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: August 31, 2017

Date of reporting period: August 31, 2017

Explanatory Note:

The Registrant is filing this amendment to its Form N-CSR for the period ended August 31, 2017, filed with the Securities and Exchange Commission on November 9, 2017 (Accession Number 0001193125-17-338585). The sole purpose of this amendment is to correct the fund market total returns presented in the Management’s Discussion of Fund Performance and the premium/discount range presented within the Supplemental Information section for the iShares Adaptive Currency Hedged MSCI Japan ETF, iShares Edge MSCI Min Vol Global Currency Hedged ETF, iShares Adaptive Currency Hedged MSCI Eurozone ETF, iShares Edge MSCI Multifactor Consumer Discretionary ETF, iShares Edge MSCI Multifactor Consumer Staples ETF, iShares Edge MSCI Multifactor Energy ETF, iShares Edge MSCI Multifactor Financials ETF, iShares Edge MSCI Multifactor Healthcare ETF, iShares Edge MSCI Multifactor Industrials ETF, iShares Edge MSCI Multifactor Materials ETF, iShares Edge MSCI Multifactor Technology ETF, iShares Edge MSCI Multifactor Utilities ETF, iShares MSCI Argentina and Global Exposure ETF, iShares MSCI Denmark Capped ETF, iShares MSCI Finland Capped ETF, iShares MSCI Germany Small-Cap ETF, iShares MSCI Norway Capped ETF, iShares MSCI India ETF, iShares MSCI India Small-Cap ETF, and iShares MSCI United Kingdom Small-Cap ETF within Item 1, Reports to Stockholders. Except as set forth above, this amendment does not amend, update or change any other items or disclosures found in the original Form N-CSR filing.

Item 1. Reports to Stockholders.

AUGUST 31, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares Edge MSCI Multifactor Consumer Discretionary ETF  |  CNDF  |  BATS

^Ø  iShares Edge MSCI Multifactor Consumer Staples ETF  |  CNSF  |  BATS

^Ø  iShares Edge MSCI Multifactor Energy ETF  |  ERGF  |  BATS

^Ø  iShares Edge MSCI Multifactor Financials ETF  |  FNCF  |  BATS

^Ø  iShares Edge MSCI Multifactor Healthcare ETF  |  HCRF  |  BATS

^Ø  iShares Edge MSCI Multifactor Industrials ETF  |  INDF  |  BATS

^Ø  iShares Edge MSCI Multifactor Materials ETF  |  MATF  |  BATS

^Ø  iShares Edge MSCI Multifactor Technology ETF  |  TCHF  |  BATS

^Ø  iShares Edge MSCI Multifactor Utilities ETF  |  UTLF  |  BATS

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	24
Shareholder Expenses	24
Schedules of Investments	25
iShares Edge MSCI Multifactor Consumer Discretionary ETF	25
iShares Edge MSCI Multifactor Consumer Staples ETF	27
iShares Edge MSCI Multifactor Energy ETF	29
iShares Edge MSCI Multifactor Financials ETF	31
iShares Edge MSCI Multifactor Healthcare ETF	33
iShares Edge MSCI Multifactor Industrials ETF	35
iShares Edge MSCI Multifactor Materials ETF	37
iShares Edge MSCI Multifactor Technology ETF	39
iShares Edge MSCI Multifactor Utilities ETF	41
Financial Statements	43
Financial Highlights	54
Notes to Financial Statements	63
Report of Independent Registered Public Accounting Firm	73
Tax Information	74
Board Review and Approval of Investment Advisory Contract	75
Supplemental Information	79
Trustee and Officer Information	83

Management’s Discussion of Fund Performance

iSHARES^® TRUST

U.S. EQUITY MARKET OVERVIEW

The U.S. stock market posted a strong return for the 12 months ended August 31, 2017 (the “reporting period”). The Russell 3000 Index, a broad U.S. equity index that includes stocks of all capitalization ranges, returned 16.06% for the reporting period.

After declines in September and October 2016, the U.S. equity market began a steady increase that extended through the end of the reporting period. Initially, the catalyst for the market’s advance was the U.S. presidential election in November 2016. The new presidential administration was expected to enact pro-business fiscal policies — including lower taxes, decreased regulation, and increased fiscal spending on infrastructure and other projects — aimed at strengthening U.S. economic growth. These expectations contributed to gains in U.S. stocks in late 2016 and early 2017.

However, the anticipated pro-business policies failed to materialize as the Trump administration and a Republican-controlled Congress struggled to implement their fiscal agenda. In addition, the U.S. Federal Reserve Bank (the “Fed”) increased short-term interest rates three times between December 2016 and June 2017. The Fed’s actions increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to reduce the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017. The interest rate increases and balance sheet reduction were part of the Fed’s plan to begin reducing the substantial economic stimulus measures implemented in the wake of the 2008 credit crisis and re-establish more normal monetary policy conditions.

The lack of economic stimulus initiatives from the federal government along with the Fed’s monetary policy changes created challenges for the U.S. economy. Although year-over-year economic growth improved modestly during the reporting period, it remained below its long-term historical average. Employment growth continued to be robust, leading to a 16-year low in the unemployment rate, and industrial production continued to recover from a low point in late 2015. In contrast, vehicle sales decreased sharply during the reporting period, and although consumer spending increased overall, it declined from its peak in early 2017. In the housing market, home prices continued to increase as demand outstripped supply, in part due to limited new home construction.

In contrast to mixed economic data in the U.S., signs of stronger economic growth emerged globally. This was especially true in China, where economic growth improved after several years of slowing, and the Eurozone, led by increased economic activity in its largest countries, including Germany, France, Italy, and Spain. An improving economic environment in developed countries also contributed to strengthening growth in many emerging economies around the world.

Better global economic conditions led to a notable improvement in earnings growth for U.S. companies, particularly those with significant operations outside of the U.S. In particular, technology-related companies posted strong returns for the reporting period as many of the largest U.S. technology-oriented companies derive more than half of their sales from outside of the country.

As fiscal policy agenda expectations faded, healthy corporate earnings growth helped sustain the advance in the U.S. stock market over the last half of the reporting period. The steadily positive equity market performance contributed to the major U.S. equity indexes reaching record highs late in the reporting period.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		7.41%		7.40%		7.80%		7.41%		7.40%		7.80%
Since Inception		8.31%		8.37%		8.78%		11.05%		11.13%		11.62%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period  a		Annualized Expense Ratio
$	1,000.00	$	1,012.10	$	1.78	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Consumer Discretionary ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the consumer discretionary sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Consumer Discretionary Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was 7.41%, net of fees, while the total return for the Index was 7.80%.

The Index advanced for the reporting period as consumer spending in the U.S. increased. For the year ended August 31, 2017, retail sales grew by 3.2. Nonetheless, retail sales peaked in early 2017 and slowed during the second half of the reporting period, in part due to a steady decline in vehicle sales.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF

Within the Index, the consumer services industry contributed the most to the Index’s return for the reporting period, led by restaurants and cruise line operators. Restaurants benefited from innovative menu changes that attracted customers, while cruise operators were helped by an increase in passengers and higher onboard spending.

Internet retailers and media companies were also significant contributors to the Index’s return for the reporting period. Online retailers benefited from a sharp increase in e-commerce sales, while increased merger and acquisition activity, particularly among cable and satellite television operators, led the advance in the media industry.

On the downside, specialty retailers detracted the most from the Index’s return for the reporting period. Intense competition from e-commerce sales weighed on much of the retail sector, particularly niche specialty stores. Retailers in the apparel, automotive, and home furnishing industries were the most significant detractors from the Index’s performance.

For the reporting period, the Index underperformed the broad sector market, as represented by the MSCI USA Consumer Discretionary Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, value and quality contributed to the Index’s performance relative to the performance of the broad sector market, while size and momentum detracted.

Although the target style factors provided a net positive contribution to relative performance, industry allocation detracted from the Index’s performance compared with that of the broad sector market. Most notably, an overweight allocation in the Index to the struggling specialty retail industry — including department stores, apparel retailers, and home furnishing stores — detracted the most from relative performance. In addition, an underweight allocation in the Index to internet retailers weighed on relative performance. On the positive side, an overweight allocation in the Index to the household durables industry, which includes homebuilders and appliance manufacturers, contributed to relative performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Specialty Retail	23.70	%
Media	19.13
Hotels, Restaurants & Leisure	15.12
Household Durables	14.43
Internet & Direct Marketing Retail	14.12
Auto Components	4.76
Multiline Retail	3.68
Textiles, Apparel & Luxury Goods	2.49
Leisure Products	2.39
Automobiles	0.18
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Amazon.com Inc.	12.33	%
Comcast Corp. Class A	4.87
Home Depot Inc. (The)	4.70
Walt Disney Co. (The)	3.90
Carnival Corp.	3.19
Royal Caribbean Cruises Ltd.	3.17
Mohawk Industries Inc.	2.84
NVR Inc.	2.77
Best Buy Co. Inc.	2.72
Scripps Networks Interactive Inc. Class A	2.70
TOTAL	43.19	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		0.11%		0.11%		0.46%		0.11%		0.11%		0.46%
Since Inception		0.89%		0.92%		1.30%		1.18%		1.22%		1.70%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	986.20	$	1.75	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Consumer Staples ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the consumer staples sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Consumer Staples Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was 0.11%, net of fees, while the total return for the Index was 0.46%.

The fractional gain for the Index during the reporting period generally reflected the impact of broad economic and investment trends. Consumer staples stocks are considered to be defensive investments because they sell products that are typically in demand regardless of the economic environment. Consequently, these stocks tend to perform well during periods of economic

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF

uncertainty, but underperform during periods of economic strength. During the reporting period, economic conditions around the globe improved, resulting in relatively modest returns for consumer staples stocks.

The Index’s performance also reflected the varied industry returns within the consumer staples sector during the reporting period. Household products companies were the most significant contributors to the Index’s return, led by the positive performance of several of the largest companies in the industry. Tobacco producers and beverage companies were also meaningful contributors to performance.

On the downside, food products companies detracted the most from the Index’s return for the reporting period. Increased competition from private-label brands and changing consumption patterns contributed to the decline in food products stocks. Food and drug retailers also weighed on the Index’s performance as the acquisition of a major grocery chain by a large e-commerce company created concerns about pricing and competition in the industry.

For the reporting period, the Index underperformed the broad sector market, as represented by the MSCI USA Consumer Staples Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, value was a strong contributor to the Index’s performance relative to the performance of the broad sector market, while size detracted meaningfully. Quality and momentum were modest detractors.

In addition to the small net negative contribution from the target style factors, industry allocation detracted from the Index’s performance compared with that of the broad sector market. An overweight allocation in the Index to the struggling food products industry and an underweight position in the beverage industry detracted from relative performance for the reporting period. On the positive side, individual security selection in the household products industry contributed to relative performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Food Products	26.87	%
Food & Staples Retailing	25.00
Beverages	20.72
Household Products	14.93
Tobacco	12.48
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Procter & Gamble Co. (The)	10.55	%
Wal-Mart Stores Inc.	8.61
Coca-Cola Co. (The)	7.90
Philip Morris International Inc.	7.70
PepsiCo Inc.	6.82
CVS Health Corp.	6.45
Altria Group Inc.	4.79
Sysco Corp.	3.51
Archer-Daniels-Midland Co.	3.39
Tyson Foods Inc. Class A	3.27
TOTAL	62.99	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR ENERGY ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(3.68)%		(3.76)%		(3.35)%		(3.68)%		(3.76)%		(3.35)%
Since Inception		(1.20)%		(1.23)%		(0.76)%		(1.57)%		(1.61)%		(0.99)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	916.40	$	1.69	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Energy ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the energy sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Energy Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was -3.68%, net of fees, while the total return for the Index was -3.35%.

The modest decline in the Index for the reporting period masked some meaningful volatility. The Index rose sharply in late 2016 along with the price of oil after OPEC members responded to record global crude oil inventories by agreeing to reduce their daily output levels. However, the Index declined gradually over the remainder of the reporting period as rising oil and gas production in

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR ENERGY ETF

the U.S., led by a resurgence in U.S. shale oil production, kept inventories high. In addition, many OPEC countries failed to fully comply with the reduced output agreement. The end result was an ongoing excess of supply that kept the price of oil below $50 per barrel, down from a peak of more than $110 per barrel in 2013.

Oil prices below $50 per barrel continued to pressure the profitability of oil and gas exploration and production companies, which detracted the most from the Index’s return for the reporting period. Energy services and equipment companies also detracted meaningfully from the Index’s performance as energy exploration and production companies cut back on their capital spending projects.

On the positive side, oil and gas refiners contributed the most to the Index’s return for the reporting period, as moderate input costs for oil refiners led to high levels of profitability. Oil and gas storage and transportation companies also contributed to the Index’s performance.

For the reporting period, the Index outperformed the broad sector market, as represented by the MSCI USA Energy Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, value contributed significantly to the Index’s performance relative to the performance of the broad sector market for the reporting period. Momentum and quality were also modest contributors to relative performance, while size detracted.

In addition to the net positive contribution from the target style factors, industry allocation contributed to the Index’s performance compared with that of the broad sector market for the reporting period. In particular, an underweight allocation in the Index to the oil and gas exploration and production industry contributed to relative performance. On the downside, an overweight allocation in the Index in the energy equipment and services industry detracted from relative performance.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Oil, Gas & Consumable Fuels	84.26	%
Energy Equipment & Services	15.74
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Exxon Mobil Corp.	22.92	%
Chevron Corp.	15.14
Phillips 66	5.24
Schlumberger Ltd.	5.16
Valero Energy Corp.	4.75
Andeavor	4.57
Marathon Petroleum Corp.	4.36
Concho Resources Inc.	3.15
HollyFrontier Corp.	3.01
Targa Resources Corp.	3.00
TOTAL	71.30	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR FINANCIALS ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.43%		21.46%		21.75%		21.43%		21.46%		21.75%
Since Inception		21.06%		21.12%		21.47%		28.51%		28.59%		28.94%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,007.20	$	1.77	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Financials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the financials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Financials Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was 21.43%, net of fees, while the total return for the Index was 21.75%.

The robust performance of the Index for the reporting period reflected a series of positive developments for the financials sector, including improving global economic growth, optimism regarding less stringent regulatory requirements, three short-term interest rate increases by the Fed, and strong financial market activity.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR FINANCIALS ETF

Within the Index, banks contributed the most to the Index’s return for the reporting period. Interest rate increases by the Fed led to higher net interest margins, which are the differences between the interest rate a bank charges for lending and the interest rate it pays to depositors. In addition, stress tests for many of the largest U.S. banks indicated strong capital and liquidity positions. Finally, banks benefited from optimism generated by the potential for the new administration to lighten their regulatory burden.

Insurance companies were also meaningful contributors to the Index’s return for the reporting period. The Fed’s interest rate increases were beneficial for insurers as higher interest rates translated into increased profits on their underlying fixed-income portfolios. Insurers typically invest policyholder premiums in these portfolios until they pay out claims.

Another notable contributor to the Index’s return for the reporting period was the capital markets industry, which includes asset managers, brokerage companies, and investment banks. Capital markets companies benefited from increased trading activity and a broad rise in financial markets during the reporting period.

Despite posting a solid return for the reporting period, the Index underperformed the broad sector market, as represented by the MSCI USA Financials Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, size detracted meaningfully from the Index’s performance relative to the performance of the broad sector market, outweighing the positive contributions from momentum and value. Quality had a negligible impact on relative performance.

In addition to the net negative contribution from the target style factors, industry allocation detracted from the Index’s performance compared with that of the broad sector market. Most notably, underweight allocations in the Index to banks and capital markets companies detracted the most from relative performance. On the positive side, an overweight allocation in the Index to the insurance industry contributed to relative performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Banks	43.65	%
Insurance	34.32
Capital Markets	10.22
Diversified Financial Services	7.47
Consumer Finance	4.34
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

JPMorgan Chase & Co.	8.43	%
Wells Fargo & Co.	5.99
Bank of America Corp.	5.74
Berkshire Hathaway Inc. Class B	5.11
Citigroup Inc.	3.95
Aflac Inc.	3.17
Synchrony Financial	3.01
Ameriprise Financial Inc.	2.80
Principal Financial Group Inc.	2.56
Lincoln National Corp.	2.53
TOTAL	43.29	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR HEALTHCARE ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.05%		16.04%		16.55%		16.05%		16.04%		16.55%
Since Inception		15.66%		15.71%		16.19%		21.03%		21.11%		21.66%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,103.00	$	1.86	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Healthcare ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the healthcare sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Health Care Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was 16.05%, net of fees, while the total return for the Index was 16.55%.

The Index posted a strong return for the reporting period despite some challenges facing the healthcare sector, including uncertainty surrounding the fate of the Affordable Care Act (“ACA”) and the possibility of an executive order from President Trump

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR HEALTHCARE ETF

targeting drug prices. However, beneficial long-term trends such as the aging of the baby boomer generation and growing technological innovation continued to support healthcare stocks.

The leading contributor to the Index’s return for the reporting period was the healthcare providers and services industry. In particular, managed healthcare providers generated robust profit growth resulting from improved medical cost controls and increased Medicare and Medicaid revenues. Nonetheless, volatility in managed healthcare stocks increased during the reporting period as Congress struggled to agree on a solution to repeal and replace the ACA.

The healthcare equipment and supplies industry also contributed meaningfully to the Index’s return for the reporting period. Healthcare equipment manufacturers benefited from merger and acquisition activity, while companies that produce contact lenses and dental supplies drove gains among healthcare suppliers.

Other contributors to the Index’s performance for the reporting period included the pharmaceuticals and biotechnology industries. Although regulatory uncertainty regarding drug pricing weighed on both industries, positive clinical trial data for a number of new medications and a proposal to streamline approvals from the Food and Drug Administration helped biotechnology and pharmaceuticals stocks.

For the reporting period, the Index outperformed the broad sector market, as represented by the MSCI USA Health Care Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, momentum and value contributed to the Index’s performance relative to the performance of the broad sector market, while size detracted. Quality had a negligible impact on relative performance.

In addition to the net positive contribution from the target style factors, industry allocation also contributed to the Index’s performance compared with that of the broad sector market. Overweight allocations in the Index to the healthcare equipment and supplies industry and to the healthcare providers and services industry, particularly managed healthcare companies, contributed to relative performance. On the downside, underweight allocations to the pharmaceutical and biotechnology industries detracted from relative performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total Investments*

Health Care Providers & Services	33.07	%
Health Care Equipment & Supplies	26.27
Pharmaceuticals	21.00
Biotechnology	9.56
Life Sciences Tools & Services	8.09
Health Care Technology	2.01
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total Investments*

Johnson & Johnson	10.67	%
Pfizer Inc.	4.43
UnitedHealth Group Inc.	3.91
Anthem Inc.	3.72
Merck & Co. Inc.	3.70
Cigna Corp.	3.62
Danaher Corp.	3.56
Intuitive Surgical Inc.	3.40
Humana Inc.	3.34
Agilent Technologies Inc.	2.83
TOTAL	43.18	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR INDUSTRIALS ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.46%		16.41%		16.94%		16.46%		16.41%		16.94%
Since Inception		14.88%		14.94%		15.45%		19.97%		20.05%		20.65%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,019.10	$	1.78	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the industrials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Industrials Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was 16.46%, net of fees, while the total return for the Index was 16.94%.

The Index’s strong return for the reporting period reflected improving global economic growth, which was especially beneficial for industrial stocks with significant operations outside of the U.S. However, industrial stocks also benefited from better economic

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR INDUSTRIALS ETF

conditions domestically as the 12-month growth rate for industrial production turned positive in late 2016 after 20 consecutive months of declines.

Within the Index, the capital goods industry contributed the most to performance for the reporting period, led by aerospace and defense companies and machinery manufacturers. Aerospace and defense stocks benefited from expectations of increased defense spending by the federal government, as well as strong orders for new aircraft. The machinery industry advanced as robust new order growth led to better-than-expected earnings.

Transportation stocks also contributed meaningfully to the Index’s return for the reporting period, led by strong results for airline operators. U.S. airline operators benefited from industry consolidation, relatively low fuel prices, and slowing capacity growth that led to higher passenger fares.

Other contributors to the Index’s return for the reporting period included commercial and professional services stocks, most notably environmental services companies and human resources and employment services providers. On the downside, industrial conglomerates and construction and engineering companies detracted from the Index’s performance.

For the reporting period, the Index narrowly trailed the broad sector market, as represented by the MSCI USA Industrials Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, value was a significant contributor to the Index’s performance relative to the performance of the broad sector market, while size was a meaningful detractor. Momentum contributed modestly, while quality had a negligible impact on relative performance.

Although the target style factors made a net positive contribution to relative performance, industry allocation detracted from the Index’s performance compared with that of the broad sector market. An underweight allocation in the Index to the capital goods industry, particularly aerospace and defense companies and machinery manufacturers, detracted the most from relative performance. On the positive side, overweight allocations to the airlines and professional services industries contributed to relative performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Aerospace & Defense	16.67	%
Industrial Conglomerates	14.62
Machinery	14.52
Road & Rail	12.61
Commercial Services & Supplies	10.54
Professional Services	7.10
Air Freight & Logistics	6.64
Construction & Engineering	4.22
Airlines	3.91
Electrical Equipment	3.31
Building Products	3.30
Trading Companies & Distributors	2.56
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

General Electric Co.	8.32	%
Boeing Co. (The)	3.94
Norfolk Southern Corp.	3.72
3M Co.	3.67
Eaton Corp. PLC	3.31
Cummins Inc.	3.21
Stanley Black & Decker Inc.	3.08
Parker-Hannifin Corp.	3.01
Waste Connections Inc.	2.95
L3 Technologies Inc.	2.84
TOTAL	38.05	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 17

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR MATERIALS ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.22%		18.01%		18.72%		18.22%		18.01%		18.72%
Since Inception		18.76%		18.70%		19.22%		25.31%		25.23%		25.82%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,060.70	$	1.82	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Materials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the materials sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Materials Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was 18.22%, net of fees, while the total return for the Index was 18.72%.

The Index’s strong return for the reporting period reflected improving global economic growth, which helped drive increased demand for raw materials worldwide and led to higher prices for many commodities. In particular, an economic recovery in China, one of the world’s largest consumers of raw materials, provided support for materials stocks.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR MATERIALS ETF

Within the Index, chemicals companies contributed the most to performance for the reporting period. The industry benefited from growing demand for chemicals across key end-use markets, including the construction, automotive, and electronics industries. Chemicals companies also benefited from increased productivity and strategic acquisitions. Diversified chemicals and specialty chemicals companies were the most significant performance contributors in the industry.

Containers and packaging companies were also meaningful contributors to the Index’s return for the reporting period, led by the paper packaging industry. Rising containerboard and pulp prices provided a favorable environment for paper packaging stocks, as did increased merger and acquisition activity.

Other contributors to the Index’s return for the reporting period included metals and mining stocks. Steel producers were the largest contributors among metals and mining stocks as they benefited from a sharp increase in base metals prices, including an increase of nearly 50% in steel prices. Increased global demand for base metals, particularly from China, helped drive the advance in the steel industry.

For the reporting period, the Index outperformed the broad sector market, as represented by the MSCI USA Materials Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, value and momentum contributed meaningfully to the Index’s performance relative to the performance of the broad sector market, while size detracted. Quality had a slightly positive impact on relative performance.

Although the target style factors produced a net positive contribution to relative performance, industry allocation detracted from the Index’s performance compared with that of the broad sector market. Most notably, an underweight allocation in the Index to copper companies and security selection among gold mining stocks detracted the most from relative performance. On the positive side, overweight allocations in the Index to steel companies and paper packaging producers contributed to relative performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Chemicals	70.79	%
Containers & Packaging	12.98
Metals & Mining	11.77
Construction Materials	4.46
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Dow Chemical Co. (The)	11.37	%
EI du Pont de Nemours & Co.	9.05
LyondellBasell Industries NV Class A	6.97
Sherwin-Williams Co. (The)	6.39
Monsanto Co.	5.93
Celanese Corp. Series A	4.36
WestRock Co.	4.34
Eastman Chemical Co.	4.10
Albemarle Corp.	4.09
Newmont Mining Corp.	4.08
TOTAL	60.68	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 19

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR TECHNOLOGY ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		30.76%		30.66%		31.30%		30.76%		30.66%		31.30%
Since Inception		35.87%		35.89%		36.60%		49.52%		49.56%		50.31%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,126.10	$	1.88	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Technology ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the information technology sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Information Technology Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was 30.76%, net of fees, while the total return for the Index was 31.30%.

The information technology sector was the best-performing sector in the U.S. stock market during the reporting period. The robust performance of the Index reflected strength among several large, dominant information technology companies with healthy cash

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR TECHNOLOGY ETF

flow growth, significant market share, and high barriers to entry. However, strong earnings growth across the sector contributed to broadly positive performance for information technology stocks.

The software and services industry, the largest industry weight in the Index on average, contributed the most to the Index’s return for the reporting period. Systems software companies led the advance in the software and services industry amid developing trends toward cloud computing and cybersecurity software. Internet software and services companies, particularly those involved in social media and online search, were also strong contributors.

Technology hardware and equipment stocks also contributed significantly to the Index’s return for the reporting period. Growth in mobile devices and other consumer electronics, along with data storage and networking, drove much of the performance in the technology hardware industry.

Another meaningful contributor to the Index’s return for the reporting period was the semiconductor industry. As new technologies such as cloud computing and artificial intelligence expand, demand for microchips to power servers and data centers has increased significantly. These developments helped drive the strong performance among semiconductor manufacturers.

For the reporting period, the Index outperformed the broad sector market, as represented by the MSCI USA Technology Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, value and momentum contributed to the Index’s performance relative to the performance of the broad sector market, while size detracted. Quality had a negligible impact on relative performance.

In addition to the net positive contribution from the target style factors, industry allocation contributed to the Index’s performance compared with that of the broad sector market. An overweight allocation in the Index to electronic equipment, instruments, and components companies contributed the most to relative performance. Positioning within the semiconductor industry was also positive for relative performance, while an underweight allocation to the internet software and services industry detracted from relative performance for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Software	24.54	%
Technology Hardware, Storage & Peripherals	20.43
Semiconductors & Semiconductor Equipment	13.44
IT Services	12.86
Internet Software & Services	12.69
Electronic Equipment, Instruments & Components	9.90
Communications Equipment	6.14
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Apple Inc.	14.38	%
Microsoft Corp.	8.37
Facebook Inc. Class A	5.52
Alphabet Inc. Class C	3.67
Accenture PLC Class A	3.58
Alphabet Inc. Class A	3.50
Applied Materials Inc.	2.87
Micron Technology Inc.	2.82
Lam Research Corp.	2.56
TE Connectivity Ltd.	2.56
TOTAL	49.83	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 21

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR UTILITIES ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		12.60%		12.54%		13.06%		12.60%		12.54%		13.06%
Since Inception		10.62%		10.67%		11.13%		14.16%		14.23%		14.78%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/10/16. The first day of secondary market trading was 5/12/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,057.40	$	1.82	$	1,000.00	$	1,023.40	$	1.79		0.35%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 24 for more information.

The iShares Edge MSCI Multifactor Utilities ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. large- and mid-capitalization stocks in the utilities sector that have favorable exposure to target style factors subject to constraints, as represented by the MSCI USA Utilities Diversified Multiple-Factor Capped 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 August 31, 2017, the total return for the Fund was 12.60%, net of fees, while the total return for the Index was 13.06%.

The Index posted a solid return despite higher interest rates during the reporting period. Because of their relatively high dividend yields, utilities tend to be sensitive to interest rate changes. The Index declined early in the reporting period as optimism about the

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR UTILITIES ETF

U.S. economy led to a sharp rise in interest rates. However, the Index rebounded over the latter half of the reporting period as interest rates generally declined.

Other factors were also supportive for the utilities sector during the reporting period. Merger and acquisition activity, which accelerated in 2016 as utilities sought diversification and economies of scale, continued to support the utilities sector in 2017, driven primarily by acquisitions of alternative and renewable energy providers.

Another supportive factor for the utilities sector was an increasing shift toward deregulation in several states, including California. The development of new energy sources outside the regulated utility domain, including the increased availability of distributed electricity generation such as rooftop solar power, has led to changes in the regulatory environment that allow traditional utilities to better compete with these newer energy programs.

Within the Index, electric utilities, the largest industry weight on average, contributed the most to the Index’s performance for the reporting period. Multi-utilities, which provide more than one essential service, such as electricity and natural gas, also contributed meaningfully to the Index’s return. On the downside, independent power producers detracted from performance.

For the reporting period, the Index underperformed the broad sector market, as represented by the MSCI USA Utilities Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, value contributed to the Index’s performance relative to the performance of the broad sector market, while size detracted. Quality and momentum each had a negligible impact on relative performance.

On balance, industry allocation had little net impact on relative performance as the positive contribution from an overweight allocation in the Index to gas utilities was largely offset by underweight allocations to water utilities and multi-utilities, which detracted from the Index’s performance compared with that of the broad sector market. However, individual security selection detracted from relative performance, particularly in the multi-utilities industry.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Electric Utilities	64.24	%
Multi-Utilities	26.20
Gas Utilities	6.62
Independent Power and Renewable Electricity Producers	2.94
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

NextEra Energy Inc.	7.87	%
Exelon Corp.	7.05
Duke Energy Corp.	6.65
Consolidated Edison Inc.	5.67
Xcel Energy Inc.	5.64
Public Service Enterprise Group Inc.	5.41
Dominion Energy Inc.	5.10
American Electric Power Co. Inc.	4.95
Southern Co. (The)	4.93
Eversource Energy	4.85
TOTAL	58.12	%

* 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 March 1, 2017 and held through August 31, 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^® EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.86%
AUTO COMPONENTS — 4.75%
Goodyear Tire & Rubber Co. (The)		2,035	$	61,660
Lear Corp.		463		69,237
				130,897
AUTOMOBILES — 0.18%
General Motors Co.		135		4,933
				4,933
HOTELS, RESTAURANTS & LEISURE — 15.10%
Carnival Corp.		1,264		87,823
Darden Restaurants Inc.		774		63,538
McDonald’s Corp.		459		73,426
Royal Caribbean Cruises Ltd.		702		87,371
Starbucks Corp.		568		31,160
Vail Resorts Inc.		320		72,944
				416,262
HOUSEHOLD DURABLES — 14.41%
DR Horton Inc.		2,024		73,168
Garmin Ltd.		1,223		62,984
Leggett & Platt Inc.		1,253		57,600
Mohawk Industries Inc.a		309		78,214
NVR Inc.a		28		76,184
Toll Brothers Inc.		1,082		42,155
Whirlpool Corp.		40		6,865
				397,170
INTERNET & DIRECT MARKETING RETAIL — 14.11%
Amazon.com Inc.a		346		339,288
Netflix Inc.a		82		14,326
Priceline Group Inc. (The)a		19		35,189
				388,803
LEISURE PRODUCTS — 2.39%
Hasbro Inc.		671		65,926
				65,926
MEDIA — 19.10%
Charter Communications Inc. Class Aa,b		42		16,739
Comcast Corp. Class A		3,299		133,972
Interpublic Group of Companies Inc. (The)		2,726		54,902
News Corp. Class A		3,881		51,889
Omnicom Group Inc.		908		65,721
Scripps Networks Interactive Inc. Class A		867		74,259
Time Warner Inc.		213		21,534
Walt Disney Co. (The)		1,062		107,474
				526,490

Security	Shares		Value
MULTILINE RETAIL — 3.67%
Kohl’s Corp.		1,684	$	66,989
Nordstrom Inc.		767		34,224
				101,213
SPECIALTY RETAIL — 23.66%
Bed Bath & Beyond Inc.		909		25,079
Best Buy Co. Inc.		1,378		74,770
Dick’s Sporting Goods Inc.		919		24,225
Gap Inc. (The)		2,427		57,326
Home Depot Inc. (The)		863		129,338
Lowe’s Companies Inc.		226		16,699
O’Reilly Automotive Inc.a		303		59,427
Ross Stores Inc.		1,240		72,478
Staples Inc.		6,570		67,113
Tiffany & Co.		69		6,307
TJX Companies Inc. (The)		879		63,552
Ulta Salon Cosmetics & Fragrance Inc.a		253		55,915
				652,229
TEXTILES, APPAREL & LUXURY GOODS — 2.49%
Michael Kors Holdings Ltd.a		1,289		54,422
NIKE Inc. Class B		268		14,153
				68,575
TOTAL COMMON STOCKS
(Cost: $2,676,690)				2,752,498
SHORT-TERM INVESTMENTS — 0.61%
MONEY MARKET FUNDS — 0.61%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%c,d,e		15,243		15,248
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		1,374		1,374
				16,622
TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,622)				16,622

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR CONSUMER DISCRETIONARY ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.47%
(Cost: $2,693,312)f	$	2,769,120
Other Assets, Less Liabilities — (0.47)%		(12,830	)
NET ASSETS — 100.00%	$	2,756,290

^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  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 (including short positions and derivatives, if any) for federal income tax purposes was $2,693,793. Net unrealized appreciation was $75,327, of which $170,918 represented gross unrealized appreciation on investments and $95,591 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		9,028		6,215	b		—			15,243	$	15,248	$	18	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,397		—			(23	)b		1,374		1,374		—		—		28
											$	16,622	$	18	$	—	$	28

^a  Includes realized capital gain distributionsfrom an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investments of securities lending cash collateral which is not direct income of the Fund. and is reflected as a component of securities lending income in the statement of operation.

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 August 31, 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	$	2,752,498	$	—	$	—	$	2,752,498
Money market funds		16,622		—		—		16,622
Total	$	2,769,120	$	—	$	—	$	2,769,120

See notes to financial statements.

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.71%
BEVERAGES — 20.66%
Brown-Forman Corp. Class B		24	$	1,274
Coca-Cola Co. (The)		4,325		197,004
Dr Pepper Snapple Group Inc.		828		75,389
Molson Coors Brewing Co. Class B		816		73,236
PepsiCo Inc.		1,470		170,123
				517,026
FOOD & STAPLES RETAILING — 24.92%
Costco Wholesale Corp.		288		45,141
CVS Health Corp.		2,081		160,944
Kroger Co. (The)		3,075		67,250
Sysco Corp.		1,662		87,538
Wal-Mart Stores Inc.		2,751		214,771
Walgreens Boots Alliance Inc.		589		48,003
				623,647
FOOD PRODUCTS — 26.79%
Archer-Daniels-Midland Co.		2,045		84,499
Bunge Ltd.		946		70,600
Campbell Soup Co.		1,195		55,209
Hershey Co. (The)		666		69,877
Hormel Foods Corp.		1,908		58,652
Ingredion Inc.		554		68,596
JM Smucker Co. (The)		576		60,342
Kraft Heinz Co. (The)		240		19,380
McCormick & Co. Inc./MD NVS		676		64,308
Mondelez International Inc. Class A		915		37,204
Tyson Foods Inc. Class A		1,289		81,593
				670,260
HOUSEHOLD PRODUCTS — 14.89%
Church & Dwight Co. Inc.		1,405		70,489
Colgate-Palmolive Co.		431		30,877

Security	Shares		Value
Kimberly-Clark Corp.		65	$	8,014
Procter & Gamble Co. (The)		2,852		263,154
				372,534
TOBACCO — 12.45%
Altria Group Inc.		1,884		119,446
Philip Morris International Inc.		1,642		191,999
				311,445
TOTAL COMMON STOCKS
(Cost: $2,599,171)				2,494,912
SHORT-TERM INVESTMENTS — 0.07%
MONEY MARKET FUNDS — 0.07%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		1,864		1,864
				1,864
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,864)				1,864
TOTAL INVESTMENTS IN SECURITIES — 99.78%
(Cost: $2,601,035)c				2,496,776
Other Assets, Less Liabilities — 0.22%				5,474
NET ASSETS — 100.00%			$	2,502,250

NVS  —  Non-Voting Shares

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,601,628. Net unrealized depreciation was $104,852, of which $46,002 represented gross unrealized appreciation on investments and $150,854 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		4,662		—		(2,798	)b		1,864	$	1,864	$	—	$	—		34

^a  Includes realized capital gain distributionsfrom an affiliated fund, if any.

^b  Net of shares purchased and sold.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR CONSUMER STAPLES ETF

August 31, 2017

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 August 31, 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	$	2,494,912	$	—	$	—	$	2,494,912
Money market funds		1,864		—		—		1,864
Total	$	2,496,776	$	—	$	—	$	2,496,776

See notes to financial statements.

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR ENERGY ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.25%
ENERGY EQUIPMENT & SERVICES — 15.63%
Core Laboratories NV		564	$	49,733
Halliburton Co.		613		23,889
Helmerich & Payne Inc.		1,081		45,770
National Oilwell Varco Inc.		2,206		67,658
Schlumberger Ltd.		1,922		122,066
TechnipFMC PLCa		2,459		63,516
				372,632
OIL, GAS & CONSUMABLE FUELS — 83.62%
Anadarko Petroleum Corp.		148		6,058
Andeavor		1,081		108,262
Chevron Corp.		3,330		358,375
Cimarex Energy Co.		620		61,808
Concho Resources Inc.a		671		74,461
ConocoPhillips		1,287		56,190
Diamondback Energy Inc.a,b		675		61,283
EOG Resources Inc.		561		47,679
Exxon Mobil Corp.		7,107		542,477
HollyFrontier Corp.		2,276		71,262
Kinder Morgan Inc./DE		1,275		24,646
Marathon Petroleum Corp.		1,965		103,064
Murphy Oil Corp.		2,252		51,030
Occidental Petroleum Corp.		626		37,372
ONEOK Inc.		446		24,155
Parsley Energy Inc. Class Aa		2,073		51,929
Phillips 66		1,480		124,039
Pioneer Natural Resources Co.		50		6,483
Targa Resources Corp.		1,594		71,045
Valero Energy Corp.		1,652		112,501
				1,994,119
TOTAL COMMON STOCKS
(Cost: $2,555,877)				2,366,751
SHORT-TERM INVESTMENTS — 1.37%
MONEY MARKET FUNDS — 1.37%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%c,d,e		29,404		29,412

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		3,274	$	3,274
				32,686
TOTAL SHORT-TERM INVESTMENTS
(Cost: $32,686)				32,686
TOTAL INVESTMENTS IN SECURITIES — 100.62%
(Cost: $2,588,563)f				2,399,437
Other Assets, Less Liabilities — (0.62)%				(14,869	)
NET ASSETS — 100.00%			$	2,384,568

^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  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 (including short positions and derivatives, if any) for federal income tax purposes was $2,593,639. Net unrealized depreciation was $194,202, of which $61,640 represented gross unrealized appreciation on investments and $255,842 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR ENERGY ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		11,330		18,074b		—		29,404	$	29,412	$	20	$	—		—c
BlackRock Cash Funds: Treasury, SL Agency Shares		992		2,282b		—		3,274		3,274		—		—		15
									$	32,686	$	20	$	—	$	15

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investments of securities lending cash collateral which is not direct income of the Fund. and is reflected as a component of securities lending income in the statement of operation.

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 August 31, 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	$	2,366,751	$	—	$	—	$	2,366,751
Money market funds		32,686		—		—		32,686
Total	$	2,399,437	$	—	$	—	$	2,399,437

See notes to financial statements.

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR FINANCIALS ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.89%
BANKS — 43.60%
Bank of America Corp.		7,655	$	182,878
Citigroup Inc.		1,849		125,787
Citizens Financial Group Inc.		2,300		76,199
Comerica Inc.		1,086		74,120
East West Bancorp. Inc.		1,301		72,036
Fifth Third Bancorp.		3,080		80,480
Huntington Bancshares Inc./OH		5,752		72,418
JPMorgan Chase & Co.		2,958		268,853
People’s United Financial Inc.		512		8,550
Regions Financial Corp.		5,690		80,286
SVB Financial Groupa		306		51,818
U.S. Bancorp.		580		29,725
Wells Fargo & Co.		3,741		191,053
Zions BanCorp.		1,772		77,366
				1,391,569
CAPITAL MARKETS — 10.21%
Ameriprise Financial Inc.		645		89,339
Eaton Vance Corp. NVS		1,215		57,810
Goldman Sachs Group Inc. (The)		90		20,136
Raymond James Financial Inc.		992		77,693
SEI Investments Co.		1,382		80,792
				325,770
CONSUMER FINANCE — 4.34%
Capital One Financial Corp.		32		2,548
Navient Corp.		3,027		39,956
Synchrony Financial		3,118		96,003
				138,507
DIVERSIFIED FINANCIAL SERVICES — 7.46%
Berkshire Hathaway Inc. Class Ba		899		162,863
Voya Financial Inc.		1,971		75,351
				238,214
INSURANCE — 34.28%
Aflac Inc.		1,223		100,959
Alleghany Corp.a		114		64,156
American Financial Group Inc./OH		719		73,201
American International Group Inc.		42		2,540
Arch Capital Group Ltd.a		820		79,819
Assurant Inc.		590		55,867
Athene Holding Ltd. Class Aa		1,107		59,236
Axis Capital Holdings Ltd.		911		54,879
Chubb Ltd.		53		7,495
Everest Re Group Ltd.		294		74,229

Security	Shares		Value
Lincoln National Corp.		1,191	$	80,821
Principal Financial Group Inc.		1,303		81,464
Reinsurance Group of America Inc.		556		74,754
Torchmark Corp.		958		73,737
Unum Group		1,616		77,859
WR Berkley Corp.		899		59,909
XL Group Ltd.		1,784		73,073
				1,093,998
TOTAL COMMON STOCKS
(Cost: $2,654,365)				3,188,058
SHORT-TERM INVESTMENTS — 0.28%
MONEY MARKET FUNDS — 0.28%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		8,924		8,924
				8,924
TOTAL SHORT-TERM INVESTMENTS
(Cost: $8,924)				8,924
TOTAL INVESTMENTS IN SECURITIES — 100.17%
(Cost: $2,663,289)d				3,196,982
Other Assets, Less Liabilities — (0.17)%				(5,375	)
NET ASSETS — 100.00%			$	3,191,607

NVS — Non-Voting Shares

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,663,759. Net unrealized appreciation was $533,223, of which $536,225 represented gross unrealized appreciation on investments and $3,002 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR FINANCIALS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—b		—		—	$	—	$	(3	)	$	—	$	—c
BlackRock Cash Funds: Treasury, SL Agency Shares		2,187		6,737b		—		8,924		8,924					—		27
									$	8,924	$	(3	)	$	—	$	27

^a  Includes realized capital gain distributionsfrom an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investments of securities lending cash collateral which is not direct income of the Fund. and is reflected as a component of securities lending income in the statement of operation.

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 August 31, 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	$	3,188,058	$	—	$	—	$	3,188,058
Money market funds		8,924		—		—		8,924
Total	$	3,196,982	$	—	$	—	$	3,196,982

See notes to financial statements.

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR HEALTHCARE ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.86%
BIOTECHNOLOGY — 9.54%
AbbVie Inc.		1,990	$	149,846
Amgen Inc.		1,030		183,103
Biogen Inc.a		510		161,446
Celgene Corp.a		784		108,921
Gilead Sciences Inc.		1,113		93,169
United Therapeutics Corp.a		1,294		169,255
				865,740
HEALTH CARE EQUIPMENT & SUPPLIES — 26.24%
Abbott Laboratories		1,037		52,825
Align Technology Inc.a		1,447		255,743
Cooper Companies Inc. (The)		941		236,031
Danaher Corp.		3,864		322,335
DENTSPLY SIRONA Inc.		3,431		194,091
IDEXX Laboratories Inc.a		1,307		203,147
Intuitive Surgical Inc.a		307		308,434
Medtronic PLC		1,904		153,500
ResMed Inc.		2,896		224,672
Teleflex Inc.		996		210,903
Varian Medical Systems Inc.a		2,060		218,875
				2,380,556
HEALTH CARE PROVIDERS & SERVICES — 33.03%
Anthem Inc.		1,718		336,797
Cardinal Health Inc.		3,229		217,828
Centene Corp.a		2,763		245,493
Cigna Corp.		1,804		328,436
Henry Schein Inc.a		1,187		206,158
Humana Inc.		1,175		302,704
Laboratory Corp. of America Holdingsa		1,516		237,815
MEDNAX Inc.a		1,784		80,012
Patterson Companies Inc.		2,409		92,747
Quest Diagnostics Inc.		2,004		217,133
UnitedHealth Group Inc.		1,779		353,843
Universal Health Services Inc. Class B		1,695		183,280
VCA Inc.a		2,089		194,194
				2,996,440
HEALTH CARE TECHNOLOGY — 2.01%
Veeva Systems Inc. Class Aa		3,067		182,487
				182,487
LIFE SCIENCES TOOLS & SERVICES — 8.07%
Agilent Technologies Inc.		3,959		256,226
Mettler-Toledo International Inc.a		377		228,119
Thermo Fisher Scientific Inc.		147		27,510

Security	Shares		Value
Waters Corp.a		1,203	$	220,726
				732,581
PHARMACEUTICALS — 20.97%
Allergan PLC		190		43,601
Bristol-Myers Squibb Co.		1,665		100,699
Eli Lilly & Co.		675		54,871
Johnson & Johnson		7,303		966,698
Merck & Co. Inc.		5,252		335,393
Pfizer Inc.		11,842		401,681
				1,902,943
TOTAL COMMON STOCKS
(Cost: $8,411,425)				9,060,747
SHORT-TERM INVESTMENTS — 0.06%
MONEY MARKET FUNDS — 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		5,138		5,138
				5,138
TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,138)				5,138
TOTAL INVESTMENTS IN SECURITIES — 99.92%
(Cost: $8,416,563)d				9,065,885
Other Assets, Less Liabilities — 0.08%				7,013
NET ASSETS — 100.00%			$	9,072,898

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $8,440,407. Net unrealized appreciation was $625,478, of which $687,110 represented gross unrealized appreciation on investments and $61,632 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR HEALTHCARE ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		—		5,138b		—		5,138	$	5,138	$	—	$	—	$	16

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 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	$	9,060,747	$	—	$	—	$	9,060,747
Money market funds		5,138		—		—		5,138
Total	$	9,065,885	$	—	$	—	$	9,065,885

See notes to financial statements.

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR INDUSTRIALS ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.58%
AEROSPACE & DEFENSE — 16.59%
Boeing Co. (The)		488	$	116,954
General Dynamics Corp.		62		12,484
Huntington Ingalls Industries Inc.		361		77,240
L3 Technologies Inc.		465		84,388
Lockheed Martin Corp.		151		46,114
Raytheon Co.		42		7,644
Textron Inc.		1,625		79,771
United Technologies Corp.		586		70,156
				494,751
AIR FREIGHT & LOGISTICS — 6.61%
CH Robinson Worldwide Inc.		934		65,968
Expeditors International of Washington Inc.		1,351		75,791
FedEx Corp.		46		9,862
United Parcel Service Inc. Class B		398		45,515
				197,136
AIRLINES — 3.90%
Southwest Airlines Co.		1,213		63,246
United Continental Holdings Inc.a		854		52,914
				116,160
BUILDING PRODUCTS — 3.29%
AO Smith Corp.		488		27,177
Fortune Brands Home & Security Inc.		1,132		70,784
				97,961
COMMERCIAL SERVICES & SUPPLIES — 10.50%
Cintas Corp.		604		81,546
Republic Services Inc.		1,275		83,181
Rollins Inc.		1,365		60,619
Waste Connections Inc.		1,314		87,631
				312,977
CONSTRUCTION & ENGINEERING — 4.20%
Fluor Corp.		1,460		56,312
Jacobs Engineering Group Inc.		1,264		68,876
				125,188
ELECTRICAL EQUIPMENT — 3.29%
Eaton Corp. PLC		1,369		98,239
				98,239
INDUSTRIAL CONGLOMERATES — 14.56%
3M Co.		533		108,902
General Electric Co.		10,063		247,047
Honeywell International Inc.		564		77,984
				433,933

Security	Shares		Value
MACHINERY — 14.46%
AGCO Corp.		894	$	61,194
Caterpillar Inc.		249		29,255
Cummins Inc.		597		95,150
Illinois Tool Works Inc.		10		1,375
Parker-Hannifin Corp.		555		89,294
Snap-on Inc.		431		63,603
Stanley Black & Decker Inc.		634		91,296
				431,167
PROFESSIONAL SERVICES — 7.07%
IHS Markit Ltd.a		1,532		71,759
ManpowerGroup Inc.		663		73,931
Robert Half International Inc.		1,434		64,960
				210,650
ROAD & RAIL — 12.56%
AMERCO		94		35,082
CSX Corp.		1,455		73,041
JB Hunt Transport Services Inc.		725		71,695
Kansas City Southern		213		22,031
Norfolk Southern Corp.		916		110,396
Union Pacific Corp.		590		62,127
				374,372
TRADING COMPANIES & DISTRIBUTORS — 2.55%
United Rentals Inc.a		645		76,149
				76,149
TOTAL COMMON STOCKS
(Cost: $2,646,818)				2,968,683
SHORT-TERM INVESTMENTS — 0.19%
MONEY MARKET FUNDS — 0.19%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		5,623		5,623
				5,623
TOTAL SHORT-TERM INVESTMENTS
(Cost: $5,623)				5,623

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR INDUSTRIALS ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 99.77%
(Cost: $2,652,441)d	$	2,974,306
Other Assets, Less Liabilities — 0.23%		6,894
NET ASSETS — 100.00%	$	2,981,200

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,653,548. Net unrealized appreciation was $320,758, of which $418,003 represented gross unrealized appreciation on investments and $97,245 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		4,328		1,295b		—		5,623	$	5,623	$	—	$	—	$	23

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 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	$	2,968,683	$	—	$	—	$	2,968,683
Money market funds		5,623		—		—		5,623
Total	$	2,974,306	$	—	$	—	$	2,974,306

See notes to financial statements.

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR MATERIALS ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.86%
CHEMICALS — 70.69%
Air Products & Chemicals Inc.		914	$	132,868
Albemarle Corp.		1,630		189,504
Celanese Corp. Series A		2,086		202,384
Dow Chemical Co. (The)		7,909		527,135
Eastman Chemical Co.		2,206		190,157
Ecolab Inc.		1,158		154,361
EI du Pont de Nemours & Co.		4,999		419,566
International Flavors & Fragrances Inc.		1,243		170,105
LyondellBasell Industries NV Class A		3,566		323,044
Monsanto Co.		2,345		274,834
Mosaic Co. (The)		6,235		124,575
PPG Industries Inc.		978		102,025
Praxair Inc.		1,332		175,211
Sherwin-Williams Co. (The)		874		296,522
				3,282,291
CONSTRUCTION MATERIALS — 4.45%
Martin Marietta Materials Inc.		849		179,980
Vulcan Materials Co.		221		26,798
				206,778
CONTAINERS & PACKAGING — 12.97%
Avery Dennison Corp.		1,740		164,013
Ball Corp.		93		3,719
International Paper Co.		1,001		53,924
Packaging Corp. of America		1,591		178,844
WestRock Co.		3,541		201,518
				602,018

Security	Shares		Value
METALS & MINING — 11.75%
Freeport-McMoRan Inc.a		2,021	$	29,870
Newmont Mining Corp.		4,930		189,016
Nucor Corp.		3,179		175,195
Steel Dynamics Inc.		4,395		151,408
				545,489
TOTAL COMMON STOCKS
(Cost: $4,347,768)				4,636,576
SHORT-TERM INVESTMENTS — 0.19%
MONEY MARKET FUNDS — 0.19%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		9,030		9,030
				9,030
TOTAL SHORT-TERM INVESTMENTS
(Cost: $9,030)				9,030
TOTAL INVESTMENTS IN SECURITIES — 100.05%
(Cost: $4,356,798)d				4,645,606
Other Assets, Less Liabilities — (0.05)%				(2,509	)
NET ASSETS — 100.00%			$	4,643,097

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $4,357,056. Net unrealized appreciation was $288,550, of which $310,098 represented gross unrealized appreciation on investments and $21,548 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		2,596		6,434b		—		9,030	$	9,030	$	—	$	—	$	32

^a  Includes realized capital gain distributionsfrom an affiliated fund, if any.

^b  Net of shares purchased and sold.

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR MATERIALS ETF

August 31, 2017

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 August 31, 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	$	4,636,576	$	—	$	—	$	4,636,576
Money market funds		9,030		—		—		9,030
Total	$	4,645,606	$	—	$	—	$	4,645,606

See notes to financial statements.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR TECHNOLOGY ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.77%
COMMUNICATIONS EQUIPMENT — 6.12%
Arista Networks Inc.a		325	$	57,249
Cisco Systems Inc.		1,288		41,488
F5 Networks Inc.a		456		54,437
Juniper Networks Inc.		2,632		72,985
				226,159
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 9.87%
Arrow Electronics Inc.a		626		49,723
Avnet Inc.		907		34,983
Corning Inc.		3,056		87,890
Flex Ltd.a		3,766		61,273
FLIR Systems Inc.		959		36,442
TE Connectivity Ltd.		1,185		94,326
				364,637
INTERNET SOFTWARE & SERVICES — 12.66%
Alphabet Inc. Class Aa		135		128,957
Alphabet Inc. Class Ca		144		135,263
Facebook Inc. Class Aa		1,182		203,269
				467,489
IT SERVICES — 12.83%
Accenture PLC Class A		1,010		132,068
Broadridge Financial Solutions Inc.		832		65,004
DXC Technology Co.		343		29,155
International Business Machines Corp.		176		25,173
Jack Henry & Associates Inc.		546		56,276
Leidos Holdings Inc.		1,006		58,670
MasterCard Inc. Class A		77		10,264
Paychex Inc.		700		39,921
Visa Inc. Class A		553		57,247
				473,778
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 13.41%
Applied Materials Inc.		2,343		105,716
Intel Corp.		1,356		47,555
Lam Research Corp.		569		94,443
Maxim Integrated Products Inc.		1,688		78,762
Micron Technology Inc.a		3,246		103,774
Qorvo Inc.a		890		65,166
				495,416
SOFTWARE — 24.49%
ANSYS Inc.a		601		77,421
CA Inc.		2,206		73,195

Security	Shares		Value
Cadence Design Systems Inc.a		1,962	$	77,087
Citrix Systems Inc.a		953		74,534
Dell Technologies Inc. Class Va		1,227		91,939
Microsoft Corp.		4,127		308,576
Nuance Communications Inc.a		2,052		32,975
Oracle Corp.		590		29,695
Synopsys Inc.a		1,059		85,165
VMware Inc. Class Aa,b		497		53,726
				904,313
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 20.39%
Apple Inc.		3,231		529,884
Hewlett Packard Enterprise Co.		4,936		89,144
NetApp Inc.		1,938		74,923
Seagate Technology PLC		315		9,932
Xerox Corp.		1,520		49,051
				752,934
TOTAL COMMON STOCKS
(Cost: $2,851,664)				3,684,726
SHORT-TERM INVESTMENTS — 1.59%
MONEY MARKET FUNDS — 1.59%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%c,d,e		54,390		54,406
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		4,522		4,522
				58,928
TOTAL SHORT-TERM INVESTMENTS
(Cost: $58,928)				58,928
TOTAL INVESTMENTS IN SECURITIES — 101.36%
(Cost: $2,910,592)f				3,743,654
Other Assets, Less Liabilities — (1.36)%				(50,352	)
NET ASSETS — 100.00%			$	3,693,302

^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  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 (including short positions and derivatives, if any) for federal income tax purposes was $2,910,846. Net unrealized appreciation was $832,808, of which $852,102 represented gross unrealized appreciation on investments and $19,294 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR TECHNOLOGY ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		41,616		12,774	b		—			54,390	$	54,406	$	(2	)	$	—	$	—c
BlackRock Cash Funds: Treasury, SL Agency Shares		6,136		—			(1,614	)b		4,522		4,522		—			—		21
											$	58,928	$	(2	)	$	—	$	21

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investments of securities lending cash collateral which is not direct income of the Fund. and is reflected as a component of securities lending income in the statement of operation.

