURITIES — 100.78%
(Cost: $530,360,201)g				734,699,412
Other Assets, Less Liabilities — (0.78)%				(5,673,286	)
NET ASSETS — 100.00%			$	729,026,126

NVS  —  Non-Voting Shares

^a Non-income earning security.

^b All or a portion of this security represents a security on loan. See Note 1.

^c Affiliated issuer. See Schedule 1.

^d Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $532,805,503. Net unrealized appreciation was $201,893,909, of which $210,882,287 represented gross unrealized appreciation on securities and $8,988,378 represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
BlackRock Inc.		17,859		2,302		(5,217	)		14,944	$	5,747,014	$	159,576	$	522,536

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	728,175,612	$	—	$	—	$	728,175,612
Money market funds		6,523,800		—		—		6,523,800
Total	$	734,699,412	$	—	$	—	$	734,699,412

See notes to financial statements.

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR LARGE-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.89%
AEROSPACE & DEFENSE — 1.53%
United Technologies Corp.		48,867	$	5,814,684
				5,814,684
AIRLINES — 0.37%
American Airlines Group Inc.		32,881		1,401,388
				1,401,388
AUTOMOBILES — 1.58%
Ford Motor Co.		254,518		2,919,321
General Motors Co.		88,882		3,078,873
				5,998,194
BANKS — 18.38%
Bank of America Corp.		653,671		15,256,681
BB&T Corp.		52,710		2,276,018
Citigroup Inc.		180,659		10,680,560
JPMorgan Chase & Co.		232,904		20,262,648
PNC Financial Services Group Inc. (The)a		31,698		3,795,836
SunTrust Banks Inc.		32,042		1,820,306
Wells Fargo & Co.		293,613		15,808,124
				69,900,173
BEVERAGES — 2.86%
Coca-Cola Co. (The)		251,953		10,871,772
				10,871,772
BIOTECHNOLOGY — 1.54%
Gilead Sciences Inc.		85,225		5,842,174
				5,842,174
BUILDING PRODUCTS — 0.67%
Johnson Controls International PLC		61,207		2,544,375
				2,544,375
CAPITAL MARKETS — 3.26%
Franklin Resources Inc.		22,446		967,647
Goldman Sachs Group Inc. (The)		24,157		5,406,336
Morgan Stanley		93,694		4,063,509
State Street Corp.		23,410		1,964,099
				12,401,591
CHEMICALS — 1.68%
Dow Chemical Co. (The)		72,783		4,570,772
LyondellBasell Industries NV Class A		21,522		1,824,205
				6,394,977

Security	Shares		Value
COMMUNICATIONS EQUIPMENT — 2.92%
Cisco Systems Inc.		326,529	$	11,124,843
				11,124,843
CONSUMER FINANCE — 2.47%
American Express Co.		49,363		3,912,018
Capital One Financial Corp.		31,339		2,519,029
Discover Financial Services		25,138		1,573,387
Synchrony Financial		50,223		1,396,199
				9,400,633
DIVERSIFIED FINANCIAL SERVICES — 5.38%
Berkshire Hathaway Inc. Class Bb		123,840		20,459,606
				20,459,606
DIVERSIFIED TELECOMMUNICATION SERVICES — 7.38%
AT&T Inc.		400,451		15,869,873
Verizon Communications Inc.		265,787		12,202,281
				28,072,154
ELECTRIC UTILITIES — 4.82%
American Electric Power Co. Inc.		32,061		2,174,698
Duke Energy Corp.		45,617		3,763,402
Edison International		21,244		1,698,883
Exelon Corp.		60,417		2,092,241
PG&E Corp.		33,051		2,216,069
PPL Corp.		44,321		1,689,073
Southern Co. (The)		64,620		3,218,076
Xcel Energy Inc.		33,079		1,490,209
				18,342,651
ELECTRICAL EQUIPMENT — 1.25%
Eaton Corp. PLC		29,322		2,217,916
Emerson Electric Co.		42,060		2,535,377
				4,753,293
ENERGY EQUIPMENT & SERVICES — 0.43%
Baker Hughes Inc.		27,733		1,646,508
				1,646,508
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.84%
Equity Residential		23,937		1,545,852
Weyerhaeuser Co.		48,837		1,654,109
				3,199,961
FOOD & STAPLES RETAILING — 2.41%
Kroger Co. (The)		60,248		1,786,353
Wal-Mart Stores Inc.		98,187		7,381,699
				9,168,052

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
FOOD PRODUCTS — 1.03%
Archer-Daniels-Midland Co.		37,236	$	1,703,547
Conagra Brands Inc.		26,991		1,046,711
Kellogg Co.		16,455		1,168,305
				3,918,563
HEALTH CARE PROVIDERS & SERVICES — 0.81%
Anthem Inc.		17,238		3,066,468
				3,066,468
HOUSEHOLD PRODUCTS — 3.83%
Procter & Gamble Co. (The)		166,691		14,557,125
				14,557,125
INSURANCE — 5.43%
Aflac Inc.		26,174		1,959,909
Allstate Corp. (The)		23,808		1,935,352
American International Group Inc.		60,677		3,695,836
Chubb Ltd.		30,370		4,168,283
MetLife Inc.		70,893		3,672,966
Prudential Financial Inc.		28,037		3,000,800
Travelers Companies Inc. (The)		18,236		2,218,592
				20,651,738
INTERNET SOFTWARE & SERVICES — 0.58%
eBay Inc.b		65,917		2,202,287
				2,202,287
IT SERVICES — 2.36%
International Business Machines Corp.		55,966		8,970,790
				8,970,790
MACHINERY — 2.39%
Caterpillar Inc.		38,241		3,910,525
Cummins Inc.		10,088		1,522,683
Deere & Co.		19,109		2,132,755
PACCAR Inc.		22,882		1,526,916
				9,092,879
MULTI-UTILITIES — 0.80%
Consolidated Edison Inc.		19,891		1,576,958
Public Service Enterprise Group Inc.		33,013		1,454,223
				3,031,181
MULTILINE RETAIL — 0.53%
Target Corp.		36,263		2,025,289
				2,025,289

Security	Shares		Value
OIL, GAS & CONSUMABLE FUELS — 10.73%
Anadarko Petroleum Corp.		36,447	$	2,078,208
Apache Corp.		24,707		1,201,749
ConocoPhillips		80,580		3,860,588
Exxon Mobil Corp.		270,366		22,075,384
Kinder Morgan Inc./DE		125,184		2,582,546
Marathon Petroleum Corp.		34,413		1,752,998
Occidental Petroleum Corp.		49,834		3,066,784
Phillips 66		28,764		2,288,464
Valero Energy Corp.		29,410		1,900,180
				40,806,901
PHARMACEUTICALS — 6.69%
Merck & Co. Inc.		179,020		11,158,317
Mylan NVb		30,028		1,121,546
Pfizer Inc.		388,082		13,163,741
				25,443,604
ROAD & RAIL — 0.81%
CSX Corp.		60,407		3,071,092
				3,071,092
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 1.08%
Hewlett Packard Enterprise Co.		108,552		2,022,324
HP Inc.		110,414		2,077,991
				4,100,315
TOBACCO — 2.95%
Philip Morris International Inc.		101,155		11,212,020
				11,212,020
WIRELESS TELECOMMUNICATION SERVICES — 0.10%
Sprint Corp.b		41,720		376,732
				376,732
TOTAL COMMON STOCKS (Cost: $336,733,481)				379,864,013
SHORT-TERM INVESTMENTS — 0.18%
MONEY MARKET FUNDS — 0.18%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		663,156		663,156
				663,156
TOTAL SHORT-TERM INVESTMENTS
(Cost: $663,156)				663,156

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR LARGE-CAP VALUE ETF

April 30, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.07%
(Cost: $337,396,637)e	$	380,527,169
Other Assets, Less Liabilities — (0.07)%		(259,339	)
NET ASSETS — 100.00%	$	380,267,830

^a Affiliated issuer. See Schedule 1.

^b Non-income earning security.

^c  Affiliated money market fund.

^d The rate quoted is the annualized seven-day yield of the fund at period end.

^e The cost of investments for federal income tax purposes was $339,947,914. Net unrealized appreciation was $40,579,255, of which $52,871,808 represented gross unrealized appreciation on securities and $12,292,553 represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
PNC Financial Services Group Inc. (The)		27,233		8,363		(3,898	)		31,698	$	3,795,836	$	66,556	$	46,555

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	379,864,013	$	—	$	—	$	379,864,013
Money market funds		663,156		—		—		663,156
Total	$	380,527,169	$	—	$	—	$	380,527,169

See notes to financial statements.

SCHEDULES OF INVESTMENTS 33

Schedule of Investments

iSHARES^® MORNINGSTAR MID-CAP ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.87%
AEROSPACE & DEFENSE — 2.44%
BWX Technologies Inc.		41,219	$	2,026,738
Huntington Ingalls Industries Inc.		18,942		3,805,258
L3 Technologies Inc.		32,015		5,499,217
Rockwell Collins Inc.		66,708		6,943,636
				18,274,849
AIR FREIGHT & LOGISTICS — 1.12%
CH Robinson Worldwide Inc.		58,171		4,229,032
Expeditors International of Washington Inc.		74,121		4,157,447
				8,386,479
AIRLINES — 0.58%
Alaska Air Group Inc.		50,808		4,323,253
				4,323,253
AUTO COMPONENTS — 1.52%
Delphi Automotive PLC		110,926		8,918,451
Gentex Corp.		119,162		2,460,695
				11,379,146
AUTOMOBILES — 0.26%
Thor Industries Inc.		19,878		1,911,866
				1,911,866
BANKS — 4.66%
Citizens Financial Group Inc.		209,501		7,690,782
Comerica Inc.		72,367		5,116,347
Commerce Bancshares Inc./MO		36,292		1,994,245
Cullen/Frost Bankers Inc.		23,322		2,201,364
East West Bancorp. Inc.		59,326		3,219,622
PacWest Bancorp.		49,270		2,433,445
People’s United Financial Inc.		142,044		2,481,509
Prosperity Bancshares Inc.		28,854		1,938,989
SVB Financial Groupa		21,526		3,787,284
Synovus Financial Corp.		50,268		2,101,202
Western Alliance Bancorp.a		39,285		1,881,752
				34,846,541
BEVERAGES — 0.92%
Dr Pepper Snapple Group Inc.		75,345		6,905,369
				6,905,369
BIOTECHNOLOGY — 0.79%
Bioverativ Inc.a		44,371		2,609,459
OPKO Health Inc.a,b		150,786		1,171,607
TESARO Inc.a		14,205		2,096,516
				5,877,582

Security	Shares		Value
BUILDING PRODUCTS — 0.53%
Owens Corning		46,195	$	2,810,966
USG Corp.a		37,774		1,144,552
				3,955,518
CAPITAL MARKETS — 3.33%
Affiliated Managers Group Inc.		23,333		3,863,712
Eaton Vance Corp. NVS		47,694		2,047,503
Northern Trust Corp.		88,500		7,965,000
Raymond James Financial Inc.		52,623		3,921,466
T Rowe Price Group Inc.		100,166		7,100,768
				24,898,449
CHEMICALS — 3.02%
Albemarle Corp.		46,321		5,044,820
Ashland Global Holdings Inc.		25,603		3,161,971
FMC Corp.		55,014		4,028,675
NewMarket Corp.		3,843		1,808,900
RPM International Inc.		54,904		2,885,754
Valspar Corp. (The)		30,080		3,382,195
Valvoline Inc.b		13,243		294,657
WR Grace & Co.		28,395		1,979,699
				22,586,671
COMMERCIAL SERVICES & SUPPLIES — 1.53%
KAR Auction Services Inc.		56,789		2,477,136
Republic Services Inc.		94,896		5,977,499
Stericycle Inc.a		34,972		2,984,511
				11,439,146
COMMUNICATIONS EQUIPMENT — 1.36%
ARRIS International PLCa		78,981		2,052,716
CommScope Holding Co. Inc.a		79,810		3,355,213
Juniper Networks Inc.		157,188		4,726,643
				10,134,572
CONSUMER FINANCE — 0.14%
Credit Acceptance Corp.a,b		5,142		1,045,111
				1,045,111
CONTAINERS & PACKAGING — 1.04%
AptarGroup Inc.		25,619		2,057,206
Avery Dennison Corp.		36,802		3,062,294
Berry Global Group Inc.a		52,610		2,630,500
				7,750,000
DIVERSIFIED FINANCIAL SERVICES — 0.50%
FNFV Groupa		28,080		384,696
Leucadia National Corp.		133,256		3,383,370
				3,768,066

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP ETF

April 30, 2017

Security	Shares		Value
ELECTRICAL EQUIPMENT — 1.43%
Hubbell Inc.		21,195	$	2,397,790
Rockwell Automation Inc.		52,920		8,326,962
				10,724,752
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.65%
CDW Corp./DE		66,050		3,902,894
Flex Ltd.a		220,247		3,405,019
SYNNEX Corp.		12,144		1,316,774
Trimble Inc.a		103,816		3,678,201
				12,302,888
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 11.73%
Alexandria Real Estate Equities Inc.b		36,573		4,114,828
American Campus Communities Inc.		54,786		2,596,309
Apartment Investment & Management Co. Class A		64,539		2,822,936
Brixmor Property Group Inc.		108,601		2,144,870
DDR Corp.		128,046		1,384,177
Digital Realty Trust Inc.b		65,539		7,526,499
Duke Realty Corp.		146,314		4,057,287
EPR Properties		26,349		1,915,836
Equity Lifestyle Properties Inc.		33,524		2,712,427
Gaming and Leisure Properties Inc.		80,758		2,810,378
Healthcare Trust of America Inc. Class A		58,897		1,878,225
Host Hotels & Resorts Inc.b		304,206		5,460,498
Iron Mountain Inc.		100,927		3,508,223
Kimco Realty Corp.		175,149		3,553,773
Lamar Advertising Co. Class Ab		34,348		2,475,460
Liberty Property Trust		60,418		2,451,158
Life Storage Inc.		19,306		1,513,397
Macerich Co. (The)		49,743		3,105,455
Medical Properties Trust Inc.b		133,231		1,741,329
National Retail Properties Inc.		60,518		2,555,070
Realty Income Corp.b		111,562		6,509,643
Senior Housing Properties Trust		97,317		2,094,262
SL Green Realty Corp.b		41,389		4,342,948
STORE Capital Corp.b		69,977		1,678,748
Taubman Centers Inc.b		25,130		1,571,881
Vornado Realty Trustb		70,836		6,817,257
Weingarten Realty Investors		49,010		1,606,058

Security	Shares		Value
WP Carey Inc.		43,685	$	2,734,681
				87,683,613
FOOD & STAPLES RETAILING — 0.37%
Rite Aid Corp.a		436,920		1,747,680
U.S. Foods Holding Corp.a		37,006		1,043,569
				2,791,249
FOOD PRODUCTS — 2.92%
Hershey Co. (The)		57,468		6,218,037
JM Smucker Co. (The)		47,910		6,071,155
Mead Johnson Nutrition Co.		75,482		6,696,763
Pinnacle Foods Inc.		48,564		2,823,997
				21,809,952
HEALTH CARE EQUIPMENT & SUPPLIES — 2.47%
DENTSPLY SIRONA Inc.		94,515		5,977,129
Hologic Inc.a		114,932		5,189,180
Teleflex Inc.		18,479		3,823,120
Varian Medical Systems Inc.a		38,462		3,490,042
				18,479,471
HEALTH CARE PROVIDERS & SERVICES — 3.72%
AmerisourceBergen Corp.		67,954		5,575,626
DaVita Inc.a		64,063		4,420,987
Laboratory Corp. of America Holdingsa		42,097		5,899,894
Patterson Companies Inc.		34,273		1,524,806
Quest Diagnostics Inc.		56,580		5,969,756
Universal Health Services Inc. Class B		36,754		4,438,413
				27,829,482
HOTELS, RESTAURANTS & LEISURE — 2.74%
Aramark		101,168		3,694,655
Darden Restaurants Inc.		51,095		4,352,783
Royal Caribbean Cruises Ltd.		68,947		7,349,750
Yum China Holdings Inc.a		149,862		5,113,292
				20,510,480
HOUSEHOLD DURABLES — 3.82%
DR Horton Inc.		139,832		4,599,074
Leggett & Platt Inc.		54,973		2,888,281
Lennar Corp. Class A		83,613		4,222,457
Lennar Corp. Class B		4,346		185,183
Mohawk Industries Inc.a		25,949		6,092,566
PulteGroup Inc.		117,575		2,665,425
Toll Brothers Inc.		60,838		2,189,560
Whirlpool Corp.		30,653		5,691,649
				28,534,195

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP ETF

April 30, 2017

Security	Shares		Value
HOUSEHOLD PRODUCTS — 0.94%
Clorox Co. (The)		52,782	$	7,056,426
				7,056,426
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.20%
Calpine Corp.a		149,120		1,521,024
				1,521,024
INSURANCE — 6.31%
Alleghany Corp.a		5,713		3,488,929
Arch Capital Group Ltd.a		50,489		4,895,918
Arthur J Gallagher & Co.		73,502		4,102,147
Assured Guaranty Ltd.		53,588		2,043,310
First American Financial Corp.		45,390		1,970,380
FNF Group		111,909		4,582,674
Markel Corp.a		5,758		5,582,957
RenaissanceRe Holdings Ltd.		8,250		1,172,902
Torchmark Corp.		45,067		3,457,090
White Mountains Insurance Group Ltd.		1,899		1,631,127
Willis Towers Watson PLC		52,424		6,952,471
WR Berkley Corp.		39,858		2,709,547
XL Group Ltd.		109,037		4,563,198
				47,152,650
INTERNET & DIRECT MARKETING RETAIL — 0.76%
Liberty Interactive Corp. QVC Group Series Aa		182,545		3,866,303
Liberty Ventures Series Aa		33,717		1,815,660
				5,681,963
INTERNET SOFTWARE & SERVICES — 0.34%
IAC/InterActiveCorpa		30,211		2,507,815
				2,507,815
IT SERVICES — 2.59%
Alliance Data Systems Corp.		23,014		5,744,985
Booz Allen Hamilton Holding Corp.		61,635		2,214,546
DXC Technology Co.a		116,819		8,801,143
First Data Corp. Class Aa		78,764		1,230,294
Genpact Ltd.		56,420		1,377,776
				19,368,744
LEISURE PRODUCTS — 0.70%
Brunswick Corp./DE		36,840		2,090,670
Mattel Inc.		140,918		3,159,382
				5,250,052
LIFE SCIENCES TOOLS & SERVICES — 1.94%
Agilent Technologies Inc.		132,529		7,295,721

Security	Shares		Value
PerkinElmer Inc.		45,126	$	2,680,936
Quintiles IMS Holdings Inc.a,b		53,397		4,500,299
				14,476,956
MACHINERY — 5.01%
Allison Transmission Holdings Inc.		62,427		2,414,676
Donaldson Co. Inc.		54,279		2,512,032
Ingersoll-Rand PLC		106,790		9,477,612
Lincoln Electric Holdings Inc.		25,422		2,263,321
Pentair PLC		68,804		4,438,546
Snap-on Inc.		23,855		3,996,428
Stanley Black & Decker Inc.		62,790		8,548,859
Xylem Inc./NY		73,854		3,796,834
				37,448,308
MEDIA — 3.36%
Cinemark Holdings Inc.		43,934		1,897,949
Discovery Communications Inc. Class Aa		63,492		1,827,300
Discovery Communications Inc. Class C NVSa		88,779		2,484,036
DISH Network Corp. Class Aa		93,378		6,017,278
Interpublic Group of Companies Inc. (The)		161,594		3,808,771
Liberty Broadband Corp. Class Aa		10,959		985,543
Liberty Broadband Corp. Class Ca		27,670		2,522,397
News Corp. Class A		158,520		2,016,374
News Corp. Class B		50,192		652,496
Scripps Networks Interactive Inc. Class A		39,312		2,937,393
				25,149,537
METALS & MINING — 2.07%
Newmont Mining Corp.		218,715		7,394,754
Nucor Corp.		131,208		8,046,987
				15,441,741
MULTI-UTILITIES — 1.05%
WEC Energy Group Inc.		129,866		7,859,490
				7,859,490
OIL, GAS & CONSUMABLE FUELS — 2.74%
Cimarex Energy Co.		39,143		4,567,205
Concho Resources Inc.a		60,970		7,722,460
Continental Resources Inc./OKa,b		35,783		1,517,557
Energen Corp.a		40,303		2,095,353
ONEOK Inc.		86,728		4,562,760
				20,465,335

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP ETF

April 30, 2017

Security	Shares		Value
PHARMACEUTICALS — 0.27%
Mallinckrodt PLCa		43,555	$	2,043,601
				2,043,601
PROFESSIONAL SERVICES — 1.08%
Nielsen Holdings PLC		138,302		5,688,361
Robert Half International Inc.		52,528		2,418,915
				8,107,276
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.59%
CBRE Group Inc. Class Aa		123,726		4,430,628
				4,430,628
ROAD & RAIL — 0.76%
Genesee & Wyoming Inc. Class Aa		25,451		1,724,560
Kansas City Southern		43,885		3,952,722
				5,677,282
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 6.44%
Analog Devices Inc.		149,771		11,412,550
Lam Research Corp.		67,011		9,706,543
Maxim Integrated Products Inc.		116,329		5,135,925
Microchip Technology Inc.b		89,063		6,731,382
Microsemi Corp.a		47,449		2,227,256
Qorvo Inc.a,b		52,037		3,540,077
Teradyne Inc.		82,425		2,907,130
Xilinx Inc.		102,438		6,464,862
				48,125,725
SOFTWARE — 1.69%
Symantec Corp.		254,654		8,054,706
Synopsys Inc.a		61,931		4,564,315
				12,619,021
SPECIALTY RETAIL — 2.74%
Cabela’s Inc.a		21,422		1,169,641
CarMax Inc.a,b		76,999		4,504,442
Dick’s Sporting Goods Inc.		36,558		1,848,007
Foot Locker Inc.		54,469		4,212,632
Michaels Companies Inc. (The)a		43,757		1,022,164
Signet Jewelers Ltd.		28,905		1,903,105
Tiffany & Co.		44,044		4,036,633
Williams-Sonoma Inc.		33,607		1,816,458
				20,513,082
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.28%
NCR Corp.a		51,214		2,112,577
				2,112,577

Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 0.44%
PVH Corp.		32,619	$	3,295,498
				3,295,498
TRADING COMPANIES & DISTRIBUTORS — 1.53%
HD Supply Holdings Inc.a		82,827		3,337,928
United Rentals Inc.a		34,695		3,804,654
WW Grainger Inc.		22,275		4,292,392
				11,434,974
TRANSPORTATION INFRASTRUCTURE — 0.34%
Macquarie Infrastructure Corp.		31,091		2,529,875
				2,529,875
WATER UTILITIES — 1.11%
American Water Works Co. Inc.		73,337		5,849,359
Aqua America Inc.		72,935		2,413,419
				8,262,778
TOTAL COMMON STOCKS
(Cost: $644,447,494)				746,681,058
SHORT-TERM INVESTMENTS — 4.55%
MONEY MARKET FUNDS — 4.55%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		33,366,332		33,379,679
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		623,456		623,456
				34,003,135
TOTAL SHORT-TERM INVESTMENTS
(Cost: $33,999,245)				34,003,135
TOTAL INVESTMENTS IN SECURITIES — 104.42%
(Cost: $678,446,739)f				780,684,193
Other Assets, Less Liabilities — (4.42)%				(33,077,313	)
NET ASSETS — 100.00%			$	747,606,880

NVS —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $686,213,455. Net unrealized appreciation was $94,470,738, of which $117,628,376 represented gross unrealized appreciation on securities and $23,157,638 represented gross unrealized depreciation on securities.

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP ETF

April 30, 2017

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	746,681,058	$	—	$	—	$	746,681,058
Money market funds		34,003,135		—		—		34,003,135
Total	$	780,684,193	$	—	$	—	$	780,684,193

See notes to financial statements.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.92%
AEROSPACE & DEFENSE — 2.19%
HEICO Corp.		3,603	$	256,065
HEICO Corp. Class A		6,096		373,685
Hexcel Corp.		12,448		644,184
Textron Inc.		36,740		1,714,289
TransDigm Group Inc.		6,758		1,667,401
				4,655,624
BANKS — 2.45%
Bank of the Ozarks Inc.		12,402		588,723
First Republic Bank/CA		20,977		1,939,533
Investors Bancorp. Inc.		42,073		582,711
Signature Bank/New York NYa		7,302		1,010,962
Zions BanCorp.		27,535		1,102,226
				5,224,155
BEVERAGES — 0.71%
Brown-Forman Corp. Class A		7,820		375,829
Brown-Forman Corp. Class B		24,063		1,138,661
				1,514,490
BIOTECHNOLOGY — 3.71%
Alkermes PLCa		20,751		1,208,746
BioMarin Pharmaceutical Inc.a		23,396		2,242,273
Dyax Corp.a		23,054		52,794
Incyte Corp.a		23,012		2,859,931
Neurocrine Biosciences Inc.a,b		11,850		632,790
Seattle Genetics Inc.a,b		13,181		900,262
				7,896,796
BUILDING PRODUCTS — 2.78%
Allegion PLC		12,987		1,021,298
AO Smith Corp.		20,034		1,079,432
Fortune Brands Home & Security Inc.		20,824		1,327,322
Lennox International Inc.		5,262		870,282
Masco Corp.		43,574		1,613,109
				5,911,443
CAPITAL MARKETS — 3.57%
CBOE Holdings Inc.		12,479		1,028,394
E*TRADE Financial Corp.a		37,365		1,290,961
FactSet Research Systems Inc.		5,382		878,665
MarketAxess Holdings Inc.		5,118		985,317
MSCI Inc.		12,317		1,235,641
SEI Investments Co.		18,188		922,314
TD Ameritrade Holding Corp.		33,028		1,263,982
				7,605,274

Security	Shares		Value
CHEMICALS — 1.41%
Axalta Coating Systems Ltd.a		29,439	$	923,502
International Flavors & Fragrances Inc.		10,752		1,490,120
Scotts Miracle-Gro Co. (The) Class A		6,024		581,918
				2,995,540
COMMERCIAL SERVICES & SUPPLIES — 1.32%
Cintas Corp.		11,716		1,434,859
Copart Inc.a		27,809		859,298
Rollins Inc.		13,050		506,731
				2,800,888
COMMUNICATIONS EQUIPMENT — 1.63%
Arista Networks Inc.a,b		5,699		795,808
F5 Networks Inc.a		8,813		1,138,023
Palo Alto Networks Inc.a		12,472		1,352,090
Ubiquiti Networks Inc.a,b		3,450		177,744
				3,463,665
CONSTRUCTION MATERIALS — 1.91%
Martin Marietta Materials Inc.		8,579		1,889,010
Vulcan Materials Co.		18,004		2,176,324
				4,065,334
CONTAINERS & PACKAGING — 0.27%
Graphic Packaging Holding Co.		42,454		576,525
				576,525
DISTRIBUTORS — 0.93%
LKQ Corp.a		41,898		1,308,893
Pool Corp.		5,598		669,633
				1,978,526
DIVERSIFIED CONSUMER SERVICES — 0.93%
Bright Horizons Family Solutions Inc.a,b		5,985		455,578
Service Corp. International/U.S.		25,605		824,993
ServiceMaster Global Holdings Inc.a		18,331		698,411
				1,978,982
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.22%
Zayo Group Holdings Inc.a		13,282		465,800
				465,800
ELECTRICAL EQUIPMENT — 1.79%
Acuity Brands Inc.		5,998		1,056,248
AMETEK Inc.		31,216		1,785,555
Sensata Technologies Holding NVa,b		23,242		957,106
				3,798,909

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.09%
Cognex Corp.		11,706	$	998,990
FLIR Systems Inc.		18,547		681,231
IPG Photonics Corp.a,b		5,096		643,727
				2,323,948
ENERGY EQUIPMENT & SERVICES — 0.31%
Core Laboratories NV		6,000		664,920
				664,920
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 7.86%
American Homes 4 Rent Class A		31,698		730,639
CubeSmart		24,509		621,058
DCT Industrial Trust Inc.b		12,501		632,050
Douglas Emmett Inc.		19,784		745,263
Essex Property Trust Inc.		8,917		2,179,939
Extra Space Storage Inc.		17,128		1,293,678
Federal Realty Investment Trust		9,809		1,283,900
Forest City Realty Trust Inc. Class A		29,428		665,073
Kilroy Realty Corp.		13,300		938,049
Mid-America Apartment Communities Inc.		15,446		1,532,398
Regency Centers Corp.		19,865		1,255,071
SBA Communications Corp.a		16,615		2,101,631
Spirit Realty Capital Inc.		65,780		619,648
Sun Communities Inc.		9,099		760,767
UDR Inc.		36,354		1,357,458
				16,716,622
FOOD & STAPLES RETAILING — 0.28%
Casey’s General Stores Inc.		5,330		597,333
				597,333
FOOD PRODUCTS — 1.78%
Blue Buffalo Pet Products Inc.a		12,832		316,309
Hain Celestial Group Inc. (The)a		14,072		520,523
McCormick & Co. Inc./MD		15,460		1,544,454
Post Holdings Inc.a,b		8,744		736,157
TreeHouse Foods Inc.a		7,726		676,798
				3,794,241
HEALTH CARE EQUIPMENT & SUPPLIES — 5.84%
ABIOMED Inc.a,b		5,509		717,933
Align Technology Inc.a		10,265		1,381,874
Cooper Companies Inc. (The)		6,656		1,333,397
CR Bard Inc.		9,798		3,012,689

Security	Shares		Value
DexCom Inc.a,b		11,498	$	896,384
IDEXX Laboratories Inc.a		11,972		2,008,064
ResMed Inc.		19,270		1,310,167
STERIS PLC		11,553		852,611
West Pharmaceutical Services Inc.		9,965		917,079
				12,430,198
HEALTH CARE PROVIDERS & SERVICES — 2.97%
Centene Corp.a		23,400		1,740,960
Henry Schein Inc.a,b		10,773		1,872,347
MEDNAX Inc.a		12,759		770,133
VCA Inc.a		11,050		1,011,849
WellCare Health Plans Inc.a		6,026		924,449
				6,319,738
HEALTH CARE TECHNOLOGY — 0.25%
athenahealth Inc.a,b		5,376		526,902
				526,902
HOTELS, RESTAURANTS & LEISURE — 4.54%
Chipotle Mexican Grill Inc.a,b		3,914		1,857,076
Domino’s Pizza Inc.		6,536		1,185,565
Dunkin’ Brands Group Inc.		12,506		698,585
MGM Resorts International		65,602		2,014,637
Norwegian Cruise Line Holdings Ltd.a		22,250		1,199,943
Panera Bread Co. Class Aa		2,903		907,710
Six Flags Entertainment Corp.		11,541		722,582
Vail Resorts Inc.		5,435		1,074,282
				9,660,380
HOUSEHOLD DURABLES — 0.47%
NVR Inc.a		469		990,176
				990,176
HOUSEHOLD PRODUCTS — 1.03%
Church & Dwight Co. Inc.		34,638		1,715,620
Spectrum Brands Holdings Inc.		3,328		478,334
				2,193,954
INDUSTRIAL CONGLOMERATES — 1.84%
Carlisle Companies Inc.		8,783		890,508
Roper Technologies Inc.		13,858		3,030,745
				3,921,253
INSURANCE — 0.46%
Brown & Brown Inc.		15,615		669,884
Erie Indemnity Co. Class A		2,514		311,283
				981,167
INTERNET & DIRECT MARKETING RETAIL — 1.36%
Expedia Inc.		16,400		2,193,008

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
TripAdvisor Inc.a,b		15,362	$	691,444
				2,884,452
INTERNET SOFTWARE & SERVICES — 3.33%
Akamai Technologies Inc.a		23,560		1,435,746
CoStar Group Inc.a		4,434		1,068,106
MercadoLibre Inc.		6,006		1,374,833
Twitter Inc.a,b		81,689		1,346,235
VeriSign Inc.a,b		12,111		1,076,910
Zillow Group Inc. Class Aa		6,150		236,714
Zillow Group Inc. Class Ca,b		14,285		557,115
				7,095,659
IT SERVICES — 4.54%
Broadridge Financial Solutions Inc.		16,089		1,125,265
Euronet Worldwide Inc.a		7,102		586,767
Gartner Inc.a		12,246		1,397,146
Global Payments Inc.		20,712		1,693,413
Jack Henry & Associates Inc.		10,560		1,023,475
Sabre Corp.		27,896		653,045
Total System Services Inc.		22,447		1,286,438
Vantiv Inc. Class Aa		21,919		1,359,855
WEX Inc.a		5,232		530,839
				9,656,243
LEISURE PRODUCTS — 1.03%
Hasbro Inc.		15,217		1,508,157
Polaris Industries Inc.b		7,963		678,925
				2,187,082
LIFE SCIENCES TOOLS & SERVICES — 1.72%
Mettler-Toledo International Inc.a		3,529		1,811,859
Waters Corp.a		10,894		1,850,782
				3,662,641
MACHINERY — 4.34%
Fortive Corp.		40,949		2,590,434
Graco Inc.		7,618		821,601
IDEX Corp.		10,372		1,086,571
Middleby Corp. (The)a,b		7,827		1,065,490
Nordson Corp.		7,280		911,456
Toro Co. (The)		14,719		955,557
WABCO Holdings Inc.a		6,971		828,643
Wabtec Corp./DE		11,727		983,778
				9,243,530
MEDIA — 0.91%
Liberty Media Corp.-Liberty SiriusXM Class Aa		11,834		450,875

Security	Shares		Value
Liberty Media Corp.-Liberty SiriusXM Class Ca		23,943	$	909,595
Live Nation Entertainment Inc.a,b		17,987		578,462
				1,938,932
METALS & MINING — 0.61%
Alcoa Corp.		20,024		675,410
Royal Gold Inc.		8,887		628,133
				1,303,543
MULTILINE RETAIL — 1.25%
Dollar Tree Inc.a		32,113		2,657,993
				2,657,993
OIL, GAS & CONSUMABLE FUELS — 4.05%
Antero Resources Corp.a		19,543		414,116
Cabot Oil & Gas Corp.		64,633		1,502,071
Cheniere Energy Inc.a		32,372		1,468,070
Diamondback Energy Inc.a		12,262		1,224,238
EQT Corp.		23,578		1,370,825
Jagged Peak Energy Inc.a		4,263		47,490
Parsley Energy Inc. Class Aa		30,147		898,079
Range Resources Corp.		25,589		677,853
Rice Energy Inc.a		21,346		454,456
RSP Permian Inc.a		14,865		565,613
				8,622,811
PHARMACEUTICALS — 0.61%
Jazz Pharmaceuticals PLCa		8,147		1,297,654
				1,297,654
PROFESSIONAL SERVICES — 3.07%
Equifax Inc.		16,310		2,206,906
IHS Markit Ltd.a		46,152		2,002,997
TransUniona		14,318		573,149
Verisk Analytics Inc. Class Aa		21,044		1,742,654
				6,525,706
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.28%
Howard Hughes Corp. (The)a,b		4,912		604,716
				604,716
ROAD & RAIL — 1.02%
AMERCO		743		278,224
JB Hunt Transport Services Inc.		11,810		1,058,884
Old Dominion Freight Line Inc.		9,423		834,124
				2,171,232
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.18%
Skyworks Solutions Inc.		25,154		2,508,860
				2,508,860

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
SOFTWARE — 10.09%
ANSYS Inc.a		11,613	$	1,279,288
Aspen Technology Inc.a,b		10,348		636,299
Autodesk Inc.a		26,641		2,399,555
Cadence Design Systems Inc.a		37,921		1,235,087
CDK Global Inc.		19,725		1,282,322
Citrix Systems Inc.a		21,268		1,721,432
Fortinet Inc.a		20,272		790,608
Guidewire Software Inc.a,b		9,999		614,839
Manhattan Associates Inc.a		9,576		447,103
PTC Inc.a		15,742		850,855
Red Hat Inc.a		24,253		2,136,204
ServiceNow Inc.a		22,377		2,114,179
Splunk Inc.a		18,454		1,186,777
SS&C Technologies Holdings Inc.		23,176		851,486
Tyler Technologies Inc.a,b		4,559		745,807
Ultimate Software Group Inc. (The)a,b		4,035		817,773
VMware Inc. Class Aa,b		9,582		901,858
Workday Inc. Class Aa		16,595		1,450,403
				21,461,875
SPECIALTY RETAIL — 2.69%
Advance Auto Parts Inc.		10,034		1,426,233
Burlington Stores Inc.a		9,603		949,929
Tractor Supply Co.		17,783		1,100,946
Ulta Salon Cosmetics & Fragrance Inc.a		7,958		2,239,699
				5,716,807
TEXTILES, APPAREL & LUXURY GOODS — 2.14%
Carter’s Inc.		6,611		608,476
Columbia Sportswear Co.		3,687		208,758
Hanesbrands Inc.		51,518		1,123,608
lululemon athletica Inc.a		14,542		756,184
Michael Kors Holdings Ltd.a		22,098		824,918
Under Armour Inc. Class Aa,b		24,994		537,121
Under Armour Inc. Class Ca,b		24,946		484,202
				4,543,267
THRIFTS & MORTGAGE FINANCE — 0.06%
TFS Financial Corp.		7,958		131,625
				131,625
TRADING COMPANIES & DISTRIBUTORS — 1.10%
Fastenal Co.		39,349		1,758,113

Security	Shares		Value
Watsco Inc.		4,130	$	573,244
				2,331,357
TOTAL COMMON STOCKS
(Cost: $164,995,845)				212,598,768
SHORT-TERM INVESTMENTS — 6.59%
MONEY MARKET FUNDS — 6.59%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		13,868,227		13,873,774
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		151,345		151,345
				14,025,119
TOTAL SHORT-TERM INVESTMENTS
(Cost: $14,021,332)				14,025,119
TOTAL INVESTMENTS IN SECURITIES — 106.51%
(Cost: $179,017,177)f				226,623,887
Other Assets, Less Liabilities — (6.51)%				(13,851,034	)
NET ASSETS — 100.00%			$	212,772,853

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $179,806,226. Net unrealized appreciation was $46,817,661, of which $52,005,901 represented gross unrealized appreciation on securities and $5,188,240 represented gross unrealized depreciation on securities.