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 August 31, 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	$	3,684,726	$	—	$	—	$	3,684,726
Money market funds		58,928		—		—		58,928
Total	$	3,743,654	$	—	$	—	$	3,743,654

See notes to financial statements.

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR UTILITIES ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.58%
ELECTRIC UTILITIES — 63.97%
Alliant Energy Corp.		3,121	$	133,392
American Electric Power Co. Inc.		2,781		204,765
Duke Energy Corp.		3,148		274,820
Edison International		2,418		193,875
Entergy Corp.		17		1,346
Eversource Energy		3,185		200,655
Exelon Corp.		7,695		291,410
NextEra Energy Inc.		2,161		325,252
OGE Energy Corp.		3,509		125,341
PG&E Corp.		1,773		124,784
Pinnacle West Capital Corp.		1,599		143,862
PPL Corp.		1,967		77,185
Southern Co. (The)		4,225		203,899
Westar Energy Inc.		2,377		121,964
Xcel Energy Inc.		4,709		233,095
				2,655,645
GAS UTILITIES — 6.59%
Atmos Energy Corp.		1,604		141,216
UGI Corp.		2,678		132,320
				273,536
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 2.93%
AES Corp./VA		11,024		121,705
				121,705
MULTI-UTILITIES — 26.09%
Ameren Corp.		2,858		171,451
Consolidated Edison Inc.		2,780		234,271

Security	Shares		Value
Dominion Energy Inc.		2,674	$	210,631
DTE Energy Co.		312		35,044
Public Service Enterprise Group Inc.		4,777		223,755
SCANA Corp.		1,494		90,208
Sempra Energy		687		81,018
WEC Energy Group Inc.		565		36,849
				1,083,227
TOTAL COMMON STOCKS
(Cost: $4,003,888)				4,134,113
SHORT-TERM INVESTMENTS — 0.05%
MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		2,054		2,054
				2,054
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,054)				2,054
TOTAL INVESTMENTS IN SECURITIES — 99.63%
(Cost: $4,005,942)c				4,136,167
Other Assets, Less Liabilities — 0.37%				15,385
NET ASSETS — 100.00%			$	4,151,552

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $4,011,363. Net unrealized appreciation was $124,804, of which $157,810 represented gross unrealized appreciation on investments and $33,006 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		3,777		—		(1,723	)b		2,054	$	2,054	$	—	$	—	$	24

^a  Includes realized capital gain distributionsfrom an affiliated fund, if any.

^b  Net of shares purchased and sold.

SCHEDULES OF INVESTMENTS 41

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR UTILITIES ETF

August 31, 2017

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 August 31, 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	$	4,134,113	$	—	$	—	$	4,134,113
Money market funds		2,054		—		—		2,054
Total	$	4,136,167	$	—	$	—	$	4,136,167

See notes to financial statements.

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

August 31, 2017

	iShares Edge MSCI Multifactor Consumer Discretionary ETF			iShares Edge MSCI Multifactor Consumer Staples ETF			iShares Edge MSCI Multifactor Energy ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	2,676,690		$	2,599,171		$	2,555,877
Affiliated (Note 2)		16,622			1,864			32,686
Total cost of investments in securities	$	2,693,312		$	2,601,035		$	2,588,563
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	2,752,498		$	2,494,912		$	2,366,751
Affiliated (Note 2)		16,622			1,864			32,686
Receivables:
Dividends and interest		3,242			6,228			15,259
Total Assets		2,772,362			2,503,004			2,414,696
LIABILITIES
Payables:
Collateral for securities on loan (Note 1)		15,248			—			29,413
Investment advisory fees (Note 2)		824			754			715
Total Liabilities		16,072			754			30,128
NET ASSETS	$	2,756,290		$	2,502,250		$	2,384,568
Net assets consist of:
Paid-in capital	$	2,696,831		$	2,609,796		$	2,564,672
Undistributed net investment income		4,278			9,294			15,865
Accumulated net realized loss		(20,627	)		(12,581	)		(6,843	)
Net unrealized appreciation (depreciation)		75,808			(104,259	)		(189,126	)
NET ASSETS	$	2,756,290		$	2,502,250		$	2,384,568
Shares outstandingb		100,000			100,000			100,000
Net asset value per share	$	27.56		$	25.02		$	23.85

^a  Securities on loan with values of $15,145, $  — and $29,507, respectively. See Note 1.

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

See notes to financial statements.

FINANCIAL STATEMENTS 43

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares Edge MSCI Multifactor Financials ETF		iShares Edge MSCI Multifactor Healthcare ETF		iShares Edge MSCI Multifactor Industrials ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	2,654,365	$	8,411,425	$	2,646,818
Affiliated (Note 2)		8,924		5,138		5,623
Total cost of investments in securities	$	2,663,289	$	8,416,563	$	2,652,441
Investments in securities, at fair value (Note 1):
Unaffiliated	$	3,188,058	$	9,060,747	$	2,968,683
Affiliated (Note 2)		8,924		5,138		5,623
Receivables:
Dividends and interest		4,396		8,570		7,770
Total Assets		3,201,378		9,074,455		2,982,076
LIABILITIES
Payables:
Investment securities purchased		8,808		—		—
Investment advisory fees (Note 2)		963		1,557		876
Total Liabilities		9,771		1,557		876
NET ASSETS	$	3,191,607	$	9,072,898	$	2,981,200
Net assets consist of:
Paid-in capital	$	2,533,479	$	8,410,145	$	2,533,796
Undistributed net investment income		9,208		8,556		8,114
Undistributed net realized gain		115,227		4,875		117,425
Net unrealized appreciation		533,693		649,322		321,865
NET ASSETS	$	3,191,607	$	9,072,898	$	2,981,200
Shares outstandinga		100,000		300,000		100,000
Net asset value per share	$	31.92	$	30.24	$	29.81

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

See notes to financial statements.

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares Edge MSCI Multifactor Materials ETF		iShares Edge MSCI Multifactor Technology ETF		iShares Edge MSCI Multifactor Utilities ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	4,347,768	$	2,851,664	$	4,003,888
Affiliated (Note 2)		9,030		58,928		2,054
Total cost of investments in securities	$	4,356,798	$	2,910,592	$	4,005,942
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	4,636,576	$	3,684,726	$	4,134,113
Affiliated (Note 2)		9,030		58,928		2,054
Receivables:
Dividends and interest		5,204		5,136		16,464
Capital shares sold		5,910		—		—
Total Assets		4,656,720		3,748,790		4,152,631
LIABILITIES
Payables:
Investment securities purchased		12,702		—		—
Collateral for securities on loan (Note 1)		—		54,422		—
Investment advisory fees (Note 2)		921		1,066		1,079
Total Liabilities		13,623		55,488		1,079
NET ASSETS	$	4,643,097	$	3,693,302	$	4,151,552
Net assets consist of:
Paid-in capital	$	4,319,696	$	2,531,926	$	4,008,258
Undistributed net investment income		9,831		6,102		18,490
Undistributed net realized gain (accumulated net realized loss)		24,762		322,212		(5,421	)
Net unrealized appreciation		288,808		833,062		130,225
NET ASSETS	$	4,643,097	$	3,693,302	$	4,151,552
Shares outstandingb		150,000		100,000		150,000
Net asset value per share	$	30.95	$	36.93	$	27.68

^a  Securities on loan with values of $  —, $53,726 and $  —-, respectively. See Note 1.

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

See notes to financial statements.

FINANCIAL STATEMENTS 45

Statements of Operations

iSHARES^® TRUST

Year ended August 31, 2017

	iShares Edge MSCI Multifactor Consumer Discretionary ETF			iShares Edge MSCI Multifactor Consumer Staples ETF			iShares Edge MSCI Multifactor Energy ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	45,886		$	64,737		$	75,087
Dividends — affiliated (Note 2)		28			34			15
Securities lending income — affiliated — net (Note 2)		166			76			160
Total investment income		46,080			64,847			75,262
EXPENSES
Investment advisory fees (Note 2)		9,468			8,761			9,036
Proxy fees		61			55			54
Total expenses		9,529			8,816			9,090
Net investment income		36,551			56,031			66,172
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(13,955	)		(10,887	)		263
Investments — affiliated (Note 2)		18			—			20
In-kind redemptions — unaffiliated		174,883			75,887			62,360
Net realized gain		160,946			65,000			62,643
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		(5,942	)		(119,048	)		(218,567	)
Net change in unrealized appreciation/depreciation		(5,942	)		(119,048	)		(218,567	)
Net realized and unrealized gain (loss)		155,004			(54,048	)		(155,924	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	191,555		$	1,983		$	(89,752	)

See notes to financial statements.

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares Edge MSCI Multifactor Financials ETF			iShares Edge MSCI Multifactor Healthcare ETF		iShares Edge MSCI Multifactor Industrials ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	54,531		$	39,073	$	53,879
Dividends — affiliated (Note 2)		27			16		23
Securities lending income — affiliated — net (Note 2)		2			41		4
Total investment income		54,560			39,130		53,906
EXPENSES
Investment advisory fees (Note 2)		10,549			10,217		9,948
Proxy fees		67			61		64
Total expenses		10,616			10,278		10,012
Net investment income		43,944			28,852		43,894
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		115,798			5,288		135,408
Investments — affiliated (Note 2)		(3	)		—		—
Net realized gain		115,795			5,288		135,408
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		408,871			564,671		245,876
Net change in unrealized appreciation/depreciation		408,871			564,671		245,876
Net realized and unrealized gain		524,666			569,959		381,284
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	568,610		$	598,811	$	425,178

^a  Net of foreign withholding tax of $  —, $  — and $63, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 47

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares Edge MSCI Multifactor Materials ETF		iShares Edge MSCI Multifactor Technology ETF			iShares Edge MSCI Multifactor Utilities ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	64,095	$	44,567		$	94,003
Dividends — affiliated (Note 2)		32		21			24
Securities lending income — affiliated — net (Note 2)		—		404			—
Total investment income		64,127		44,992			94,027
EXPENSES
Investment advisory fees (Note 2)		10,068		11,396			9,329
Proxy fees		64		75			57
Total expenses		10,132		11,471			9,386
Net investment income		53,995		33,521			84,641
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		52,928		322,224			(3,657	)
Investments — affiliated (Note 2)		—		(2	)		—
In-kind redemptions — unaffiliated		249,608		—			128,346
Net realized gain		302,536		322,222			124,689
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		149,284		519,846			122,974
Net change in unrealized appreciation/depreciation		149,284		519,846			122,974
Net realized and unrealized gain		451,820		842,068			247,663
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	505,815	$	875,589		$	332,304

See notes to financial statements.

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Edge MSCI Multifactor Consumer Discretionary ETF						iShares Edge MSCI Multifactor Consumer Staples ETF
	Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016			Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	36,551		$	14,055		$	56,031		$	17,224
Net realized gain (loss)		160,946			(11,180	)		65,000			(4,743	)
Net change in unrealized appreciation/depreciation		(5,942	)		81,750			(119,048	)		14,789
Net increase in net assets resulting from operations		191,555			84,625			1,983			27,270
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(39,121	)		(7,207	)		(57,018	)		(6,943	)
Total distributions to shareholders		(39,121	)		(7,207	)		(57,018	)		(6,943	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,384,928			2,526,438			1,269,634			2,536,958
Cost of shares redeemed		(1,384,928	)		—			(1,269,634	)		—
Net increase in net assets from capital share transactions		—			2,526,438			—			2,536,958
INCREASE (DECREASE) IN NET ASSETS		152,434			2,603,856			(55,035	)		2,557,285
NET ASSETS
Beginning of period		2,603,856			—			2,557,285			—
End of period	$	2,756,290		$	2,603,856		$	2,502,250		$	2,557,285
Undistributed net investment income included in net assets at end of period	$	4,278		$	6,848		$	9,294		$	10,281
SHARES ISSUED AND REDEEMED
Shares sold		50,000			100,000			50,000			100,000
Shares redeemed		(50,000	)		—			(50,000	)		—
Net increase in shares outstanding		—			100,000			—			100,000

^a  Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 49

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Edge MSCI Multifactor Energy ETF						iShares Edge MSCI Multifactor Financials ETF
	Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016			Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	66,172		$	33,050		$	43,944		$	13,949
Net realized gain (loss)		62,643			(8,182	)		115,795			7,524
Net change in unrealized appreciation/depreciation		(218,567	)		29,441			408,871			124,822
Net increase (decrease) in net assets resulting from operations		(89,752	)		54,309			568,610			146,295
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(66,341	)		(17,016	)		(42,435	)		(6,250	)
From net realized gain		—			—			(8,092	)		—
Total distributions to shareholders		(66,341	)		(17,016	)		(50,527	)		(6,250	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,209,222			2,503,368			—			2,533,479
Cost of shares redeemed		(1,209,222	)		—			—			—
Net increase in net assets from capital share transactions		—			2,503,368			—			2,533,479
INCREASE (DECREASE) IN NET ASSETS		(156,093	)		2,540,661			518,083			2,673,524
NET ASSETS
Beginning of period		2,540,661			—			2,673,524			—
End of period	$	2,384,568		$	2,540,661		$	3,191,607		$	2,673,524
Undistributed net investment income included in net assets at end of period	$	15,865		$	16,034		$	9,208		$	7,699
SHARES ISSUED AND REDEEMED
Shares sold		50,000			100,000			—			100,000
Shares redeemed		(50,000	)		—			—			—
Net increase in shares outstanding		—			100,000			—			100,000

^a  Commencement of operations.

See notes to financial statements.

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Edge MSCI Multifactor Healthcare ETF						iShares Edge MSCI Multifactor Industrials ETF
	Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016			Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	28,852		$	9,261		$	43,894		$	18,154
Net realized gain (loss)		5,288			14,204			135,408			(17,983	)
Net change in unrealized appreciation/depreciation		564,671			84,651			245,876			75,989
Net increase in net assets resulting from operations		598,811			108,116			425,178			76,160
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(24,710	)		(4,847	)		(42,976	)		(10,958	)
From net realized gain		(14,617	)		—			—			—
Total distributions to shareholders		(39,327	)		(4,847	)		(42,976	)		(10,958	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		5,868,890			2,541,255			—			2,533,796
Net increase in net assets from capital share transactions		5,868,890			2,541,255			—			2,533,796
INCREASE IN NET ASSETS		6,428,374			2,644,524			382,202			2,598,998
NET ASSETS
Beginning of period		2,644,524			—			2,598,998			—
End of period	$	9,072,898		$	2,644,524		$	2,981,200		$	2,598,998
Undistributed net investment income included in net assets at end of period	$	8,556		$	4,414		$	8,114		$	7,196
SHARES ISSUED
Shares sold		200,000			100,000			—			100,000
Net increase in shares outstanding		200,000			100,000			—			100,000

^a  Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 51

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Edge MSCI Multifactor Materials ETF						iShares Edge MSCI Multifactor Technology ETF
	Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016			Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	53,995		$	18,386		$	33,521		$	10,562
Net realized gain (loss)		302,536			(7,551	)		322,222			38,836
Net change in unrealized appreciation/depreciation		149,284			139,524			519,846			313,216
Net increase in net assets resulting from operations		505,815			150,359			875,589			362,614
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(54,305	)		(8,245	)		(34,236	)		(3,745	)
From net realized gain		—			—			(38,846	)		—
Total distributions to shareholders		(54,305	)		(8,245	)		(73,082	)		(3,745	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,032,744			2,526,402			—			2,531,926
Cost of shares redeemed		(1,509,673	)		—			—			—
Net increase in net assets from capital share transactions		1,523,071			2,526,402			—			2,531,926
INCREASE IN NET ASSETS		1,974,581			2,668,516			802,507			2,890,795
NET ASSETS
Beginning of period		2,668,516			—			2,890,795			—
End of period	$	4,643,097		$	2,668,516		$	3,693,302		$	2,890,795
Undistributed net investment income included in net assets at end of period	$	9,831		$	10,141		$	6,102		$	6,817
SHARES ISSUED AND REDEEMED
Shares sold		100,000			100,000			—			100,000
Shares redeemed		(50,000	)		—			—			—
Net increase in shares outstanding		50,000			100,000			—			100,000

^a  Commencement of operations.

See notes to financial statements.

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Edge MSCI Multifactor Utilities ETF
	Year ended August 31, 2017			Period from May 10, 2016a to August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	84,641		$	27,626
Net realized gain		124,689			860
Net change in unrealized appreciation/depreciation		122,974			7,251
Net increase in net assets resulting from operations		332,304			35,737
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(80,719	)		(13,058	)
Total distributions to shareholders		(80,719	)		(13,058	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,729,560			2,512,508
Cost of shares redeemed		(1,364,780	)		—
Net increase in net assets from capital share transactions		1,364,780			2,512,508
INCREASE IN NET ASSETS		1,616,365			2,535,187
NET ASSETS
Beginning of period		2,535,187			—
End of period	$	4,151,552		$	2,535,187
Undistributed net investment income included in net assets at end of period	$	18,490		$	14,568
SHARES ISSUED AND REDEEMED
Shares sold		100,000			100,000
Shares redeemed		(50,000	)		—
Net increase in shares outstanding		50,000			100,000

^a  Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 53

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Consumer  Discretionary ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	26.04		$	25.26
Income from investment operations:
Net investment incomeb		0.37			0.14
Net realized and unrealized gainc		1.54			0.71
Total from investment operations		1.91			0.85
Less distributions from:
Net investment income		(0.39	)		(0.07	)
Total distributions		(0.39	)		(0.07	)
Net asset value, end of period	$	27.56		$	26.04
Total return		7.41	%		3.39	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,756		$	2,604
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		1.35	%		1.81	%
Portfolio turnover ratef		41	%		22	%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.

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Consumer Staples  ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	25.57		$	25.37
Income from investment operations:
Net investment incomeb		0.56			0.17
Net realized and unrealized gain (loss)c		(0.54	)		0.10
Total from investment operations		0.02			0.27
Less distributions from:
Net investment income		(0.57	)		(0.07	)
Total distributions		(0.57	)		(0.07	)
Net asset value, end of period	$	25.02		$	25.57
Total return		0.11	%		1.07	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,502		$	2,557
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		2.24	%		2.19	%
Portfolio turnover ratef		32	%		18	%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 55

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Energy  ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	25.41		$	25.03
Income from investment operations:
Net investment incomeb		0.66			0.33
Net realized and unrealized gain (loss)c		(1.56	)		0.22
Total from investment operations		(0.90	)		0.55
Less distributions from:
Net investment income		(0.66	)		(0.17	)
Total distributions		(0.66	)		(0.17	)
Net asset value, end of period	$	23.85		$	25.41
Total return		(3.68	)%		2.19	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,385		$	2,541
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		2.56	%		4.20	%
Portfolio turnover ratef		39	%		29	%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.

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Financials  ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	26.74		$	25.33
Income from investment operations:
Net investment incomeb		0.44			0.14
Net realized and unrealized gainc		5.25			1.33
Total from investment operations		5.69			1.47
Less distributions from:
Net investment income		(0.43	)		(0.06	)
Net realized gain		(0.08	)		—
Total distributions		(0.51	)		(0.06	)
Net asset value, end of period	$	31.92		$	26.74
Total return		21.43	%		5.83	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,192		$	2,674
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		1.46	%		1.77	%
Portfolio turnover ratef		42	%		28	%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 57

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Healthcare  ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	26.45		$	25.41
Income from investment operations:
Net investment incomeb		0.27			0.09
Net realized and unrealized gainc		3.91			1.00
Total from investment operations		4.18			1.09
Less distributions from:
Net investment income		(0.24	)		(0.05	)
Net realized gain		(0.15	)		—
Total distributions		(0.39	)		(0.05	)
Net asset value, end of period	$	30.24		$	26.45
Total return		16.05	%		4.29	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	9,073		$	2,645
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		0.99	%		1.14	%
Portfolio turnover ratef		31	%		20	%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.

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Industrials  ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	25.99		$	25.34
Income from investment operations:
Net investment incomeb		0.44			0.18
Net realized and unrealized gainc		3.81			0.58
Total from investment operations		4.25			0.76
Less distributions from:
Net investment income		(0.43	)		(0.11	)
Total distributions		(0.43	)		(0.11	)
Net asset value, end of period	$	29.81		$	25.99
Total return		16.46	%		3.01	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,981		$	2,599
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		1.54	%		2.31	%
Portfolio turnover ratef		41	%		26	%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 59

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Materials  ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	26.69		$	25.26
Income from investment operations:
Net investment incomeb		0.54			0.18
Net realized and unrealized gainc		4.26			1.33
Total from investment operations		4.80			1.51
Less distributions from:
Net investment income		(0.54	)		(0.08	)
Total distributions		(0.54	)		(0.08	)
Net asset value, end of period	$	30.95		$	26.69
Total return		18.22	%		6.00	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,643		$	2,669
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		1.88	%		2.28	%
Portfolio turnover ratef		21	%		26	%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.

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Technology  ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	28.91		$	25.32
Income from investment operations:
Net investment incomeb		0.34			0.11
Net realized and unrealized gainc		8.41			3.52
Total from investment operations		8.75			3.63
Less distributions from:
Net investment income		(0.34	)		(0.04	)
Net realized gain		(0.39	)		—
Total distributions		(0.73	)		(0.04	)
Net asset value, end of period	$	36.93		$	28.91
Total return		30.76	%		14.34	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,693		$	2,891
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		1.03	%		1.27	%
Portfolio turnover ratef		39	%		20	%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 61

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Multifactor Utilities  ETF

	Year ended Aug. 31, 2017			Period from May 10, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	25.35		$	25.13
Income from investment operations:
Net investment incomeb		0.82			0.28
Net realized and unrealized gainc		2.32			0.07
Total from investment operations		3.14			0.35
Less distributions from:
Net investment income		(0.81	)		(0.13	)
Total distributions		(0.81	)		(0.13	)
Net asset value, end of period	$	27.68		$	25.35
Total return		12.60	%		1.39	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	4,152		$	2,535
Ratio of expenses to average net assetse		0.35	%		0.35	%
Ratio of net investment income to average net assetse		3.18	%		3.45	%
Portfolio turnover ratef		20	%		21	%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.

62 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
Edge MSCI Multifactor Consumer Discretionary		Non-diversified
Edge MSCI Multifactor Consumer Staples		Non-diversified
Edge MSCI Multifactor Energy		Non-diversified
Edge MSCI Multifactor Financials		Non-diversified
Edge MSCI Multifactor Healthcare		Non-diversified

iShares ETF	Diversification Classification
Edge MSCI Multifactor Industrials		Non-diversified
Edge MSCI Multifactor Materials		Non-diversified
Edge MSCI Multifactor Technology		Non-diversified
Edge MSCI Multifactor 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”).

NOTES TO FINANCIAL STATEMENTS 63

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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 to valuation techniques are categorized into a fair value 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.

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an

NOTES TO FINANCIAL STATEMENTS 65

Notes to Financial Statements (Continued)

iSHARES^® TRUST

investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original 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 August 31, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
Edge MSCI Multifactor Consumer Discretionary
HSBC Bank PLC	$	15,145	$	15,145	$	—
Edge MSCI Multifactor Energy
JPMorgan Securities LLC	$	29,507	$	29,413	$	(94	)
Edge MSCI Multifactor Technology
JPMorgan Securities LLC	$	53,726	$	53,726	$	—

^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.

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 Fund, BFA is entitled to an annual investment advisory fee of 0.35%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund.

The U.S. Securities and Exchange Commission 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

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Edge MSCI Multifactor Consumer Discretionary	$	63
Edge MSCI Multifactor Consumer Staples		26
Edge MSCI Multifactor Energy		78
Edge MSCI Multifactor Financials		1
Edge MSCI Multifactor Healthcare		21
Edge MSCI Multifactor Industrials		2
Edge MSCI Multifactor Technology		174

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 August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
Edge MSCI Multifactor Consumer Discretionary	$	198,585	$	559,883
Edge MSCI Multifactor Consumer Staples		223,179		154,139
Edge MSCI Multifactor Energy		303,139		286,909
Edge MSCI Multifactor Financials		248,558		428,133
Edge MSCI Multifactor Healthcare		410,667		498,921
Edge MSCI Multifactor Industrials		304,017		314,985
Edge MSCI Multifactor Materials		208,396		311,015
Edge MSCI Multifactor Technology		269,300		627,280
Edge MSCI Multifactor Utilities		238,099		213,032

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.

NOTES TO FINANCIAL STATEMENTS 67

Notes to Financial Statements (Continued)

iSHARES^® TRUST

It is possible that, from time to time, BlackRock and/or funds or other accounts managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of August 31, 2017, the number of affiliated accounts that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:

iShares ETF	Number of Affiliated Accounts		Aggregate Affiliated Ownership Percentage
Edge MSCI Multifactor Consumer Discretionary		1		50	%
Edge MSCI Multifactor Consumer Staples		1		50	%
Edge MSCI Multifactor Energy		1		50	%
Edge MSCI Multifactor Materials		1		33	%
Edge MSCI Multifactor Utilities		1		67	%

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 August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
Edge MSCI Multifactor Consumer Discretionary	$	1,103,027	$	1,102,388
Edge MSCI Multifactor Consumer Staples		802,395		804,904
Edge MSCI Multifactor Energy		995,395		993,941
Edge MSCI Multifactor Financials		1,251,449		1,258,506
Edge MSCI Multifactor Healthcare		980,840		998,692
Edge MSCI Multifactor Industrials		1,162,636		1,163,078
Edge MSCI Multifactor Materials		640,899		632,983
Edge MSCI Multifactor Technology		1,251,386		1,290,102
Edge MSCI Multifactor Utilities		529,730		529,314

68 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Edge MSCI Multifactor Consumer Discretionary	$	1,383,118	$	1,383,118
Edge MSCI Multifactor Consumer Staples		1,267,025		1,267,025
Edge MSCI Multifactor Energy		1,204,244		1,204,244
Edge MSCI Multifactor Healthcare		5,864,859		—
Edge MSCI Multifactor Materials		3,021,063		1,503,901
Edge MSCI Multifactor Utilities		2,726,530		1,363,265

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 invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 69

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.

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 August 31, 2017, attributable to the use of equalization 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
Edge MSCI Multifactor Consumer Discretionary	$	170,393	$	—	$	(170,393	)
Edge MSCI Multifactor Consumer Staples		72,838		—		(72,838	)
Edge MSCI Multifactor Energy		61,304		—		(61,304	)
Edge MSCI Multifactor Materials		270,223		—		(270,223	)
Edge MSCI Multifactor Utilities		130,970		—		(130,970	)

70 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
Edge MSCI Multifactor Consumer Discretionary
Ordinary income	$	39,121	$	7,207
Edge MSCI Multifactor Consumer Staples
Ordinary income	$	57,018	$	6,943
Edge MSCI Multifactor Energy
Ordinary income	$	66,341	$	17,016
Edge MSCI Multifactor Financials
Ordinary income	$	50,527	$	6,250
Edge MSCI Multifactor Healthcare
Ordinary income	$	39,327	$	4,847
Edge MSCI Multifactor Industrials
Ordinary income	$	42,976	$	10,958
Edge MSCI Multifactor Materials
Ordinary income	$	54,305	$	8,245
Edge MSCI Multifactor Technology
Ordinary income	$	73,082	$	3,745
Edge MSCI Multifactor Utilities
Ordinary income	$	80,719	$	13,058

As of August 31, 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			Total
Edge MSCI Multifactor Consumer Discretionary	$	4,278	$	—	$	(20,147	)	$	75,327		$	59,458
Edge MSCI Multifactor Consumer Staples		9,294		—		(11,988	)		(104,852	)		(107,546	)
Edge MSCI Multifactor Energy		15,865		—		(1,767	)		(194,202	)		(180,104	)
Edge MSCI Multifactor Financials		92,167		32,738		—			533,223			658,128
Edge MSCI Multifactor Healthcare		8,556		28,719		—			625,478			662,753
Edge MSCI Multifactor Industrials		79,733		46,913		—			320,758			447,404
Edge MSCI Multifactor Materials		34,851		—		—			288,550			323,401
Edge MSCI Multifactor Technology		150,349		178,219		—			832,808			1,161,376
Edge MSCI Multifactor Utilities		18,490		—		—			124,804			143,294

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

NOTES TO FINANCIAL STATEMENTS 71

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of August 31, 2017, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

iShares ETF	Non- Expiring
Edge MSCI Multifactor Consumer Discretionary	$	20,147
Edge MSCI Multifactor Consumer Staples		11,988
Edge MSCI Multifactor Energy		1,767

For the year ended August 31, 2017, the following Funds utilized their capital loss carryforwards as follows:

iShares ETF	Utilized
Edge MSCI Multifactor Energy	$	1,981
Edge MSCI Multifactor Industrials		16,533
Edge MSCI Multifactor Materials		6,158

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 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 (the “Plaintiffs”) 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 putative 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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

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.

72 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 Edge MSCI Multifactor Consumer Discretionary ETF,

iShares Edge MSCI Multifactor Consumer Staples ETF, iShares Edge MSCI Multifactor Energy ETF,

iShares Edge MSCI Multifactor Financials ETF, iShares Edge MSCI Multifactor Healthcare ETF,

iShares Edge MSCI Multifactor Industrials ETF, iShares Edge MSCI Multifactor Materials ETF,

iShares Edge MSCI Multifactor Technology ETF and iShares Edge MSCI Multifactor 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 Edge MSCI Multifactor Consumer Discretionary ETF, iShares Edge MSCI Multifactor Consumer Staples ETF, iShares Edge MSCI Multifactor Energy ETF, iShares Edge MSCI Multifactor Financials ETF, iShares Edge MSCI Multifactor Healthcare ETF, iShares Edge MSCI Multifactor Industrials ETF, iShares Edge MSCI Multifactor Materials ETF, iShares Edge MSCI Multifactor Technology ETF and iShares Edge MSCI Multifactor Utilities ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 73

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:

iShares ETF	Qualified Dividend Income
Edge MSCI Multifactor Consumer Discretionary	$	45,877
Edge MSCI Multifactor Consumer Staples		64,510
Edge MSCI Multifactor Energy		73,891
Edge MSCI Multifactor Financials		54,203
Edge MSCI Multifactor Healthcare		39,059

iShares ETF	Qualified Dividend Income
Edge MSCI Multifactor Industrials	$	53,937
Edge MSCI Multifactor Materials		64,056
Edge MSCI Multifactor Technology		44,525
Edge MSCI Multifactor Utilities		93,941

For corporate shareholders, the percentage of income dividends paid during the fiscal year ended August 31, 2017 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends- Received Deductions
Edge MSCI Multifactor Consumer Discretionary		100.00	%
Edge MSCI Multifactor Consumer Staples		100.00
Edge MSCI Multifactor Energy		100.00
Edge MSCI Multifactor Financials		39.46
Edge MSCI Multifactor Healthcare		100.00

iShares ETF	Dividends- Received Deductions
Edge MSCI Multifactor Industrials		43.94	%
Edge MSCI Multifactor Materials		73.57
Edge MSCI Multifactor Technology		23.05
Edge MSCI Multifactor Utilities		100.00

The following Funds hereby designate the following amounts as 20% rate long-term capital gain dividends for the fiscal year ended August 31, 2017:

iShares ETF	Long-Term Capital  Gain
Edge MSCI Multifactor Materials	$	12,985
Edge MSCI Multifactor Utilities		2,160

The following Funds hereby designate the following amounts as short-term capital gain dividends for the fiscal year ended August 31, 2017:

iShares ETF	Short-Term Capital Gain
Edge MSCI Multifactor Financials	$	8,092
Edge MSCI Multifactor Healthcare		14,617
Edge MSCI Multifactor Technology		38,846

74 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 75

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Funds to BlackRock, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their

76 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 77

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

78 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.

Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

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
Edge MSCI Multifactor Consumer Discretionary	$	0.391214	$	—	$	—		0.391214		100	%		—	%		—	%		100	%
Edge MSCI Multifactor Consumer Staples		0.570177		—		—		0.570177		100			—			—			100
Edge MSCI Multifactor Financials		0.424351		0.080920		—		0.505271		84			16			—			100
Edge MSCI Multifactor Healthcare		0.247097		0.146170				0.393267		63			37			—			100
Edge MSCI Multifactor Industrials		0.429755		—		—		0.429755		100			—			—			100
Edge MSCI Multifactor Materials		0.543054		—		—		0.543054		100			—			—			100
Edge MSCI Multifactor Utilities		0.807194		—		—		0.807194		100			—			—			100

SUPPLEMENTAL INFORMATION 79

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding 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. Each line in each 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 Edge MSCI Multifactor Consumer Discretionary ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		156		53.98	%
At NAV		18		6.23
Less than 0.0% and Greater than –0.5%		113		39.10
Less than –0.5%		2		0.69
		289		100.00	%

iShares Edge MSCI Multifactor Consumer Staples ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		221		76.47	%
At NAV		23		7.96
Less than 0.0% and Greater than –0.5%		43		14.88
Less than –0.5%		2		0.69
		289		100.00	%

80 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Edge MSCI Multifactor Energy ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		226		78.21	%
At NAV		22		7.61
Less than 0.0% and Greater than –0.5%		39		13.49
Less than –0.5%		2		0.69
		289		100.00	%

iShares Edge MSCI Multifactor Financials ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		209		72.32	%
At NAV		24		8.30
Less than 0.0% and Greater than –0.5%		54		18.69
Less than –0.5%		2		0.69
		289		100.00	%

iShares Edge MSCI Multifactor Healthcare ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		273		94.47	%
At NAV		4		1.38
Less than 0.0% and Greater than –0.5%		10		3.46
Less than –0.5%		2		0.69
		289		100.00	%

iShares Edge MSCI Multifactor Industrials ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		252		87.20	%
At NAV		13		4.50
Less than 0.0% and Greater than –0.5%		22		7.61
Less than –0.5%		2		0.69
		289		100.00	%

SUPPLEMENTAL INFORMATION 81

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Edge MSCI Multifactor Materials ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		240		83.05	%
At NAV		14		4.84
Less than 0.0% and Greater than –0.5%		33		11.42
Less than –0.5%		2		0.69
		289		100.00	%

iShares Edge MSCI Multifactor Technology ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		223		77.16	%
At NAV		18		6.23
Less than 0.0% and Greater than –0.5%		46		15.92
Less than –0.5%		2		0.69
		289		100.00	%

iShares Edge MSCI Multifactor Utilities ETF

Period Covered: May 10, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		247		85.47	%
At NAV		12		4.15
Less than 0.0% and Greater than –0.5%		28		9.69
Less than –0.5%		2		0.69
		289		100.00	%

82 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 344 funds (as of August 31, 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 83

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).	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 (14 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); Equity Plus Committee Chair (since 2017).	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 (62)	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); 15(c) Committee Chair (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).

84 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
John E. Martinez (56)	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).
Madhav V. Rajan (53)	Trustee (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); 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 85

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (42)	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 (55)	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 of 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.

86 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 87

Notes:

88 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 89

Notes:

90 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 MSCI 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-818-0817

AUGUST 31, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares MSCI Denmark Capped ETF  |  EDEN  |  BATS

^Ø  iShares MSCI Finland Capped ETF  |  EFNL  |  BATS

^Ø  iShares MSCI Germany Small-Cap ETF  |  EWGS  |  BATS

^Ø  iShares MSCI Ireland Capped ETF  |  EIRL  |  NYSE Arca

^Ø  iShares MSCI New Zealand Capped ETF  |  ENZL  |  NASDAQ

^Ø  iShares MSCI Norway Capped ETF  |  ENOR  |  BATS

Table of Contents

Management's Discussions of Fund Performance	5
About Fund Performance	18
Shareholder Expenses	18
Schedules of Investments	19
iShares MSCI Denmark Capped ETF	19
iShares MSCI Finland Capped ETF	22
iShares MSCI Germany Small-Cap ETF	25
iShares MSCI Ireland Capped ETF	29
iShares MSCI New Zealand Capped	31
iShares MSCI Norway Capped ETF	33
Financial Statements	36
Financial Highlights	43
Notes to Financial Statements	49
Report of Independent Registered Public Accounting Firm	61
Tax Information	62
Board Review and Approval of Investment Advisory Contract	63
Supplemental Information	70
Trustee and Officer Information	74

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended August 31, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 17.11% in U.S. dollar terms for the reporting period.

The primary factor behind the robust performance of global equity markets was improving global economic growth, driven largely by the continuation of accommodative monetary policies from many of the world’s central banks. Signs of stronger economic activity in Europe emerged as the European Central Bank (“ECB”) maintained policies such as quantitative easing and negative interest rates. Economic growth rates in China and Japan, the largest economies in Asia, also increased during the reporting period, reflecting efforts by the People’s Bank of China (“PBOC”) and the Bank of Japan (“BOJ”) to stimulate economic activity. Stronger economic growth led several central banks to consider reducing their economic stimulus measures. For example, late in the reporting period, the ECB discussed the possibility of tapering its quantitative easing program, while the PBOC increased short-term interest rates during the first half of 2017.

On a regional basis, European equity markets posted the best returns among developed markets, advancing by approximately 20% in U.S. dollar terms for the reporting period. European stocks benefited from improving economic conditions and stronger corporate earnings. In addition, election outcomes in France and the Netherlands eased investor concerns about nationalist presidential candidates and their opposition to the European Union (“E.U.”). Currency fluctuations also contributed meaningfully to European equity performance in U.S. dollar terms as the euro appreciated by approximately 6% against the U.S. dollar during the reporting period. The best-performing European stock markets included Austria, Italy, and Spain, while Ireland and Belgium posted the weakest returns.

Equity markets in the Asia-Pacific region gained about 16% in U.S. dollar terms for the reporting period, led by Singapore and Hong Kong. Japanese stocks also posted strong returns, benefiting from improving consumer spending and employment trends that contributed to the ongoing recovery in the Japanese economy. However, equity market returns in Japan were hindered by a decline in the Japanese yen, which depreciated by approximately 6% against the U.S. dollar.

The U.S. stock market returned approximately 15% for the reporting period. Despite mixed U.S. economic data, U.S. stocks advanced initially in anticipation of pro-business fiscal policies from the new presidential administration. Although the administration struggled to implement its fiscal agenda, stocks continued to move higher as better global economic conditions led to a notable improvement in corporate earnings growth, particularly for multinational companies with significant operations outside of the U.S. U.S. stocks advanced despite three short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the reporting period, which increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to start reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017.

Emerging markets stocks outperformed those in developed markets, returning more than 23% in U.S. dollar terms for the reporting period. Emerging markets in Eastern Europe were the best performers, led by Poland, Greece, and Hungary. Equity markets in the Middle East trailed for the reporting period amid continued geopolitical conflict in the region.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® MSCI DENMARK CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.43%		21.73%		21.79%		21.43%		21.73%		21.79%
5 Years		19.59%		19.76%		19.88%		144.57%		146.40%		147.61%
Since Inception		20.00%		20.05%		20.33%		177.77%		178.38%		181.86%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,271.50	$	3.03	$	1,000.00	$	1,022.50	$	2.70		0.53%

^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 (184 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^® MSCI DENMARK CAPPED ETF

The iShares MSCI Denmark Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Danish equities, as represented by the MSCI Denmark IMI 25/50 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 August 31, 2017, the total return for the Fund was 21.43%, net of fees, while the total return for the Index was 21.79%.

Denmark’s economy expanded during the reporting period, benefiting from stronger consumer spending, driven mainly by rising wages associated with the nation’s low unemployment rate and relatively low inflation. Exports from Denmark rose sharply, helped by sales of transportation equipment, vessels and aircraft, and manufactured goods. Although low by historical standards, Denmark’s inflation rate rose to 1.5% during the reporting period, its highest level since the end of 2012.

From a sector standpoint, the healthcare sector, which represented approximately 36% of the Index on average, was the largest contributor to the Index’s performance for the reporting period. Pharmaceutical and biotechnology companies with end markets in the U.S. benefited from a reduction in the longstanding risk of U.S. price controls, as the U.S. presidential administration focused on other issues.

The industrials sector was also a significant contributor to the Index’s return for the reporting period, as the growth rate for global container shipping was strong in the first half of 2017, benefiting marine, road, and rail companies within the transportation industry. The financials sector meaningfully contributed to the Index’s performance, reflecting banks’ strong capitalization, asset quality, and solid profitability.

On the downside, the consumer discretionary sector detracted fractionally from the Index’s return during the reporting period.

The Danish krone, which appreciated about 6% relative to the U.S. dollar during the reporting period, was a relatively large contributor to the Index’s performance, as returns on Danish investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector	Percentage of Total Investments*
Health Care		37.41	%
Industrials		23.96
Financials		14.83
Materials		6.94
Consumer Staples		6.16
Consumer Discretionary		4.57
Utilities		2.44
Telecommunication Services		1.79
Information Technology		1.58
Energy		0.32
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security	Percentage of Total Investments*
Novo Nordisk A/S Class B		23.03	%
Danske Bank A/S		8.97
Vestas Wind Systems A/S		6.51
DSV A/S		4.53
Carlsberg A/S Class B		4.21
Genmab A/S		4.18
AP Moller–Maersk A/S Class B		3.94
Novozymes A/S Class B		3.91
Pandora A/S		3.42
Coloplast A/S Class B		3.15
TOTAL		65.85	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® MSCI FINLAND CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.32%		23.17%		22.83%		23.32%		23.17%		22.83%
5 Years		15.53%		15.57%		15.04%		105.83%		106.18%		101.47%
Since Inception		11.74%		11.76%		11.18%		86.24%		86.45%		81.05%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,217.20	$	3.02	$	1,000.00	$	1,022.50	$	2.75		0.54%

^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 (184 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^® MSCI FINLAND CAPPED ETF

The iShares MSCI Finland Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Finnish equities, as represented by the MSCI Finland IMI 25/50 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 August 31, 2017, the total return for the Fund was 23.32%, net of fees, while the total return for the Index was 22.83%.

The Finnish economy grew for the reporting period at its highest rate since the first quarter of 2011. Despite a wage freeze and rising inflation, Finland’s household consumption remained robust, and domestic demand was the main source of the country’s economic growth. Export growth increased at an even faster rate on heightened international demand for products such as industrial machinery, chemicals, and vehicles.

The industrials sector, which represented approximately 25% of the Index on average, was the most significant contributor to the Index’s return for the reporting period. The sector was driven by the machinery industry, as many emerging markets, especially those actively building out their infrastructure, turned to Finnish-made heavy machinery such as cranes and power plant engines.

The materials sector also contributed to the Index’s return for the reporting period. Paper and forest product companies benefited from a focus on renewable solutions in packaging.

The financials sector also contributed to the Index’s return during the reporting period, based in part on the performance of insurance companies. The information technology sector was a notable contributor to the Index’s return as well, as the communications equipment industry benefited from business collaboration deals, network expansion, and long-term patent agreements with emerging markets.

The euro, which appreciated about 6% relative to the U.S. dollar for the reporting period, contributed meaningfully to the Index’s performance, as returns on Finnish investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector	Percentage of Total Investments*
Industrials		26.08	%
Information Technology		20.14
Materials		16.43
Financials		11.55
Consumer Discretionary		6.19
Telecommunication Services		4.53
Utilities		4.51
Health Care		3.38
Energy		3.34
Consumer Staples		2.41
Real Estate		1.44
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security	Percentage of Total Investments*
Nokia OYJ		18.51	%
Sampo OYJ Class A		11.55
Kone OYJ Class B		8.58
UPM-Kymmene OYJ		6.23
Wartsila OYJ Abp		4.52
Fortum OYJ		4.51
Stora Enso OYJ Class R		4.27
Elisa OYJ		3.70
Neste OYJ		3.34
Nokian Renkaat OYJ		2.92
TOTAL		68.13	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® MSCI GERMANY SMALL-CAP ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		34.12%		34.63%		33.96%		34.12%		34.63%		33.96%
5 Years		18.33%		18.43%		18.30%		131.96%		132.99%		131.68%
Since Inception		17.29%		17.35%		17.17%		144.34%		145.04%		142.86%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,301.40	$	3.42	$	1,000.00	$	1,022.20	$	3.01		0.59%

^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 (184 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^® MSCI GERMANY SMALL-CAP ETF

The iShares MSCI Germany Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization German equities, as represented by the MSCI Germany Small Cap 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 August 31, 2017, the total return for the Fund was 34.12%, net of fees, while the total return for the Index was 33.96%.

Germany’s economy expanded on an annualized basis through the second quarter of 2017, underpinned by healthy domestic demand and government spending. Net trade had a negative effect, however, as sales to countries outside the E.U. declined. The unemployment rate declined to the nation’s lowest jobless rate in 37 years, helping consumer spending accelerate. Inflation was volatile but remained low, while the ECB’s benchmark interest rate remained at zero percent throughout the reporting period.

The industrials sector, which represented approximately 30% of the Index on average, was the largest contributor to the Index’s return for the reporting period. Small-capitalization industrials companies involved in the manufacturing and sales of machinery, Germany’s second-largest export, were the main contributors. The aerospace and defense industry also contributed, due to the thriving demand for passenger jet engine maintenance.

The information technology sector was also a strong contributor to the Index’s return for the reporting period, led by digital mobile payment providers in the IT services industry, as cash payments at the point of sale are increasingly replaced by electronic or digitalized transactions. Select semiconductor companies associated with the rising demand for wireless battery charging solutions also helped the Index’s performance. The healthcare sector was another meaningful contributor to the Index’s return, as the German government supports the generic pharmaceuticals market with low pricing and innovations. On the downside, the consumer staples sector detracted fractionally from the Index’s return.

The euro, which appreciated about 6% relative to the U.S. dollar during the reporting period, was a large contributor to the Index’s performance, as returns on German investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector	Percentage of Total Investments*
Industrials		26.78	%
Information Technology		19.29
Real Estate		12.89
Health Care		12.06
Consumer Discretionary		8.29
Financials		6.42
Telecommunication Services		4.64
Materials		4.51
Utilities		3.49
Consumer Staples		1.45
Energy		0.18
TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security	Percentage of Total Investments*
Wirecard AG		6.17	%
MTU Aero Engines AG		4.49
LEG Immobilien AG		3.94
Uniper SE		3.09
Rheinmetall AG		2.75
Freenet AG		2.64
Dialog Semiconductor PLC		2.18
Sartorius AG (Preferred)		2.18
Drillisch AG		2.00
Duerr AG		1.87
TOTAL		31.31	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® MSCI IRELAND CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.99%		14.06%		14.58%		13.99%		14.06%		14.58%
5 Years		17.90%		17.75%		18.43%		127.85%		126.35%		132.94%
Since Inception		11.41%		11.42%		11.95%		120.71%		120.86%		128.43%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.

Index performance through November 26, 2013 reflects the performance of the MSCI Ireland Investable Market Index 25/50. Index performance beginning on November 27, 2013 reflects the performance of the MSCI All Ireland Capped Index.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,125.90	$	2.63	$	1,000.00	$	1,022.70	$	2.50		0.49%

^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 (184 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^® MSCI IRELAND CAPPED ETF

The iShares MSCI Ireland Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Irish equities, as represented by the MSCI All Ireland Capped 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 August 31, 2017, the total return for the Fund was 13.99%, net of fees, while the total return for the Index was 14.58%.

Ireland’s economy rose on an annualized basis during the reporting period, benefiting from the manufacturing sector, where growth reached a two-year high, and further driven by foreign direct investment (“FDI”). For the sixth year in a row, Ireland was named the best country in the world for attracting high-value FDI projects. Ireland’s local economy was also strong, due to an increase in household consumption, which makes up nearly 50% of Ireland’s domestic demand.

From a sector perspective, the industrials sector was the largest contributor to the Index’s return for the reporting period. Within the sector, the airlines industry benefited from record booking levels, as European tourism increased. Building products companies that focused on renewable energy-saving solutions also performed well, as did building material distributors, which benefited from a recovery in Ireland’s building markets.

The healthcare sector was also a strong contributor to the Index’s return for the reporting period. Several life sciences tool and services companies made favorable acquisitions, helping expand their global presence in already-established markets.

Sectors that contributed moderately to the Index’s performance included consumer staples and materials, the latter representing approximately 27% of the Index on average for the reporting period. The consumer discretionary sector was the only sector to detract from the Index’s return.

The euro, which appreciated about 6% relative to the U.S. dollar for the reporting period, contributed to the Index’s performance, as returns on Irish investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector	Percentage of Total Investments*
Materials		27.40	%
Consumer Staples		24.36
Industrials		15.39
Consumer Discretionary		10.00
Health Care		9.06
Real Estate		7.26
Financials		6.25
Information Technology		0.28
TOTAL		100.00	%

* Excludes money market funds.

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security	Percentage of Total Investments*
CRH PLC		22.79	%
Kerry Group PLC Class A		15.10
Paddy Power Betfair PLC		7.24
ICON PLC		4.82
Smurfit Kappa Group PLC		4.61
Kingspan Group PLC		4.54
Bank of Ireland Group PLC		4.51
Ryanair Holdings PLC ADR		4.35
UDG Healthcare PLC		4.24
Glanbia PLC		4.24
TOTAL		76.43	%

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® MSCI NEW ZEALAND CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		3.95%		4.90%		4.34%		3.95%		4.90%		4.34%
5 Years		13.33%		13.50%		13.77%		86.91%		88.34%		90.58%
Since Inception		14.22%		14.32%		14.70%		153.67%		155.12%		161.04%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 9/1/10. The first day of secondary market trading was 9/2/10.

Index performance through February 11, 2013 reflects the performance of the MSCI New Zealand Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI New Zealand IMI 25/50 Index.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,088.10	$	2.58	$	1,000.00	$	1,022.70	$	2.50		0.49%

^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 (184 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^® MSCI NEW ZEALAND CAPPED ETF

The iShares MSCI New Zealand Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of New Zealand equities, as represented by the MSCI New Zealand IMI 25/50 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 August 31, 2017, the total return for the Fund was 3.95%, net of fees, while the total return for the Index was 4.34%.

New Zealand’s economy was robust, amid an increase in immigration and historically low interest rates, which led to increased housing demand. However, by the end of the reporting period, those conditions appeared to have reached a high point. Net immigration, which has risen steadily since 2012, set a new record in May 2017. The rising population continued to drive up real estate prices for much of the reporting period. As property became less affordable, home ownership decreased to its lowest level since 1951. Construction activity slowed, as evidenced by a decline in building permits late in the reporting period. Economic growth weakened, declining in the first quarter of 2017, the latest quarter for which data are available, for the third consecutive quarter.

Within the Index, sector performance was mixed for the reporting period. The sectors that exhibited strength were largely defensive ones, which are traditionally not sensitive to changing economic conditions. The consumer staples sector contributed significantly to the Index’s performance, reflecting an increase within the food products industry, where a rise in milk production drove up dairy product manufacturing. The utilities, industrials, and healthcare sectors also contributed to the Index’s return.

In contrast, the consumer discretionary and materials sectors detracted from the Index’s performance for the reporting period. The former reflecting declines in the media and the hotels, restaurants, and leisure industries. Weakness in the materials sector was driven by the slowing of construction activity during the reporting period. The real estate sector also detracted modestly from the Index’s return as the country’s robust property market showed evidence of declining.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Utilities	18.65	%
Health Care	17.12
Industrials	14.40
Telecommunication Services	12.79
Real Estate	8.52
Consumer Discretionary	8.18
Materials	8.10
Energy	4.73
Consumer Staples	4.38
Information Technology	3.13
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Spark New Zealand Ltd.	10.25	%
Fisher & Paykel Healthcare Corp. Ltd.	9.55
Auckland International Airport Ltd.	9.26
Fletcher Building Ltd.	8.10
Contact Energy Ltd.	5.68
Meridian Energy Ltd.	4.61
Ryman Healthcare Ltd.	4.45
a2 Milk Co. Ltd.	4.38
Z Energy Ltd.	3.97
Mercury NZ Ltd.	3.70
TOTAL	63.95	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® MSCI NORWAY CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		27.10%		27.60%		27.26%		27.10%		27.60%		27.26%
5 Years		1.20%		1.21%		1.45%		6.14%		6.18%		7.48%
Since Inception		2.52%		2.56%		2.77%		14.98%		15.24%		16.57%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/23/12. The first day of secondary market trading was 1/24/12.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,134.50	$	2.85	$	1,000.00	$	1,022.50	$	2.70		0.53%

^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 (184 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^® MSCI NORWAY CAPPED ETF

The iShares MSCI Norway Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Norwegian equities, as represented by the MSCI Norway IMI 25/50 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 August 31, 2017, the total return for the Fund was 27.10%, net of fees, while the total return for the Index was 27.26%.

As the largest oil producer in Western Europe, Norway’s economy has struggled since the collapse in oil prices in late 2014. During the reporting period, oil prices increased, but remained well below their pre-collapse price levels. As the Norwegian economy has diversified, however, other areas of its economy compensated for weakness in oil-related industries.

Excluding oil and gas, Norway’s economic growth posted the best growth in more than three years during the first quarter of 2017 as unemployment declined and manufacturing output improved. Non-oil exports rebounded during the reporting period, as evidenced by a 13% increase in the value of seafood exports in May 2017. Although consumer confidence levels were low, retail sales and imports increased late in the reporting period, suggesting some improvement in domestic activity.

Within the Index, the financials and energy sectors contributed significantly to the Index’s return for the reporting period, the former reflecting gains among banks stocks. Within the energy sector, earnings generally improved despite low oil prices, as some companies effectively reduced costs and improved operational efficiencies. The materials, consumer staples, and telecommunications services sectors were also meaningful contributors to the Index’s return.

On the downside, the consumer discretionary sector detracted from the Index’s return, reflecting negative consumer confidence for much of the reporting period. Weakness in the sector was led by declines in the media and retail industries.

The Norwegian krone, which appreciated about 7% relative to the U.S. dollar during the reporting period, was a large contributor to the Index’s performance, as returns on Norwegian investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Energy	26.08	%
Financials	24.32
Consumer Staples	14.80
Materials	11.43
Telecommunication Services	10.56
Consumer Discretionary	4.72
Information Technology	3.00
Industrials	2.64
Real Estate	1.70
Utilities	0.47
Health Care	0.28
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Statoil ASA	15.23	%
DNB ASA	13.36
Telenor ASA	10.55
Norsk Hydro ASA	5.90
Marine Harvest ASA	4.51
Yara International ASA	4.47
Orkla ASA	4.45
Storebrand ASA	3.04
Subsea 7 SA	3.03
Gjensidige Forsikring ASA	2.77
TOTAL	67.31	%

* 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 March 1, 2017 and held through August 31, 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^® MSCI DENMARK CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.08%
BANKS — 12.19%
Danske Bank A/S		154,741	$	6,005,661
Jyske Bank A/S Registered		17,513		1,052,300
Spar Nord Bank A/S		31,791		409,079
Sydbank A/S		19,720		768,191
				8,235,231
BEVERAGES — 5.21%
Carlsberg A/S Class B		24,581		2,817,250
Royal Unibrew A/S		12,865		704,537
				3,521,787
BIOTECHNOLOGY — 5.52%
Bavarian Nordic A/Sa,b		9,584		664,114
Genmab A/Sa		12,000		2,796,698
Zealand Pharma A/Sa,b		14,025		266,782
				3,727,594
BUILDING PRODUCTS — 0.91%
Rockwool International A/S Class B		2,452		615,749
				615,749
CHEMICALS — 6.88%
Chr Hansen Holding A/S		23,584		2,026,295
Novozymes A/S Class B		51,575		2,619,991
				4,646,286
COMMERCIAL SERVICES & SUPPLIES — 2.10%
ISS A/S		36,611		1,422,667
				1,422,667
CONSTRUCTION & ENGINEERING — 1.45%
FLSmidth & Co. A/S		11,099		697,951
Per Aarsleff Holding A/S		9,905		280,243
				978,194
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.78%
TDC A/S		201,815		1,200,706
				1,200,706
ELECTRIC UTILITIES — 2.41%
DONG Energy A/Sc		31,372		1,630,795
				1,630,795
ELECTRICAL EQUIPMENT — 6.45%
Vestas Wind Systems A/S		47,909		4,357,487
				4,357,487
FOOD PRODUCTS — 0.63%
Schouw & Co. AB		4,061		425,188
				425,188

Security	Shares		Value
HEALTH CARE EQUIPMENT & SUPPLIES — 7.08%
Ambu A/S Class B		9,058	$	650,253
Coloplast A/S Class B		25,796		2,109,137
GN Store Nord A/S		35,358		1,171,073
William Demant Holding A/Sa		32,420		856,629
				4,787,092
HEALTH CARE TECHNOLOGY — 0.07%
NNIT A/Sc		1,535		47,356
				47,356
HOUSEHOLD DURABLES — 0.51%
Bang & Olufsen A/Sa		17,233		344,332
				344,332
INSURANCE — 2.51%
Alm Brand A/S		32,103		313,027
Topdanmark A/Sa		16,463		642,104
Tryg A/S		32,010		738,856
				1,693,987
IT SERVICES — 0.57%
Nets A/Sa,c		15,702		387,784
				387,784
MACHINERY — 0.93%
NKT A/Sa		7,840		626,227
				626,227
MARINE — 7.10%
AP Moller – Maersk A/S Class A		682		1,333,268
AP Moller – Maersk A/S Class B		1,283		2,641,492
D/S Norden A/Sa,b		13,272		281,947
Dfds A/S		9,402		541,341
				4,798,048
OIL, GAS & CONSUMABLE FUELS — 0.32%
TORM PLC		19,994		215,730
				215,730
PHARMACEUTICALS — 24.40%
ALK-Abello A/Sb		2,370		369,179
H Lundbeck A/S		11,010		700,274
Novo Nordisk A/S Class B		323,616		15,415,335
				16,484,788
ROAD & RAIL — 4.49%
DSV A/S		42,825		3,032,549
				3,032,549
SOFTWARE — 0.99%
SimCorp A/S		11,279		667,082
				667,082

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Continued)

iSHARES^® MSCI DENMARK CAPPED ETF

August 31, 2017

Security	Shares		Value
SPECIALTY RETAIL — 0.38%
Matas A/S		17,608	$	256,129
				256,129
TEXTILES, APPAREL & LUXURY GOODS — 3.63%
IC Group A/S		7,677		168,120
Pandora A/S		21,556		2,287,931
				2,456,051
TOBACCO — 0.26%
Scandinavian Tobacco Group A/Sc		10,134		178,999
				178,999
TRADING COMPANIES & DISTRIBUTORS — 0.31%
Solar A/S Class B		3,660		208,275
				208,275
TOTAL COMMON STOCKS
(Cost: $57,845,929)				66,946,113
SHORT-TERM INVESTMENTS — 1.87%
MONEY MARKET FUNDS — 1.87%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		1,251,881		1,252,256

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		8,716	$	8,716
				1,260,972
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,260,815)				1,260,972
TOTAL INVESTMENTS IN SECURITIES — 100.95%
(Cost: $59,106,744)g				68,207,085
Other Assets, Less Liabilities — (0.95)%				(639,645	)
NET ASSETS — 100.00%			$	67,567,440

^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 issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $59,879,676. The net unrealized appreciation was $8,327,409, of which $10,202,636 represented gross unrealized appreciation on investments and $1,875,227 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		1,695,200		—		(443,319	)b		1,251,881	$	1,252,256	$	32	$	157	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		17,692		—		(8,976	)b		8,716		8,716		—		—		193
										$	1,260,972	$	32	$	157	$	193

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchases and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI DENMARK CAPPED ETF

August 31, 2017

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 August 31, 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	$	66,946,113	$	—	$	—	$	66,946,113
Money market funds		1,260,972		—		—		1,260,972
Total	$	68,207,085	$	—	$	—	$	68,207,085

See notes to financial statements.

SCHEDULES OF INVESTMENTS 21

Schedule of Investments

iSHARES^® MSCI FINLAND CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.48%
AIRLINES — 0.71%
Finnair OYJ		28,545	$	324,100
				324,100
AUTO COMPONENTS — 2.91%
Nokian Renkaat OYJ		31,485		1,329,228
				1,329,228
BUILDING PRODUCTS — 0.69%
Uponor OYJ		19,227		313,625
				313,625
CHEMICALS — 0.87%
Kemira OYJ		32,204		397,805
				397,805
COMMERCIAL SERVICES & SUPPLIES — 0.66%
Caverion Corp.a,b		33,458		299,928
				299,928
COMMUNICATIONS EQUIPMENT — 18.41%
Nokia OYJ		1,361,227		8,423,575
				8,423,575
CONSTRUCTION & ENGINEERING — 1.20%
Lehto Group OYJ		11,924		189,964
YIT OYJ		40,678		358,363
				548,327
CONTAINERS & PACKAGING — 2.15%
Huhtamaki OYJb		25,339		984,502
				984,502
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.51%
DNA OYJ		21,006		379,355
Elisa OYJ		38,591		1,683,826
				2,063,181
ELECTRIC UTILITIES — 4.48%
Fortum OYJ		114,410		2,051,211
				2,051,211
FOOD & STAPLES RETAILING — 2.12%
Kesko OYJ Class B		18,044		971,155
				971,155
FOOD PRODUCTS — 0.27%
Atria OYJ		9,246		124,106
				124,106

Security	Shares		Value
HEALTH CARE PROVIDERS & SERVICES — 0.47%
Oriola Corp. Class B		50,853	$	214,630
				214,630
INSURANCE — 11.49%
Sampo OYJ Class A		99,701		5,255,818
				5,255,818
IT SERVICES — 1.16%
Tieto OYJ		16,795		530,538
				530,538
LEISURE PRODUCTS — 1.93%
Amer Sports OYJ		33,505		884,715
				884,715
MACHINERY — 21.30%
Cargotec OYJ Class B		11,171		672,028
Kone OYJ Class B		72,063		3,905,097
Konecranes OYJ		18,876		831,913
Metso OYJ		31,220		1,033,350
Outotec OYJa,b		51,837		380,251
Ponsse OYJ		5,965		166,870
Valmet OYJ		36,718		695,408
Wartsila OYJ Abp		29,898		2,059,874
				9,744,791
MEDIA — 0.57%
Sanoma OYJ		27,782		260,607
				260,607
METALS & MINING — 2.00%
Outokumpu OYJ		88,808		916,467
				916,467
MULTILINE RETAIL — 0.75%
Stockmann OYJ Abp Class Ba,b		20,208		151,359
Tokmanni Group Corp.		19,909		191,489
				342,848
OIL, GAS & CONSUMABLE FUELS — 3.32%
Neste OYJ		34,547		1,521,340
				1,521,340
PAPER & FOREST PRODUCTS — 11.33%
Metsa Board OYJ		61,002		400,339
Stora Enso OYJ Class R		148,065		1,943,420
UPM-Kymmene OYJ		109,195		2,837,906
				5,181,665
PHARMACEUTICALS — 2.89%
Orion OYJ Class B		27,976		1,323,109
				1,323,109

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI FINLAND CAPPED ETF

August 31, 2017

Security	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.43%
Citycon OYJ		134,833	$	367,735
Technopolis OYJ		60,787		288,356
				656,091
SOFTWARE — 0.46%
F-Secure OYJ		42,472		211,069
				211,069
TRADING COMPANIES & DISTRIBUTORS — 1.40%
Cramo OYJ		12,745		356,084
Ramirent OYJ		27,604		285,192
				641,276
TOTAL COMMON STOCKS
(Cost: $41,512,196)				45,515,707
SHORT-TERM INVESTMENTS — 3.75%
MONEY MARKET FUNDS — 3.75%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%c,d,e		1,708,490		1,709,003

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		6,454	$	6,454
				1,715,457
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,715,476)				1,715,457
TOTAL INVESTMENTS IN SECURITIES — 103.23%
(Cost: $43,227,672)f				47,231,164
Other Assets, Less Liabilities — (3.23)%				(1,477,882	)
NET ASSETS — 100.00%			$	45,753,282

^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  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 (including short positions and derivatives, if any) for federal income tax purposes was $43,968,134. The net unrealized appreciation was $3,263,030, of which $4,790,623 represented gross unrealized appreciation on investments and $1,527,593 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)			Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		1,708,490	b		—			1,708,490	$	1,709,003	$	(65	)	$	(19	)	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		8,430		—			(1,976	)b		6,454		6,454		—			—			152
											$	1,715,457	$	(65	)	$	(19	)	$	152

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchases and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® MSCI FINLAND CAPPED ETF

August 31, 2017

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 August 31, 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	$	45,515,707	$	—	$	—	$	45,515,707
Money market funds		1,715,457		—		—		1,715,457
Total	$	47,231,164	$	—	$	—	$	47,231,164

See notes to financial statements.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GERMANY SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 93.16%
AEROSPACE & DEFENSE — 4.53%
MTU Aero Engines AG		12,619	$	1,764,320
OHB SE		1,275		50,281
				1,814,601
AUTO COMPONENTS — 2.25%
ElringKlinger AGa		6,918		120,041
Grammer AG		2,441		128,694
LEONI AG		7,531		451,172
SAF-Holland SA		11,017		200,728
				900,635
AUTOMOBILES — 0.08%
EDAG Engineering Group AG		2,434		33,814
				33,814
BANKS — 0.22%
comdirect bank AG		6,857		87,637
				87,637
BIOTECHNOLOGY — 0.14%
Biotest AG		59		1,999
Biotest AG New		1,627		53,968
				55,967
BUILDING PRODUCTS — 0.11%
CENTROTEC Sustainable AG		2,182		45,917
				45,917
CAPITAL MARKETS — 1.46%
AURELIUS Equity Opportunities SE & Co KGaAa		5,676		336,262
Deutsche Beteiligungs AG		2,924		143,938
MLP AG		14,614		103,257
				583,457
CHEMICALS — 1.33%
H&R GmbH & Co. KGaAb		3,110		44,610
Wacker Chemie AG		3,796		485,831
				530,441
COMMERCIAL SERVICES & SUPPLIES — 1.03%
Bilfinger SEa		7,510		303,931
Cewe Stiftung & Co. KGAA		1,259		107,921
				411,852
COMMUNICATIONS EQUIPMENT — 0.14%
ADVA Optical Networking SEa,b		10,213		57,712
				57,712

Security	Shares		Value
CONSUMER FINANCE — 0.20%
Ferratum OYJa		2,904	$	79,340
				79,340
DIVERSIFIED FINANCIAL SERVICES — 1.73%
GRENKE AGa		6,453		580,998
Hypoport AGa,b		752		111,310
				692,308
ELECTRICAL EQUIPMENT — 1.36%
Nordex SEa,b		15,297		212,238
Senvion SAb		6,317		90,424
SGL Carbon SEa,b		14,845		241,882
				544,544
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.26%
Isra Vision AG		798		138,516
Jenoptik AG		12,501		365,839
				504,355
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.71%
Alstria office REIT AGa		33,462		489,728
Hamborner REIT AG		18,405		193,719
				683,447
FOOD PRODUCTS — 1.42%
KWS Saat SE		481		200,151
Suedzucker AG		17,340		368,193
				568,344
HEALTH CARE EQUIPMENT & SUPPLIES — 1.54%
Carl Zeiss Meditec AG Bearer		9,766		486,492
Draegerwerk AG & Co. KGaA		743		57,948
STRATEC Biomedical AG		1,153		71,282
				615,722
HEALTH CARE PROVIDERS & SERVICES — 0.61%
RHOEN-KLINIKUM AG		7,305		242,396
				242,396
HEALTH CARE TECHNOLOGY — 0.85%
CompuGroup Medical SEa		5,811		338,491
				338,491
HOTELS, RESTAURANTS & LEISURE — 0.33%
bet-at-home.com AGa		682		81,894
Zeal Network SE		1,732		49,811
				131,705

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
HOUSEHOLD DURABLES — 0.14%
Surteco SE		1,886	$	55,496
				55,496
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 3.43%
Capital Stage AG		19,978		157,664
Uniper SE		48,843		1,214,522
				1,372,186
INDUSTRIAL CONGLOMERATES — 3.53%
Indus Holding AG		4,450		335,213
Rheinmetall AG		10,570		1,078,974
				1,414,187
INSURANCE — 0.37%
Wuestenrot & Wuerttembergische AG		5,684		148,940
				148,940
INTERNET & DIRECT MARKETING RETAIL — 1.10%
Takkt AG		7,960		187,001
zooplus AGa,b		1,459		254,987
				441,988
INTERNET SOFTWARE & SERVICES — 1.33%
Rocket Internet SEa,b,c		14,027		321,860
XING AGa		682		209,194
				531,054
IT SERVICES — 8.11%
Bechtle AG		7,134		491,510
CANCOM SE		3,773		258,422
GFT Technologies SEa		3,836		72,240
Wirecard AGa		28,486		2,425,215
				3,247,387
LIFE SCIENCES TOOLS & SERVICES — 4.14%
Evotec AGa,b		30,252		580,321
Gerresheimer AG		7,618		598,489
MorphoSys AGa,b		6,760		479,646
				1,658,456
MACHINERY — 9.79%
DEUTZ AG		29,248		222,199
DMG Mori AG		4,780		284,829
Duerr AG		6,297		732,479
Heidelberger Druckmaschinen AGa,b		59,341		222,446
Koenig & Bauer AG		3,208		241,921
Krones AGa		3,833		473,478
NORMA Group SE		7,732		470,016
Pfeiffer Vacuum Technology AG		1,556		254,365

Security	Shares		Value
Rational AG		828	$	536,995
SLM Solutions Group AGa,b		3,057		116,303
Vossloh AGa,b		2,520		169,425
Wacker Neuson SE		6,809		193,800
				3,918,256
MARINE — 1.07%
Hapag-Lloyd AGb,c		9,941		429,379
				429,379
MEDIA — 2.66%
Borussia Dortmund GmbH & Co. KGaA		14,521		127,184
CTS Eventim AG & Co. KGaA		11,647		512,481
Stroeer SE & Co. KGaA		6,707		426,766
				1,066,431
METALS & MINING — 2.89%
Aurubis AG		8,182		730,249
Salzgitter AGa		9,479		425,427
				1,155,676
OIL, GAS & CONSUMABLE FUELS — 0.17%
VERBIO Vereinigte BioEnergie AG		5,354		69,637
				69,637
PHARMACEUTICALS — 1.60%
STADA Arzneimittel AG		6,870		641,821
				641,821
PROFESSIONAL SERVICES — 0.58%
Amadeus Fire AG		1,264		110,454
Bertrandt AGa		1,355		121,160
				231,614
REAL ESTATE MANAGEMENT & DEVELOPMENT — 10.95%
ADLER Real Estate AGa,b		6,381		101,771
ADO Properties SAa,c		7,491		364,658
Deutsche Euroshop AG		11,332		446,954
DIC Asset AG		10,831		121,842
Grand City Properties SA		25,991		565,483
LEG Immobilien AG		15,333		1,547,676
PATRIZIA Immobilien AGb		11,205		226,734
TAG Immobilien AG		30,205		503,468
TLG Immobilien AG		17,996		398,169
WCM Beteiligungs & Grundbesitz-AG		27,678		106,287
				4,383,042
ROAD & RAIL — 1.16%
Sixt Leasing SE		3,006		74,711
Sixt SE		2,932		223,164
VTG AG		3,141		164,834
				462,709

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 4.60%
AIXTRON SEb		26,005	$	251,141
Dialog Semiconductor PLCb		18,895		857,798
Elmos Semiconductor AG		2,443		60,617
Manz AGa,b		1,035		46,267
Siltronic AGb		5,096		496,868
SMA Solar Technology AGa		2,947		130,302
				1,842,993
SOFTWARE — 2.62%
Nemetschek SEa		4,672		355,324
RIB Software SEa		8,530		163,884
Software AG		12,050		528,781
				1,047,989
SPECIALTY RETAIL — 1.37%
CECONOMY AG		43,248		473,144
Hornbach Baumarkt AG		1,931		74,475
				547,619
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.87%
Diebold Nixdorf AG		2,005		166,624
S&T AGa		8,908		179,989
				346,613
TEXTILES, APPAREL & LUXURY GOODS — 0.20%
Gerry Weber International AGa		6,137		78,034
				78,034
THRIFTS & MORTGAGE FINANCE — 2.33%
Aareal Bank AG		13,797		564,189
Deutsche Pfandbriefbank AGc		26,105		367,469
				931,658
TRADING COMPANIES & DISTRIBUTORS — 0.82%
BayWa AG		3,383		126,795
Kloeckner & Co. SE		18,153		201,620
				328,415
TRANSPORTATION INFRASTRUCTURE — 0.47%
Hamburger Hafen und Logistik AG		5,948		189,164
				189,164
WIRELESS TELECOMMUNICATION SERVICES — 4.56%
Drillisch AG		11,429		786,605
Freenet AG		31,075		1,036,678
				1,823,283
TOTAL COMMON STOCKS
(Cost: $32,286,581)				37,286,712

Security	Shares		Value
PREFERRED STOCKS — 5.01%
BIOTECHNOLOGY — 0.33%
Biotest AG, Preference Shares		4,800	$	132,967
				132,967
CONSTRUCTION MATERIALS — 0.22%
STO SE & Co. KGaA, Preference Shares		617		87,549
				87,549
HEALTH CARE EQUIPMENT & SUPPLIES — 2.63%
Draegerwerk AG & Co. KGaA, Preference Shares		1,844		196,959
Sartorius AG, Preference Sharesa		8,631		856,210
				1,053,169
MACHINERY — 1.24%
Jungheinrich AG, Preference Shares		11,648		493,346
				493,346
ROAD & RAIL — 0.59%
Sixt SE, Preference Shares		4,046		236,907
				236,907
TOTAL PREFERRED STOCKS
(Cost: $1,505,607)				2,003,938
SHORT-TERM INVESTMENTS — 23.06%
MONEY MARKET FUNDS — 23.06%
BlackRock Cash Funds: Institutional, SL Agency Shares 1.32%d,e,f		9,217,379		9,220,145
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		9,923		9,923
				9,230,068
TOTAL SHORT-TERM INVESTMENTS
(Cost: $9,229,462)				9,230,068

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY SMALL-CAP ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 121.23%
(Cost: $43,021,650)g	$	48,520,718
Other Assets, Less Liabilities — (21.23)%		(8,495,954	)
NET ASSETS — 100.00%	$	40,024,764

^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 issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $43,421,273. The net unrealized appreciation was $5,099,445, of which $6,714,237 represented gross unrealized appreciation on investments and $1,614,792 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		2,045,500		7,171,879	b		—			9,217,379	$	9,220,145	$	396	$	606	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		16,538		—			(6,615	)b		9,923		9,923		1		—		116
											$	9,230,068	$	397	$	606	$	116

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	37,286,712	$	—	$	—	$	37,286,712
Preferred stocks		2,003,938		—		—		2,003,938
Money market funds		9,230,068		—		—		9,230,068
Total	$	48,520,718	$	—	$	—	$	48,520,718

See notes to financial statements.

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI IRELAND CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.80%
AIRLINES — 4.34%
Ryanair Holdings PLC ADRa		25,893	$	2,944,035
				2,944,035
BANKS — 5.80%
Bank of Ireland Group PLCa		367,172		3,055,714
Permanent TSB Group Holdings PLCa		425,296		884,354
				3,940,068
BEVERAGES — 2.34%
C&C Group PLC		442,358		1,586,698
				1,586,698
BUILDING PRODUCTS — 4.53%
Kingspan Group PLC		79,582		3,074,987
				3,074,987
CONSTRUCTION MATERIALS — 22.74%
CRH PLC		442,658		15,438,303
				15,438,303
CONTAINERS & PACKAGING — 4.61%
Smurfit Kappa Group PLC		102,661		3,126,403
				3,126,403
DIVERSIFIED FINANCIAL SERVICES — 0.19%
IFG Group PLC		61,761		129,967
				129,967
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 7.25%
Green REIT PLC		1,022,867		1,751,164
Hibernia REIT PLC		1,049,137		1,781,171
Irish Residential Properties REIT PLC		861,443		1,387,749
				4,920,084
FOOD & STAPLES RETAILING — 0.74%
Total Produce PLC		196,237		505,108
				505,108
FOOD PRODUCTS — 21.23%
Glanbia PLC		153,684		2,870,450
Kerry Group PLC Class A		109,980		10,228,977
Origin Enterprises PLC		171,801		1,311,311
				14,410,738
HEALTH CARE PROVIDERS & SERVICES — 4.23%
UDG Healthcare PLC		266,473		2,873,955
				2,873,955

Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 9.77%
Dalata Hotel Group PLCa		295,009	$	1,724,920
Paddy Power Betfair PLC		55,901		4,904,133
				6,629,053
INSURANCE — 0.24%
FBD Holdings PLCa		16,622		163,036
				163,036
INTERNET SOFTWARE & SERVICES — 0.28%
Datalex PLC		42,995		191,841
				191,841
LIFE SCIENCES TOOLS & SERVICES — 4.81%
ICON PLCa		28,803		3,265,972
				3,265,972
MARINE — 2.55%
Irish Continental Group PLC		259,352		1,732,890
				1,732,890
PROFESSIONAL SERVICES — 0.15%
CPL Resources PLCa		14,460		100,570
				100,570
SPECIALTY RETAIL — 0.21%
Applegreen PLC		22,270		145,622
				145,622
TRADING COMPANIES & DISTRIBUTORS — 3.79%
Grafton Group PLC		253,778		2,570,265
				2,570,265
TOTAL COMMON STOCKS
(Cost: $65,145,759)				67,749,595
SHORT-TERM INVESTMENTS — 0.01%
MONEY MARKET FUNDS — 0.01%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.96%b,c		6,869		6,869
				6,869
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,869)				6,869

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® MSCI IRELAND CAPPED ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 99.81%	$	67,756,464
(Cost: $65,152,628)d
Other Assets, Less Liabilities — 0.19%		126,332
NET ASSETS — 100.00%	$	67,882,796

ADR  —  American Depositary Receipts

^a Non-income earning security.

^b Affiliated issuer. See Schedule 1.

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

^d The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $65,861,112. The net unrealized appreciation was $1,895,352, of which $8,923,777 represented gross unrealized appreciation on investments and $7,028,425 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		1,230		5,639	b		—		6,869	$	6,869	$	—	$	—	$	172	c

^a Includes realized capital gain distributions from an affiliated fund, if any.

^b Net of shares purchased and sold.

^c Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	67,749,595	$	—	$	—	$	67,749,595
Money market funds		6,869		—		—		6,869
Total	$	67,756,464	$	—	$	—	$	67,756,464

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI NEW ZEALAND CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.73%
AIR FREIGHT & LOGISTICS — 1.92%
Freightways Ltd.		595,886	$	3,371,511
				3,371,511
AIRLINES — 3.21%
Air New Zealand Ltd.		2,207,736		5,644,815
				5,644,815
CONSTRUCTION MATERIALS — 8.08%
Fletcher Building Ltd.		2,431,191		14,208,347
				14,208,347
DIVERSIFIED TELECOMMUNICATION SERVICES — 12.75%
Chorus Ltd.		1,551,243		4,444,001
Spark New Zealand Ltd.		6,410,365		17,974,170
				22,418,171
ELECTRIC UTILITIES — 14.00%
Contact Energy Ltd.		2,491,817		9,958,288
Genesis Energy Ltd.		1,988,951		3,497,115
Infratil Ltd.		2,073,537		4,677,962
Mercury NZ Ltd.		2,631,080		6,482,265
				24,615,630
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 8.49%
Argosy Property Ltd.		3,244,120		2,451,228
Goodman Property Trust		4,024,764		3,689,646
Kiwi Property Group Ltd.		5,245,881		5,072,085
Precinct Properties New Zealand Ltd.		4,071,636		3,718,035
				14,930,994
FOOD PRODUCTS — 4.37%
a2 Milk Co. Ltd.a,b		1,932,791		7,682,671
				7,682,671
HEALTH CARE EQUIPMENT & SUPPLIES — 9.53%
Fisher & Paykel Healthcare Corp. Ltd.		1,986,650		16,746,812
				16,746,812
HEALTH CARE PROVIDERS & SERVICES — 7.55%
Metlifecare Ltd.		576,311		2,517,799
Ryman Healthcare Ltd.		1,199,329		7,799,352
Summerset Group Holdings Ltd.		803,389		2,945,982
				13,263,133

Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 3.58%
SKYCITY Entertainment Group Ltd.		2,312,359	$	6,293,224
				6,293,224
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 4.60%
Meridian Energy Ltd.		3,825,405		8,082,278
				8,082,278
INTERNET & DIRECT MARKETING RETAIL — 2.87%
Trade Me Group Ltd.		1,512,343		5,036,601
				5,036,601
MEDIA — 1.71%
Sky Network Television Ltd.		1,480,489		3,011,327
				3,011,327
OIL, GAS & CONSUMABLE FUELS — 4.71%
New Zealand Refining Co. Ltd. (The)		734,772		1,331,397
Z Energy Ltd.		1,257,771		6,954,296
				8,285,693
SOFTWARE—3.13%
Xero Ltd.a,b		292,399		5,497,174
				5,497,174
TRANSPORTATION INFRASTRUCTURE — 9.23%
Auckland International Airport Ltd.		3,336,656		16,226,152
				16,226,152
TOTAL COMMON STOCKS
(Cost: $168,042,860)				175,314,533
SHORT-TERM INVESTMENTS — 2.42%
MONEY MARKET FUNDS — 2.42%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%c,d,e		4,229,991		4,231,260
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		28,361		28,361
				4,259,621
TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,259,192)				4,259,621

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® MSCI NEW ZEALAND CAPPED ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 102.15%
(Cost: $172,302,052)f	$	179,574,154
Other Assets, Less Liabilities — (2.15)%		(3,783,861	)
NET ASSETS — 100.00%	$	175,790,293

^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  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 (including short positions and derivatives, if any) for federal income tax purposes was $173,753,388. The net unrealized appreciation was $5,820,766, of which $15,392,074 represented gross unrealized appreciation on investments and $9,571,308 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		145,000		4,084,991	b		—			4,229,991	$	4,231,260	$	(244	)	$	429	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		48,547		—			(20,186	)b		28,361		28,361		1			—		699
											$	4,259,621	$	(243	)	$	429	$	699

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	175,314,533	$	—	$	—	$	175,314,533
Money market funds		4,259,621		—		—		4,259,621
Total	$	179,574,154	$	—	$	—	$	179,574,154

See notes to financial statements.

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI NORWAY CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.77%
AIRLINES — 0.61%
Norwegian Air Shuttle ASAa,b		7,960	$	197,981
				197,981
AUTO COMPONENTS — 0.48%
Kongsberg Automotive ASAa		151,765		155,084
				155,084
BANKS — 16.76%
DNB ASA		223,081		4,344,142
Norwegian Finans Holding ASAa		25,965		305,378
Skandiabanken ASAc		17,149		176,343
Sparebank 1 Nord Norge		31,846		251,744
SpareBank 1 SMN		36,856		386,095
				5,463,702
BIOTECHNOLOGY — 0.28%
Nordic Nanovector ASAa,b		8,742		92,029
				92,029
CHEMICALS — 5.52%
Borregaard ASA		29,651		344,919
Yara International ASA		35,624		1,452,919
				1,797,838
CONSUMER FINANCE — 0.30%
B2Holding ASAb		43,347		98,062
				98,062
DIVERSIFIED FINANCIAL SERVICES — 0.82%
Aker ASA Class A		7,431		267,445
				267,445
DIVERSIFIED TELECOMMUNICATION SERVICES — 10.53%
Telenor ASA		169,971		3,432,257
				3,432,257
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.36%
IDEX ASAa		127,165		117,360
				117,360
ENERGY EQUIPMENT & SERVICES — 7.20%
Akastor ASAa,b		66,158		130,108
Aker Solutions ASAa		44,732		208,658
BW Offshore Ltd.a,b		21,346		69,966
Ocean Yield ASAb		19,216		168,575
Petroleum Geo-Services ASAa,b		93,050		175,339
Seadrill Ltd.a,b		95,193		17,008

Security	Shares		Value
Subsea 7 SA		68,582	$	984,673
TGS Nopec Geophysical Co. ASA		27,657		591,544
				2,345,871
FOOD PRODUCTS — 14.77%
Austevoll Seafood ASA		26,685		275,259
Bakkafrost P/F		10,647		495,683
Grieg Seafood ASA		11,296		111,801
Leroy Seafood Group ASA		82,754		548,867
Marine Harvest ASA		74,053		1,466,811
Norway Royal Salmon ASA		3,048		66,603
Orkla ASA		141,215		1,445,757
Salmar ASA		13,921		402,607
				4,813,388
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.47%
Scatec Solar ASAc		25,585		152,263
				152,263
INSURANCE — 6.38%
Gjensidige Forsikring ASA		51,537		899,596
Protector Forsikring ASA		19,017		190,663
Storebrand ASA		119,892		989,359
				2,079,618
INTERNET SOFTWARE & SERVICES — 0.46%
Gaming Innovation Group Inc.a		69,822		46,848
Opera Software ASA		33,590		103,622
				150,470
IT SERVICES — 0.96%
Atea ASA		23,666		311,801
				311,801
MACHINERY — 0.36%
Hexagon Composites ASAa,b		32,830		117,734
				117,734
MARINE — 1.67%
Golden Ocean Group Ltd.a,b		26,525		248,889
Stolt-Nielsen Ltd.b		9,051		135,535
Wallenius Wilhelmsen Logisticsa		24,285		159,198
				543,622
MEDIA — 2.88%
Schibsted ASA		18,344		444,461
Schibsted ASA Class B		21,601		494,223
				938,684
METALS & MINING — 5.88%
Norsk Hydro ASA		266,405		1,917,605
				1,917,605

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® MSCI NORWAY CAPPED ETF

August 31, 2017

Security	Shares		Value
MULTILINE RETAIL — 0.52%
Europris ASAc		36,261	$	170,588
				170,588
OIL, GAS & CONSUMABLE FUELS — 18.82%
Aker BP ASA		27,315		498,561
BW LPG Ltd.b,c		24,671		101,128
DNO ASAa		194,629		304,458
Frontline Ltd./Bermudab		24,113		120,877
Hoegh LNG Holdings Ltd.		14,855		156,572
Statoil ASA		262,069		4,951,785
				6,133,381
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.69%
Entra ASAc		26,586		377,611
Norwegian Property ASA		66,668		82,265
Selvaag Bolig ASA		19,732		91,560
				551,436
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.87%
Nordic Semiconductor ASAa,b		37,671		193,685
REC Silicon ASAa,b		664,790		88,612
				282,297
SPECIALTY RETAIL — 0.83%
XXL ASAb,c		26,964		269,472
				269,472
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.35%
Thin Film Electronics ASAa,b		276,004		113,526
				113,526
TOTAL COMMON STOCKS
(Cost: $33,036,536)				32,513,514
SHORT-TERM INVESTMENTS — 5.72%
MONEY MARKET FUNDS — 5.72%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		1,857,569		1,858,127
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		6,181		6,181
				1,864,308
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,864,097)				1,864,308

	Value
TOTAL INVESTMENTS IN SECURITIES — 105.49%
(Cost: $34,900,633)g	$	34,377,822
Other Assets, Less Liabilities — (5.49)%		(1,788,703	)
NET ASSETS — 100.00%	$	32,589,119

^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 issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $36,286,986. The net unrealized depreciation was $1,909,164, of which $3,417,658 represented gross unrealized appreciation on investments and $5,326,822 represented gross unrealized depreciation on investments.

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI NORWAY CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		2,690,510		—		(832,941	)b		1,857,569	$	1,858,127	$	296	$	211	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		15,071		—		(8,890	)b		6,181		6,181		1		—		116
										$	1,864,308	$	297	$	211	$	116

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	32,513,514	$	—	$	—	$	32,513,514
Money market funds		1,864,308		—		—		1,864,308
Total	$	34,377,822	$	—	$	—	$	34,377,822

See notes to financial statements.

SCHEDULES OF INVESTMENTS 35

Statements of Assets and Liabilities

iSHARES^® TRUST

August 31, 2017

	iShares MSCI Denmark Capped ETF			iShares MSCI Finland Capped ETF			iShares MSCI Germany Small-Cap ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	57,845,929		$	41,512,196		$	33,792,188
Affiliated (Note 2)		1,260,815			1,715,476			9,229,462
Total cost of investments in securities	$	59,106,744		$	43,227,672		$	43,021,650
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	66,946,113		$	45,515,707		$	39,290,650
Affiliated (Note 2)		1,260,972			1,715,457			9,230,068
Foreign currency, at valueb		45,571			14,000			625,493
Cash		—			9,683			—
Receivables:
Investment securities sold		467,135			344,695			286,005
Dividends and interest		3,250			942			19,225
Capital shares sold		—			—			2,836,267
Tax reclaims		570,570			—			60,112
Foreign withholding tax claims (Note 7)		—			357,144			—
Total Assets		69,293,611			47,957,628			52,347,820
LIABILITIES
Payables:
Investment securities purchased		444,440			322,466			3,066,016
Collateral for securities on loan (Note 1)		1,252,066			1,709,087			9,219,144
Capital shares redeemed		—			—			20,641
IRS compliance fee for foreign withholding tax claims (Note 7)		—			99,047			—
Professional fees (Note 7)		—			53,550			—
Investment advisory fees (Note 2)		29,665			20,196			17,255
Total Liabilities		1,726,171			2,204,346			12,323,056
NET ASSETS	$	67,567,440		$	45,753,282		$	40,024,764
Net assets consist of:
Paid-in capital	$	61,059,972		$	42,767,378		$	35,301,106
Undistributed net investment income		137,060			385,875			82,292
Accumulated net realized loss		(2,774,455	)		(1,425,636	)		(861,038	)
Net unrealized appreciation		9,144,863			4,025,665			5,502,404
NET ASSETS	$	67,567,440		$	45,753,282		$	40,024,764
Shares outstandingc		1,000,000			1,150,000			700,000
Net asset value per share	$	67.57		$	39.79		$	57.18

^a  Securities on loan with values of $1,215,836, $1,644,030 and $9,017,826, respectively. See Note 1.

^b  Cost of foreign currency: $45,296, $13,711 and $625,249, respectively.

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

See notes to financial statements.

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares MSCI Ireland Capped ETF			iShares MSCI New Zealand Capped ETF			iShares MSCI Norway Capped ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	65,145,759		$	168,042,860		$	33,036,536
Affiliated (Note 2)		6,869			4,259,192			1,864,097
Total cost of investments in securities	$	65,152,628		$	172,302,052		$	34,900,633
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	67,749,595		$	175,314,533		$	32,513,514
Affiliated (Note 2)		6,869			4,259,621			1,864,308
Foreign currency, at valueb		80,817			219,801			33,261
Receivables:
Investment securities sold		1,934,608			2,695,061			528,990
Dividends		88,288			455,212			56,412
Tax reclaims		20,800			—			2,296
Total Assets		69,880,977			182,944,228			34,998,781
LIABILITIES
Payables:
Investment securities purchased		1,970,825			2,850,383			537,723
Collateral for securities on loan (Note 1)		—			4,231,074			1,857,620
Investment advisory fees (Note 2)		27,356			72,478			14,319
Total Liabilities		1,998,181			7,153,935			2,409,662
NET ASSETS	$	67,882,796		$	175,790,293		$	32,589,119
Net assets consist of:
Paid-in capital	$	71,880,923		$	178,778,274		$	37,487,766
Undistributed (distributions in excess of) net investment income		(47,518	)		125,024			36,458
Accumulated net realized loss		(6,559,131	)		(10,379,572	)		(4,414,252	)
Net unrealized appreciation (depreciation)		2,608,522			7,266,567			(520,853	)
NET ASSETS	$	67,882,796		$	175,790,293		$	32,589,119
Shares outstandingc		1,550,000			3,800,000			1,300,000
Net asset value per share	$	43.80		$	46.26		$	25.07

^a  Securities on loan with values of $  –-, $4,010,619 and $1,762,137, respectively. See Note 1.

^b  Cost of foreign currency: $78,202, $223,489 and $31,433, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Operations

iSHARES^® TRUST

Year ended August 31, 2017

	iShares MSCI Denmark Capped ETF			iShares MSCI Finland Capped ETF			iShares MSCI Germany Small-Cap ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	1,204,312		$	1,246,881		$	450,913
Dividends — affiliated (Note 2)		193			152			116
Securities lending income — affiliated — net (Note 2)		40,034			3,653			104,423
Payment from affiliate (Note 2)		—			9,683			—
Total investment income		1,244,539			1,260,369			555,452
EXPENSES
Investment advisory fees (Note 2)		300,693			195,087			146,091
Proxy fees		1,292			738			538
Professional fees (Note 7)		—			7,803			—
Total expenses		301,985			203,628			146,629
Net investment income		942,554			1,056,741			408,823
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(1,002,498	)		(366,134	)		141,446
Investments — affiliated (Note 2)		32			(65	)		396
In-kind redemptions — unaffiliated		2,337,298			1,797,267			1,650,427
Foreign currency transactions		(2,962	)		3,364			13,216
Realized gain distributions from affiliated funds		—			—			1
Net realized gain		1,331,870			1,434,432			1,805,486
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		11,506,397			4,967,126			5,152,655
Investments — affiliated (Note 2)		157			(19	)		606
Translation of assets and liabilities in foreign currencies		40,913			23,027			3,857
Net change in unrealized appreciation/depreciation		11,547,467			4,990,134			5,157,118
Net realized and unrealized gain		12,879,337			6,424,566			6,962,604
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	13,821,891		$	7,481,307		$	7,371,427

^a  Net of foreign withholding tax of $214,085, $ — and $59,218, respectively.

See notes to financial statements.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares MSCI Ireland Capped ETF			iShares MSCI New Zealand Capped ETF			iShares MSCI Norway Capped ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	1,303,890		$	7,338,178		$	933,731
Dividends — affiliated (Note 2)		172			699			116
Securities lending income — affiliated — net (Note 2)		—			106,618			89,327
Total investment income		1,304,062			7,445,495			1,023,174
EXPENSES
Investment advisory fees (Note 2)		379,076			732,829			148,790
Proxy fees		1,482			3,313			578
Total expenses		380,558			736,142			149,368
Net investment income		923,504			6,709,353			873,806
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(1,164,055	)		(506,589	)		(1,456,232	)
Investments — affiliated (Note 2)		—			(244	)		296
In-kind redemptions — unaffiliated		3,399,707			11,852,436			1,303,581
Foreign currency transactions		3,120			(73,871	)		(3,063	)
Realized gain distributions from affiliated funds		—			1			1
Net realized gain (loss)		2,238,772			11,271,733			(155,417	)
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		2,936,992			(15,305,424	)		6,347,056
Investments — affiliated (Note 2)		—			429			211
Translation of assets and liabilities in foreign currencies		3,928			(5,970	)		2,400
Net change in unrealized appreciation/depreciation		2,940,920			(15,310,965	)		6,349,667
Net realized and unrealized gain (loss)		5,179,692			(4,039,232	)		6,194,250
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,103,196		$	2,670,121		$	7,068,056

^a  Net of foreign withholding tax of $31,008, $1,253,274 and $220,700, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 39

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares MSCI Denmark Capped ETF						iShares MSCI Finland Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	942,554		$	1,036,603		$	1,056,741		$	1,308,115
Net realized gain (loss)		1,331,870			(2,617,069	)		1,434,432			(752,842	)
Net change in unrealized appreciation/depreciation		11,547,467			2,613,857			4,990,134			2,795,142
Net increase in net assets resulting from operations		13,821,891			1,033,391			7,481,307			3,350,415
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(836,072	)		(947,962	)		(1,105,599	)		(966,760	)
Total distributions to shareholders		(836,072	)		(947,962	)		(1,105,599	)		(966,760	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		18,534,807			123,953,924			16,349,774			21,961,223
Cost of shares redeemed		(11,881,614	)		(124,704,602	)		(15,140,002	)		(9,664,730	)
Net increase (decrease) in net assets from capital share transactions		6,653,193			(750,678	)		1,209,772			12,296,493
INCREASE (DECREASE) IN NET ASSETS		19,639,012			(665,249	)		7,585,480			14,680,148
NET ASSETS
Beginning of year		47,928,428			48,593,677			38,167,802			23,487,654
End of year	$	67,567,440		$	47,928,428		$	45,753,282		$	38,167,802
Undistributed net investment income included in net assets at end of year	$	137,060		$	33,540		$	385,875		$	333,509
SHARES ISSUED AND REDEEMED
Shares sold		350,000			2,250,000			450,000			700,000
Shares redeemed		(200,000	)		(2,300,000	)		(450,000	)		(300,000	)
Net increase (decrease) in shares outstanding		150,000			(50,000	)		—			400,000

See notes to financial statements.

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI Germany Small-Cap ETF						iShares MSCI  Ireland Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	408,823		$	436,772		$	923,504		$	1,989,541
Net realized gain (loss)		1,805,486			(377,777	)		2,238,772			5,580,001
Net change in unrealized appreciation/depreciation		5,157,118			2,073,010			2,940,920			(12,385,602	)
Net increase (decrease) in net assets resulting from operations		7,371,427			2,132,005			6,103,196			(4,816,060	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(381,496	)		(399,725	)		(871,114	)		(2,173,143	)
Total distributions to shareholders		(381,496	)		(399,725	)		(871,114	)		(2,173,143	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		16,661,561			—			—			17,760,405
Cost of shares redeemed		(7,405,237	)		(3,976,338	)		(61,944,840	)		(63,671,347	)
Net increase (decrease) in net assets from capital share transactions		9,256,324			(3,976,338	)		(61,944,840	)		(45,910,942	)
INCREASE (DECREASE) IN NET ASSETS		16,246,255			(2,244,058	)		(56,712,758	)		(52,900,145	)
NET ASSETS
Beginning of year		23,778,509			26,022,567			124,595,554			177,495,699
End of year	$	40,024,764		$	23,778,509		$	67,882,796		$	124,595,554
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	82,292		$	32,354		$	(47,518	)	$	(178,384	)
SHARES ISSUED AND REDEEMED
Shares sold		300,000			—			—			450,000
Shares redeemed		(150,000	)		(100,000	)		(1,650,000	)		(1,650,000	)
Net increase (decrease) in shares outstanding		150,000			(100,000	)		(1,650,000	)		(1,200,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 41

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI New Zealand Capped ETF						iShares MSCI Norway Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	6,709,353		$	2,724,579		$	873,806		$	754,477
Net realized gain (loss)		11,271,733			211,233			(155,417	)		(5,819,203	)
Net change in unrealized appreciation/depreciation		(15,310,965	)		33,175,736			6,349,667			4,969,829
Net increase (decrease) in net assets resulting from operations		2,670,121			36,111,548			7,068,056			(94,897	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(6,894,546	)		(2,843,446	)		(906,184	)		(742,180	)
Total distributions to shareholders		(6,894,546	)		(2,843,446	)		(906,184	)		(742,180	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		73,025,811			92,950,854			8,971,994			12,537,865
Cost of shares redeemed		(64,193,780	)		(19,380,405	)		(9,006,484	)		(15,833,684	)
Net increase (decrease) in net assets from capital share transactions		8,832,031			73,570,449			(34,490	)		(3,295,819	)
INCREASE (DECREASE) IN NET ASSETS		4,607,606			106,838,551			6,127,382			(4,132,896	)
NET ASSETS
Beginning of year		171,182,687			64,344,136			26,461,737			30,594,633
End of year	$	175,790,293		$	171,182,687		$	32,589,119		$	26,461,737
Undistributed net investment income included in net assets at end of year	$	125,024		$	3,514		$	36,458		$	71,337
SHARES ISSUED AND REDEEMED
Shares sold		1,650,000			2,200,000			400,000			600,000
Shares redeemed		(1,500,000	)		(550,000	)		(400,000	)		(800,000	)
Net increase (decrease) in shares outstanding		150,000			1,650,000			—			(200,000	)

See notes to financial statements.

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Denmark Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	56.39		$	53.99		$	50.53		$	37.64		$	29.32
Income from investment operations:
Net investment incomea		0.94			0.76			0.84			0.65			0.33
Net realized and unrealized gainb		11.07			2.27			3.43			12.66			8.40
Total from investment operations		12.01			3.03			4.27			13.31			8.73
Less distributions from:
Net investment income		(0.83	)		(0.63	)		(0.81	)		(0.42	)		(0.41	)
Total distributions		(0.83	)		(0.63	)		(0.81	)		(0.42	)		(0.41	)
Net asset value, end of year	$	67.57		$	56.39		$	53.99		$	50.53		$	37.64
Total return		21.43	%		5.63	%		8.43	%		35.33	%		29.94	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	67,567		$	47,928		$	48,594		$	60,635		$	9,410
Ratio of expenses to average net assets		0.53	%		0.53	%		0.53	%		0.53	%		0.53	%
Ratio of net investment income to average net assets		1.66	%		1.38	%		1.62	%		1.32	%		0.96	%
Portfolio turnover ratec		14	%		40	%		9	%		9	%		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 43

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Finland Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	33.19		$	31.32		$	34.52		$	27.57		$	22.10
Income from investment operations:
Net investment incomea		1.02			1.51	b		0.56			1.72			0.90
Net realized and unrealized gain (loss)c		6.74			1.13			(3.25	)		6.37			5.47
Total from investment operations		7.76			2.64			(2.69	)		8.09			6.37
Less distributions from:
Net investment income		(1.16	)		(0.77	)		(0.51	)		(1.14	)		(0.90	)
Total distributions		(1.16	)		(0.77	)		(0.51	)		(1.14	)		(0.90	)
Net asset value, end of year	$	39.79		$	33.19		$	31.32		$	34.52		$	27.57
Total return		23.32	%		8.60	%b		(7.90	)%		29.25	%		29.10	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	45,753		$	38,168		$	23,488		$	36,246		$	9,651
Ratio of expenses to average net assets		0.55	%		0.72	%		0.53	%		0.53	%		0.53	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 7)		0.53	%		0.53	%		n/a			n/a			n/a
Ratio of net investment income to average net assets		2.84	%		4.72	%b		1.68	%		4.95	%		3.38	%
Portfolio turnover rated		12	%		21	%		12	%		14	%		12	%

^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 IRS compliance fees and professional fees (See Note 7), which resulted in the following increases:

• Net investment income per share by $0.42

• Total return by 1.05%

• Ratio of net investment income to average net assets by 1.32%

^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.

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Germany Small-Cap ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	43.23		$	40.03		$	38.93		$	34.54		$	26.69
Income from investment operations:
Net investment incomea		0.78			0.71			0.53			0.70			0.67
Net realized and unrealized gainb		13.87			3.16			1.26			4.26			7.81
Total from investment operations		14.65			3.87			1.79			4.96			8.48
Less distributions from:
Net investment income		(0.70	)		(0.67	)		(0.69	)		(0.57	)		(0.63	)
Total distributions		(0.70	)		(0.67	)		(0.69	)		(0.57	)		(0.63	)
Net asset value, end of year	$	57.18		$	43.23		$	40.03		$	38.93		$	34.54
Total return		34.12	%		9.72	%		4.61	%		14.21	%		31.93	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	40,025		$	23,779		$	26,023		$	36,983		$	10,363
Ratio of expenses to average net assets		0.59	%		0.59	%		0.59	%		0.59	%		0.59	%
Ratio of net investment income to average net assets		1.65	%		1.73	%		1.36	%		1.72	%		2.09	%
Portfolio turnover ratec		14	%		12	%		18	%		15	%		19	%

^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 45

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Ireland Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	38.94		$	40.34		$	35.27		$	31.16		$	20.90
Income from investment operations:
Net investment incomea		0.47			0.49			0.52	b		0.47			0.56
Net realized and unrealized gain (loss)c		4.94			(1.33	)		5.43			4.32			10.06
Total from investment operations		5.41			(0.84	)		5.95			4.79			10.62
Less distributions from:
Net investment income		(0.55	)		(0.56	)		(0.62	)		(0.68	)		(0.36	)
Net realized gain		—			—			(0.26	)		—			—
Total distributions		(0.55	)		(0.56	)		(0.88	)		(0.68	)		(0.36	)
Net asset value, end of year	$	43.80		$	38.94		$	40.34		$	35.27		$	31.16
Total return		13.99	%		(2.12	)%		17.10	%		15.45	%		51.07	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	67,883		$	124,596		$	177,496		$	126,979		$	84,121
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		1.19	%		1.27	%		1.41	%b		1.30	%		2.03	%
Portfolio turnover rated		14	%		31	%		26	%		31	%		29	%

^a  Based on average shares outstanding throughout each period.

^b  Includes a special distribution from Paddy Power PLC. Excluding such special distribution, the net investment income would have been $0.34 per share and 0.94% of average net assets.

^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.

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI New Zealand Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	46.90		$	32.17		$	40.88		$	34.14		$	31.12
Income from investment operations:
Net investment incomea		1.96			1.21			1.87			1.68			1.45
Net realized and unrealized gain (loss)b		(0.39	)		14.76			(8.57	)		6.78			3.23
Total from investment operations		1.57			15.97			(6.70	)		8.46			4.68
Less distributions from:
Net investment income		(2.21	)		(1.24	)		(2.01	)		(1.72	)		(1.66	)
Total distributions		(2.21	)		(1.24	)		(2.01	)		(1.72	)		(1.66	)
Net asset value, end of year	$	46.26		$	46.90		$	32.17		$	40.88		$	34.14
Total return		3.95	%		50.49	%		(17.01	)%		25.02	%		15.15	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	175,790		$	171,183		$	64,344		$	159,446		$	145,081
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		4.45	%		3.05	%		4.83	%		4.17	%		4.07	%
Portfolio turnover ratec		9	%		11	%		14	%		20	%		26	%

^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 47

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Norway Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	20.36		$	20.40		$	31.83		$	28.33		$	27.37
Income from investment operations:
Net investment incomea		0.69			0.64			0.64			1.09			0.92
Net realized and unrealized gain (loss)b		4.70			(0.06	)		(11.49	)		3.43			0.85
Total from investment operations		5.39			0.58			(10.85	)		4.52			1.77
Less distributions from:
Net investment income		(0.68	)		(0.62	)		(0.58	)		(1.02	)		(0.81	)
Total distributions		(0.68	)		(0.62	)		(0.58	)		(1.02	)		(0.81	)
Net asset value, end of year	$	25.07		$	20.36		$	20.40		$	31.83		$	28.33
Total return		27.10	%		2.89	%		(34.32	)%		15.91	%		6.61	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	32,589		$	26,462		$	30,595		$	22,280		$	11,331
Ratio of expenses to average net assets		0.53	%		0.53	%		0.53	%		0.53	%		0.53	%
Ratio of net investment income to average net assets		3.11	%		3.23	%		2.60	%		3.48	%		3.16	%
Portfolio turnover ratec		10	%		19	%		14	%		12	%		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.

48 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
MSCI Denmark Capped	Non-diversified
MSCI Finland Capped	Non-diversified
MSCI Germany Small-Cap	Diversified
MSCI Ireland Capped	Non-diversified
MSCI New Zealand Capped	Non-diversified
MSCI Norway Capped	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.

NOTES TO FINANCIAL STATEMENTS 49

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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 to valuation techniques are categorized into a fair value 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

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax 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 August 31, 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.

NOTES TO FINANCIAL STATEMENTS 51

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original 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.

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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 August 31, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
MSCI Denmark Capped
Citigroup Global Markets Inc.	$	190,004	$	190,004	$	—
Credit Suisse Securities (USA) LLC		25,547		25,547		—
Deutsche Bank Securities Inc.		203,705		203,705		—
Morgan Stanley & Co. LLC		568,981		568,981		—
State Street Bank & Trust Company		135,677		135,677		—
UBS AG		91,922		91,922		—
	$	1,215,836	$	1,215,836	$	—
MSCI Finland Capped
Credit Suisse Securities (USA) LLC	$	380,251	$	380,251	$	—
HSBC Bank PLC		938,811		938,811		—
Morgan Stanley & Co. LLC		324,968		324,968		—
	$	1,644,030	$	1,644,030	$	—
MSCI Germany Small-Cap
Citigroup Global Markets Inc.	$	1,442,132	$	1,359,401	$	(82,731	)
Credit Suisse Securities (USA) LLC		49,983		49,983		—
Deutsche Bank Securities Inc.		229,210		229,210		—
Goldman Sachs & Co.		4,055,232		4,055,232		—
HSBC Bank PLC		12,008		12,008		—
JPMorgan Securities LLC		220,941		220,941		—
Merrill Lynch, Pierce, Fenner & Smith		380,908		380,908		—
Morgan Stanley & Co. LLC		781,922		781,922		—
State Street Bank & Trust Company		604,589		604,589		—
UBS AG		1,137,256		1,137,256		—
UBS Securities LLC		103,645		103,645		—
	$	9,017,826	$	8,935,095	$	(82,731	)
MSCI New Zealand Capped
Deutsche Bank Securities Inc.	$	2,141,336	$	2,141,336	$	—
Goldman Sachs & Co.		413,606		413,606		—
Macquarie Bank Limited		263,204		263,204		—
UBS Securities LLC		1,192,473		1,192,473		—
	$	4,010,619	$	4,010,619	$	—

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Continued)

iSHARES^® TRUST

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
MSCI Norway Capped
Citigroup Global Markets Inc.	$	601,146	$	601,146	$	—
Credit Suisse Securities (USA) LLC		107,147		107,147		—
Goldman Sachs & Co.		49,102		49,102		—
HSBC Bank PLC		13,001		13,001		—
JPMorgan Securities LLC		206,618		206,618		—
Merrill Lynch, Pierce, Fenner & Smith		98,062		98,062		—
Morgan Stanley & Co. LLC		561,757		561,757		—
Nomura Securities International Inc.		2,228		2,228		—
Scotia Capital (USA) Inc.		42,465		42,465		—
State Street Bank & Trust Company		69,998		69,998		—
UBS AG		10,613		10,613		—
	$	1,762,137	$	1,762,137	$	—

^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.

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 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 Denmark Capped		0.53	%
MSCI Finland Capped		0.53
MSCI Germany Small-Cap		0.59
MSCI Norway Capped		0.53

For its investment advisory services to each of the iShares MSCI Ireland Capped and iShares MSCI New Zealand Capped 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
	0.59	%	First $7 billion
	0.54		Over $7 billion, up to and including $11 billion
	0.49		Over $11 billion, up to and including $24 billion
	0.44		Over $24 billion, up to and including $48 billion

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Investment Advisory Fee		Aggregate Average Daily Net Assets
	0.40	Over $48 billion, up to and including $72 billion
	0.36	Over $72 billion, up to and including $96 billiona
	0.32	Over $96 billiona

^a Break level added or amended effective July 1, 2017.