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP GROWTH ETF

April 30, 2017

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	212,545,974	$	—	$	52,794	$	212,598,768
Money market funds		14,025,119		—		—		14,025,119
Total	$	226,571,093	$	—	$	52,794	$	226,623,887

See notes to financial statements.

SCHEDULES OF INVESTMENTS 43

Schedule of Investments

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.91%
AEROSPACE & DEFENSE — 1.59%
Arconic Inc.		108,891	$	2,975,991
Orbital ATK Inc.		14,300		1,415,700
Spirit AeroSystems Holdings Inc. Class A		30,200		1,726,232
				6,117,923
AIRLINES — 1.77%
JetBlue Airways Corp.a		83,675		1,826,625
United Continental Holdings Inc.a		70,742		4,966,796
				6,793,421
AUTO COMPONENTS — 2.78%
Adient PLC		23,229		1,708,725
Autoliv Inc.		21,802		2,184,342
BorgWarner Inc.		49,542		2,094,636
Goodyear Tire & Rubber Co. (The)		62,220		2,254,231
Lear Corp.		17,157		2,447,618
				10,689,552
AUTOMOBILES — 0.64%
Harley-Davidson Inc.		43,571		2,475,269
				2,475,269
BANKS — 6.65%
BOK Financial Corp.		5,245		442,101
CIT Group Inc.		49,894		2,310,591
Fifth Third Bancorp.		185,442		4,530,348
Huntington Bancshares Inc./OH		268,366		3,451,187
KeyCorp		264,997		4,833,545
M&T Bank Corp.		38,090		5,919,567
Regions Financial Corp.		297,830		4,095,163
				25,582,502
BIOTECHNOLOGY — 0.36%
United Therapeutics Corp.a		11,144		1,400,801
				1,400,801
CAPITAL MARKETS — 2.63%
Ameriprise Financial Inc.		38,056		4,865,460
Invesco Ltd.		99,747		3,285,666
Nasdaq Inc.		28,546		1,965,963
				10,117,089
CHEMICALS — 3.02%
Celanese Corp. Series A		34,831		3,031,690
CF Industries Holdings Inc.		57,870		1,547,444
Eastman Chemical Co.		36,209		2,887,668
Huntsman Corp.		49,265		1,220,294

Security	Shares		Value
Mosaic Co. (The)		86,574	$	2,331,438
Westlake Chemical Corp.		9,318		580,045
				11,598,579
COMMUNICATIONS EQUIPMENT — 2.14%
Brocade Communications Systems Inc.		101,324		1,273,643
Harris Corp.		30,761		3,441,848
Motorola Solutions Inc.		40,715		3,500,269
				8,215,760
CONSTRUCTION & ENGINEERING — 1.58%
AECOMa		38,503		1,317,188
Fluor Corp.		34,607		1,776,031
Jacobs Engineering Group Inc.		30,008		1,648,039
Quanta Services Inc.a		37,564		1,331,268
				6,072,526
CONSUMER FINANCE — 1.06%
Ally Financial Inc.		116,596		2,308,601
Navient Corp.		72,408		1,100,602
OneMain Holdings Inc.a		13,211		308,080
Santander Consumer USA Holdings Inc.a		27,794		354,095
				4,071,378
CONTAINERS & PACKAGING — 5.41%
Ball Corp.		43,268		3,326,876
Bemis Co. Inc.		22,986		1,032,761
Crown Holdings Inc.a		34,698		1,946,211
International Paper Co.		101,613		5,484,054
Packaging Corp. of America		23,262		2,297,820
Sealed Air Corp.		48,003		2,113,092
Sonoco Products Co.		24,660		1,289,965
WestRock Co.		61,889		3,314,775
				20,805,554
DISTRIBUTORS — 0.88%
Genuine Parts Co.		36,672		3,374,557
				3,374,557
DIVERSIFIED CONSUMER SERVICES — 0.33%
H&R Block Inc.		51,514		1,277,032
				1,277,032
DIVERSIFIED FINANCIAL SERVICES — 0.45%
Voya Financial Inc.		46,777		1,748,524
				1,748,524
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.05%
CenturyLink Inc.		135,084		3,467,607

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
Frontier Communications Corp.		292,698	$	550,272
				4,017,879
ELECTRIC UTILITIES — 5.89%
Alliant Energy Corp.		56,221		2,210,610
Avangrid Inc.		13,870		603,345
Entergy Corp.		44,337		3,381,139
Eversource Energy		78,302		4,651,139
FirstEnergy Corp.		109,356		3,274,119
Great Plains Energy Inc.		53,486		1,582,651
IDACORP Inc.		12,533		1,059,289
OGE Energy Corp.		49,600		1,725,088
Pinnacle West Capital Corp.		27,526		2,342,187
Westar Energy Inc.		35,227		1,832,861
				22,662,428
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.51%
Arrow Electronics Inc.a		22,097		1,557,838
Avnet Inc.		32,004		1,238,235
Jabil Circuit Inc.		45,300		1,314,606
Keysight Technologies Inc.a		45,248		1,693,633
				5,804,312
ENERGY EQUIPMENT & SERVICES — 2.55%
Helmerich & Payne Inc.		26,887		1,630,428
National Oilwell Varco Inc.		93,596		3,273,052
TechnipFMC PLCa		115,305		3,474,139
Weatherford International PLCa,b		244,200		1,409,034
				9,786,653
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.19%
Camden Property Trust		21,726		1,788,702
HCP Inc.		115,701		3,627,226
Highwoods Properties Inc.		25,264		1,285,432
Hospitality Properties Trust		36,033		1,146,930
Omega Healthcare Investors Inc.b		48,768		1,609,344
Park Hotels & Resorts Inc.		30,676		787,453
VEREIT Inc.		241,731		2,023,289
				12,268,376
FOOD & STAPLES RETAILING — 0.75%
Whole Foods Market Inc.		78,749		2,864,101
				2,864,101
FOOD PRODUCTS — 2.46%
Bunge Ltd.		34,473		2,724,401
Campbell Soup Co.		47,796		2,750,182
Ingredion Inc.		17,727		2,194,957

Security	Shares		Value
Lamb Weston Holdings Inc.		34,327	$	1,433,152
Pilgrim’s Pride Corp.		14,390		373,565
				9,476,257
GAS UTILITIES — 1.41%
Atmos Energy Corp.		26,092		2,113,974
National Fuel Gas Co.		21,200		1,174,056
UGI Corp.		42,701		2,141,882
				5,429,912
HOTELS, RESTAURANTS & LEISURE — 1.27%
Wyndham Worldwide Corp.		25,941		2,472,437
Wynn Resorts Ltd.		19,631		2,414,809
				4,887,246
HOUSEHOLD DURABLES — 0.55%
CalAtlantic Group Inc.		18,007		652,213
Garmin Ltd.		28,590		1,453,516
				2,105,729
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.48%
AES Corp./VA		162,768		1,840,906
				1,840,906
INSURANCE — 8.33%
American Financial Group Inc./OH		18,048		1,756,251
AmTrust Financial Services Inc.		26,837		430,734
Assurant Inc.		13,828		1,330,807
Axis Capital Holdings Ltd.		21,982		1,448,614
Cincinnati Financial Corp.		37,036		2,669,925
Everest Re Group Ltd.		7,234		1,820,870
Hartford Financial Services Group Inc. (The)		92,392		4,468,077
Lincoln National Corp.		55,618		3,666,895
Loews Corp.		68,224		3,180,603
Old Republic International Corp.		60,734		1,255,979
Principal Financial Group Inc.		66,066		4,302,879
Reinsurance Group of America Inc.		15,860		1,983,134
Unum Group		56,666		2,625,336
Validus Holdings Ltd.		19,748		1,091,669
				32,031,773
IT SERVICES — 1.37%
CSRA Inc.		36,095		1,049,643
Leidos Holdings Inc.		35,269		1,857,265
Western Union Co. (The)		118,896		2,361,275
				5,268,183
MACHINERY — 3.13%
AGCO Corp.		16,599		1,062,170

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
Colfax Corp.a		24,475	$	990,503
Dover Corp.		38,419		3,030,491
Flowserve Corp.		32,408		1,648,595
Parker-Hannifin Corp.		32,934		5,295,787
				12,027,546
MEDIA — 1.33%
TEGNA Inc.		53,380		1,360,122
Viacom Inc. Class A		2,415		107,709
Viacom Inc. Class B NVS		85,868		3,654,542
				5,122,373
METALS & MINING — 2.02%
Freeport-McMoRan Inc.a		328,582		4,189,420
Reliance Steel & Aluminum Co.		18,106		1,427,115
Steel Dynamics Inc.		59,842		2,162,690
				7,779,225
MORTGAGE REAL ESTATE INVESTMENT — 1.60%
AGNC Investment Corp.		82,200		1,731,954
Annaly Capital Management Inc.		251,619		2,971,620
Starwood Property Trust Inc.		64,452		1,462,416
				6,165,990
MULTI-UTILITIES — 5.44%
Ameren Corp.		59,967		3,279,595
CenterPoint Energy Inc.		106,455		3,037,161
CMS Energy Corp.		69,182		3,140,863
DTE Energy Co.		44,337		4,637,207
MDU Resources Group Inc.		48,522		1,305,242
NiSource Inc.		80,162		1,943,928
SCANA Corp.		35,315		2,341,738
Vectren Corp.		20,629		1,225,775
				20,911,509
MULTILINE RETAIL — 1.37%
Kohl’s Corp.		43,810		1,709,904
Macy’s Inc.		75,089		2,194,101
Nordstrom Inc.		28,312		1,366,620
				5,270,625
OIL, GAS & CONSUMABLE FUELS — 6.94%
Chesapeake Energy Corp.a,b		189,315		995,797
Devon Energy Corp.		129,615		5,118,496
Hess Corp.		66,493		3,246,853
HollyFrontier Corp.		43,972		1,237,372
Marathon Oil Corp.		209,378		3,113,451
Murphy Oil Corp.		40,284		1,054,635
Newfield Exploration Co.a		49,397		1,710,124
Noble Energy Inc.		112,362		3,632,663

Security	Shares		Value
QEP Resources Inc.a		59,638	$	704,325
Southwestern Energy Co.a		123,886		930,384
Targa Resources Corp.		47,920		2,641,830
Tesoro Corp.		28,907		2,304,177
				26,690,107
PERSONAL PRODUCTS — 1.09%
Coty Inc. Class A		116,327		2,076,437
Edgewell Personal Care Co.a		14,278		1,020,734
Herbalife Ltd.a,b		17,387		1,099,902
				4,197,073
PHARMACEUTICALS — 0.83%
Endo International PLCa		49,518		563,020
Perrigo Co. PLC		35,427		2,619,472
				3,182,492
PROFESSIONAL SERVICES — 0.70%
Dun & Bradstreet Corp. (The)		9,158		1,003,808
ManpowerGroup Inc.		16,765		1,692,930
				2,696,738
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.34%
Jones Lang LaSalle Inc.		11,252		1,292,405
				1,292,405
ROAD & RAIL — 0.24%
Ryder System Inc.		13,295		902,863
				902,863
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 4.45%
Advanced Micro Devices Inc.a,b		190,706		2,536,390
First Solar Inc.a,b		19,484		575,752
KLA-Tencor Corp.		38,732		3,804,257
Marvell Technology Group Ltd.		109,778		1,648,865
Micron Technology Inc.a,b		256,089		7,085,983
ON Semiconductor Corp.a,b		103,620		1,469,332
				17,120,579
SOFTWARE — 0.96%
CA Inc.		77,497		2,544,226
Nuance Communications Inc.a		64,602		1,155,730
				3,699,956
SPECIALTY RETAIL — 2.41%
AutoNation Inc.a,b		16,362		687,204
Bed Bath & Beyond Inc.		37,371		1,448,126
Best Buy Co. Inc.		66,932		3,467,747
Gap Inc. (The)		54,558		1,429,420
Sally Beauty Holdings Inc.a		35,752		680,003

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR MID-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
Staples Inc.		160,635	$	1,569,404
				9,281,904
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 3.54%
NetApp Inc.		66,978		2,669,073
Seagate Technology PLC		72,949		3,073,342
Western Digital Corp.		71,157		6,337,954
Xerox Corp.		211,494		1,520,642
				13,601,011
TEXTILES, APPAREL & LUXURY GOODS — 1.00%
Coach Inc.		69,365		2,732,287
Ralph Lauren Corp.		14,002		1,130,242
				3,862,529
THRIFTS & MORTGAGE FINANCE — 0.42%
New York Community Bancorp. Inc.		120,977		1,607,784
				1,607,784
TOTAL COMMON STOCKS
(Cost: $338,434,996)				384,196,931
SHORT-TERM INVESTMENTS — 4.12%
MONEY MARKET FUNDS — 4.12%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		15,647,082		15,653,341

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		172,460	$	172,460
				15,825,801
TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,825,248)				15,825,801
TOTAL INVESTMENTS IN SECURITIES — 104.03%
(Cost: $354,260,244)f				400,022,732
Other Assets, Less Liabilities — (4.03)%				(15,498,789	)
NET ASSETS — 100.00%			$	384,523,943

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $361,040,622. Net unrealized appreciation was $38,982,110, of which $56,326,499 represented gross unrealized appreciation on securities and $17,344,389 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	384,196,931	$	—	$	—	$	384,196,931
Money market funds		15,825,801		—		—		15,825,801
Total	$	400,022,732	$	—	$	—	$	400,022,732

See notes to financial statements.

SCHEDULES OF INVESTMENTS 47

Schedule of Investments

iSHARES^® MORNINGSTAR SMALL-CAP ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.96%
AEROSPACE & DEFENSE — 1.73%
Aerojet Rocketdyne Holdings Inc.a		29,515	$	661,431
Curtiss-Wright Corp.		17,576		1,642,653
Teledyne Technologies Inc.a		13,901		1,874,272
				4,178,356
AIR FREIGHT & LOGISTICS — 0.21%
Hub Group Inc. Class Aa,b		13,202		516,858
				516,858
AIRLINES — 1.75%
Allegiant Travel Co.		5,184		753,754
Hawaiian Holdings Inc.a		21,110		1,146,273
SkyWest Inc.		20,457		761,000
Spirit Airlines Inc.a		27,376		1,567,824
				4,228,851
AUTO COMPONENTS — 1.12%
Tenneco Inc.		21,746		1,370,651
Visteon Corp.a		12,957		1,333,923
				2,704,574
BANKS — 12.99%
Ameris Bancorp.		14,470		681,537
Bank of Hawaii Corp.		16,846		1,372,612
BankUnited Inc.		41,135		1,451,654
Banner Corp.		10,344		570,989
Cathay General Bancorp.		29,582		1,125,595
Columbia Banking System Inc.		23,008		909,046
Community Bank System Inc.		17,614		985,503
CVB Financial Corp.		39,776		856,775
First Citizens BancShares Inc./NC Class A		3,478		1,210,553
First Hawaiian Inc.		19,263		573,459
First Horizon National Corp.		92,273		1,693,209
First Midwest Bancorp. Inc./IL		31,984		726,357
Glacier Bancorp. Inc.		30,255		1,022,014
Great Western Bancorp. Inc.		23,189		955,387
Home BancShares Inc./AR		49,873		1,269,268
Hope Bancorp Inc.		50,276		920,554
IBERIABANK Corp.		20,104		1,595,252
Independent Bank Corp./Rockland MA		10,670		675,411
MB Financial Inc.		28,125		1,195,594
Renasant Corp.		17,394		737,506
Simmons First National Corp. Class A		11,752		642,247

Security	Shares		Value
South State Corp.		9,590	$	845,358
Sterling Bancorp./DE		53,574		1,245,595
Texas Capital Bancshares Inc.a		19,559		1,488,440
TowneBank/Portsmouth VA		22,392		726,620
UMB Financial Corp.		17,318		1,255,382
Union Bankshares Corp.		17,265		591,154
United Community Banks Inc./GA		27,996		765,691
Webster Financial Corp.		36,331		1,845,978
Wintrust Financial Corp.		20,693		1,466,306
				31,401,046
BEVERAGES — 0.22%
Boston Beer Co. Inc. (The) Class Aa		3,686		532,074
				532,074
BIOTECHNOLOGY — 1.29%
Alnylam Pharmaceuticals Inc.a		28,201		1,511,573
Five Prime Therapeutics Inc.a		11,270		392,872
Myriad Genetics Inc.a,b		26,894		494,581
Sarepta Therapeutics Inc.a		19,872		720,559
				3,119,585
BUILDING PRODUCTS — 0.95%
Apogee Enterprises Inc.		11,341		618,084
Armstrong World Industries Inc.a,b		19,644		918,357
Universal Forest Products Inc.		8,047		766,799
				2,303,240
CAPITAL MARKETS — 2.26%
Evercore Partners Inc. Class A		15,489		1,142,314
Federated Investors Inc. Class B		34,419		923,118
Janus Capital Group Inc.		56,717		774,754
LPL Financial Holdings Inc.		31,335		1,317,323
Stifel Financial Corp.a		26,926		1,315,874
				5,473,383
CHEMICALS — 6.52%
Cabot Corp.		24,553		1,477,845
Chemours Co. (The)		72,292		2,912,645
GCP Applied Technologies Inc.a		28,101		924,523
HB Fuller Co.		19,845		1,048,411
Ingevity Corp.a,b		16,645		1,052,463
Innospec Inc.		9,530		628,980
Minerals Technologies Inc.		13,851		1,090,074
Olin Corp.		65,288		2,097,704
PolyOne Corp.		32,474		1,273,306
Sensient Technologies Corp.		17,523		1,433,381
Stepan Co.		7,703		653,214

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

April 30, 2017

Security	Shares		Value
Trinseo SA		17,637	$	1,171,097
				15,763,643
COMMERCIAL SERVICES & SUPPLIES — 4.15%
ABM Industries Inc.		21,965		948,668
Brink’s Co. (The)		17,793		1,092,490
Covanta Holding Corp.		51,451		748,612
Deluxe Corp.		19,165		1,378,155
Herman Miller Inc.		23,636		782,352
HNI Corp.		17,389		813,110
Matthews International Corp. Class A		12,723		872,162
MSA Safety Inc.		12,387		964,328
Steelcase Inc. Class A		33,886		577,756
Tetra Tech Inc.		22,665		996,127
UniFirst Corp./MA		6,102		849,398
				10,023,158
COMMUNICATIONS EQUIPMENT — 1.65%
Finisar Corp.a		43,770		999,707
NetScout Systems Inc.a		36,263		1,365,302
Plantronics Inc.		13,093		714,878
Viavi Solutions Inc.a		91,094		910,940
				3,990,827
CONSTRUCTION & ENGINEERING — 1.44%
Dycom Industries Inc.a		12,415		1,311,769
Granite Construction Inc.		15,633		824,015
Valmont Industries Inc.		8,897		1,355,458
				3,491,242
CONSTRUCTION MATERIALS — 0.74%
Headwaters Inc.a		29,548		702,060
Summit Materials Inc. Class Aa		41,916		1,075,565
				1,777,625
CONSUMER FINANCE — 0.72%
FirstCash Inc.		19,097		992,089
LendingClub Corp.a,b		126,011		737,165
				1,729,254
DIVERSIFIED CONSUMER SERVICES — 0.36%
Sotheby’sa		18,182		861,100
				861,100
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.41%
Consolidated Communications Holdings Inc.		19,966		472,595
Vonage Holdings Corp.a		75,779		508,477
				981,072

Security	Shares		Value
ELECTRIC UTILITIES — 0.25%
Otter Tail Corp.		15,598	$	616,121
				616,121
ELECTRICAL EQUIPMENT — 1.04%
Atkore International Group Inc.a		8,012		210,395
EnerSys		17,157		1,425,918
Generac Holdings Inc.a		24,799		872,181
				2,508,494
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.72%
Belden Inc.		16,662		1,161,341
Dolby Laboratories Inc. Class A		22,870		1,205,935
Fabrineta,b		14,574		505,281
Knowles Corp.a		34,997		620,497
OSI Systems Inc.a,b		7,182		555,887
TTM Technologies Inc.a,b		33,283		556,825
Zebra Technologies Corp. Class Aa,b		20,876		1,967,980
				6,573,746
ENERGY EQUIPMENT & SERVICES — 0.95%
Forum Energy Technologies Inc.a,b		28,103		474,941
McDermott International Inc.a		95,242		622,883
U.S. Silica Holdings Inc.		28,831		1,196,486
				2,294,310
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 11.87%
American Assets Trust Inc.		16,121		690,462
Chesapeake Lodging Trust		23,687		552,144
Columbia Property Trust Inc.		48,405		1,089,113
Corporate Office Properties Trustb		38,961		1,275,583
Cousins Properties Inc.		165,267		1,403,117
DuPont Fabros Technology Inc.b		30,607		1,577,791
EastGroup Properties Inc.b		13,171		1,030,631
Education Realty Trust Inc.b		28,911		1,120,879
Empire State Realty Trust Inc. Class Ab		48,686		1,012,669
First Industrial Realty Trust Inc.		46,335		1,303,867
Gramercy Property Trust		55,550		1,543,734
Healthcare Realty Trust Inc.		45,986		1,508,341
LTC Properties Inc.		15,650		748,696
Monogram Residential Trust Inc.		65,753		669,366
National Health Investors Inc.b		15,737		1,151,476
Paramount Group Inc.		72,007		1,180,915
Pebblebrook Hotel Trustb		28,450		846,672

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

April 30, 2017

Security	Shares		Value
Pennsylvania REITb		27,930	$	386,831
PS Business Parks Inc.		7,722		938,532
Ramco-Gershenson Properties Trust		31,300		417,229
Rayonier Inc.		48,570		1,370,645
RLJ Lodging Trust		49,251		1,058,404
Ryman Hospitality Properties Inc.		20,153		1,285,358
Sabra Health Care REIT Inc.b		25,759		700,387
STAG Industrial Inc.		32,369		853,247
Sunstone Hotel Investors Inc.		86,945		1,294,611
Washington REITb		29,543		935,627
Xenia Hotels & Resorts Inc.		42,129		735,572
				28,681,899
FOOD & STAPLES RETAILING — 0.44%
Performance Food Group Co.a		27,742		690,776
Weis Markets Inc.		6,494		375,418
				1,066,194
FOOD PRODUCTS — 1.41%
AdvancePierre Foods Holdings Inc.		14,965		607,878
B&G Foods Inc.		26,273		1,103,466
Cal-Maine Foods Inc.b		11,772		444,393
Darling Ingredients Inc.a		65,130		985,417
Tootsie Roll Industries Inc.b		7,069		264,027
				3,405,181
GAS UTILITIES — 1.08%
ONE Gas Inc.		20,636		1,420,376
South Jersey Industries Inc.		31,410		1,178,503
				2,598,879
HEALTH CARE EQUIPMENT & SUPPLIES — 1.79%
Alere Inc.a		34,356		1,689,284
Haemonetics Corp.a,b		20,515		859,168
Hill-Rom Holdings Inc.		23,484		1,776,330
				4,324,782
HEALTH CARE PROVIDERS & SERVICES — 3.50%
Acadia Healthcare Co. Inc.a,b		30,077		1,310,756
AMN Healthcare Services Inc.a		18,828		769,124
Brookdale Senior Living Inc.a,b		73,575		955,739
Envision Healthcare Corp.a		46,363		2,597,719
HealthSouth Corp.		35,153		1,648,676
Premier Inc.a		20,007		676,236
Tenet Healthcare Corp.a,b		31,636		495,736
				8,453,986
HOTELS, RESTAURANTS & LEISURE — 3.20%
Belmond Ltd. Class Aa		33,463		414,941

Security	Shares		Value
Bloomin’ Brands Inc.		40,575	$	880,072
Boyd Gaming Corp.a		32,526		737,690
Brinker International Inc.		19,282		852,072
Choice Hotels International Inc.		14,189		889,650
Cracker Barrel Old Country Store Inc.b		9,492		1,520,523
DineEquity Inc.		6,648		375,878
ILG Inc.		41,850		1,009,003
Marriott Vacations Worldwide Corp.		9,643		1,062,466
				7,742,295
HOUSEHOLD DURABLES — 0.74%
Helen of Troy Ltd.a		10,663		1,002,322
TRI Pointe Group Inc.a		62,583		779,158
				1,781,480
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.42%
Dynegy Inc.a,b		51,943		333,474
NRG Yield Inc. Class A		13,743		238,304
NRG Yield Inc. Class C		24,797		438,907
				1,010,685
INSURANCE — 1.82%
Kemper Corp.		19,205		755,717
National General Holdings Corp.		24,347		553,651
Navigators Group Inc. (The)		8,733		472,019
Primerica Inc.		17,525		1,468,595
RLI Corp.		15,120		865,166
Third Point Reinsurance Ltd.a		22,672		274,331
				4,389,479
INTERNET & DIRECT MARKETING RETAIL — 0.19%
HSN Inc.		12,608		465,235
				465,235
IT SERVICES — 3.49%
Blackhawk Network Holdings Inc.a,b		21,903		885,976
CACI International Inc. Class Aa		9,636		1,137,048
Convergys Corp.		37,266		838,858
CoreLogic Inc./U.S.a		33,329		1,424,481
CSG Systems International Inc.		12,957		486,017
DST Systems Inc.		12,460		1,533,951
Science Applications International Corp.		17,339		1,265,574
Sykes Enterprises Inc.a		15,606		465,215
Syntel Inc.b		10,940		192,653
TeleTech Holdings Inc.		6,233		194,781
				8,424,554

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

April 30, 2017

Security	Shares		Value
LEISURE PRODUCTS — 0.39%
American Outdoor Brands Corp.a,b		22,271	$	493,303
Vista Outdoor Inc.a,b		22,569		441,449
				934,752
LIFE SCIENCES TOOLS & SERVICES — 0.74%
Bio-Rad Laboratories Inc. Class Aa		8,209		1,791,696
				1,791,696
MACHINERY — 2.96%
Albany International Corp. Class A		11,411		556,286
Astec Industries Inc.		7,563		479,116
Barnes Group Inc.		19,790		1,087,856
EnPro Industries Inc.		8,446		596,710
Franklin Electric Co. Inc.		15,232		626,035
Hillenbrand Inc.		25,192		929,585
ITT Inc.		34,822		1,467,051
Mueller Industries Inc.		22,727		728,173
Watts Water Technologies Inc. Class A		10,974		682,583
				7,153,395
MARINE — 0.22%
Matson Inc.		17,021		539,566
				539,566
MEDIA — 2.63%
Cable One Inc.		1,853		1,263,486
John Wiley & Sons Inc. Class A		17,774		936,690
Liberty Media Corp.-Liberty Formula One Class Aa		8,676		294,203
Liberty Media Corp.-Liberty Formula One Class Ca,b		17,291		605,531
New York Times Co. (The) Class A		48,095		694,973
Nexstar Media Group Inc. Class A		17,221		1,188,249
Regal Entertainment Group Class A		41,341		912,396
Scholastic Corp.		10,627		459,405
				6,354,933
METALS & MINING — 1.48%
Carpenter Technology Corp.		18,436		748,502
Coeur Mining Inc.a		71,445		647,292
Hecla Mining Co.		155,936		849,851
Kaiser Aluminum Corp.		6,900		582,429
Worthington Industries Inc.		17,335		754,072
				3,582,146

Security	Shares		Value
MULTILINE RETAIL — 0.37%
Big Lots Inc.		17,611	$	889,179
				889,179
OIL, GAS & CONSUMABLE FUELS — 0.94%
Laredo Petroleum Inc.a		55,362		711,955
SemGroup Corp. Class A		20,865		694,805
SM Energy Co.		38,625		872,539
				2,279,299
PAPER & FOREST PRODUCTS — 0.22%
Neenah Paper Inc.		6,639		520,166
				520,166
PERSONAL PRODUCTS — 0.50%
Nu Skin Enterprises Inc. Class A		19,534		1,078,863
Revlon Inc. Class Aa		4,605		119,500
				1,198,363
PHARMACEUTICALS — 2.85%
Akorn Inc.a,b		34,422		1,151,416
Catalent Inc.a		49,278		1,442,860
Horizon Pharma PLCa		63,767		980,736
Impax Laboratories Inc.a		29,142		409,445
Innoviva Inc.a		30,687		361,646
Medicines Co. (The)a		28,193		1,390,479
Nektar Therapeuticsa		60,802		1,153,414
				6,889,996
PROFESSIONAL SERVICES — 0.97%
FTI Consulting Inc.a		16,294		563,610
Huron Consulting Group Inc.a		8,598		382,611
On Assignment Inc.a		19,143		991,033
TriNet Group Inc.a		13,841		406,925
				2,344,179
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.92%
Realogy Holdings Corp.		56,322		1,720,637
St. Joe Co. (The)a,b		29,300		512,750
				2,233,387
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.41%
Amkor Technology Inc.a,b		49,688		585,325
Cabot Microelectronics Corp.		9,875		773,706
Cypress Semiconductor Corp.		129,460		1,813,735
Entegris Inc.a		55,793		1,383,666
MKS Instruments Inc.		21,248		1,662,656
Versum Materials Inc.		42,935		1,374,779
Xperi Corp.		19,410		652,176
				8,246,043

SCHEDULES OF INVESTMENTS 51

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

April 30, 2017

Security	Shares		Value
SOFTWARE — 0.35%
Progress Software Corp.		19,223	$	571,308
Synchronoss Technologies Inc.a		16,913		270,608
				841,916
SPECIALTY RETAIL — 3.44%
Aaron’s Inc.		25,110		902,453
American Eagle Outfitters Inc.		67,612		952,653
Asbury Automotive Group Inc.a,b		7,432		454,838
Camping World Holdings Inc. Class A		4,657		143,995
Children’s Place Inc. (The)		7,130		818,524
CST Brands Inc.		29,897		1,443,726
DSW Inc. Class A		26,538		547,214
Genesco Inc.a		7,865		419,205
Office Depot Inc.		203,559		1,011,688
Party City Holdco Inc.a,b		9,542		152,672
RHa,b		13,761		660,115
Urban Outfitters Inc.a,b		34,850		797,368
				8,304,451
TEXTILES, APPAREL & LUXURY GOODS — 0.89%
G-III Apparel Group Ltd.a		17,356		411,337
Steven Madden Ltd.a		21,262		809,019
Wolverine World Wide Inc.		38,254		922,304
				2,142,660
THRIFTS & MORTGAGE FINANCE — 1.83%
BofI Holding Inc.a,b		22,832		545,456
Capitol Federal Financial Inc.		50,084		732,729
Essent Group Ltd.a		29,162		1,079,286
EverBank Financial Corp.		44,942		876,369
Washington Federal Inc.		35,279		1,188,902
				4,422,742
TRADING COMPANIES & DISTRIBUTORS — 1.15%
MSC Industrial Direct Co. Inc. Class A		17,712		1,585,755
Univar Inc.a		40,348		1,204,388
				2,790,143
WATER UTILITIES — 0.28%
California Water Service Group		18,929		675,765
				675,765
TOTAL COMMON STOCKS
(Cost: $205,630,321)				241,547,985

Security	Shares		Value
SHORT-TERM INVESTMENTS — 8.22%
MONEY MARKET FUNDS — 8.22%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		19,820,010	$	19,827,938
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		23,943		23,943
				19,851,881
TOTAL SHORT-TERM INVESTMENTS
(Cost: $19,847,373)				19,851,881
TOTAL INVESTMENTS IN SECURITIES — 108.18%
(Cost: $225,477,694)f				261,399,866
Other Assets, Less Liabilities — (8.18)%				(19,756,116	)
NET ASSETS — 100.00%			$	241,643,750

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $227,513,880. Net unrealized appreciation was $33,885,986, of which $43,251,418 represented gross unrealized appreciation on securities and $9,365,432 represented gross unrealized depreciation on securities.