The U.S. Securities and Exchange Commission 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 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 Fund, pursuant to a securities lending agreement, will retain 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 August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
MSCI Denmark Capped	$	9,247
MSCI Finland Capped		1,024
MSCI Germany Small-Cap		25,936
MSCI New Zealand Capped		27,167
MSCI Norway Capped		20,029

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 MSCI Finland Capped ETF received a payment from BTC to compensate for forgone securities lending revenue. 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.

NOTES TO FINANCIAL STATEMENTS 55

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For the year ended August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI Denmark Capped	$	2,616,047	$	651,042
MSCI Finland Capped		27,234		619,394
MSCI Germany Small-Cap		359,013		—
MSCI Ireland Capped		263,653		1,201,293
MSCI Norway Capped		487,263		512,077

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 August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
MSCI Denmark Capped	$	7,851,692	$	7,887,821
MSCI Finland Capped		4,462,040		4,339,465
MSCI Germany Small-Cap		6,340,225		3,454,704
MSCI Ireland Capped		10,895,349		11,095,238
MSCI New Zealand Capped		15,384,522		13,574,530
MSCI Norway Capped		2,921,183		2,800,903

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
MSCI Denmark Capped	$	17,240,500	$	10,646,657
MSCI Finland Capped		16,201,739		14,958,611
MSCI Germany Small-Cap		13,481,083		7,249,803
MSCI Ireland Capped		—		61,805,919
MSCI New Zealand Capped		70,480,899		64,073,774
MSCI Norway Capped		8,855,463		8,995,726

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.

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

NOTES TO FINANCIAL STATEMENTS 57

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. 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 issuers located in a single country, it assumes the risk that economic, political and social conditions in that country 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 August 31, 2017, attributable to passive foreign investment companies, 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
MSCI Denmark Capped	$	1,933,635		$	(2,962	)	$	(1,930,673	)
MSCI Finland Capped		1,232,641			101,224			(1,333,865	)
MSCI Germany Small-Cap		1,574,306			22,611			(1,596,917	)
MSCI Ireland Capped		2,678,446			78,476			(2,756,922	)
MSCI New Zealand Capped		10,663,039			306,703			(10,969,742	)
MSCI Norway Capped		(81,588	)		(2,501	)		84,089

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
MSCI Denmark Capped
Ordinary income	$	836,072	$	947,962
MSCI Finland Capped
Ordinary income	$	1,105,599	$	966,760
MSCI Germany Small-Cap
Ordinary income	$	381,496	$	399,725
MSCI Ireland Capped
Ordinary income	$	871,114	$	2,173,143
MSCI New Zealand Capped
Ordinary income	$	6,894,546	$	2,843,446
MSCI Norway Capped
Ordinary income	$	906,184	$	742,180

As of August 31, 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
MSCI Denmark Capped	$	137,060	$	(2,001,523)		$	8,371,931		$	6,507,468
MSCI Finland Capped		204,351		(685,174	)		3,466,727			2,985,904
MSCI Germany Small-Cap		117,105		(503,164	)		5,109,717			4,723,658
MSCI Ireland Capped		237,729		(6,135,894	)		1,900,038			(3,998,127	)
MSCI New Zealand Capped		303,083		(9,106,295	)		5,815,231			(2,987,981	)
MSCI Norway Capped		37,466		(3,028,907	)		(1,907,206	)		(4,898,647	)

^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 and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

As of August 31, 2017, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

iShares ETF	Non- Expiring
MSCI Denmark Capped	$	2,001,523
MSCI Finland Capped		685,174
MSCI Germany Small-Cap		503,164
MSCI Ireland Capped		6,135,894
MSCI New Zealand Capped		9,106,295
MSCI Norway Capped		3,028,907

NOTES TO FINANCIAL STATEMENTS 59

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 August 31, 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 MSCI Finland Capped ETF has filed 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 favorable determinations issued by the Finnish Tax Authority. The Fund continues to evaluate developments in Finland for potential impact to the receivables recorded. Finnish tax claims receivable are disclosed in the statement of assets and liabilities. Professional fees associated with the filing of tax claims in Finland that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.

The Fund, under the approval of the Board, plans to seek a closing agreement with the Internal Revenue Service (“IRS”) to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued an estimated liability for the IRS compliance fee related to foreign withholding tax claims, which is disclosed in the statement of assets and liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.

8. LEGAL PROCEEDINGS

On June 16, 2016, investors (the “Plaintiffs”) 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 putative 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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

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.

60 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 MSCI Denmark Capped ETF, iShares MSCI Finland Capped ETF,

iShares MSCI Germany Small-Cap ETF, iShares MSCI Ireland Capped ETF,

iShares MSCI New Zealand Capped ETF and iShares MSCI Norway Capped 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 MSCI Denmark Capped ETF, iShares MSCI Finland Capped ETF, iShares MSCI Germany Small-Cap ETF, iShares MSCI Ireland Capped ETF, iShares MSCI New Zealand Capped ETF and iShares MSCI Norway Capped ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 61

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:

iShares ETF	Qualified Dividend Income
MSCI Denmark Capped	$	1,418,900
MSCI Finland Capped		1,227,900
MSCI Germany Small-Cap		488,118
MSCI Ireland Capped		1,118,534
MSCI New Zealand Capped		8,079,565
MSCI Norway Capped		1,107,649

For the fiscal year ended August 31, 2017, the 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
MSCI Denmark Capped	$	1,418,397	$	214,080
MSCI Finland Capped		1,246,881		—
MSCI Germany Small-Cap		510,131		59,025
MSCI Ireland Capped		1,334,898		31,008
MSCI New Zealand Capped		8,591,452		1,253,083
MSCI Norway Capped		1,154,431		220,700

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

I. iShares MSCI Denmark Capped ETF, iShares MSCI Finland Capped ETF, iShares MSCI Germany Small-Cap ETF and iShares MSCI Norway Capped ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 63

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Funds to BlackRock, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 65

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI Ireland Capped ETF and iShares MSCI New Zealand Capped ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

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iSHARES^® TRUST

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Funds to BlackRock, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 67

Board Review and Approval of Investment Advisory

Contract (Continued)

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Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Funds to provide for an additional breakpoint as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

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Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 69

Supplemental Information (Unaudited)

iSHARES^® TRUST

Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.

Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

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
MSCI Finland Capped	$	1.161193	$	—	$	—	$	1.161193		100	%		—	%		—	%		100	%
MSCI Germany Small-Cap		0.703009		—		—		0.703009		100			—			—			100
MSCI New Zealand Capped		2.210109		—		—		2.210109		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 ask on the primary securities exchange on which 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 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.

70 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding 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. Each line in each 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 MSCI Denmark Capped ETF

Period Covered: January 25, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		1		0.07	%
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		8		0.58
Greater than 1.0% and Less than 1.5%		24		1.75
Greater than 0.5% and Less than 1.0%		190		13.89
Greater than 0.0% and Less than 0.5%		597		43.65
At NAV		20		1.46
Less than 0.0% and Greater than –0.5%		416		30.42
Less than –0.5% and Greater than –1.0%		79		5.77
Less than –1.0% and Greater than –1.5%		23		1.68
Less than –1.5% and Greater than –2.0%		6		0.44
Less than –2.0%		1		0.07
		1,368		100.00	%

iShares MSCI Finland Capped ETF

Period Covered: January 25, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		2		0.15	%
Greater than 2.0% and Less than 2.5%		2		0.15
Greater than 1.5% and Less than 2.0%		10		0.73
Greater than 1.0% and Less than 1.5%		32		2.34
Greater than 0.5% and Less than 1.0%		186		13.60
Greater than 0.0% and Less than 0.5%		591		43.20
At NAV		12		0.88
Less than 0.0% and Greater than –0.5%		424		30.99
Less than –0.5% and Greater than –1.0%		82		5.99
Less than –1.0% and Greater than –1.5%		20		1.46
Less than –1.5% and Greater than –2.0%		3		0.22
Less than –2.0%		4		0.29
		1,368		100.00	%

SUPPLEMENTAL INFORMATION 71

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI Germany Small-Cap ETF

Period Covered: January 25, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		1		0.07	%
Greater than 2.0% and Less than 2.5%		1		0.07
Greater than 1.5% and Less than 2.0%		7		0.51
Greater than 1.0% and Less than 1.5%		25		1.83
Greater than 0.5% and Less than 1.0%		156		11.40
Greater than 0.0% and Less than 0.5%		552		40.36
At NAV		21		1.54
Less than 0.0% and Greater than –0.5%		494		36.11
Less than –0.5% and Greater than –1.0%		94		6.87
Less than –1.0% and Greater than –1.5%		14		1.02
Less than –1.5% and Greater than –2.0%		1		0.07
Less than –2.0% and Greater than –2.5%		2		0.15
		1,368		100.00	%

iShares MSCI Ireland Capped ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		1		0.07	%
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		27		1.95
Greater than 1.5% and Less than 2.0%		134		9.69
Greater than 1.0% and Less than 1.5%		307		22.20
Greater than 0.5% and Less than 1.0%		250		18.08
Greater than 0.0% and Less than 0.5%		241		17.43
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		329		23.79
Less than –0.5% and Greater than –1.0%		61		4.41
Less than –1.0% and Greater than –1.5%		7		0.51
Less than –1.5% and Greater than –2.0%		5		0.36
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –2.5%		1		0.07
		1,383		100.00	%

72 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI New Zealand Capped ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.0% and Less than 2.5%		2		0.14	%
Greater than 1.5% and Less than 2.0%		7		0.51
Greater than 1.0% and Less than 1.5%		29		2.10
Greater than 0.5% and Less than 1.0%		158		11.42
Greater than 0.0% and Less than 0.5%		539		38.98
At NAV		17		1.23
Less than 0.0% and Greater than –0.5%		454		32.83
Less than –0.5% and Greater than –1.0%		140		10.12
Less than –1.0% and Greater than –1.5%		27		1.95
Less than –1.5% and Greater than –2.0%		6		0.43
Less than –2.0% and Greater than –2.5%		3		0.22
Less than –2.5% and Greater than –3.0%		1		0.07
		1,383		100.00	%

iShares MSCI Norway Capped ETF

Period Covered: January 23, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		4		0.29	%
Greater than 2.0% and Less than 2.5%		4		0.29
Greater than 1.5% and Less than 2.0%		15		1.09
Greater than 1.0% and Less than 1.5%		42		3.07
Greater than 0.5% and Less than 1.0%		204		14.89
Greater than 0.0% and Less than 0.5%		500		36.51
At NAV		15		1.09
Less than 0.0% and Greater than –0.5%		403		29.42
Less than –0.5% and Greater than –1.0%		119		8.69
Less than –1.0% and Greater than –1.5%		43		3.14
Less than –1.5% and Greater than –2.0%		15		1.09
Less than –2.0% and Greater than –2.5%		4		0.29
Less than –2.5%		2		0.14
		1,370		100.00	%

SUPPLEMENTAL INFORMATION 73

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 344 funds (as of August 31, 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.

74 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).	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 (14 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); Equity Plus Committee Chair (since 2017).	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 (62)	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); 15(c) Committee Chair (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 (56)	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 75

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 (53)	Trustee (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); 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).

76 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 (42)	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 (42)	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 (55)	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 of 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 77

Notes:

78 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 MSCI 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-808-0817

AUGUST 31, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares MSCI India ETF  |  INDA  |  BATS

^Ø  iShares MSCI India Small-Cap ETF  |  SMIN  |  BATS

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	10
Shareholder Expenses	10
Consolidated Schedules of Investments	11
iShares MSCI India ETF	11
iShares MSCI India Small-Cap ETF	14
Consolidated Financial Statements	20
Consolidated Financial Highlights	23
Notes to Consolidated Financial Statements	25
Report of Independent Registered Public Accounting Firm	33
Tax Information	34
Board Review and Approval of Investment Advisory Contract	35
Supplemental Information	42
Trustee and Officer Information	45

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended August 31, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 17.11% in U.S. dollar terms for the reporting period.

The primary factor behind the robust performance of global equity markets was improving global economic growth, driven largely by the continuation of accommodative monetary policies from many of the world’s central banks. Signs of stronger economic activity in Europe emerged as the European Central Bank (“ECB”) maintained policies such as quantitative easing and negative interest rates. Economic growth rates in China and Japan, the largest economies in Asia, also increased during the reporting period, reflecting efforts by the People’s Bank of China (“PBOC”) and the Bank of Japan (“BOJ”) to stimulate economic activity. Stronger economic growth led several central banks to consider reducing their economic stimulus measures. For example, late in the reporting period, the ECB discussed the possibility of tapering its quantitative easing program, while the PBOC increased short-term interest rates during the first half of 2017.

On a regional basis, European equity markets posted the best returns among developed markets, advancing by approximately 20% in U.S. dollar terms for the reporting period. European stocks benefited from improving economic conditions and stronger corporate earnings. In addition, election outcomes in France and the Netherlands eased investor concerns about nationalist presidential candidates and their opposition to the European Union (“E.U.”). Currency fluctuations also contributed meaningfully to European equity performance in U.S. dollar terms as the euro appreciated by approximately 6% against the U.S. dollar during the reporting period. The best-performing European stock markets included Austria, Italy, and Spain, while Ireland and Belgium posted the weakest returns.

Equity markets in the Asia-Pacific region gained about 16% in U.S. dollar terms for the reporting period, led by Singapore and Hong Kong. Japanese stocks also posted strong returns, benefiting from improving consumer spending and employment trends that contributed to the ongoing recovery in the Japanese economy. However, equity market returns in Japan were hindered by a decline in the Japanese yen, which depreciated by approximately 6% against the U.S. dollar.

The U.S. stock market returned approximately 15% for the reporting period. Despite mixed U.S. economic data, U.S. stocks advanced initially in anticipation of pro-business fiscal policies from the new presidential administration. Although the administration struggled to implement its fiscal agenda, stocks continued to move higher as better global economic conditions led to a notable improvement in corporate earnings growth, particularly for multinational companies with significant operations outside of the U.S. U.S. stocks advanced despite three short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the reporting period, which increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to start reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017.

Emerging markets stocks outperformed those in developed markets, returning more than 23% in U.S. dollar terms for the reporting period. Emerging markets in Eastern Europe were the best performers, led by Poland, Greece, and Hungary. Equity markets in the Middle East trailed for the reporting period amid continued geopolitical conflict in the region.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® MSCI INDIA ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.27%		16.14%		17.46%		16.27%		16.14%		17.46%
5 Years		9.63%		9.55%		10.34%		58.33%		57.81%		63.58%
Since Inception		6.16%		6.09%		6.87%		39.59%		39.08%		44.84%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 2/2/12. The first day of secondary market trading was 2/3/12.

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 10 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,158.30	$	3.70	$	1,000.00	$	1,021.80	$	3.47		0.68%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance  (Continued)

iSHARES^® MSCI INDIA ETF

The iShares MSCI India ETF (the “Fund”) seeks to track the investment results of an index composed of Indian equities, as represented by the MSCI India 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 August 31, 2017, the total return for the Fund was 16.27%, net of fees, while the total return for the Index was 17.46%.

The rate of India’s economic growth declined during the reporting period as falling investments, a decline in consumer spending, and a contraction in the manufacturing sector contributed to the weakness in the Indian economy. Nonetheless, the stock market in India reached all-time highs during the reporting period amid government-driven economic reforms, including the implementation of a new goods and services tax and a demonetization campaign. Additionally, the stock market benefited from India’s central bank implementing two interest rate reductions to stimulate economic activity.

The financials sector, the largest sector in the Index, representing about 22% of the Index on average during the reporting period, contributed the most to the Index’s return. The banks industry was the most significant contributor to performance in the financials sector, benefiting from consolidation within the industry.

The energy sector also contributed meaningfully to the Index’s performance for the reporting period, helped primarily by the oil, gas, and consumable fuels industry. Other contributors to the Index’s return included the materials, consumer staples, industrials, and consumer discretionary sectors.

In contrast, the healthcare sector was the only sector to detract from the Index’s performance for the reporting period, largely due to weakness among pharmaceuticals companies amid a challenging pricing environment.

The Indian rupee, which appreciated approximately 4% relative to the U.S. dollar during the reporting period, contributed to the Index’s performance as returns on Indian investments were higher when translated into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	24.97	%
Information Technology	13.83
Energy	12.11
Consumer Discretionary	12.00
Materials	10.38
Consumer Staples	9.24
Health Care	6.36
Industrials	6.09
Telecommunication Services	3.03
Utilities	1.99
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Housing Development Finance Corp. Ltd.	9.55	%
Reliance Industries Ltd.	7.38
Infosys Ltd.	5.99
Tata Consultancy Services Ltd.	4.08
ITC Ltd.	3.41
Axis Bank Ltd.	2.98
Maruti Suzuki India Ltd.	2.90
Hindustan Unilever Ltd.	2.82
ICICI Bank Ltd.	2.52
Yes Bank Ltd.	2.13
TOTAL	43.76	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® MSCI INDIA SMALL-CAP ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		29.97%		30.31%		31.61%		29.97%		30.31%		31.61%
5 Years		18.20%		18.04%		19.10%		130.73%		129.21%		139.63%
Since Inception		12.73%		12.74%		13.44%		94.79%		94.88%		101.65%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.

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 10 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,201.50	$	4.16	$	1,000.00	$	1,021.40	$	3.82		0.75%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance  (Continued)

iSHARES^® MSCI INDIA SMALL-CAP ETF

The iShares MSCI India Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Indian equities, as represented by the MSCI India Small Cap 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 August 31, 2017, the total return for the Fund was 29.97%, net of fees, while the total return for the Index was 31.61%.

The rate of India’s economic growth declined during the reporting period as falling investments, a decline in consumer spending, and a contraction in the manufacturing sector contributed to the weakness in the Indian economy. Nonetheless, the stock market in India reached all-time highs during the reporting period amid government-driven economic reforms, including the implementation of a new goods and services tax (“GST”) and a demonetization campaign. Additionally, the stock market benefited from India’s central bank implementing two interest rate reductions to stimulate economic activity.

The financials sector, which represented about 19% of the Index on average during the reporting period, contributed the most to the Index’s return, largely due to strength in the diversified financials industry. The industry benefited from robust returns for investment banking and brokerage stocks. In addition, small-capitalization banks helped the Index’s performance amid consolidation within the industry. The consumer discretionary sector also contributed significantly to the Index’s return, primarily due to the autos and components industry, which benefited from improved sales amid lower prices following the implementation of the GST.

In contrast, the telecommunication services sector was the only sector to detract from the Index’s performance for the reporting period. Telecommunication services stocks faced significant competition, narrowing profit margins, and substantial debt levels.

The Indian rupee, which appreciated approximately 4% relative to the U.S. dollar for the reporting period, contributed to the Index’s performance as returns on Indian investments were higher when translated into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Consumer Discretionary	21.46	%
Financials	20.53
Industrials	15.91
Materials	12.47
Health Care	8.49
Information Technology	7.04
Utilities	5.47
Consumer Staples	3.76
Real Estate	2.58
Telecommunication Services	1.15
Energy	1.14
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Federal Bank Ltd.	2.37	%
Page Industries Ltd.	1.48
L&T Finance Holdings Ltd.	1.33
Edelweiss Financial Services Ltd.	1.25
Crompton Greaves Consumer Electricals Ltd.	1.25
Reliance Capital Ltd.	1.24
Vakrangee Ltd.	1.24
Max Financial Services Ltd.	1.20
Dewan Housing Finance Corp. Ltd.	1.08
IIFL Holdings Ltd.	1.05
TOTAL	13.49	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

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 March 1, 2017 and held through August 31, 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.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI INDIA ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.95%
AUTO COMPONENTS — 1.69%
Bharat Forge Ltd.		1,254,767	$	22,136,857
Bosch Ltd.		87,753		30,181,774
Motherson Sumi Systems Ltd.		7,563,720		36,454,226
				88,772,857
AUTOMOBILES — 8.65%
Bajaj Auto Ltd.		1,005,061		44,250,119
Hero Motocorp Ltd.		597,951		37,369,219
Mahindra & Mahindra Ltd.		4,463,016		93,887,316
Maruti Suzuki India Ltd.		1,266,214		152,523,066
Tata Motors Ltd.a		18,934,103		111,529,081
Tata Motors Ltd. Class Aa		4,567,884		15,630,897
				455,189,698
BANKS — 9.60%
Axis Bank Ltd.		20,053,652		156,959,694
ICICI Bank Ltd.		28,378,215		132,310,703
IDFC Bank Ltd.		16,277,061		13,966,044
State Bank of India		20,675,746		89,833,036
Yes Bank Ltd.		4,091,082		112,189,770
				505,259,247
BEVERAGES — 0.53%
United Spirits Ltd.a		696,258		27,696,204
				27,696,204
CHEMICALS — 2.24%
Asian Paints Ltd.		3,446,347		62,998,045
UPL Ltd.		4,250,060		55,051,911
				118,049,956
CONSTRUCTION & ENGINEERING — 1.92%
Larsen & Toubro Ltd.		5,698,397		101,289,981
				101,289,981
CONSTRUCTION MATERIALS — 4.06%
ACC Ltd.		539,880		15,203,754
Ambuja Cements Ltd.		7,134,744		31,289,577
Grasim Industries Ltd.		3,935,853		73,586,853
Shree Cement Ltd.		100,165		27,563,130
Ultratech Cement Ltd.		1,051,977		65,830,997
				213,474,311
CONSUMER FINANCE — 1.99%
Bajaj Finance Ltd.		1,975,628		55,069,263
Mahindra & Mahindra Financial Services Ltd.		3,338,151		22,323,531

Security	Shares		Value
Shriram Transport Finance Co. Ltd.		1,766,519	$	27,219,198
				104,611,992
DIVERSIFIED FINANCIAL SERVICES — 1.00%
Aditya Birla Capital Ltd.a		5,577,196		16,186,919
Power Finance Corp. Ltd.		7,589,929		14,496,863
Rural Electrification Corp. Ltd.		8,279,186		21,829,167
				52,512,949
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.74%
Bharti Infratel Ltd.		6,645,660		39,005,126
				39,005,126
ELECTRIC UTILITIES — 0.31%
Tata Power Co. Ltd.		13,283,309		16,467,451
				16,467,451
ELECTRICAL EQUIPMENT — 0.70%
Bharat Heavy Electricals Ltd.		7,036,397		14,188,093
Havells India Ltd.		2,993,748		22,870,055
				37,058,148
FOOD PRODUCTS — 0.59%
Nestle India Ltd.		277,150		30,873,928
				30,873,928
GAS UTILITIES — 0.68%
GAIL (India) Ltd.		6,076,976		35,962,067
				35,962,067
HEALTH CARE PROVIDERS & SERVICES — 0.32%
Apollo Hospitals Enterprise Ltd.a		999,884		16,933,176
				16,933,176
HOUSEHOLD PRODUCTS — 2.82%
Hindustan Unilever Ltd.		7,775,819		148,367,144
				148,367,144
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.99%
NTPC Ltd.		19,750,440		52,136,441
				52,136,441
INDUSTRIAL CONGLOMERATES — 0.33%
Siemens Ltd.		853,127		17,148,952
				17,148,952
INSURANCE — 0.75%
Bajaj Finserv Ltd.		457,444		39,377,340
				39,377,340
IT SERVICES — 13.83%
HCL Technologies Ltd.		6,829,520		92,443,775
Infosys Ltd.		22,006,286		314,966,883

CONSOLIDATED SCHEDULES OF INVESTMENTS 11

Consolidated Schedule of Investments(Continued)

iSHARES^® MSCI INDIA ETF

August 31, 2017

Security	Shares		Value
Tata Consultancy Services Ltd.		5,502,103	$	214,859,697
Tech Mahindra Ltd.		5,596,253		37,481,252
Wipro Ltd.		14,556,559		68,107,650
				727,859,257
MACHINERY — 1.93%
Ashok Leyland Ltd.		13,634,725		22,843,182
Eicher Motors Ltd.		159,720		78,580,079
				101,423,261
MEDIA — 0.98%
Zee Entertainment Enterprises Ltd.		6,326,564		51,413,151
				51,413,151
METALS & MINING — 4.07%
Hindalco Industries Ltd.		13,970,406		52,012,380
JSW Steel Ltd.		10,132,819		40,324,425
Tata Steel Ltd.		3,605,839		35,989,998
Vedanta Ltd.		17,810,477		86,062,558
				214,389,361
OIL, GAS & CONSUMABLE FUELS — 12.10%
Bharat Petroleum Corp. Ltd.		9,092,895		75,245,170
Coal India Ltd.		8,178,115		30,370,689
Hindustan Petroleum Corp. Ltd.		7,300,185		55,768,099
Indian Oil Corp. Ltd.		6,978,973		49,640,625
Oil & Natural Gas Corp. Ltd.		15,370,109		37,736,277
Reliance Industries Ltd.		15,564,070		388,211,563
				636,972,423
PERSONAL PRODUCTS — 1.89%
Dabur India Ltd.		6,329,370		31,198,212
Godrej Consumer Products Ltd.		2,855,496		41,510,528
Marico Ltd.		5,409,294		26,692,664
				99,401,404
PHARMACEUTICALS — 6.03%
Aurobindo Pharma Ltd.		3,153,851		35,780,771
Cadila Healthcare Ltd.		2,452,458		19,181,932
Cipla Ltd.		4,143,067		37,064,901
Dr. Reddy’s Laboratories Ltd.		1,369,052		43,279,830
Glenmark Pharmaceuticals Ltd.		1,656,105		15,779,645
Lupin Ltd.		2,649,658		40,596,899
Piramal Enterprises Ltd.		930,040		39,480,644
Sun Pharmaceuticals Industries Ltd.		11,493,289		86,505,872
				317,670,494
ROAD & RAIL — 0.19%
Container Corp. of India Ltd.		496,382		10,248,913
				10,248,913

Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 0.68%
Titan Co. Ltd.		3,721,583	$	35,925,598
				35,925,598
THRIFTS & MORTGAGE FINANCE — 11.63%
Housing Development Finance Corp. Ltd.		18,071,259		502,310,396
Indiabulls Housing Finance Ltd.		3,806,655		72,380,111
LIC Housing Finance Ltd.		3,566,111		37,590,565
				612,281,072
TOBACCO — 3.41%
ITC Ltd.		40,676,503		179,596,686
				179,596,686
TRANSPORTATION INFRASTRUCTURE — 1.01%
Adani Ports & Special Economic Zone Ltd.		8,680,976		53,361,326
				53,361,326
WIRELESS TELECOMMUNICATION SERVICES — 2.29%
Bharti Airtel Ltd.		14,362,049		96,089,605
Idea Cellular Ltd.		17,272,997		24,493,801
				120,583,406
TOTAL COMMON STOCKS
(Cost: $4,190,906,426)				5,261,313,320
SHORT-TERM INVESTMENTS — 0.38%
MONEY MARKET FUNDS — 0.38%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		20,118,019		20,118,019
				20,118,019
TOTAL SHORT-TERM INVESTMENTS
(Cost: $20,118,019)				20,118,019
TOTAL INVESTMENTS IN SECURITIES — 100.33%
(Cost: $4,211,024,445)d				5,281,431,339
Other Assets, Less Liabilities — (0.33)%				(17,612,826	)
NET ASSETS — 100.00%			$	5,263,818,513

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $4,414,639,737. Net unrealized appreciation was $866,791,602, of which $1,251,733,654 represented gross unrealized appreciation on investments and $384,942,052 represented gross unrealized depreciation on investments.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments(Continued)

iSHARES^® MSCI INDIA ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		—		20,118,019	b		—		20,118,019	$	20,118,019	$	314	$	—	$	40,503

^a  Includes realized capital gain distribultions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the consolidated schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	5,245,126,401	$	16,186,919	$	—	$	5,261,313,320
Money market funds		20,118,019		—		—		20,118,019
Total	$	5,265,244,420	$	16,186,919	$	—	$	5,281,431,339

See notes to consolidated financial statements.

CONSOLIDATED SCHEDULES OF INVESTMENTS 13

Consolidated Schedule of Investments

iSHARES^® MSCI INDIA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.95%
AIR FREIGHT & LOGISTICS — 0.43%
Allcargo Logistics Ltd.		97,811	$	256,361
Blue Dart Express Ltd.		9,505		632,656
				889,017
AIRLINES — 0.49%
Jet Airways India Ltd.a		45,061		407,779
SpiceJet Ltd.a		288,675		590,886
				998,665
AUTO COMPONENTS — 5.59%
Apollo Tyres Ltd.		457,727		1,814,404
Asahi India Glass Ltd.		117,181		683,092
Balkrishna Industries Ltd.		77,341		1,897,162
Ceat Ltd.		36,462		972,890
Endurance Technologies Ltd.b		56,159		876,125
Exide Industries Ltd.		406,875		1,252,902
JK Tyre & Industries Ltd.		108,313		249,831
Mahindra CIE Automotive Ltd.a		151,756		571,522
Sundram Fasteners Ltd.		101,073		641,605
Tube Investments of India Ltd.		143,201		1,776,845
WABCO India Ltd.		9,118		782,970
				11,519,348
AUTOMOBILES — 1.04%
TVS Motor Co. Ltd.		227,840		2,151,651
				2,151,651
BANKS — 6.21%
Allahabad Banka		313,992		340,141
Andhra Bank		270,115		221,201
Canara Bank Ltd.		238,672		1,268,474
DCB Bank Ltd.		301,124		865,317
Federal Bank Ltd.		2,877,103		4,876,465
Jammu & Kashmir Bank Ltd. (The)		389,099		482,370
Karnataka Bank Ltd. (The)		277,281		657,133
Karur Vysya Bank Ltd. (The)		488,136		1,086,592
Oriental Bank of Commercea		137,327		272,071
RBL Bank Ltd.b		180,215		1,535,286
Syndicate Banka		274,031		276,705
Union Bank of Indiaa		274,405		585,071
Vijaya Bank		302,600		322,594
				12,789,420
BIOTECHNOLOGY — 0.74%
Biocon Ltd.		288,627		1,521,555
				1,521,555

Security	Shares		Value
BUILDING PRODUCTS — 2.16%
Astral Polytechnik Ltd.		57,572	$	618,217
Blue Star Ltd.		46,102		551,194
Cera Sanitaryware Ltd.		9,377		422,335
Kajaria Ceramics Ltd.		127,092		1,395,350
Sintex Plastics Technology Ltd.a		679,857		1,097,002
Somany Ceramics Ltd.		29,548		367,696
				4,451,794
CAPITAL MARKETS — 5.41%
BSE Ltd.		25,937		394,900
Care Ratings Ltd.		41,281		957,371
CRISIL Ltd.		35,600		1,053,667
Edelweiss Financial Services Ltd.		667,589		2,582,059
IIFL Holdings Ltd.		222,767		2,163,333
Indiabulls Ventures Ltd.		220,638		758,110
JM Financial Ltd.		381,481		800,841
Motilal Oswal Financial Services Ltd.		68,975		1,320,399
Multi Commodity Exchange of India Ltd.		34,730		571,261
PTC India Financial Services Ltd.		305,181		181,888
Tata Investment Corp. Ltd.		26,344		349,461
				11,133,290
CHEMICALS — 6.96%
Aarti Industriesa		39,475		536,090
Advanced Enzyme Technologies Ltd.a		54,290		244,757
Akzo Nobel India Ltd.		18,691		531,232
Atul Ltd.		14,286		488,050
BASF India Ltd.		20,834		493,064
Bayer CropScience Ltd./India		16,910		1,057,459
Coromandel International Ltd.		139,908		969,105
Dhanuka Agritech Ltd.		23,407		251,769
EID Parry India Ltd.		109,439		554,246
Finolex Industries Ltd.		59,803		571,684
Godrej Industries Ltd.		134,301		1,286,470
Gujarat Fluorochemicals Ltd.a		52,854		591,780
Gujarat Narmada Valley Fertilizers & Chemicals Ltd.		118,538		557,679
Kansai Nerolac Paints Ltd.		258,278		2,054,871
Monsanto India Ltd.		8,307		322,268
PI Industries Ltd.		109,826		1,239,889
Rallis India Ltd.		92,649		329,283
SH Kelkar & Co. Ltd.b		34,977		130,139
Sharda Cropchem Ltd.		43,076		298,881

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments  (Continued)

iSHARES^® MSCI INDIA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
Supreme Industries Ltd.		76,184	$	1,431,945
Vinati Organics Ltd.		24,653		395,327
				14,335,988
COMMUNICATIONS EQUIPMENT — 0.32%
Sterlite Technologies Ltd.		192,215		663,907
				663,907
CONSTRUCTION & ENGINEERING — 4.80%
Ashoka Buildcon Ltd.		89,178		272,655
Dilip Buildcon Ltd.a,b		65,930		622,984
Engineers India Ltd.		323,950		788,005
Gayatri Projects Ltd.		178,398		492,277
GE Power India Ltd.		32,129		332,768
GMR Infrastructure Ltd.a		4,221,982		1,135,967
Hindustan Construction Co. Ltd.a		1,012,198		549,434
IRB Infrastructure Developers Ltd.		315,555		1,056,848
Kalpataru Power Transmission Ltd.		73,247		421,370
KEC International Ltd.		123,969		606,210
NCC Ltd./India		723,663		955,431
PNC Infratech Ltd.		122,286		263,027
Sadbhav Engineering Ltd.		167,418		758,440
Voltas Ltd.		198,405		1,628,643
				9,884,059
CONSTRUCTION MATERIALS — 3.59%
Birla Corp. Ltd.		37,130		563,401
Century Textiles & Industries Ltd.		53,578		1,039,146
Dalmia Bharat Ltd.a		42,809		1,816,894
HeidelbergCement India Ltd.a		107,591		207,688
India Cements Ltd. (The)		338,427		942,336
JK Cement Ltd.		33,719		530,157
JK Lakshmi Cement Ltd.		59,244		394,381
Orient Cement Ltd.		99,769		237,927
Prism Cement Ltd.a		243,011		417,207
Ramco Cements Ltd. (The)		114,098		1,232,966
				7,382,103
CONSUMER FINANCE — 2.62%
Bharat Financial Inclusion Ltd.a		52,609		723,673
Manappuram Finance Ltd.		826,553		1,283,928
Muthoot Finance Ltd.		192,062		1,430,860
Repco Home Finance Ltd.		61,403		624,056
Sundaram Finance Ltd.		53,222		1,332,793
				5,395,310
CONTAINERS & PACKAGING — 0.32%
Essel Propack Ltd.		75,027		317,590

Security	Shares		Value
HSIL Ltd.		57,583	$	351,211
				668,801
DIVERSIFIED FINANCIAL SERVICES — 3.02%
IFCI Ltd.a		1,169,807		437,354
L&T Finance Holdings Ltd.		871,755		2,731,468
Reliance Capital Ltd.		202,119		2,546,159
SREI Infrastructure Finance Ltd.		253,231		508,037
				6,223,018
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.80%
Himachal Futuristic Communications Ltd.a		873,446		245,257
Tata Communications Ltd.		137,149		1,398,603
				1,643,860
ELECTRIC UTILITIES — 2.92%
Adani Transmissions Ltd.a		528,736		1,050,834
CESC Ltd.		132,432		2,104,162
Reliance Infrastructure Ltd.		262,817		2,093,656
Torrent Power Ltd.		231,037		759,507
				6,008,159
ELECTRICAL EQUIPMENT — 2.59%
Amara Raja Batteries Ltd.		40,706		495,562
CG Power and Industrial Solutions Ltd.a		750,425		943,222
Finolex Cables Ltd.		137,861		1,159,908
GE T&D India Ltd.		123,084		786,721
Schneider Electric Infrastructure Ltd.a		94,696		182,352
Suzlon Energy Ltd.a		4,589,080		1,170,130
V-Guard Industries Ltd.		203,993		594,017
				5,331,912
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.58%
Redington India Ltd.		519,373		1,204,061
				1,204,061
FOOD PRODUCTS — 2.30%
Avanti Feeds Ltd.		21,846		631,343
Balrampur Chini Mills Ltd.		235,680		633,199
Kaveri Seed Co. Ltd.		55,416		482,242
KRBL Ltd.a		94,474		695,924
McLeod Russel India Ltd.		86,508		238,172
Tata Global Beverages Ltd.		592,611		1,835,505
Zydus Wellness Ltd.		15,575		211,650
				4,728,035

CONSOLIDATED SCHEDULES OF INVESTMENTS 15

Consolidated Schedule of Investments  (Continued)

iSHARES^® MSCI INDIA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
GAS UTILITIES — 1.16%
Gujarat Gas Ltd.		66,186	$	806,537
Gujarat State Petronet Ltd.		270,131		807,102
Mahanagar Gas Ltd.		47,526		776,051
				2,389,690
HEALTH CARE PROVIDERS & SERVICES — 0.71%
Dr Lal PathLabs Ltd.b		33,440		424,079
Max India Ltd.a		262,628		574,135
Narayana Hrudayalaya Ltd.a		98,492		458,901
				1,457,115
HOTELS, RESTAURANTS & LEISURE — 2.70%
Cox & Kings Ltd.		159,125		655,903
Delta Corp. Ltd.		127,448		387,370
EIH Ltd.		286,775		603,371
Indian Hotels Co. Ltd. (The)		790,647		1,469,950
Jubilant Foodworks Ltd.		65,949		1,438,625
Mahindra Holidays & Resorts India Ltd.		64,100		360,878
Thomas Cook India Ltd.		176,290		634,549
				5,550,646
HOUSEHOLD DURABLES — 2.83%
Bajaj Electricals Ltd.		48,327		263,157
Crompton Greaves Consumer Electricals Ltd.		751,872		2,577,544
Johnson Controls-Hitachi Air Conditioning India Ltd.		12,994		403,716
LA Opala RG Ltd.		27,056		204,127
Symphony Ltd.		33,630		664,617
TTK Prestige Ltd.		5,595		548,059
Videocon Industries Ltd.a		138,405		39,621
Whirlpool of India Ltd.a		60,787		1,124,050
				5,824,891
HOUSEHOLD PRODUCTS — 0.42%
Eveready Industries India Ltd.a		71,783		341,082
Jyothy Laboratories Ltd.		87,611		525,587
				866,669
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 1.14%
Adani Power Ltd.a		1,842,167		961,049
PTC India Ltd.		356,712		667,375
Reliance Power Ltd.a		1,123,484		710,896
				2,339,320

Security	Shares		Value
INDUSTRIAL CONGLOMERATES — 0.40%
Jaiprakash Associates Ltd.a		2,195,934	$	820,990
				820,990
INSURANCE — 1.20%
Max Financial Services Ltd.		261,838		2,463,912
				2,463,912
INTERNET & DIRECT MARKETING RETAIL — 0.29%
Infibeam Incorporation Ltd.		258,240		604,534
				604,534
INTERNET SOFTWARE & SERVICES — 1.09%
Info Edge India Ltd.		121,129		1,823,295
Just Dial Ltd.a		70,009		428,533
				2,251,828
IT SERVICES — 4.23%
eClerx Services Ltd.		39,835		787,680
Hexaware Technologies Ltd.		178,182		761,492
Larsen & Toubro Infotech Ltd.b		68,333		806,137
MindTree Ltd.		201,478		1,452,946
Mphasis Ltd.		168,210		1,602,733
Persistent Systems Ltd.		78,520		764,488
Vakrangee Ltd.		317,463		2,542,634
				8,718,110
LIFE SCIENCES TOOLS & SERVICES — 1.20%
Dishman Pharmaceuticals & Chemicals Ltd.		39,481		186,022
Divi’s Laboratories Ltd.a		159,183		1,734,108
Syngene International Ltd.b		80,117		558,584
				2,478,714
MACHINERY — 3.54%
AIA Engineering Ltd.		75,383		1,546,073
BEML Ltd.		20,060		553,338
Carborundum Universal Ltd.		90,968		502,751
Escorts Ltd.		110,494		1,118,832
Force Motors Ltd.a		6,334		381,108
Greaves Cotton Ltd.		116,323		280,316
ISGEC Heavy Engineering Ltd.		3,542		333,975
Jain Irrigation Systems Ltd.		580,529		894,955
Lakshmi Machine Works Ltd.		5,266		502,598
Thermax Ltd.		57,283		796,704
Timken India Ltd.		32,930		370,710
				7,281,360
MARINE — 0.17%
Shipping Corp. of India Ltd.a		222,767		348,301
				348,301

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments(Continued)

iSHARES^® MSCI INDIA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
MEDIA — 1.75%
Chennai Super Kings Cricket Ltd.		206,787	$	7,278
Dish TV India Ltd.a		640,090		796,029
Inox Leisure Ltd.a		86,419		334,314
Jagran Prakashan Ltd.a		170,778		476,860
Navneet Education Ltd.		111,428		286,387
PVR Ltd.		46,811		967,652
SITI Networks Ltd.a		519,048		202,581
TV18 Broadcast Ltd.a		895,648		534,506
				3,605,607
METALS & MINING — 1.27%
Jindal Steel & Power Ltd.a		640,292		1,373,208
MOIL Ltd.		63,546		359,051
National Aluminium Co. Ltd.		774,080		874,872
				2,607,131
MULTILINE RETAIL — 1.03%
Future Retail Ltd.a		226,416		1,895,411
Shoppers Stop Ltd.		39,872		224,664
				2,120,075
OIL, GAS & CONSUMABLE FUELS — 1.14%
Aegis Logistics Ltd.		161,129		478,021
Chennai Petroleum Corp. Ltd.		71,912		504,358
Great Eastern Shipping Co. Ltd. (The)		163,095		1,017,331
Gujarat Mineral Development Corp. Ltd.		154,059		341,972
				2,341,682
PAPER & FOREST PRODUCTS — 0.33%
Century Plyboards India Ltd.		107,204		423,609
Greenply Industries Ltd.		59,401		254,650
				678,259
PERSONAL PRODUCTS — 0.85%
Bajaj Corp. Ltd.		103,543		642,869
Gillette India Ltd.		12,994		1,097,105
				1,739,974
PHARMACEUTICALS — 5.83%
Ajanta Pharma Ltd.		42,097		786,245
Alembic Pharmaceuticals Ltd.		90,624		736,177
FDC Ltd./India		84,906		218,553
Granules India Ltd.		106,655		213,056
Ipca Laboratories Ltd.		88,506		577,891
JB Chemicals & Pharmaceuticals Ltd.		40,997		176,619
Jubilant Life Sciences Ltd.		143,228		1,574,189

Security	Shares		Value
Laurus Labs Ltd.b		74,052	$	610,881
Marksans Pharma Ltd.		406,552		253,752
Natco Pharma Ltd.		156,327		1,758,262
Pfizer Ltd./India		21,992		625,689
Sanofi India Ltd.		11,036		699,074
Sequent Scientific Ltd.a		172,215		320,312
Shilpa Medicare Ltd.		48,293		453,873
Strides Shasun Ltd.		87,487		1,238,822
Sun Pharma Advanced Research Co. Ltd.a		123,820		748,426
Suven Life Sciences Ltd.		88,644		226,858
Unichem Laboratories Ltd.		71,347		272,938
Wockhardt Ltd.		55,542		521,698
				12,013,315
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.58%
Godrej Properties Ltd.a		103,685		939,918
Housing Development & Infrastructure Ltd.a		521,407		506,512
Indiabulls Real Estate Ltd.a		332,173		1,215,389
Oberoi Realty Ltd.a		203,543		1,213,115
Prestige Estates Projects Ltd.a		224,814		963,244
Sobha Ltd.		77,408		476,366
				5,314,544
ROAD & RAIL — 0.11%
VRL Logistics Ltd.		43,973		233,842
				233,842
SOFTWARE — 0.79%
KPIT Technologies Ltd.		277,489		505,916
NIIT Technologies Ltd.		60,386		470,940
Tata Elxsi Ltd.		14,976		384,168
Zensar Technologies Ltd.		21,360		265,437
				1,626,461
SPECIALTY RETAIL — 0.79%
Future Lifestyle Fashions Ltd.		75,739		426,820
PC Jeweller Ltd.		215,287		1,197,568
				1,624,388
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.01%
Ricoh India Ltd.a		9,870		29,868
				29,868
TEXTILES, APPAREL & LUXURY GOODS — 5.43%
Aditya Birla Fashion and Retail Ltd.a		369,754		988,787
Arvind Ltd.		252,976		1,466,975
Bata India Ltd.		61,827		658,492

CONSOLIDATED SCHEDULES OF INVESTMENTS 17

Consolidated Schedule of Investments  (Continued)

iSHARES^® MSCI INDIA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
Himatsingka Seide Ltd.		47,775	$	256,713
Indo Count Industries Ltd.		93,539		170,832
KPR Mill Ltd.		36,045		428,049
Page Industries Ltd.		10,949		3,039,857
Rajesh Exports Ltd.		147,562		1,717,387
Raymond Ltd.		52,935		643,530
SRF Ltd.		27,603		662,049
Vardhman Textiles Ltd.a		27,612		528,516
Welspun India Ltd.		503,830		611,205
				11,172,392
THRIFTS & MORTGAGE FINANCE — 2.06%
Can Fin Homes Ltd.		12,796		573,592
Dewan Housing Finance Corp. Ltd.		282,486		2,232,446
GRUH Finance Ltd.		175,686		1,433,081
				4,239,119
TOBACCO — 0.19%
Godfrey Phillips India Ltd.		24,997		399,905
				399,905
TRADING COMPANIES & DISTRIBUTORS — 0.64%
Adani Enterprises Ltd.		528,563		1,095,966
Kushal Tradelink Ltd.		120,935		229,569
				1,325,535
TRANSPORTATION INFRASTRUCTURE — 0.58%
Gateway Distriparks Ltd.		152,443		527,489
Gujarat Pipavav Port Ltd.		223,344		446,679
Navkar Corp. Ltd.a,b		67,907		210,011
				1,184,179

Security	Shares		Value
WATER UTILITIES — 0.25%
VA Tech Wabag Ltd.		53,548	$	514,612
				514,612
WIRELESS TELECOMMUNICATION SERVICES — 0.35%
Reliance Communications Ltd.a		1,994,320		726,895
				726,895
TOTAL COMMON STOCKS
(Cost: $164,308,320)				205,817,816
TOTAL INVESTMENTS IN SECURITIES — 99.95%				205,817,816
(Cost: $164,308,320)c
Other Assets, Less Liabilities — 0.05%				96,499
NET ASSETS — 100.00%			$	205,914,315

^a  Non-income earning security.

^b This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $170,724,590. Net unrealized appreciation was $35,093,226, of which $45,390,877 represented gross unrealized appreciation on investments and $10,297,651 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		—		—	b		—		—	$	—	$	3	$	—	$	1,475

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments(Continued)

iSHARES^® MSCI INDIA SMALL-CAP ETF

August 31, 2017

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 August 31, 2017. The breakdown of the Fund’s investments into major categories is disclosed in the consolidated schedule of investments above.

	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	203,817,803	$	2,000,013	$	—	$	205,817,816
Total	$	203,817,803	$	2,000,013	$	—	$	205,817,816

See notes to consolidated financial statements.

CONSOLIDATED SCHEDULES OF INVESTMENTS 19

Consolidated Statements of Assets and Liabilities

iSHARES^® TRUST

August 31, 2017

	iShares MSCI India ETF			iShares MSCI India Small-Cap ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	4,190,906,426		$	164,308,320
Affiliated (Note 2)		20,118,019			—
Total cost of investments in securities	$	4,211,024,445		$	164,308,320
Investments in securities, at fair value (Note 1):
Unaffiliated	$	5,261,313,320		$	205,817,816
Affiliated (Note 2)		20,118,019			—
Foreign currency, at valuea		1,836			66,768
Cash		2,494,292			537,048
Receivables:
Investment securities sold		66,571,610			745,365
Dividends and interest		2,283,844			80,200
Total Assets		5,352,782,921			207,247,197
LIABILITIES
Payables:
Investment securities purchased		2,370,993			647,165
Capital shares redeemed		68,328,116			—
Deferred foreign capital gains taxes (Note 1)		15,374,744			554,959
Investment advisory fees (Note 2)		2,890,555			130,758
Total Liabilities		88,964,408			1,332,882
NET ASSETS	$	5,263,818,513		$	205,914,315
Net assets consist of:
Paid-in capital	$	4,631,968,251		$	174,047,768
Undistributed net investment income		37,335,755			952,486
Accumulated net realized loss		(460,520,687	)		(10,040,084	)
Net unrealized appreciation		1,055,035,194			40,954,145
NET ASSETS	$	5,263,818,513		$	205,914,315
Shares outstandingb		153,900,000			4,450,000
Net asset value per share	$	34.20		$	46.27

^a  Cost of foreign currency: $1,836 and $66,692, respectively.

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

See notes to consolidated financial statements.

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Operations

iSHARES^® TRUST

Year ended August 31, 2017

	iShares MSCI India ETF			iShares MSCI India Small-Cap ETF
NET INVESTMENT INCOME
Dividends — unaffiliated	$	69,029,800		$	1,187,935
Dividends — affiliated (Note 2)		40,503			1,475
Miscellaneous income		4,750			—
Total investment income		69,075,053			1,189,410
EXPENSES
Investment advisory fees (Note 2)		28,822,712			912,540
Mauritius income taxes (Note 1)		1,505,182			9,456
Proxy fees		107,719			3,625
Total expenses		30,435,613			925,621
Net investment income		38,639,440			263,789
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(59,941,069	)		(918,396	)
Foreign currency transactions		(442,358	)		(70,012	)
Realized gain distributions from affiliated funds		314			3
Net realized loss		(60,383,113	)		(988,405	)
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliateda		743,661,651			29,505,313
Translation of assets and liabilities in foreign currencies		251,329			(104	)
Net change in unrealized appreciation/depreciation		743,912,980			29,505,209
Net realized and unrealized gain		683,529,867			28,516,804
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	722,169,307		$	28,780,593

^a Net of deferred foreign capital gains taxes of $15,374,744 and $554,959, respectively.

See notes to consolidated financial statements.

CONSOLIDATED FINANCIAL STATEMENTS 21

Consolidated Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares MSCI India ETF						iShares MSCI India Small-Cap ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	38,639,440		$	27,962,063		$	263,789		$	145,001
Net realized loss		(60,383,113	)		(189,404,289	)		(988,405	)		(3,611,870	)
Net change in unrealized appreciation/depreciation		743,912,980			397,184,729			29,505,209			9,981,771
Net increase in net assets resulting from operations		722,169,307			235,742,503			28,780,593			6,514,902
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(29,566,139	)		(47,587,162	)		(864,605	)		(1,347,936	)
Total distributions to shareholders		(29,566,139	)		(47,587,162	)		(864,605	)		(1,347,936	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		622,514,334			700,911,673			133,691,005			18,237,854
Cost of shares redeemed		(163,551,270	)		(360,176,432	)		(20,517,976	)		(21,453,214	)
Net increase (decrease) in net assets from capital share transactions		458,963,064			340,735,241			113,173,029			(3,215,360	)
INCREASE IN NET ASSETS		1,151,566,232			528,890,582			141,089,017			1,951,606
NET ASSETS
Beginning of year		4,112,252,281			3,583,361,699			64,825,298			62,873,692
End of year	$	5,263,818,513		$	4,112,252,281		$	205,914,315		$	64,825,298
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	37,335,755		$	6,057,574		$	952,486		$	(386,430	)
SHARES ISSUED AND REDEEMED
Shares sold		20,450,000			25,000,000			3,150,000			550,000
Shares redeemed		(5,450,000	)		(13,550,000	)		(500,000	)		(700,000	)
Net increase (decrease) in shares outstanding		15,000,000			11,450,000			2,650,000			(150,000	)

See notes to consolidated financial statements.

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI India ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	29.61		$	28.12		$	30.83		$	20.48		$	22.44
Income from investment operations:
Net investment incomea		0.26			0.22			0.45			0.40			0.41
Net realized and unrealized gain (loss)b		4.53			1.64			(2.92	)		10.12			(2.29	)
Total from investment operations		4.79			1.86			(2.47	)		10.52			(1.88	)
Less distributions from:
Net investment income		(0.20	)		(0.37	)		(0.24	)		(0.17	)		(0.08	)
Total distributions		(0.20	)		(0.37	)		(0.24	)		(0.17	)		(0.08	)
Net asset value, end of year	$	34.20		$	29.61		$	28.12		$	30.83		$	20.48
Total return		16.27	%		6.73	%		(8.05	)%		51.61	%		(8.47	)%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	5,263,819		$	4,112,252		$	3,583,362		$	1,456,894		$	206,812
Ratio of expenses to average net assets		0.68	%		0.71	%		0.68	%		0.68	%		0.67	%
Ratio of net investment income to average net assets		0.87	%		0.79	%		1.47	%		1.47	%		1.69	%
Portfolio turnover ratec		13	%		25	%		30	%		22	%		176	%

^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 include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 5%, 15%, 22%, 14% and 22%, respectively. See Note 4.

See notes to consolidated financial statements.

CONSOLIDATED FINANCIAL HIGHLIGHTS 23

Consolidated Financial Highlights  (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI India Small-Cap ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	36.01		$	32.24		$	31.44		$	15.49		$	21.19
Income from investment operations:
Net investment incomea		0.09			0.07			0.21			0.26			0.21
Net realized and unrealized gain (loss)b		10.55			4.36			0.69			15.84			(5.59	)
Total from investment operations		10.64			4.43			0.90			16.10			(5.38	)
Less distributions from:
Net investment income		(0.38	)		(0.66	)		(0.10	)		(0.15	)		(0.32	)
Total distributions		(0.38	)		(0.66	)		(0.10	)		(0.15	)		(0.32	)
Net asset value, end of year	$	46.27		$	36.01		$	32.24		$	31.44		$	15.49
Total return		29.97	%		13.99	%		2.87	%		104.53	%c		(25.98	)%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	205,914		$	64,825		$	62,874		$	11,003		$	2,324
Ratio of expenses to average net assets		0.75	%		0.80	%		0.74	%		0.74	%		0.74	%
Ratio of net investment income to average net assets		0.21	%		0.23	%		0.62	%		1.06	%		0.92	%
Portfolio turnover rated		38	%		53	%		73	%		54	%		26	%

^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  The total return disclosed is based on the net asset value (“NAV”) calculated daily for the creation and redemption of shares in the Fund, which may differ from the NAV calculated for financial reporting purposes. Based on the NAV calculated for financial reporting purposes, the total return for the Fund was 104.39%.

^d  Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 22%, 25%, 61%, 28% and 26%, respectively. See Note 4.

See notes to consolidated financial statements.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

iShares ETF	Diversification Classification
MSCI India	Non-diversified
MSCI India Small-Cap	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.

Each Fund carries out its investment strategies by investing substantially all of its assets in a wholly-owned subsidiary in the Republic of Mauritius (each, a “Subsidiary”), which in turn, invests in securities that comprise the underlying index. The investment adviser of each Fund also serves as the investment adviser to each Subsidiary. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The accompanying consolidated financial statements for each Fund include the accounts of its Subsidiary. Intercompany accounts and transactions, if any, have been eliminated.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 25

Notes to Consolidated Financial Statements  (Continued)

iSHARES^® TRUST

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”).

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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 to valuation techniques are categorized into a fair value 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

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements  (Continued)

iSHARES^® TRUST

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 consolidated 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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax 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 consolidated 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 August 31, 2017, if any, are disclosed in the Funds’ consolidated statements of assets and liabilities.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 27

Notes to Consolidated Financial Statements  (Continued)

iSHARES^® TRUST

Each Fund conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each Subsidiary must, on an annual basis, satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, each Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. Taxes on income, if any, are paid by the Subsidiary and are disclosed in the consolidated statements of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. Each Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

The DTAA provides that capital gains will be taxable in India with respect to the sale of shares acquired on or after April 1, 2017. Capital gains arising from shares acquired before April 1, 2017, regardless of when they are sold, will continue to be exempt from taxation under the amended DTAA, assuming requirements for eligibility under the DTAA are satisfied.

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.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Trust, BlackRock Fund Advisors (“BFA”) manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock, Inc. (“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).

Each Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. Each Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

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

Investment Advisory Fee			Average Daily Net Assets
	0.6500	%	First $4 billion
	0.6175		Over $4 billion, up to and including $6 billion
	0.5867		Over $6 billion, up to and including $8 billiona
	0.5573		Over $8 billiona

^a  Break level added or amended effective July 1, 2017.

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements  (Continued)

iSHARES^® TRUST

For its investment advisory services to the iShares MSCI India Small-Cap ETF, BFA is entitled to an annual investment advisory fee of 0.74%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.

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.

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 consolidated 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 BlackRock Institutional Trust Company, N.A. and/or BFA.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
MSCI India	$	1,045,094,190	$	568,861,180
MSCI India Small-Cap		160,317,895		46,929,286

There were no in-kind transactions (see Note 4) for the year ended August 31, 2017.

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 consolidated 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 consolidated statements of changes in net assets.

5. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 29

Notes to Consolidated Financial Statements  (Continued)

iSHARES^® TRUST

social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 consolidated 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: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country 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

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements  (Continued)

iSHARES^® TRUST

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 August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies and foreign currency transactions were reclassified to the following accounts:

iShares ETF	Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI India	$	22,204,880	$	(22,204,880	)
MSCI India Small-Cap		1,939,732		(1,939,732	)

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
MSCI India
Ordinary income	$	29,566,139	$	47,587,162
MSCI India Small-Cap
Ordinary income	$	864,605	$	1,347,936

As of August 31, 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
MSCI India	$	39,617,829	$	(259,187,469	)	$	851,419,902	$	631,850,262
MSCI India Small-Cap		2,246,099		(4,917,427	)		34,537,875		31,866,547

^a  The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the characterization of corporate actions, the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

As of August 31, 2017, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

iShares ETF	Non- Expiring
MSCI India	$	259,187,469
MSCI India Small-Cap		4,917,427

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 31

Notes to Consolidated Financial Statements  (Continued)

iSHARES^® TRUST

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 August 31, 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’ consolidated financial statements.

7. LEGAL PROCEEDINGS

On June 16, 2016, investors (the “Plaintiffs”) 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 putative 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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

8. SUBSEQUENT EVENTS

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

32 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 MSCI India ETF and iShares MSCI India Small-Cap ETF

In our opinion, the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, and the related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in all material respects, the financial position of iShares MSCI India ETF and iShares MSCI India Small-Cap ETF and their subsidiaries (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of August 31, 2017, and 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 consolidated financial statements and consolidated 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 August 31, 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

October 23, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 33

Tax Information  (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:

iShares ETF	Qualified Dividend Income
MSCI India	$	91,047,854
MSCI India Small-Cap		2,471,092

For the fiscal year ended August 31, 2017, the 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
MSCI India	$	91,676,731	$	1,505,182
MSCI India Small-Cap		2,559,743		9,456

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

I. iShares MSCI India ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 35

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for an additional breakpoint as the assets of the Fund increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 37

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI India Small-Cap ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 39

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining,

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 41

Supplemental Information  (Unaudited)

iSHARES^® TRUST

Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.

Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

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
MSCI India	$	0.198713	$	—	$	—	$	0.198713		100	%		—	%		—	%		100	%
MSCI India Small-Cap		0.333426		—		0.050843		0.384269		87			—			13			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 ask on the primary securities exchange on which 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 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.

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information  (Unaudited) (Continued)

iSHARES^® TRUST

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding 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. Each line in each 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 MSCI India ETF

Period Covered: February 2, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		2		0.15	%
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		6		0.44
Greater than 2.0% and Less than 2.5%		15		1.10
Greater than 1.5% and Less than 2.0%		33		2.42
Greater than 1.0% and Less than 1.5%		145		10.65
Greater than 0.5% and Less than 1.0%		281		20.63
Greater than 0.0% and Less than 0.5%		371		27.25
At NAV		4		0.29
Less than 0.0% and Greater than –0.5%		275		20.19
Less than –0.5% and Greater than –1.0%		143		10.50
Less than –1.0% and Greater than –1.5%		49		3.60
Less than –1.5% and Greater than –2.0%		20		1.47
Less than –2.0% and Greater than –2.5%		10		0.73
Less than –2.5% and Greater than –3.0%		5		0.37
Less than –3.0% and Greater than –3.5%		1		0.07
		1,362		100.00	%

SUPPLEMENTAL INFORMATION 43

Supplemental Information  (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI India Small-Cap ETF

Period Covered: February 8, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		5		0.37	%
Greater than 4.0% and Less than 4.5%		4		0.29
Greater than 3.5% and Less than 4.0%		9		0.66
Greater than 3.0% and Less than 3.5%		9		0.66
Greater than 2.5% and Less than 3.0%		13		0.96
Greater than 2.0% and Less than 2.5%		38		2.80
Greater than 1.5% and Less than 2.0%		70		5.15
Greater than 1.0% and Less than 1.5%		141		10.38
Greater than 0.5% and Less than 1.0%		259		19.07
Greater than 0.0% and Less than 0.5%		278		20.48
At NAV		7		0.52
Less than 0.0% and Greater than –0.5%		222		16.35
Less than –0.5% and Greater than –1.0%		156		11.49
Less than –1.0% and Greater than –1.5%		91		6.70
Less than –1.5% and Greater than –2.0%		32		2.36
Less than –2.0% and Greater than –2.5%		11		0.81
Less than –2.5% and Greater than –3.0%		3		0.22
Less than –3.0% and Greater than –3.5%		3		0.22
Less than –3.5% and Greater than –4.0%		3		0.22
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –4.5%		3		0.22
		1,358		100.00	%

44 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 344 funds (as of August 31, 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 45

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).	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 (14 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); Equity Plus Committee Chair (since 2017).	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 (62)	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); 15(c) Committee Chair (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).

46 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
John E. Martinez (56)	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).
Madhav V. Rajan (53)	Trustee (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); 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 47

Trustee and Officer Information  (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (42)	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 (55)	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 of 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.

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:

NOTES 49

Notes:

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 MSCI 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-809-0817

AUGUST 31, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares Currency Hedged MSCI United Kingdom ETF  |  HEWU  |  NYSE Arca

^Ø  iShares MSCI United Kingdom ETF  |  EWU  |  NYSE Arca

^Ø  iShares MSCI United Kingdom Small-Cap ETF  |  EWUS  |  BATS

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	12
Shareholder Expenses	12
Schedules of Investments	13
iShares Currency Hedged MSCI United Kingdom ETF	13
iShares MSCI United Kingdom ETF	15
iShares MSCI United Kingdom Small-Cap ETF	19
Financial Statements	25
Financial Highlights	29
Notes to Financial Statements	32
Report of Independent Registered Public Accounting Firm	46
Tax Information	47
Board Review and Approval of Investment Advisory Contract	48
Supplemental Information	58
Trustee and Officer Information	62

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended August 31, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 17.11% in U.S. dollar terms for the reporting period.

The primary factor behind the robust performance of global equity markets was improving global economic growth, driven largely by the continuation of accommodative monetary policies from many of the world’s central banks. Signs of stronger economic activity in Europe emerged as the European Central Bank (“ECB”) maintained policies such as quantitative easing and negative interest rates. Economic growth rates in China and Japan, the largest economies in Asia, also increased during the reporting period, reflecting efforts by the People’s Bank of China (“PBOC”) and the Bank of Japan (“BOJ”) to stimulate economic activity. Stronger economic growth led several central banks to consider reducing their economic stimulus measures. For example, late in the reporting period, the ECB discussed the possibility of tapering its quantitative easing program, while the PBOC increased short-term interest rates during the first half of 2017.

On a regional basis, European equity markets posted the best returns among developed markets, advancing by approximately 20% in U.S. dollar terms for the reporting period. European stocks benefited from improving economic conditions and stronger corporate earnings. In addition, election outcomes in France and the Netherlands eased investor concerns about nationalist presidential candidates and their opposition to the European Union (“E.U.”). Currency fluctuations also contributed meaningfully to European equity performance in U.S. dollar terms as the euro appreciated by approximately 6% against the U.S. dollar during the reporting period. The best-performing European stock markets included Austria, Italy, and Spain, while Ireland and Belgium posted the weakest returns.

Equity markets in the Asia-Pacific region gained about 16% in U.S. dollar terms for the reporting period, led by Singapore and Hong Kong. Japanese stocks also posted strong returns, benefiting from improving consumer spending and employment trends that contributed to the ongoing recovery in the Japanese economy. However, equity market returns in Japan were hindered by a decline in the Japanese yen, which depreciated by approximately 6% against the U.S. dollar.

The U.S. stock market returned approximately 15% for the reporting period. Despite mixed U.S. economic data, U.S. stocks advanced initially in anticipation of pro-business fiscal policies from the new presidential administration. Although the administration struggled to implement its fiscal agenda, stocks continued to move higher as better global economic conditions led to a notable improvement in corporate earnings growth, particularly for multinational companies with significant operations outside of the U.S. U.S. stocks advanced despite three short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the reporting period, which increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to start reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017.

Emerging markets stocks outperformed those in developed markets, returning more than 23% in U.S. dollar terms for the reporting period. Emerging markets in Eastern Europe were the best performers, led by Poland, Greece, and Hungary. Equity markets in the Middle East trailed for the reporting period amid continued geopolitical conflict in the region.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI UNITED KINGDOM ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.48%		13.42%		14.69%		13.48%		13.42%		14.69%
Since Inception		9.64%		9.66%		9.89%		22.17%		22.21%		22.70%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.

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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,043.50	$	0.00	$	1,000.00	$	1,025.20	$	0.00		0.00%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance  (Continued)

iSHARES^® CURRENCY HEDGED MSCI UNITED KINGDOM ETF

The iShares Currency Hedged MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization United Kingdom equities while mitigating exposure to fluctuations between the value of the British pound and the U.S. dollar, as represented by the MSCI United Kingdom 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI United Kingdom ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 13.48%, net of fees, while the total return for the Index was 14.69%.

During the reporting period, economic growth in the U.K. was modest. Positive signs for the U.K. economy included an increase in manufacturing orders and a multi-decade low in the country’s unemployment rate. However, consumer spending slowed markedly during the reporting period, industrial production remained muted, and the construction industry declined. The Bank of England lowered interest rates early in the reporting period to stimulate economic growth but took no further actions as inflation rose above the central bank’s target rate.

Within the Index, the financials sector, which represented about 21% of the Index on average during the reporting period, contributed the most to the Index’s performance in U.S. dollar terms amid strength in U.K. banks and insurance companies. The materials sector also contributed significantly to the Index’s return, as the metals and mining industry benefited from a rebound in prices. The energy and consumer staples sectors also contributed to the Index’s return.

In contrast, the healthcare sector was the largest detractor from the Index’s return for the reporting period in U.S. dollar terms due to weakness among biotechnology and pharmaceuticals companies amid uncertainty about the regulatory repercussions of Brexit. The telecommunication services and utilities sectors also detracted from the Index’s performance.

In terms of currency performance, the British pound depreciated against the U.S. dollar by approximately 2% for the reporting period. Continued declines in investment flows in the wake of the vote to leave the European Union and an inconclusive Parliamentary election worked against the British pound.

The British pound’s negative performance meant hedging activity contributed to the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of the British pound’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of U.K. equities measured in British pounds.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Financials	22.17	%
Consumer Staples	18.66
Energy	13.75
Health Care	9.82
Materials	9.04
Consumer Discretionary	8.18
Industrials	7.82
Telecommunication Services	4.53
Utilities	3.67
Real Estate	1.35
Information Technology	1.01
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

HSBC Holdings PLC	7.85	%
British American Tobacco PLC	5.79
Royal Dutch Shell PLC Class A ADR	4.96
BP PLC	4.57
Royal Dutch Shell PLC Class B	4.22
GlaxoSmithKline PLC	3.93
Diageo PLC	3.40
Vodafone Group PLC	3.07
Unilever PLC	3.02
AstraZeneca PLC	3.00
TOTAL	43.81	%

¹  Table shown is for the iShares MSCI United Kingdom ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® MSCI UNITED KINGDOM ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.60%		11.15%		12.09%		11.60%		11.15%		12.09%
5 Years		4.19%		4.12%		4.71%		22.78%		22.38%		25.87%
10 Years		0.23%		0.26%		0.77%		2.37%		2.63%		7.95%

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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,081.40	$	2.57	$	1,000.00	$	1,022.70	$	2.50		0.49%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance  (Continued)

iSHARES^® MSCI UNITED KINGDOM ETF

The iShares MSCI United Kingdom ETF (the “Fund”) seeks to track the investment results of an index composed of U.K. equities, as represented by the MSCI United Kingdom 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 August 31, 2017, the total return for the Fund was 11.60%, net of fees, while the total return for the Index was 12.09%.

During the reporting period, economic growth in the U.K. was modest. Positive signs for the U.K. economy included an increase in manufacturing orders and a multi-decade low in the country’s unemployment rate. However, consumer spending slowed markedly during the reporting period, industrial production remained muted, and the construction industry declined. The Bank of England lowered interest rates early in the reporting period to stimulate economic growth but took no further actions as inflation rose above the central bank’s target rate.

Within the Index, the financials sector, which represented about 21% of the Index on average during the reporting period, contributed the most to the Index’s performance amid strength in U.K. banks and insurance companies. The materials sector also contributed significantly to the Index’s return, as the metals and mining industry benefited from a rebound in prices. Other sectors that contributed to the Index’s performance included the energy and consumer staples sectors.

In contrast, the healthcare sector was the largest detractor from the Index’s return for the reporting period due to weakness among biotechnology and pharmaceuticals companies amid uncertainty about the regulatory repercussions of Brexit. The telecommunication services and utilities sectors also detracted from the Index’s performance.

The British pound, which declined by about 2% relative to the U.S. dollar, was a modest detractor from the Index’s performance for the reporting period as returns on U.K. investments were lower when translated into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	22.17	%
Consumer Staples	18.66
Energy	13.75
Health Care	9.82
Materials	9.04
Consumer Discretionary	8.18
Industrials	7.82
Telecommunication Services	4.53
Utilities	3.67
Real Estate	1.35
Information Technology	1.01
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

HSBC Holdings PLC	7.85	%
British American Tobacco PLC	5.79
Royal Dutch Shell PLC Class A ADR	4.96
BP PLC	4.57
Royal Dutch Shell PLC Class B	4.22
GlaxoSmithKline PLC	3.93
Diageo PLC	3.40
Vodafone Group PLC	3.07
Unilever PLC	3.02
AstraZeneca PLC	3.00
TOTAL	43.81	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® MSCI UNITED KINGDOM SMALL-CAP ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		14.40%		13.45%		15.09%		14.40%		13.45%		15.09%
5 Years		10.47%		10.24%		11.14%		64.49%		62.78%		69.58%
Since Inception		11.35%		11.30%		12.03%		82.61%		82.16%		88.86%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/25/12. The first day of secondary market trading was 1/26/12.

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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,125.70	$	3.16	$	1,000.00	$	1,022.20	$	3.01		0.59%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance  (Continued)

iSHARES^® MSCI UNITED KINGDOM SMALL-CAP ETF

The iShares MSCI United Kingdom Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.K. equities, as represented by the MSCI United Kingdom Small Cap 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 August 31, 2017, the total return for the Fund was 14.40%, net of fees, while the total return for the Index was 15.09%.

During the reporting period, economic growth in the U.K. was modest. Positive signs for the U.K. economy included an increase in manufacturing orders and a multi-decade low in the country’s unemployment rate. However, consumer spending slowed markedly during the reporting period, industrial production remained muted, and the construction industry declined. The Bank of England lowered interest rates early in the reporting period to stimulate economic growth, but took no further actions as inflation rose above the central bank’s target rate.

The industrials sector, which represented about 21% of the Index on average for the reporting period, was the largest contributor to the Index’s performance, led by small-capitalization industrial machinery manufacturers and commercial services and supplies companies. The financials sector also contributed significantly to the Index’s return, led by capital markets companies and the insurance industry.

The consumer discretionary sector benefited the Index’s performance for the reporting period as well, largely due to strength among small-capitalization retail companies. Other sector contributors included the information technology, materials, and healthcare sectors.

In contrast, the energy sector detracted from the Index’s performance. Within the sector, revenues and profits declined for small-capitalization energy equipment and services companies as energy prices decreased during the reporting period.

The British pound, which declined by about 2% relative to the U.S. dollar, was a modest detractor from the Index’s performance for the reporting period as returns on U.K. investments were lower when translated into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Consumer Discretionary	21.56	%
Industrials	19.56
Financials	15.19
Information Technology	12.26
Real Estate	8.28
Materials	8.26
Health Care	5.65
Consumer Staples	3.64
Energy	3.61
Utilities	1.54
Telecommunication Services	0.45
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Informa PLC	1.65	%
Rentokil Initial PLC	1.62
Micro Focus International PLC	1.51
DS Smith PLC	1.46
Melrose Industries PLC	1.24
Halma PLC	1.20
Spirax-Sarco Engineering PLC	1.20
Bellway PLC	1.14
RPC Group PLC	1.12
Rightmove PLC	1.11
TOTAL	13.25	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

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 March 1, 2017 and held through August 31, 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.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI UNITED KINGDOM ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.15%
EXCHANGE-TRADED FUNDS — 100.15%
iShares MSCI United Kingdom ETFa		564,475	$	19,101,834
				19,101,834
TOTAL INVESTMENT COMPANIES
(Cost: $18,390,456)				19,101,834
SHORT-TERM INVESTMENTS — 0.06%
MONEY MARKET FUNDS — 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		11,765		11,765
				11,765
TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,765)				11,765

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.21%
(Cost: $18,402,221)c	$	19,113,599
Other Assets, Less Liabilities — (0.21)%		(40,654	)
NET ASSETS — 100.00%	$	19,072,945

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $18,424,148. Net unrealized appreciation was $689,451, of which $711,378 represented gross unrealized appreciation on investments and $21,927 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—	b		—			—	$	—	$	2,204	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		27,872		—			(16,107	)b		11,765		11,765		1		—		675
iShares MSCI United Kingdom ETF		7,259,436		2,489,064			(9,184,025	)d		564,475		19,101,834		5,188,562		225,929		1,409,224
											$	19,113,599	$	5,190,767	$	225,929	$	1,409,899

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

^d  Includes 3,792,372 shares from a one-for-two reverse stock split.

SCHEDULES OF INVESTMENTS 13

Schedule of Investments  (Continued)

iSHARES^® CURRENCY HEDGED MSCI UNITED KINGDOM ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 6)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	GBP	1,984,330		USD	2,559,680	MS		09/06/2017	$	6,338
	GBP	12,379,670		USD	15,978,855	SCB		09/06/2017		29,800
	USD	83,150		GBP	63,000	BNP		09/06/2017		1,682
	USD	2,670,203		GBP	2,037,300	MS		09/06/2017		35,687
	USD	18,529,135		GBP	14,139,700	SSBSW		09/06/2017		244,514
	USD	1,185,618		GBP	897,000	TNTC		09/06/2017		25,671
										343,692
	GBP	7,000		USD	9,269	BNP		09/06/2017	$	(217	)
	GBP	61,000		USD	80,556	MS		09/06/2017		(1,674	)
	GBP	2,705,000		USD	3,558,465	RBC		09/06/2017		(60,520	)
	USD	2,226,192		GBP	1,725,400	MS		10/03/2017		(7,125	)
	USD	708,914		GBP	547,930	NSI		10/03/2017		(313	)
	USD	15,994,558		GBP	12,379,670	SCB		10/03/2017		(29,387	)
										(99,236	)
					Net unrealized appreciation				$	244,456

Counterparties:

BNP — BNP Paribas SA

MS — Morgan Stanley and Co. International PLC

NSI — Nomura Securities International Inc. RBC — Royal Bank of Canada (UK)

SCB — Standard Chartered Bank

SSBSW — State Street Bank and Trust

TNTC — The Northern Trust Company

Currency abbreviations:

GBP — British Pound

USD — United States Dollar

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 August 31, 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:
Investment companies	$	19,101,834	$	—		$	—	$	19,101,834
Money market funds		11,765		—			—		11,765
Total	$	19,113,599	$	—		$	—	$	19,113,599
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	343,692		$	—	$	343,692
Liabilities:
Forward currency contracts		—		(99,236	)		—		(99,236	)
Total	$	—	$	244,456		$	—	$	244,456

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI UNITED KINGDOM ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 98.94%
AEROSPACE & DEFENSE — 2.15%
BAE Systems PLC		3,516,455	$	27,526,608
Cobham PLC		2,633,278		4,658,741
Meggitt PLC		856,053		5,713,888
Rolls-Royce Holdings PLC		1,831,605		21,571,451
				59,470,688
AIR FREIGHT & LOGISTICS — 0.18%
Royal Mail PLC		992,437		5,041,049
				5,041,049
AIRLINES — 0.10%
easyJet PLC		175,572		2,705,751
				2,705,751
AUTO COMPONENTS — 0.28%
GKN PLC		1,898,915		7,802,996
				7,802,996
BANKS — 13.57%
Barclays PLC		18,850,830		46,418,650
HSBC Holdings PLC		22,190,881		214,598,452
Lloyds Banking Group PLC		79,421,761		65,312,703
Royal Bank of Scotland Group PLCa		3,925,191		12,740,612
Standard Chartered PLCa		3,634,725		36,063,147
				375,133,564
BEVERAGES — 3.61%
Coca-Cola HBC AG		200,606		6,834,500
Diageo PLC		2,786,859		93,078,920
				99,913,420
BIOTECHNOLOGY — 1.79%
Shire PLC		1,004,660		49,626,760
				49,626,760
CAPITAL MARKETS — 2.05%
3i Group PLC		1,077,039		13,454,904
Hargreaves Lansdown PLC		287,610		5,188,399
Investec PLC		725,177		5,513,119
London Stock Exchange Group PLC		349,034		17,765,039
Schroders PLC		137,259		5,956,817
St. James’s Place PLC		584,609		8,685,526
				56,563,804
CHEMICALS — 0.54%
Croda International PLC		145,167		7,186,652
Johnson Matthey PLC		214,169		7,627,742
				14,814,394

Security	Shares		Value
COMMERCIAL SERVICES & SUPPLIES — 0.33%
Babcock International Group PLC		281,577	$	2,947,962
G4S PLC		1,716,578		6,270,728
				9,218,690
CONSUMER FINANCE — 0.07%
Provident Financial PLCb		162,919		1,853,676
				1,853,676
DIVERSIFIED FINANCIAL SERVICES — 0.59%
Standard Life Aberdeen PLC		2,964,511		16,410,382
				16,410,382
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.45%
BT Group PLC		9,368,987		35,317,836
Inmarsat PLC		498,403		4,701,030
				40,018,866
ELECTRIC UTILITIES — 0.74%
SSE PLC		1,119,976		20,564,821
				20,564,821
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.34%
British Land Co. PLC (The)		1,083,242		8,535,389
Hammerson PLC		876,794		6,338,139
Intu Properties PLCb		979,969		3,141,695
Land Securities Group PLC		875,239		11,390,673
Segro PLC		1,101,828		7,638,312
				37,044,208
FOOD & STAPLES RETAILING — 1.24%
J Sainsbury PLC		1,810,882		5,497,520
Tesco PLCa		9,047,695		21,090,062
Wm Morrison Supermarkets PLC		2,455,480		7,783,463
				34,371,045
FOOD PRODUCTS — 0.78%
Associated British Foods PLC		394,537		16,888,408
Tate & Lyle PLC		517,409		4,556,945
				21,445,353
HEALTH CARE EQUIPMENT & SUPPLIES — 0.83%
ConvaTec Group PLCa,c		1,511,882		5,589,202
Smith & Nephew PLC		968,312		17,430,629
				23,019,831
HEALTH CARE PROVIDERS & SERVICES — 0.15%
Mediclinic International PLCb		410,614		4,044,945
				4,044,945

SCHEDULES OF INVESTMENTS 15

Schedule of Investments  (Continued)

iSHARES^® MSCI UNITED KINGDOM ETF

August 31, 2017

Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 3.05%
Carnival PLC		209,127	$	14,484,047
Compass Group PLC		1,750,107		37,254,264
InterContinental Hotels Group PLC		199,086		9,891,886
Merlin Entertainments PLCc		783,601		4,657,789
TUI AG		487,766		8,220,923
Whitbread PLC		202,779		9,819,313
				84,328,222
HOUSEHOLD DURABLES — 1.34%
Barratt Developments PLC		1,114,453		8,967,999
Berkeley Group Holdings PLC		145,233		7,000,908
Persimmon PLC		341,601		11,704,121
Taylor Wimpey PLC		3,620,482		9,353,671
				37,026,699
HOUSEHOLD PRODUCTS — 2.52%
Reckitt Benckiser Group PLC		739,097		69,827,298
				69,827,298
INDUSTRIAL CONGLOMERATES — 0.64%
DCC PLC		98,357		8,928,687
Smiths Group PLC		438,370		8,727,114
				17,655,801
INSURANCE — 5.66%
Admiral Group PLC		219,763		5,468,122
Aviva PLC		4,495,107		30,264,094
Direct Line Insurance Group PLC		1,520,903		7,449,047
Legal & General Group PLC		6,589,687		22,093,953
Old Mutual PLC		5,456,314		14,588,774
Prudential PLC		2,856,531		66,824,626
RSA Insurance Group PLC		1,128,994		9,696,012
				156,384,628
INTERNET SOFTWARE & SERVICES — 0.18%
Auto Trader Group PLCc		1,079,704		4,916,687
				4,916,687
IT SERVICES — 0.43%
Worldpay Group PLCc		2,214,793		11,900,646
				11,900,646
MACHINERY — 0.36%
IMI PLC		299,913		4,386,241
Weir Group PLC (The)		240,427		5,560,951
				9,947,192
MEDIA — 2.00%
ITV PLC		4,011,501		8,198,066
Pearson PLC		910,050		7,112,093

Security	Shares		Value
Sky PLC		1,141,174	$	14,057,597
WPP PLC		1,417,437		25,935,430
				55,303,186
METALS & MINING — 8.01%
Anglo American PLC		1,474,047		26,638,854
Antofagasta PLC		434,702		5,797,401
BHP Billiton PLC		2,337,215		44,466,553
Fresnillo PLC		243,619		5,072,871
Glencore PLC		13,540,359		62,723,519
Randgold Resources Ltd.		103,999		10,600,028
Rio Tinto PLC		1,369,294		66,103,398
				221,402,624
MULTI-UTILITIES — 2.29%
Centrica PLC		6,076,000		15,650,633
National Grid PLC		3,804,386		47,781,181
				63,431,814
MULTILINE RETAIL — 0.58%
Marks & Spencer Group PLC		1,797,714		7,403,357
Next PLC		162,778		8,660,480
				16,063,837
OIL, GAS & CONSUMABLE FUELS — 13.60%
BP PLC		21,780,729		124,933,852
Royal Dutch Shell PLC Class A ADR		4,954,671		135,794,961
Royal Dutch Shell PLC Class B		4,143,571		115,353,400
				376,082,213
PAPER & FOREST PRODUCTS — 0.40%
Mondi PLC		406,856		11,077,495
				11,077,495
PERSONAL PRODUCTS — 2.99%
Unilever PLC		1,420,406		82,709,650
				82,709,650
PHARMACEUTICALS — 6.95%
AstraZeneca PLC		1,400,047		81,921,040
GlaxoSmithKline PLC		5,442,934		107,551,926
Hikma Pharmaceuticals PLCb		160,361		2,587,048
				192,060,014
PROFESSIONAL SERVICES — 2.35%
Capita PLC		737,249		6,160,635
Experian PLC		1,043,979		20,904,709
Intertek Group PLC		178,853		11,776,561
RELX PLC		1,196,274		26,066,073
				64,907,978

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (Continued)

iSHARES^® MSCI UNITED KINGDOM ETF

August 31, 2017

Security	Shares		Value
SOFTWARE — 0.39%
Sage Group PLC (The)		1,196,940	$	10,680,547
				10,680,547
SPECIALTY RETAIL — 0.43%
Dixons Carphone PLC		1,076,321		2,404,874
Kingfisher PLC		2,479,157		9,548,415
				11,953,289
TEXTILES, APPAREL & LUXURY GOODS — 0.41%
Burberry Group PLC		486,006		11,253,589
				11,253,589
TOBACCO — 7.31%
British American Tobacco PLC		2,544,135		158,372,048
Imperial Brands PLC		1,061,446		43,774,085
				202,146,133
TRADING COMPANIES & DISTRIBUTORS — 1.62%
Ashtead Group PLC		552,643		11,842,360
Bunzl PLC		371,711		11,064,167
Ferguson PLC		279,964		16,605,215
Travis Perkins PLC		276,718		5,366,304
				44,878,046
WATER UTILITIES — 0.60%
Severn Trent PLC		260,780		7,624,478
United Utilities Group PLC		755,073		8,853,840
				16,478,318
WIRELESS TELECOMMUNICATION SERVICES — 3.04%
Vodafone Group PLC		29,458,018		84,039,311
				84,039,311
TOTAL COMMON STOCKS (Cost: $3,140,741,623)				2,735,519,460

Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.45%
MONEY MARKET FUNDS — 0.45%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		11,875,860	$	11,879,422
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		488,263		488,263
				12,367,685
TOTAL SHORT-TERM INVESTMENTS (Cost: $12,367,685)				12,367,685
TOTAL INVESTMENTS IN SECURITIES — 99.39%
(Cost: $3,153,109,308)g				2,747,887,145
Other Assets, Less Liabilities — 0.61%				16,858,718
NET ASSETS — 100.00%			$	2,764,745,863

ADR — American Depositary Receipts

^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 issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $3,254,695,385. Net unrealized depreciation was $506,808,240, of which $97,976,694 represented gross unrealized appreciation on investments and $604,784,934 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 17

Schedule of Investments(Continued)

iSHARES^® MSCI UNITED KINGDOM ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		12,785,896		—			(910,036	)b		11,875,860	$	11,879,422	$	1,388	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		371,827		116,436	b		—			488,263		488,263		4		—		10,098
											$	12,367,685	$	1,392	$	—	$	10,098

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value / Unrealized Appreciation (Depreciation)
Long Contracts:
FTSE 100 Index		2,950		Sep 2017	$	28,253	$	178,231

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 August 31, 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	$	2,735,519,460	$	—	$	—	$	2,735,519,460
Money market funds		12,367,685		—		—		12,367,685
Total	$	2,747,887,145	$	—	$	—	$	2,747,887,145
Derivative financial instrumentsa:
Assets:
Futures contracts	$	178,231	$	—	$	—	$	178,231
Total	$	178,231	$	—	$	—	$	178,231

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI UNITED KINGDOM SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.62%
AEROSPACE & DEFENSE — 1.27%
Chemring Group PLC		20,066	$	45,765
QinetiQ Group PLC		40,608		120,348
Senior PLC		30,026		106,243
Ultra Electronics Holdings PLC		5,563		132,612
				404,968
AIRLINES — 0.14%
Dart Group PLC		6,900		45,922
				45,922
BANKS — 2.28%
Aldermore Group PLCa		18,606		54,063
BGEO Group PLC		2,824		125,905
CYBG PLCa		63,200		236,328
Metro Bank PLCa		5,381		240,530
Virgin Money Holdings UK PLC		20,704		71,070
				727,896
BEVERAGES — 1.35%
Britvic PLC		18,875		183,748
Fevertree Drinks PLC		6,600		209,719
Stock Spirits Group PLC		12,867		38,590
				432,057
BIOTECHNOLOGY — 0.89%
Abcam PLC		13,173		180,604
Genus PLC		4,377		105,073
				285,677
BUILDING PRODUCTS — 0.23%
Polypipe Group PLC		14,156		72,197
				72,197
CAPITAL MARKETS — 7.06%
Allied Minds PLCa		15,348		24,671
Ashmore Group PLC		27,852		132,250
Brewin Dolphin Holdings PLC		20,282		93,169
Burford Capital Ltd.		13,417		200,028
Close Brothers Group PLC		10,858		216,162
CMC Markets PLCb		8,313		15,612
IG Group Holdings PLC		26,272		218,351
Intermediate Capital Group PLC		20,773		237,691
Jupiter Fund Management PLC		31,128		215,190
Man Group PLC		118,902		256,476
NEX Group PLC		23,107		197,405
P2P Global Investments PLC/Fund		5,896		64,197
Rathbone Brothers PLC		3,636		130,248

Security	Shares		Value
TP ICAP PLC		39,670	$	252,312
				2,253,762
CHEMICALS — 2.14%
Elementis PLC		33,195		115,317
Essentra PLC		18,823		129,518
Scapa Group PLC		9,876		57,266
Sirius Minerals PLCa		287,221		101,000
Synthomer PLC		19,465		118,611
Victrex PLC		6,143		161,240
				682,952
COMMERCIAL SERVICES & SUPPLIES — 5.81%
Aggreko PLC		18,336		212,878
Berendsen PLC		12,358		201,437
Biffa PLCb		17,952		52,221
Cape PLC		8,824		30,046
De La Rue PLC		7,335		58,694
Homeserve PLC		20,019		188,565
Interserve PLC		10,617		23,017
IWG PLC		49,111		190,226
Mitie Group PLC		25,732		89,192
Renewi PLC		54,785		65,475
Rentokil Initial PLC		131,533		516,088
Restore PLC		7,638		48,373
RPS Group PLC		16,094		59,881
Serco Group PLCa		78,645		119,275
				1,855,368
COMMUNICATIONS EQUIPMENT — 0.05%
Telit Communications PLCc		7,443		15,633
				15,633
CONSTRUCTION & ENGINEERING — 1.88%
Balfour Beatty PLC		49,378		171,090
Carillion PLCc		31,035		17,640
Costain Group PLC		7,488		43,105
Galliford Try PLC		5,934		106,436
John Laing Group PLCb		26,270		100,535
Keller Group PLC		5,184		55,209
Kier Group PLC		6,976		105,710
				599,725
CONSTRUCTION MATERIALS — 0.69%
Forterra PLCb		14,349		50,661
Ibstock PLCb		29,093		88,096
Marshalls PLC		14,247		80,463
				219,220

SCHEDULES OF INVESTMENTS 19

Schedule of Investments  (Continued)

iSHARES^® MSCI UNITED KINGDOM SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
CONSUMER FINANCE — 0.35%
Arrow Global Group PLC		11,944	$	71,835
International Personal Finance PLC		15,936		39,990
				111,825
CONTAINERS & PACKAGING — 2.57%
DS Smith PLC		72,622		465,827
RPC Group PLC		29,705		354,822
				820,649
DISTRIBUTORS — 1.16%
Inchcape PLC		29,914		320,893
John Menzies PLC		5,392		49,121
				370,014
DIVERSIFIED CONSUMER SERVICES — 0.61%
AA PLC		43,656		90,005
Dignity PLC		3,575		104,016
				194,021
DIVERSIFIED FINANCIAL SERVICES — 0.21%
Plus500 Ltd.		5,757		67,765
				67,765
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.45%
Kcom Group PLC		35,191		45,346
TalkTalk Telecom Group PLCc		37,626		97,402
				142,748
ELECTRICAL EQUIPMENT — 1.35%
Dialight PLCa		1,776		18,342
Luceco PLCb		5,858		17,889
Melrose Industries PLC		138,969		393,951
				430,182
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.79%
Electrocomponents PLC		31,610		257,624
Halma PLC		27,145		382,306
Laird PLC		35,233		64,127
Oxford Instruments PLC		3,898		52,689
Renishaw PLC		2,605		153,735
Smart Metering Systems PLCc		5,133		46,365
Spectris PLC		8,534		254,459
				1,211,305
ENERGY EQUIPMENT & SERVICES — 1.58%
Amec Foster Wheeler PLC		27,918		151,989
Hunting PLCa		10,027		51,965
John Wood Group PLC		27,431		200,060

Security	Shares		Value
Petrofac Ltd.		18,573	$	100,133
				504,147
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 6.14%
Assura PLC		130,332		109,580
Big Yellow Group PLC		10,739		111,878
Civitas Social Housing PLC		23,710		34,523
Derwent London PLC		7,580		271,919
Empiric Student Property PLC		43,082		62,453
Great Portland Estates PLC		23,390		182,493
Hansteen Holdings PLC		53,288		90,980
LondonMetric Property PLC		49,609		106,241
NewRiver REIT PLC		21,572		96,871
Primary Health Properties PLC		40,966		63,344
Redefine International PLC/Isle of Man		97,483		49,617
Safestore Holdings PLC		14,984		79,837
Schroder REIT Ltd.		36,840		29,906
Shaftesbury PLC		16,978		218,114
Standard Life Investment Property Income Trust Ltd.		26,649		30,991
Tritax Big Box REIT PLC		97,579		179,676
UNITE Group PLC (The)		16,057		143,384
Workspace Group PLC		8,763		100,156
				1,961,963
FOOD & STAPLES RETAILING — 1.22%
Booker Group PLC		121,224		312,406
Conviviality PLC		11,746		62,055
Majestic Wine PLC		3,869		15,829
				390,290
FOOD PRODUCTS — 0.78%
Dairy Crest Group PLCc		10,099		77,493
Greencore Group PLCc		50,444		133,249
Hotel Chocolat Group Ltd.a		2,879		11,500
Premier Foods PLCa		48,584		25,980
				248,222
HEALTH CARE EQUIPMENT & SUPPLIES — 0.17%
Advanced Medical Solutions Group PLC		13,628		55,798
				55,798
HEALTH CARE PROVIDERS & SERVICES — 1.74%
CVS Group PLC		4,334		75,559
NMC Health PLC		5,850		204,657
Spire Healthcare Group PLCb		20,099		84,067
UDG Healthcare PLCc		17,777		191,728
				556,011

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (Continued)

iSHARES^® MSCI UNITED KINGDOM SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
HEALTH CARE TECHNOLOGY — 0.15%
EMIS Group PLC		3,866	$	48,944
				48,944
HOTELS, RESTAURANTS & LEISURE — 5.77%
888 Holdings PLC		14,259		48,322
Domino’s Pizza Group PLC		35,222		122,722
EI Group PLCa		34,723		63,199
Greene King PLC		22,190		197,148
Greggs PLC		7,242		112,260
GVC Holdings PLC		20,256		203,717
J D Wetherspoon PLC		5,540		77,953
Jackpotjoy PLCa,c		3,683		34,644
Ladbrokes Coral Group PLC		102,801		156,970
Marston’s PLC		45,360		67,508
Mitchells & Butlers PLC		15,067		48,129
Rank Group PLC		12,594		37,324
Restaurant Group PLC (The)		14,497		64,727
SSP Group PLC		34,020		242,416
Thomas Cook Group PLC		104,453		169,049
William Hill PLC		61,408		195,919
				1,842,007
HOUSEHOLD DURABLES — 3.54%
Bellway PLC		8,791		362,825
Bovis Homes Group PLC		9,631		130,802
Cairn Homes PLCa		46,583		95,258
Countryside Properties PLCb		24,161		107,781
Crest Nicholson Holdings PLC		18,282		128,152
DFS Furniture PLC		15,143		46,537
McCarthy & Stone PLCb		34,512		73,554
Redrow PLC		15,884		127,000
Telford Homes PLC		4,919		24,656
Victoria PLCa		4,212		34,952
				1,131,517
HOUSEHOLD PRODUCTS — 0.28%
PZ Cussons PLC		19,950		88,174
				88,174
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.36%
Drax Group PLC		29,126		115,743
				115,743
INSURANCE — 4.75%
Beazley PLC		37,635		247,807
Chesnara PLC		10,228		52,552
esure Group PLC		20,897		73,375

Security	Shares		Value
Hastings Group Holdings PLCb		21,172	$	86,809
Hiscox Ltd.		20,456		336,863
Just Group PLC		40,020		79,621
Lancashire Holdings Ltd.		13,597		120,453
Novae Group PLC		4,378		40,025
Phoenix Group Holdings		26,718		269,395
Saga PLC		80,037		209,151
				1,516,051
INTERNET & DIRECT MARKETING RETAIL — 2.26%
AO World PLCa,c		18,384		27,360
ASOS PLCa		3,882		283,472
boohoo.com PLCa		48,250		141,132
Hostelworld Group PLCb		6,963		31,537
N Brown Group PLC		11,160		47,023
Ocado Group PLCa,c		38,329		153,007
On the Beach Group PLCb		6,989		38,477
				722,008
INTERNET SOFTWARE & SERVICES — 3.09%
Gocompare.Com Group PLCa		21,331		27,898
iomart Group PLC		5,484		22,259
Just Eat PLCa		38,905		333,873
Moneysupermarket.com Group PLC		38,789		159,691
Rightmove PLC		6,626		351,934
ZPG PLCb		20,406		92,687
				988,342
IT SERVICES — 1.56%
Equiniti Group PLCb		21,413		74,498
Kainos Group PLC		4,727		17,907
Keywords Studios PLC		3,169		58,148
NCC Group PLCc		19,795		47,443
Paysafe Group PLCa		32,960		248,878
SafeCharge International Group Ltd.c		3,773		12,810
Softcat PLC		7,792		39,991
				499,675
LEISURE PRODUCTS — 0.13%
Photo-Me International PLC		18,907		40,381
				40,381
LIFE SCIENCES TOOLS & SERVICES — 0.32%
Clinigen Healthcare Ltd.a		7,004		100,629
				100,629
MACHINERY — 3.09%
Bodycote PLC		13,706		168,838
Fenner PLC		13,194		58,314
Morgan Advanced Materials PLC		20,429		78,998

SCHEDULES OF INVESTMENTS 21

Schedule of Investments  (Continued)

iSHARES^® MSCI UNITED KINGDOM SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
Rotork PLC		62,293	$	183,973
Spirax-Sarco Engineering PLC		5,265		381,273
Vesuvius PLC		15,533		115,687
				987,083
MEDIA — 4.08%
Ascential PLC		28,675		138,781
Cineworld Group PLC		13,630		113,720
Daily Mail & General Trust PLC Class A NVS		20,519		164,852
Entertainment One Ltd.		24,548		75,915
Informa PLC		58,990		524,860
ITE Group PLC		19,397		44,239
UBM PLC		28,200		241,097
				1,303,464
METALS & MINING — 2.83%
Acacia Mining PLC		11,776		30,712
Centamin PLC		78,355		152,961
Evraz PLC		25,630		110,702
Ferrexpo PLC		21,191		81,726
Hill & Smith Holdings PLC		5,620		93,055
Hochschild Mining PLC		18,092		66,184
KAZ Minerals PLCa		17,589		190,494
Lonmin PLCa,c		18,520		20,284
Pan African Resources PLC		138,387		25,856
Petra Diamonds Ltd.a		38,182		46,321
SolGold PLCa		48,312		22,567
Vedanta Resources PLC		5,803		63,745
				904,607
MULTI-UTILITIES — 0.20%
Telecom Plus PLC		4,487		63,021
				63,021
MULTILINE RETAIL — 1.05%
B&M European Value Retail SA		60,851		291,997
Debenhams PLC		83,840		43,483
				335,480
OIL, GAS & CONSUMABLE FUELS — 2.01%
Amerisur Resources PLCa,c		71,511		13,822
Cairn Energy PLCa		41,644		92,028
EnQuest PLC ADRa		80,245		26,108
Faroe Petroleum PLCa		22,576		25,018
Hurricane Energy PLCa,c		104,562		37,388
Nostrum Oil & Gas PLCa		6,067		29,613
Ophir Energy PLCa		50,801		50,731
Pantheon Resources PLCa,c		14,096		7,992

Security	Shares		Value
Premier Oil PLCa,c		36,276	$	25,943
SOCO International PLC		14,512		22,252
Sound Energy PLCa,c		43,427		27,140
Stobart Group Ltd.		22,636		85,461
Tullow Oil PLCa		99,013		199,157
				642,653
PHARMACEUTICALS — 2.35%
BTG PLCa		27,571		247,443
Dechra Pharmaceuticals PLC		6,670		164,415
Indivior PLCa		51,615		277,075
Vectura Group PLCa		43,770		61,814
				750,747
PROFESSIONAL SERVICES — 1.28%
Hays PLC		98,136		231,409
Pagegroup PLC		23,380		153,795
Staffline Group PLC		1,423		22,737
				407,941
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.10%
Capital & Counties Properties PLC		54,622		190,949
Countrywide PLC		12,169		21,796
Foxtons Group PLC		19,041		21,775
Grainger PLC		29,849		98,232
Helical PLC		7,137		30,532
Purplebricks Group PLCa		15,497		95,550
Savills PLC		10,109		115,345
ST Modwen Properties PLC		13,601		61,953
Watkin Jones PLC		12,727		35,259
				671,391
ROAD & RAIL — 1.62%
FirstGroup PLCa		86,473		130,813
Go-Ahead Group PLC		3,104		72,034
National Express Group PLC		32,971		152,520
Northgate PLC		9,607		49,900
Redde PLC		21,828		45,776
Stagecoach Group PLC		30,800		66,318
				517,361
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.34%
Imagination Technologies Group PLCa		18,586		32,511
IQE PLCa		43,775		77,276
				109,787
SOFTWARE — 3.37%
AVEVA Group PLC		4,580		113,782
Blue Prism Group PLCa		2,663		39,118

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (Continued)

iSHARES^® MSCI UNITED KINGDOM SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
GB Group PLCc		9,782	$	48,528
Micro Focus International PLC		16,443		481,595
Playtech PLC		21,582		264,190
Sophos Group PLCb		19,834		128,552
				1,075,765
SPECIALTY RETAIL — 2.60%
Card Factory PLC		22,000		94,314
Dunelm Group PLC		7,268		54,740
Halfords Group PLC		14,360		59,748
JD Sports Fashion PLC		31,353		130,936
Lookers PLC		22,710		32,043
Pendragon PLC		102,136		42,114
Pets at Home Group PLC		25,056		58,890
Sports Direct International PLCa,c		17,915		89,567
SuperGroup PLC		3,778		77,403
WH Smith PLC		7,974		189,983
				829,738
TEXTILES, APPAREL & LUXURY GOODS — 0.28%
Jimmy Choo PLCa		8,257		24,460
Ted Baker PLC		2,047		65,810
				90,270
THRIFTS & MORTGAGE FINANCE — 0.49%
OneSavings Bank PLC		10,503		53,363
Paragon Group of Companies PLC (The)		19,488		102,831
				156,194
TRADING COMPANIES & DISTRIBUTORS — 1.93%
Diploma PLC		8,107		113,133
Grafton Group PLC		16,116		163,223
Howden Joinery Group PLC		45,059		247,339
SIG PLC		40,211		92,281
				615,976
TRANSPORTATION INFRASTRUCTURE — 0.90%
BBA Aviation PLC		73,863		287,242
				287,242
WATER UTILITIES — 0.98%
Pennon Group PLC		29,813		311,934
				311,934
TOTAL COMMON STOCKS
(Cost: $30,196,752)				31,814,442

Security	Shares		Value
SHORT-TERM INVESTMENTS — 2.46%
MONEY MARKET FUNDS — 2.46%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		776,946	$	777,179
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		7,050		7,050
				784,229
TOTAL SHORT-TERM INVESTMENTS
(Cost: $784,120)				784,229
TOTAL INVESTMENTS IN SECURITIES — 102.08%
(Cost: $30,980,872)g				32,598,671
Other Assets, Less Liabilities — (2.08)%				(663,691	)
NET ASSETS — 100.00%			$	31,934,980

ADR  —  American Depositary Receipts

NVS  —  Non-Voting Shares

^a Non-income earning security.

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

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

^d Affiliated issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $31,590,160. Net unrealized appreciation was $1,008,511, of which $3,898,699 represented gross unrealized appreciation on investments and $2,890,188 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments  (Continued)

iSHARES^® MSCI UNITED KINGDOM SMALL-CAP ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		1,117,597		—			(340,651	)b		776,946	$	777,179	$	(28	)	$	109	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		3,642		3,408	b		—			7,050		7,050		—			—		114
											$	784,229	$	(28	)	$	109	$	114

^a Includes realized capital gain distributions from an affiliated fund, if any.

^b Net of shares purchased and sold.

^c Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	31,814,442	$	—	$	—	$	31,814,442
Money market funds		784,229		—		—		784,229
Total	$	32,598,671	$	—	$	—	$	32,598,671

See notes to financial statements.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

August 31, 2017

	iShares Currency Hedged MSCI United Kingdom ETF			iShares MSCI United Kingdom ETF			iShares MSCI United Kingdom Small-Cap ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	—		$	3,140,741,623		$	30,196,752
Affiliated (Note 2)		18,402,221			12,367,685			784,120
Total cost of investments in securities	$	18,402,221		$	3,153,109,308		$	30,980,872
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	—		$	2,735,519,460		$	31,814,442
Affiliated (Note 2)		19,113,599			12,367,685			784,229
Foreign currency, at valueb		—			9,018,424			53,526
Foreign currency pledged to broker for futures contracts, at valueb		—			1,558,225			—
Receivables:
Investment securities sold		—			1,525,316			342,887
Dividends		10			23,786,061			91,029
Unrealized appreciation on forward currency contracts (Note 6)		343,692			—			—
Futures variation margin		—			178,231			—
Tax reclaims		—			59,548			5,929
Total Assets		19,457,301			2,784,012,950			33,092,042
LIABILITIES
Payables:
Investment securities purchased		285,120			6,267,892			364,004
Collateral for securities on loan (Note 1)		—			11,879,466			777,098
Unrealized depreciation on forward currency contracts (Note 6)		99,236			—			—
Investment advisory fees (Note 2)		—			1,119,729			15,960
Total Liabilities		384,356			19,267,087			1,157,062
NET ASSETS	$	19,072,945		$	2,764,745,863		$	31,934,980
Net assets consist of:
Paid-in capital	$	24,173,966		$	3,424,305,777		$	31,959,480
Undistributed net investment income		—			24,514,339			83,989
Accumulated net realized loss		(6,056,855	)		(278,827,802	)		(1,724,773	)
Net unrealized appreciation (depreciation)		955,834			(405,246,451	)		1,616,284
NET ASSETS	$	19,072,945		$	2,764,745,863		$	31,934,980
Shares outstandingc		800,000			81,900,000	d		800,000
Net asset value per share	$	23.84		$	33.76	d	$	39.92

^a  Securities on loan with values of $  —, $11,393,448 and $741,730, respectively. See Note 1.

^b  Cost of foreign currency including currency pledged to broker for futures contracts: $  —, $10,694,474 and $53,690, respectively.

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

^d  Shares outstanding and net asset value per share reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.

FINANCIAL STATEMENTS 25

Statements of Operations

iSHARES^® TRUST

Year ended August 31, 2017

	iShares Currency Hedged MSCI United Kingdom ETF			iShares MSCI United Kingdom ETF			iShares MSCI United Kingdom Small-Cap ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	—		$	107,546,698		$	858,712
Dividends — affiliated (Note 2)		1,409,899			10,098			114
Securities lending income — affiliated — net (Note 2)		7,879			59,620			34,532
Total investment income		1,417,778			107,616,416			893,358
EXPENSES
Investment advisory fees (Note 2)		441,433			11,471,919			170,471
Proxy fees		1,877			59,144			771
Total expenses		443,310			11,531,063			171,242
Less investment advisory fees waived (Note 2)		(443,310	)		—			—
Net expenses		—			11,531,063			171,242
Net investment income		1,417,778			96,085,353			722,116
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		—			(44,738,816	)		(1,389,533	)
Investments — affiliated (Note 2)		(877,597	)		1,388			(28	)
In-kind redemptions — unaffiliated		—			42,471,286			999,847
In-kind redemptions — affiliated (Note 2)		6,068,364			—			—
Futures contracts		—			2,710,835			—
Foreign currency transactions		—			638,921			2,985
Forward currency contracts		1,673,293			—			—
Realized gain distributions from affiliated funds		1			4			—
Net realized gain (loss)		6,864,061			1,083,618			(386,729	)
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		—			181,589,974			3,809,631
Investments — affiliated (Note 2)		225,929			—			109
Forward currency contracts		433,737			—			—
Futures contracts		—			(826,881	)		—
Translation of assets and liabilities in foreign currencies		—			(223,972	)		(740	)
Net change in unrealized appreciation/depreciation		659,666			180,539,121			3,809,000
Net realized and unrealized gain		7,523,727			181,622,739			3,422,271
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	8,941,505		$	277,708,092		$	4,144,387

^a  Net of foreign withholding tax of $  —, $1,048,424 and $11,773, respectively.

See notes to financial statements.

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Currency Hedged MSCI United Kingdom ETF						iShares MSCI United Kingdom ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017a			Year ended August 31, 2016a
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,417,778		$	194,174		$	96,085,353		$	85,587,553
Net realized gain (loss)		6,864,061			497,376			1,083,618			(145,902,668	)
Net change in unrealized appreciation/depreciation		659,666			432,742			180,539,121			(86,625,910	)
Net increase (decrease) in net assets resulting from operations		8,941,505			1,124,292			277,708,092			(146,941,025	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,418,189	)		(193,895	)		(84,560,284	)		(97,031,722	)
From net realized gain		(8,272,441	)		(59,274	)		—			—
Total distributions to shareholders		(9,690,630	)		(253,169	)		(84,560,284	)		(97,031,722	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		47,661,215			118,249,408			1,013,351,767			121,795,339
Cost of shares redeemed		(142,236,695	)		(7,044,338	)		(370,634,422	)		(1,159,767,653	)
Net increase (decrease) in net assets from capital share transactions		(94,575,480	)		111,205,070			642,717,345			(1,037,972,314	)
INCREASE (DECREASE) IN NET ASSETS		(95,324,605	)		112,076,193			835,865,153			(1,281,945,061	)
NET ASSETS
Beginning of year		114,397,550			2,321,357			1,928,880,710			3,210,825,771
End of year	$	19,072,945		$	114,397,550		$	2,764,745,863		$	1,928,880,710
Undistributed net investment income included in net assets at end of year	$	—		$	279		$	24,514,339		$	11,986,657
SHARES ISSUED AND REDEEMED
Shares sold		2,000,000			4,800,000			33,800,000			3,800,000
Shares redeemed		(5,800,000	)		(300,000	)		(13,400,000	)		(35,900,000	)
Net increase (decrease) in shares outstanding		(3,800,000	)		4,500,000			20,400,000			(32,100,000	)

^a  Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.

FINANCIAL STATEMENTS 27

Statements of Changes in Net Assets  (Continued)

iSHARES^® TRUST

	iShares MSCI United Kingdom Small-Cap ETF
	Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	722,116		$	438,597
Net realized loss		(386,729	)		(315,964	)
Net change in unrealized appreciation/depreciation		3,809,000			(1,204,272	)
Net increase (decrease) in net assets resulting from operations		4,144,387			(1,081,639	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(787,287	)		(427,464	)
Total distributions to shareholders		(787,287	)		(427,464	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		9,014,541			17,589,399
Cost of shares redeemed		(5,571,542	)		(7,310,112	)
Net increase in net assets from capital share transactions		3,442,999			10,279,287
INCREASE IN NET ASSETS		6,800,099			8,770,184
NET ASSETS
Beginning of year		25,134,881			16,364,697
End of year	$	31,934,980		$	25,134,881
Undistributed net investment income included in net assets at end of year	$	83,989		$	103,415
SHARES ISSUED AND REDEEMED
Shares sold		250,000			500,000
Shares redeemed		(150,000	)		(200,000	)
Net increase in shares outstanding		100,000			300,000

See notes to financial statements.