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP ETF

April 30, 2017

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	241,547,985	$	—	$	—	$	241,547,985
Money market funds		19,851,881		—		—		19,851,881
Total	$	261,399,866	$	—	$	—	$	261,399,866

See notes to financial statements.

SCHEDULES OF INVESTMENTS 53

Schedule of Investments

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 100.33%
AEROSPACE & DEFENSE — 0.36%
DigitalGlobe Inc.a		13,029	$	419,534
				419,534
AIR FREIGHT & LOGISTICS — 1.01%
Forward Air Corp.		6,331		336,619
XPO Logistics Inc.a,b		16,958		837,556
				1,174,175
AUTO COMPONENTS — 0.91%
Dorman Products Inc.a,b		6,357		528,584
LCI Industries		5,184		524,362
				1,052,946
BANKS — 3.11%
Eagle Bancorp. Inc.a		6,199		371,320
FCB Financial Holdings Inc. Class Aa		8,668		409,563
First Financial Bankshares Inc.		13,848		553,228
LegacyTexas Financial Group Inc.		8,724		329,854
Pinnacle Financial Partners Inc.		9,777		625,728
PrivateBancorp. Inc.		16,738		966,954
ServisFirst Bancshares Inc.		9,281		350,822
				3,607,469
BEVERAGES — 0.19%
National Beverage Corp.b		2,441		216,248
				216,248
BIOTECHNOLOGY — 6.90%
ACADIA Pharmaceuticals Inc.a,b		19,748		677,949
Agios Pharmaceuticals Inc.a,b		8,605		427,754
Exact Sciences Corp.a		23,123		693,921
Exelixis Inc.a		47,337		1,060,349
Halozyme Therapeutics Inc.a,b		23,592		328,872
Intercept Pharmaceuticals Inc.a,b		3,689		414,459
Intrexon Corp.a,b		12,664		263,918
Ionis Pharmaceuticals Inc.a,b		25,356		1,221,906
Ironwood Pharmaceuticals Inc.a		27,467		448,261
Kite Pharma Inc.a,b		10,205		837,626
Lexicon Pharmaceuticals Inc.a,b		9,608		149,981
Ligand Pharmaceuticals Inc.a,b		3,974		441,790
Ophthotech Corp.a		6,181		18,358
Puma Biotechnology Inc.a,b		5,860		237,916
Spark Therapeutics Inc.a,b		4,640		268,981
Ultragenyx Pharmaceutical Inc.a		8,039		517,631
				8,009,672

Security	Shares		Value
BUILDING PRODUCTS — 1.63%
AAON Inc.		8,268	$	303,022
American Woodmark Corp.a		2,914		267,797
Masonite International Corp.a,b		6,281		522,579
Simpson Manufacturing Co. Inc.		8,482		353,784
Trex Co. Inc.a,b		6,142		449,533
				1,896,715
CAPITAL MARKETS — 1.42%
Cohen & Steers Inc.		4,230		168,777
Financial Engines Inc.		11,988		509,490
Interactive Brokers Group Inc. Class A		14,237		495,875
Morningstar Inc.		3,866		282,720
WisdomTree Investments Inc.		23,702		197,912
				1,654,774
CHEMICALS — 0.81%
Balchem Corp.		6,653		539,957
Quaker Chemical Corp.		2,781		402,133
				942,090
COMMERCIAL SERVICES & SUPPLIES — 0.83%
Healthcare Services Group Inc.		15,222		698,842
Mobile Mini Inc.		9,273		266,135
				964,977
COMMUNICATIONS EQUIPMENT — 1.97%
Acacia Communications Inc.a,b		2,826		129,544
Infinera Corp.a,b		30,661		304,157
InterDigital Inc./PA		7,175		645,033
Lumentum Holdings Inc.a		11,616		496,584
ViaSat Inc.a,b		11,077		709,260
				2,284,578
CONSTRUCTION & ENGINEERING — 0.71%
EMCOR Group Inc.		12,481		820,501
				820,501
CONSTRUCTION MATERIALS — 0.84%
Eagle Materials Inc.		10,125		971,696
				971,696
DISTRIBUTORS — 0.29%
Core-Mark Holding Co. Inc.		9,699		339,659
				339,659
DIVERSIFIED CONSUMER SERVICES — 0.65%
Grand Canyon Education Inc.a		9,982		750,247
				750,247

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.46%
ATN International Inc.		2,231	$	154,363
Cogent Communications Holdings Inc.		8,574		385,830
				540,193
ELECTRICAL EQUIPMENT — 0.28%
AZZ Inc.		5,435		320,937
				320,937
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.68%
Coherent Inc.a,b		5,136		1,107,322
II-VI Inc.a		11,398		377,844
Itron Inc.a		6,983		452,847
Littelfuse Inc.		4,732		729,438
National Instruments Corp.		22,208		775,281
Universal Display Corp.b		9,331		833,725
				4,276,457
ENERGY EQUIPMENT & SERVICES — 0.49%
Dril-Quip Inc.a,b		7,917		408,121
Fairmount Santrol Holdings Inc.a,b		31,740		163,779
				571,900
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 8.82%
Acadia Realty Trust		17,738		515,821
Alexander’s Inc.		738		320,890
Apple Hospitality REIT Inc.b		32,682		612,134
Colony NorthStar Inc. Class A		116,074		1,517,087
Colony Starwood Homesb		20,293		701,529
CoreSite Realty Corp.		7,092		693,952
CyrusOne Inc.		16,351		893,419
Global Net Lease Inc.		11,943		282,213
Hudson Pacific Properties Inc.b		32,378		1,112,508
Kite Realty Group Trust		17,495		356,198
Physicians Realty Trust		31,655		621,704
QTS Realty Trust Inc. Class A		10,016		535,255
Retail Opportunity Investments Corp.b		22,888		471,493
Rexford Industrial Realty Inc.		13,951		347,938
Saul Centers Inc.b		2,468		148,203
Tanger Factory Outlet Centers Inc.		20,121		627,574
Urban Edge Propertiesb		19,218		490,059
				10,247,977
FOOD & STAPLES RETAILING — 0.87%
PriceSmart Inc.		4,775		415,186

Security	Shares		Value
Sprouts Farmers Market Inc.a,b		26,812	$	598,176
				1,013,362
FOOD PRODUCTS — 1.40%
Amplify Snack Brands Inc.a,b		6,314		56,826
J&J Snack Foods Corp.		3,128		420,966
Lancaster Colony Corp.		4,071		512,539
Snyder’s-Lance Inc.		17,917		631,754
				1,622,085
HEALTH CARE EQUIPMENT & SUPPLIES — 6.05%
Cantel Medical Corp.		7,589		564,698
Globus Medical Inc. Class Aa		15,063		456,861
ICU Medical Inc.a,b		3,103		477,241
Insulet Corp.a,b		12,026		522,049
Integra LifeSciences Holdings Corp.a,b		12,518		575,452
Masimo Corp.a		9,385		964,215
Natus Medical Inc.a		6,883		240,905
Neogen Corp.a		7,952		495,648
Nevro Corp.a		4,767		449,147
NuVasive Inc.a		10,579		767,083
NxStage Medical Inc.a		12,476		372,908
Penumbra Inc.a,b		5,672		484,672
Wright Medical Group NVa		21,661		658,278
				7,029,157
HEALTH CARE PROVIDERS & SERVICES — 1.73%
Amedisys Inc.a,b		5,841		316,582
Chemed Corp.		3,412		687,109
Diplomat Pharmacy Inc.a,b		9,088		141,773
HealthEquity Inc.a		9,200		418,784
Molina Healthcare Inc.a		8,913		443,778
				2,008,026
HEALTH CARE TECHNOLOGY — 2.52%
Allscripts Healthcare Solutions Inc.a		37,801		452,478
Cotiviti Holdings Inc.a		4,941		206,484
HMS Holdings Corp.a		17,497		358,164
Medidata Solutions Inc.a		11,462		749,959
Veeva Systems Inc.a,b		21,520		1,153,902
				2,920,987
HOTELS, RESTAURANTS & LEISURE — 4.43%
Buffalo Wild Wings Inc.a		3,591		565,762
Cheesecake Factory Inc. (The)		9,276		595,148
Churchill Downs Inc.		2,581		430,511
Dave & Buster’s Entertainment Inc.a,b		7,840		501,838

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
Hyatt Hotels Corp. Class Aa		8,316	$	461,538
Jack in the Box Inc.		6,614		674,430
Papa John’s International Inc.		5,542		438,151
Sonic Corp.		9,200		247,296
Texas Roadhouse Inc.		13,453		630,677
Wendy’s Co. (The)		40,333		594,508
				5,139,859
HOUSEHOLD DURABLES — 1.03%
iRobot Corp.a		5,706		454,996
La-Z-Boy Inc.		10,223		285,222
Tempur Sealy International Inc.a,b		9,801		460,157
				1,200,375
HOUSEHOLD PRODUCTS — 0.27%
WD-40 Co.		2,956		309,937
				309,937
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.64%
Ormat Technologies Inc.		7,343		433,678
Pattern Energy Group Inc.		13,921		306,540
				740,218
INSURANCE — 0.38%
Enstar Group Ltd.a		2,243		436,936
				436,936
INTERNET & DIRECT MARKETING RETAIL — 1.03%
Etsy Inc.a		20,087		216,136
Groupon Inc.a		82,393		322,981
Shutterfly Inc.a,b		7,047		365,739
Wayfair Inc. Class Aa,b		6,380		291,630
				1,196,486
INTERNET SOFTWARE & SERVICES — 6.52%
2U Inc.a,b		8,672		393,709
Alarm.com Holdings Inc.a		2,679		87,362
Cimpress NVa		6,122		502,494
Cornerstone OnDemand Inc.a		10,590		415,975
Envestnet Inc.a		9,016		313,757
GoDaddy Inc. Class Aa,b		10,571		411,423
GrubHub Inc.a,b		17,896		769,170
j2 Global Inc.		10,073		908,988
LogMeIn Inc.		10,998		1,242,774
New Relic Inc.a		6,632		265,147
NIC Inc.		12,991		277,358
Nutanix Inc. Class Aa		3,814		57,935
Pandora Media Inc.a,b		48,863		530,164
Shutterstock Inc.a		3,976		171,882

Security	Shares		Value
Stamps.com Inc.a,b		3,281	$	348,278
WebMD Health Corp.a,b		7,902		428,525
Yelp Inc.a		12,651		447,972
				7,572,913
IT SERVICES — 2.63%
Acxiom Corp.a		16,347		472,428
Black Knight Financial Services Inc. Class Aa,b		4,919		203,647
Cardtronics PLC Class Aa		9,542		396,756
EPAM Systems Inc.a		9,405		724,185
ExlService Holdings Inc.a		7,015		334,686
MAXIMUS Inc.		13,554		826,658
Square Inc. Class Aa		5,234		95,468
				3,053,828
LIFE SCIENCES TOOLS & SERVICES — 3.76%
Bio-Techne Corp.		7,803		835,545
Bruker Corp.		22,170		540,726
Cambrex Corp.a		6,774		402,037
Charles River Laboratories International Inc.a		9,910		888,927
INC Research Holdings Inc.a		11,228		505,260
PAREXEL International Corp.a		10,652		679,917
PRA Health Sciences Inc.a		8,102		518,204
				4,370,616
MACHINERY — 2.19%
John Bean Technologies Corp.		6,577		583,051
Mueller Water Products Inc. Class A		33,869		381,026
Proto Labs Inc.a		5,111		296,438
RBC Bearings Inc.a		5,024		503,907
Woodward Inc.		11,562		782,401
				2,546,823
MEDIA — 1.60%
IMAX Corp.a,b		11,943		364,262
Lions Gate Entertainment Corp. Class A		12,391		324,272
Lions Gate Entertainment Corp. Class Ba		23,095		550,816
Madison Square Garden Co. (The)a		3,052		615,802
				1,855,152
METALS & MINING — 0.39%
Stillwater Mining Co.a,b		25,218		453,420
				453,420

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
MULTILINE RETAIL — 0.33%
Ollie’s Bargain Outlet Holdings Inc.a		10,027	$	384,034
				384,034
OIL, GAS & CONSUMABLE FUELS — 2.67%
Callon Petroleum Co.a		42,100		498,464
Carrizo Oil & Gas Inc.a,b		12,821		322,448
Extraction Oil & Gas Inc.a,b		8,654		135,435
Gulfport Energy Corp.a		33,261		528,185
Kosmos Energy Ltd.a		39,680		238,477
Matador Resources Co.a,b		19,378		420,115
PDC Energy Inc.a,b		11,685		645,363
SRC Energy Inc.a		42,023		316,853
				3,105,340
PERSONAL PRODUCTS — 0.21%
elf Beauty Inc.a		4,181		113,932
USANA Health Sciences Inc.a,b		2,196		124,843
				238,775
PHARMACEUTICALS — 1.16%
Depomed Inc.a,b		13,004		155,918
Pacira Pharmaceuticals Inc./DEa		7,832		380,243
Prestige Brands Holdings Inc.a		11,064		635,184
TherapeuticsMD Inc.a,b		33,756		172,156
				1,343,501
PROFESSIONAL SERVICES — 1.45%
Advisory Board Co. (The)a		8,407		429,597
Exponent Inc.		5,360		327,764
Insperity Inc.		3,914		357,544
WageWorks Inc.a		7,726		570,179
				1,685,084
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.72%
Alexander & Baldwin Inc.		9,662		444,549
Kennedy-Wilson Holdings Inc.		19,465		397,086
				841,635
ROAD & RAIL — 1.21%
Heartland Express Inc.		9,070		182,489
Knight Transportation Inc.		13,961		478,862
Landstar System Inc.		8,734		746,320
				1,407,671
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 5.75%
Advanced Energy Industries Inc.a,b		8,304		612,835
Ambarella Inc.a,b		6,934		389,829
Cavium Inc.a,b		14,015		964,933
Cirrus Logic Inc.a		13,433		864,414

Security	Shares		Value
Cree Inc.a		20,398	$	446,308
Inphi Corp.a,b		7,855		325,354
Integrated Device Technology Inc.a		27,892		669,129
MACOM Technology Solutions Holdings Inc.a,b		7,283		355,993
Monolithic Power Systems Inc.		7,919		724,589
Power Integrations Inc.		6,160		406,252
Rambus Inc.a		23,282		291,491
Silicon Laboratories Inc.a		8,761		623,345
				6,674,472
SOFTWARE — 9.94%
8x8 Inc.a		19,042		277,061
ACI Worldwide Inc.a,b		24,562		527,837
Blackbaud Inc.		9,939		799,195
BroadSoft Inc.a,b		6,381		245,030
CommVault Systems Inc.a		8,779		442,900
Ebix Inc.		4,538		279,995
Ellie Mae Inc.a		7,061		718,527
Fair Isaac Corp.		6,495		879,942
FireEye Inc.a,b		31,889		398,931
Gigamon Inc.a		6,431		203,863
HubSpot Inc.a,b		6,512		436,630
Imperva Inc.a		6,052		269,011
MicroStrategy Inc. Class Aa		1,963		373,304
Paycom Software Inc.a,b		8,347		502,907
Paylocity Holding Corp.a,b		5,063		199,685
Pegasystems Inc.		7,512		342,172
Proofpoint Inc.a,b		9,051		682,174
Qualys Inc.a		6,167		236,813
RealPage Inc.a		11,122		412,070
RingCentral Inc. Class Aa		12,664		404,615
Tableau Software Inc. Class Aa		12,073		648,079
Take-Two Interactive Software Inc.a		21,220		1,333,677
Zendesk Inc.a		15,573		447,724
Zynga Inc. Class Aa,b		164,831		476,361
				11,538,503
SPECIALTY RETAIL — 0.79%
Five Below Inc.a		11,493		564,536
Monro Muffler Brake Inc.		6,820		353,617
				918,153
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.69%
3D Systems Corp.a,b		22,513		356,381
Electronics For Imaging Inc.a		9,723		445,119
				801,500

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP GROWTH ETF

April 30, 2017

Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 1.01%
Kate Spade & Co.a		26,866	$	467,468
Skechers U.S.A. Inc. Class Aa		27,966		706,142
				1,173,610
THRIFTS & MORTGAGE FINANCE — 0.23%
Kearny Financial Corp./MD		18,478		269,779
				269,779
TOBACCO — 0.39%
Vector Group Ltd.		20,614		447,736
				447,736
TRADING COMPANIES & DISTRIBUTORS — 0.72%
Beacon Roofing Supply Inc.a		12,557		622,450
SiteOne Landscape Supply Inc.a,b		4,554		217,727
				840,177
WIRELESS TELECOMMUNICATION SERVICES — 0.26%
Shenandoah Telecommunications Co.		9,628		308,096
				308,096
TOTAL COMMON STOCKS
(Cost: $97,412,088)				116,510,991

Security	Shares		Value
SHORT-TERM INVESTMENTS — 20.89%
MONEY MARKET FUNDS — 20.89%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		23,737,327	$	23,746,822
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		506,942		506,942
				24,253,764
TOTAL SHORT-TERM INVESTMENTS
(Cost: $24,245,689)				24,253,764
TOTAL INVESTMENTS IN SECURITIES — 121.22%
(Cost: $121,657,777)f				140,764,755
Other Assets, Less Liabilities — (21.22)%				(24,639,442	)
NET ASSETS — 100.00%			$	116,125,313

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $123,185,895. Net unrealized appreciation was $17,578,860, of which $24,336,987 represented gross unrealized appreciation on securities and $6,758,127 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	116,510,991	$	—	$	—	$	116,510,991
Money market funds		24,253,764		—		—		24,253,764
Total	$	140,764,755	$	—	$	—	$	140,764,755

See notes to financial statements.

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.84%
AEROSPACE & DEFENSE — 1.71%
Esterline Technologies Corp.a		26,006	$	2,378,249
KLX Inc.a		45,762		2,164,542
Moog Inc. Class Aa		28,277		1,941,216
Triumph Group Inc.		43,528		1,140,434
Wesco Aircraft Holdings Inc.a,b		51,931		630,962
				8,255,403
AUTO COMPONENTS — 1.50%
American Axle & Manufacturing Holdings Inc.a,b		72,433		1,274,097
Cooper Tire & Rubber Co.		46,197		1,769,345
Cooper-Standard Holding Inc.a		15,500		1,752,585
Dana Inc.		125,512		2,437,443
				7,233,470
BANKS — 10.24%
Associated Banc-Corp.		132,771		3,305,998
BancorpSouth Inc.		74,336		2,263,531
Chemical Financial Corp.		62,167		2,949,824
First Financial Bancorp.		54,385		1,503,745
FNB Corp./PA		280,170		3,989,621
Fulton Financial Corp.		151,728		2,799,382
Hancock Holding Co.		73,433		3,429,321
Hilltop Holdings Inc.		67,844		1,886,742
International Bancshares Corp.		50,610		1,892,814
NBT Bancorp. Inc.		38,139		1,456,147
Old National Bancorp./IN		118,549		1,991,623
Park National Corp.		11,399		1,201,797
Popular Inc.		90,765		3,803,961
TCF Financial Corp.		148,864		2,457,745
Trustmark Corp.		58,991		1,959,681
Umpqua Holdings Corp.		192,033		3,393,223
United Bankshares Inc./WVb		91,098		3,634,810
Valley National Bancorp.		229,940		2,704,094
WesBanco Inc.		35,442		1,410,946
Westamerica Bancorp.		23,028		1,267,001
				49,302,006
BIOTECHNOLOGY — 0.82%
Alder Biopharmaceuticals Inc.a,b		38,572		773,368
Bluebird Bio Inc.a,b		35,743		3,179,340
				3,952,708
CAPITAL MARKETS — 1.78%
Artisan Partners Asset Management Inc.		40,987		1,200,919

Security	Shares		Value
BGC Partners Inc. Class A		193,219	$	2,198,832
KCG Holdings Inc. Class Aa		51,880		1,032,412
Legg Mason Inc.		75,894		2,836,918
Waddell & Reed Financial Inc. Class A		72,486		1,304,023
				8,573,104
CHEMICALS — 0.54%
Platform Specialty Products Corp.a,b		184,445		2,613,586
				2,613,586
COMMERCIAL SERVICES & SUPPLIES — 1.81%
Advanced Disposal Services Inc.a		17,991		427,826
Brady Corp. Class A		41,804		1,628,266
Clean Harbors Inc.a		45,629		2,651,501
Pitney Bowes Inc.		162,450		2,158,960
RR Donnelley & Sons Co.		61,874		777,756
West Corp.		41,053		1,095,705
				8,740,014
COMMUNICATIONS EQUIPMENT — 1.36%
Ciena Corp.a,b		123,666		2,833,188
EchoStar Corp. Class Aa		40,646		2,339,584
NETGEAR Inc.a,b		28,933		1,364,191
				6,536,963
CONSTRUCTION & ENGINEERING — 1.44%
Chicago Bridge & Iron Co. NV		87,603		2,635,098
KBR Inc.		125,096		1,757,599
MasTec Inc.a		57,443		2,536,109
				6,928,806
CONSUMER FINANCE — 1.41%
Nelnet Inc. Class A		17,101		769,716
PRA Group Inc.a,b		40,761		1,312,504
SLM Corp.a		373,968		4,689,559
				6,771,779
CONTAINERS & PACKAGING — 1.33%
Greif Inc. Class A		22,662		1,328,446
Owens-Illinois Inc.a		141,357		3,084,410
Silgan Holdings Inc.		32,838		1,990,640
				6,403,496
DIVERSIFIED CONSUMER SERVICES — 1.12%
DeVry Education Group Inc.		50,220		1,900,827
Graham Holdings Co. Class B		4,075		2,451,927
Houghton Mifflin Harcourt Co.a,b		89,985		1,034,828
				5,387,582

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
ELECTRIC UTILITIES — 3.36%
ALLETE Inc.		43,803	$	3,062,268
El Paso Electric Co.		35,569		1,835,360
Hawaiian Electric Industries Inc.		95,107		3,187,987
MGE Energy Inc.		30,407		1,955,170
PNM Resources Inc.		69,719		2,597,033
Portland General Electric Co.		77,751		3,525,230
				16,163,048
ELECTRICAL EQUIPMENT — 0.64%
Regal Beloit Corp.		39,184		3,089,658
				3,089,658
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.92%
Anixter International Inc.a		24,974		2,036,630
AVX Corp.		40,030		676,907
Fitbit Inc. Class Aa,b		132,602		758,483
Plexus Corp.a,b		29,511		1,534,277
Sanmina Corp.a		65,067		2,423,746
Tech Data Corp.a		30,268		2,895,134
VeriFone Systems Inc.a,b		97,904		1,815,140
Vishay Intertechnology Inc.b		117,537		1,921,730
				14,062,047
ENERGY EQUIPMENT & SERVICES — 3.37%
Diamond Offshore Drilling Inc.a,b		56,878		820,181
Ensco PLC Class A		265,566		2,095,316
Frank’s International NVb		43,524		396,068
Nabors Industries Ltd.		249,655		2,581,433
Noble Corp. PLC		214,752		1,030,810
Oceaneering International Inc.		85,887		2,266,558
Oil States International Inc.a,b		45,103		1,341,814
Patterson-UTI Energy Inc.		145,489		3,149,109
RPC Inc.b		51,770		940,661
Superior Energy Services Inc.a		133,776		1,616,014
				16,237,964
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 8.23%
Brandywine Realty Trustb		152,638		2,590,267
Care Capital Properties Inc.		73,220		1,967,421
CBL & Associates Properties Inc.b		149,770		1,385,372
CoreCivic Inc.		102,693		3,537,774
DiamondRock Hospitality Co.		175,207		1,929,029
Equity Commonwealtha		108,124		3,458,887
GEO Group Inc. (The)		107,082		3,567,972
Government Properties Income Trust		56,412		1,202,704

Security	Shares		Value
LaSalle Hotel Properties		98,922	$	2,825,212
Lexington Realty Trust		189,322		1,925,405
Mack-Cali Realty Corp.b		78,301		2,118,042
Outfront Media Inc.b		121,161		3,169,572
Piedmont Office Realty Trust Inc. Class Ab		126,649		2,767,281
Potlatch Corp.		35,551		1,601,573
Retail Properties of America Inc. Class A		206,416		2,753,589
Select Income REIT		55,748		1,397,045
Washington Prime Group Inc.b		162,603		1,430,906
				39,628,051
FOOD & STAPLES RETAILING — 0.58%
SUPERVALU Inc.a		235,722		966,460
United Natural Foods Inc.a,b		44,386		1,843,351
				2,809,811
FOOD PRODUCTS — 1.97%
Dean Foods Co.		79,572		1,570,751
Flowers Foods Inc.		160,215		3,141,816
Fresh Del Monte Produce Inc.		28,800		1,765,440
Sanderson Farms Inc.		17,514		2,027,771
Seaboard Corp.		237		1,003,461
				9,509,239
GAS UTILITIES — 3.00%
New Jersey Resources Corp.		75,543		3,048,160
Northwest Natural Gas Co.		25,079		1,494,709
Southwest Gas Holdings Inc.		41,591		3,483,662
Spire Inc.		40,047		2,745,222
WGL Holdings Inc.		44,792		3,693,548
				14,465,301
HEALTH CARE EQUIPMENT & SUPPLIES — 0.34%
Halyard Health Inc.a		40,973		1,618,434
				1,618,434
HEALTH CARE PROVIDERS & SERVICES — 1.40%
LifePoint Health Inc.a,b		35,011		2,175,934
Magellan Health Inc.a		20,693		1,423,678
Owens & Minor Inc.		53,565		1,856,027
Select Medical Holdings Corp.a		94,561		1,300,214
				6,755,853
HOTELS, RESTAURANTS & LEISURE — 0.78%
Extended Stay America Inc.		98,532		1,718,398
La Quinta Holdings Inc.a		69,905		986,360
SeaWorld Entertainment Inc.		58,727		1,029,484
				3,734,242

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
HOUSEHOLD DURABLES — 1.62%
GoPro Inc. Class Aa,b		87,525	$	722,081
KB Home		73,043		1,504,686
MDC Holdings Inc.		36,296		1,125,539
Meritage Homes Corp.a		33,115		1,289,829
Tupperware Brands Corp.		44,338		3,183,912
				7,826,047
HOUSEHOLD PRODUCTS — 1.17%
Energizer Holdings Inc.		54,175		3,208,785
HRG Group Inc.a		120,383		2,408,864
				5,617,649
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.97%
NRG Energy Inc.		276,056		4,665,346
				4,665,346
INSURANCE — 5.90%
Allied World Assurance Co. Holdings AG		76,179		4,044,343
American Equity Investment Life Holding Co.		65,615		1,556,388
American National Insurance Co.		7,108		831,067
Argo Group International Holdings Ltd.		26,291		1,733,891
Aspen Insurance Holdings Ltd.		52,271		2,736,387
CNO Financial Group Inc.		135,410		2,853,089
FBL Financial Group Inc. Class A		8,845		588,193
Fidelity & Guaranty Lifeb		10,174		289,450
Genworth Financial Inc. Class Aa		401,257		1,621,078
Hanover Insurance Group Inc. (The)		37,205		3,284,085
Horace Mann Educators Corp.		35,463		1,370,645
Mercury General Corp.		31,938		1,963,868
ProAssurance Corp.		45,949		2,844,243
Selective Insurance Group Inc.		50,971		2,691,269
				28,407,996
INTERNET & DIRECT MARKETING RETAIL — 0.19%
Liberty TripAdvisor Holdings Inc. Class Aa		63,423		932,318
				932,318
IT SERVICES — 1.12%
NeuStar Inc. Class Aa		19,092		633,854
Teradata Corp.a,b		114,071		3,328,592
Travelport Worldwide Ltd.		109,019		1,435,780
				5,398,226

Security	Shares		Value
LEISURE PRODUCTS — 0.20%
Sturm Ruger & Co. Inc.b		15,953	$	964,359
				964,359
LIFE SCIENCES TOOLS & SERVICES — 0.44%
VWR Corp.a		74,978		2,118,878
				2,118,878
MACHINERY — 5.88%
Actuant Corp. Class A		51,873		1,416,133
Crane Co.		43,815		3,501,256
Kennametal Inc.		70,222		2,919,831
Navistar International Corp.a,b		56,775		1,527,815
Oshkosh Corp.		65,025		4,512,085
Rexnord Corp.a,b		90,123		2,199,001
Terex Corp.		92,293		3,228,409
Timken Co. (The)		60,840		2,935,530
Trinity Industries Inc.		133,122		3,580,982
Welbilt Inc.a,b		120,710		2,474,555
				28,295,597
MARINE — 0.69%
Kirby Corp.a,b		47,100		3,325,260
				3,325,260
MEDIA — 2.28%
AMC Networks Inc. Class Aa,b		49,027		2,925,931
Meredith Corp.		31,881		1,866,633
Sinclair Broadcast Group Inc. Class A		63,917		2,521,526
Time Inc.		86,901		1,320,895
Tribune Media Co. Class A		64,180		2,346,421
				10,981,406
METALS & MINING — 2.55%
AK Steel Holding Corp.a		276,190		1,751,045
Allegheny Technologies Inc.		95,274		1,748,278
Cliffs Natural Resources Inc.a		229,993		1,545,553
Commercial Metals Co.		101,322		1,888,642
Compass Minerals International Inc.		29,639		1,956,174
U.S. Steel Corp.		152,295		3,399,224
				12,288,916
MORTGAGE REAL ESTATE INVESTMENT — 4.16%
Apollo Commercial Real Estate Finance Inc.		69,032		1,331,627
Blackstone Mortgage Trust Inc. Class A		82,999		2,563,009
Chimera Investment Corp.		156,051		3,177,198

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
CYS Investments Inc.		133,150	$	1,135,770
Invesco Mortgage Capital Inc.		97,944		1,597,467
MFA Financial Inc.		326,501		2,713,223
New Residential Investment Corp.b		268,586		4,477,329
Two Harbors Investment Corp.		302,962		3,026,590
				20,022,213
MULTI-UTILITIES — 1.65%
Avista Corp.		56,049		2,261,016
Black Hills Corp.		46,692		3,175,990
NorthWestern Corp.		42,146		2,519,488
				7,956,494
MULTILINE RETAIL — 0.63%
Dillard’s Inc. Class A		20,750		1,148,927
JC Penney Co. Inc.a,b		270,507		1,455,328
Sears Holdings Corp.a,b		42,865		438,080
				3,042,335
OIL, GAS & CONSUMABLE FUELS — 3.76%
CONSOL Energy Inc.a		154,731		2,348,817
CVR Energy Inc.		14,074		308,080
Oasis Petroleum Inc.a,b		207,886		2,482,159
PBF Energy Inc.		95,560		2,132,899
Western Refining Inc.		69,477		2,396,262
Whiting Petroleum Corp.a		244,774		2,031,624
World Fuel Services Corp.		61,258		2,256,132
WPX Energy Inc.a		346,367		4,132,158
				18,088,131
PAPER & FOREST PRODUCTS — 1.46%
Domtar Corp.		54,547		2,162,788
KapStone Paper and Packaging Corp.		76,678		1,617,139
Louisiana-Pacific Corp.a		125,774		3,237,423
				7,017,350
PERSONAL PRODUCTS — 0.39%
Avon Products Inc.a		383,686		1,860,877
				1,860,877
PROFESSIONAL SERVICES — 0.34%
Korn/Ferry International		50,321		1,630,400
				1,630,400
ROAD & RAIL — 1.29%
Avis Budget Group Inc.a		74,943		2,285,762
Hertz Global Holdings Inc.a,b		63,629		1,049,242
Swift Transportation Co.a		72,959		1,793,332
Werner Enterprises Inc.		39,298		1,072,835
				6,201,171

Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.76%
Semtech Corp.a		57,204	$	1,953,516
Synaptics Inc.a,b		31,057		1,700,992
				3,654,508
SOFTWARE — 0.88%
TiVo Corp.		105,805		2,089,649
Verint Systems Inc.a		54,902		2,157,648
				4,247,297
SPECIALTY RETAIL — 2.30%
Chico’s FAS Inc.		113,212		1,564,590
GameStop Corp. Class A		89,147		2,022,746
Group 1 Automotive Inc.		17,460		1,203,867
Guess? Inc.		54,615		609,503
Lithia Motors Inc. Class A		20,839		1,991,167
Murphy USA Inc.a,b		30,381		2,113,606
Penske Automotive Group Inc.		32,882		1,568,800
				11,074,279
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.56%
Diebold Nixdorf Inc.		66,139		1,865,120
Super Micro Computer Inc.a,b		33,193		809,909
				2,675,029
TEXTILES, APPAREL & LUXURY GOODS — 0.48%
Deckers Outdoor Corp.a,b		28,050		1,671,500
Fossil Group Inc.a,b		37,128		640,458
				2,311,958
THRIFTS & MORTGAGE FINANCE — 2.43%
Astoria Financial Corp.		79,824		1,627,612
Flagstar Bancorp. Inc.a		18,154		530,823
MGIC Investment Corp.a		296,893		3,129,252
Nationstar Mortgage Holdings Inc.a,b		28,584		460,488
Northwest Bancshares Inc.		89,472		1,444,078
Provident Financial Services Inc.		53,178		1,366,143
Radian Group Inc.b		186,876		3,154,467
				11,712,863
TOBACCO — 0.34%
Universal Corp./VA		22,136		1,625,889
				1,625,889
TRADING COMPANIES & DISTRIBUTORS — 2.89%
Air Lease Corp.		83,657		3,190,678
Aircastle Ltd.		49,097		1,159,671
Applied Industrial Technologies Inc.		33,979		2,174,656

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MORNINGSTAR SMALL-CAP VALUE ETF

April 30, 2017

Security	Shares		Value
GATX Corp.		34,338	$	2,056,846
MRC Global Inc.a		83,334		1,519,179
NOW Inc.a		94,372		1,605,268
WESCO International Inc.a		36,704		2,237,109
				13,943,407
WATER UTILITIES — 0.30%
American States Water Co.		32,111		1,429,582
				1,429,582
WIRELESS TELECOMMUNICATION SERVICES — 0.56%
Telephone & Data Systems Inc.		81,636		2,241,725
U.S. Cellular Corp.a		11,984		469,533
				2,711,258
TOTAL COMMON STOCKS (Cost: $425,272,543)				480,799,604
SHORT-TERM INVESTMENTS — 7.09%
MONEY MARKET FUNDS — 7.09%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		33,502,189		33,515,589

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		611,204	$	611,204
				34,126,793
TOTAL SHORT-TERM INVESTMENTS (Cost: $34,116,174)				34,126,793
TOTAL INVESTMENTS IN SECURITIES — 106.93% (Cost: $459,388,717)f				514,926,397
Other Assets, Less Liabilities — (6.93)%				(33,375,088	)
NET ASSETS — 100.00%			$	481,551,309

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $466,146,084. Net unrealized appreciation was $48,780,313, of which $77,565,674 represented gross unrealized appreciation on securities and $28,785,361 represented gross unrealized depreciation on securities.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund (excluding affiliated money market funds) during the year ended April 30, 2017, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated issuer	Shares held at beginning of year		Shares purchased		Shares sold			Shares held at end of year		Value at end of year		Dividend income		Net realized gain (loss)
PennyMac Mortgage Investment Trust		53,341		2,067		(55,408	)		—	$	—	$	—	$	(480,967	)

Schedule 2 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	480,799,604	$	—	$	—	$	480,799,604
Money market funds		34,126,793		—		—		34,126,793
Total	$	514,926,397	$	—	$	—	$	514,926,397

See notes to financial statements.