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Currency Hedged MSCI United Kingdom  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Jun. 29, 2015a to Aug. 31, 2015
Net asset value, beginning of period	$	24.87		$	23.21		$	24.35
Income from investment operations:
Net investment income (loss)b		0.48			0.43			(0.00	)c
Net realized and unrealized gain (loss)d		2.39			2.48			(1.14	)
Total from investment operations		2.87			2.91			(1.14	)
Less distributions from:
Net investment income		(0.84	)		(1.01	)		—
Net realized gain		(3.06	)		(0.24	)		—
Total distributions		(3.90	)		(1.25	)		—
Net asset value, end of period	$	23.84		$	24.87		$	23.21
Total return		13.48	%		12.90	%		(4.64	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	19,073		$	114,398		$	2,321
Ratio of expenses to average net assetsf,g		0.00	%		0.00	%		0.01	%
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsf		1.99	%		1.80	%		(0.01	)%
Portfolio turnover rateh,i		20	%		4	%		0	%e

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 30 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 29

Financial Highlights  (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI United Kingdom ETF
	Year ended Aug. 31, 2017a			Year ended Aug. 31, 2016a			Year ended Aug. 31, 2015a			Year ended Aug. 31, 2014a			Year ended Aug. 31, 2013a
Net asset value, beginning of year	$	31.36		$	34.30		$	41.05		$	37.09		$	33.83
Income from investment operations:
Net investment incomeb		1.13			1.22			1.30			2.76	c		1.32
Net realized and unrealized gain (loss)d		2.43			(2.73	)		(6.66	)		3.71			2.97
Total from investment operations		3.56			(1.51	)		(5.36	)		6.47			4.29
Less distributions from:
Net investment income		(1.16	)		(1.43	)		(1.39	)		(2.51	)		(1.03	)
Total distributions		(1.16	)		(1.43	)		(1.39	)		(2.51	)		(1.03	)
Net asset value, end of year	$	33.76		$	31.36		$	34.30		$	41.05		$	37.09
Total return		11.60	%		(4.44	)%		(13.26	)%		17.56	%		12.91	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	2,764,746		$	1,928,881		$	3,210,826		$	4,236,360		$	2,670,796
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		4.07	%		3.80	%		3.46	%		6.71	%c		3.61	%
Portfolio turnover ratee		4	%		5	%		4	%		10	%		4	%

^a  Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

^b  Based on average shares outstanding throughout each period.

^c  Includes a one-time special distribution from Vodafone Group PLC which represented $0.66 per share and 3.23% of average net assets.

^d  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.

^e  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.

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights  (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI United Kingdom Small-Cap ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	35.91		$	40.91		$	40.82		$	35.27		$	27.95
Income from investment operations:
Net investment incomea		0.92			1.02			1.07			0.95			0.91
Net realized and unrealized gain (loss)b		4.12			(4.89	)		0.40			5.26			7.41
Total from investment operations		5.04			(3.87	)		1.47			6.21			8.32
Less distributions from:
Net investment income		(1.03	)		(1.13	)		(1.38	)		(0.66	)		(1.00	)
Total distributions		(1.03	)		(1.13	)		(1.38	)		(0.66	)		(1.00	)
Net asset value, end of year	$	39.92		$	35.91		$	40.91		$	40.82		$	35.27
Total return		14.40	%		(9.66	)%		3.84	%		17.66	%		30.27	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	31,935		$	25,135		$	16,365		$	32,656		$	8,818
Ratio of expenses to average net assets		0.59	%		0.59	%		0.59	%		0.59	%		0.59	%
Ratio of net investment income to average net assets		2.50	%		2.72	%		2.71	%		2.29	%		2.82	%
Portfolio turnover ratec		19	%		21	%		17	%		13	%		19	%

^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 31

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
Currency Hedged MSCI United Kingdom	Non-diversified
MSCI United Kingdom	Non-diversified
MSCI United Kingdom Small-Cap	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. Currently the iShares Currency Hedged MSCI United Kingdom ETF seeks to achieve its investment objective by investing a substantial portion of its assets in the iShares MSCI United Kingdom ETF. The financial statements and schedule of investments for the iShares MSCI United Kingdom ETF are included in this report and should be read in conjunction with the financial statements of the iShares Currency Hedged MSCI United Kingdom ETF.

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

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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.

• Exchange-traded funds and closed-end funds 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 fund is primarily traded. Funds 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”).

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

• Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated forward exchange rates are used for contracts with interim settlement dates for which quotations are not available.

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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 to valuation techniques are categorized into a fair value 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;

NOTES TO FINANCIAL STATEMENTS 33

Notes to Financial Statements  (Continued)

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• 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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, the iShares Currency Hedged MSCI United Kingdom ETF has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.

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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 August 31, 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 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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

NOTES TO FINANCIAL STATEMENTS 35

Notes to Financial Statements(Continued)

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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 August 31, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
MSCI United Kingdom
Morgan Stanley & Co. LLC	$	8,478,295	$	8,478,295	$	—
UBS AG		2,915,153		2,915,153		—
	$	11,393,448	$	11,393,448	$	—
MSCI United Kingdom Small-Cap
Citigroup Global Markets Inc.	$	36,702	$	36,702	$	—
Credit Suisse Securities (USA) LLC		130,940		130,940		—
Deutsche Bank Securities Inc.		128,249		128,249		—
HSBC Bank PLC		28,376		28,376		—
Merrill Lynch, Pierce, Fenner & Smith		174,606		174,606		—
Morgan Stanley & Co. LLC		164,900		164,900		—
UBS AG		77,957		77,957		—
	$	741,730	$	741,730	$	—

^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.

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 Currency Hedged MSCI United Kingdom ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI United Kingdom ETF (“EWU”), after taking into account any fee waivers

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iSHARES^® TRUST

by EWU, plus 0.03%. Additionally, BFA has contractually agreed to a reduction in its investment advisory fee of 0.03% through December 31, 2020.

For its investment advisory services to the iShares MSCI United Kingdom 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
	0.59	%	First $7 billion
	0.54		Over $7 billion, up to and including $11 billion
	0.49		Over $11 billion, up to and including $24 billion
	0.44		Over $24 billion, up to and including $48 billion
	0.40		Over $48 billion, up to and including $72 billion
	0.36		Over $72 billion, up to and including $96 billiona
	0.32		Over $96 billiona

^a  Break level added or amended effective July 1, 2017.

For its investment advisory services to the iShares MSCI United Kingdom Small-Cap ETF, BFA is entitled to an annual advisory fee of 0.59%, accrued daily and paid monthly by the Fund, based on the Fund’s average daily net assets.

The U.S. Securities and Exchange Commission 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 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 Fund, pursuant to a securities lending agreement, will retain 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 August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Currency Hedged MSCI United Kingdom	$	1,822
MSCI United Kingdom		16,041
MSCI United Kingdom Small-Cap		8,265

NOTES TO FINANCIAL STATEMENTS 37

Notes to Financial Statements  (Continued)

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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 August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI United Kingdom	$	3,305,668	$	4,680,214
MSCI United Kingdom Small-Cap		132,928		22,864

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 August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
Currency Hedged MSCI United Kingdom	$	14,017,799	$	18,929,960
MSCI United Kingdom		207,472,311		105,661,832
MSCI United Kingdom Small-Cap		5,450,053		5,467,984

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Currency Hedged MSCI United Kingdom	$	47,759,647	$	143,641,453
MSCI United Kingdom		982,331,937		366,277,154
MSCI United Kingdom Small-Cap		8,983,654		5,494,334

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.

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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.

The Board authorized a one-for-two reverse stock split for the iShares MSCI United Kingdom ETF, effective after the close of trading on November 4, 2016. The impact of the stock split was to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund. The financial statements for the Fund have been adjusted to reflect the reverse stock split.

5. FUTURES CONTRACTS

The Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements 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 notional value of the contract. Such receipts or payments are known as margin variation 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 notional value of the contract at the time it was opened and the notional value at the time it was closed. Losses may arise if the notional 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 by the iShares MSCI United Kingdom ETF as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Assets
Equity contracts:
Variation margin / Net assets consist of — net unrealized appreciation (depreciation)a	$	178,231

^a  Represents cumulative appreciation of futures contracts as reported in the schedule of investments.

NOTES TO FINANCIAL STATEMENTS 39

Notes to Financial Statements(Continued)

iSHARES^® TRUST

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI United Kingdom ETF during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	2,710,835	$	(826,881	)

The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI United Kingdom ETF for the year ended August 31, 2017:

Average value of contracts purchased $ 21,767,967

6. FORWARD CURRENCY CONTRACTS

The currency-hedged fund uses forward currency contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held by the Fund or its underlying fund. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange.

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Non-deliverable forward currency contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. A fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the fund failing to close out its position due to an illiquid market.

The following table shows the value of forward currency contracts held by the iShares Currency Hedged MSCI United Kingdom ETF as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Assets
Forward currency contracts:
Unrealized appreciation on forward currency contracts/Net assets consist of — net unrealized appreciation (depreciation)	$	343,692
Liabilities
Forward currency contracts:
Unrealized depreciation on forward currency contracts/Net assets consist of — net unrealized appreciation (depreciation)	$	99,236

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Notes to Financial Statements(Continued)

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The following table shows the realized and unrealized gains (losses) on forward currency contracts held by the iShares Currency Hedged MSCI United Kingdom ETF during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Forward currency contracts	$	1,673,293	$	433,737

The following table shows the average quarter-end balances of outstanding forward currency contracts for the iShares Currency Hedged MSCI United Kingdom ETF for the year ended August 31, 2017:

Average amounts purchased in U.S. dollars	$	84,749,710
Average amounts sold in U.S. dollars		147,914,211

The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.

The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Except for NDFs, the forward currency contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as “Cash pledged to broker for forward currency contracts” on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as “Investments in securities — affiliated” and “Payable due to broker for collateral on forwards.” To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.

NOTES TO FINANCIAL STATEMENTS 41

Notes to Financial Statements(Continued)

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The following table presents the exposure of the open forward currency contracts held by the iShares Currency Hedged MSCI United Kingdom ETF that are subject to potential offset on the statement of assets and liabilities as of August 31, 2017:

	Derivative Assets Subject to Offsetting		Derivatives Available for Offset			Net Amount of Derivative Assets
Forward currency contracts	$	343,692	$	(38,403	)	$	305,289
	Derivative Liabilities Subject to Offsetting		Derivatives Available for Offset			Net Amount of Derivative Liabilities
Forward currency contracts	$	99,236	$	(38,403	)	$	60,833

7. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. 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 issuers located in a single country, it assumes the risk that economic, political and social conditions in that country 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.

8. 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

NOTES TO FINANCIAL STATEMENTS 43

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

August 31, 2017, attributable to passive foreign investment companies, the expiration of capital loss carryforwards, 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
Currency Hedged MSCI United Kingdom	$	5,330,765	$	132	$	(5,330,897	)
MSCI United Kingdom		15,939,760		1,002,613		(16,942,373	)
MSCI United Kingdom Small-Cap		918,678		45,745		(964,423	)

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
Currency Hedged MSCI United Kingdom
Ordinary income	$	4,770,132	$	217,579
Long-term capital gain		4,920,498		35,590
	$	9,690,630	$	253,169
MSCI United Kingdom
Ordinary income	$	84,560,284	$	97,031,722
MSCI United Kingdom Small-Cap
Ordinary income	$	787,287	$	427,464

As of August 31, 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
Currency Hedged MSCI United Kingdom	$	—	$	—		$	689,451		$	(5,790,472	)	$	(5,101,021	)
MSCI United Kingdom		29,542,125		(182,091,280	)		(507,010,759	)		—			(659,559,914	)
MSCI United Kingdom Small-Cap		203,580		(1,235,076	)		1,006,996			—			(24,500	)

^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 realization for tax purposes of unrealized gains (losses) on certain futures contracts and foreign currency contracts, 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 August 31, 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
MSCI United Kingdom	$	136,016,930	$	23,559,917	$	22,514,433	$	182,091,280
MSCI United Kingdom Small-Cap		1,235,076		—		—		1,235,076

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

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (Continued)

iSHARES^® TRUST

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 August 31, 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.

9. LEGAL PROCEEDINGS

On June 16, 2016, investors (the “Plaintiffs”) 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 putative 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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

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.

NOTES TO FINANCIAL STATEMENTS 45

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and

Shareholders of the iShares Currency Hedged MSCI United Kingdom ETF,

iShares MSCI United Kingdom ETF and iShares MSCI United Kingdom Small-Cap 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 Currency Hedged MSCI United Kingdom ETF, iShares MSCI United Kingdom ETF and iShares MSCI United Kingdom Small-Cap ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

46 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 August 31, 2017:

iShares ETF	Qualified Dividend Income
Currency Hedged MSCI United Kingdom	$	1,388,172
MSCI United Kingdom		107,401,254
MSCI United Kingdom Small-Cap		718,948

For the fiscal year ended August 31, 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
MSCI United Kingdom	$	108,594,983	$	1,048,401
MSCI United Kingdom Small-Cap		870,485		11,408

For the fiscal year ended August 31, 2017, the iShares Currency Hedged MSCI United Kingdom ETF intends to pass through to its shareholders foreign source income earned of $1,419,486 and foreign taxes paid of $9,977 by the underlying fund.

The iShares Currency Hedged MSCI United Kingdom ETF hereby designates $4,940,622 as 20% rate long-term capital gain dividends for the fiscal year ended August 31, 2017.

The iShares Currency Hedged MSCI United Kingdom ETF hereby designates $3,351,940 as short-term capital gain dividends for the fiscal year ended August 31, 2017.

TAX INFORMATION 47

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

I. iShares Currency Hedged MSCI United Kingdom ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, EXTENT and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 49

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that to the extent that the Fund invests in an underlying iShares fund that has breakpoints, the shareholders of the Fund would benefit from such breakpoints in the underlying iShares fund’s investment advisory fee rate as the assets of the underlying iShares fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract(Continued)

iSHARES^® TRUST

value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI United Kingdom ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 51

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract  (Continued)

iSHARES^® TRUST

year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for an additional breakpoint as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 53

Board Review and Approval of Investment Advisory Contract  (Continued)

iSHARES^® TRUST

higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

III. iShares MSCI United Kingdom Small-Cap ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract  (Continued)

iSHARES^® TRUST

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 55

Board Review and Approval of Investment Advisory Contract  (Continued)

iSHARES^® TRUST

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract  (Continued)

iSHARES^® TRUST

complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 57

Supplemental Information (Unaudited)

iSHARES^® TRUST

Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.

Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

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
Currency Hedged MSCI United Kingdom	$	0.842634	$	3.063867	$	—	$	3.906501		22	%		78	%		—	%		100	%
MSCI United Kingdom		1.162135		—		—		1.162135		100			—			—			100
MSCI United Kingdom Small-Cap		1.028768		—		—		1.028768		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 ask on the primary securities exchange on which 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 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,

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information  (Unaudited) (Continued)

iSHARES^® TRUST

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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding 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. Each line in each 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 Currency Hedged MSCI United Kingdom ETF

Period Covered: June 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.0%		1		0.20	%
Greater than 0.5% and Less than 1.0%		2		0.39
Greater than 0.0% and Less than 0.5%		277		54.63
At NAV		23		4.54
Less than 0.0% and Greater than –0.5%		204		40.24
		507		100.00	%

iShares MSCI United Kingdom ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.0%		1		0.07	%
Greater than 1.5% and Less than 2.0%		12		0.87
Greater than 1.0% and Less than 1.5%		58		4.19
Greater than 0.5% and Less than 1.0%		303		21.91
Greater than 0.0% and Less than 0.5%		617		44.62
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		293		21.20
Less than –0.5% and Greater than –1.0%		74		5.35
Less than –1.0% and Greater than –1.5%		10		0.72
Less than –1.5% and Greater than –2.0%		2		0.14
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –2.5%		2		0.14
		1,383		100.00	%

SUPPLEMENTAL INFORMATION 59

Supplemental Information  (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI United Kingdom Small-Cap ETF

Period Covered: January 25, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		4		0.29
Greater than 1.5% and Less than 2.0%		18		1.32
Greater than 1.0% and Less than 1.5%		95		6.94
Greater than 0.5% and Less than 1.0%		295		21.56
Greater than 0.0% and Less than 0.5%		472		34.51
At NAV		13		0.95
Less than 0.0% and Greater than –0.5%		382		27.93
Less than –0.5% and Greater than –1.0%		77		5.63
Less than –1.0% and Greater than –1.5%		9		0.66
Less than –1.5% and Greater than –2.0%		1		0.07
Less than –2.0% and Greater than –2.5%		1		0.07
		1,368		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 MSCI United Kingdom 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.

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information  (Unaudited) (Continued)

iSHARES^® TRUST

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.

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 210.42 thousand. This figure is comprised of fixed remuneration of USD 82.78 thousand and variable remuneration of USD 127.64 thousand. 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 29.10 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 7.01 thousand.

SUPPLEMENTAL INFORMATION 61

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 344 funds (as of August 31, 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.

62 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).	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 (14 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); Equity Plus Committee Chair (since 2017).	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 (62)	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); 15(c) Committee Chair (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).

TRUSTEE AND OFFICER INFORMATION 63

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
John E. Martinez (56)	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).
Madhav V. Rajan (53)	Trustee (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); 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).

64 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 (42)	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 (42)	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 (55)	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 of 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 65

Notes:

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 MSCI 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-813-0817

AUGUST 31, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares Adaptive Currency Hedged MSCI Japan ETF  |  DEWJ  |  BATS

^Ø  iShares Currency Hedged MSCI Australia ETF  |  HAUD  |  NYSE Arca

^Ø  iShares Currency Hedged MSCI Canada ETF  |  HEWC  |  NYSE Arca

^Ø  iShares Currency Hedged MSCI Japan ETF  |  HEWJ  |  NYSE Arca

^Ø  iShares Currency Hedged MSCI Mexico ETF  |  HEWW  |  NYSE Arca

^Ø  iShares Currency Hedged MSCI South Korea ETF  |  HEWY  |  NYSE Arca

^Ø  iShares Edge MSCI Min Vol Global Currency Hedged ETF  |  HACV  |  BATS

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	20
Shareholder Expenses	20
Schedules of Investments	21
iShares Adaptive Currency Hedged MSCI Japan ETF	21
iShares Currency Hedged MSCI Australia ETF	23
iShares Currency Hedged MSCI Canada ETF	25
iShares Currency Hedged MSCI Japan ETF	27
iShares Currency Hedged MSCI Mexico ETF	30
iShares Currency Hedged MSCI South Korea ETF	32
iShares Edge MSCI Min Vol Global Currency Hedged ETF	34
Financial Statements	37
Financial Highlights	47
Notes to Financial Statements	54
Report of Independent Registered Public Accounting Firm	71
Tax Information	72
Board Review and Approval of Investment Advisory Contract	73
Supplemental Information	83
Trustee and Officer Information	88
Additional Financial Information	92
Schedules of Investments	93
iShares Edge MSCI Min Vol Global ETF	93
iShares MSCI Australia ETF	100
iShares MSCI Canada ETF	103
iShares MSCI Japan ETF	107
iShares MSCI Mexico Capped ETF	114
iShares MSCI South Korea Capped ETF	117
Financial Statements	121
Financial Highlights	128
Notes to Financial Statements	134
Report of Independent Registered Public Accounting Firm	149

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended August 31, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 17.11% in U.S. dollar terms for the reporting period.

The primary factor behind the robust performance of global equity markets was improving global economic growth, driven largely by the continuation of accommodative monetary policies from many of the world’s central banks. Signs of stronger economic activity in Europe emerged as the European Central Bank (“ECB”) maintained policies such as quantitative easing and negative interest rates. Economic growth rates in China and Japan, the largest economies in Asia, also increased during the reporting period, reflecting efforts by the People’s Bank of China (“PBOC”) and the Bank of Japan (“BOJ”) to stimulate economic activity. Stronger economic growth led several central banks to consider reducing their economic stimulus measures. For example, late in the reporting period, the ECB discussed the possibility of tapering its quantitative easing program, while the PBOC increased short-term interest rates during the first half of 2017.

On a regional basis, European equity markets posted the best returns among developed markets, advancing by approximately 20% in U.S. dollar terms for the reporting period. European stocks benefited from improving economic conditions and stronger corporate earnings. In addition, election outcomes in France and the Netherlands eased investor concerns about nationalist presidential candidates and their opposition to the European Union (“E.U.”). Currency fluctuations also contributed meaningfully to European equity performance in U.S. dollar terms as the euro appreciated by approximately 6% against the U.S. dollar during the reporting period. The best-performing European stock markets included Austria, Italy, and Spain, while Ireland and Belgium posted the weakest returns.

Equity markets in the Asia-Pacific region gained about 16% in U.S. dollar terms for the reporting period, led by Singapore and Hong Kong. Japanese stocks also posted strong returns, benefiting from improving consumer spending and employment trends that contributed to the ongoing recovery in the Japanese economy. However, equity market returns in Japan were hindered by a decline in the Japanese yen, which depreciated by approximately 6% against the U.S. dollar.

The U.S. stock market returned approximately 15% for the reporting period. Despite mixed U.S. economic data, U.S. stocks advanced initially in anticipation of pro-business fiscal policies from the new presidential administration. Although the administration struggled to implement its fiscal agenda, stocks continued to move higher as better global economic conditions led to a notable improvement in corporate earnings growth, particularly for multinational companies with significant operations outside of the U.S. U.S. stocks advanced despite three short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the reporting period, which increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to start reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017.

Emerging markets stocks outperformed those in developed markets, returning more than 23% in U.S. dollar terms for the reporting period. Emerging markets in Eastern Europe were the best performers, led by Poland, Greece, and Hungary. Equity markets in the Middle East trailed for the reporting period amid continued geopolitical conflict in the region.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® ADAPTIVE CURRENCY HEDGED MSCI JAPAN ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.24%		15.13%		15.72%		15.24%		15.13%		15.72%
Since Inception		5.57%		5.59%		6.10%		9.41%		9.44%		10.28%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/5/16. The first day of secondary market trading was 1/7/16.

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 20 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,063.90	$	0.00	$	1,000.00	$	1,025.20	$	0.00		0.00%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

The iShares Adaptive Currency Hedged MSCI Japan ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Japanese equities while dynamically hedging currency risk for a U.S. dollar based investor, as represented by the MSCI Japan Adaptive Hedge to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Japan ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 15.24%, net of fees, while the total return for the Index was 15.72%.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® ADAPTIVE CURRENCY HEDGED MSCI JAPAN ETF

Japan’s economy expanded for the reporting period, reaching its longest period of sustained growth since 2006. Consumer spending and exports were dual drivers of growth. Private consumption, which represented more than half of the country’s gross domestic product, rose as demand for clothing and mobile phones climbed. A weaker Japanese yen and global economic growth supported export demand.

Every sector contributed to the Index’s performance for the reporting period in U.S. dollar terms. The information technology sector was the largest sector contributor to the Index’s return. Companies in the sector generally benefited from rising demand as global economic growth strengthened. Increased shipments included those of flat panels, semiconductor manufacturing equipment, and electronics to Asian neighbors. The technology hardware and equipment industry and the software and services industry were the leading contributors in the sector.

Another significant contributor to the Index’s return for the reporting period in U.S. dollar terms was the industrials sector. Accelerating manufacturing activity supported the sector, driven by increased export demand, particularly for cars. Trading companies and distributors led the sector’s gains, followed by machinery companies.

Consumer discretionary stocks also contributed to the Index’s performance in U.S. dollar terms. Consumer spending, which has been a soft spot in the Japanese economy for several years, trended upward during the reporting period. The consumer durables industry supported the sector the most. Autos and components companies also contributed to the sector’s return amid strong global car sales.

In terms of currency performance, the Japanese yen depreciated against the U.S. dollar by approximately 6% for the reporting period. Extremely low inflation weighed on the Japanese yen, as the BOJ continued to signal low interest rates for the foreseeable future.

The adaptive currency hedging component of the Index employs a hedge ratio that modifies currency exposure based on the difference in interest rates, relative valuation, currency momentum, and currency volatility. The adaptive hedge fluctuated within a range of approximately 50% to 100% of the Index’s currency exposure during the reporting period. Partially hedging the declining Japanese yen helped offset some of the currency loss, however, the declining Japanese yen still had a relatively large negative impact on the Index’s performance for the reporting period.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Industrials	20.56	%
Consumer Discretionary	20.07
Information Technology	12.70
Financials	12.30
Consumer Staples	7.85
Health Care	7.29
Materials	6.73
Telecommunication Services	5.55
Real Estate	4.11
Utilities	1.94
Energy	0.90
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

Toyota Motor Corp.	4.47	%
Mitsubishi UFJ Financial Group Inc.	2.25
SoftBank Group Corp.	2.04
Sumitomo Mitsui Financial Group Inc.	1.56
Keyence Corp.	1.54
Sony Corp.	1.51
KDDI Corp.	1.49
Honda Motor Co. Ltd.	1.47
Mizuho Financial Group Inc.	1.26
Takeda Pharmaceutical Co. Ltd.	1.22
TOTAL	18.81	%

¹  Table shown is for the iShares MSCI Japan ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI AUSTRALIA ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.86%		10.13%		9.71%		9.86%		10.13%		9.71%
Since Inception		5.16%		5.23%		5.34%		11.57%		11.72%		11.94%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.

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 20 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,013.20	$	0.15	$	1,000.00	$	1,025.10	$	0.15		0.03%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

The iShares Currency Hedged MSCI Australia ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Australian equities while mitigating exposure to fluctuations between the value of the Australian dollar and the U.S. dollar, as represented by the MSCI Australia 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Australia ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 9.86%, net of fees, while the total return for the Index was 9.71%.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI AUSTRALIA ETF

As a resource-rich country, Australia is a key exporter of commodities. During the reporting period, rising commodities prices amid strengthening global demand drove up Australia’s mineral export levels, in turn pushing the country’s trade surplus to a record high. Improving economic growth in China was beneficial, as China takes in approximately 32% of Australia’s exports. Heavy flooding in the wake of Cyclone Debbie, however, temporarily constrained coal production as mines were damaged and roads and ports were closed.

The largest contributor to the Index’s performance in U.S. dollar terms during the reporting period was the financials sector. Banks were strong performers despite the dual challenges of margin erosion and increased capital requirements. In the first half of 2017, major banks increased their return on equity and reduced their average cost-to-income ratio, while increased competition and low interest rates modestly decreased margins.

Another key contributor to the Index’s performance was the materials sector. The metals and mining industry led sector gains, reflecting the rebound in global demand amid rising prices. Increased steel production in China supported demand for metallurgical coal and iron ore, both used in steel production. The consumer staples and healthcare sectors also contributed to the Index’s performance during the reporting period.

On the downside, the telecommunication services sector detracted modestly from the Index’s return in U.S. dollar terms for the reporting period. Although rising mobile broadband use offset a decline in revenues, increased usage required additional investment in mobile infrastructure.

In terms of currency performance, the Australian dollar appreciated against the U.S. dollar by approximately 5% for the reporting period, helped by rising commodities prices and strong international demand for Australian bonds. An improving Chinese economy also supported the Australian dollar, as exports to China were expected to increase.

The Australian dollar’s positive performance meant hedging activity detracted from the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of the Australian dollar’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of Australian equities measured in Australian dollars.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Financials	42.05	%
Materials	17.31
Real Estate	8.43
Consumer Staples	7.72
Health Care	7.05
Industrials	5.59
Energy	4.79
Consumer Discretionary	2.87
Utilities	2.29
Telecommunication Services	1.38
Information Technology	0.52
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

Commonwealth Bank of Australia	10.42	%
Westpac Banking Corp.	8.34
BHP Billiton Ltd.	6.99
Australia & New Zealand Banking Group Ltd.	6.86
National Australia Bank Ltd.	6.42
CSL Ltd.	4.64
Wesfarmers Ltd.	3.83
Woolworths Ltd.	2.67
Rio Tinto Ltd.	2.29
Macquarie Group Ltd.	2.23
TOTAL	54.69	%

¹  Table shown is for the iShares MSCI Australia ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI CANADA ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		6.86%		6.29%		7.45%		6.86%		6.29%		7.45%
Since Inception		4.49%		4.34%		4.90%		10.04%		9.67%		10.94%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.

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 20 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	991.20	$	0.15	$	1,000.00	$	1,025.10	$	0.15		0.03%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

The iShares Currency Hedged MSCI Canada ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Canadian equities while mitigating exposure to fluctuations between the value of the Canadian dollar and the U.S. dollar, as represented by the MSCI Canada 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Canada ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 6.86%, net of fees, while the total return for the Index was 7.45%.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI CANADA ETF

Canada’s economy grew steadily during the reporting period, reaching an annual pace of 4.5% for the second quarter of 2017. Household spending was a key driver of strength, supported by strong wages, low unemployment, and inexpensive credit. Exports also contributed to economic momentum, with energy products experiencing the largest increase. As a sign that the Canadian export market was diversifying, shipments to non-U.S. trade partners grew 15% during the reporting period. Real estate prices continued their multi-year boom, rising throughout the reporting period. Citing strong economic conditions, Canada’s central bank raised its key interest rate in July 2017, from 0.50% to 0.75%.

The financials sector, which represented about 42% of the Index on average during the reporting period, made the largest contribution to the Index’s return in U.S. dollar terms. Banks led sector gains, reflecting solid earnings among large banks despite low interest rates. Insurers and diversified financial companies also contributed, benefiting from economic growth and the prospect of rising interest rates.

Another meaningful contributor to the Index’s performance for the reporting period was the industrials sector. The road and rail industry led strength in the sector, partly due to a boost from a government infrastructure plan.

Additionally, the materials and consumer discretionary sectors contributed to the Index’s performance, with the metals and mining industry and strong consumer spending levels, respectively, supporting gains in the sectors. On the downside, the healthcare sector detracted modestly from the Index’s performance in U.S. dollar terms during the reporting period.

In terms of currency performance, the Canadian dollar appreciated against the U.S. dollar by approximately 5% for the reporting period, as the Bank of Canada increased interest rates and set expectations for further rate increases. Rising demand for Canada’s natural resources also bolstered the Canadian dollar.

The Canadian dollar’s positive performance meant hedging activity detracted from the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of the Canadian dollar’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of Canadian equities measured in Canadian dollars.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Financials	42.30	%
Energy	21.18
Materials	10.86
Industrials	7.67
Consumer Discretionary	5.27
Consumer Staples	4.29
Information Technology	2.74
Telecommunication Services	2.50
Utilities	2.17
Real Estate	0.69
Health Care	0.33
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

Royal Bank of Canada	8.17	%
Toronto-Dominion Bank (The)	7.42
Bank of Nova Scotia (The)	5.60
Canadian National Railway Co.	4.63
Enbridge Inc.	4.36
Suncor Energy Inc.	3.89
Bank of Montreal	3.45
TransCanada Corp.	3.27
Manulife Financial Corp.	2.89
Canadian Imperial Bank of Commerce	2.69
TOTAL	46.37	%

¹  Table shown is for the iShares MSCI Canada ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI JAPAN ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.50%		21.60%		22.16%		21.50%		21.60%		22.16%
Since Inception		8.97%		8.97%		8.71%		36.03%		36.03%		34.89%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/31/14. The first day of secondary market trading was 2/4/14.

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 20 for more information.

Shareholder Expenses
Actual							Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b			Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b			Annualized Expense Ratio a
$	1,000.00	$	1,059.20	$	0.00	c	$	1,000.00	$	1,025.20	$	0.00	c		0.00%	d

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

^c  Rounds to less than $0.01.

^d  Rounds to less than 0.01%.

The iShares Currency Hedged MSCI Japan ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Japanese equities while mitigating exposure to fluctuations between the value of the Japanese yen and the U.S. dollar, as represented by the MSCI Japan 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Japan ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 21.50%, net of fees, while the total return for the Index was 22.16%.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI JAPAN ETF

Japan’s economy expanded for the reporting period, reaching its longest period of sustained growth since 2006. Consumer spending and exports were dual drivers of growth. Private consumption, which represented more than half of the country’s gross domestic product, rose as demand for clothing and mobile phones climbed. A weaker Japanese yen and global economic growth supported export demand.

Every sector contributed to the Index’s performance for the reporting period in U.S. dollar terms. The information technology sector was the largest sector contributor to the Index’s return. Companies in the sector generally benefited from rising demand as global economic growth strengthened. Increased shipments included those of flat panels, semiconductor manufacturing equipment, and electronics to Asian neighbors. The technology hardware and equipment industry and the software and services industry were the leading contributors in the sector.

Another significant contributor to the Index’s return for the reporting period in U.S. dollar terms was the industrials sector. Accelerating manufacturing activity supported the sector, driven by increased export demand, particularly for cars. Trading companies and distributors led the sector’s gains, followed by machinery companies.

Consumer discretionary stocks also contributed to the Index’s performance in U.S. dollar terms. Consumer spending, which has been a soft spot in the Japanese economy for several years, trended upward during the reporting period. The consumer durables industry supported the sector the most. Autos and components companies also contributed to the sector’s return amid strong global car sales.

In terms of currency performance, the Japanese yen depreciated against the U.S. dollar by approximately 6% for the reporting period. Extremely low inflation weighed on the Japanese yen, as the BOJ continued to signal low interest rates for the foreseeable future. The Japanese yen also declined sharply following the U.S. presidential election.

The Japanese yen’s negative performance meant hedging activity contributed to the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of the Japanese yen’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of Japanese equities measured in Japanese yen.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Industrials	20.56	%
Consumer Discretionary	20.07
Information Technology	12.70
Financials	12.30
Consumer Staples	7.85
Health Care	7.29
Materials	6.73
Telecommunication Services	5.55
Real Estate	4.11
Utilities	1.94
Energy	0.90
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

Toyota Motor Corp.	4.47	%
Mitsubishi UFJ Financial Group Inc.	2.25
SoftBank Group Corp.	2.04
Sumitomo Mitsui Financial Group Inc.	1.56
Keyence Corp.	1.54
Sony Corp.	1.51
KDDI Corp.	1.49
Honda Motor Co. Ltd.	1.47
Mizuho Financial Group Inc.	1.26
Takeda Pharmaceutical Co. Ltd.	1.22
TOTAL	18.81	%

¹  Table shown is for the iShares MSCI Japan ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI MEXICO ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		3.24%		2.80%		3.20%		3.24%		2.80%		3.20%
Since Inception		4.07%		3.91%		4.49%		9.07%		8.70%		9.99%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.

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 20 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,071.60	$	0.16	$	1,000.00	$	1,025.10	$	0.15		0.03%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

The iShares Currency Hedged MSCI Mexico ETF (the “Fund”) seeks to track the investment results of an index composed of large-, mid- and small-capitalization Mexican equities while mitigating exposure to fluctuations between the value of the Mexican peso and the U.S. dollar, as represented by the MSCI Mexico IMI 25/50 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Mexico Capped ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 3.24%, net of fees, while the total return for the Index was 3.20%.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI MEXICO ETF

Mexico is an export-driven economy, with manufactured goods representing 83% of shipments. The Mexican economy expanded during the reporting period, despite higher interest rates, rising inflation, and uncertainty about trade relations with the U.S. The U.S. presidential election temporarily raised the possibility of recession in Mexico amid concerns U.S. President Trump may end NAFTA, impose a 20% tax on Mexican imports, and pursue other policies that would be damaging to Mexican exports. Slow progress on the policies, however, alleviated concerns. Manufacturing output increased, reflecting a rise in the country’s automobile industry. Declining unemployment and solid remittance inflows helped the Mexican economy to retain its positive momentum.

Within the Index, the telecommunication services sector made the largest contribution to the Index’s return in U.S. dollar terms during the reporting period. Due to major reforms implemented in 2014 to improve competition, revenues within the sector grew 10.9% for 2016, exceeding many analysts’ expectations. Within the sector, wireless telecommunication services companies contributed the most to performance.

Another significant contributor to the Index’s performance for the reporting period was the materials sector. Gains in the sector were supported by strength among metals and mining companies and construction materials suppliers.

The financials and consumer staples sectors also contributed significantly to the Index’s performance for the reporting period. Financials companies benefited from improving global economic conditions. From an industry perspective, banks led the financial sector’s advance. Food, beverage, and tobacco companies and food and staples retailers supported performance in the consumer staples sector.

In terms of currency performance, the Mexican peso appreciated against the U.S. dollar by approximately 6% for the reporting period. The Mexican peso dropped sharply following the U.S. presidential election, recovering later in the reporting period. Conciliatory statements from the new administration reduced concerns about imminent trade disruption, while rising interest rates also helped the currency.

The Mexican peso’s positive performance meant hedging activity detracted from the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of the Mexican peso’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of Mexican equities measured in Mexican pesos.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Consumer Staples	26.12	%
Financials	16.02
Telecommunication Services	15.77
Materials	14.97
Industrials	11.41
Consumer Discretionary	7.66
Real Estate	5.93
Utilities	1.47
Health Care	0.65
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

America Movil SAB de CV Series L	14.84	%
Fomento Economico Mexicano SAB de CV	9.08
Grupo Financiero Banorte SAB de CV Series O	7.89
Cemex SAB de CV CPO	6.17
Wal-Mart de Mexico SAB de CV	5.76
Grupo Televisa SAB	4.50
Grupo Mexico SAB de CV Series B	4.46
Fibra Uno Administracion SA de CV	2.46
Grupo Aeroportuario del Sureste SAB de CV Series B	2.28
Alfa SAB de CV	2.14
TOTAL	59.58	%

¹  Table shown is for the iShares MSCI Mexico Capped ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI SOUTH KOREA ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		24.59%		24.26%		23.76%		24.59%		24.26%		23.76%
Since Inception		13.01%		12.91%		13.13%		30.47%		30.24%		30.68%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.

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 20 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,160.50	$	0.00	$	1,000.00	$	1,025.20	$	0.00		0.00%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

The iShares Currency Hedged MSCI South Korea ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization South Korean equities while mitigating exposure to fluctuations between the value of the South Korean won and the U.S. dollar, as represented by the MSCI Korea 25/50 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI South Korea Capped ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 24.59%, net of fees, while the total return for the Index was 23.76%.

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI SOUTH KOREA ETF

South Korea’s stock market reached an all-time high during the reporting period, driven up largely by foreign demand for technology stocks. By contrast, the country’s economic growth was tepid. Exports surged, hitting the eighth consecutive month of significant increases in August 2017. However, weak domestic demand limited economic growth and led the South Korean government to initiate a fiscal stimulus package aimed at creating public sector jobs and increasing social welfare subsidies.

The information technology sector was the largest sector at about 36% of the Index on average, and it was also the most significant contributor to the Index’s performance in U.S. dollar terms. Information technology stocks generally benefited from growing demand in an improving global economic environment during the reporting period. Within the sector, the technology hardware and equipment industry was the largest contributor to performance. Gains in the semiconductors and semiconductor equipment industry reflected a surge in semiconductor chip exports, up 58% in July 2017 compared with a year earlier.

Another meaningful contributor to the Index’s return for the reporting period was the financials sector. An improvement in global economic conditions, as well as expectations of a more lenient regulatory environment in the U.S., supported strength in the sector. From an industry standpoint, banks led the financial sector’s advance.

The materials and energy sectors were also meaningful contributors to the Index’s performance for the reporting period. Strength within the chemicals and the metals and mining industries supported the materials sector, while the oil, gas, and consumable fuels industry led energy sector gains. On the downside, the consumer staples and utilities sectors detracted modestly from the Index’s return in U.S. dollar terms.

In terms of currency performance, the South Korean won depreciated against the U.S. dollar by approximately 1% for the reporting period, as the U.S. presidential election led to uncertainty about trade relations with South Korea. Strong exports and improving consumer confidence helped the currency rebound in the second half of the reporting period.

The South Korean won’s negative performance meant hedging activity contributed to the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of the South Korean won’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of South Korean equities measured in South Korean won.

ALLOCATION BY SECTOR¹ As of 8/31/17

Sector Percentage of
Total Investments  ²

Information Technology	36.79	%
Financials	14.95
Consumer Discretionary	12.34
Industrials	10.47
Materials	9.35
Consumer Staples	7.66
Health Care	3.10
Energy	2.87
Utilities	1.62
Telecommunication Services	0.85
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹ As of 8/31/17

Security Percentage of
Total Investments  ²

Samsung Electronics Co. Ltd.	22.26	%
SK Hynix Inc.	5.00
POSCO	3.20
Shinhan Financial Group Co. Ltd.	2.79
KB Financial Group Inc.	2.77
Hyundai Motor Co.	2.70
NAVER Corp.	2.64
LG Chem Ltd.	2.21
Hyundai Mobis Co. Ltd.	2.02
Hana Financial Group Inc.	1.86
TOTAL	47.45	%

¹  Table shown is for the iShares MSCI South Korea Capped ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 17

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		10.32%		10.16%		10.15%		10.32%		10.16%		10.15%
Since Inception		9.70%		9.66%		9.53%		18.61%		18.53%		18.22%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 10/29/15. The first day of secondary market trading was 11/2/15.

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 20 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,064.70	$	0.16	$	1,000.00	$	1,025.10	$	0.15		0.03%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

The iShares Edge MSCI Min Vol Global Currency Hedged ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI ACWI Minimum Volatility (USD) 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares Edge MSCI Min Vol Global ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 10.32%, net of fees, while the total return for the Index was 10.15%.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF

Low-volatility stocks in the U.S., the largest country weight in the Index during the reporting period, contributed the most to the Index’s return in U.S. dollar terms. U.S. stocks rose initially due to optimism about potentially stimulative fiscal policies from the new presidential administration, and they sustained their advance as corporate earnings growth improved, particularly among multinational companies with significant operations outside of the U.S.

Low-volatility stocks in Japan and Taiwan also contributed meaningfully to the Index’s return for the reporting period. A weaker Japanese yen, which bolstered export growth, and increased consumer spending domestically helped Japan’s economy expand throughout the reporting period. Taiwan’s technology-heavy stock market rose to its highest level in 27 years.

Other noteworthy contributors to the Index’s return for the reporting period, included Switzerland, Hong Kong, and Denmark. On the downside, low-volatility stocks in the U.K. and Singapore detracted fractionally from the Index’s return.

From a sector perspective, the financials sector contributed the most to the Index’s return for the reporting period in U.S. dollar terms, benefiting from improving global economic conditions, the Fed’s interest rate increases, and expectations of less stringent regulatory policies in the U.S. Insurance companies and banks led the advance in the financials sector.

The information technology sector also contributed meaningfully to the Index’s return for the reporting period, led by software and services companies. Other contributors to the Index’s performance included the healthcare and industrials sectors, while the real estate and consumer staples sectors detracted from the Index’s return.

The Index seeks lower volatility than the broader market with returns in line with the market over the long term. For the reporting period, the Index trailed the broader market, as represented by the MSCI ACWI Index. As the broader market rose sharply, stocks with relatively low volatility characteristics underperformed.

Relative to the broader market, the Index’s lack of exposure to France detracted from performance as the French equity market generated strong returns for the reporting period. In contrast, an overweight allocation in the Index to Japan benefited relative performance for the reporting period. On a sector basis, overweight allocations in the Index to the telecommunication services and consumer staples sectors weighed on relative performance as these sectors underperformed during the reporting period. On the positive side, an underweight allocation in the Index to the energy sector benefited relative performance.

The negative performance of the Index’s foreign currency exposures meant hedging activity contributed to the Index’s return for the reporting period, resulting in an Index return that was relatively close to the return of low-volatility global equities measured in local currencies.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Health Care	16.64	%
Financials	13.73
Consumer Staples	13.12
Information Technology	12.46
Industrials	9.79
Consumer Discretionary	9.06
Utilities	8.25
Telecommunication Services	8.24
Real Estate	4.33
Materials	2.75
Energy	1.63
TOTAL	100.00	%

TEN LARGEST COUNTRIES¹

As of 8/31/17

Country Percentage of
Total Investments  ²

United States	56.64	%
Japan	12.69
Switzerland	5.06
Taiwan	4.04
Canada	3.61
Hong Kong	3.46
China	3.23
United Kingdom	1.56
Denmark	1.33
Singapore	0.90
TOTAL	92.52	%

¹  Table shown is for the iShares Edge MSCI Min Vol Global ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 19

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 March 1, 2017 and held through August 31, 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.

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® ADAPTIVE CURRENCY HEDGED MSCI JAPAN ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.24%
EXCHANGE-TRADED FUNDS — 100.24%
iShares MSCI Japan ETFa		97,270	$	5,321,642
				5,321,642
TOTAL INVESTMENT COMPANIES
(Cost: $4,751,960)				5,321,642
SHORT-TERM INVESTMENTS — 0.05%
MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		2,838		2,838
				2,838
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,838)				2,838

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.29%
(Cost: $4,754,798)c	$	5,324,480
Other Assets, Less Liabilities — (0.29)%		(15,485	)
NET ASSETS — 100.00%	$	5,308,995

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $4,765,910. Net unrealized appreciation was $558,570, of which $584,956 represented gross unrealized appreciation on investments and $26,386 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—	b		—			—	$	—	$	169	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,425		1,413	b		—			2,838		2,838		—		—		16
iShares MSCI Japan ETF		286,366		36,461			(225,557	)d		97,270		5,321,642		3,185		495,936		77,443
											$	5,324,480	$	3,354	$	495,936	$	77,459

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

^d  Includes 215,814 shares from a one-for-four reverse stock split.

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Continued)

iSHARES^® ADAPTIVE CURRENCY HEDGED MSCI JAPAN ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	JPY	293,892,000		USD	2,658,204	MS		09/06/2017	$	15,229
	JPY	3,377,000		USD	30,715	MS		10/04/2017		45
										15,274
	USD	2,662,287		JPY	293,892,000	MS		09/06/2017		(11,146	)
	USD	2,661,705		JPY	293,892,000	MS		10/04/2017		(15,294	)
										(26,440	)
					Net unrealized depreciation				$	(11,166	)

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

JPY — Japanese Yen

USD — United States Dollar

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 August 31, 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:
Investment companies	$	5,321,642	$	—		$	—	$	5,321,642
Money market funds		2,838		—			—		2,838
Total	$	5,324,480	$	—		$	—	$	5,324,480
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	15,274		$	—	$	15,274
Liabilities:
Forward currency contracts		—		(26,440	)		—		(26,440	)
Total	$	—	$	(11,166	)	$	—	$	(11,166	)

^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^® CURRENCY HEDGED MSCI AUSTRALIA ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.19%
EXCHANGE-TRADED FUNDS — 100.19%
iShares MSCI Australia ETFa		50,995	$	1,155,037
				1,155,037
TOTAL INVESTMENT COMPANIES
(Cost: $1,039,898)				1,155,037
SHORT-TERM INVESTMENTS — 0.06%
MONEY MARKET FUNDS — 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		631		631
				631
TOTAL SHORT-TERM INVESTMENTS (Cost: $631)				631

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.25%
(Cost: $1,040,529)c	$	1,155,668
Other Assets, Less Liabilities — (0.25)%		(2,825	)
NET ASSETS — 100.00%	$	1,152,843

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,043,916. Net unrealized appreciation was $111,752, of which $120,369 represented gross unrealized appreciation on investments and $8,617 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)			Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—	b		—			—	$	—	$	345	$	—		$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		5,105		—			(4,474	)b		631		631		—		—			11
iShares MSCI Australia ETF		488,097		32,394			(469,496	)		50,995		1,155,037		1,101,992		(589,439	)		164,813
											$	1,155,668	$	1,102,337	$	(589,439	)	$	164,824

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI AUSTRALIA ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	AUD	4,318,000		USD	3,412,068	MS		09/06/2017	$	20,487
										20,487
	AUD	182,000		USD	145,230	MS		09/06/2017		(551	)
	USD	3,575,263		AUD	4,500,000	MS		09/06/2017		(1,972	)
	USD	1,145,590		AUD	1,445,000	MS		10/04/2017		(2,708	)
										(5,231	)
					Net unrealized appreciation				$	15,256

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

AUD — Australian Dollar

USD — United States Dollar

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 August 31, 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:
Investment companies	$	1,155,037	$	—		$	—	$	1,155,037
Money market funds		631		—			—		631
Total	$	1,155,668	$	—		$	—	$	1,155,668
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	20,487		$	—	$	20,487
Liabilities:
Forward currency contracts		—		(5,231	)		—		(5,231	)
Total	$	—	$	15,256		$	—	$	15,256

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI CANADA ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.54%
EXCHANGE-TRADED FUNDS — 100.54%
iShares MSCI Canada ETFa		89,118	$	2,483,719
				2,483,719
TOTAL INVESTMENT COMPANIES
(Cost: $2,320,340)				2,483,719
SHORT-TERM INVESTMENTS — 0.04%
MONEY MARKET FUNDS — 0.04%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		1,161		1,161
				1,161
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,161)				1,161

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.58%
(Cost: $2,321,501)c	$	2,484,880
Other Assets, Less Liabilities — (0.58)%		(14,445	)
NET ASSETS — 100.00%	$	2,470,435

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,327,853. Net unrealized appreciation was $157,027, of which $178,013 represented gross unrealized appreciation on investments and $20,986 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)			Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—	b		—			—	$	—	$	116	$	—		$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		5,101		—			(3,940	)b		1,161		1,161		—		—			11
iShares MSCI Canada ETF		416,192		21,940			(349,014	)		89,118		2,483,719		1,349,963		(842,899	)		46,522
											$	2,484,880	$	1,350,079	$	(842,899	)	$	46,533

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI CANADA ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	CAD	3,204,000		USD	2,551,238	MS		09/06/2017	$	14,631
	CAD	1,000		USD	798	MS		10/03/2017		3
										14,634
	CAD	6,000		USD	4,805	MS		09/06/2017		—
	USD	2,561,498		CAD	3,210,000	MS		09/06/2017		(9,176	)
	USD	2,464,838		CAD	3,095,000	MS		10/03/2017		(14,460	)
										(23,636	)
					Net unrealized depreciation				$	(9,002	)

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

CAD — Canadian Dollar

USD — United States Dollar

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 August 31, 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:
Investment companies	$	2,483,719	$	—		$	—	$	2,483,719
Money market funds		1,161		—			—		1,161
Total	$	2,484,880	$	—		$	—	$	2,484,880
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	14,634		$	—	$	14,634
Liabilities:
Forward currency contracts		—		(23,636	)		—		(23,636	)
Total	$	—	$	(9,002	)	$	—	$	(9,002	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI JAPAN ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.17%
EXCHANGE-TRADED FUNDS — 100.17%
iShares MSCI Japan ETFa		21,948,803	$	1,200,819,012
				1,200,819,012
TOTAL INVESTMENT COMPANIES
(Cost: $1,136,322,419)				1,200,819,012
TOTAL INVESTMENTS IN SECURITIES — 100.17%
(Cost: $1,136,322,419)b				1,200,819,012
Other Assets, Less Liabilities — (0.17)%				(2,092,683	)
NET ASSETS — 100.00%			$	1,198,726,329

^a  Affiliated issuer. See Schedule 1.

^b  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,139,737,956. Net unrealized appreciation was $61,081,056, of which $67,400,180 represented gross unrealized appreciation on investments and $6,319,124 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		11,486,790		—		(11,486,790	)b		—	$	—	$	5,426	$	—	$	—c
BlackRock Cash Funds: Treasury, SL Agency Shares		78,476		—		(78,476	)b		—		—		21		—		3,589
iShares MSCI Japan ETF		38,311,015		29,570,621		(45,932,833	)d		21,948,803		1,200,819,012		18,732,315		83,830,965		16,550,616
										$	1,200,819,012	$	18,737,762	$	83,830,965	$	16,554,205

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

^d  Includes 26,020,572 shares from a one-for-four reverse stock split.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI JAPAN ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	JPY	821,161,000		USD	7,436,104	BNP		09/06/2017	$	33,712
	JPY	442,834,000		USD	4,013,788	JPM		09/06/2017		14,519
	JPY	13,063,209,600		USD	118,383,543	MS		09/06/2017		447,926
	JPY	404,815,000		USD	3,669,902	RBS		09/06/2017		12,559
	JPY	120,854,854,400		USD	1,097,024,984	UBS		09/06/2017		2,349,544
	USD	167,137		JPY	18,318,000	CITI		09/06/2017		505
	USD	200,145		JPY	21,746,000	MS		09/06/2017		2,329
	USD	133,694		JPY	14,567,000	RBS		09/06/2017		1,183
	JPY	4,473,486,000		USD	40,704,685	NAB		10/03/2017		41,310
										2,903,587
	JPY	984,403,000		USD	9,033,516	AUNZ		09/06/2017		(78,744	)
	JPY	1,307,259,000		USD	11,957,447	BNP		09/06/2017		(65,767	)
	JPY	1,474,981,000		USD	13,518,978	SSBSW		09/06/2017		(101,589	)
	USD	20,980,208		JPY	2,314,673,000	BNP		09/06/2017		(75,567	)
	USD	122,079,862		JPY	13,562,112,600	MS		09/06/2017		(1,289,954	)
	USD	1,110,889,997		JPY	123,422,100,400	NAB		09/06/2017		(11,837,875	)
	USD	118,537,157		JPY	13,063,209,600	MS		10/03/2017		(446,892	)
	USD	15,186,321		JPY	1,669,690,000	SSBSW		10/03/2017		(21,769	)
	USD	1,098,476,777		JPY	120,854,854,400	UBS		10/03/2017		(2,309,352	)
										(16,227,509	)
					Net unrealized depreciation				$	(13,323,922	)

Counterparties:

AUNZ — Australia and New Zealand Bank Group

BNP — BNP Paribas SA

CITI — Citibank N.A. London

JPM — JPMorgan Chase Bank N.A.

MS — Morgan Stanley and Co. International PLC

NAB — National Australia Bank Limited

RBS — Royal Bank of Scotland

SSBSW — State Street Bank and Trust

UBS — UBS AG London

Currency abbreviations:

JPY — Japanese Yen

USD — United States Dollar

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI JAPAN ETF

August 31, 2017

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 August 31, 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:
Investment companies	$	1,200,819,012	$	—		$	—	$	1,200,819,012
Total	$	1,200,819,012	$	—		$	—	$	1,200,819,012
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	2,903,587		$	—	$	2,903,587
Liabilities:
Forward currency contracts		—		(16,227,509	)		—		(16,227,509	)
Total	$	—	$	(13,323,922	)	$	—	$	(13,323,922	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI MEXICO ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.00%
EXCHANGE-TRADED FUNDS — 100.00%
iShares MSCI Mexico Capped ETFa		57,159	$	3,227,769
				3,227,769
TOTAL INVESTMENT COMPANIES
(Cost: $2,750,845)				3,227,769
SHORT-TERM INVESTMENTS — 0.04%
MONEY MARKET FUNDS — 0.04%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		1,306		1,306
				1,306
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,306)				1,306

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.04%
(Cost: $2,752,151)c	$	3,229,075
Other Assets, Less Liabilities — (0.04)%		(1,131	)
NET ASSETS — 100.00%	$	3,227,944

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,827,422. Net unrealized appreciation was $401,653, of which $478,878 represented gross unrealized appreciation on investments and $77,225 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—	b		—			—	$	—	$	(77	)	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		640		666	b		—			1,306		1,306		—			—		7
iShares MSCI Mexico Capped ETF		23,115		96,663			(62,619	)		57,159		3,227,769		(147,490	)		620,913		44,234
											$	3,229,075	$	(147,567	)	$	620,913	$	44,241

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI MEXICO ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	MXN	57,768,000		USD	3,228,988	MS		09/06/2017	$	1,501
	USD	3,152,328		MXN	56,321,000	MS		09/06/2017		2,757
	USD	23,235		MXN	416,000	MS		10/03/2017		73
										4,331
	USD	80,603		MXN	1,447,000	MS		09/06/2017		(316	)
	MXN	139,000		USD	7,780	MS		10/03/2017		(41	)
	USD	3,214,806		MXN	57,768,000	MS		10/03/2017		(1,597	)
										(1,954	)
					Net unrealized appreciation				$	2,377

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

MXN — Mexican Peso

USD — United States Dollar

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 August 31, 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:
Investment companies	$	3,227,769	$	—		$	—	$	3,227,769
Money market funds		1,306		—			—		1,306
Total	$	3,229,075	$	—		$	—	$	3,229,075
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	4,331		$	—	$	4,331
Liabilities:
Forward currency contracts		—		(1,954	)		—		(1,954	)
Total	$	—	$	2,377		$	—	$	2,377

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI SOUTH KOREA ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.06%
EXCHANGE-TRADED FUNDS — 100.06%
iShares MSCI South Korea Capped ETFa		21,414	$	1,466,217
				1,466,217
TOTAL INVESTMENT COMPANIES
(Cost: $1,236,118)				1,466,217
SHORT-TERM INVESTMENTS — 0.06%
MONEY MARKET FUNDS — 0.06%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		812		812
				812
TOTAL SHORT-TERM INVESTMENTS
(Cost: $812)				812

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.12%
(Cost: $1,236,930)c	$	1,467,029
Other Assets, Less Liabilities — (0.12)%		(1,763	)
NET ASSETS — 100.00%	$	1,465,266

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,236,978. Net unrealized appreciation was $230,051, of which $234,094 represented gross unrealized appreciation on investments and $4,043 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)			Income
BlackRock Cash Funds: Treasury, SL Agency Shares		6,146		—		(5,334	)b		812	$	812	$	—	$	—		$	16
iShares MSCI South Korea Capped ETF		219,077		73,140		(270,803	)		21,414		1,466,217		819,878		(636,563	)		100,286
										$	1,467,029	$	819,878	$	(636,563	)	$	100,302

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI SOUTH KOREA ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	USD	1,506,210		KRW	1,692,486,000	MS		09/06/2017	$	4,619
	KRW	21,706,000		USD	19,307	MS		10/10/2017		2
										4,621
	KRW	1,692,486,000		USD	1,503,884	MS		09/06/2017		(2,293	)
	USD	1,487,261		KRW	1,673,835,000	MS		10/10/2017		(1,702	)
										(3,995	)
					Net unrealized appreciation				$	626

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

KRW — South Korean Won

USD — United States Dollar

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 August 31, 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:
Investment companies	$	1,466,217	$	—		$	—	$	1,466,217
Money market funds		812		—			—		812
Total	$	1,467,029	$	—		$	—	$	1,467,029
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	4,621		$	—	$	4,621
Liabilities:
Forward currency contracts		—		(3,995	)		—		(3,995	)
Total	$	—	$	626		$	—	$	626

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 33

Schedule of Investments

iSHARES^® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.05%
EXCHANGE-TRADED FUNDS — 100.05%
iShares Edge MSCI Min Vol Global ETFa		34,828	$	2,830,123
				2,830,123
TOTAL INVESTMENT COMPANIES
(Cost: $2,561,412)				2,830,123
SHORT-TERM INVESTMENTS — 0.05%
MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		1,405		1,405
				1,405
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,405)				1,405

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.10%
(Cost: $2,562,817)c	$	2,831,528
Other Assets, Less Liabilities — (0.10)%		(2,732	)
NET ASSETS — 100.00%	$	2,828,796

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,565,043. Net unrealized appreciation was $265,755, of which $272,552 represented gross unrealized appreciation on investments and $6,797 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		801		604	b		—		$	1,405	$	1,405	$	—		$	—	$	8
iShares Edge MSCI Min Vol Global ETF		17,315		19,250			(1,737	)		34,828		2,830,123		(2,486	)		181,901		67,839
											$	2,831,528	$	(2,486	)	$	181,901	$	67,847

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	CAD	122,000		USD	97,130	MS		09/06/2017	$	572
	CHF	136,000		USD	141,655	MS		09/06/2017		176
	CLP	8,881,000		USD	14,153	MS		09/06/2017		51
	DKK	3,000		USD	475	MS		09/06/2017		5
	EUR	43,000		USD	51,166	MS		09/06/2017		26
	GBP	34,000		USD	43,826	MS		09/06/2017		141
	ILS	55,000		USD	15,326	MS		09/06/2017		20
	INR	781,408		USD	12,208	MS		09/06/2017		14
	JPY	39,541,000		USD	358,335	MS		09/06/2017		1,355
	SGD	76,000		USD	55,980	MS		09/06/2017		69
	TWD	9,000		USD	298	MS		09/06/2017		1
	USD	45,873		GBP	35,000	MS		09/06/2017		614
	USD	167,636		HKD	1,308,000	MS		09/06/2017		490
	USD	15,455		ILS	55,000	MS		09/06/2017		109
	USD	56,882		KRW	63,917,000	MS		09/06/2017		175
	CHF	1,000		USD	1,043	MS		10/05/2017		2
	CLP	51,000		USD	81	MS		10/05/2017		—
	EUR	1,000		USD	1,191	MS		10/05/2017		2
	JPY	160,000		USD	1,456	MS		10/05/2017		2
	SGD	2,000		USD	1,473	MS		10/05/2017		2
	USD	36,685		DKK	228,704	MS		10/05/2017		15
	USD	898		TWD	27,000	MS		10/05/2017		—
	KRW	513,000		USD	456	MS		10/10/2017		—
										3,841
	DKK	228,704		USD	36,623	MS		09/06/2017		(12	)
	GBP	1,000		USD	1,320	MS		09/06/2017		(27	)
	HKD	1,308,000		USD	167,153	MS		09/06/2017		(8	)
	KRW	63,917,000		USD	56,790	MS		09/06/2017		(82	)
	TWD	4,793,000		USD	158,972	MS		09/06/2017		(90	)
	USD	97,353		CAD	122,000	MS		09/06/2017		(349	)
	USD	140,147		CHF	136,000	MS		09/06/2017		(1,684	)
	USD	13,668		CLP	8,881,000	MS		09/06/2017		(536	)
	USD	36,578		DKK	231,704	MS		09/06/2017		(513	)
	USD	50,473		EUR	43,000	MS		09/06/2017		(719	)
	USD	12,129		INR	781,408	MS		09/06/2017		(93	)
	USD	355,875		JPY	39,541,000	MS		09/06/2017		(3,816	)
	USD	55,924		SGD	76,000	MS		09/06/2017		(126	)
	USD	158,922		TWD	4,802,000	MS		09/06/2017		(258	)
	TWD	51,000		USD	1,697	MS		10/05/2017		(1	)
	USD	101,152		CAD	127,000	MS		10/05/2017		(586	)
	USD	142,971		CHF	137,000	MS		10/05/2017		(181	)
	USD	14,537		CLP	9,131,000	MS		10/05/2017		(55	)
	USD	640		DKK	4,000	MS		10/05/2017		(1	)
	USD	51,258		EUR	43,000	MS		10/05/2017		(14	)
	USD	43,872		GBP	34,000	MS		10/05/2017		(140	)
	USD	12,267		INR	787,408	MS		10/05/2017		(11	)
	USD	357,329		JPY	39,375,000	MS		10/05/2017		(1,347	)
	USD	28,004		SGD	38,000	MS		10/05/2017		(25	)
	USD	159,120		TWD	4,793,000	MS		10/05/2017		(275	)
	USD	171,657		HKD	1,342,000	MS		10/10/2017		(3	)
	USD	15,624		ILS	56,000	MS		10/10/2017		(21	)
	USD	56,792		KRW	63,917,000	MS		10/10/2017		(65	)
										(11,038	)
					Net unrealized depreciation				$	(7,197	)

SCHEDULES OF INVESTMENTS 35

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL CURRENCY HEDGED ETF

August 31, 2017

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

CAD — Canadian Dollar

CHF — Swiss Franc

CLP — Chilean Peso

DKK — Danish Krone

EUR — Euro

GBP — British Pound

HKD — Hong Kong Dollar

ILS — Israeli Shekel

INR — Indian Rupee

JPY — Japanese Yen

KRW — South Korean Won

SGD — Singapore Dollar

TWD — Taiwan New Dollar

USD — United States Dollar

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 August 31, 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:
Investment companies	$	2,830,123	$	—		$	—	$	2,830,123
Money market funds		1,405		—			—		1,405
Total	$	2,831,528	$	—		$	—	$	2,831,528
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	3,841		$	—	$	3,841
Liabilities:
Forward currency contracts		—		(11,038	)		—		(11,038	)
Total	$	—	$	(7,197	)	$	—	$	(7,197	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

August 31, 2017

	iShares Adaptive Currency Hedged MSCI Japan ETF			iShares Currency Hedged MSCI Australia ETF			iShares Currency Hedged MSCI Canada ETF
ASSETS
Investments in securities, at cost:
Affiliated (Note 2)	$	4,754,798		$	1,040,529		$	2,321,501
Total cost of investments in securities	$	4,754,798		$	1,040,529		$	2,321,501
Investments in securities, at fair value (Note 1):
Affiliated (Note 2)	$	5,324,480		$	1,155,668		$	2,484,880
Receivables:
Dividends and interest		4			1			—
Unrealized appreciation on forward currency contracts (Note 1)		15,274			20,487			14,634
Total Assets		5,339,758			1,176,156			2,499,514
LIABILITIES
Payables:
Investment securities purchased		4,323			18,030			5,380
Unrealized depreciation on forward currency contracts (Note 1)		26,440			5,231			23,636
Investment advisory fees (Note 2)		—			52			63
Total Liabilities		30,763			23,313			29,079
NET ASSETS	$	5,308,995		$	1,152,843		$	2,470,435
Net assets consist of:
Paid-in capital	$	4,919,674		$	1,717,994		$	2,589,300
Undistributed net investment income		5			—			—
Accumulated net realized loss		(169,200	)		(695,546	)		(273,242	)
Net unrealized appreciation		558,516			130,395			154,377
NET ASSETS	$	5,308,995		$	1,152,843		$	2,470,435
Shares outstandinga		200,000			50,000			100,000
Net asset value per share	$	26.54		$	23.06		$	24.70

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

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares Currency Hedged MSCI Japan ETF			iShares Currency Hedged MSCI Mexico ETF			iShares Currency Hedged MSCI South Korea ETF
ASSETS
Investments in securities, at cost:
Affiliated (Note 2)	$	1,136,322,419		$	2,752,151		$	1,236,930
Total cost of investments in securities	$	1,136,322,419		$	2,752,151		$	1,236,930
Investments in securities, at fair value (Note 1):
Affiliated (Note 2)	$	1,200,819,012		$	3,229,075		$	1,467,029
Cash pledged to broker for forward currency contracts		980,000			—			—
Receivables:
Investment securities sold		10,528,944			—			—
Dividends and interest		13			188			—
Unrealized appreciation on forward currency contracts (Note 1)		2,903,587			4,331			4,621
Total Assets		1,215,231,556			3,233,594			1,471,650
LIABILITIES
Payables:
Investment securities purchased		—			3,614			2,389
Due to custodian		277,718			—			—
Unrealized depreciation on forward currency contracts (Note 1)		16,227,509			1,954			3,995
Investment advisory fees (Note 2)		—			82			—
Total Liabilities		16,505,227			5,650			6,384
NET ASSETS	$	1,198,726,329		$	3,227,944		$	1,465,266
Net assets consist of:
Paid-in capital	$	1,235,193,370		$	3,211,758		$	1,235,215
Undistributed net investment income		—			112			—
Accumulated net realized loss		(87,639,712	)		(463,227	)		(674	)
Net unrealized appreciation		51,172,671			479,301			230,725
NET ASSETS	$	1,198,726,329		$	3,227,944		$	1,465,266
Shares outstandinga		40,550,000			150,000			50,000
Net asset value per share	$	29.56		$	21.52		$	29.31

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

See notes to financial statements.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares Edge MSCI Min Vol Global Currency Hedged ETF
ASSETS
Investments in securities, at cost:
Affiliated (Note 2)	$	2,562,817
Total cost of investments in securities	$	2,562,817
Investments in securities, at fair value (Note 1):
Affiliated (Note 2)	$	2,831,528
Receivables:
Investment securities sold		4,534
Dividends and interest		3
Unrealized appreciation on forward currency contracts (Note 1)		3,841
Total Assets		2,839,906
LIABILITIES
Payables:
Unrealized depreciation on forward currency contracts (Note 1)		11,038
Investment advisory fees (Note 2)		72
Total Liabilities		11,110
NET ASSETS	$	2,828,796
Net assets consist of:
Paid-in capital	$	2,602,346
Accumulated net realized loss		(35,064	)
Net unrealized appreciation		261,514
NET ASSETS	$	2,828,796
Shares outstandinga		100,000
Net asset value per share	$	28.29

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

See notes to financial statements.

FINANCIAL STATEMENTS 39

Statements of Operations

iSHARES^® TRUST

Year ended August 31, 2017

	iShares Adaptive Currency Hedged MSCI Japan ETF			iShares Currency Hedged MSCI Australia ETF			iShares Currency Hedged MSCI Canada ETF
NET INVESTMENT INCOME
Dividends — affiliated (Note 2)	$	77,458		$	164,824		$	46,533
Securities lending income — affiliated — net (Note 2)		71			2,987			249
Total investment income		77,529			167,811			46,782
EXPENSES
Investment advisory fees (Note 2)		27,986			31,168			28,627
Proxy fees		111			79			55
Total expenses		28,097			31,247			28,682
Less investment advisory fees waived (Note 2)		(28,097	)		(29,739	)		(27,297	)
Net expenses		—			1,508			1,385
Net investment income		77,529			166,303			45,397
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated (Note 2)		3,354			11,494			2,035
In-kind redemptions — affiliated (Note 2)		—			1,090,843			1,348,044
Forward currency contracts		73,024			(162,810	)		7,205
Net realized gain		76,378			939,527			1,357,284
Net change in unrealized appreciation/depreciation on:
Investments — affiliated (Note 2)		495,936			(589,439	)		(842,899	)
Forward currency contracts		(36,381	)		1,682			(7,103	)
Net change in unrealized appreciation/depreciation		459,555			(587,757	)		(850,002	)
Net realized and unrealized gain		535,933			351,770			507,282
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	613,462		$	518,073		$	552,679

See notes to financial statements.

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares Currency Hedged MSCI Japan ETF			iShares Currency Hedged MSCI Mexico ETF			iShares Currency Hedged MSCI South Korea ETF
NET INVESTMENT INCOME
Dividends — affiliated (Note 2)	$	16,554,205		$	44,241		$	100,302
Securities lending income — affiliated — net (Note 2)		6,553			2,658			256
Total investment income		16,560,758			46,899			100,558
EXPENSES
Investment advisory fees (Note 2)		4,765,104			14,122			38,452
Proxy fees		24,669			69			29
Total expenses		4,789,773			14,191			38,481
Less investment advisory fees waived (Note 2)		(4,762,236	)		(13,508	)		(38,481	)
Net expenses		27,537			683			—
Net investment income		16,533,221			46,216			100,558
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated (Note 2)		(2,389,070	)		(125,355	)		(13,880	)
In-kind redemptions — affiliated (Note 2)		21,126,811			(22,212	)		833,758
Forward currency contracts		19,026,213			(376,981	)		313,026
Realized gain distributions from affiliated funds		21			—			—
Net realized gain (loss)		37,763,975			(524,548	)		1,132,904
Net change in unrealized appreciation/depreciation on:
Investments — affiliated (Note 2)		83,830,965			620,913			(636,563	)
Forward currency contracts		(4,018,829	)		6,748			138,407
Net change in unrealized appreciation/depreciation		79,812,136			627,661			(498,156	)
Net realized and unrealized gain		117,576,111			103,113			634,748
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	134,109,332		$	149,329		$	735,306

See notes to financial statements.

FINANCIAL STATEMENTS 41

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares Edge MSCI Min Vol Global Currency Hedged ETF
NET INVESTMENT INCOME
Dividends — affiliated (Note 2)	$	67,847
Securities lending income — affiliated — net (Note 2)		172
Total investment income		68,019
EXPENSES
Investment advisory fees (Note 2)		9,823
Proxy fees		59
Total expenses		9,882
Less investment advisory fees waived (Note 2)		(9,107	)
Net expenses		775
Net investment income		67,244
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated (Note 2)		(2,486	)
Forward currency contracts		9,653
Net realized gain		7,167
Net change in unrealized appreciation/depreciation on:
Investments — affiliated (Note 2)		181,901
Forward currency contracts		4,259
Net change in unrealized appreciation/depreciation		186,160
Net realized and unrealized gain		193,327
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	260,571

See notes to financial statements.

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Adaptive Currency Hedged MSCI Japan ETF						iShares Currency Hedged MSCI Australia ETF
	Year ended August 31, 2017			Period from January 5, 2016a to August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	77,529		$	27,523		$	166,303		$	200,593
Net realized gain (loss)		76,378			(245,578	)		939,527			(346,226	)
Net change in unrealized appreciation/depreciation		459,555			98,961			(587,757	)		940,596
Net increase (decrease) in net assets resulting from operations		613,462			(119,094	)		518,073			794,963
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(77,558	)		(27,489	)		(166,741	)		(200,286	)
From net realized gain		—			—			—			(181,301	)
Total distributions to shareholders		(77,558	)		(27,489	)		(166,741	)		(381,587	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,253,408			5,994,465			—			9,340,734
Cost of shares redeemed		—			(2,328,199	)		(9,108,516	)		(2,196,546	)
Net increase (decrease) in net assets from capital share transactions		1,253,408			3,666,266			(9,108,516	)		7,144,188
INCREASE (DECREASE) IN NET ASSETS		1,789,312			3,519,683			(8,757,184	)		7,557,564
NET ASSETS
Beginning of period		3,519,683			—			9,910,027			2,352,463
End of period	$	5,308,995		$	3,519,683		$	1,152,843		$	9,910,027
Undistributed net investment income included in net assets at end of period	$	5		$	34		$	—		$	307
SHARES ISSUED AND REDEEMED
Shares sold		50,000			250,000			—			450,000
Shares redeemed		—			(100,000	)		(400,000	)		(100,000	)
Net increase (decrease) in shares outstanding		50,000			150,000			(400,000	)		350,000

^a  Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 43

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Currency Hedged MSCI Canada ETF						iShares Currency Hedged MSCI Japan ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	45,397		$	116,603		$	16,533,221		$	10,093,947
Net realized gain (loss)		1,357,284			(373,996	)		37,763,975			(158,007,611	)
Net change in unrealized appreciation/depreciation		(850,002	)		1,211,506			79,812,136			34,070,446
Net increase (decrease) in net assets resulting from operations		552,679			954,113			134,109,332			(113,843,218	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(45,516	)		(116,603	)		(16,546,504	)		(10,081,622	)
From net realized gain		—			(142,133	)		—			(12,890,747	)
Return of capital		—			(507	)		—			—
Total distributions to shareholders		(45,516	)		(259,243	)		(16,546,504	)		(22,972,369	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			7,551,188			1,247,124,607			1,294,488,952
Cost of shares redeemed		(8,629,468	)		—			(641,976,488	)		(1,416,739,199	)
Net increase (decrease) in net assets from capital share transactions		(8,629,468	)		7,551,188			605,148,119			(122,250,247	)
INCREASE (DECREASE) IN NET ASSETS		(8,122,305	)		8,246,058			722,710,947			(259,065,834	)
NET ASSETS
Beginning of year		10,592,740			2,346,682			476,015,382			735,081,216
End of year	$	2,470,435		$	10,592,740		$	1,198,726,329		$	476,015,382
Undistributed net investment income included in net assets at end of year	$	—		$	—		$	—		$	12,325
SHARES ISSUED AND REDEEMED
Shares sold		—			350,000			44,500,000			51,000,000
Shares redeemed		(350,000	)		—			(23,200,000	)		(56,700,000	)
Net increase (decrease) in shares outstanding		(350,000	)		350,000			21,300,000			(5,700,000	)

See notes to financial statements.

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Currency Hedged MSCI Mexico ETF						iShares Currency Hedged MSCI South Korea ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	46,216		$	44,457		$	100,558		$	913,065
Net realized gain (loss)		(524,548	)		83,887			1,132,904			(2,366,760	)
Net change in unrealized appreciation/depreciation		627,661			262			(498,156	)		1,068,832
Net increase (decrease) in net assets resulting from operations		149,329			128,606			735,306			(384,863	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(46,128	)		(44,433	)		(100,689	)		(912,932	)
From net realized gain		(110,888	)		(141,495	)		(296,450	)		(48,148	)
Total distributions to shareholders		(157,016	)		(185,928	)		(397,139	)		(961,080	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		4,095,059			—			2,529,942			45,164,809
Cost of shares redeemed		(2,036,612	)		(1,168,814	)		(13,756,301	)		(33,735,309	)
Net increase (decrease) in net assets from capital share transactions		2,058,447			(1,168,814	)		(11,226,359	)		11,429,500
INCREASE (DECREASE) IN NET ASSETS		2,050,760			(1,226,136	)		(10,888,192	)		10,083,557
NET ASSETS
Beginning of year		1,177,184			2,403,320			12,353,458			2,269,901
End of year	$	3,227,944		$	1,177,184		$	1,465,266		$	12,353,458
Undistributed net investment income included in net assets at end of year	$	112		$	24		$	—		$	133
SHARES ISSUED AND REDEEMED
Shares sold		200,000			—			100,000			1,900,000
Shares redeemed		(100,000	)		(50,000	)		(550,000	)		(1,500,000	)
Net increase (decrease) in shares outstanding		100,000			(50,000	)		(450,000	)		400,000

See notes to financial statements.

FINANCIAL STATEMENTS 45

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Edge MSCI Min Vol Global Currency Hedged ETF
	Year ended August 31, 2017			Period from October 29, 2015a to August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	67,244		$	56,836
Net realized gain		7,167			61,803
Net change in unrealized appreciation/depreciation		186,160			75,354
Net increase in net assets resulting from operations		260,571			193,993
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(67,377	)		(56,955	)
Total distributions to shareholders		(67,377	)		(56,955	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,320,799			2,501,061
Cost of shares redeemed		—			(1,323,296	)
Net increase in net assets from capital share transactions		1,320,799			1,177,765
INCREASE IN NET ASSETS		1,513,993			1,314,803
NET ASSETS
Beginning of period		1,314,803			—
End of period	$	2,828,796		$	1,314,803
SHARES ISSUED AND REDEEMED
Shares sold		50,000			100,000
Shares redeemed		—			(50,000	)
Net increase in shares outstanding		50,000			50,000

^a  Commencement of operations.

See notes to financial statements.

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Adaptive Currency Hedged MSCI Japan  ETF

	Year ended Aug. 31, 2017			Period from Jan. 5, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	23.46		$	24.92
Income from investment operations:
Net investment incomeb		0.44			0.23
Net realized and unrealized gain (loss)c		3.10			(1.51	)
Total from investment operations		3.54			(1.28	)
Less distributions from:
Net investment income		(0.46	)		(0.18	)
Total distributions		(0.46	)		(0.18	)
Net asset value, end of period	$	26.54		$	23.46
Total return		15.24	%		(5.06	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,309		$	3,520
Ratio of expenses to average net assetse,f		0.00	%		0.00	%
Ratio of expenses to average net assets prior to waived feese,f		0.62	%		0.62	%
Ratio of net investment income to average net assetse		1.72	%		1.57	%
Portfolio turnover rateg,h		8	%		2	%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  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

h Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 131 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 47

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Currency Hedged MSCI Australia  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Jun. 29, 2015a to Aug. 31, 2015
Net asset value, beginning of period	$	22.02		$	23.52		$	24.48
Income from investment operations:
Net investment income (loss)b		0.75			0.72			(0.00	)c
Net realized and unrealized gain (loss)d		1.40			0.49			(0.96	)
Total from investment operations		2.15			1.21			(0.96	)
Less distributions from:
Net investment income		(1.11	)		(0.90	)		—
Net realized gain		—			(1.81	)		—
Total distributions		(1.11	)		(2.71	)		—
Net asset value, end of period	$	23.06		$	22.02		$	23.52
Total return		9.86	%		5.70	%		(3.92	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,153		$	9,910		$	2,352
Ratio of expenses to average net assetsf,g		0.03	%		0.03	%		0.04	%
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsf		3.31	%		3.33	%		(0.04	)%
Portfolio turnover rateh,i		13	%		15	%		0	%e,j

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 129 for the portfolio turnover rates of the underlying fund.

^j  Rounds to less than 1%.

See notes to financial statements.

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Currency Hedged MSCI Canada  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Jun. 29, 2015a to Aug. 31, 2015
Net asset value, beginning of period	$	23.54		$	23.47		$	24.36
Income from investment operations:
Net investment income (loss)b		0.24			0.41			(0.00	)c
Net realized and unrealized gain (loss)d		1.38			1.07			(0.89	)
Total from investment operations		1.62			1.48			(0.89	)
Less distributions from:
Net investment income		(0.46	)		(0.46	)		—
Net realized gain		—			(0.95	)		—
Return of capital		—			(0.00	)c		—
Total distributions		(0.46	)		(1.41	)		—
Net asset value, end of period	$	24.70		$	23.54		$	23.47
Total return		6.86	%		6.92	%		(3.69	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,470		$	10,593		$	2,347
Ratio of expenses to average net assetsf,g		0.03	%		0.03	%		0.05	%
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsf		0.98	%		1.84	%		(0.05	)%
Portfolio turnover rateh,i		8	%		13	%		0	%e

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 130 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 49

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Currency Hedged MSCI Japan ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Period from Jan. 31, 2014a to Aug. 31, 2014
Net asset value, beginning of period	$	24.73		$	29.46		$	25.02		$	23.53
Income from investment operations:
Net investment incomeb		0.52			0.41			0.43			0.13
Net realized and unrealized gain (loss)c		4.78			(4.11	)		4.58			1.53
Total from investment operations		5.30			(3.70	)		5.01			1.66
Less distributions from:
Net investment income		(0.47	)		(0.44	)		(0.32	)		(0.17	)
Net realized gain		—			(0.59	)		(0.25	)		(0.00	)d
Total distributions		(0.47	)		(1.03	)		(0.57	)		(0.17	)
Net asset value, end of period	$	29.56		$	24.73		$	29.46		$	25.02
Total return		21.50	%		(12.91	)%		20.08	%		7.05	%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,198,726		$	476,015		$	735,081		$	32,531
Ratio of expenses to average net assetsf,g		0.00	%h		0.00	%h		0.01	%		0.01	%
Ratio of expenses to average net assets prior to waived feesf,g		0.53	%		0.53	%		0.53	%		0.53	%
Ratio of net investment income to average net assetsf		1.84	%		1.57	%		1.39	%		0.94	%
Portfolio turnover ratei,j		11	%		11	%		12	%		1	%e

^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  Rounds to less than $0.01.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^h  Rounds to less than 0.01%.

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

^j  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 131 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Currency Hedged MSCI Mexico  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Jun. 29, 2015a to Aug. 31, 2015
Net asset value, beginning of period	$	23.54		$	24.03		$	24.43
Income from investment operations:
Net investment income (loss)b		0.43			0.49			(0.00	)c
Net realized and unrealized gain (loss)d		0.09			1.15			(0.40	)
Total from investment operations		0.52			1.64			(0.40	)
Less distributions from:
Net investment income		(0.33	)		(0.71	)		—
Net realized gain		(2.21	)		(1.42	)		—
Total distributions		(2.54	)		(2.13	)		—
Net asset value, end of period	$	21.52		$	23.54		$	24.03
Total return		3.24	%		7.41	%		(1.64	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	3,228		$	1,177		$	2,403
Ratio of expenses to average net assetsf,g		0.03	%		0.03	%		0.04	%
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsf		2.03	%		2.11	%		(0.04	)%
Portfolio turnover rateh,i		12	%		22	%		0	%e,j

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 132 for the portfolio turnover rates of the underlying fund.

^j  Rounds to less than 1%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 51

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Currency Hedged MSCI South Korea  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Jun. 29, 2015a to Aug. 31, 2015
Net asset value, beginning of period	$	24.71		$	22.70		$	24.64
Income from investment operations:
Net investment income (loss)b		0.51			2.12			(0.00	)c
Net realized and unrealized gain (loss)d		5.29			0.92			(1.94	)
Total from investment operations		5.80			3.04			(1.94	)
Less distributions from:
Net investment income		(0.35	)		(0.55	)		—
Net realized gain		(0.85	)		(0.48	)		—
Total distributions		(1.20	)		(1.03	)		—
Net asset value, end of period	$	29.31		$	24.71		$	22.70
Total return		24.59	%		13.67	%		(7.87	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,465		$	12,353		$	2,270
Ratio of expenses to average net assetsf,g		0.00	%		0.00	%		0.02	%
Ratio of expenses to average net assets prior to waived feesf,g		0.77	%		0.77	%		0.77	%
Ratio of net investment income (loss) to average net assetsf		2.01	%		9.13	%		(0.02	)%
Portfolio turnover rateh,i		25	%		21	%		2	%e

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 133 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Edge MSCI Min Vol Global Currency Hedged ETF

	Year ended Aug. 31, 2017			Period from Oct. 29, 2015a to Aug. 31, 2016
Net asset value, beginning of period	$	26.30		$	25.01
Income from investment operations:
Net investment incomeb		0.70			0.57
Net realized and unrealized gainc		1.96			1.29
Total from investment operations		2.66			1.86
Less distributions from:
Net investment income		(0.67	)		(0.57	)
Total distributions		(0.67	)		(0.57	)
Net asset value, end of period	$	28.29		$	26.30
Total return		10.32	%		7.51	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,829		$	1,315
Ratio of expenses to average net assetse,f		0.03	%		0.03	%
Ratio of expenses to average net assets prior to waived feese,f		0.38	%		0.38	%
Ratio of net investment income to average net assetse		2.60	%		2.70	%
Portfolio turnover rateg,h		5	%		4	%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  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

^h  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 128 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 53

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
Adaptive Currency Hedged MSCI Japan		Non-diversified
Currency Hedged MSCI Australia		Non-diversified
Currency Hedged MSCI Canada		Non-diversified
Currency Hedged MSCI Japan		Diversified	a
Currency Hedged MSCI Mexico		Non-diversified
Currency Hedged MSCI South Korea		Non-diversified
Edge MSCI Min Vol Global Currency Hedged		Non-diversified

^a  The Fund’s classification changed from non-diversified to diversified during the reporting period.

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. Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an exchange-traded fund of iShares, Inc. (an “underlying fund”), an affiliate of the Funds. The financial statements and schedules of investments for the underlying funds can be found elsewhere in this report and should be read in conjunction with the Funds’ financial statements.

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

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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”).

• Exchange-traded funds and closed-end funds 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 fund is primarily traded. Funds 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”).

• Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated forward exchange rates are used for contracts with interim settlement dates for which quotations are not available.

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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 to valuation techniques are categorized into a fair value 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

NOTES TO FINANCIAL STATEMENTS 55

Notes to Financial Statements (Continued)

iSHARES^® TRUST

• 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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, the Funds have elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax 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

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 August 31, 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 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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original 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

NOTES TO FINANCIAL STATEMENTS 57

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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.

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 Adaptive Currency Hedged MSCI Japan ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Japan ETF (“EWJ”), after taking into account any fee waivers by EWJ.

For its investment advisory services to the iShares Currency Hedged MSCI Australia ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Australia ETF (“EWA”), after taking into account any fee waivers by EWA, plus 0.03%.

For its investment advisory services to the iShares Currency Hedged MSCI Canada ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Canada ETF (“EWC”), after taking into account any fee waivers by EWC, plus 0.03%.

For its investment advisory services to the iShares Currency Hedged MSCI Japan ETF, BFA is entitled to an annual investment advisory fee of 0.53%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. The total of the investment advisory fee and acquired fund fees and expenses is a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds, provided that the waiver be no greater than the Fund’s investment advisory fee of 0.53%. BFA has also contractually agreed to waive an additional portion of its investment advisory fee for the Fund through December 31, 2020 such that the Fund’s total annual operating expenses after fee waiver will be equal to the greater of the acquired fund fees and expenses or 0.48%.

For its investment advisory services to the iShares Currency Hedged MSCI Mexico ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to reduce the investment advisory

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Mexico Capped ETF (“EWW”), after taking into account any fee waivers by EWW, plus 0.03%.

For its investment advisory services to the iShares Currency Hedged MSCI South Korea ETF, BFA is entitled to an annual investment advisory fee of 0.77%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI South Korea Capped ETF (“EWY”), after taking into account any fee waivers by EWY, plus 0.03%. Additionally, BFA has contractually agreed to a reduction in the investment advisory fee of 0.03% through December 31, 2020.

For its investment advisory services to the iShares Edge MSCI Min Vol Global Currency Hedged ETF, BFA is entitled to an annual investment advisory fee of 0.38%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to investments by the Fund in the iShares Edge MSCI Min Vol Global ETF (“ACWV”). BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses that would have been experienced by the Fund related to its investment in ACWV, after taking into account any fee waivers by ACWV, plus 0.03%.

The U.S. Securities and Exchange Commission 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 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 Fund, pursuant to a securities lending agreement, will retain 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.

NOTES TO FINANCIAL STATEMENTS 59

Notes to Financial Statements (Continued)

iSHARES^® TRUST

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Adaptive Currency Hedged MSCI Japan	$	20
Currency Hedged MSCI Australia		717
Currency Hedged MSCI Canada		80
Currency Hedged MSCI Japan		1,913
Currency Hedged MSCI Mexico		710
Currency Hedged MSCI South Korea		76
Edge MSCI Min Vol Global Currency Hedged		32

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.

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.

It is possible that, from time to time, BlackRock and/or funds or other accounts managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of the Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of August 31, 2017, the number of affiliated accounts that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:

iShares ETF	Number of Affiliated Accounts		Aggregate Affiliated Ownership Percentage
Adaptive Currency Hedged MSCI Japan		1		48	%
Currency Hedged MSCI Mexico		1		20	%

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.

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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 August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
Adaptive Currency Hedged MSCI Japan	$	398,531	$	340,960
Currency Hedged MSCI Australia		672,664		838,345
Currency Hedged MSCI Canada		567,401		407,900
Currency Hedged MSCI Japan		135,170,939		97,932,317
Currency Hedged MSCI Mexico		262,081		838,890
Currency Hedged MSCI South Korea		1,360,788		1,282,058
Edge MSCI Min Vol Global Currency Hedged		143,886		131,831

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Adaptive Currency Hedged MSCI Japan	$	1,248,377	$	—
Currency Hedged MSCI Australia		—		9,061,156
Currency Hedged MSCI Canada		—		8,716,667
Currency Hedged MSCI Japan		1,231,289,640		640,731,794
Currency Hedged MSCI Mexico		4,172,881		2,008,341
Currency Hedged MSCI South Korea		2,783,356		13,928,553
Edge MSCI Min Vol Global Currency Hedged		1,325,483		—

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. FORWARD CURRENCY CONTRACTS

Each Fund uses forward currency contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held by the Fund or its underlying fund. A forward currency contract is an obligation to purchase or sell a currency against another

NOTES TO FINANCIAL STATEMENTS 61

Notes to Financial Statements (Continued)

iSHARES^® TRUST

currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange.

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Non-deliverable forward currency contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. A fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the fund failing to close out its position due to an illiquid market.

The following table shows the value of forward currency contracts held as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Assets
	iShares Adaptive Currency Hedged MSCI Japan ETF		iShares Currency Hedged MSCI Australia ETF		iShares Currency Hedged MSCI Canada ETF
Forward currency contracts:
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation)	$	15,274	$	20,487	$	14,634

	iShares Currency Hedged MSCI Japan ETF		iShares Currency Hedged MSCI Mexico ETF		iShares Currency Hedged MSCI South Korea ETF
Forward currency contracts:
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation)	$	2,903,587	$	4,331	$	4,621

	iShares Edge MSCI Min Vol Global Currency Hedged ETF
Forward currency contracts:
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation)	$	3,841

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Liabilities
	iShares Adaptive Currency Hedged MSCI Japan ETF		iShares Currency Hedged MSCI Australia ETF		iShares Currency Hedged MSCI Canada ETF
Forward currency contracts:
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation)	$	26,440	$	5,231	$	23,636

	iShares Currency Hedged MSCI Japan ETF		iShares Currency Hedged MSCI Mexico ETF		iShares Currency Hedged MSCI South Korea ETF
Forward currency contracts:
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation)	$	16,227,509	$	1,954	$	3,995

	iShares Edge MSCI Min Vol Global Currency Hedged ETF
Forward currency contracts:
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation)	$	11,038

The following table shows the realized and unrealized gains (losses) on forward currency contracts held during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)
	iShares Adaptive Currency Hedged MSCI Japan ETF		iShares Currency Hedged MSCI Australia ETF			iShares Currency Hedged MSCI Canada ETF
Forward currency contracts	$	73,024	$	(162,810	)	$	7,205

NOTES TO FINANCIAL STATEMENTS 63

Notes to Financial Statements (Continued)

iSHARES^® TRUST

	iShares Currency Hedged MSCI Japan ETF		iShares Currency Hedged MSCI Mexico ETF			iShares Currency Hedged MSCI South Korea ETF
Forward currency contracts	$	19,026,213	$	(376,981	)	$	313,026

	iShares Edge MSCI Min Vol Global Currency Hedged ETF
Forward currency contracts	$	9,653

	Net Change in Unrealized Appreciation/Depreciation
	iShares Adaptive Currency Hedged MSCI Japan ETF			iShares Currency Hedged MSCI Australia ETF		iShares Currency Hedged MSCI Canada ETF
Forward currency contracts	$	(36,381	)	$	1,682	$	(7,103	)

	iShares Currency Hedged MSCI Japan ETF			iShares Currency Hedged MSCI Mexico ETF		iShares Currency Hedged MSCI South Korea ETF
Forward currency contracts	$	(4,018,829	)	$	6,748	$	138,407

	iShares Edge MSCI Min Vol Global Currency Hedged ETF
Forward currency contracts	$	4,259

The following table shows the average quarter-end balances of outstanding forward currency contracts for the year ended August 31, 2017:

	iShares Adaptive Currency Hedged MSCI Japan ETF		iShares Currency Hedged MSCI Australia ETF		iShares Currency Hedged MSCI Canada ETF
Average amounts purchased in U.S. dollars	$	3,355,554	$	6,191,195	$	5,838,529
Average amounts sold in U.S. dollars	$	6,261,662	$	11,890,118	$	11,683,661

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

	iShares Currency Hedged MSCI Japan ETF		iShares Currency Hedged MSCI Mexico ETF		iShares Currency Hedged MSCI South Korea ETF
Average amounts purchased in U.S. dollars	$	974,884,553	$	2,267,567	$	6,704,867
Average amounts sold in U.S. dollars	$	1,849,407,833	$	4,398,392	$	11,996,321

	iShares Edge MSCI Min Vol Global Currency Hedged ETF
Average amounts purchased in U.S. dollars	$	1,262,716
Average amounts sold in U.S. dollars	$	2,271,820

The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.

The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Except for NDFs, the forward currency contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as “Cash pledged to broker for forward currency contracts” on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as “Investments in securities – affiliated” and “Payable due to broker for collateral on forwards.” To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.

NOTES TO FINANCIAL STATEMENTS 65

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The following table presents the exposure of the open forward currency contracts that are subject to potential offset in the statements of assets and liabilities as of August 31, 2017:

	Derivative Assets Subject to Offsetting		Derivatives Available for Offset			Cash Collateral Pledged		Net Amount of Derivative Assets
iShares Adaptive Currency Hedged MSCI Japan ETF
Forward currency contracts	$	15,274	$	(15,274	)	$	—	$	—
iShares Currency Hedged MSCI Australia ETF
Forward currency contracts	$	20,487	$	(5,231	)	$	—	$	15,256
iShares Currency Hedged MSCI Canada ETF
Forward currency contracts	$	14,634	$	(14,634	)	$	—	$	—
iShares Currency Hedged MSCI Japan ETF
Forward currency contracts	$	2,903,587	$	(2,834,629	)	$	—	$	68,958
iShares Currency Hedged MSCI Mexico ETF
Forward currency contracts	$	4,331	$	(1,954	)	$	—	$	2,377
iShares Currency Hedged MSCI South Korea ETF
Forward currency contracts	$	4,621	$	(3,995	)	$	—	$	626
iShares Edge MSCI Min Vol Global Currency Hedged ETF
Forward currency contracts	$	3,841	$	(3,841	)	$	—	$	—

	Derivative Liabilities Subject to Offsetting		Derivatives Available for Offset			Cash Collateral Pledged a			Net Amount of Derivative Liabilities
iShares Adaptive Currency Hedged MSCI Japan ETF
Forward currency contracts	$	26,440	$	(15,274	)	$	—		$	11,166
iShares Currency Hedged MSCI Australia ETF
Forward currency contracts	$	5,231	$	(5,231	)	$	—		$	—
iShares Currency Hedged MSCI Canada ETF
Forward currency contracts	$	23,636	$	(14,634	)	$	—		$	9,002
iShares Currency Hedged MSCI Japan ETF
Forward currency contracts	$	16,227,509	$	(2,834,629	)	$	(980,000	)	$	12,412,880
iShares Currency Hedged MSCI Mexico ETF
Forward currency contracts	$	1,954	$	(1,954	)	$	—		$	—
iShares Currency Hedged MSCI South Korea ETF
Forward currency contracts	$	3,995	$	(3,995	)	$	—		$	—
iShares Edge MSCI Min Vol Global Currency Hedged ETF
Forward currency contracts	$	11,038	$	(3,841	)	$	—		$	7,197

^a  Excess of collateral pledged is not shown for financial reporting purposes.

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

6. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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.

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.

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

NOTES TO FINANCIAL STATEMENTS 67

Notes to Financial Statements (Continued)

iSHARES^® TRUST

August 31, 2017, attributable to distributions paid in excess of taxable income, the use of equalization 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
Currency Hedged MSCI Australia	$	998,793		$	131		$	(998,924	)
Currency Hedged MSCI Canada		1,231,780			119			(1,231,899	)
Currency Hedged MSCI Japan		17,248,719			958			(17,249,677	)
Currency Hedged MSCI Mexico		(64,761	)		—			64,761
Currency Hedged MSCI South Korea		955,969			(2	)		(955,967	)
Edge MSCI Min Vol Global Currency Hedged		(133	)		133			—

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF		2017		2016
Adaptive Currency Hedged MSCI Japan
Ordinary income	$	77,558	$	27,489
Currency Hedged MSCI Australia
Ordinary income	$	166,741	$	272,691
Long-term capital gain		—		108,896
	$	166,741	$	381,587
Currency Hedged MSCI Canada
Ordinary income	$	45,516	$	173,335
Long-term capital gain		—		85,401
Return of capital		—		507
	$	45,516	$	259,243
Currency Hedged MSCI Japan
Ordinary income	$	16,546,504	$	16,497,459
Long-term capital gain		—		6,474,910
	$	16,546,504	$	22,972,369
Currency Hedged MSCI Mexico
Ordinary income	$	105,700	$	100,924
Long-term capital gain		51,316		85,004
	$	157,016	$	185,928
Currency Hedged MSCI South Korea
Ordinary income	$	214,656	$	949,986
Long-term capital gain		182,483		11,094
	$	397,139	$	961,080
Edge MSCI Min Vol Global Currency Hedged
Ordinary income	$	67,377	$	56,955

68 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of August 31, 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
Adaptive Currency Hedged MSCI Japan	$	5	$	(169,254	)	$	558,570	$	389,321
Currency Hedged MSCI Australia		—		(676,903	)		111,752		(565,151	)
Currency Hedged MSCI Canada		—		(275,892	)		157,027		(118,865	)
Currency Hedged MSCI Japan		—		(97,548,097	)		61,081,056		(36,467,041	)
Currency Hedged MSCI Mexico		112		(385,579	)		401,653		16,186
Currency Hedged MSCI South Korea		—		—			230,051		230,051
Edge MSCI Min Vol Global Currency Hedged		—		(39,305	)		265,755		226,450

^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 realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts.

As of August 31, 2017, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

iShares ETF	Non- Expiring
Adaptive Currency Hedged MSCI Japan	$	169,254
Currency Hedged MSCI Australia		676,903
Currency Hedged MSCI Canada		275,892
Currency Hedged MSCI Japan		97,548,097
Currency Hedged MSCI Mexico		385,579
Edge MSCI Min Vol Global Currency Hedged		39,305

For the year ended August 31, 2017, the iShares Adaptive Currency Hedged MSCI Japan ETF utilized $40,124 of its capital loss carryforwards.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 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. LEGAL PROCEEDINGS

On June 16, 2016, investors (the “Plaintiffs”) 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 putative 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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

NOTES TO FINANCIAL STATEMENTS 69

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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.

70 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 Adaptive Currency Hedged MSCI Japan ETF,

iShares Currency Hedged MSCI Australia ETF, iShares Currency Hedged MSCI Canada ETF,

iShares Currency Hedged MSCI Japan ETF, iShares Currency Hedged MSCI Mexico ETF,

iShares Currency Hedged MSCI South Korea ETF and

iShares Edge MSCI Min Vol Global Currency Hedged 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 Adaptive Currency Hedged MSCI Japan ETF, iShares Currency Hedged MSCI Australia ETF, iShares Currency Hedged MSCI Canada ETF, iShares Currency Hedged MSCI Japan ETF, iShares Currency Hedged MSCI Mexico ETF, iShares Currency Hedged MSCI South Korea ETF and iShares Edge MSCI Min Vol Global Currency Hedged ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 71

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:

iShares ETF	Qualified Dividend Income
Adaptive Currency Hedged MSCI Japan	$	76,908
Currency Hedged MSCI Australia		162,282
Currency Hedged MSCI Canada		46,523
Currency Hedged MSCI Japan		16,387,063
Currency Hedged MSCI Mexico		39,741
Currency Hedged MSCI South Korea		97,982
Edge MSCI Min Vol Global Currency Hedged		56,550

For corporate shareholders, the percentage of income dividends paid by the iShares Edge MSCI Min Vol Global Currency Hedged ETF during the fiscal year ended August 31, 2017 that qualified for the dividends-received deduction was 51.86%.

For the fiscal year ended August 31, 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
Adaptive Currency Hedged MSCI Japan	$	74,222	$	9,399
Currency Hedged MSCI Australia		155,151		1,012
Currency Hedged MSCI Canada		56,633		11,137
Currency Hedged MSCI Japan		17,095,612		2,001,926
Currency Hedged MSCI Mexico		46,513		2,280
Currency Hedged MSCI South Korea		101,407		21,148

The following Funds hereby designate the following amounts as 20% rate long-term capital gain dividends for the fiscal year ended August 31, 2017:

iShares ETF	Long-Term Capital Gain
Currency Hedged MSCI Mexico	$	51,316
Currency Hedged MSCI South Korea		282,503

The following Funds hereby designate the following amounts as short-term capital gain dividends for the fiscal year ended August 31, 2017:

iShares ETF	Short-Term Capital Gain
Currency Hedged MSCI Mexico	$	59,572
Currency Hedged MSCI South Korea		113,967

72 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

I. iShares Adaptive Currency Hedged MSCI Japan ETF and iShares Currency Hedged MSCI Japan ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 73

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Funds to BlackRock, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through

74 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that to the extent that a Fund invests in an underlying iShares fund that has breakpoints, the shareholders of that Fund would benefit from breakpoints in such underlying iShares fund’s respective investment advisory fee rate as the assets of such underlying iShares fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars

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or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares Currency Hedged MSCI Australia ETF, iShares Currency Hedged MSCI Canada ETF, iShares Currency Hedged MSCI Mexico ETF and iShares Edge MSCI Min Vol Global Currency Hedged ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the

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various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Funds to BlackRock, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds,

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including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that to the extent that a Fund invests in an underlying iShares fund that has breakpoints, the shareholders of that Fund would benefit from breakpoints in such underlying iShares fund’s respective investment advisory fee rate as the assets of such underlying iShares fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne

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by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

III. iShares Currency Hedged MSCI South Korea ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the

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Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed

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presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that to the extent that the Fund invests in an underlying iShares fund that has breakpoints, the shareholders of the Fund would benefit from such breakpoints in the underlying iShares fund’s investment advisory fee rate as the assets of the underlying iShares fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the

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Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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iSHARES^® TRUST

Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.

Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

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
Adaptive Currency Hedged MSCI Japan	$	0.462540	$	—	$	0.000545	$	0.463085		100	%		—	%		0	%a		100	%
Currency Hedged MSCI Australia		1.111605		—		—		1.111605		100			—			—			100
Currency Hedged MSCI Canada		0.412315		—		0.042843		0.455158		91			—			9			100
Currency Hedged MSCI Japan		0.470484		—		0.000555		0.471039		100			—			0	a		100
Currency Hedged MSCI Mexico		0.326568		2.217760		—		2.544328		13			87			—			100
Currency Hedged MSCI South Korea		0.001405		0.847000		0.348975		1.197380		0a			71			29			100
Edge MSCI Min Vol Global Currency Hedged		0.662457		—		0.011309		0.673766		98			—			2			100

^a  Rounds to less than 1%.

SUPPLEMENTAL INFORMATION 83

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding 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. Each line in each 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 Adaptive Currency Hedged MSCI Japan ETF

Period Covered: January 5, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		1		0.27	%
Greater than 0.0% and Less than 0.5%		307		81.65
At NAV		7		1.86
Less than 0.0% and Greater than –0.5%		59		15.69
Less than –0.5%		2		0.53
		376		100.00	%

84 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Currency Hedged MSCI Australia ETF

Period Covered: June 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		97		19.13	%
Greater than 2.0% and Less than 2.5%		1		0.20
Greater than 1.5% and Less than 2.0%		4		0.79
Greater than 1.0% and Less than 1.5%		1		0.20
Greater than 0.5% and Less than 1.0%		3		0.59
Greater than 0.0% and Less than 0.5%		223		43.98
At NAV		20		3.94
Less than 0.0% and Greater than –0.5%		146		28.80
Less than –0.5% and Greater than –1.0%		7		1.38
Less than –1.0% and Greater than –1.5%		1		0.20
Less than –1.5% and Greater than –2.0%		4		0.79
		507		100.00	%

iShares Currency Hedged MSCI Canada ETF

Period Covered: June 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		8		1.58	%
Greater than 2.5% and Less than 3.0%		3		0.59
Greater than 2.0% and Less than 2.5%		4		0.79
Greater than 1.5% and Less than 2.0%		3		0.59
Greater than 1.0% and Less than 1.5%		1		0.20
Greater than 0.5% and Less than 1.0%		16		3.16
Greater than 0.0% and Less than 0.5%		288		56.80
At NAV		25		4.93
Less than 0.0% and Greater than –0.5%		158		31.16
Less than –0.5% and Greater than –1.0%		1		0.20
		507		100.00	%

SUPPLEMENTAL INFORMATION 85

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Currency Hedged MSCI Japan ETF

Period Covered: January 31, 2014 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.0%		1		0.12	%
Greater than 0.5% and Less than 1.0%		1		0.12
Greater than 0.0% and Less than 0.5%		495		57.49
At NAV		56		6.50
Less than 0.0% and Greater than –0.5%		308		35.77
		861		100.00	%

iShares Currency Hedged MSCI Mexico ETF

Period Covered: June 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.5%		3		0.59	%
Greater than 5.0% and Less than 5.5%		1		0.20
Greater than 4.5% and Less than 5.0%		1		0.20
Greater than 4.0% and Less than 4.5%		1		0.20
Greater than 3.5% and Less than 4.0%		1		0.20
Greater than 3.0% and Less than 3.5%		5		0.99
Greater than 2.5% and Less than 3.0%		13		2.56
Greater than 2.0% and Less than 2.5%		14		2.76
Greater than 1.5% and Less than 2.0%		3		0.59
Greater than 1.0% and Less than 1.5%		4		0.79
Greater than 0.5% and Less than 1.0%		21		4.14
Greater than 0.0% and Less than 0.5%		278		54.83
At NAV		30		5.92
Less than 0.0% and Greater than –0.5%		129		25.44
Less than –0.5% and Greater than –1.0%		1		0.20
Less than –1.0%		2		0.39
		507		100.00	%

86 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Currency Hedged MSCI South Korea ETF

Period Covered: June 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.0%		1		0.20	%
Greater than 0.5% and Less than 1.0%		1		0.20
Greater than 0.0% and Less than 0.5%		156		30.77
At NAV		20		3.94
Less than 0.0% and Greater than –0.5%		320		63.11
Less than –0.5% and Greater than –1.0%		8		1.58
Less than –1.0%		1		0.20
		507		100.00	%

iShares Edge MSCI Min Vol Global Currency Hedged ETF

Period Covered: October 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		3		0.71	%
Greater than 0.0% and Less than 0.5%		302		71.73
At NAV		7		1.66
Less than 0.0% and Greater than –0.5%		107		25.42
Less than –0.5%		2		0.48
		421		100.00	%

SUPPLEMENTAL INFORMATION 87

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 344 funds (as of August 31, 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.

88 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).	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 (14 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); Equity Plus Committee Chair (since 2017).	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 (62)	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); 15(c) Committee Chair (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).

TRUSTEE AND OFFICER INFORMATION 89

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
John E. Martinez (56)	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).
Madhav V. Rajan (53)	Trustee (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); 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).