SCHEDULES OF INVESTMENTS 63

Statements of Assets and Liabilities

iSHARES^® TRUST

April 30, 2017

	iShares Morningstar Large-Cap ETF			iShares Morningstar Large-Cap Growth ETF			iShares Morningstar Large-Cap Value ETF
ASSETS
Investments, at cost:
Unaffiliated	$	662,571,395		$	519,260,553		$	334,241,968
Affiliated (Note 2)		892,050			11,099,648			3,154,669
Total cost of investments	$	663,463,445		$	530,360,201		$	337,396,637
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	813,570,127		$	722,428,598		$	376,068,177
Affiliated (Note 2)		892,050			12,270,814			4,458,992
Total fair value of investments		814,462,177			734,699,412			380,527,169
Cash		27,272			41			—
Receivables:
Dividends and interest		462,798			415,032			778,191
Total Assets		814,952,247			735,114,485			381,305,360
LIABILITIES
Payables:
Investment securities purchased		—			—			959,427
Collateral for securities on loan (Note 1)		387,564			5,942,908			—
Investment advisory fees (Note 2)		131,468			145,451			78,103
Total Liabilities		519,032			6,088,359			1,037,530
NET ASSETS	$	814,433,215		$	729,026,126		$	380,267,830
Net assets consist of:
Paid-in capital	$	692,313,492		$	599,826,459		$	379,372,448
Undistributed net investment income		735,724			245,452			745,887
Accumulated net realized loss		(29,614,733	)		(75,384,996	)		(42,981,037	)
Net unrealized appreciation		150,998,732			204,339,211			43,130,532
NET ASSETS	$	814,433,215		$	729,026,126		$	380,267,830
Shares outstandingb		5,700,000			5,350,000			4,000,000
Net asset value per share	$	142.88		$	136.27		$	95.07

^a  Securities on loan with values of $378,747, $5,813,997 and $  —, respectively. See Note 1.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2017

	iShares Morningstar Mid-Cap ETF			iShares Morningstar Mid-Cap Growth ETF			iShares Morningstar Mid-Cap Value ETF
ASSETS
Investments, at cost:
Unaffiliated	$	644,447,494		$	164,995,845		$	338,434,996
Affiliated (Note 2)		33,999,245			14,021,332			15,825,248
Total cost of investments	$	678,446,739		$	179,017,177		$	354,260,244
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	746,681,058		$	212,598,768		$	384,196,931
Affiliated (Note 2)		34,003,135			14,025,119			15,825,801
Total fair value of investments		780,684,193			226,623,887			400,022,732
Cash		49,755			—			—
Receivables:
Investment securities sold		—			—			140,810
Dividends and interest		395,427			66,807			263,605
Total Assets		781,129,375			226,690,694			400,427,147
LIABILITIES
Payables:
Investment securities purchased		—			—			156,062
Collateral for securities on loan (Note 1)		33,370,877			13,867,657			15,652,787
Due to custodian		—			99			—
Investment advisory fees (Note 2)		151,618			50,085			94,355
Total Liabilities		33,522,495			13,917,841			15,903,204
NET ASSETS	$	747,606,880		$	212,772,853		$	384,523,943
Net assets consist of:
Paid-in capital	$	679,693,026		$	244,457,232		$	354,597,198
Accumulated net realized loss		(34,323,600	)		(79,291,089	)		(15,835,743	)
Net unrealized appreciation		102,237,454			47,606,710			45,762,488
NET ASSETS	$	747,606,880		$	212,772,853		$	384,523,943
Shares outstandingb		4,450,000			1,200,000			2,600,000
Net asset value per share	$	168.00		$	177.31		$	147.89

^a  Securities on loan with values of $31,770,069, $13,406,152 and $15,123,857, respectively. See Note 1.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

FINANCIAL STATEMENTS 65

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2017

	iShares Morningstar Small-Cap ETF			iShares Morningstar Small-Cap Growth ETF			iShares Morningstar Small-Cap Value ETF
ASSETS
Investments, at cost:
Unaffiliated	$	205,630,321		$	97,412,088		$	425,272,543
Affiliated (Note 2)		19,847,373			24,245,689			34,116,174
Total cost of investments	$	225,477,694		$	121,657,777		$	459,388,717
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	241,547,985		$	116,510,991		$	480,799,604
Affiliated (Note 2)		19,851,881			24,253,764			34,126,793
Total fair value of investments		261,399,866			140,764,755			514,926,397
Receivables:
Investment securities sold		—			91,069			—
Dividends and interest		114,677			26,562			246,931
Total Assets		261,514,543			140,882,386			515,173,328
LIABILITIES
Payables:
Investment securities purchased		—			992,410			—
Collateral for securities on loan (Note 1)		19,820,573			23,736,591			33,503,663
Investment advisory fees (Note 2)		50,220			28,072			118,356
Total Liabilities		19,870,793			24,757,073			33,622,019
NET ASSETS	$	241,643,750		$	116,125,313		$	481,551,309
Net assets consist of:
Paid-in capital	$	223,402,485		$	105,959,829		$	453,096,435
Distributions in excess of net investment income		—			—			(49,562	)
Accumulated net realized loss		(17,680,907	)		(8,941,494	)		(27,033,244	)
Net unrealized appreciation		35,922,172			19,106,978			55,537,680
NET ASSETS	$	241,643,750		$	116,125,313		$	481,551,309
Shares outstandingb		1,500,000			750,000			3,350,000
Net asset value per share	$	161.10		$	154.83		$	143.75

^a  Securities on loan with values of $18,765,472, $23,082,953 and $32,214,101, respectively. See Note 1.

^b  No par value, unlimited number of shares authorized.

See notes to financial statements.

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^® TRUST

Year ended April 30, 2017

	iShares Morningstar Large-Cap ETF			iShares Morningstar Large-Cap Growth ETF		iShares Morningstar Large-Cap Value ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	14,609,880		$	8,404,827	$	10,072,511
Dividends — affiliated (Note 2)		3,228			162,415		68,107
Securities lending income — affiliated — net (Note 2)		35,016			158,984		6,185
Total investment income		14,648,124			8,726,226		10,146,803
EXPENSES
Investment advisory fees (Note 2)		1,357,465			1,878,609		836,119
Total expenses		1,357,465			1,878,609		836,119
Net investment income		13,290,659			6,847,617		9,310,684
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(9,093,645	)		9,439,415		11,045,319
Investments — affiliated (Note 2)		192			16,262		32,959
In-kind redemptions — unaffiliated		29,682,868			73,075,899		1,526,067
In-kind redemptions — affiliated (Note 2)		—			508,115		13,635
Realized gain distributions from affiliated funds		27			112		25
Net realized gain		20,589,442			83,039,803		12,618,005
Net change in unrealized appreciation/depreciation		95,523,305			33,323,695		23,309,033
Net realized and unrealized gain		116,112,747			116,363,498		35,927,038
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	129,403,406		$	123,211,115	$	45,237,722

See notes to financial statements.

FINANCIAL STATEMENTS 67

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended April 30, 2017

	iShares Morningstar Mid-Cap ETF			iShares Morningstar Mid-Cap Growth ETF		iShares Morningstar Mid-Cap Value ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	9,563,767		$	1,554,874	$	6,512,812
Dividends — affiliated (Note 2)		2,959			762		1,374
Securities lending income — affiliated — net (Note 2)		159,319			89,745		23,746
Total investment income		9,726,045			1,645,381		6,537,932
EXPENSES
Investment advisory fees (Note 2)		1,589,837			603,786		831,309
Total expenses		1,589,837			603,786		831,309
Net investment income		8,136,208			1,041,595		5,706,623
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(2,463,915	)		6,044,269		(5,250,762	)
Investments — affiliated (Note 2)		4,912			2,329		1
In-kind redemptions — unaffiliated		20,605,666			8,916,950		21,002,428
Realized gain distributions from affiliated funds		20			11		27
Net realized gain		18,146,683			14,963,559		15,751,694
Net change in unrealized appreciation/depreciation		72,413,881			14,102,165		24,847,634
Net realized and unrealized gain		90,560,564			29,065,724		40,599,328
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	98,696,772		$	30,107,319	$	46,305,951

^a  Net of foreign withholding tax of $  —, $2,530 and $546, respectively.

See notes to financial statements.

68 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended April 30, 2017

	iShares Morningstar Small-Cap ETF		iShares Morningstar Small-Cap Growth ETF		iShares Morningstar Small-Cap Value ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	2,879,805	$	814,074	$	10,350,505
Dividends — affiliated (Note 2)		1,405		440		2,128
Securities lending income — affiliated — net (Note 2)		140,622		205,968		563,058
Total investment income		3,021,832		1,020,482		10,915,691
EXPENSES
Investment advisory fees (Note 2)		548,269		339,694		1,263,933
Total expenses		548,269		339,694		1,263,933
Net investment income		2,473,563		680,788		9,651,758
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		876,729		1,341,835		(4,159,997	)
Investments — affiliated (Note 2)		2,857		2,156		(479,659	)
In-kind redemptions — unaffiliated		16,577,771		2,741,947		32,600,380
Realized gain distributions from affiliated funds		12		—		41
Net realized gain		17,457,369		4,085,938		27,960,765
Net change in unrealized appreciation/depreciation		22,636,139		15,922,063		37,241,224
Net realized and unrealized gain		40,093,508		20,008,001		65,201,989
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	42,567,071	$	20,688,789	$	74,853,747

^a  Net of foreign withholding tax of $1, $283 and $8,591, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 69

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Morningstar Large-Cap ETF						iShares Morningstar Large-Cap Growth ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	13,290,659		$	11,596,095		$	6,847,617		$	7,577,495
Net realized gain		20,589,442			29,648,110			83,039,803			30,571,927
Net change in unrealized appreciation/depreciation		95,523,305			(36,391,810	)		33,323,695			(45,520,780	)
Net increase (decrease) in net assets resulting from operations		129,403,406			4,852,395			123,211,115			(7,371,358	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(14,027,823	)		(14,935,231	)		(6,602,273	)		(8,221,970	)
Total distributions to shareholders		(14,027,823	)		(14,935,231	)		(6,602,273	)		(8,221,970	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		195,600,016			72,321,439			—			174,311,345
Cost of shares redeemed		(105,469,241	)		(121,143,939	)		(178,828,654	)		(93,719,941	)
Net increase (decrease) in net assets from capital share transactions		90,130,775			(48,822,500	)		(178,828,654	)		80,591,404
INCREASE (DECREASE) IN NET ASSETS		205,506,358			(58,905,336	)		(62,219,812	)		64,998,076
NET ASSETS
Beginning of year		608,926,857			667,832,193			791,245,938			726,247,862
End of year	$	814,433,215		$	608,926,857		$	729,026,126		$	791,245,938
Undistributed net investment income included in net assets at end of year	$	735,724		$	594,963		$	245,452		$	—
SHARES ISSUED AND REDEEMED
Shares sold		1,450,000			600,000			—			1,450,000
Shares redeemed		(800,000	)		(1,000,000	)		(1,450,000	)		(800,000	)
Net increase (decrease) in shares outstanding		650,000			(400,000	)		(1,450,000	)		650,000

See notes to financial statements.

70 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Morningstar Large-Cap Value ETF						iShares Morningstar Mid-Cap ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	9,310,684		$	8,593,293		$	8,136,208		$	8,267,459
Net realized gain		12,618,005			8,016,217			18,146,683			10,957,052
Net change in unrealized appreciation/depreciation		23,309,033			(11,326,185	)		72,413,881			(31,233,717	)
Net increase (decrease) in net assets resulting from operations		45,237,722			5,283,325			98,696,772			(12,009,206	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,262,961	)		(8,461,262	)		(10,908,517	)		(8,762,394	)
Total distributions to shareholders		(9,262,961	)		(8,461,262	)		(10,908,517	)		(8,762,394	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		63,995,622			35,993,228			194,357,540			142,404,188
Cost of shares redeemed		(8,803,920	)		(49,147,480	)		(74,601,122	)		(96,645,293	)
Net increase (decrease) in net assets from capital share transactions		55,191,702			(13,154,252	)		119,756,418			45,758,895
INCREASE (DECREASE) IN NET ASSETS		91,166,463			(16,332,189	)		207,544,673			24,987,295
NET ASSETS
Beginning of year		289,101,367			305,433,556			540,062,207			515,074,912
End of year	$	380,267,830		$	289,101,367		$	747,606,880		$	540,062,207
Undistributed net investment income included in net assets at end of year	$	745,887		$	698,140		$	—		$	—
SHARES ISSUED AND REDEEMED
Shares sold		700,000			450,000			1,250,000			950,000
Shares redeemed		(100,000	)		(600,000	)		(500,000	)		(650,000	)
Net increase (decrease) in shares outstanding		600,000			(150,000	)		750,000			300,000

See notes to financial statements.

FINANCIAL STATEMENTS 71

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Morningstar Mid-Cap Growth ETF						iShares Morningstar Mid-Cap Value ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,041,595		$	844,919		$	5,706,623		$	4,623,413
Net realized gain		14,963,559			9,676,174			15,751,694			11,165,791
Net change in unrealized appreciation/depreciation		14,102,165			(25,840,699	)		24,847,634			(12,930,144	)
Net increase (decrease) in net assets resulting from operations		30,107,319			(15,319,606	)		46,305,951			2,859,060
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,077,603	)		(908,775	)		(5,788,007	)		(4,725,652	)
Total distributions to shareholders		(1,077,603	)		(908,775	)		(5,788,007	)		(4,725,652	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		8,674,396			7,772,692			218,613,528			25,160,189
Cost of shares redeemed		(32,286,642	)		(15,348,668	)		(69,309,929	)		(55,098,649	)
Net increase (decrease) in net assets from capital share transactions		(23,612,246	)		(7,575,976	)		149,303,599			(29,938,460	)
INCREASE (DECREASE) IN NET ASSETS		5,417,470			(23,804,357	)		189,821,543			(31,805,052	)
NET ASSETS
Beginning of year		207,355,383			231,159,740			194,702,400			226,507,452
End of year	$	212,772,853		$	207,355,383		$	384,523,943		$	194,702,400
SHARES ISSUED AND REDEEMED
Shares sold		50,000			50,000			1,550,000			200,000
Shares redeemed		(200,000	)		(100,000	)		(500,000	)		(450,000	)
Net increase (decrease) in shares outstanding		(150,000	)		(50,000	)		1,050,000			(250,000	)

See notes to financial statements.

72 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Morningstar Small-Cap ETF						iShares Morningstar Small-Cap Growth ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,473,563		$	3,136,631		$	680,788		$	707,884
Net realized gain		17,457,369			4,719,083			4,085,938			5,562,482
Net change in unrealized appreciation/depreciation		22,636,139			(14,880,313	)		15,922,063			(12,820,625	)
Net increase (decrease) in net assets resulting from operations		42,567,071			(7,024,599	)		20,688,789			(6,550,259	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,674,180	)		(2,949,748	)		(1,467,651	)		(673,264	)
Total distributions to shareholders		(3,674,180	)		(2,949,748	)		(1,467,651	)		(673,264	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		63,244,557			43,828,228			—			14,689,481
Cost of shares redeemed		(55,440,700	)		(63,440,027	)		(14,079,350	)		(14,905,373	)
Net increase (decrease) in net assets from capital share transactions		7,803,857			(19,611,799	)		(14,079,350	)		(215,892	)
INCREASE (DECREASE) IN NET ASSETS		46,696,748			(29,586,146	)		5,141,788			(7,439,415	)
NET ASSETS
Beginning of year		194,947,002			224,533,148			110,983,525			118,422,940
End of year	$	241,643,750		$	194,947,002		$	116,125,313		$	110,983,525
Undistributed net investment income included in net assets at end of year	$	—		$	186,883		$	—		$	34,620
SHARES ISSUED AND REDEEMED
Shares sold		400,000			300,000			—			100,000
Shares redeemed		(350,000	)		(450,000	)		(100,000	)		(100,000	)
Net increase (decrease) in shares outstanding		50,000			(150,000	)		(100,000	)		—

See notes to financial statements.

FINANCIAL STATEMENTS 73

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

		iShares Morningstar Small-Cap Value ETF
	Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	9,651,758		$	9,839,725
Net realized gain		27,960,765			8,462,836
Net change in unrealized appreciation/depreciation		37,241,224			(31,687,780	)
Net increase (decrease) in net assets resulting from operations		74,853,747			(13,385,219	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(10,611,019	)		(9,547,820	)
Total distributions to shareholders		(10,611,019	)		(9,547,820	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		150,252,156			51,124,667
Cost of shares redeemed		(111,943,167	)		(79,571,291	)
Net increase (decrease) in net assets from capital share transactions		38,308,989			(28,446,624	)
INCREASE (DECREASE) IN NET ASSETS		102,551,717			(51,379,663	)
NET ASSETS
Beginning of year		378,999,592			430,379,255
End of year	$	481,551,309		$	378,999,592
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(49,562	)	$	291,986
SHARES ISSUED AND REDEEMED
Shares sold		1,050,000			400,000
Shares redeemed		(800,000	)		(650,000	)
Net increase (decrease) in shares outstanding		250,000			(250,000	)

See notes to financial statements.

74 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Large-Cap ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	120.58		$	122.54		$	110.41		$	94.86		$	79.37
Income from investment operations:
Net investment incomea		2.57			2.27			2.33			2.17			1.88
Net realized and unrealized gain (loss)b		22.44			(1.27	)		12.05			15.49			15.49
Total from investment operations		25.01			1.00			14.38			17.66			17.37
Less distributions from:
Net investment income		(2.71	)		(2.96	)		(2.25	)		(2.11	)		(1.88	)
Total distributions		(2.71	)		(2.96	)		(2.25	)		(2.11	)		(1.88	)
Net asset value, end of year	$	142.88		$	120.58		$	122.54		$	110.41		$	94.86
Total return		20.97	%		0.87	%		13.09	%		18.80	%		22.23	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	814,433		$	608,927		$	667,832		$	469,247		$	336,736
Ratio of expenses to average net assets		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of net investment income to average net assets		1.96	%		1.91	%		1.96	%		2.13	%		2.27	%
Portfolio turnover ratec		45	%		39	%		27	%		35	%		63	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 75

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Large-Cap Growth ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	116.36		$	118.09		$	100.37		$	83.14		$	77.06
Income from investment operations:
Net investment incomea		1.12			1.13			1.11			0.93			1.06
Net realized and unrealized gain (loss)b		19.88			(1.64	)		17.67			17.26			6.08
Total from investment operations		21.00			(0.51	)		18.78			18.19			7.14
Less distributions from:
Net investment income		(1.09	)		(1.22	)		(1.06	)		(0.96	)		(1.06	)
Total distributions		(1.09	)		(1.22	)		(1.06	)		(0.96	)		(1.06	)
Net asset value, end of year	$	136.27		$	116.36		$	118.09		$	100.37		$	83.14
Total return		18.15	%		(0.44	)%		18.77	%		21.98	%		9.36	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	729,026		$	791,246		$	726,248		$	521,926		$	448,978
Ratio of expenses to average net assets		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets		0.91	%		0.96	%		0.99	%		1.00	%		1.37	%
Portfolio turnover ratec		31	%		22	%		21	%		23	%		42	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

76 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Large-Cap Value ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	85.03		$	86.04		$	82.96		$	72.21		$	62.95
Income from investment operations:
Net investment incomea		2.53			2.56			2.21			2.05			1.84
Net realized and unrealized gain (loss)b		10.03			(1.03	)		3.07			10.75			9.28
Total from investment operations		12.56			1.53			5.28			12.80			11.12
Less distributions from:
Net investment income		(2.52	)		(2.54	)		(2.20	)		(2.05	)		(1.86	)
Total distributions		(2.52	)		(2.54	)		(2.20	)		(2.05	)		(1.86	)
Net asset value, end of year	$	95.07		$	85.03		$	86.04		$	82.96		$	72.21
Total return		14.95	%		1.92	%		6.42	%		17.98	%		18.02	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	380,268		$	289,101		$	305,434		$	298,657		$	259,965
Ratio of expenses to average net assets		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets		2.78	%		3.10	%		2.60	%		2.67	%		2.83	%
Portfolio turnover ratec		31	%		27	%		14	%		26	%		45	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 77

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Mid-Cap ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	145.96		$	151.49		$	133.53		$	111.77		$	96.32
Income from investment operations:
Net investment incomea		2.01			2.30			2.01			1.55			1.46
Net realized and unrealized gain (loss)b		22.68			(5.42	)		18.03			21.81			15.35
Total from investment operations		24.69			(3.12	)		20.04			23.36			16.81
Less distributions from:
Net investment income		(2.65	)		(2.41	)		(2.08	)		(1.60	)		(1.36	)
Total distributions		(2.65	)		(2.41	)		(2.08	)		(1.60	)		(1.36	)
Net asset value, end of year	$	168.00		$	145.96		$	151.49		$	133.53		$	111.77
Total return		17.06	%		(2.03	)%		15.09	%		21.04	%		17.65	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	747,607		$	540,062		$	515,075		$	280,415		$	195,605
Ratio of expenses to average net assets		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets		1.28	%		1.59	%		1.39	%		1.26	%		1.48	%
Portfolio turnover ratec		56	%		51	%		55	%		50	%		90	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

78 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Mid-Cap Growth ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	153.60		$	165.11		$	142.18		$	119.51		$	106.71
Income from investment operations:
Net investment incomea		0.84			0.60			0.60			0.55			0.72
Net realized and unrealized gain (loss)b		23.76			(11.46	)		23.19			22.75			12.93
Total from investment operations		24.60			(10.86	)		23.79			23.30			13.65
Less distributions from:
Net investment income		(0.89	)		(0.65	)		(0.86	)		(0.63	)		(0.85	)
Total distributions		(0.89	)		(0.65	)		(0.86	)		(0.63	)		(0.85	)
Net asset value, end of year	$	177.31		$	153.60		$	165.11		$	142.18		$	119.51
Total return		16.06	%		(6.58	)%		16.78	%		19.52	%		12.89	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	212,773		$	207,355		$	231,160		$	199,052		$	167,313
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income to average net assets		0.52	%		0.39	%		0.39	%		0.41	%		0.67	%
Portfolio turnover ratec		47	%		44	%		50	%		41	%		73	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 79

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Mid-Cap Value ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	125.61		$	125.84		$	118.75		$	96.24		$	79.43
Income from investment operations:
Net investment incomea		2.87			2.86			2.38			2.28			2.02
Net realized and unrealized gain (loss)b		22.21			(0.12	)		7.22			22.46			16.75
Total from investment operations		25.08			2.74			9.60			24.74			18.77
Less distributions from:
Net investment income		(2.80	)		(2.97	)		(2.51	)		(2.23	)		(1.96	)
Total distributions		(2.80	)		(2.97	)		(2.51	)		(2.23	)		(1.96	)
Net asset value, end of year	$	147.89		$	125.61		$	125.84		$	118.75		$	96.24
Total return		20.15	%		2.29	%		8.13	%		25.94	%		24.06	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	384,524		$	194,702		$	226,507		$	189,994		$	120,302
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income to average net assets		2.06	%		2.37	%		1.93	%		2.11	%		2.46	%
Portfolio turnover ratec		38	%		38	%		33	%		39	%		66	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

80 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Small-Cap ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	134.45		$	140.33		$	130.00		$	107.69		$	93.85
Income from investment operations:
Net investment incomea		1.67			2.05			1.61			1.21			1.55
Net realized and unrealized gain (loss)b		27.48			(5.99	)		10.40			22.28			14.04
Total from investment operations		29.15			(3.94	)		12.01			23.49			15.59
Less distributions from:
Net investment income		(2.50	)		(1.94	)		(1.68	)		(1.18	)		(1.75	)
Total distributions		(2.50	)		(1.94	)		(1.68	)		(1.18	)		(1.75	)
Net asset value, end of year	$	161.10		$	134.45		$	140.33		$	130.00		$	107.69
Total return		21.86	%		(2.78	)%		9.27	%		21.89	%		16.88	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	241,644		$	194,947		$	224,533		$	214,500		$	161,536
Ratio of expenses to average net assets		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of net investment income to average net assets		1.13	%		1.53	%		1.19	%		0.99	%		1.63	%
Portfolio turnover ratec		66	%		65	%		61	%		68	%		98	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 81

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Small-Cap Growth ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	130.57		$	139.32		$	125.88		$	103.68		$	92.49
Income from investment operations:
Net investment incomea		0.86			0.83			0.77			0.67			0.87
Net realized and unrealized gain (loss)b		25.25			(8.79	)		13.49			22.29			11.56
Total from investment operations		26.11			(7.96	)		14.26			22.96			12.43
Less distributions from:
Net investment income		(1.85	)		(0.79	)		(0.82	)		(0.76	)		(1.24	)
Total distributions		(1.85	)		(0.79	)		(0.82	)		(0.76	)		(1.24	)
Net asset value, end of year	$	154.83		$	130.57		$	139.32		$	125.88		$	103.68
Total return		20.10	%		(5.73	)%		11.35	%		22.16	%		13.59	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	116,125		$	110,984		$	118,423		$	132,177		$	93,315
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income to average net assets		0.60	%		0.62	%		0.58	%		0.55	%		0.93	%
Portfolio turnover ratec		63	%		59	%		61	%		62	%		81	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

82 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Morningstar Small-Cap Value ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	122.26		$	128.47		$	122.17		$	103.19		$	86.62
Income from investment operations:
Net investment incomea		3.08			3.04			3.11			2.10			2.44
Net realized and unrealized gain (loss)b		21.83			(6.28	)		6.40			19.15			16.53
Total from investment operations		24.91			(3.24	)		9.51			21.25			18.97
Less distributions from:
Net investment income		(3.42	)		(2.97	)		(3.21	)		(2.27	)		(2.40	)
Total distributions		(3.42	)		(2.97	)		(3.21	)		(2.27	)		(2.40	)
Net asset value, end of year	$	143.75		$	122.26		$	128.47		$	122.17		$	103.19
Total return		20.58	%		(2.42	)%		7.83	%		20.78	%		22.32	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	481,551		$	379,000		$	430,379		$	366,517		$	278,624
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income to average net assets		2.29	%		2.56	%		2.47	%		1.85	%		2.67	%
Portfolio turnover ratec		48	%		51	%		40	%		52	%		69	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 83

Notes to Financial Statements

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification Classification
Morningstar Large-Cap		Diversified
Morningstar Large-Cap Growth		Non-diversified
Morningstar Large-Cap Value		Non-diversified
Morningstar Mid-Cap		Diversified
Morningstar Mid-Cap Growth		Diversified

iShares ETF	Diversification Classification
Morningstar Mid-Cap Value		Diversified
Morningstar Small-Cap		Diversified
Morningstar Small-Cap Growth		Diversified
Morningstar Small-Cap Value		Diversified

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

84 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

• Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration factors that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing

NOTES TO FINANCIAL STATEMENTS 85

Notes to Financial Statements (Continued)

iSHARES^® TRUST

transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of April 30, 2017 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated and recorded as a reduction of cost of the related investment and/or reclassified to capital gains. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

On October 11, 2016, BlackRock, Inc. (“BlackRock”) implemented changes required by amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. The Funds may be exposed to additional risks when reinvesting the cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00 and which may be subject to redemption gates or liquidity fees under certain circumstances.

Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of April 30, 2017, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of April 30, 2017 and the total value of the related cash collateral are disclosed in the

86 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of April 30, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
Morningstar Large-Cap
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)	$	378,747	$	378,747	$	—
Morningstar Large-Cap Growth
Goldman Sachs & Co.	$	152,010	$	152,010	$	—
JPMorgan Securities LLC		1,498,361		1,498,361		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		2,097,988		2,097,988		—
Wells Fargo Securities LLC		2,065,638		2,065,638		—
	$	5,813,997	$	5,813,997	$	—
Morningstar Mid-Cap
Barclays Capital Inc.	$	5,563	$	5,563	$	—
BNP Paribas Prime Brokerage Inc.		1,295,159		1,295,159		—
Citigroup Global Markets Inc.		375,140		375,140		—
Credit Suisse Securities (USA) LLC		959,336		959,336		—
Deutsche Bank Securities Inc.		3,807,126		3,807,126		—
Goldman Sachs & Co.		4,334,458		4,334,458		—
JPMorgan Securities LLC		4,525,015		4,525,015		—
Merrill Lynch, Pierce, Fenner & Smith		774,673		774,673		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		12,457,091		12,457,091		—
State Street Bank & Trust Company		3,065,666		3,065,666		—
UBS AG		113,932		113,932		—
UBS Securities LLC		56,910		56,910		—
	$	31,770,069	$	31,770,069	$	—

NOTES TO FINANCIAL STATEMENTS 87

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
Morningstar Mid-Cap Growth
Barclays Capital Inc.	$	27,300	$	27,300	$	—
BNP Paribas Prime Brokerage Inc.		63,953		63,953		—
BNP Paribas Prime Brokerage International Ltd.		1,294,642		1,294,642		—
Citigroup Global Markets Inc.		1,687,951		1,687,951		—
Credit Suisse Securities (USA) LLC		524,616		524,616		—
Deutsche Bank Securities Inc.		1,165,772		1,165,772		—
Goldman Sachs & Co.		1,586,346		1,586,346		—
HSBC Bank PLC		3,243		3,243		—
JPMorgan Securities LLC		2,191,829		2,191,829		—
Merrill Lynch, Pierce, Fenner & Smith		1,720,612		1,720,612		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		1,368,792		1,368,792		—
National Financial Services LLC		655,796		655,796		—
Scotia Capital (USA) Inc.		216,342		216,342		—
State Street Bank & Trust Company		867,310		867,310		—
UBS Securities LLC		15,168		15,168		—
Wells Fargo Securities LLC		16,480		16,480		—
	$	13,406,152	$	13,406,152	$	—
Morningstar Mid-Cap Value
BNP Paribas New York Branch	$	64,146	$	64,146	$	—
BNP Paribas Prime Brokerage International Ltd.		7,085,983		7,085,983		—
Citigroup Global Markets Inc.		1,496,653		1,496,653		—
Deutsche Bank Securities Inc.		888,719		888,719		—
Goldman Sachs & Co.		2,058,011		2,058,011		—
HSBC Bank PLC		64,526		64,526		—
JPMorgan Securities LLC		1,152,104		1,152,104		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		215,688		215,688		—
Scotia Capital (USA) Inc.		1,967,522		1,967,522		—
UBS AG		8,287		8,287		—
UBS Securities LLC		122,218		122,218		—
	$	15,123,857	$	15,123,857	$	—

88 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
Morningstar Small-Cap
Barclays Capital Inc.	$	1,356,587	$	1,356,587	$	—
BNP Paribas New York Branch		454,389		454,389		—
Citigroup Global Markets Inc.		951,053		951,053		—
Credit Suisse Securities (USA) LLC		2,454,862		2,454,862		—
Deutsche Bank Securities Inc.		52,296		52,221		(75	)
Goldman Sachs & Co.		5,213,401		5,213,401		—
JPMorgan Securities LLC		3,857,245		3,857,245		—
Merrill Lynch, Pierce, Fenner & Smith		6,203		6,203		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		506,179		506,179		—
National Financial Services LLC		406,441		406,441		—
Scotia Capital (USA) Inc.		556,825		556,825		—
State Street Bank & Trust Company		2,554,102		2,554,102		—
UBS AG		150,450		150,450		—
Wells Fargo Securities LLC		245,439		245,439		—
	$	18,765,472	$	18,765,397	$	(75	)
Morningstar Small-Cap Growth
Barclays Capital Inc.	$	1,157,923	$	1,157,923	$	—
BNP Paribas New York Branch		763,712		763,712		—
BNP Paribas Prime Brokerage Inc.		809,709		809,709		—
BNP Paribas Prime Brokerage International Ltd.		291,512		291,512		—
Citigroup Global Markets Inc.		1,492,620		1,492,620		—
Credit Suisse Securities (USA) LLC		652,001		652,001		—
Deutsche Bank Securities Inc.		1,538,363		1,538,363		—
Goldman Sachs & Co.		3,318,344		3,318,344		—
HSBC Bank PLC		374,001		374,001		—
Jefferies LLC		18,117		18,117		—
JPMorgan Securities LLC		3,290,215		3,290,215		—
Merrill Lynch, Pierce, Fenner & Smith		1,547,796		1,547,796		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		4,199,808		4,199,808		—
National Financial Services LLC		14,760		14,760		—
Scotia Capital (USA) Inc.		5,535		5,535		—
SG Americas Securities LLC		277,731		277,731		—
State Street Bank & Trust Company		2,597,548		2,597,548		—
UBS AG		94,297		94,297		—
UBS Securities LLC		88,930		88,930		—
Wells Fargo Securities LLC		550,031		550,031		—
	$	23,082,953	$	23,082,953	$	—

NOTES TO FINANCIAL STATEMENTS 89

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
Morningstar Small-Cap Value
Barclays Capital Inc.	$	1,649,708	$	1,649,708	$	—
BNP Paribas Prime Brokerage Inc.		204,413		204,413		—
Citigroup Global Markets Inc.		1,465,952		1,465,952		—
Credit Suisse Securities (USA) LLC		2,759,225		2,759,225		—
Goldman Sachs & Co.		6,271,497		6,271,497		—
HSBC Bank PLC		4,313		4,313		—
Jefferies LLC		18,500		18,500		—
JPMorgan Securities LLC		10,645,324		10,645,324		—
Merrill Lynch, Pierce, Fenner & Smith		133,425		133,425		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		7,111,601		7,111,601		—
Nomura Securities International Inc.		183,683		183,683		—
State Street Bank & Trust Company		859,637		859,637		—
UBS Securities LLC		396,880		396,880		—
Wells Fargo Securities LLC		509,943		509,943		—
	$	32,214,101	$	32,214,101	$	—

^a  Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

^b  Additional collateral is delivered to the Funds on the next business day in accordance with the MSLA. The net amount would be subject to the borrower default indemnity in the event of default by a counterparty.

RECENT ACCOUNTING STANDARD

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued a new rule, Investment Company Reporting Modernization, that modernizes and enhances the reporting and disclosure of information by registered investment companies. As part of these changes, the new rule amends Regulation S-X to require standardized, enhanced disclosures related to derivatives and updates to other disclosures in investment company financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is evaluating the impact, if any, of these changes on the Funds’ financial statements.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent Trustees).

90 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

iShares ETF	Investment Advisory Fee
Morningstar Large-Cap		0.20	%
Morningstar Large-Cap Growth		0.25
Morningstar Large-Cap Value		0.25
Morningstar Mid-Cap		0.25
Morningstar Mid-Cap Growth		0.30

iShares ETF	Investment Advisory Fee
Morningstar Mid-Cap Value		0.30	%
Morningstar Small-Cap		0.25
Morningstar Small-Cap Growth		0.30
Morningstar Small-Cap Value		0.30

The SEC has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement, each Fund retains 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.

For the year ended April 30, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Morningstar Large-Cap	$	14,569
Morningstar Large-Cap Growth		63,814
Morningstar Large-Cap Value		2,217
Morningstar Mid-Cap		69,226
Morningstar Mid-Cap Growth		39,876

iShares ETF	Fees Paid to BTC
Morningstar Mid-Cap Value	$	11,236
Morningstar Small-Cap		60,910
Morningstar Small-Cap Growth		89,068
Morningstar Small-Cap Value		223,711

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

NOTES TO FINANCIAL STATEMENTS 91

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For the year ended April 30, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
Morningstar Large-Cap	$	216,914,951	$	157,351,146
Morningstar Large-Cap Growth		124,800,786		138,843,214
Morningstar Large-Cap Value		65,555,673		67,611,684
Morningstar Mid-Cap		151,141,459		168,690,656
Morningstar Mid-Cap Growth		55,995,995		49,568,352
Morningstar Mid-Cap Value		72,562,858		59,214,898
Morningstar Small-Cap		84,164,548		81,749,405
Morningstar Small-Cap Growth		36,975,285		30,567,886
Morningstar Small-Cap Value		82,702,624		69,147,102

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain trustees and officers of the Trust are also officers of BTC and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended April 30, 2017 were as follows:

iShares ETF	Purchases		Sales
Morningstar Large-Cap	$	315,922,424	$	307,891,913
Morningstar Large-Cap Growth		234,941,192		234,886,671
Morningstar Large-Cap Value		102,980,219		102,580,649
Morningstar Mid-Cap		362,596,153		357,937,567
Morningstar Mid-Cap Growth		94,683,834		94,131,104
Morningstar Mid-Cap Value		112,807,061		105,196,694
Morningstar Small-Cap		146,552,111		144,776,089
Morningstar Small-Cap Growth		72,086,230		71,385,661
Morningstar Small-Cap Value		210,351,956		204,196,915

92 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the year ended April 30, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Morningstar Large-Cap	$	194,713,329	$	104,746,363
Morningstar Large-Cap Growth		—		178,248,269
Morningstar Large-Cap Value		63,763,889		8,698,641
Morningstar Mid-Cap		189,697,462		74,151,897
Morningstar Mid-Cap Growth		8,648,072		32,238,297
Morningstar Mid-Cap Value		213,746,390		69,193,755
Morningstar Small-Cap		61,428,244		55,181,162
Morningstar Small-Cap Growth		—		13,899,328
Morningstar Small-Cap Value		142,768,133		110,276,430

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5. PRINCIPAL RISKS

In the normal course of business, each Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global

NOTES TO FINANCIAL STATEMENTS 93

Notes to Financial Statements (Continued)

iSHARES^® TRUST

political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

6. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of April 30, 2017, attributable to passive foreign investment companies, the characterization of corporate actions, the expiration of capital loss carryforwards, distributions paid in excess of taxable income and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:

iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
Morningstar Large-Cap	$	28,934,133	$	877,925	$	(29,812,058	)
Morningstar Large-Cap Growth		50,910,998		108		(50,911,106	)
Morningstar Large-Cap Value		1,364,715		24		(1,364,739	)
Morningstar Mid-Cap		19,352,184		2,772,309		(22,124,493	)
Morningstar Mid-Cap Growth		8,603,777		36,008		(8,639,785	)
Morningstar Mid-Cap Value		20,200,582		81,384		(20,281,966	)
Morningstar Small-Cap		15,585,858		1,013,734		(16,599,592	)
Morningstar Small-Cap Growth		1,930,894		752,243		(2,683,137	)
Morningstar Small-Cap Value		30,412,059		617,713		(31,029,772	)

94 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The tax character of distributions paid during the years ended April 30, 2017 and April 30, 2016 was as follows:

iShares ETF	2017		2016
Morningstar Large-Cap
Ordinary income	$	14,027,823	$	14,935,231
Morningstar Large-Cap Growth
Ordinary income	$	6,602,273	$	8,221,970
Morningstar Large-Cap Value
Ordinary income	$	9,262,961	$	8,461,262
Morningstar Mid-Cap
Ordinary income	$	10,908,517	$	8,762,394
Morningstar Mid-Cap Growth
Ordinary income	$	1,077,603	$	908,775
Morningstar Mid-Cap Value
Ordinary income	$	5,788,007	$	4,725,652
Morningstar Small-Cap
Ordinary income	$	3,674,180	$	2,949,748
Morningstar Small-Cap Growth
Ordinary income	$	1,467,651	$	673,264
Morningstar Small-Cap Value
Ordinary income	$	10,611,019	$	9,547,820

As of April 30, 2017, the tax components of accumulated net earnings (losses) were as follows:

iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains  (Losses) a		Qualified Late-Year Losses b			Total
Morningstar Large-Cap	$	735,724	$	(26,000,885	)	$	147,384,884	$	—		$	122,119,723
Morningstar Large-Cap Growth		245,452		(72,939,694	)		201,893,909		—			129,199,667
Morningstar Large-Cap Value		745,887		(40,429,760	)		40,579,255		—			895,382
Morningstar Mid-Cap		—		(26,556,884	)		94,470,738		—			67,913,854
Morningstar Mid-Cap Growth		—		(78,230,587	)		46,817,661		(271,453	)		(31,684,379	)
Morningstar Mid-Cap Value		—		(9,055,365	)		38,982,110		—			29,926,745
Morningstar Small-Cap		—		(15,644,721	)		33,885,986		—			18,241,265
Morningstar Small-Cap Growth		—		(7,413,376	)		17,578,860		—			10,165,484
Morningstar Small-Cap Value		—		(20,325,439	)		48,780,313		—			28,454,874

^a  The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the characterization of corporate actions and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

^b  The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

NOTES TO FINANCIAL STATEMENTS 95

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of April 30, 2017, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring  a		Expiring 2018		Expiring 2019		Total
Morningstar Large-Cap	$	15,343,320	$	10,657,565	$	—	$	26,000,885
Morningstar Large-Cap Growth		5,598,724		66,358,290		982,680		72,939,694
Morningstar Large-Cap Value		—		34,918,156		5,511,604		40,429,760
Morningstar Mid-Cap		12,931,978		13,624,906		—		26,556,884
Morningstar Mid-Cap Growth		—		74,231,212		3,999,375		78,230,587
Morningstar Mid-Cap Value		1,993,220		7,062,145		—		9,055,365
Morningstar Small-Cap		9,489,900		6,154,821		—		15,644,721
Morningstar Small-Cap Growth		—		7,413,376		—		7,413,376
Morningstar Small-Cap Value		11,242,751		9,082,688		—		20,325,439

^a  Must be utilized prior to loses subject to expiration.

For the year ended April 30, 2017, the following Funds utilized their capital loss carryforwards as follows:

iShares ETF	Utilized
Morningstar Large-Cap Value	$	9,982,017
Morningstar Mid-Cap Growth		3,273,437
Morningstar Small-Cap Growth		676,879

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2017, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

7. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”). The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. The Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit.

8. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

96 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and

Shareholders of the iShares Morningstar Large-Cap ETF, iShares Morningstar Large-Cap Growth ETF,

iShares Morningstar Large-Cap Value ETF, iShares Morningstar Mid-Cap ETF,

iShares Morningstar Mid-Cap Growth ETF, iShares Morningstar Mid-Cap Value ETF,

iShares Morningstar Small-Cap ETF, iShares Morningstar Small-Cap Growth ETF and

iShares Morningstar Small-Cap Value ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Morningstar Large-Cap ETF, iShares Morningstar Large-Cap Growth ETF, iShares Morningstar Large-Cap Value ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Mid-Cap Growth ETF, iShares Morningstar Mid-Cap Value ETF, iShares Morningstar Small-Cap ETF, iShares Morningstar Small-Cap Growth ETF and iShares Morningstar Small-Cap Value ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

June 22, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 97

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended April 30, 2017:

iShares ETF	Qualified Dividend Income
Morningstar Large-Cap	$	15,054,950
Morningstar Large-Cap Growth		7,567,908
Morningstar Large-Cap Value		10,092,031
Morningstar Mid-Cap		8,873,208
Morningstar Mid-Cap Growth		1,239,369

iShares ETF	Qualified Dividend Income
Morningstar Mid-Cap Value	$	5,630,148
Morningstar Small-Cap		2,182,606
Morningstar Small-Cap Growth		1,012,080
Morningstar Small-Cap Value		7,269,399

For corporate shareholders, the percentage of income dividends paid during the fiscal year ended April 30, 2017 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends- Received Deduction
Morningstar Large-Cap		100.00	%
Morningstar Large-Cap Growth		100.00
Morningstar Large-Cap Value		100.00
Morningstar Mid-Cap		64.40
Morningstar Mid-Cap Growth		100.00

iShares ETF	Dividends- Received Deduction
Morningstar Mid-Cap Value		91.38	%
Morningstar Small-Cap		75.07
Morningstar Small-Cap Growth		74.93
Morningstar Small-Cap Value		70.87

98 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Morningstar Large-Cap	$	2.606028	$	—	$	0.104522	$	2.710550		96	%		—	%		4	%		100	%
Morningstar Large-Cap Growth		1.057579		—		0.028996		1.086575		97			—			3			100
Morningstar Large-Cap Value		2.518958		—		—		2.518958		100			—			—			100
Morningstar Mid-Cap		2.524102		—		0.130796		2.654898		95			—			5			100
Morningstar Mid-Cap Growth		0.845196		—		0.041873		0.887069		95			—			5			100
Morningstar Mid-Cap Value		2.746256		—		0.056938		2.803194		98			—			2			100
Morningstar Small-Cap		2.324370		—		0.177301		2.501671		93			—			7			100
Morningstar Small-Cap Growth		0.919285		—		0.934190		1.853475		50			—			50			100
Morningstar Small-Cap Value		3.003040		—		0.415993		3.419033		88			—			12			100

Premium/Discount Information

The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of a fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a fund on a given day, generally at the time the NAV is calculated. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of the NAV.

SUPPLEMENTAL INFORMATION 99

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

The following information shows the frequency of distributions of premiums and discounts for each of the Funds. The information shown for each Fund is for five calendar years (or from the inception date of the Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares Morningstar Large-Cap ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		660		50.00	%
At NAV		224		16.97
Less than 0.0% and Greater than –0.5%		436		33.03
		1,320		100.00	%

iShares Morningstar Large-Cap Growth ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		530		40.15	%
At NAV		188		14.24
Less than 0.0% and Greater than –0.5%		602		45.61
		1,320		100.00	%

iShares Morningstar Large-Cap Value ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		532		40.30	%
At NAV		192		14.55
Less than 0.0% and Greater than –0.5%		596		45.15
		1,320		100.00	%

100 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Morningstar Mid-Cap ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5%		1		0.08	%
Greater than 0.0% and Less than 0.5%		735		55.68
At NAV		191		14.47
Less than 0.0% and Greater than –0.5%		393		29.77
		1,320		100.00	%

iShares Morningstar Mid-Cap Growth ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		399		30.23	%
At NAV		206		15.61
Less than 0.0% and Greater than –0.5%		715		54.16
		1,320		100.00	%

iShares Morningstar Mid-Cap Value ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		579		43.86	%
At NAV		198		15.00
Less than 0.0% and Greater than –0.5%		543		41.14
		1,320		100.00	%

iShares Morningstar Small-Cap ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		1		0.08	%
Greater than 0.0% and Less than 0.5%		482		36.52
At NAV		156		11.82
Less than 0.0% and Greater than –0.5%		681		51.58
		1,320		100.00	%

SUPPLEMENTAL INFORMATION 101

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Morningstar Small-Cap Growth ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		407		30.83	%
At NAV		125		9.47
Less than 0.0% and Greater than –0.5%		788		59.70
		1,320		100.00	%

iShares Morningstar Small-Cap Value ETF

Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		571		43.26	%
At NAV		140		10.61
Less than 0.0% and Greater than –0.5%		609		46.13
		1,320		100.00	%

102 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 334 funds (as of April 30, 2017) within the Exchange-Traded Fund Complex. Drew E. Lawton, from October 2016 to June 2017, and Richard L. Fagnani, from April 2017 to June 2017, served as Advisory Board Members for iShares Trust, iShares, Inc. and iShares U.S. ETF Trust with respect to all funds within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small and Benjamin Archibald, the address of each Trustee and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Wiedman, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

Interested Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Robert S. Kapitoa (60)	Trustee (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).	Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedmanb (46)	Trustee (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Director of iShares, Inc. (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^a  Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

^b  Mark K. Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

TRUSTEE AND OFFICER INFORMATION 103

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Cecilia H. Herbert (68)	Trustee (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School.	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2016); Trustee of Forward Funds (17 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (61)	Trustee (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (62)	Trustee (since 2017).	Retired; Partner, KPMG LLP (2002-2016).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
Charles A. Hurty (73)	Trustee (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (61)	Trustee (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).
Drew E. Lawton (58)	Trustee (since 2017).	Senior Managing Director of New York Life Insurance Company (2010-2015).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (55)	Trustee (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

104 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Madhav V. Rajan (52)	Trustee (since 2011); Equity Plus Committee Chair and 15(c) Committee Chair (since 2016).	Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).

TRUSTEE AND OFFICER INFORMATION 105

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013): Secretary of the BlackRock-advised Mutual Funds (since 2012).
Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).
Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).
Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

^c  Manish Mehta served as President until October 15, 2016.

106 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morningstar, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds’ website.

©2017 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-404-0417

APRIL 30, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares Cohen & Steers REIT ETF  |  ICF  |  NYSE Arca

^Ø  iShares Core U.S. REIT ETF  |  USRT  |  NYSE Arca

^Ø  iShares Europe Developed Real Estate ETF  |  IFEU  |  NASDAQ

^Ø  iShares Global REIT ETF  |  REET  |  NYSE Arca

^Ø  iShares International Developed Real Estate ETF  |  IFGL  |  NASDAQ

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	16
Shareholder Expenses	16
Schedules of Investments	17
iShares Cohen & Steers REIT ETF	17
iShares Core U.S. REIT ETF	19
iShares Europe Developed Real Estate ETF	22
iShares Global REIT ETF	25
iShares International Developed Real Estate ETF	30
Financial Statements	34
Financial Highlights	41
Notes to Financial Statements	46
Report of Independent Registered Public Accounting Firm	59
Tax Information	60
Supplemental Information	61
Trustee and Officer Information	64

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended April 30, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 15.14% in U.S. dollar terms for the reporting period.

The broad rise in global equity markets was driven in part by increased economic stimulus actions from many of the world’s central banks, including expanded quantitative easing measures and negative interest rates. Other positive factors included a recovery in energy and commodities prices, as well as signs of stabilization in the Chinese economy. Global equity markets also faced a heightened level of volatility, particularly during the first half of the reporting period. For example, the affirmative vote on the United Kingdom’s “Brexit” referendum to leave the European Union, terrorist attacks in France, and an attempted coup in Turkey all contributed to an increase in volatility during the summer of 2016.

The bulk of the advance in global stocks, however, occurred during the last half of the reporting period, following the outcome of the U.S. presidential election in November 2016. The new presidential administration was expected to enact pro-business policies, including lower taxes, decreased regulation, and increased fiscal spending, aimed at stimulating U.S. economic growth. These expectations drove a strong global equity market advance that extended through the end of the reporting period, even as uncertainty emerged regarding how quickly the new administration would be able to implement its new policies.

The U.S. equity market returned the strongest performance among developed markets, returning approximately 18% for the reporting period. Despite robust employment growth and healthy consumer spending levels, the U.S. economy grew by 2.0% in 2016 — its slowest calendar-year growth rate since 2011. Nonetheless, U.S. stocks rose sharply based on the post-election optimism about the economy’s future prospects. U.S. stocks remained on a positive trajectory despite two short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the last half of the reporting period, which raised the federal funds interest rate target to a range of 0.75%-1.00%.

Equity markets in the Asia-Pacific region also generated strong returns, gaining approximately 13% in U.S. dollar terms for the reporting period. Hong Kong and Australian stocks were the leading performers, while stock markets in Singapore and New Zealand trailed other markets in the region.

European stock markets returned approximately 11% in U.S. dollar terms for the reporting period. The European Central Bank expanded its quantitative easing measures and maintained a negative interest rate policy, but economic activity across the Continent remained muted. Equity markets in Austria, Spain, and the Netherlands were the top performers, while Denmark was the only European market to decline during the reporting period. In the U.K., the equity market advanced by 20% for the reporting period, but a sharp decline in the British pound in the wake of the “Brexit” vote erased most of those gains, resulting in a 6% return in U.S. dollar terms.

Emerging markets stocks outperformed developed markets, increasing by more than 19% in U.S. dollar terms for the reporting period. Many emerging economies stabilized after several years of slowing growth as commodities prices decreased and export demand began to recover. Emerging markets in Asia generated the strongest returns, led by Taiwan and China, while stock markets in the Middle East trailed broad emerging markets indexes.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® COHEN & STEERS REIT ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		3.58%		3.53%		3.92%		3.58%		3.53%		3.92%
5 Years		8.48%		8.47%		8.87%		50.19%		50.18%		52.91%
10 Years		3.51%		3.51%		3.78%		41.17%		41.18%		44.91%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,033.30	$	1.71	$	1,000.00	$	1,023.10	$	1.71		0.34%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® COHEN & STEERS REIT ETF

The iShares Cohen & Steers REIT ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. real estate investment trusts (REITs), as represented by the Cohen & Steers Realty Majors Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 3.58%, net of fees, while the total return for the Index was 3.92%.

As represented by the Index, U.S. REITs posted a positive return for the reporting period, but trailed the performance of the broader U.S. equity market. Publicly traded real estate stocks often fluctuate in response to changes in interest rates, which affect both their borrowing costs and the attractiveness of their dividend yields.

The Index rose sharply early in the reporting period as the Fed left short-term interest rates unchanged. However, the Index reversed course in the second half of 2016, declining amid investor concerns about rising interest rates. Most notably, the Fed raised its short-term interest rate target in December 2016, and the new administration was expected to implement pro-growth fiscal policies that could lead to higher interest rates.

The Index rebounded somewhat in early 2017 due to improved earnings for many REITs and rising optimism about the U.S. economy. However, another Fed interest rate increase in March 2017 tempered the Index’s overall advance.

Within the Index, residential REITs contributed the most to the Index’s performance for the reporting period. Despite an increase in new construction, residential REITs benefited from strong employment growth and steady demand for rental housing. Specialized REITs were also meaningful contributors to the Index’s performance, led by data center REITs. The only industry in the Index to decline for the reporting period was retail REITs, which faced a challenging market environment as increasing e-commerce sales led to store closures among a number of brick-and-mortar retailers.

ALLOCATION BY SECTOR As of 4/30/17

Sector	Percentage of Total Investments*
Retail REITs		21.28	%
Specialized REITs		20.02
Residential REITs		19.39
Office REITs		16.24
Health Care REITs		13.86
Industrial REITs		6.30
Hotel & Resort REITs		2.91
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 4/30/17

Security	Percentage of Total Investments*
Equinix Inc.		7.09	%
Simon Property Group Inc.		7.02
Public Storage		6.85
Prologis Inc.		6.30
AvalonBay Communities Inc.		5.71
Welltower Inc.		5.68
Equity Residential		5.18
Ventas Inc.		4.97
Boston Properties Inc.		4.27
Digital Realty Trust Inc.		4.00
TOTAL		57.07	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® CORE U.S. REIT ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	1 Year		5 Years		Since Inception		1 Year		5 Years		Since Inception
Fund NAV		6.02%		8.47%		4.20%		6.02%		50.14%		50.83%
Fund Market		6.00%		8.47%		4.15%		6.00%		50.18%		50.24%
Indexa		6.27%		8.91%		4.60%		6.27%		53.22%		56.77%
FTSE NAREIT Real Estate 50 Index		5.45%		8.74%		4.52%		5.45%		52.04%		55.56%
FTSE NAREIT Equity REITs Index		6.22%		9.39%		4.94%		6.22%		56.67%		62.00%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

^a  Index performance through November 2, 2016 reflects the performance of the FTSE NAREIT Real Estate 50 Index. Index performance beginning on November 3, 2016 reflects the performance of the FTSE NAREIT Equity REITs Index, which effective as of November 3, 2016, replaced the FTSE NAREIT Real Estate 50 Index as the underlying index of the Fund.

The inception date of the Fund was 5/1/07. The first day of secondary market trading was 5/4/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,043.40	$	0.41	$	1,000.00	$	1,024.40	$	0.40		0.08%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CORE U.S. REIT ETF

The iShares Core U.S. REIT ETF (the “Fund”) (formerly the iShares Real Estate 50 ETF) seeks to track the investment results of an index composed of U.S. real estate equities, as represented by the FTSE NAREIT Equity REITs Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 6.02%, net of fees, while the total return for the Index was 6.27%.

As represented by the Index, U.S. real estate investment trusts posted a positive return for the reporting period, but trailed the performance of the broader U.S. equity market. Publicly traded real estate stocks often fluctuate in response to changes in interest rates, which affect both their borrowing costs and the attractiveness of their dividend yields.

The Index rose sharply early in the reporting period as the Fed left short-term interest rates unchanged. However, the Index reversed course in the second half of 2016, declining amid investor concerns about rising interest rates. Most notably, the Fed raised its short-term interest rate target in December 2016, and the new administration was expected to implement pro-growth fiscal policies that could lead to higher interest rates.

The Index rebounded somewhat in early 2017 due to improved earnings for many REITs and rising optimism about the U.S. economy. However, another Fed interest rate increase in March 2017 tempered the Index’s overall advance.

Within the Index, specialized REITs — the largest sector weight in the Index on average — contributed the most to the Index’s performance for the reporting period. The most significant performance contributors among specialized REITs were data center and wireless tower REITs. Residential and industrial REITs were also leading contributors to the Index’s performance during the reporting period. The only industry in the Index to detract from performance for the reporting period was retail REITs, which faced a challenging market environment as increasing e-commerce sales led to store closures among a number of brick-and-mortar retailers.

ALLOCATION BY SECTOR As of 4/30/17

Sector	Percentage of Total Investments*
Retail REITs		20.00	%
Specialized REITs		18.46
Residential REITs		16.41
Office REITs		13.32
Health Care REITs		12.59
Diversified REITs		6.80
Industrial REITs		6.81
Hotel & Resort REITs		5.61
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 4/30/17

Security	Percentage of Total Investments*
Simon Property Group Inc.		6.40	%
Public Storage		3.74
Equinix Inc.		3.65
Prologis Inc.		3.51
AvalonBay Communities Inc.		3.20
Welltower Inc.		3.20
Equity Residential		2.87
Ventas Inc.		2.80
Boston Properties Inc.		2.39
Digital Realty Trust Inc.		2.25
TOTAL		34.01	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® EUROPE DEVELOPED REAL ESTATE ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(2.97)%		(2.82)%		(2.88)%		(2.97)%		(2.82)%		(2.88)%
5 Years		9.10%		8.91%		9.21%		54.56%		53.23%		55.36%
Since Inception		0.62%		0.61%		0.58%		6.02%		5.92%		5.67%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,084.30	$	2.48	$	1,000.00	$	1,022.40	$	2.41		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EUROPE DEVELOPED REAL ESTATE ETF

The iShares Europe Developed Real Estate ETF (the “Fund”) seeks to track the investment results of an index composed of real estate equities in developed European markets, as represented by the FTSE EPRA/NAREIT Developed Europe Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was -2.97%, net of fees, while the total return for the Index was -2.88%.

As represented by the Index, European real estate stocks declined for the reporting period. Publicly traded real estate stocks often fluctuate in response to changes in interest rates, which affect both their borrowing costs and the attractiveness of their dividend yields.

The Index’s decline occurred primarily during the first half of the reporting period as concerns about rising interest rates, both in the U.S. and Europe, weighed on real estate stocks. Volatility was also intensified by geopolitical concerns, including the United Kingdom’s affirmative referendum to leave the European Union and contentious elections across continental Europe.

The Index rebounded somewhat following the November 2016 U.S. presidential election as expectations of pro-business policies designed to stimulate U.S. economic growth led to increased optimism in the global economic environment.

A stronger U.S. dollar detracted from the Index’s performance during the reporting period. Among the currencies represented in the Index, the U.S. dollar advanced by 4% against the Swiss franc, 5% against the euro, 9% against the Swedish krona, and 11% against the British pound.

Within the Index, stocks of retail REITs detracted the most from the Index’s performance for the reporting period, as increasing e-commerce sales led to more competition. Other notable detractors were office REITs and diversified REITs. Real estate operating companies, the largest industry weight in the Index on average during the reporting period, and industrial REITs were the leading performance contributors within the Index.

From a country perspective, the U.K. was the leading detractor from the Index’s performance for the reporting period, while Germany contributed the most.

ALLOCATION BY SECTOR As of 4/30/17

Sector/Investment Type	Percentage of Total Investments*
Real Estate Operating Companies		36.61	%
Retail REITs		26.80
Diversified REITs		16.90
Office REITs		6.50
Industrial REITs		4.88
Diversified Real Estate Activities		2.19
Health Care REITs		1.67
Residential REITs		1.65
Real Estate Development		1.26
Specialized REITs		1.11
Hotels, Resorts & Cruise Lines		0.43
TOTAL		100.00	%

TEN LARGEST COUNTRIES As of 4/30/17

Country	Percentage of Total Investments*
United Kingdom		32.12	%
Germany		20.21
France		20.01
Sweden		7.64
Switzerland		5.54
Spain		3.85
Belgium		3.40
Netherlands		2.21
Austria		1.80
Finland		1.12
TOTAL		97.90	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® GLOBAL REIT ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		1.53%		1.76%		0.95%		1.53%		1.76%		0.95%
Since Inception		4.96%		4.99%		4.26%		14.59%		14.68%		12.44%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 7/8/14. The first day of secondary market trading was 7/10/14.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,031.00	$	0.71	$	1,000.00	$	1,024.10	$	0.70		0.14%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® GLOBAL REIT ETF

The iShares Global REIT ETF (the “Fund”) seeks to track the investment results of an index composed of global real estate equities in developed and emerging markets, as represented by the FTSE EPRA/NAREIT Global REIT Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 1.53%, net of fees, while the total return for the Index was 0.95%.

As represented by the Index, global REITs posted a modest return for the reporting period, trailing the strong gains of the broader global equity market. Publicly traded real estate stocks often fluctuate in response to changes in interest rates, which affect both their borrowing costs and the attractiveness of their dividend yields.

The Index rose sharply early in the reporting period as global interest rates declined and many of the world’s central banks maintained or increased their economic stimulus efforts. However, the Index declined over the remainder of the reporting period amid investor concerns about rising U.S. interest rates, which tend to influence interest rates in other countries given the interconnected nature of global financial markets.

A stronger U.S. dollar detracted from the Index’s performance during the reporting period. Among the currencies represented in the Index, the U.S. dollar advanced by 1% against the Australian dollar, 5% against the Japanese yen, 5% against the euro, and 11% against the British pound.

Within the Index, residential and industrial REITs were the leading contributors to the Index’s performance during the reporting period. Residential REITs benefited from strong employment growth, while increased demand for warehouse space helped industrial REITs. Retail REITs declined during the reporting period as increasing e-commerce sales led to store closures among a number of brick-and-mortar retailers.

From a country perspective, the U.S., representing approximately 65% of the Index on average, contributed the most to the Index’s performance for the reporting period, while Japan and the U.K. were the leading detractors.

ALLOCATION BY SECTOR As of 4/30/17

Sector	Percentage of Total Investments*
Retail REITs		27.44	%
Diversified REITs		15.07
Office REITs		14.58
Residential REITs		13.14
Health Care REITs		9.10
Industrial REITs		8.63
Specialized REITs		7.58
Hotel & Resort REITs		4.46
TOTAL		100.00	%

TEN LARGEST COUNTRIES As of 4/30/17

Country	Percentage of Total Investments*
United States		64.73	%
Australia		7.34
Japan		7.07
United Kingdom		5.18
France		3.97
Canada		3.13
Singapore		2.39
South Africa		1.55
Hong Kong		1.53
Spain		0.61
TOTAL		97.50	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

Performance as of April 30, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		0.63%		1.40%		0.75%		0.63%		1.40%		0.75%
5 Years		5.81%		5.79%		6.16%		32.62%		32.51%		34.84%
Since Inception		0.02%		0.01%		0.22%		0.21%		0.11%		2.14%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Beginning Account Value (11/1/16)		Ending Account Value (4/30/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,046.50	$	2.44	$	1,000.00	$	1,022.40	$	2.41		0.48%

^a  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (181 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

The iShares International Developed Real Estate ETF (the “Fund”) seeks to track the investment results of an index composed of real estate equities in developed non-U.S. markets, as represented by the FTSE EPRA/NAREIT Developed ex-U.S. Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended April 30, 2017, the total return for the Fund was 0.63%, net of fees, while the total return for the Index was 0.75%.

As represented by the Index, international real estate stocks posted a modest return for the reporting period, trailing the strong gains of the broader global equity market. Publicly traded real estate stocks often fluctuate in response to changes in interest rates, which affect both their borrowing costs and the attractiveness of their dividend yields.

The Index rose sharply early in the reporting period as global interest rates declined and many of the world’s central banks maintained or increased their economic stimulus efforts. However, the Index declined over the remainder of the reporting period amid investor concerns about rising U.S. interest rates, which tend to influence interest rates in other countries given the interconnected nature of global financial markets.

A stronger U.S. dollar affected the Index’s performance during the reporting period. Among the currencies represented in the Index, the U.S. dollar advanced by 1% against the Australian dollar, 5% against the Japanese yen, 5% against the euro, and 11% against the British pound.

Within the Index, two of the largest industries, diversified real estate activities and real estate operating companies, were the leading contributors to the Index’s performance for the reporting period. Industrial REITs also contributed. In contrast, retail REITs detracted the most from the Index’s performance for the reporting period as increasing e-commerce sales led to more competition.

From a country perspective, Hong Kong contributed the most to the Index’s performance for the reporting period, while Japan and the U.K. were the leading detractors.

ALLOCATION BY SECTOR As of 4/30/17

Sector/Investment Type	Percentage of Total Investments*
Retail REITs		22.45	%
Diversified Real Estate Activities		20.48
Real Estate Operating Companies		16.74
Diversified REITs		15.35
Office REITs		9.29
Industrial REITs		6.44
Real Estate Development		4.37
Residential REITs		2.73
Other**		2.15
TOTAL		100.00	%

TEN LARGEST COUNTRIES As of 4/30/17

Country	Percentage of Total Investments*
Japan		22.89	%
Hong Kong		17.19
Australia		12.91
United Kingdom		11.20
Germany		7.05
France		6.98
Canada		6.04
Singapore		5.49
Sweden		2.67
Switzerland		1.94
TOTAL		94.36	%

*   Excludes money market funds.

**   Other includes sector and/or investment types which individually represent less than 1% of total investments.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

About Fund Performance

Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.ishares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on November 1, 2016 and held through April 30, 2017, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® COHEN & STEERS REIT ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.87%
HEALTH CARE REITS — 13.84%
HCP Inc.a		3,316,741	$	103,979,830
Ventas Inc.a		2,511,836		160,782,622
Welltower Inc.a		2,571,576		183,713,390
				448,475,842
HOTEL & RESORT REITS — 2.91%
Host Hotels & Resorts Inc.a		5,248,140		94,204,113
				94,204,113
INDUSTRIAL REITS — 6.30%
Prologis Inc.		3,749,656		204,018,783
				204,018,783
OFFICE REITS — 16.21%
Alexandria Real Estate Equities Inc.a		630,431		70,929,792
Boston Properties Inc.		1,090,770		138,091,482
Douglas Emmett Inc.a		1,021,096		38,464,686
Highwoods Properties Inc.a		710,855		36,168,303
Kilroy Realty Corp.		692,646		48,852,322
SL Green Realty Corp.a		718,714		75,414,660
Vornado Realty Trust		1,219,925		117,405,582
				525,326,827
RESIDENTIAL REITS — 19.36%
American Campus Communities Inc.a		937,034		44,406,041
AvalonBay Communities Inc.a		974,104		184,923,903
Equity Lifestyle Properties Inc.a		568,794		46,021,123
Equity Residential		2,593,785		167,506,635
Essex Property Trust Inc.		464,737		113,614,255
UDR Inc.		1,895,691		70,785,102
				627,257,059
RETAIL REITS — 21.25%
Federal Realty Investment Trust		509,213		66,650,890
GGP Inc.		4,142,014		89,508,922
Kimco Realty Corp.		3,014,869		61,171,692
National Retail Properties Inc.a		1,043,605		44,061,003
Realty Income Corp.a		1,834,340		107,033,739
Regency Centers Corp.		1,035,867		65,446,077
Simon Property Group Inc.a		1,375,022		227,236,136
Weingarten Realty Investorsa		835,724		27,386,675
				688,495,134

Security	Shares		Value
SPECIALIZED REITS — 20.00%
Digital Realty Trust Inc.a		1,127,422	$	129,473,143
Equinix Inc.a		549,212		229,405,852
Extra Space Storage Inc.a		892,417		67,404,256
Public Storagea		1,058,036		221,531,578
				647,814,829
TOTAL COMMON STOCKS
(Cost: $2,999,266,620)				3,235,592,587
SHORT-TERM INVESTMENTS — 9.17%
MONEY MARKET FUNDS — 9.17%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%b,c,d		293,336,971		293,454,306
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%b,c		3,451,206		3,451,206
				296,905,512
TOTAL SHORT-TERM INVESTMENTS
(Cost: $296,835,715)				296,905,512
TOTAL INVESTMENTS IN SECURITIES — 109.04%
(Cost: $3,296,102,335)e				3,532,498,099
Other Assets, Less Liabilities — (9.04)%				(292,750,094	)
NET ASSETS — 100.00%			$	3,239,748,005

^a  All or a portion of this security represents a security on loan. See Note 1.

^b  Affiliated money market fund.

^c  The rate quoted is the annualized seven-day yield of the fund at period end.

^d  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^e  The cost of investments for federal income tax purposes was $3,389,385,354. Net unrealized appreciation was $143,112,745, of which $330,541,071 represented gross unrealized appreciation on securities and $187,428,326 represented gross unrealized depreciation on securities.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Continued)

iSHARES^® COHEN & STEERS REIT ETF

April 30, 2017

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,235,592,587	$	—	$	—	$	3,235,592,587
Money market funds		296,905,512		—		—		296,905,512
Total	$	3,532,498,099	$	—	$	—	$	3,532,498,099

See notes to financial statements.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CORE U.S. REIT ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.91%
DIVERSIFIED REITS — 6.80%
American Assets Trust Inc.		6,150	$	263,405
Armada Hoffler Properties Inc.		5,928		84,533
Empire State Realty Trust Inc. Class Aa		19,014		395,491
First Potomac Realty Trust		9,532		104,852
Forest City Realty Trust Inc. Class A		36,302		820,425
Gladstone Commercial Corp.a		3,991		88,999
Global Net Lease Inc.		9,139		215,955
Gramercy Property Trusta		21,877		607,962
Investors Real Estate Trust		19,642		116,084
Lexington Realty Trust		37,342		379,768
Liberty Property Trust		22,970		931,893
One Liberty Properties Inc.		2,471		59,996
PS Business Parks Inc.		3,155		383,459
Select Income REIT		10,865		272,277
Spirit Realty Capital Inc.		71,796		676,318
STORE Capital Corp.		23,907		573,529
VEREIT Inc.		149,485		1,251,190
Washington REIT		11,808		373,959
WP Carey Inc.		14,052		879,655
				8,479,750
HEALTH CARE REITS — 12.57%
Care Capital Properties Inc.a		12,910		346,892
CareTrust REIT Inc.		10,131		172,430
Community Healthcare Trust Inc.		2,183		53,964
Global Medical REIT Inc.		2,833		26,262
HCP Inc.		71,692		2,247,544
Healthcare Realty Trust Inc.a		17,989		590,039
Healthcare Trust of America Inc. Class A		21,914		698,837
LTC Properties Inc.		6,258		299,383
MedEquities Realty Trust Inc.		3,808		45,010
Medical Properties Trust Inc.		50,001		653,513
National Health Investors Inc.		5,783		423,142
New Senior Investment Group Inc.		12,734		132,688
Omega Healthcare Investors Inc.a		26,770		883,410
Physicians Realty Trust		23,533		462,188
Quality Care Properties Inc.b		14,648		254,143
Sabra Health Care REIT Inc.		10,415		283,184
Senior Housing Properties Trust		25,827		555,797
Universal Health Realty Income Trust		1,245		86,839

Security	Shares		Value
Ventas Inc.		54,494	$	3,488,161
Welltower Inc.		55,796		3,986,066
				15,689,492
HOTEL & RESORT REITS — 5.60%
Apple Hospitality REIT Inc.		33,183		621,518
Ashford Hospitality Prime Inc.		3,550		37,595
Ashford Hospitality Trust Inc.		15,130		94,562
Chatham Lodging Trusta		5,592		108,261
Chesapeake Lodging Trust		9,182		214,032
DiamondRock Hospitality Co.		31,493		346,738
FelCor Lodging Trust Inc.		22,220		172,205
Hersha Hospitality Trust		5,815		107,229
Hospitality Properties Trust		15,909		506,383
Host Hotels & Resorts Inc.a		115,013		2,064,483
LaSalle Hotel Propertiesa		17,701		505,541
Pebblebrook Hotel Trusta		11,270		335,395
RLJ Lodging Trust		19,577		420,710
Ryman Hospitality Properties Inc.		7,609		485,302
Summit Hotel Properties Inc.		10,281		169,945
Sunstone Hotel Investors Inc.		34,004		506,320
Xenia Hotels & Resorts Inc.		16,638		290,499
				6,986,718
INDUSTRIAL REITS — 6.80%
DCT Industrial Trust Inc.		14,078		711,784
Duke Realty Corp.		54,561		1,512,976
EastGroup Properties Inc.		5,129		401,344
First Industrial Realty Trust Inc.		18,158		510,966
Monmouth Real Estate Investment Corp.a		10,907		163,605
Prologis Inc.		80,563		4,383,433
Rexford Industrial Realty Inc.		10,206		254,538
STAG Industrial Inc.		11,898		313,631
Terreno Realty Corp.		7,452		230,118
				8,482,395
OFFICE REITS — 13.31%
Alexandria Real Estate Equities Inc.		13,671		1,538,124
Boston Properties Inc.		23,540		2,980,164
Brandywine Realty Trust		27,491		466,522
Columbia Property Trust Inc.		19,462		437,895
Corporate Office Properties Trust		14,682		480,689
Cousins Properties Inc.		53,150		451,243
Douglas Emmett Inc.		21,685		816,874
Easterly Government Properties Inc.a		5,721		115,106
Equity Commonwealthb		19,568		625,980

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Continued)

iSHARES^® CORE U.S. REIT ETF

April 30, 2017

Security	Shares		Value
Franklin Street Properties Corp.		15,701	$	190,453
Government Properties Income Trust		2,283		48,674
Highwoods Properties Inc.		15,702		798,918
Hudson Pacific Properties Inc.		23,656		812,820
Kilroy Realty Corp.		15,045		1,061,124
Mack-Cali Realty Corp.		14,078		380,810
NorthStar Realty Europe Corp.		9,185		106,822
Paramount Group Inc.a		23,265		381,546
Parkway Inc.		6,897		138,974
Piedmont Office Realty Trust Inc. Class A		22,854		499,360
SL Green Realty Corp.a		15,589		1,635,754
Tier REIT Inc.		7,649		132,404
Vornado Realty Trust		26,012		2,503,395
				16,603,651
RESIDENTIAL REITS — 16.40%
American Campus Communities Inc.		20,368		965,240
American Homes 4 Rent Class A		34,504		795,317
Apartment Investment & Management Co. Class A		24,079		1,053,215
AvalonBay Communities Inc.		20,997		3,986,071
Bluerock Residential Growth REIT Inc.		4,174		52,008
Camden Property Trust		13,490		1,110,632
Colony Starwood Homesa		7,664		264,944
Education Realty Trust Inc.		11,366		440,660
Equity Lifestyle Properties Inc.		11,975		968,897
Equity Residential		55,380		3,576,440
Essex Property Trust Inc.		10,075		2,463,035
Independence Realty Trust Inc.a		10,239		94,199
Mid-America Apartment Communities Inc.		17,404		1,726,651
Monogram Residential Trust Inc.		26,303		267,765
NexPoint Residential Trust Inc.		2,793		67,060
Preferred Apartment Communities Inc. Class Aa		4,202		59,458
Silver Bay Realty Trust Corp.		5,487		117,586
Sun Communities Inc.		10,039		839,361
UDR Inc.		41,208		1,538,707
UMH Properties Inc.a		4,492		71,962
				20,459,208
RETAIL REITS — 19.98%
Acadia Realty Trust		12,304		357,800
Agree Realty Corp.		3,941		191,060

Security	Shares		Value
Alexander’s Inc.		339	$	147,401
Brixmor Property Group Inc.		47,256		933,306
CBL & Associates Properties Inc.a		27,334		252,840
Cedar Realty Trust Inc.a		14,438		77,676
DDR Corp.		48,534		524,653
Federal Realty Investment Trust		11,043		1,445,418
Getty Realty Corp.		4,138		105,933
GGP Inc.		77,817		1,681,625
Kimco Realty Corp.		65,701		1,333,073
Kite Realty Group Trust		12,600		256,536
Macerich Co. (The)		22,191		1,385,384
National Retail Properties Inc.		22,703		958,521
Pennsylvania REIT		6,738		93,321
Ramco-Gershenson Properties Trust		12,766		170,171
Realty Income Corp.		39,565		2,308,618
Regency Centers Corp.		22,644		1,430,648
Retail Opportunity Investments Corp.		17,033		350,880
Retail Properties of America Inc. Class A		37,125		495,247
Saul Centers Inc.		2,262		135,833
Simon Property Group Inc.		48,253		7,974,291
Tanger Factory Outlet Centers Inc.		14,969		466,883
Taubman Centers Inc.		9,354		585,093
Urban Edge Properties		13,931		355,240
Urstadt Biddle Properties Inc. Class A		240		4,718
Washington Prime Group Inc.a		29,558		260,110
Weingarten Realty Investors		18,002		589,926
Whitestone REIT		4,975		62,387
				24,934,592
SPECIALIZED REITS — 18.45%
CoreCivic Inc.		17,305		596,157
CoreSite Realty Corp.		5,269		515,572
CubeSmart		27,831		705,238
CyrusOne Inc.		11,897		650,052
Digital Realty Trust Inc.a		24,463		2,809,331
DuPont Fabros Technology Inc.a		11,702		603,238
EPR Properties		9,836		715,176
Equinix Inc.		10,901		4,553,348
Extra Space Storage Inc.		18,110		1,367,848
Farmland Partners Inc.		5,147		56,102
Four Corners Property Trust Inc.		9,397		219,232
Gaming and Leisure Properties Inc.		31,825		1,107,510
GEO Group Inc. (The)		16,773		558,876

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CORE U.S. REIT ETF

April 30, 2017

Security	Shares		Value
Gladstone Land Corp.		1,667	$	18,554
Iron Mountain Inc.		37,141		1,291,021
Lamar Advertising Co. Class A		12,876		927,973
Life Storage Inc.		7,205		564,800
National Storage Affiliates Trust		6,445		157,903
Outfront Media Inc.		21,427		560,530
Public Storage		22,248		4,658,286
QTS Realty Trust Inc. Class A		7,062		377,393
				23,014,140
TOTAL COMMON STOCKS
(Cost: $114,009,706)				124,649,946
SHORT-TERM INVESTMENTS — 7.39%
MONEY MARKET FUNDS — 7.39%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%c,d,e		9,053,353		9,056,975
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%c,d		158,729		158,729
				9,215,704
TOTAL SHORT-TERM INVESTMENTS
(Cost: $9,215,016)				9,215,704

	Value
TOTAL INVESTMENTS IN SECURITIES — 107.30%
(Cost: $123,224,722)f	$	133,865,650
Other Assets, Less Liabilities — (7.30)%		(9,100,351	)
NET ASSETS — 100.00%	$	124,765,299

^a  All or a portion of this security represents a security on loan. See Note 1.

^b  Non-income earning security.

^c  Affiliated money market fund.

^d  The rate quoted is the annualized seven-day yield of the fund at period end.

^e  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^f  The cost of investments for federal income tax purposes was $124,222,899. Net unrealized appreciation was $9,642,751, of which $12,461,232 represented gross unrealized appreciation on securities and $2,818,481 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	124,649,946	$	—	$	—	$	124,649,946
Money market funds		9,215,704		—		—		9,215,704
Total	$	133,865,650	$	—	$	—	$	133,865,650

See notes to financial statements.

SCHEDULES OF INVESTMENTS 21

Schedule of Investments

iSHARES^® EUROPE DEVELOPED REAL ESTATE ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.27%
AUSTRIA — 1.79%
BUWOG AG		17,268	$	466,150
CA Immobilien Anlagen AG		12,685		277,855
				744,005
BELGIUM — 3.38%
Aedifica SA		2,929		230,156
Befimmo SA		3,562		207,712
Cofinimmo SA		3,683		445,578
Intervest Offices & Warehouses NV		2,747		71,194
Leasinvest Real Estate SCA		360		40,888
Retail Estates NV		945		77,179
Warehouses De Pauw CVA		3,003		287,247
Wereldhave Belgium NV		390		42,465
				1,402,419
FINLAND — 1.11%
Citycon OYJ		71,704		176,309
Sponda OYJ		44,782		197,597
Technopolis OYJ		25,768		86,425
				460,331
FRANCE — 19.86%
Affine SA		1,263		22,006
ANF Immobilier		1,334		28,966
Fonciere des Regions		7,267		648,424
Gecina SA		7,296		1,037,614
ICADE		6,436		477,768
Klepierre		37,453		1,469,871
Mercialys SA		7,524		146,536
Unibail-Rodamco SE		17,975		4,412,930
				8,244,115
GERMANY — 20.06%
ADLER Real Estate AGa,b		4,614		72,377
ADO Properties SAc		5,302		193,993
Alstria office REIT AG		24,197		319,881
Deutsche Euroshop AG		8,383		340,180
Deutsche Wohnen AG Bearer		61,498		2,102,133
DIC Asset AG		7,907		81,109
Grand City Properties SA		18,540		351,998
Hamborner REIT AG		13,985		146,746
LEG Immobilien AG		11,463		984,380
TAG Immobilien AG		25,923		368,951
TLG Immobilien AG		11,135		225,230
Vonovia SE		82,443		2,983,715
Vonovia SE Newb		2,752		99,598

Security	Shares		Value
WCM Beteiligungs & Grundbesitz-AGa		15,847	$	55,290
				8,325,581
IRELAND — 1.08%
Green REIT PLC		124,431		184,956
Hibernia REIT PLC		124,259		172,523
Irish Residential Properties REIT PLC		63,905		91,162
				448,641
ITALY — 0.44%
Beni Stabili SpA SIIQ		194,392		123,411
Immobiliare Grande Distribuzione SIIQ SpA		66,622		59,635
				183,046
NETHERLANDS — 2.19%
Eurocommercial Properties NV		8,625		335,067
NSI NV		25,036		105,671
VastNed Retail NV		3,463		129,328
Wereldhave NV		7,364		339,044
				909,110
NORWAY — 0.56%
Entra ASAc		17,097		196,586
Norwegian Property ASA		31,347		36,959
				233,545
SPAIN — 3.83%
Axiare Patrimonio SOCIMI SA		10,692		177,440
Hispania Activos Inmobiliarios SOCIMI SA		16,192		244,383
Inmobiliaria Colonial SA		43,027		333,555
Lar Espana Real Estate SOCIMI SA		15,882		131,440
Merlin Properties SOCIMI SA		59,204		700,469
				1,587,287
SWEDEN — 7.58%
Castellum AB		49,892		683,460
D. Carnegie & Co. ABa		6,434		78,111
Dios Fastigheter AB		15,344		78,671
Fabege AB		24,156		416,295
Fastighets AB Balder Class Ba		17,571		392,504
Hemfosa Fastigheter AB		17,363		160,986
Hufvudstaden AB Class A		20,261		317,593
Klovern AB Class B		102,933		108,457
Kungsleden AB		34,638		194,024
Pandox AB		10,528		176,798
Wallenstam AB Class B		35,760		304,906
Wihlborgs Fastigheter AB		12,091		235,681
				3,147,486

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EUROPE DEVELOPED REAL ESTATE ETF

April 30, 2017

Security	Shares		Value
SWITZERLAND — 5.50%
Allreal Holding AG Registered		1,748	$	300,626
Mobimo Holding AG Registered		1,126		302,582
PSP Swiss Property AG Registered		7,270		651,448
Swiss Prime Site AG Registered		11,875		1,028,900
				2,283,556
UNITED KINGDOM — 31.89%
Assura PLC		301,771		239,130
Big Yellow Group PLC		26,010		260,454
British Land Co. PLC (The)		186,963		1,587,964
Capital & Counties Properties PLC		134,150		548,092
Capital & Regional PLC		96,904		75,535
Custodian Reit PLC		56,063		80,510
Daejan Holdings PLC		886		77,831
Derwent London PLC		18,181		692,478
Empiric Student Property PLC		91,419		129,509
F&C Commercial Property Trust Ltd.		96,223		188,849
F&C UK REIT		43,404		58,119
GCP Student Living PLC		61,242		120,234
Grainger PLC		75,022		242,552
Great Portland Estates PLC		62,719		561,508
Hammerson PLC		144,771		1,100,373
Hansteen Holdings PLC		136,049		217,905
Helical PLC		18,009		77,120
Intu Properties PLC		160,876		573,824
Kennedy Wilson Europe Real Estate PLC		17,761		238,744
Land Securities Group PLC		143,608		2,054,869
LondonMetric Property PLC		117,608		256,230
Medicx Fund Ltd.		73,648		85,039
NewRiver REIT PLC		42,697		192,177
Picton Property Income Ltd. (The)		98,520		107,385
Primary Health Properties PLC		104,487		153,091
Redefine International PLC/Isle of Man		217,958		107,859
Regional REIT Ltd.c		41,009		56,769
Safestore Holdings PLC		37,780		197,955
Schroder REIT Ltd.		94,576		80,144
Segro PLC		181,406		1,139,909
Shaftesbury PLC		41,612		501,747
Standard Life Investment Property Income Trust Ltd.		69,170		80,764
Target Healthcare REIT Ltd.		43,409		66,269
Tritax Big Box REIT PLC		201,525		365,012
UK Commercial Property Trust Ltd.b		120,876		138,712
UNITE Group PLC (The)		40,487		338,899

Security	Shares		Value
Workspace Group PLC		21,473	$	240,164
				13,233,725
TOTAL COMMON STOCKS
(Cost: $45,164,490)				41,202,847
RIGHTS — 0.00%
UNITED KINGDOM — 0.00%
Tritax Big Box REIT PLC (Expires 05/10/17)a		19,116		989
				989
TOTAL RIGHTS
(Cost: $0)				989
SHORT-TERM INVESTMENTS — 0.84%
MONEY MARKET FUNDS — 0.84%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		318,995		319,123
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		27,687		27,687
				346,810
TOTAL SHORT-TERM INVESTMENTS
(Cost: $346,730)				346,810
TOTAL INVESTMENTS IN SECURITIES — 100.11% (Cost: $45,511,220)g				41,550,646
Other Assets, Less Liabilities — (0.11)%				(47,011	)
NET ASSETS — 100.00%			$	41,503,635

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $46,100,976. Net unrealized depreciation was $4,550,330, of which $1,466,719 represented gross unrealized appreciation on securities and $6,017,049 represented gross unrealized depreciation on securities.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® EUROPE DEVELOPED REAL ESTATE ETF

April 30, 2017

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	41,103,249	$	99,598	$	—	$	41,202,847
Rights		—		989		—		989
Money market funds		346,810		—		—		346,810
Total	$	41,450,059	$	100,587	$	—	$	41,550,646

See notes to financial statements.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® GLOBAL REIT ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.57%
AUSTRALIA — 7.31%
BWP Trust		153,250	$	334,655
Charter Hall Retail REIT		111,373		372,308
Cromwell Property Group		452,118		327,973
Dexus Property Group		298,165		2,274,423
Goodman Group		541,753		3,285,765
GPT Group (The)		554,639		2,177,630
Investa Office Fund		177,035		628,879
Mirvac Group		1,143,635		1,941,456
Scentre Group		1,557,974		5,021,712
Shopping Centres Australasia Property Group		232,489		401,632
Stockland		735,268		2,666,870
Vicinity Centres		1,017,091		2,190,618
Westfield Corp.		589,364		4,002,062
				25,625,983
BELGIUM — 0.58%
Aedifica SA		5,221		410,259
Cofinimmo SA		6,677		807,799
Intervest Offices & Warehouses NV		5,835		151,226
Leasinvest Real Estate SCA		689		78,255
Warehouses De Pauw CVA		5,332		510,023
Wereldhave Belgium NV		689		75,021
				2,032,583
CANADA — 3.11%
Allied Properties REIT		25,554		684,592
Artis REIT		44,606		443,026
Boardwalk REITa		12,568		423,284
Canadian Apartment Properties REIT		42,245		1,046,470
Canadian REIT		23,088		833,822
Cominar REIT		55,836		577,839
Crombie REIT		26,105		276,839
Dream Global REIT		35,107		254,194
Dream Office REIT		35,171		499,797
Granite REIT		15,214		544,780
H&R REIT		86,753		1,469,465
Killam Apartment REIT		19,089		179,400
Milestone Apartments REIT		24,187		391,825
Northview Apartment Real Estate Investment Trust		15,501		257,915
Pure Industrial Real Estate Trust		68,242		325,913
RioCan REIT		99,190		1,881,077

Security	Shares		Value
Smart REIT		34,908	$	826,171
				10,916,409
CHINA — 0.12%
Spring REITa		417,000		174,251
Yuexiu REITa		417,000		245,561
				419,812
FRANCE — 3.95%
Affine SA		3,120		54,360
ANF Immobilier		2,834		61,537
Fonciere des Regions		11,416		1,018,633
Gecina SA		12,295		1,748,556
ICADE		10,935		811,746
Klepierre		63,861		2,506,273
Mercialys SA		13,042		254,004
Unibail-Rodamco SE		30,157		7,403,656
				13,858,765
GERMANY — 0.23%
Alstria office REIT AGa		41,518		548,862
Hamborner REIT AG		24,993		262,254
				811,116
GREECE — 0.00%
Grivalia Properties REIC AE		1,008		9,374
				9,374
HONG KONG — 1.53%
Champion REIT		689,000		448,257
Link REIT		682,000		4,906,159
				5,354,416
IRELAND — 0.23%
Green REIT PLC		218,446		324,702
Hibernia REIT PLC		220,072		305,550
Irish Residential Properties REIT PLC		117,099		167,045
				797,297
ITALY — 0.11%
Beni Stabili SpA SIIQ		386,980		245,677
Immobiliare Grande Distribuzione SIIQ SpA		143,930		128,834
				374,511
JAPAN — 7.04%
Activia Properties Inc.		186		886,032
Advance Residence Investment Corp.		390		1,027,218
AEON REIT Investment Corp.		425		464,766

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® GLOBAL REIT ETF

April 30, 2017

Security	Shares		Value
Daiwa House REIT Investment Corp.		450	$	1,137,616
Frontier Real Estate Investment Corp.		142		619,745
Fukuoka REIT Corp.		210		331,569
GLP J-REIT		828		933,701
Hulic Reit Inc.		276		443,205
Industrial & Infrastructure Fund Investment Corp.		116		511,994
Invincible Investment Corp.		962		368,506
Japan Excellent Inc.		369		431,995
Japan Hotel REIT Investment Corp.		1,234		840,232
Japan Logistics Fund Inc.		268		571,967
Japan Prime Realty Investment Corp.		265		994,909
Japan Real Estate Investment Corp.		377		1,985,279
Japan Rental Housing Investments Inc.		479		344,199
Japan Retail Fund Investment Corp.		810		1,582,650
Kenedix Office Investment Corp.		114		646,344
Mori Hills REIT Investment Corp.		454		589,748
MORI TRUST Sogo REIT Inc.		276		431,072
Nippon Accommodations Fund Inc.		142		610,191
Nippon Building Fund Inc.		389		2,069,409
Nippon Prologis REIT Inc.		509		1,076,265
Nomura Real Estate Master Fund Inc.		1,205		1,737,181
Orix JREIT Inc.		795		1,260,931
Premier Investment Corp.		417		448,536
Sekisui House Reit Inc.		276		352,335
Sekisui House SI Residential Investment Corp.		335		353,423
TOKYU REIT Inc.		276		342,431
United Urban Investment Corp.		867		1,310,572
				24,704,021
MEXICO — 0.52%
Fibra Uno Administracion SA de CV		783,582		1,357,599
Macquarie Mexico Real Estate Management SA de CV		286,600		311,552
Prologis Property Mexico SA de CV		96,200		162,059
				1,831,210

Security	Shares		Value
NETHERLANDS — 0.40%
Eurocommercial Properties NV		13,656	$	530,512
NSI NV		43,211		182,384
VastNed Retail NV		5,857		218,733
Wereldhave NV		10,221		470,583
				1,402,212
NEW ZEALAND — 0.11%
Kiwi Property Group Ltd.		406,587		397,778
				397,778
SINGAPORE — 2.37%
Ascendas REIT		744,150		1,362,971
Ascott Residence Trusta		394,632		309,167
CapitaLand Commercial Trust		613,200		712,921
CapitaLand Mall Trust		704,600		993,104
CapitaLand Retail China Trust		200,000		227,517
CDL Hospitality Trustsa		243,100		269,589
First REIT		232,900		224,952
Fortune REIT		417,000		484,687
Keppel REITa		657,300		498,489
Lippo Malls Indonesia Retail Trust		756,900		230,151
Mapletree Commercial Trust		597,892		682,291
Mapletree Greater China Commercial Trusta		581,400		445,087
Mapletree Industrial Trust		388,300		497,286
Mapletree Logistics Trust		513,800		415,393
Suntec REITa		771,300		976,748
				8,330,353
SOUTH AFRICA — 1.55%
Arrowhead Properties Ltd. Class A		300,103		197,994
Delta Property Fund Ltd.		178,648		117,063
Emira Property Fund Ltd.		144,919		151,592
Growthpoint Properties Ltd.		833,286		1,595,127
Hyprop Investments Ltd.		77,987		719,284
Rebosis Property Fund Ltd.		144,654		131,860
Redefine Properties Ltd.		1,482,180		1,218,192
Resilient REIT Ltd.		83,136		723,789
SA Corporate Real Estate Ltd.		724,080		297,558
Vukile Property Fund Ltd.		195,504		277,544
				5,430,003
SPAIN — 0.61%
Axiare Patrimonio SOCIMI SA		22,359		371,061
Hispania Activos Inmobiliarios SOCIMI SA		29,640		447,352

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® GLOBAL REIT ETF

April 30, 2017

Security	Shares		Value
Lar Espana Real Estate SOCIMI SA		24,338	$	201,422
Merlin Properties SOCIMI SA		94,944		1,123,324
				2,143,159
TURKEY — 0.19%
Dogus Gayrimenkul Yatirim Ortakligi ASa,b		24,026		28,666
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		625,776		519,462
Is Gayrimenkul Yatirim Ortakligi ASa		134,599		52,646
Torunlar Gayrimenkul Yatirim Ortakligi AS		38,368		56,034
				656,808
UNITED KINGDOM — 5.16%
Big Yellow Group PLC		45,108		451,695
British Land Co. PLC (The)		319,467		2,713,383
Capital & Regional PLC		180,137		140,414
Derwent London PLC		31,524		1,200,686
F&C UK REIT		76,832		102,880
Great Portland Estates PLC		108,075		967,568
Hammerson PLC		245,371		1,865,011
Hansteen Holdings PLC		234,691		375,896
Intu Properties PLC		294,116		1,049,073
Land Securities Group PLC		245,099		3,507,090
LondonMetric Property PLC		183,128		398,976
NewRiver REIT PLC		73,306		329,947
Primary Health Properties PLC		180,504		264,469
Redefine International PLC/Isle of Man		401,998		198,933
Regional REIT Ltd.c		75,684		104,770
Safestore Holdings PLC		61,712		323,352
Schroder REIT Ltd.		179,431		152,051
Segro PLC		286,661		1,801,304
Shaftesbury PLC		69,739		840,895
Standard Life Investment Property Income Trust Ltd.		115,513		134,874
Target Healthcare REIT Ltd.		87,621		133,764
Tritax Big Box REIT PLC		339,378		614,698
Workspace Group PLC		37,614		420,693
				18,092,422
UNITED STATES — 64.45%
Acadia Realty Trust		22,833		663,984
Agree Realty Corp.a		8,307		402,723
Alexander’s Inc.a		828		360,023

Security	Shares		Value
Alexandria Real Estate Equities Inc.		27,324	$	3,074,223
American Assets Trust Inc.		11,989		513,489
American Campus Communities Inc.		40,592		1,923,655
American Homes 4 Rent Class A		69,022		1,590,957
Apartment Investment & Management Co. Class A		47,974		2,098,383
Apple Hospitality REIT Inc.		65,216		1,221,496
Ashford Hospitality Trust Inc.		32,765		204,781
AvalonBay Communities Inc.a		41,943		7,962,459
Boston Properties Inc.		47,020		5,952,732
Brandywine Realty Trust		55,279		938,085
Brixmor Property Group Inc.		94,128		1,859,028
Camden Property Trust		26,891		2,213,936
Care Capital Properties Inc.a		25,993		698,432
CareTrust REIT Inc.		19,490		331,720
CBL & Associates Properties Inc.a		51,888		479,964
Cedar Realty Trust Inc.		18,980		102,112
Chatham Lodging Trusta		9,111		176,389
Chesapeake Lodging Trust		19,368		451,468
Colony Starwood Homes		15,483		535,247
Columbia Property Trust Inc.		39,236		882,810
Corporate Office Properties Trusta		29,627		969,988
Cousins Properties Inc.		107,268		910,705
CubeSmart		55,780		1,413,465
DCT Industrial Trust Inc.		28,001		1,415,731
DDR Corp.		97,271		1,051,500
DiamondRock Hospitality Co.a		65,857		725,086
Digital Realty Trust Inc.a		48,558		5,576,401
Douglas Emmett Inc.		43,759		1,648,402
Duke Realty Corp.		108,256		3,001,939
DuPont Fabros Technology Inc.		23,740		1,223,797
EastGroup Properties Inc.a		9,953		778,822
Education Realty Trust Inc.a		22,816		884,576
Empire State Realty Trust Inc. Class A		37,148		772,678
EPR Properties		19,963		1,451,510
Equity Commonwealthb		38,696		1,237,885
Equity Lifestyle Properties Inc.		23,915		1,934,963
Equity Residential		110,140		7,112,841
Essex Property Trust Inc.		19,908		4,866,909
Extra Space Storage Inc.		35,995		2,718,702
Federal Realty Investment Trust		22,088		2,891,098
FelCor Lodging Trust Inc.		48,190		373,472

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® GLOBAL REIT ETF

April 30, 2017

Security	Shares		Value
First Industrial Realty Trust Inc.		36,504	$	1,027,223
First Potomac Realty Trust		19,961		219,571
Forest City Realty Trust Inc. Class A		72,679		1,642,545
Franklin Street Properties Corp.		31,009		376,139
Gaming and Leisure Properties Inc.		63,583		2,212,688
Getty Realty Corp.a		10,372		265,523
GGP Inc.		154,598		3,340,863
Government Properties Income Trust		1,741		37,118
Gramercy Property Trusta		43,509		1,209,115
HCP Inc.		142,298		4,461,042
Healthcare Realty Trust Inc.a		36,328		1,191,558
Healthcare Trust of America Inc. Class A		43,770		1,395,825
Hersha Hospitality Trust		11,984		220,985
Highwoods Properties Inc.		30,713		1,562,677
Hospitality Properties Trust		32,018		1,019,133
Host Hotels & Resorts Inc.		229,488		4,119,310
Hudson Pacific Properties Inc.a		44,331		1,523,213
Investors Real Estate Trust		40,322		238,303
Invitation Homes Inc.b		22,908		493,667
Kilroy Realty Corp.		28,525		2,011,868
Kimco Realty Corp.		130,152		2,640,784
Kite Realty Group Trusta		24,153		491,755
LaSalle Hotel Propertiesa		36,326		1,037,471
Lexington Realty Trust		75,367		766,482
Liberty Property Trust		46,192		1,874,009
Life Storage Inc.		14,395		1,128,424
LTC Properties Inc.		12,506		598,287
Macerich Co. (The)		44,174		2,757,783
Mack-Cali Realty Corp.		28,001		757,427
Medical Properties Trust Inc.		98,096		1,282,115
Mid-America Apartment Communities Inc.		34,667		3,439,313
Monmouth Real Estate Investment Corp.		21,890		328,350
Monogram Residential Trust Inc.		52,877		538,288
National Health Investors Inc.a		11,418		835,455
National Retail Properties Inc.		45,719		1,930,256
New Senior Investment Group Inc.		26,646		277,651
Omega Healthcare Investors Inc.		53,428		1,763,124
Paramount Group Inc.a		45,650		748,660
Parkway Inc.		13,337		268,741
Pebblebrook Hotel Trusta		22,088		657,339

Security	Shares		Value
Pennsylvania REITa		20,417	$	282,775
Physicians Realty Trust		42,007		825,017
Piedmont Office Realty Trust Inc. Class A		45,108		985,610
Prologis Inc.		160,111		8,711,639
PS Business Parks Inc.		6,674		811,158
Public Storage		44,061		9,225,492
QTS Realty Trust Inc. Class A		13,693		731,754
Quality Care Properties Inc.b		28,558		495,481
Ramco-Gershenson Properties Trust		25,291		337,129
Realty Income Corp.a		78,909		4,604,340
Regency Centers Corp.		44,969		2,841,141
Retail Opportunity Investments Corp.		25,859		532,695
Retail Properties of America Inc. Class Aa		72,657		969,244
Rexford Industrial Realty Inc.		20,491		511,046
RLJ Lodging Trust		40,032		860,288
Ryman Hospitality Properties Inc.		15,287		975,005
Sabra Health Care REIT Inc.		21,045		572,214
Saul Centers Inc.a		4,462		267,943
Select Income REIT		21,862		547,862
Senior Housing Properties Trust		52,476		1,129,284
Seritage Growth Properties Class Aa		7,845		325,567
Silver Bay Realty Trust Corp.		11,958		256,260
Simon Property Group Inc.		95,556		15,791,585
SL Green Realty Corp.		30,975		3,250,207
Spirit Realty Capital Inc.		143,930		1,355,821
STAG Industrial Inc.a		23,470		618,669
STORE Capital Corp.a		47,903		1,149,193
Summit Hotel Properties Inc.		25,184		416,292
Sun Communities Inc.		20,475		1,711,915
Sunstone Hotel Investors Inc.		69,176		1,030,031
Tanger Factory Outlet Centers Inc.		29,898		932,519
Taubman Centers Inc.		18,275		1,143,101
Terreno Realty Corp.		14,682		453,380
Tier REIT Inc.		15,287		264,618
UDR Inc.		82,131		3,066,772
Universal Health Realty Income Trusta		1,124		78,399
Urban Edge Properties		26,802		683,451
Urstadt Biddle Properties Inc. Class A		1,154		22,688

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® GLOBAL REIT ETF

April 30, 2017

Security	Shares		Value
Ventas Inc.		107,954	$	6,910,136
VEREIT Inc.		297,660		2,491,414
Vornado Realty Trust		51,916		4,996,396
Washington Prime Group Inc.		58,963		518,874
Washington REIT		22,942		726,573
Weingarten Realty Investors		35,445		1,161,533
Welltower Inc.		110,694		7,907,979
WP Carey Inc.		27,730		1,735,898
Xenia Hotels & Resorts Inc.		35,060		612,148
				226,117,182
TOTAL COMMON STOCKS
(Cost: $350,695,092)				349,305,414
RIGHTS — 0.00%
UNITED KINGDOM — 0.00%
Tritax Big Box REIT PLC (Expires 05/10/17)b		30,852		1,596
				1,596
TOTAL RIGHTS
(Cost: $0)				1,596
SHORT-TERM INVESTMENTS — 4.68%
MONEY MARKET FUNDS — 4.68%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		16,058,407		16,064,830

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		367,526	$	367,526
				16,432,356
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,430,208)				16,432,356
TOTAL INVESTMENTS IN SECURITIES — 104.25% (Cost: $367,125,300)g				365,739,366
Other Assets, Less Liabilities — (4.25)%				(14,920,458	)
NET ASSETS — 100.00%			$	350,818,908

^a  All or a portion of this security represents a security on loan. See Note 1.

^b  Non-income earning security.

^c  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $371,497,611. Net unrealized depreciation was $5,758,245, of which $12,063,386 represented gross unrealized appreciation on securities and $17,821,631 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	348,913,589	$	391,825	$	—	$	349,305,414
Rights		—		1,596		—		1,596
Money market funds		16,432,356		—		—		16,432,356
Total	$	365,345,945	$	393,421	$	—	$	365,739,366

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

April 30, 2017

Security	Shares		Value
COMMON STOCKS — 99.45%
AUSTRALIA — 12.84%
BGP Holdings PLCa		6,603,392	$	72
BWP Trust		391,460		854,839
Charter Hall Retail REIT		274,170		916,520
Cromwell Property Group		1,189,920		863,185
Dexus Property Group		776,075		5,919,952
Goodman Group		1,422,835		8,629,582
GPT Group (The)		1,434,120		5,630,658
Investa Office Fund		454,915		1,615,988
Mirvac Group		2,954,265		5,015,216
Scentre Group		4,091,645		13,188,323
Shopping Centres Australasia Property Group		589,492		1,018,367
Stockland		1,915,860		6,948,961
Vicinity Centres		2,630,240		5,665,030
Westfield Corp.		1,547,155		10,505,918
				66,772,611
AUSTRIA — 0.63%
BUWOG AG		76,119		2,054,837
CA Immobilien Anlagen AG		54,945		1,203,528
				3,258,365
BELGIUM — 1.19%
Aedifica SA		12,950		1,017,593
Befimmo SA		15,726		917,034
Cofinimmo SA		16,095		1,947,210
Intervest Offices & Warehouses NV		12,580		326,036
Leasinvest Real Estate SCA		1,480		168,095
Retail Estates NV		4,070		332,402
Warehouses De Pauw CVA		13,248		1,267,216
Wereldhave Belgium NV		1,853		201,762
				6,177,348
CANADA — 6.01%
Allied Properties REIT		67,906		1,819,203
Artis REIT		118,955		1,181,459
Boardwalk REITb		30,340		1,021,836
Canadian Apartment Properties REIT		108,410		2,685,473
Canadian REIT		58,645		2,117,962
Chartwell Retirement Residences		152,848		1,737,188
Cominar REIT		145,225		1,502,914
Crombie REIT		69,930		741,597
Dream Global REIT		109,150		790,306
Dream Office REIT		84,545		1,201,426

Security	Shares		Value
First Capital Realty Inc.		77,531	$	1,125,002
Granite REIT		37,741		1,351,422
H&R REIT		226,810		3,841,819
Killam Apartment REIT		53,835		505,946
Milestone Apartments REIT		64,380		1,042,944
Northview Apartment Real Estate Investment Trust		40,344		671,269
Pure Industrial Real Estate Trust		192,224		918,030
RioCan REIT		258,260		4,897,741
Smart REIT		88,800		2,101,637
				31,255,174
FINLAND — 0.39%
Citycon OYJ		313,945		771,943
Sponda OYJ		196,112		865,330
Technopolis OYJ		113,220		379,736
				2,017,009
FRANCE — 6.94%
Affine SA		5,550		96,699
ANF Immobilier		6,475		140,596
Fonciere des Regions		31,635		2,822,745
Gecina SA		32,005		4,551,650
ICADE		28,305		2,101,185
Klepierre		163,355		6,410,989
Mercialys SA		33,300		648,546
Unibail-Rodamco SE		78,665		19,312,551
				36,084,961
GERMANY — 7.01%
ADLER Real Estate AGa,b		20,845		326,981
ADO Properties SAc		23,369		855,042
Alstria office REIT AG		106,190		1,403,816
Deutsche Euroshop AG		36,445		1,478,928
Deutsche Wohnen AG Bearer		268,990		9,194,652
DIC Asset AG		34,595		354,872
Grand City Properties SA		81,400		1,545,447
Hamborner REIT AG		61,421		644,498
LEG Immobilien AG		50,135		4,305,322
TAG Immobilien AG		113,798		1,619,638
TLG Immobilien AG		48,655		984,156
Vonovia SE		361,015		13,065,583
Vonovia SE Newb		11,993		434,042
WCM Beteiligungs & Grundbesitz-AGa,b		73,446		256,253
				36,469,230

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

April 30, 2017

Security	Shares		Value
HONG KONG — 17.09%
Champion REIT		1,480,000	$	962,874
Cheung Kong Property Holdings Ltd.		2,220,000		15,927,381
Hang Lung Properties Ltd.		1,665,000		4,367,185
Henderson Land Development Co. Ltd.		925,032		5,863,553
Hongkong Land Holdings Ltd.		925,000		7,131,750
Hysan Development Co. Ltd.		469,000		2,213,075
Kerry Properties Ltd.		462,500		1,730,461
Link REIT		1,781,500		12,815,723
New World Development Co. Ltd.		4,255,333		5,301,692
Sino Land Co. Ltd.		2,590,800		4,390,424
Sun Hung Kai Properties Ltd.		1,124,000		16,865,311
Swire Properties Ltd.b		925,000		3,104,127
Wharf Holdings Ltd. (The)		960,900		8,209,758
				88,883,314
IRELAND — 0.39%
Green REIT PLC		550,094		817,669
Hibernia REIT PLC		558,515		775,448
Irish Residential Properties REIT PLC		300,255		428,321
				2,021,438
ISRAEL — 0.36%
Azrieli Group Ltd.		35,057		1,864,348
				1,864,348
ITALY — 0.16%
Beni Stabili SpA SIIQ		851,740		540,734
Immobiliare Grande Distribuzione SIIQ SpA		293,780		262,967
				803,701
JAPAN — 22.76%
Activia Properties Inc.		438		2,086,463
Advance Residence Investment Corp.		1,007		2,652,330
Aeon Mall Co. Ltd.		92,500		1,570,849
AEON REIT Investment Corp.		1,110		1,213,860
Daiwa House REIT Investment Corp.		1,110		2,806,118
Daiwa Office Investment Corp.		203		988,867
Frontier Real Estate Investment Corp.		370		1,614,829
Fukuoka REIT Corp.		555		876,289
GLP J-REIT		2,035		2,294,783

Security	Shares		Value
Hulic Co. Ltd.		277,500	$	2,613,932
Hulic Reit Inc.		740		1,188,302
Industrial & Infrastructure Fund Investment Corp.b		262		1,156,401
Invincible Investment Corp.		2,405		921,266
Japan Excellent Inc.		925		1,082,915
Japan Hotel REIT Investment Corp.		2,960		2,015,466
Japan Logistics Fund Inc.		740		1,579,313
Japan Prime Realty Investment Corp.		653		2,451,606
Japan Real Estate Investment Corp.		973		5,123,809
Japan Rental Housing Investments Inc.		1,295		930,560
Japan Retail Fund Investment Corp.		2,035		3,976,164
Kenedix Office Investment Corp.		279		1,581,843
Kenedix Retail REIT Corp.		370		806,253
Mitsubishi Estate Co. Ltd.		946,500		18,085,987
Mitsui Fudosan Co. Ltd.		761,500		16,733,599
Mori Hills REIT Investment Corp.		1,110		1,441,895
MORI TRUST Sogo REIT Inc.		800		1,249,484
Nippon Accommodations Fund Inc.		370		1,589,934
Nippon Building Fund Inc.		1,015		5,399,614
Nippon Prologis REIT Inc.		1,295		2,738,239
Nomura Real Estate Holdings Inc.		92,500		1,562,550
Nomura Real Estate Master Fund Inc.		3,145		4,533,969
NTT Urban Development Corp.		92,500		833,969
Orix JREIT Inc.		2,035		3,227,666
Premier Investment Corp.		925		994,954
Sekisui House Reit Inc.		740		944,667
Sekisui House SI Residential Investment Corp.		925		975,868
Sumitomo Realty & Development Co. Ltd.		370,000		9,977,752
Tokyo Tatemono Co. Ltd.		166,500		2,271,880
TOKYU REIT Inc.		740		918,112
United Urban Investment Corp.		2,220		3,355,791
				118,368,148
NETHERLANDS — 0.76%
Eurocommercial Properties NV		37,185		1,444,573
NSI NV		112,110		473,191
VastNed Retail NV		15,355		573,441
Wereldhave NV		32,190		1,482,053
				3,973,258

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

April 30, 2017

Security	Shares		Value
NEW ZEALAND — 0.20%
Kiwi Property Group Ltd.		1,043,269	$	1,020,665
				1,020,665
NORWAY — 0.20%
Entra ASAc		76,590		880,653
Norwegian Property ASA		133,755		157,699
				1,038,352
SINGAPORE — 5.46%
Ascendas REIT		1,905,595		3,490,251
CapitaLand Commercial Trust		1,610,800		1,872,755
CapitaLand Ltd.		2,016,500		5,424,655
CapitaLand Mall Trust		1,850,000		2,607,498
CDL Hospitality Trustsb		499,500		553,928
City Developments Ltd.		462,500		3,570,419
Fortune REIT		1,110,000		1,290,175
Keppel REITb		1,535,500		1,164,506
Mapletree Commercial Trust		1,517,055		1,731,203
Mapletree Industrial Trust		1,036,000		1,326,780
Mapletree Logistics Trust		1,202,510		972,195
Suntec REIT		1,942,500		2,459,916
UOL Group Ltd.		370,000		1,916,577
				28,380,858
SPAIN — 1.34%
Axiare Patrimonio SOCIMI SA		46,620		773,686
Hispania Activos Inmobiliarios SOCIMI SA		71,440		1,078,233
Inmobiliaria Colonial SA		188,515		1,461,412
Lar Espana Real Estate SOCIMI SA		71,509		591,810
Merlin Properties SOCIMI SA		259,451		3,069,679
				6,974,820
SWEDEN — 2.65%
Castellum AB		218,537		2,993,691
D. Carnegie & Co. ABa		29,231		354,873
Dios Fastigheter AB		70,814		363,075
Fabege AB		106,005		1,826,847
Fastighets AB Balder Class Ba		76,960		1,719,145
Hemfosa Fastigheter AB		76,243		706,911
Hufvudstaden AB Class A		88,985		1,394,850
Klovern AB Class B		451,237		475,453
Kungsleden AB		150,155		841,091
Pandox AB		45,510		764,256
Wallenstam AB Class B		156,562		1,334,918
Wihlborgs Fastigheter AB		52,355		1,020,517
				13,795,627

Security	Shares		Value
SWITZERLAND — 1.93%
Allreal Holding AG Registered		7,955	$	1,368,121
Mobimo Holding AG Registered		4,995		1,342,270
PSP Swiss Property AG Registered		31,820		2,851,318
Swiss Prime Site AG Registered		51,800		4,488,171
				10,049,880
UNITED KINGDOM — 11.14%
Assura PLC		1,323,675		1,048,909
Big Yellow Group PLC		114,145		1,143,005
British Land Co. PLC (The)		814,371		6,916,833
Capital & Counties Properties PLC		589,225		2,407,374
Capital & Regional PLC		451,585		352,003
Custodian Reit PLC		249,195		357,860
Daejan Holdings PLC		4,255		373,783
Derwent London PLC		78,255		2,980,576
Empiric Student Property PLC		410,145		581,034
F&C Commercial Property Trust Ltd.		412,365		809,315
F&C UK REIT		177,970		238,307
GCP Student Living PLC		266,400		523,014
Grainger PLC		320,975		1,037,738
Great Portland Estates PLC		269,175		2,409,856
Hammerson PLC		629,370		4,783,703
Hansteen Holdings PLC		596,810		955,888
Helical PLC		82,695		354,126
Intu Properties PLC		698,005		2,489,692
Kennedy Wilson Europe Real Estate PLC		77,708		1,044,556
Land Securities Group PLC		627,533		8,979,290
LondonMetric Property PLC		500,243		1,089,867
Medicx Fund Ltd.		321,345		371,048
NewRiver REIT PLC		187,128		842,255
Picton Property Income Ltd. (The)		457,534		498,705
Primary Health Properties PLC		479,981		703,255
Redefine International PLC/Isle of Man		962,489		476,297
Regional REIT Ltd.c		194,805		269,671
Safestore Holdings PLC		162,364		850,736
Schroder REIT Ltd.		397,567		336,901
Segro PLC		793,650		4,987,092
Shaftesbury PLC		184,095		2,219,771
Standard Life Investment Property Income Trust Ltd.		318,570		371,965
Target Healthcare REIT Ltd.		217,375		331,850
Tritax Big Box REIT PLC		896,336		1,623,488
UK Commercial Property Trust Ltd.b		531,320		609,719

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® INTERNATIONAL DEVELOPED REAL ESTATE ETF

April 30, 2017

Security	Shares		Value
UNITE Group PLC (The)		177,890	$	1,489,039
Workspace Group PLC		94,165		1,053,185
				57,911,706
TOTAL COMMON STOCKS
(Cost: $540,450,982)				517,120,813
RIGHTS — 0.00%
UNITED KINGDOM — 0.00%
Tritax Big Box REIT PLC (Expires 05/10/17)a		81,485		4,217
				4,217
TOTAL RIGHTS
(Cost: $0)				4,217
SHORT-TERM INVESTMENTS — 1.30%
MONEY MARKET FUNDS — 1.30%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.13%d,e,f		6,245,151		6,247,649

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.67%d,e		511,831	$	511,831
				6,759,480
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,758,260)				6,759,480
TOTAL INVESTMENTS IN SECURITIES — 100.75% (Cost: $547,209,242)g				523,884,510
Other Assets, Less Liabilities — (0.75)%				(3,913,400	)
NET ASSETS — 100.00%			$	519,971,110

^a  Non-income earning security.

^b  All or a portion of this security represents a security on loan. See Note 1.

^c  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^d  Affiliated money market fund.

^e  The rate quoted is the annualized seven-day yield of the fund at period end.

^f  All or a portion of this security represents an investment of securities lending collateral. See Note 1.

^g  The cost of investments for federal income tax purposes was $565,324,707. Net unrealized depreciation was $41,440,197, of which $20,811,071 represented gross unrealized appreciation on securities and $62,251,268 represented gross unrealized depreciation on securities.

Schedule 1 — Fair Value Measurements

Various inputs are used in determining the fair value of financial instruments. For description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, see Note 1.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of April 30, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	515,643,755	$	1,476,986	$	72	$	517,120,813
Rights		—		4,217		—		4,217
Money market funds		6,759,480		—		—		6,759,480
Total	$	522,403,235	$	1,481,203	$	72	$	523,884,510

See notes to financial statements.

SCHEDULES OF INVESTMENTS 33

Statements of Assets and Liabilities

iSHARES^® TRUST

April 30, 2017

	iShares Cohen & Steers REIT ETF			iShares Core U.S. REIT ETF			iShares Europe Developed Real Estate ETF
ASSETS
Investments, at cost:
Unaffiliated	$	2,999,266,620		$	114,009,706		$	45,164,490
Affiliated (Note 2)		296,835,715			9,215,016			346,730
Total cost of investments	$	3,296,102,335		$	123,224,722		$	45,511,220
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	3,235,592,587		$	124,649,946		$	41,203,836
Affiliated (Note 2)		296,905,512			9,215,704			346,810
Total fair value of investments		3,532,498,099			133,865,650			41,550,646
Foreign currency, at valueb		—			—			182,295
Receivables:
Dividends and interest		1,510,774			100,033			129,224
Tax reclaims		—			—			50,450
Total Assets		3,534,008,873			133,965,683			41,912,615
LIABILITIES
Payables:
Investment securities purchased		—			136,735			52,308
Collateral for securities on loan (Note 1)		293,329,952			9,055,831			318,724
Capital shares redeemed		6,411			—			21,375
Investment advisory fees (Note 2)		924,505			7,818			16,573
Total Liabilities		294,260,868			9,200,384			408,980
NET ASSETS	$	3,239,748,005		$	124,765,299		$	41,503,635
Net assets consist of:
Paid-in capital	$	3,196,120,426		$	117,792,063		$	48,714,827
Undistributed net investment income		—			—			46,855
Accumulated net realized loss		(192,768,185	)		(3,667,692	)		(3,297,600	)
Net unrealized appreciation (depreciation)		236,395,764			10,640,928			(3,960,447	)
NET ASSETS	$	3,239,748,005		$	124,765,299		$	41,503,635
Shares outstandingc		32,500,000			2,550,000			1,150,000
Net asset value per share	$	99.68		$	48.93		$	36.09

^a  Securities on loan with values of $279,679,645, $8,629,470 and $296,286, respectively. See Note 1.

^b  Cost of foreign currency: $  —, $  — and $182,062, respectively.

^c  No par value, unlimited number of shares authorized.

See notes to financial statements.

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

April 30, 2017

	iShares Global REIT ETF			iShares International Developed Real Estate ETF
ASSETS
Investments, at cost:
Unaffiliated	$	350,695,092		$	540,450,982
Affiliated (Note 2)		16,430,208			6,758,260
Total cost of investments	$	367,125,300		$	547,209,242
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	349,307,010		$	517,125,030
Affiliated (Note 2)		16,432,356			6,759,480
Total fair value of investments		365,739,366			523,884,510
Foreign currency, at valueb		494,546			1,010,747
Receivables:
Dividends and interest		653,936			1,769,719
Tax reclaims		43,682			194,763
Foreign withholding tax claims (Note 7)		—			93,808
Total Assets		366,931,530			526,953,547
LIABILITIES
Payables:
Investment securities purchased		8,909			536,877
Collateral for securities on loan (Note 1)		16,058,882			6,244,324
Professional fees (Note 7)		—			938
Investment advisory fees (Note 2)		44,831			200,298
Total Liabilities		16,112,622			6,982,437
NET ASSETS	$	350,818,908		$	519,971,110
Net assets consist of:
Paid-in capital	$	355,630,256		$	625,867,971
Distributions in excess of net investment income		(2,331,652	)		(1,053,411	)
Accumulated net realized loss		(1,097,012	)		(81,518,404	)
Net unrealized depreciation		(1,382,684	)		(23,325,046	)
NET ASSETS	$	350,818,908		$	519,971,110
Shares outstandingc		13,800,000			18,500,000
Net asset value per share	$	25.42		$	28.11

^a  Securities on loan with values of $15,370,365 and $5,940,354, respectively. See Note 1.

^b  Cost of foreign currency: $492,797 and $1,009,628, respectively.

^c  No par value, unlimited number of shares authorized.

See notes to financial statements.

FINANCIAL STATEMENTS 35

Statements of Operations

iSHARES^® TRUST

Year ended April 30, 2017

	iShares Cohen & Steers REIT ETF			iShares Core U.S. REIT ETF			iShares Europe Developed Real Estate ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	100,522,483		$	2,255,540		$	1,902,504
Dividends — affiliated (Note 2)		13,460			466			114
Securities lending income — affiliated — net (Note 2)		827,820			12,199			10,179
Total investment income		101,363,763			2,268,205			1,912,797
EXPENSES
Investment advisory fees (Note 2)		12,830,013			221,037			284,000
Total expenses		12,830,013			221,037			284,000
Net investment income		88,533,750			2,047,168			1,628,797
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		2,421,360			(955,921	)		(872,356	)
Investments — affiliated (Note 2)		54,557			455			318
In-kind redemptions — unaffiliated		260,435,289			5,089,586			(1,384,450	)
Foreign currency transactions		—			—			(27,039	)
Payment from affiliate (Note 2)		—			4,569			—
Realized gain distributions from affiliated funds		469			10			2
Net realized gain (loss)		262,911,675			4,138,699			(2,283,525	)
Net change in unrealized appreciation/depreciation on:
Investments		(239,218,059	)		(2,249,143	)		(3,547,635	)
Translation of assets and liabilities in foreign currencies		—			—			(5,648	)
Net change in unrealized appreciation/depreciation		(239,218,059	)		(2,249,143	)		(3,553,283	)
Net realized and unrealized gain (loss)		23,693,616			1,889,556			(5,836,808	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	112,227,366		$	3,936,724		$	(4,208,011	)

^a  Net of foreign withholding tax of $  —, $  — and $217,206, respectively.

See notes to financial statements.

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended April 30, 2017

	iShares Global REIT ETF			iShares International Developed Real Estate ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	8,326,538		$	20,611,783
Dividends — affiliated (Note 2)		1,482			1,581
Securities lending income — affiliated — net (Note 2)		50,371			112,097
Foreign withholding tax claims (Note 7)		—			93,808
Total investment income		8,378,391			20,819,269
EXPENSES
Investment advisory fees (Note 2)		339,671			3,000,255
Professional fees (Note 7)		—			1,144
Total expenses		339,671			3,001,399
Net investment income		8,038,720			17,817,870
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(543,358	)		(13,347,712	)
Investments — affiliated (Note 2)		3,800			2,104
In-kind redemptions — unaffiliated		11,938,843			7,356,449
Foreign currency transactions		6,641			(102,587	)
Realized gain distributions from affiliated funds		5			17
Net realized gain (loss)		11,405,931			(6,091,729	)
Net change in unrealized appreciation/depreciation on:
Investments		(12,682,787	)		(27,703,446	)
Translation of assets and liabilities in foreign currencies		(3,911	)		(62,615	)
Net change in unrealized appreciation/depreciation		(12,686,698	)		(27,766,061	)
Net realized and unrealized loss		(1,280,767	)		(33,857,790	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	6,757,953		$	(16,039,920	)

^a  Net of foreign withholding tax of $429,519 and $1,933,369, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Cohen & Steers REIT ETF						iShares Core U.S. REIT ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	88,533,750		$	78,481,634		$	2,047,168		$	1,744,631
Net realized gain		262,911,675			195,209,913			4,138,699			3,722,641
Net change in unrealized appreciation/depreciation		(239,218,059	)		14,316,745			(2,249,143	)		869,794
Net increase in net assets resulting from operations		112,227,366			288,008,292			3,936,724			6,337,066
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(139,614,589	)		(128,976,895	)		(2,995,924	)		(3,189,819	)
Total distributions to shareholders		(139,614,589	)		(128,976,895	)		(2,995,924	)		(3,189,819	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		711,492,672			778,657,102			68,418,181			—
Cost of shares redeemed		(1,124,603,633	)		(667,591,818	)		(18,916,999	)		(14,003,764	)
Net increase (decrease) in net assets from capital share transactions		(413,110,961	)		111,065,284			49,501,182			(14,003,764	)
INCREASE (DECREASE) IN NET ASSETS		(440,498,184	)		270,096,681			50,441,982			(10,856,517	)
NET ASSETS
Beginning of year		3,680,246,189			3,410,149,508			74,323,317			85,179,834
End of year	$	3,239,748,005		$	3,680,246,189		$	124,765,299		$	74,323,317
SHARES ISSUED AND REDEEMED
Shares sold		6,950,000			8,000,000			1,400,000			—
Shares redeemed		(11,250,000	)		(7,050,000	)		(400,000	)		(300,000	)
Net increase (decrease) in shares outstanding		(4,300,000	)		950,000			1,000,000			(300,000	)

See notes to financial statements.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Europe Developed Real Estate ETF						iShares Global REIT ETF
	Year ended April 30, 2017			Year ended April 30, 2016			Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,628,797		$	1,725,599		$	8,038,720		$	1,896,039
Net realized gain (loss)		(2,283,525	)		2,426,420			11,405,931			(197,168	)
Net change in unrealized appreciation/depreciation		(3,553,283	)		(4,347,478	)		(12,686,698	)		11,343,850
Net increase (decrease) in net assets resulting from operations		(4,208,011	)		(195,459	)		6,757,953			13,042,721
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,664,667	)		(2,481,890	)		(11,961,771	)		(2,198,076	)
From net realized gain		—			—			(308,465	)		—
Total distributions to shareholders		(1,664,667	)		(2,481,890	)		(12,270,236	)		(2,198,076	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,683,040			27,968,405			282,082,713			110,839,557
Cost of shares redeemed		(32,422,164	)		(27,921,455	)		(70,661,906	)		—
Net increase (decrease) in net assets from capital share transactions		(30,739,124	)		46,950			211,420,807			110,839,557
INCREASE (DECREASE) IN NET ASSETS		(36,611,802	)		(2,630,399	)		205,908,524			121,684,202
NET ASSETS
Beginning of year		78,115,437			80,745,836			144,910,384			23,226,182
End of year	$	41,503,635		$	78,115,437		$	350,818,908		$	144,910,384
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	46,855		$	(60,725	)	$	(2,331,652	)	$	(294,733	)
SHARES ISSUED AND REDEEMED
Shares sold		50,000			750,000			11,000,000			4,600,000
Shares redeemed		(950,000	)		(750,000	)		(2,700,000	)		—
Net increase (decrease) in shares outstanding		(900,000	)		—			8,300,000			4,600,000

See notes to financial statements.

FINANCIAL STATEMENTS 39

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares International Developed Real Estate ETF
	Year ended April 30, 2017			Year ended April 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	17,817,870		$	20,071,286
Net realized gain (loss)		(6,091,729	)		711,729
Net change in unrealized appreciation/depreciation		(27,766,061	)		(65,604,469	)
Net decrease in net assets resulting from operations		(16,039,920	)		(44,821,454	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(34,765,645	)		(29,775,478	)
Total distributions to shareholders		(34,765,645	)		(29,775,478	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		241,248,345			95,476,932
Cost of shares redeemed		(370,950,015	)		(320,738,363	)
Net decrease in net assets from capital share transactions		(129,701,670	)		(225,261,431	)
DECREASE IN NET ASSETS		(180,507,235	)		(299,858,363	)
NET ASSETS
Beginning of year		700,478,345			1,000,336,708
End of year	$	519,971,110		$	700,478,345
Distributions in excess of net investment income included in net assets at end of year	$	(1,053,411	)	$	(340,187	)
SHARES ISSUED AND REDEEMED
Shares sold		8,600,000			3,400,000
Shares redeemed		(13,400,000	)		(11,200,000	)
Net decrease in shares outstanding		(4,800,000	)		(7,800,000	)

See notes to financial statements.

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Cohen & Steers REIT ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	100.01		$	95.12		$	85.53		$	88.36		$	78.78
Income from investment operations:
Net investment incomea		2.42			2.23			2.41			2.07			1.91
Net realized and unrealized gain (loss)b		1.15			6.33			10.13			(2.30	)		10.03
Total from investment operations		3.57			8.56			12.54			(0.23	)		11.94
Less distributions from:
Net investment income		(3.90	)		(3.67	)		(2.95	)		(2.60	)		(2.36	)
Total distributions		(3.90	)		(3.67	)		(2.95	)		(2.60	)		(2.36	)
Net asset value, end of year	$	99.68		$	100.01		$	95.12		$	85.53		$	88.36
Total return		3.58	%		9.22	%		14.80	%		0.05	%		15.58	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,239,748		$	3,680,246		$	3,410,150		$	2,715,666		$	3,189,852
Ratio of expenses to average net assets		0.34	%		0.35	%		0.35	%		0.35	%		0.35	%
Ratio of net investment income to average net assets		2.37	%		2.33	%		2.57	%		2.58	%		2.40	%
Portfolio turnover ratec		8	%		14	%		8	%		13	%		11	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 41

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Core U.S.REIT ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	47.95		$	46.04		$	42.38		$	45.04		$	39.29
Income from investment operations:
Net investment incomea		1.27			1.02			1.04			1.17			1.14
Net realized and unrealized gain (loss)b		1.60			2.77			4.19			(2.30	)		6.01
Total from investment operations		2.87			3.79			5.23			(1.13	)		7.15
Less distributions from:
Net investment income		(1.89	)		(1.88	)		(1.57	)		(1.53	)		(1.40	)
Total distributions		(1.89	)		(1.88	)		(1.57	)		(1.53	)		(1.40	)
Net asset value, end of year	$	48.93		$	47.95		$	46.04		$	42.38		$	45.04
Total return		6.02	%		8.48	%		12.44	%		(2.21	)%		18.73	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	124,765		$	74,323		$	85,180		$	80,527		$	103,598
Ratio of expenses to average net assets		0.28	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assets		2.57	%		2.22	%		2.26	%		2.89	%		2.81	%
Portfolio turnover ratec		30	%		11	%		10	%		19	%		13	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Europe Developed Real Estate ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	38.11		$	39.39		$	37.33		$	32.37		$	27.68
Income from investment operations:
Net investment incomea		0.97			0.93			1.18			0.96			1.09
Net realized and unrealized gain (loss)b		(2.09	)		(0.91	)		1.90			5.13			4.91
Total from investment operations		(1.12	)		0.02			3.08			6.09			6.00
Less distributions from:
Net investment income		(0.90	)		(1.30	)		(1.02	)		(1.13	)		(1.31	)
Total distributions		(0.90	)		(1.30	)		(1.02	)		(1.13	)		(1.31	)
Net asset value, end of year	$	36.09		$	38.11		$	39.39		$	37.33		$	32.37
Total return		(2.97	)%		0.16	%		8.39	%		19.62	%		22.66	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	41,504		$	78,115		$	80,746		$	37,332		$	16,184
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of net investment income to average net assets		2.75	%		2.47	%		3.15	%		2.82	%		3.78	%
Portfolio turnover ratec		10	%		14	%		15	%		9	%		14	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 43

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares Global REIT ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Period from Jul. 8, 2014a to Apr. 30, 2015
Net asset value, beginning of period	$	26.35		$	25.81		$	24.90
Income from investment operations:
Net investment incomeb		0.86			0.87			0.69
Net realized and unrealized gain (loss)c		(0.47	)		0.64			0.87
Total from investment operations		0.39			1.51			1.56
Less distributions from:
Net investment income		(1.29	)		(0.97	)		(0.65	)
Net realized gain		(0.03	)		—			—
Total distributions		(1.32	)		(0.97	)		(0.65	)
Net asset value, end of period	$	25.42		$	26.35		$	25.81
Total return		1.53	%		6.17	%		6.30	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	350,819		$	144,910		$	23,226
Ratio of expenses to average net assetse		0.14	%		0.14	%		0.14	%
Ratio of net investment income to average net assetse		3.31	%		3.47	%		3.23	%
Portfolio turnover ratef		5	%		9	%		12	%d

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d  Not annualized.

^e  Annualized for periods of less than one year.

^f  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares International Developed Real Estate ETF
	Year ended Apr. 30, 2017			Year ended Apr. 30, 2016			Year ended Apr. 30, 2015			Year ended Apr. 30, 2014			Year ended Apr. 30, 2013
Net asset value, beginning of year	$	30.06		$	32.17		$	30.79		$	36.55		$	29.21
Income from investment operations:
Net investment incomea		0.82			0.75			1.16			0.93			0.95
Net realized and unrealized gain (loss)b		(0.76	)		(1.79	)		1.27			(3.08	)		8.27
Total from investment operations		0.06			(1.04	)		2.43			(2.15	)		9.22
Less distributions from:
Net investment income		(2.01	)		(1.07	)		(1.05	)		(3.61	)		(1.88	)
Total distributions		(2.01	)		(1.07	)		(1.05	)		(3.61	)		(1.88	)
Net asset value, end of year	$	28.11		$	30.06		$	32.17		$	30.79		$	36.55
Total return		0.63	%c		(3.11	)%		8.06	%		(5.27	)%		32.89	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	519,971		$	700,478		$	1,000,337		$	775,820		$	1,977,536
Ratio of expenses to average net assets		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 7)		0.48	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assets		2.85	%c		2.56	%		3.71	%		2.86	%		2.99	%
Portfolio turnover rated		7	%		12	%		11	%		9	%		16	%

^a  Based on average shares outstanding throughout each period.

^b  The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c  Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees (See Note 7), which resulted in the following increases:

• Total return by 0.04%.

• Ratio of net investment income to average net assets by 0.01%.

^d  Portfolio turnover rates exclude portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 45

Notes to Financial Statements

iSHARES^® TRUST

iShares Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated December 16, 1999.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification Classification
Cohen & Steers REIT	Non-diversified
Core U.S. REITa	Non-diversified
Europe Developed Real Estate	Non-diversified
Global REIT	Non-diversified
International Developed Real Estate	Diversified

^a  Formerly the iShares Real Estate 50 ETF.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective.

Pursuant to the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities that may arise out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.

1. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).

• Equity investments traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

• Open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The valuation techniques used under these approaches take into consideration factors that include but are not limited to (i) attributes specific to the investment; (ii) the principal market for the investment; (iii) the customary participants in the principal market for the investment; (iv) data assumptions by market participants for the investment, if reasonably available; (v) quoted prices for similar investments in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such factors are reported to the Board on a quarterly basis.

The Global Valuation Committee employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices, reviews of large movements in market values, and reviews of market related activity.

Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities;

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 — Unobservable inputs for the asset or liability based on the best information available in the circumstances, to the extent observable inputs are not available, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing

NOTES TO FINANCIAL STATEMENTS 47

Notes to Financial Statements (Continued)

iSHARES^® TRUST

transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Dividend income and capital gain distributions, if any, are recognized on the ex-dividend date, net of any foreign taxes withheld at source. Any taxes withheld that are reclaimable from foreign tax authorities as of April 30, 2017 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated and recorded as a reduction of cost of the related investment and/or reclassified to capital gains. Non-cash dividends received in the form of stock in an elective dividend, if any, are recorded as dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily. Realized gains and losses on investment transactions are determined using the specific identification method.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes.

FOREIGN TAXES

Certain Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of April 30, 2017, if any, are disclosed in the Funds’ statements of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by an

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

approved bank, or securities issued or guaranteed by the U.S. government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

On October 11, 2016, BlackRock, Inc. (“BlackRock”) implemented changes required by amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. The Funds may be exposed to additional risks when reinvesting the cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00 and which may be subject to redemption gates or liquidity fees under certain circumstances.

Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of April 30, 2017, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund are also disclosed in its schedule of investments. The total value of any securities on loan as of April 30, 2017 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of securities lent. Each Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (“MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, a Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than that of the market value of the securities loaned, leaving the lender with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral, or, upon an event of default, resell or re-pledge the collateral.

NOTES TO FINANCIAL STATEMENTS 49

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of

April 30, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
Cohen & Steers REIT
Barclays Capital Inc.	$	291,750	$	291,750	$	—
BNP Paribas New York Branch		956,940		956,940		—
BNP Paribas Prime Brokerage Inc.		3,547,135		3,547,135		—
Citigroup Global Markets Inc.		49,019,311		49,019,311		—
Deutsche Bank Securities Inc.		8,644,279		8,644,279		—
Goldman Sachs & Co.		11,867,002		11,867,002		—
HSBC Bank PLC		6,227,676		6,227,676		—
Jefferies LLC		2,423,883		2,423,883		—
JPMorgan Securities LLC		3,911,595		3,911,595		—
Merrill Lynch, Pierce, Fenner & Smith		4,805,216		4,805,216		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		139,996,719		139,996,719		—
Nomura Securities International Inc.		978,142		978,142		—
State Street Bank & Trust Company		37,279,639		37,279,639		—
UBS Securities LLC		9,730,358		9,730,358		—
	$	279,679,645	$	279,679,645	$	—
Core U.S. REIT
Barclays Capital Inc.	$	7,827	$	7,827	$	—
Citigroup Global Markets Inc.		731,712		731,712		—
Credit Suisse Securities (USA) LLC		57,206		57,206		—
Deutsche Bank Securities Inc.		166,985		166,985		—
JPMorgan Securities LLC		186,674		186,674		—
Merrill Lynch, Pierce, Fenner & Smith		2,202,991		2,202,991		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		2,786,830		2,786,830		—
Nomura Securities International Inc.		507,771		507,771		—
State Street Bank & Trust Company		411,092		411,092		—
UBS Securities LLC		1,570,382		1,570,382		—
	$	8,629,470	$	8,629,470	$	—
Europe Developed Real Estate
Barclays Capital Inc.	$	760	$	760	$	—
Goldman Sachs & Co.		123,008		123,008		—
Merrill Lynch, Pierce, Fenner & Smith		172,518		172,518		—
	$	296,286	$	296,286	$	—

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
Global REIT
Citigroup Global Markets Inc.	$	354,049	$	354,049	$	—
Credit Suisse Securities (USA) LLC		778,797		778,797		—
Deutsche Bank Securities Inc.		2,629,233		2,629,233		—
Goldman Sachs & Co.		1,976,196		1,976,196		—
HSBC Bank PLC		75,936		75,936		—
JPMorgan Securities LLC		2,574,115		2,574,115		—
Macquarie Bank Limited		473,565		473,565		—
Merrill Lynch, Pierce, Fenner & Smith		6,482,241		6,482,241		—
UBS AG		26,233		26,233		—
	$	15,370,365	$	15,370,365	$	—
International Developed Real Estate
Barclays Capital Inc.	$	434,042	$	434,042	$	—
Citigroup Global Markets Inc.		48,000		48,000		—
Goldman Sachs & Co.		1,039,779		1,039,779		—
Macquarie Bank Limited		1,106,281		1,106,281		—
Merrill Lynch, Pierce, Fenner & Smith		1,097,985		1,097,985		—
Morgan Stanley & Co. LLC		2,026,519		2,026,519		—
State Street Bank & Trust Company		187,748		187,748		—
	$	5,940,354	$	5,940,354	$	—

^a  Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s statement of assets and liabilities.

RECENT ACCOUNTING STANDARD

In October 2016, the U.S. Securities and Exchange Commission (the “SEC”) issued a new rule, Investment Company Reporting Modernization, that modernizes and enhances the reporting and disclosure of information by registered investment companies. As part of these changes, the new rule amends Regulation S-X to require standardized, enhanced disclosures related to derivatives and updates to other disclosures in investment company financial statements. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is evaluating the impact, if any, of these changes on the Funds’ financial statements.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent Trustees).

NOTES TO FINANCIAL STATEMENTS 51

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For its investment advisory services to the iShares Cohen & Steers REIT ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

Investment Advisory Fee		Aggregate Average Daily Net Assets
	0.3500%	First $121 billion
	0.3325a	Over $121 billion, up to and including $181  billion
	0.3159a	Over $181 billion, up to and including $231  billion
	0.3001a	Over $231 billion, up to and including $281  billion
	0.2851a	Over $281 billion

^a  Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

iShares ETF	Investment Advisory Fee
Core U.S. REIT		0.08	%
Europe Developed Real Estate		0.48
Global REIT		0.14
International Developed Real Estate		0.48

Prior to November 3, 2016, for its investment advisory services to the iShares Core U.S. REIT ETF, BFA was entitled to an annual investment advisory fee of 0.48% based on the average daily net assets of the Fund.

The SEC has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement, the iShares Cohen & Steers REIT ETF and iShares Core U.S. REIT ETF (the “Group 1 Funds”), retain 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.

Pursuant to a securities lending agreement, the iShares Europe Developed Real Estate ETF, iShares Global REIT ETF and iShares International Developed Real Estate ETF (the “Group 2 Funds”), retain 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013,

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

each Group 1 Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. Each Group 2 Fund will receive for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended April 30, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Cohen & Steers REIT	$	419,897
Core U.S. REIT		6,190
Europe Developed Real Estate		2,405
Global REIT		15,629
International Developed Real Estate		27,003

BlackRock Investments, LLC, an affiliate of BFA, is the distributor for each Fund. Pursuant to the distribution agreement, BFA is responsible for any fees or expenses for distribution services provided to the Funds.

The iShares Core U.S. REIT ETF received a payment from BFA to compensate the Fund for transaction costs incurred in rebalancing its portfolio in connection with the change of its underlying index on November 3, 2016. The payment is reported in the Fund’s statement of operations under “Payment from affiliate”.

Cross trading is the buying or selling of portfolio securities between funds to which BFA (or an affiliate) serves as investment adviser. At its regularly scheduled quarterly meetings, the Board reviews such transactions as of the most recent calendar quarter for compliance with the requirements and restrictions set forth by Rule 17a-7.

For the year ended April 30, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
Cohen & Steers REIT	$	24,141,688	$	5,691,505
Core U.S. REIT		436,729		638,373
Europe Developed Real Estate		4,627		86,780
International Developed Real Estate		57,024		859,938

Each Fund may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in “Dividends – affiliated” in the statements of operations.

The PNC Financial Services Group, Inc. is the largest stockholder of BlackRock and is considered to be an affiliate of the Funds for 1940 Act purposes.

Certain trustees and officers of the Trust are also officers of BTC and/or BFA.

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Continued)

iSHARES^® TRUST

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended April 30, 2017 were as follows:

iShares ETF	Purchases		Sales
Cohen & Steers REIT	$	311,470,015	$	310,301,063
Core U.S. REIT		26,199,542		24,387,825
Europe Developed Real Estate		5,615,031		6,818,913
Global REIT		30,101,577		12,607,676
International Developed Real Estate		42,621,890		62,679,316

In-kind transactions (see Note 4) for the year ended April 30, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Cohen & Steers REIT	$	706,105,823	$	1,119,739,797
Core U.S. REIT		66,568,028		18,689,525
Europe Developed Real Estate		1,644,168		31,166,797
Global REIT		257,109,608		66,519,914
International Developed Real Estate		233,135,982		360,245,269

4. CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units of a fund in the Trust generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Trust may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Trust’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5. PRINCIPAL RISKS

In the normal course of business, each Fund’s investment activities expose it to various types of risk associated with the financial instruments and markets in which it invests. The significant types of financial risks each Fund is exposed to include market risk and credit risk. Each Fund’s prospectus provides details of these and other types of risk.

BFA uses a “passive” or index approach to try to achieve each Fund’s investment objective following the securities included in its underlying index during upturns as well as downturns. BFA does not take steps to reduce market exposure or to lessen the effects of a declining market. Divergence from the underlying index and the composition of the portfolio is monitored by BFA.

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

MARKET RISK

Market risk arises mainly from uncertainty about future values of financial instruments influenced by price, currency and interest rate movements. It represents the potential loss a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s schedule of investments.

A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its schedule of investments.

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: generally less liquid and less efficient securities markets; generally greater price volatility; exchange rate fluctuations and exchange controls; imposition of restrictions on the expatriation of funds or other assets of the Fund; less publicly available information about issuers; the imposition of withholding or other taxes; higher transaction and custody costs; settlement delays and risk of loss attendant in settlement procedures; difficulties in enforcing contractual obligations; less regulation of securities markets; different accounting, disclosure and reporting requirements; more substantial governmental involvement in the economy; higher inflation rates; greater social, economic and political uncertainties; the risk of nationalization or expropriation of assets; and the risk of war. These risks are heightened for investments in issuers from countries with less developed markets.

The economies and markets of European countries are often closely connected and interdependent, and events in one European country can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of several European countries. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.

When a Fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, political and social conditions affecting those market sectors may have a significant impact on its investment performance.

CREDIT RISK

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. BFA and its affiliates manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its statement of assets and liabilities.

NOTES TO FINANCIAL STATEMENTS 55

Notes to Financial Statements (Continued)

iSHARES^® TRUST

6. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of April 30, 2017, attributable to passive foreign investment companies, the expiration of capital loss carryforwards, distributions paid in excess of taxable income, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:

iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
Cohen & Steers REIT	$	34,074,816		$	51,080,839	$	(85,155,655	)
Core U.S. REIT		3,932,190			948,756		(4,880,946	)
Europe Developed Real Estate		(2,633,925	)		143,450		2,490,475
Global REIT		10,010,755			1,886,132		(11,896,887	)
International Developed Real Estate		(19,758,725	)		16,234,551		3,524,174

The tax character of distributions paid during the year ended April 30, 2017 and April 30, 2016 was as follows:

iShares ETF	2017		2016
Cohen & Steers REIT
Ordinary income	$	139,614,589	$	128,976,895
Core U.S. REIT
Ordinary income	$	2,995,924	$	3,189,819
Europe Developed Real Estate
Ordinary income	$	1,664,667	$	2,481,890
Global REIT
Long-term capital gain	$	308,465	$	—
Ordinary income		11,961,771		2,198,076
	$	12,270,236	$	2,198,076
International Developed Real Estate
Ordinary income	$	34,765,645	$	29,775,478

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of April 30, 2017, the tax components of accumulated net earnings (losses) were as follows:

iShares ETF	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains		Capital Loss Carryforwards			Net Unrealized Gains (Losses) a			Qualified Late-Year Losses b			Total
Cohen & Steers REIT	$	—	$	—	$	(96,413,332	)	$	143,112,745		$	(3,071,834	)	$	43,627,579
Core U.S. REIT		—		—		(2,669,515	)		9,642,751			—			6,973,236
Europe Developed Real Estate		264,838		—		(2,925,883	)		(4,550,147	)		—			(7,211,192	)
Global REIT		386,794		556,853		—			(5,754,995	)		—			(4,811,348	)
International Developed Real Estate		5,572,282		—		(70,121,218	)		(41,347,925	)		—			(105,896,861	)

^a  The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the foreign withholding tax reclaims, the timing and recognition of partnership income, and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

^b  The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of April 30, 2017, the following Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non- Expiring  a		Expiring 2018		Expiring 2019		Total
Cohen & Steers REIT	$	—	$	96,413,332	$	—	$	96,413,332
Core U.S. REIT		819,000		1,850,515		—		2,669,515
Europe Developed Real Estate		1,813,353		616,993		495,537		2,925,883
International Developed Real Estate		53,410,043		9,938,969		6,772,206		70,121,218

^a  Must be utilized prior to losses subject to expiration.

For the year ended April 30, 2017, the iShares Cohen & Steers REIT ETF utilized $27,686,543 of its capital loss carryforwards.

The Funds may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” The Funds may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2017, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

7. FOREIGN WITHHOLDING TAX CLAIMS

The iShares International Developed Real Estate ETF intends to file claims to recover taxes withheld by Finland on dividend income on the basis that Finland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has recorded a receivable for all recoverable taxes withheld by Finland based upon recent favorable determinations issued by the Finnish Tax Authority. Withholding tax claims may be for the current year and potentially for a limited number of prior calendar years, depending upon the member state’s statute of limitation on taxes. The Fund continues to evaluate developments in Finland for potential impact to the receivables recorded. Such foreign withholding tax claims are disclosed in the statement of assets and liabilities and statement of operations. Professional fees associated with the filing of these claims resulting in the recovery of foreign withholding taxes were approved by the Board as appropriate expenses of the Fund.

NOTES TO FINANCIAL STATEMENTS 57

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The Internal Revenue Service has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the Fund is able to pass through to its shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.

8. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”). The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. The Defendants believe the claims are without merit and intend to vigorously defend themselves against the allegations in the lawsuit.

9. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and

Shareholders of the iShares Cohen & Steers REIT ETF, iShares Core U.S. REIT ETF,

iShares Europe Developed Real Estate ETF, iShares Global REIT ETF and

iShares International Developed Real Estate ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Cohen & Steers REIT ETF, iShares Core U.S. REIT ETF, iShares Europe Developed Real Estate ETF, iShares Global REIT ETF and iShares International Developed Real Estate ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of April 30, 2017, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of April 30, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

June 22, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 59

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended April 30, 2017:

iShares ETF	Qualified Dividend Income
Cohen & Steers REIT	$	3,812,168
Core U.S. REIT		82,367
Europe Developed Real Estate		1,857,634
Global REIT		1,893,898
International Developed Real Estate		9,616,565

For the fiscal year ended April 30, 2017, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:

iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Europe Developed Real Estate	$	2,119,710	$	199,598
International Developed Real Estate		22,198,539		1,870,814

The iShares Global REIT ETF hereby designates $308,465 as 20% rate long-term capital gain dividends for the fiscal year ended April 30, 2017.

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.

	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Cohen & Steers REIT	$	3.895352	$	—	$	—	$	3.895352		100	%		—	%		—	%		100	%
Core U.S. REIT		1.888403		—		—		1.888403		100			—			—			100
Europe Developed Real Estate		0.902758		—		—		0.902758		100			—			—			100
Global REIT		1.290371		0.033712		—		1.324083		97			3			—			100

Premium/Discount Information

The Premium/Discount Information section is intended to present information about the differences between the daily market price on secondary markets for shares of a fund and that fund’s NAV. NAV is the price at which a fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of a fund generally is determined using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of such fund are listed for trading, as of the time that the fund’s NAV is calculated. A fund’s Market Price may be at, above or below its NAV. The NAV of a fund will fluctuate with changes in the fair value of its portfolio holdings. The Market Price of a fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a fund on a given day, generally at the time the NAV is calculated. A premium is the amount that a fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a fund is trading below the reported NAV, expressed as a percentage of the NAV.

The following information shows the frequency of distributions of premiums and discounts for each of the Funds. The information shown for each Fund is for five calendar years (or from the inception date of such Fund if less than five years) through the date of the most recent calendar quarter-end. The specific periods covered for each Fund are disclosed in the table for such Fund.

SUPPLEMENTAL INFORMATION 61

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares Cohen & Steers REIT ETF Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		505		38.26	%
At NAV		232		17.58
Less than 0.0% and Greater than –0.5%		583		44.16
		1,320		100.00	%

iShares Core U.S. REIT ETF Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		524		39.70	%
At NAV		135		10.23
Less than 0.0% and Greater than –0.5%		661		50.07
		1,320		100.00	%

iShares Europe Developed Real Estate ETF Period Covered: January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		3		0.23	%
Greater than 2.0% and Less than 2.5%		4		0.30
Greater than 1.5% and Less than 2.0%		14		1.06
Greater than 1.0% and Less than 1.5%		57		4.32
Greater than 0.5% and Less than 1.0%		209		15.83
Greater than 0.0% and Less than 0.5%		566		42.88
At NAV		16		1.21
Less than 0.0% and Greater than –0.5%		367		27.80
Less than –0.5% and Greater than –1.0%		73		5.53
Less than –1.0% and Greater than –1.5%		7		0.53
Less than –1.5% and Greater than –2.0%		2		0.15
Less than –2.0% and Greater than –2.5%		1		0.08
Less than –2.5% and Greater than –3.0%		1		0.08
		1,320		100.00	%

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Global REIT ETF Period Covered: July 8, 2014 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.0% and Less than 1.5%		5		0.72	%
Greater than 0.5% and Less than 1.0%		206		29.86
Greater than 0.0% and Less than 0.5%		445		64.50
At NAV		7		1.01
Less than 0.0% and Greater than –0.5%		27		3.91
		690		100.00	%

iShares International Developed Real Estate ETF Period Covered:
January 1, 2012 through March 31, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		1		0.08	%
Greater than 2.0% and Less than 2.5%		1		0.08
Greater than 1.5% and Less than 2.0%		8		0.61
Greater than 1.0% and Less than 1.5%		43		3.26
Greater than 0.5% and Less than 1.0%		267		20.23
Greater than 0.0% and Less than 0.5%		542		41.05
At NAV		13		0.98
Less than 0.0% and Greater than –0.5%		332		25.15
Less than –0.5% and Greater than –1.0%		84		6.36
Less than –1.0% and Greater than –1.5%		22		1.67
Less than –1.5% and Greater than –2.0%		6		0.45
Less than –2.0% and Greater than –2.5%		1		0.08
		1,320		100.00	%

SUPPLEMENTAL INFORMATION 63

Trustee and Officer Information

iSHARES^® TRUST

The Board of Trustees has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Trustee serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust are referred to as independent trustees (“Independent Trustees”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Trustee also serves as a Director of iShares, Inc. and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 334 funds (as of April 30, 2017) within the Exchange-Traded Fund Complex. Drew E. Lawton, from October 2016 to June 2017, and Richard L. Fagnani, from April 2017 to June 2017, served as Advisory Board Members for iShares Trust, iShares, Inc. and iShares U.S. ETF Trust with respect to all funds within the Exchange-Traded Fund Complex. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small and Benjamin Archibald, the address of each Trustee, and officer is c/o BlackRock, Inc., 400 Howard Street, San Francisco, CA 94105. The address of Mr. Kapito, Mr. Wiedman, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52^nd Street, New York, NY 10055. The Board has designated Cecilia H. Herbert as its Independent Board Chair. Additional information about the Funds’ Trustees and officers may be found in the Funds’ combined Statement of Additional Information, which is available without charge, upon request, by calling toll-free 1-800-iShares (1-800-474-2737).

Interested Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Robert S. Kapitoa (60)	Trustee (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’s Portfolio Management Group (since its formation in 1998) and BlackRock, Inc.’s predecessor entities (since 1988); Trustee, University of Pennsylvania (since 2009); President of Board of Directors, Hope & Heroes Children’s Cancer Fund (since 2002).	Director of BlackRock, Inc. (since 2006); Director of iShares, Inc. (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedmanb (46)	Trustee (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Director of iShares, Inc. (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^a  Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

^b  Mark K. Wiedman is deemed to be an “interested person” (as defined in the 1940 Act) of the Trust due to his affiliations with BlackRock, Inc. and its affiliates.

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Cecilia H. Herbert (68)	Trustee (since 2005); Independent Board Chair (since 2016); Nominating and Governance Committee Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; Director (1998-2013) and President (2007-2011) of the Board of Directors, Catholic Charities CYO; Trustee (2002-2011) and Chair of the Finance and Investment Committee (2006-2010) of the Thacher School.	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Independent Board Chair of iShares, Inc. and iShares U.S. ETF Trust (since 2016); Trustee of Forward Funds (17 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (61)	Trustee (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); Managing Director and Global Head of Financial Holding Company Governance & Assurance and the Global Head of Operational Risk Management of Morgan Stanley (2006-2012).	Director of iShares, Inc. (since 2015); Trustee of iShares U.S. ETF Trust (since 2015); Director of PHH Corporation (mortgage solutions) (since 2012); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (62)	Trustee (since 2017).	Retired; Partner, KPMG LLP (2002-2016).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
Charles A. Hurty (73)	Trustee (since 2005); Audit Committee Chair (since 2006).	Retired; Partner, KPMG LLP (1968-2001).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011); Director of SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (61)	Trustee (since 2005); Securities Lending Committee Chair (since 2016).	Chief Investment Officer, Santa Clara University (since 2002).	Director of iShares, Inc. (since 2005); Trustee of iShares U.S. ETF Trust (since 2011).
Drew E. Lawton (58)	Trustee (since 2017).	Senior Managing Director of New York Life Insurance Company (2010-2015).	Director of iShares, Inc. (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (55)	Trustee (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Director of iShares, Inc. (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).

TRUSTEE AND OFFICER INFORMATION 65

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
Madhav V. Rajan (52)	Trustee (since 2011); Equity Plus Committee Chair and 15(c) Committee Chair (since 2016).	Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (since 2001); Professor of Law (by courtesy), Stanford Law School (since 2005); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Director of iShares, Inc. (since 2011); Trustee of iShares U.S. ETF Trust (since 2011); Director, Cavium, Inc. (since 2013).

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (41)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Benjamin Archibald (41)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013): Secretary of the BlackRock-advised Mutual Funds (since 2012).
Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).
Steve Messinger (54)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Charles Park (49)	Chief Compliance Officer (since 2006).	Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex (since 2014); Chief Compliance Officer, BFA (since 2006).
Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

^c  Manish Mehta served as President until October 15, 2016.

TRUSTEE AND OFFICER INFORMATION 67

Notes:

68 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 69

Notes:

70 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)

This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA^®”), FTSE International Limited (“FTSE”), or National Association of Real Estate Investment Trusts (“NAREIT”), nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.

A description of the policies that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request, by calling toll-free 1-800-474-2737; on the Funds’ website at www.iShares.com; and on the U.S. Securities and Exchange Commission (SEC) website at www.sec.gov.

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds’ website.

©2017 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

iS-AR-405-0417

Item 2. Code of Ethics.

iShares Trust (the “Registrant”) adopted a new code of ethics on July 1, 2016 that applies to persons appointed by the Registrant’s Board of Trustees as the President and/or Chief Financial Officer, and any persons performing similar functions. For the fiscal year ended April 30, 2017, there were no amendments to any provision of the former and new codes of ethics, nor were there any waivers granted from any provision of the former and new codes of ethics. A copy of the new code of ethics is filed with this Form N-CSR under Item 12(a)(1).

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees has determined that the Registrant has more than one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its audit committee. The audit committee financial experts serving on the Registrant’s audit committee are Charles A. Hurty, John E. Kerrigan and Madhav V. Rajan, all of whom are independent, as that term is defined under Item 3(a)(2).

Item 4. Principal Accountant Fees and Services.

The principal accountant fees disclosed in items 4(a), 4(b), 4(c), 4(d) and 4(g) are for the thirty-two series of the Registrant for which the fiscal year-end is April 30, 2017 (the “Funds”), and whose annual financial statements are reported in Item 1.

(a) Audit Fees – The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Funds’ annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $423,600 for the fiscal year ended April 30, 2016 and $415,400 for the fiscal year ended April 30, 2017.

(b) Audit-Related Fees – There were no fees billed for the fiscal years ended April 30, 2016 and April 30, 2017 for assurance and related services by the principal accountant that were reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (a) of this Item.

(c) Tax Fees – The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for the review of the Funds’ tax returns and excise tax calculations, were $120,992 for the fiscal year ended April 30, 2016 and $120,992 for the fiscal year ended April 30, 2017.

(d) All Other Fees – There were no other fees billed for the fiscal years ended April 30, 2016 and April 30, 2017 for products and services provided by the principal accountant, other than the services reported in (a) through (c) of this Item.

(e) (1) The Registrant’s audit committee charter, as amended, provides that the audit committee is responsible for the approval, prior to appointment, of the engagement of the principal accountant to annually audit and provide their opinion on the Registrant’s financial statements. The audit committee must also approve, prior to appointment, the engagement of the principal accountant to provide non-audit services to the Registrant or to any entity controlling, controlled by or under common control with the Registrant’s investment adviser (“Adviser Affiliate”) that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant.

(2) There were no services described in (b) through (d) above (including services required by the audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X) that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) None of the hours expended on the principal accountant’s engagement to audit the Funds’ financial statements for the fiscal year ended April 30, 2017 were attributable to work performed by persons other than the principal accountant’s full-time, permanent employees.

(g) The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the Funds, and rendered to the Registrant’s investment adviser, and any Adviser Affiliate that provides ongoing services to the Registrant for the last two fiscal years were $120,992 for the fiscal year ended April 30, 2016 and $120,992 for the fiscal year ended April 30, 2017. The aggregate non-audit fees for the fiscal year ended April 30, 2016 included in this report are different from those included in the previously filed report covering the 12-month period ended April 30, 2016 as this report excludes non-audit fees for services that were rendered to the Registrant’s investment adviser or any Adviser Affiliate that provides ongoing services to the Registrant but that were not related to the Registrant.

(h) The Registrant’s audit committee has considered whether the provision of non-audit services rendered to the Registrant’s investment adviser and any Adviser Affiliate that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, are compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services do not compromise the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

The Registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Charles A. Hurty, John E. Kerrigan and Madhav V. Rajan.

Item 6. Investments.

(a) Schedules of investments are included as part of the reports to shareholders filed under Item 1 of this Form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to the Registrant.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to the Registrant.

Item 10. Submission of Matters to a Vote of Security Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) The President (the Registrant’s Principal Executive Officer) and Chief Financial Officer (the Registrant’s Principal Financial Officer) have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in Section 4(a) of the attached certification.

(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1) Code of Ethics for Senior Officers that is the subject of Item 2 is attached.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable to the Registrant.

(b) Section 906 Certifications are attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

iShares Trust
By: /s/ Martin Small
Martin Small, President (Principal Executive Officer)
Date:	June 29, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Martin Small
Martin Small, President (Principal Executive Officer)
Date:	June 29, 2017
By: /s/ Jack Gee
Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:	June 29, 2017