90 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 (42)	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 (42)	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 (55)	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 of 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 91

Additional Financial Information

Audited Financial Statements

August 31, 2017

iShares, Inc.

iShares Edge MSCI Min Vol Global ETF  |  ACWV  |  BATS

iShares MSCI Australia ETF  I  | EWA  |  NYSE Arca

iShares MSCI Canada ETF  I  |  EWC  |  NYSE Arca

iShares MSCI Japan ETF  I  |  EWJ  |  NYSE Arca

iShares MSCI Mexico Capped ETF  I  |  EWW  |  NYSE Arca

iShares MSCI South Korea Capped ETF  I  |  EWY  |  NYSE Arca

Schedule of Investments

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.45%
BELGIUM — 0.30%
Colruyt SA		32,616	$	1,809,923
Proximus SADP		153,567		5,406,980
UCB SA		56,172		3,866,060
				11,082,963
CANADA — 3.60%
Agnico Eagle Mines Ltd.		226,047		11,540,792
Barrick Gold Corp.		107,361		1,925,861
BCE Inc.		264,552		12,542,350
Fairfax Financial Holdings Ltd.		13,137		6,801,168
First Capital Realty Inc.		169,422		2,741,832
Franco-Nevada Corp.a		296,715		24,177,391
Goldcorp Inc.a		580,746		7,948,635
Intact Financial Corp.		228,312		18,745,713
RioCan REIT		105,549		2,003,642
Rogers Communications Inc. Class B		92,865		4,828,610
Shaw Communications Inc. Class B		680,859		15,129,597
TELUS Corp.		309,842		11,172,847
Thomson Reuters Corp.		227,406		10,356,836
Wheaton Precious Metals Corp.		112,797		2,333,762
				132,249,036
CHILE — 0.50%
Banco de Chile		51,040,232		7,434,636
SACI Falabella		1,075,422		10,812,232
				18,246,868
CHINA — 3.21%
Agricultural Bank of China Ltd. Class H		7,701,000		3,621,013
ANTA Sports Products Ltd.a		906,000		3,565,448
China Construction Bank Corp. Class H		8,607,000		7,544,164
China Huishan Dairy Holdings Co. Ltd.a,b		5,760,000		7
China Mobile Ltd.		2,355,000		24,974,925
China Telecom Corp. Ltd. Class H		9,060,000		4,653,604
China Unicom Hong Kong Ltd.c		2,718,000		3,959,036
COSCO SHIPPING Ports Ltd.a		1,812,000		2,141,584
CSPC Pharmaceutical Group Ltd.		7,248,000		11,316,824
Fullshare Holdings Ltd.a		1,132,500		451,469

Security	Shares		Value
Guangdong Investment Ltd.a		5,436,000	$	8,029,203
Industrial & Commercial Bank of China Ltd. Class H		2,718,000		2,035,084
Jiangsu Expressway Co. Ltd. Class H		1,884,000		2,888,666
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		3,768,000		3,009,027
Shenzhou International Group Holdings Ltd.a		942,000		7,546,640
Sihuan Pharmaceutical Holdings Group Ltd.		4,077,000		1,567,987
Tencent Holdings Ltd.		90,600		3,808,547
Yum China Holdings Inc.c		665,910		23,546,578
Zijin Mining Group Co. Ltd. Class H		9,060,000		3,322,349
				117,982,155
CZECH REPUBLIC — 0.06%
Komercni Banka AS		53,907		2,371,618
				2,371,618
DENMARK — 1.32%
Chr Hansen Holding A/S		47,112		4,047,778
Coloplast A/S Class B		161,721		13,222,659
DONG Energy A/Sd		256,398		13,328,212
H Lundbeck A/S		118,686		7,548,839
ISS A/S		120,498		4,682,433
William Demant Holding A/Sa,c		219,252		5,793,262
				48,623,183
FINLAND — 0.05%
Orion OYJ Class B		40,317		1,906,769
				1,906,769
GERMANY — 0.19%
MAN SE		62,514		7,009,389
				7,009,389
HONG KONG — 3.45%
CK Infrastructure Holdings Ltd.		942,000		8,533,601
CLP Holdings Ltd.		2,491,500		26,311,096
Hang Seng Bank Ltd.		1,313,700		30,213,698
HK Electric Investments & HK Electric Investments Ltd.a,d		4,983,000		4,571,414
HKT Trust & HKT Ltd.		6,727,000		8,681,164
Hong Kong & China Gas Co. Ltd.a		4,878,852		9,226,023
Link REIT		1,186,500		9,793,444

SCHEDULES OF INVESTMENTS 93

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017

Security	Shares		Value
MTR Corp. Ltd.		2,590,500	$	15,142,929
Power Assets Holdings Ltd.a		942,000		8,304,915
Yue Yuen Industrial Holdings Ltd.		1,359,000		5,886,462
				126,664,746
INDIA — 0.32%
Wipro Ltd. ADRa		1,962,849		11,659,323
				11,659,323
INDONESIA — 0.85%
Bank Central Asia Tbk PT		9,694,200		13,768,932
Hanjaya Mandala Sampoerna Tbk PT		14,450,700		3,942,478
Kalbe Farma Tbk PT		16,625,100		2,130,784
Telekomunikasi Indonesia Persero Tbk PT		22,468,800		7,898,267
Unilever Indonesia Tbk PT		906,000		3,432,641
				31,173,102
IRELAND — 0.47%
Kerry Group PLC Class A		101,925		9,479,800
Paddy Power Betfair PLC		22,197		1,947,318
Ryanair Holdings PLC ADRc		51,642		5,871,696
				17,298,814
ISRAEL — 0.69%
Azrieli Group Ltd.		73,839		4,255,370
Bank Hapoalim BM		647,337		4,355,106
Bank Leumi Le-Israel BM		770,553		4,034,680
Check Point Software Technologies Ltd.a,c		33,522		3,750,106
Mizrahi Tefahot Bank Ltd.a		253,227		4,510,097
Nice Ltd.		60,249		4,663,160
				25,568,519
ITALY — 0.63%
Luxottica Group SpA		69,309		3,984,109
Recordati SpA		38,052		1,627,735
Snam SpA		3,590,025		17,456,852
				23,068,696
JAPAN — 12.63%
ABC-Mart Inc.		47,100		2,417,908
Ajinomoto Co. Inc.		181,200		3,575,103
ANA Holdings Inc.		2,265,000		8,392,395
Astellas Pharma Inc.		860,700		10,819,357
Benesse Holdings Inc.		141,300		5,430,665
Canon Inc.		634,200		22,207,948
Chugai Pharmaceutical Co. Ltd.		94,200		3,825,859

Security	Shares		Value
Daiichi Sankyo Co. Ltd.		271,800	$	6,418,392
Daiwa House REIT Investment Corp.		906		2,212,728
Eisai Co. Ltd.		94,200		4,873,476
FamilyMart UNY Holdings Co. Ltd.		92,400		5,003,671
FUJIFILM Holdings Corp.		94,200		3,699,186
Japan Airlines Co. Ltd.		226,500		7,775,005
Japan Prime Realty Investment Corp.		1,413		5,071,188
Japan Real Estate Investment Corp.		1,413		7,317,918
Japan Retail Fund Investment Corp.		2,718		4,995,924
Kajima Corp.		453,000		4,152,980
KDDI Corp.		45,300		1,221,198
Keikyu Corp.		942,000		9,996,874
Kintetsu Group Holdings Co. Ltd.		471,000		1,775,986
Kirin Holdings Co. Ltd.		181,200		4,110,174
Konami Holdings Corp.		135,900		7,075,295
Kyowa Hakko Kirin Co. Ltd.		90,600		1,589,575
Kyushu Railway Co.		218,500		6,829,366
Lawson Inc.		90,600		6,083,355
McDonald’s Holdings Co. Japan Ltd.a		141,300		6,271,584
MEIJI Holdings Co. Ltd.		90,600		7,211,121
Miraca Holdings Inc.		94,200		4,275,204
Mitsubishi Tanabe Pharma Corp.		407,700		10,001,726
Nagoya Railroad Co. Ltd.		1,359,000		6,075,123
NH Foods Ltd.		150,000		4,402,144
Nippon Building Fund Inc.		838		4,454,207
Nippon Prologis REIT Inc.		2,784		6,040,516
Nippon Telegraph & Telephone Corp.		453,000		22,505,942
Nissin Foods Holdings Co. Ltd.		94,200		5,802,980
Nitori Holdings Co. Ltd.		100,300		15,474,232
Nomura Real Estate Master Fund Inc.		4,983		6,578,502
Nomura Research Institute Ltd.		227,030		8,828,715
NTT Data Corp.		1,180,500		12,742,450
NTT DOCOMO Inc.		815,400		18,918,080
Obayashi Corp.		226,500		2,669,185
Oracle Corp. Japan		47,100		3,479,220
Oriental Land Co. Ltd./Japan		141,300		10,603,277
Otsuka Corp.		94,200		6,230,929

94 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017

Security	Shares		Value
Otsuka Holdings Co. Ltd.		518,100	$	20,849,218
Park24 Co. Ltd.		186,600		4,481,045
Recruit Holdings Co. Ltd.		1,766,700		35,170,268
Sankyo Co. Ltd.		94,200		3,072,669
Santen Pharmaceutical Co. Ltd.		226,500		3,510,894
Secom Co. Ltd.		235,500		17,464,574
Shimadzu Corp.		135,900		2,495,493
Shionogi & Co. Ltd.		47,100		2,479,961
Suntory Beverage & Food Ltd.		235,500		10,869,889
Taisho Pharmaceutical Holdings Co. Ltd.		47,100		3,671,797
Takeda Pharmaceutical Co. Ltd.		271,800		15,007,529
Terumo Corp.		181,200		6,997,093
Tobu Railway Co. Ltd.		1,413,000		7,805,779
Toho Co. Ltd./Tokyo		90,600		3,362,720
Toyo Suisan Kaisha Ltd.		141,300		5,218,831
United Urban Investment Corp.		4,983		7,511,173
USS Co. Ltd.		141,300		2,774,389
Yamada Denki Co. Ltd.		362,400		1,959,186
				464,139,171
MALAYSIA — 0.80%
Hong Leong Bank Bhda		1,177,800		4,258,338
IHH Healthcare Bhda		2,536,800		3,558,233
Malayan Banking Bhd		2,536,800		5,619,512
Maxis Bhda		3,005,300		4,067,588
Petronas Dagangan Bhd		317,100		1,811,788
Public Bank Bhd		1,498,060		7,226,328
Telekom Malaysia Bhda		1,857,300		2,796,497
				29,338,284
PHILIPPINES — 0.39%
Aboitiz Equity Ventures Inc.		2,228,760		3,242,744
Bank of the Philippine Islands		1,363,539		2,821,942
BDO Unibank Inc.		3,415,629		8,484,003
				14,548,689
QATAR — 0.22%
Qatar National Bank QPSC		227,188		8,148,508
				8,148,508
SINGAPORE — 0.90%
SATS Ltd.		1,268,400		4,511,320
Singapore Airlines Ltd.a		996,600		7,566,234
Singapore Press Holdings Ltd.a		1,439,500		2,925,641
Singapore Telecommunications Ltd.a		6,613,800		18,019,926
				33,023,121

Security	Shares		Value
SOUTH KOREA — 0.76%
Dongbu Insurance Co. Ltd.		29,445	$	1,963,696
Kangwon Land Inc.		110,079		3,367,972
KT&G Corp.		19,479		1,977,958
NAVER Corp.		2,718		1,819,874
S-1 Corp.		28,992		2,306,299
Samsung Biologics Co. Ltd.a,c,d		28,888		7,250,181
Samsung Fire & Marine Insurance Co. Ltd.		15,855		3,887,822
SK Telecom Co. Ltd.		24,462		5,499,394
				28,073,196
SPAIN — 0.06%
Amadeus IT Group SA		36,693		2,271,517
				2,271,517
SWITZERLAND — 5.04%
Chocoladefabriken Lindt & Spruengli AG Registered		146		10,134,922
EMS-Chemie Holding AG Registered		12,684		8,651,781
Givaudan SA Registered		1,359		2,771,738
Kuehne + Nagel International AG Registered		93,771		16,949,035
Nestle SA Registered		455,265		38,538,822
Novartis AG Registered		229,671		19,334,426
Partners Group Holding AG		14,043		9,089,226
Roche Holding AG		86,070		21,808,579
Schindler Holding AG Registered		35,334		7,408,742
Sika AG Bearer		453		3,205,411
Sonova Holding AG Registered		82,899		13,983,276
Straumann Holding AG Registered		11,778		7,531,302
Swiss Prime Site AG Registered		65,685		5,932,839
Swisscom AG Registered		39,411		19,832,632
				185,172,731
TAIWAN — 4.02%
Asustek Computer Inc.		942,000		7,803,440
Chang Hwa Commercial Bank Ltd.		8,077,361		4,416,199
Chicony Electronics Co. Ltd.		954,956		2,398,544
Chunghwa Telecom Co. Ltd.		6,795,000		23,641,439
E.Sun Financial Holding Co. Ltd.		8,754,557		5,395,631
Far EasTone Telecommunications Co. Ltd.		2,826,000		6,854,541
First Financial Holding Co. Ltd.		15,702,894		10,198,374

SCHEDULES OF INVESTMENTS 95

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017

Security	Shares		Value
Formosa Petrochemical Corp.		2,265,000	$	7,993,058
Hon Hai Precision Industry Co. Ltd.		3,095,400		12,051,741
Hua Nan Financial Holdings Co. Ltd.		11,891,261		6,639,310
Mega Financial Holding Co. Ltd.		15,402,000		12,376,106
Quanta Computer Inc.		942,000		2,144,385
Siliconware Precision Industries Co. Ltd.		3,624,000		5,739,991
Synnex Technology International Corp.		3,171,250		3,541,242
Taiwan Cooperative Financial Holding Co. Ltd.		13,996,454		7,374,122
Taiwan Mobile Co. Ltd.		2,718,000		9,726,764
Taiwan Semiconductor Manufacturing Co. Ltd.		2,355,000		16,894,447
WPG Holdings Ltd.		1,884,000		2,453,401
				147,642,735
THAILAND — 0.78%
Advanced Info Service PCL NVDR		1,087,600		6,141,394
Bangkok Dusit Medical Services PCL NVDRa		6,830,800		4,299,465
BTS Group Holdings PCL NVDR		10,604,400		2,762,477
Bumrungrad Hospital PCL NVDRa		612,600		4,021,888
CP ALL PCL NVDR		1,041,900		1,945,424
Home Product Center PCL NVDR		7,146,800		2,152,327
Krung Thai Bank PCL NVDR		6,071,400		3,419,219
Siam Cement PCL (The) Foreign		271,800		4,092,757
				28,834,951
UNITED ARAB EMIRATES — 0.28%
Emirates Telecommunications Group Co. PJSC		1,580,064		7,743,092
First Abu Dhabi Bank PJSC		849,375		2,404,917
				10,148,009
UNITED KINGDOM — 1.55%
AstraZeneca PLC		25,821		1,510,866
Compass Group PLC		469,972		10,004,223
ConvaTec Group PLCc,d		2,032,535		7,513,978
GlaxoSmithKline PLC		546,633		10,801,423
Kingfisher PLC		1,419,184		5,465,954
Randgold Resources Ltd.		65,685		6,694,899
Reckitt Benckiser Group PLC		79,728		7,532,422

Security	Shares		Value
TUI AG		443,487	$	7,474,635
				56,998,400
UNITED STATES — 56.38%
3M Co.		26,727		5,460,861
Abbott Laboratories		246,885		12,576,322
Accenture PLC Class A		31,257		4,087,165
Adobe Systems Inc.c		25,821		4,006,386
Aetna Inc.		76,104		12,001,601
AGNC Investment Corp.		612,909		13,202,060
Alleghany Corp.c		18,384		10,345,964
Allstate Corp. (The)		187,089		16,931,554
Altria Group Inc.		460,248		29,179,723
American Tower Corp.		22,650		3,353,333
American Water Works Co. Inc.		90,600		7,329,540
Annaly Capital Management Inc.		1,757,640		21,970,500
ANSYS Inc.c		147,225		18,965,524
Aon PLC		70,668		9,834,159
Aramark		113,250		4,608,143
Arch Capital Group Ltd.c		225,594		21,959,320
AT&T Inc.		1,005,660		37,672,024
Athene Holding Ltd. Class Ac		187,995		10,059,612
Automatic Data Processing Inc.		401,358		42,732,586
AutoZone Inc.c		22,650		11,969,166
AvalonBay Communities Inc.		116,874		21,940,756
Axis Capital Holdings Ltd.		156,738		9,441,897
Baxter International Inc.		214,722		13,321,353
Becton Dickinson and Co.		161,721		32,253,636
Berkshire Hathaway Inc. Class Bc		145,413		26,343,019
Boston Scientific Corp.c		136,353		3,756,525
Broadridge Financial Solutions Inc.		109,173		8,529,686
Campbell Soup Co.		130,464		6,027,437
CH Robinson Worldwide Inc.		155,379		10,974,419
Charter Communications Inc. Class Ac		42,129		16,790,092
Chipotle Mexican Grill Inc.c		4,077		1,291,227
Chubb Ltd.		127,746		18,065,839
Church & Dwight Co. Inc.		443,940		22,272,470
Cigna Corp.		11,325		2,061,830
Cincinnati Financial Corp.		108,267		8,319,236
Cintas Corp.		115,062		15,534,521
Cisco Systems Inc.		201,585		6,493,053
Clorox Co. (The)		191,619		26,544,980
CMS Energy Corp.		34,881		1,693,124
Coca-Cola Co. (The)		523,215		23,832,443

96 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017

Security	Shares		Value
Colgate-Palmolive Co.		144,960	$	10,384,934
Comcast Corp. Class A		380,973		15,471,314
Consolidated Edison Inc.		503,283		42,411,658
Constellation Brands Inc. Class A		34,428		6,889,043
Cooper Companies Inc. (The)		9,060		2,272,520
Costco Wholesale Corp.		42,129		6,603,299
Crown Castle International Corp.		119,592		12,968,556
CVS Health Corp.		53,907		4,169,167
Danaher Corp.		72,933		6,084,071
Darden Restaurants Inc.		40,770		3,346,809
Dell Technologies Inc. Class Vc		373,725		28,003,214
Dominion Energy Inc.		279,501		22,016,294
Dr Pepper Snapple Group Inc.		115,968		10,558,886
Duke Energy Corp.		329,784		28,790,143
eBay Inc.c		101,472		3,666,183
Ecolab Inc.		34,428		4,589,252
Edison International		32,163		2,578,829
Eli Lilly & Co.		290,826		23,641,246
Equity Residential		132,276		8,882,333
Essex Property Trust Inc.		14,043		3,735,017
Everest Re Group Ltd.		71,121		17,956,630
Eversource Energy		77,010		4,851,630
Expeditors International of Washington Inc.		239,184		13,418,222
Exxon Mobil Corp.		348,357		26,590,090
F5 Networks Inc.c		15,402		1,838,691
Facebook Inc. Class Ac		42,582		7,322,827
Federal Realty Investment Trust		17,667		2,242,472
Fidelity National Information Services Inc.		137,259		12,754,106
Fiserv Inc.c		105,549		13,057,467
FNF Group		125,934		6,075,056
Gartner Inc.c		108,267		13,055,918
General Mills Inc.		402,264		21,424,581
Genuine Parts Co.		38,052		3,151,847
Henry Schein Inc.c		71,121		12,352,295
Hershey Co. (The)		62,967		6,606,498
Home Depot Inc. (The)		53,907		8,079,042
Hormel Foods Corp.		141,336		4,344,669
Humana Inc.		23,103		5,951,795
Intel Corp.		94,224		3,304,436
International Business Machines Corp.		81,993		11,727,459
Intuitive Surgical Inc.c		33,522		33,678,548
Jack Henry & Associates Inc.		130,464		13,446,924

Security	Shares		Value
JM Smucker Co. (The)		70,668	$	7,403,180
Johnson & Johnson		419,931		55,586,266
Kellogg Co.		356,058		23,307,557
Kimberly-Clark Corp.		107,361		13,236,538
Laboratory Corp. of America Holdingsc		88,335		13,857,111
Liberty Broadband Corp. Class Cc		27,180		2,759,585
Lockheed Martin Corp.		35,787		10,928,992
Lowe’s Companies Inc.		25,821		1,907,914
Markel Corp.c		24,462		25,733,779
Marsh & McLennan Companies Inc.		305,775		23,874,912
MasterCard Inc. Class A		45,488		6,063,550
McCormick & Co. Inc./MD NVS		194,337		18,487,279
McDonald’s Corp.		298,527		47,755,364
Medtronic PLC		170,328		13,731,843
Merck & Co. Inc.		410,871		26,238,222
Microsoft Corp.		36,693		2,743,536
Monsanto Co.		69,309		8,123,015
Motorola Solutions Inc.		164,439		14,490,365
Newmont Mining Corp.		114,156		4,376,741
NextEra Energy Inc.		37,833		5,694,245
Northrop Grumman Corp.		54,360		14,797,336
O’Reilly Automotive Inc.c		28,086		5,508,507
Occidental Petroleum Corp.		95,583		5,706,305
Oracle Corp.		66,138		3,328,726
Patterson Companies Inc.		39,411		1,517,324
Paychex Inc.		472,932		26,971,312
PepsiCo Inc.		298,980		34,600,955
Pfizer Inc.		650,508		22,065,231
PG&E Corp.		380,067		26,749,115
Procter & Gamble Co. (The)		469,761		43,344,847
Progressive Corp. (The)		139,524		6,485,076
Public Storage		70,215		14,417,948
Raytheon Co.		71,574		13,027,184
Realty Income Corp.a		108,720		6,257,923
RenaissanceRe Holdings Ltd.		57,768		8,038,995
Republic Services Inc.		411,324		26,834,778
Rollins Inc.		41,223		1,830,713
Ross Stores Inc.		63,420		3,706,899
SCANA Corp.		40,317		2,434,340
Sherwin-Williams Co. (The)		7,701		2,612,718
Southern Co. (The)		637,824		30,781,386
Starbucks Corp.		209,739		11,506,282

SCHEDULES OF INVESTMENTS 97

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017

Security	Shares		Value
Stryker Corp.		211,551	$	29,906,965
Synopsys Inc.c		232,389		18,688,723
Sysco Corp.		137,259		7,229,432
Time Warner Inc.		100,566		10,167,223
TJX Companies Inc. (The)		318,459		23,024,586
Travelers Companies Inc. (The)		116,421		14,107,897
UDR Inc.		274,518		10,656,789
Ulta Salon Cosmetics & Fragrance Inc.c		5,889		1,301,528
United Parcel Service Inc. Class B		135,900		15,541,524
UnitedHealth Group Inc.		93,771		18,651,052
Vantiv Inc. Class Ac		65,685		4,643,273
Varian Medical Systems Inc.c		150,849		16,027,706
Verizon Communications Inc.		682,218		32,725,997
Visa Inc. Class A		290,826		30,106,308
VMware Inc. Class Aa,c		73,839		7,981,996
Wal-Mart Stores Inc.		288,108		22,492,592
Walt Disney Co. (The)		40,317		4,080,080
Waste Management Inc.		451,188		34,791,107
Waters Corp.c		18,120		3,324,658
WEC Energy Group Inc.		340,656		22,217,584
Welltower Inc.		60,702		4,444,600
Westar Energy Inc.		50,283		2,580,021
WR Berkley Corp.		168,063		11,199,718
Xcel Energy Inc.		472,479		23,387,710
				2,072,130,020
TOTAL COMMON STOCKS
(Cost: $3,174,791,046)				3,655,374,513
PREFERRED STOCKS — 0.08%
COLOMBIA — 0.08%
Grupo Aval Acciones y Valores SA, Preference Shares		6,274,956		2,812,740
				2,812,740
TOTAL PREFERRED STOCKS
(Cost: $2,588,844)				2,812,740

Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.62%
MONEY MARKET FUNDS — 1.62%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%e,f,g		56,910,361	$	56,927,434
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%e,f		2,465,143		2,465,143
				59,392,577
TOTAL SHORT-TERM INVESTMENTS
(Cost: $59,378,772)				59,392,577
TOTAL INVESTMENTS IN SECURITIES — 101.15%
(Cost: $3,236,758,662)h				3,717,579,830
Other Assets, Less Liabilities — (1.15)%				(42,205,898	)
NET ASSETS — 100.00%			$	3,675,373,932

ADR — American Depositary Receipts

NVDR — Non-Voting Depositary Receipts

NVS — Non-Voting Shares

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

^b  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^c  Non-income earning security.

^d  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^e  Affiliated issuer. See Schedule 1.

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

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

^h  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $3,257,880,160. Net unrealized appreciation was $459,699,670, of which $525,135,558 represented gross unrealized appreciation on investments and $65,435,888 represented gross unrealized depreciation on investments.

98 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		88,500,685		—			(31,590,324	)b		56,910,361	$	56,927,434	$	16,088	$	13,805	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		2,334,558		130,585	b		—			2,465,143		2,465,143		242		—		29,119
											$	59,392,577	$	16,330	$	13,805	$	29,119

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	3,648,956,114	$	6,418,392	$	7	$	3,655,374,513
Preferred stocks		2,812,740		—		—		2,812,740
Money market funds		59,392,577		—		—		59,392,577
Total	$	3,711,161,431	$	6,418,392	$	7	$	3,717,579,830

See notes to financial statements.

SCHEDULES OF INVESTMENTS 99

Schedule of Investments

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 98.86%
AIRLINES — 0.20%
Qantas Airways Ltd.		795,638	$	3,609,664
				3,609,664
BANKS — 32.51%
Australia & New Zealand Banking Group Ltd.		5,136,385		119,773,317
Bank of Queensland Ltd.		678,490		6,775,235
Bendigo & Adelaide Bank Ltd.		826,886		7,837,341
Commonwealth Bank of Australia		3,025,804		181,913,603
National Australia Bank Ltd.		4,680,461		112,111,652
Westpac Banking Corp.		5,872,157		145,640,016
				574,051,164
BEVERAGES — 1.20%
Coca-Cola Amatil Ltd.		1,002,107		6,398,308
Treasury Wine Estates Ltd.		1,293,430		14,854,795
				21,253,103
BIOTECHNOLOGY — 4.58%
CSL Ltd.		793,934		80,930,141
				80,930,141
CAPITAL MARKETS — 3.04%
ASX Ltd.		339,114		14,707,180
Macquarie Group Ltd.		565,648		38,942,261
				53,649,441
CHEMICALS — 1.04%
Incitec Pivot Ltd.		2,950,223		7,792,095
Orica Ltd.		656,702		10,589,145
				18,381,240
COMMERCIAL SERVICES & SUPPLIES — 1.16%
Brambles Ltd.		2,779,285		20,522,863
				20,522,863
CONSTRUCTION & ENGINEERING — 0.32%
CIMIC Group Ltd.		170,731		5,694,211
				5,694,211
CONSTRUCTION MATERIALS — 1.22%
Boral Ltd.		2,046,106		10,824,532
James Hardie Industries PLC		769,365		10,794,821
				21,619,353
CONTAINERS & PACKAGING — 1.47%
Amcor Ltd./Australia		2,026,083		25,888,563
				25,888,563

Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES — 1.74%
AMP Ltd.		5,120,899	$	20,714,362
Challenger Ltd./Australia		998,027		9,926,474
				30,640,836
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.36%
Telstra Corp. Ltd.		7,282,264		21,197,647
TPG Telecom Ltd.		650,270		2,831,531
				24,029,178
ELECTRIC UTILITIES — 0.25%
AusNet Services		3,156,555		4,356,300
				4,356,300
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 7.61%
BGP Holdings PLCa,b		18,888,372		225
Dexus		1,781,857		13,553,349
Goodman Group		3,130,760		20,585,408
GPT Group (The)		3,142,646		12,462,944
Mirvac Group		6,467,658		11,901,185
Scentre Group		9,314,476		28,516,808
Stockland		4,236,023		14,883,916
Vicinity Centres		5,872,401		12,203,156
Westfield Corp.		3,453,703		20,353,026
				134,460,017
FOOD & STAPLES RETAILING — 6.43%
Wesfarmers Ltd.		1,978,497		66,881,194
Woolworths Ltd.		2,263,486		46,677,366
				113,558,560
GAS UTILITIES — 0.78%
APA Group		1,951,961		13,717,028
				13,717,028
HEALTH CARE EQUIPMENT & SUPPLIES — 0.71%
Cochlear Ltd.		100,652		12,470,573
				12,470,573
HEALTH CARE PROVIDERS & SERVICES — 1.68%
Healthscope Ltd.		3,044,518		4,201,680
Ramsay Health Care Ltd.		247,774		13,424,410
Sonic Healthcare Ltd.		693,089		12,038,941
				29,665,031
HOTELS, RESTAURANTS & LEISURE — 2.39%
Aristocrat Leisure Ltd.		950,225		15,955,209
Crown Resorts Ltd.		701,348		6,452,778
Domino’s Pizza Enterprises Ltd.c		109,355		3,742,610

100 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2017

Security	Shares		Value
Flight Centre Travel Group Ltd.c		96,527	$	3,701,694
Tabcorp Holdings Ltd.		1,466,532		4,780,667
Tatts Group Ltd.		2,312,037		7,536,883
				42,169,841
INSURANCE — 4.29%
Insurance Australia Group Ltd.		4,141,812		21,057,344
Medibank Pvt Ltd.		4,807,338		11,591,334
QBE Insurance Group Ltd.		2,399,497		19,868,994
Suncorp Group Ltd.		2,257,106		23,326,606
				75,844,278
IT SERVICES — 0.51%
Computershare Ltd.		811,281		9,040,716
				9,040,716
MEDIA — 0.28%
REA Group Ltd.		92,560		4,867,344
				4,867,344
METALS & MINING — 13.39%
Alumina Ltd.		4,285,441		7,205,872
BHP Billiton Ltd.		5,618,621		122,016,443
BlueScope Steel Ltd.		999,529		8,617,477
Fortescue Metals Group Ltd.		2,717,191		12,952,387
Newcrest Mining Ltd.		1,341,433		24,311,422
Rio Tinto Ltd.		742,091		39,929,896
South32 Ltd.		9,212,311		21,335,687
				236,369,184
MULTI-UTILITIES — 1.24%
AGL Energy Ltd.		1,151,342		21,907,346
				21,907,346
MULTILINE RETAIL — 0.18%
Harvey Norman Holdings Ltd.		966,353		3,127,168
				3,127,168
OIL, GAS & CONSUMABLE FUELS — 4.73%
Caltex Australia Ltd.		455,174		12,054,496
Oil Search Ltd.		2,401,745		12,782,170
Origin Energy Ltd.b		3,072,430		18,642,262
Santos Ltd.b		3,272,268		9,758,698
Woodside Petroleum Ltd.		1,326,416		30,330,500
				83,568,126
PROFESSIONAL SERVICES — 0.43%
Seek Ltd.		577,917		7,677,776
				7,677,776

Security	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.72%
LendLease Group		970,469	$	12,762,077
				12,762,077
ROAD & RAIL — 0.80%
Aurizon Holdings Ltd.		3,592,987		14,134,892
				14,134,892
TRANSPORTATION INFRASTRUCTURE — 2.60%
Sydney Airport		1,924,369		11,294,714
Transurban Group		3,590,318		34,627,543
				45,922,257
TOTAL COMMON STOCKS
(Cost: $1,913,517,259)				1,745,888,271
SHORT-TERM INVESTMENTS — 0.41%
MONEY MARKET FUNDS — 0.41%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		6,985,447		6,987,543
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		183,299		183,299
				7,170,842
TOTAL SHORT-TERM INVESTMENTS
(Cost: $7,170,523)				7,170,842
TOTAL INVESTMENTS IN SECURITIES — 99.27%
(Cost: $1,920,687,782)g				1,753,059,113
Other Assets, Less Liabilities — 0.73%				12,853,213
NET ASSETS — 100.00%			$	1,765,912,326

^a  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^b  Non-income earning security.

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

^d  Affiliated issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $1,979,016,818. Net unrealized depreciation was $226,038,358, of which $96,246,139 represented gross unrealized appreciation on investments and $322,284,497 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 101

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		2,407,298		4,578,149	b		—			6,985,447	$	6,987,543	$	(190	)	$	319	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		532,214		—			(348,915	)b		183,299		183,299		53			—		7,465
											$	7,170,842	$	(137	)	$	319	$	7,465

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description	Number of contracts		Expiration date		Notional amount (000)		Value/ unrealized appreciation (depreciation)
Long Contracts:
ASX SPI 200 Index		4,450		Sep 2017	$	20,076	$	(80,653	)
Total							$	(80,653	)

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 August 31, 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	$	1,745,888,046		$	—	$	225	$	1,745,888,271
Money market funds		7,170,842			—		—		7,170,842
Total	$	1,753,058,888		$	—	$	225	$	1,753,059,113
Derivative financial instrumentsa:
Liabilities:
Futures contracts	$	(80,653	)	$	—	$	—	$	(80,653	)
Total	$	(80,653	)	$	—	$	—	$	(80,653	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

102 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI CANADA ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.51%
AEROSPACE & DEFENSE — 0.63%
Bombardier Inc. Class Ba		4,586,075	$	9,144,716
CAE Inc.		635,487		10,446,570
				19,591,286
AUTO COMPONENTS — 1.58%
Linamar Corp.		116,222		6,454,666
Magna International Inc. Class A		898,493		43,063,166
				49,517,832
BANKS — 28.36%
Bank of Montreal		1,503,829		107,484,041
Bank of Nova Scotia (The)		2,810,128		174,132,677
Canadian Imperial Bank of Commerce		1,001,528		83,804,828
National Bank of Canada		791,798		36,301,136
Royal Bank of Canada		3,441,879		254,431,382
Toronto-Dominion Bank (The)		4,319,918		231,061,776
				887,215,840
CAPITAL MARKETS — 4.35%
Brookfield Asset Management Inc. Class A		2,057,061		81,035,488
CI Financial Corp.		581,160		12,673,112
IGM Financial Inc.		224,733		7,329,477
Thomson Reuters Corp.		772,755		35,193,867
				136,231,944
CHEMICALS — 2.40%
Agrium Inc.		308,443		30,132,083
Methanex Corp.		213,464		10,864,317
Potash Corp. of Saskatchewan Inc.		1,964,196		34,043,453
				75,039,853
CONSTRUCTION & ENGINEERING — 0.49%
SNC-Lavalin Group Inc.		354,824		15,438,205
				15,438,205
CONTAINERS & PACKAGING — 0.49%
CCL Industries Inc. Class B		329,438		15,221,809
				15,221,809
DIVERSIFIED FINANCIAL SERVICES — 0.71%
Element Fleet Management Corp.		917,285		6,848,086
Onex Corp.		194,085		15,457,138
				22,305,224

Security	Shares		Value
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.08%
BCE Inc.		360,275	$	17,080,555
TELUS Corp.		462,189		16,666,452
				33,747,007
ELECTRIC UTILITIES — 1.66%
Emera Inc.		124,065		4,745,888
Fortis Inc./Canada		936,259		34,119,780
Hydro One Ltd.b		703,400		12,999,225
				51,864,893
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.52%
H&R REIT		326,686		5,565,713
RioCan REIT		375,533		7,128,762
Smart REIT		152,955		3,712,400
				16,406,875
FOOD & STAPLES RETAILING — 3.62%
Alimentation Couche-Tard Inc. Class B		981,498		46,681,336
Empire Co. Ltd. Class A		395,550		6,622,209
George Weston Ltd.		121,653		10,530,808
Jean Coutu Group PJC Inc. (The) Class A		191,749		3,405,982
Loblaw Companies Ltd.		520,265		28,105,722
Metro Inc.		547,505		18,000,523
				113,346,580
FOOD PRODUCTS — 0.64%
Saputo Inc.		596,323		20,052,624
				20,052,624
HOTELS, RESTAURANTS & LEISURE — 1.01%
Restaurant Brands International Inc.		521,201		31,689,852
				31,689,852
INSURANCE — 8.66%
Fairfax Financial Holdings Ltd.		65,951		34,143,549
Great-West Lifeco Inc.		695,403		19,185,635
Industrial Alliance Insurance & Financial Services Inc.		246,017		10,515,694
Intact Financial Corp.		307,901		25,280,422
Manulife Financial Corp.		4,596,917		89,940,079
Power Corp. of Canada		874,096		21,278,094
Power Financial Corp.		588,256		15,816,638
Sun Life Financial Inc.		1,430,666		54,716,199
				270,876,310

SCHEDULES OF INVESTMENTS 103

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2017

Security	Shares		Value
INTERNET SOFTWARE & SERVICES — 0.13%
Shopify Inc. Class Aa,c		35,840	$	3,944,901
				3,944,901
IT SERVICES — 0.83%
CGI Group Inc. Class Aa		510,257		25,855,734
				25,855,734
MEDIA — 0.70%
Shaw Communications Inc. Class B		982,876		21,840,818
				21,840,818
METALS & MINING — 7.66%
Agnico Eagle Mines Ltd.		529,693		27,043,389
Barrick Gold Corp.		2,721,747		48,823,202
First Quantum Minerals Ltd.		1,626,515		19,524,667
Franco-Nevada Corp.		418,216		34,077,724
Goldcorp Inc.		2,024,742		27,712,521
Kinross Gold Corp.a		2,952,942		13,401,587
Teck Resources Ltd. Class B		1,330,422		32,980,671
Turquoise Hill Resources Ltd.a,c		2,384,856		8,008,170
Wheaton Precious Metals Corp.		1,037,971		21,475,548
Yamana Gold Inc.		2,247,772		6,615,576
				239,663,055
MULTI-UTILITIES — 0.51%
Atco Ltd./Canada Class I		179,451		6,585,476
Canadian Utilities Ltd. Class A		297,136		9,223,955
				15,809,431
MULTILINE RETAIL — 1.43%
Canadian Tire Corp. Ltd. Class Ac		160,295		18,896,591
Dollarama Inc.		261,904		25,708,894
				44,605,485
OIL, GAS & CONSUMABLE FUELS — 21.08%
AltaGas Ltd.		393,670		8,694,494
ARC Resources Ltd.		831,657		10,878,704
Cameco Corp.		938,503		9,371,930
Canadian Natural Resources Ltd.		2,577,575		79,090,178
Cenovus Energy Inc.		2,391,799		18,638,386
Crescent Point Energy Corp.		1,275,591		8,719,294
Enbridge Inc.		3,410,546		135,796,177
Encana Corp.		2,274,915		21,138,791
Husky Energy Inc.a,c		832,588		9,702,182
Imperial Oil Ltd.		698,555		20,537,378
Inter Pipeline Ltd.		855,200		15,599,939
Keyera Corp.		437,178		12,636,754
Pembina Pipeline Corp.		927,294		29,769,558
Peyto Exploration & Development Corp.		389,659		6,660,333

Security	Shares		Value
PrairieSky Royalty Ltd.		491,292	$	11,497,115
Seven Generations Energy Ltd. Class Aa		571,223		8,661,176
Suncor Energy Inc.		3,874,849		120,935,467
Tourmaline Oil Corp.a		509,741		9,904,120
TransCanada Corp.		2,012,336		101,776,451
Veresen Inc.		738,923		10,367,023
Vermilion Energy Inc.		274,534		8,912,091
				659,287,541
PAPER & FOREST PRODUCTS — 0.26%
West Fraser Timber Co. Ltd.		157,217		8,124,498
				8,124,498
PHARMACEUTICALS — 0.33%
Valeant Pharmaceuticals International Inc.a,c		770,884		10,323,543
				10,323,543
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.16%
First Capital Realty Inc.		317,895		5,144,638
				5,144,638
ROAD & RAIL — 6.22%
Canadian National Railway Co.		1,785,075		144,115,886
Canadian Pacific Railway Ltd.		325,023		50,373,056
				194,488,942
SOFTWARE — 1.43%
Constellation Software Inc./Canada		44,999		24,921,639
Open Text Corp.		614,943		19,707,605
				44,629,244
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.35%
BlackBerry Ltd.a,c		1,179,708		10,886,717
				10,886,717
TEXTILES, APPAREL & LUXURY GOODS — 0.52%
Gildan Activewear Inc.		524,471		16,360,567
				16,360,567
TRADING COMPANIES & DISTRIBUTORS — 0.29%
Finning International Inc.		399,138		9,095,412
				9,095,412
WIRELESS TELECOMMUNICATION SERVICES — 1.41%
Rogers Communications Inc. Class B		846,793		44,029,859
				44,029,859
TOTAL COMMON STOCKS
(Cost: $3,497,459,111)				3,112,636,519

104 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2017

Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.42%
MONEY MARKET FUNDS — 1.42%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		43,796,579	$	43,809,718
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		412,255		412,255
				44,221,973
TOTAL SHORT-TERM INVESTMENTS
(Cost: $44,219,286)				44,221,973

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.93%
(Cost: $3,541,678,397)g	$	3,156,858,492
Other Assets, Less Liabilities — (0.93)%		(28,938,790	)
NET ASSETS — 100.00%	$	3,127,919,702

^a  Non-income earning security.

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

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

^d  Affiliated issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $3,616,475,008. Net unrealized depreciation was $459,569,244, of which $243,684,593 represented gross unrealized appreciation on investments and $703,253,837 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		7,205,616		36,590,963	b		—			43,796,579	$	43,809,718	$	(2,561	)	$	2,687	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,204,076		—			(791,821	)b		412,255		412,255		288			—		8,519
											$	44,221,973	$	(2,273	)	$	2,687	$	8,519

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description	Number of contracts		Expiration date		Notional amount (000)		Value/ unrealized appreciation (depreciation)
Long Contracts:
S&P/TSX 60 Index		20,400		Sep 2017	$	14,498	$	47,272
Total							$	47,272

SCHEDULES OF INVESTMENTS 105

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2017

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 August 31, 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	$	3,112,636,519	$	—	$	—	$	3,112,636,519
Money market funds		44,221,973		—		—		44,221,973
Total	$	3,156,858,492	$	—	$	—	$	3,156,858,492
Derivative financial instrumentsa:
Assets:
Futures contracts	$	47,272	$	—	$	—	$	47,272
Total	$	47,272	$	—	$	—	$	47,272

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

106 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI JAPAN ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.70%
AIR FREIGHT & LOGISTICS — 0.23%
Yamato Holdings Co. Ltd.		1,761,300	$	37,511,241
				37,511,241
AIRLINES — 0.26%
ANA Holdings Inc.		5,871,000		21,753,532
Japan Airlines Co. Ltd.		587,100		20,153,224
				41,906,756
AUTO COMPONENTS — 3.19%
Aisin Seiki Co. Ltd.		819,100		41,155,942
Bridgestone Corp.		3,131,200		134,255,250
Denso Corp.		2,348,400		113,856,645
Koito Manufacturing Co. Ltd.		587,100		36,540,387
NGK Spark Plug Co. Ltd.		782,800		14,900,654
NOK Corp.		391,400		8,798,143
Stanley Electric Co. Ltd.		782,800		25,960,567
Sumitomo Electric Industries Ltd.		3,718,300		58,176,564
Sumitomo Rubber Industries Ltd.		978,500		16,207,573
Toyoda Gosei Co. Ltd.		391,400		9,114,648
Toyota Industries Corp.		782,800		41,679,157
Yokohama Rubber Co. Ltd. (The)		587,100		10,855,429
				511,500,959
AUTOMOBILES — 8.71%
Honda Motor Co. Ltd.		8,416,500		235,609,999
Isuzu Motors Ltd.		2,740,200		35,802,359
Mazda Motor Corp.		2,739,800		40,302,891
Mitsubishi Motors Corp.		3,326,900		24,545,183
Nissan Motor Co. Ltd.		11,350,600		112,722,204
Subaru Corp.		2,957,600		103,620,803
Suzuki Motor Corp.		1,761,300		88,433,071
Toyota Motor Corp.		12,720,500		714,617,949
Yamaha Motor Co. Ltd.		1,369,900		38,709,695
				1,394,364,154
BANKS — 7.37%
Aozora Bank Ltd.		5,871,000		22,190,950
Bank of Kyoto Ltd. (The)		1,543,000		14,257,959
Chiba Bank Ltd. (The)		3,484,000		23,298,419
Chugoku Bank Ltd. (The)		782,800		10,540,701
Concordia Financial Group Ltd.		5,871,700		28,056,760
Fukuoka Financial Group Inc.		3,914,000		17,176,649
Hachijuni Bank Ltd. (The)		1,957,000		11,913,411

Security	Shares		Value
Hiroshima Bank Ltd. (The)		2,454,000	$	9,855,243
Japan Post Bank Co. Ltd.		1,957,000		24,893,694
Kyushu Financial Group Inc.		1,761,400		10,722,679
Mebuki Financial Group Inc.		4,813,880		17,058,088
Mitsubishi UFJ Financial Group Inc.		58,577,080		358,775,301
Mizuho Financial Group Inc.		117,224,380		201,409,506
Resona Holdings Inc.		10,763,500		53,651,246
Seven Bank Ltd.		2,739,800		10,380,671
Shinsei Bank Ltd.		7,828,000		12,517,972
Shizuoka Bank Ltd. (The)		2,551,000		22,274,314
Sumitomo Mitsui Financial Group Inc.		6,653,800		248,716,457
Sumitomo Mitsui Trust Holdings Inc.		1,589,432		54,964,367
Suruga Bank Ltd.		782,800		16,728,563
Yamaguchi Financial Group Inc.		922,000		10,421,297
				1,179,804,247
BEVERAGES — 1.44%
Asahi Group Holdings Ltd.		1,957,000		85,154,216
Coca-Cola Bottlers Japan Inc.		587,100		20,110,549
Kirin Holdings Co. Ltd.		4,190,300		95,048,918
Suntory Beverage & Food Ltd.		657,600		30,352,608
				230,666,291
BUILDING PRODUCTS — 1.39%
Asahi Glass Co. Ltd.		984,200		38,362,875
Daikin Industries Ltd.		1,185,500		118,431,515
LIXIL Group Corp.		1,369,900		35,896,707
TOTO Ltd.		782,800		29,765,746
				222,456,843
CAPITAL MARKETS — 1.23%
Daiwa Securities Group Inc.		7,828,000		42,802,929
Japan Exchange Group Inc.		2,544,100		43,295,469
Nomura Holdings Inc.		17,613,000		98,018,922
SBI Holdings Inc./Japan		978,510		13,584,983
				197,702,303
CHEMICALS — 4.86%
Air Water Inc.		782,800		14,424,118
Asahi Kasei Corp.		6,007,000		71,880,965
Daicel Corp.		1,369,900		17,438,033
Hitachi Chemical Co. Ltd.		587,100		15,875,065
JSR Corp.		978,500		19,043,676
Kaneka Corp.		1,370,000		10,655,279

SCHEDULES OF INVESTMENTS 107

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017

Security	Shares		Value
Kansai Paint Co. Ltd.		978,500	$	24,795,898
Kuraray Co. Ltd.		1,761,300		33,414,450
Mitsubishi Chemical Holdings Corp.		7,054,100		65,567,366
Mitsubishi Gas Chemical Co. Inc.		811,300		20,116,643
Mitsui Chemicals Inc.		4,239,000		25,343,104
Nippon Paint Holdings Co. Ltd.		782,800		26,671,815
Nissan Chemical Industries Ltd.		587,100		19,657,128
Nitto Denko Corp.		792,400		69,822,780
Shin-Etsu Chemical Co. Ltd.		1,897,700		167,665,226
Sumitomo Chemical Co. Ltd.		7,828,000		46,871,270
Taiyo Nippon Sanso Corp.		587,100		6,843,988
Teijin Ltd.		978,500		19,843,831
Toray Industries Inc.		7,240,900		68,882,630
Tosoh Corp.		2,797,000		32,783,300
				777,596,565
COMMERCIAL SERVICES & SUPPLIES — 1.00%
Dai Nippon Printing Co. Ltd.		2,545,000		30,014,628
Park24 Co. Ltd.		587,100		14,098,722
Secom Co. Ltd.		986,300		73,143,563
Sohgo Security Services Co. Ltd.		391,400		17,087,743
Toppan Printing Co. Ltd.		2,602,000		26,029,457
				160,374,113
CONSTRUCTION & ENGINEERING — 1.05%
JGC Corp.		978,500		15,709,699
Kajima Corp.		4,220,000		38,687,807
Obayashi Corp.		3,131,200		36,899,568
Shimizu Corp.		2,605,100		26,888,911
Taisei Corp.		4,992,000		50,028,857
				168,214,842
CONSTRUCTION MATERIALS — 0.14%
Taiheiyo Cement Corp.		5,871,000		22,617,699
				22,617,699
CONSUMER FINANCE — 0.22%
Acom Co. Ltd.a		1,957,000		8,001,544
AEON Financial Service Co. Ltd.		587,170		12,435,883
Credit Saison Co. Ltd.		782,800		14,189,406
				34,626,833

Security	Shares		Value
CONTAINERS & PACKAGING — 0.08%
Toyo Seikan Group Holdings Ltd.		782,800	$	12,894,934
				12,894,934
DIVERSIFIED CONSUMER SERVICES — 0.09%
Benesse Holdings Inc.		391,400		15,042,904
				15,042,904
DIVERSIFIED FINANCIAL SERVICES — 0.71%
Mitsubishi UFJ Lease & Finance Co. Ltd.		2,152,700		10,874,988
ORIX Corp.		6,458,100		103,243,930
				114,118,918
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.05%
Nippon Telegraph & Telephone Corp.		3,381,900		168,019,528
				168,019,528
ELECTRIC UTILITIES — 1.18%
Chubu Electric Power Co. Inc.		3,131,200		40,882,559
Chugoku Electric Power Co. Inc. (The)		1,369,900		15,782,602
Kansai Electric Power Co. Inc. (The)		3,522,600		49,289,515
Kyushu Electric Power Co. Inc.		2,152,700		25,270,656
Tohoku Electric Power Co. Inc.		2,152,700		29,417,234
Tokyo Electric Power Co. Holdings Inc.a		7,045,200		28,485,499
				189,128,065
ELECTRICAL EQUIPMENT — 1.84%
Fuji Electric Co. Ltd.		2,424,000		13,346,756
Mabuchi Motor Co. Ltd.		218,900		10,322,470
Mitsubishi Electric Corp.		9,393,600		138,864,139
Nidec Corp.		1,174,200		132,932,328
				295,465,693
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 5.72%
Alps Electric Co. Ltd.		979,200		26,868,835
Hamamatsu Photonics KK		782,800		24,218,009
Hirose Electric Co. Ltd.		195,760		27,071,299
Hitachi High-Technologies Corp.		391,400		13,958,250
Hitachi Ltd.		23,484,000		161,524,514
Keyence Corp.		473,152		246,162,852
Kyocera Corp.		1,565,600		93,884,790
Murata Manufacturing Co. Ltd.		928,100		142,006,215

108 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017

Security	Shares		Value
Nippon Electric Glass Co. Ltd.		391,500	$	14,868,890
Omron Corp.		978,500		49,076,140
Shimadzu Corp.		1,174,900		21,574,350
TDK Corp.		605,900		40,573,169
Yaskawa Electric Corp.		1,174,200		35,526,858
Yokogawa Electric Corp.		1,179,000		18,350,236
				915,664,407
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.12%
Daiwa House REIT Investment Corp.		6,265		15,301,036
Japan Prime Realty Investment Corp.		3,914		14,047,156
Japan Real Estate Investment Corp.		5,871		30,405,869
Japan Retail Fund Investment Corp.		12,106		22,251,897
Nippon Building Fund Inc.		6,278		33,369,344
Nippon Prologis REIT Inc.		7,828		16,984,612
Nomura Real Estate Master Fund Inc.		17,613		23,252,489
United Urban Investment Corp.		15,663		23,609,774
				179,222,177
FOOD & STAPLES RETAILING — 1.67%
Aeon Co. Ltd.		2,935,900		43,267,579
FamilyMart UNY Holdings Co. Ltd.		391,400		21,195,203
Lawson Inc.		239,700		16,094,703
Seven & I Holdings Co. Ltd.		3,718,380		147,471,640
Sundrug Co. Ltd.		391,400		16,198,683
Tsuruha Holdings Inc.		195,700		23,275,604
				267,503,412
FOOD PRODUCTS — 1.56%
Ajinomoto Co. Inc.		2,739,800		54,056,657
Calbee Inc.b		393,200		13,432,964
Kikkoman Corp.		706,900		22,126,753
MEIJI Holdings Co. Ltd.		587,156		46,733,478
NH Foods Ltd.		854,000		25,062,875
Nisshin Seifun Group Inc.		978,575		16,991,249
Nissin Foods Holdings Co. Ltd.		278,000		17,125,568
Toyo Suisan Kaisha Ltd.		391,400		14,456,124
Yakult Honsha Co. Ltd.		412,700		28,573,269
Yamazaki Baking Co. Ltd.		587,100		11,116,813
				249,675,750

Security	Shares		Value
GAS UTILITIES — 0.62%
Osaka Gas Co. Ltd.		8,892,000	$	34,748,766
Toho Gas Co. Ltd.		1,957,000		12,891,378
Tokyo Gas Co. Ltd.		9,785,000		51,850,009
				99,490,153
HEALTH CARE EQUIPMENT & SUPPLIES — 1.71%
CYBERDYNE Inc.a,b		391,400		5,142,326
Hoya Corp.		1,957,000		111,932,718
Olympus Corp.		1,376,200		47,453,017
Sysmex Corp.		782,800		48,222,642
Terumo Corp.		1,565,600		60,456,115
				273,206,818
HEALTH CARE PROVIDERS & SERVICES — 0.37%
Alfresa Holdings Corp.		978,500		18,394,662
Medipal Holdings Corp.		782,800		13,791,107
Miraca Holdings Inc.		274,300		12,448,923
Suzuken Co. Ltd./Aichi Japan		391,440		14,244,205
				58,878,897
HEALTH CARE TECHNOLOGY — 0.16%
M3 Inc.		978,500		25,400,459
				25,400,459
HOTELS, RESTAURANTS & LEISURE — 0.59%
McDonald’s Holdings Co. Japan Ltd.		391,400		17,372,243
Oriental Land Co. Ltd./Japan		1,026,600		77,036,974
				94,409,217
HOUSEHOLD DURABLES — 3.52%
Casio Computer Co. Ltd.		978,900		13,821,648
Iida Group Holdings Co. Ltd.		782,880		13,294,591
Nikon Corp.		1,565,600		25,789,867
Panasonic Corp.		10,763,515		143,321,200
Rinnai Corp.		195,700		16,981,056
Sekisui Chemical Co. Ltd.		1,964,000		36,581,865
Sekisui House Ltd.		2,935,500		50,783,137
Sharp Corp./Japana,b		7,294,000		21,870,071
Sony Corp.		6,115,500		240,986,039
				563,429,474
HOUSEHOLD PRODUCTS — 0.42%
Lion Corp.		1,100,600		21,860,000
Unicharm Corp.		1,957,000		45,999,991
				67,859,991

SCHEDULES OF INVESTMENTS 109

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017

Security	Shares		Value
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.13%
Electric Power Development Co. Ltd.		782,800	$	21,408,577
				21,408,577
INDUSTRIAL CONGLOMERATES — 0.52%
Keihan Holdings Co. Ltd.		1,957,000		11,788,943
Seibu Holdings Inc.		979,200		16,824,161
Toshiba Corp.a,b		19,570,000		54,410,503
				83,023,607
INSURANCE — 2.73%
Dai-ichi Life Holdings Inc.		5,285,000		84,994,094
Japan Post Holdings Co. Ltd.		2,152,700		26,718,047
MS&AD Insurance Group Holdings Inc.		2,348,440		77,434,933
Sompo Holdings Inc.		1,761,350		66,174,653
Sony Financial Holdings Inc.		782,800		12,389,947
T&D Holdings Inc.		2,739,800		37,552,138
Tokio Marine Holdings Inc.		3,326,900		132,701,172
				437,964,984
INTERNET & DIRECT MARKETING RETAIL — 0.52%
Rakuten Inc.		4,501,100		53,390,751
Start Today Co. Ltd.		979,200		30,427,621
				83,818,372
INTERNET SOFTWARE & SERVICES — 0.39%
DeNA Co. Ltd.		520,300		11,118,895
Kakaku.com Inc.		696,100		8,658,558
Mixi Inc.		200,800		10,691,332
Yahoo Japan Corp.		6,849,500		31,366,055
				61,834,840
IT SERVICES — 1.04%
Fujitsu Ltd.		9,785,000		72,467,322
Nomura Research Institute Ltd.		620,004		24,110,641
NTT Data Corp.		2,935,500		31,686,116
Obic Co. Ltd.		391,400		24,502,508
Otsuka Corp.		219,700		14,532,219
				167,298,806
LEISURE PRODUCTS — 0.81%
Bandai Namco Holdings Inc.		978,598		32,765,161
Sankyo Co. Ltd.		195,700		6,383,454
Sega Sammy Holdings Inc.		782,800		11,237,725
Shimano Inc.		391,400		52,845,757
Yamaha Corp.		782,800		27,240,814
				130,472,911

Security	Shares		Value
MACHINERY — 5.48%
Amada Holdings Co. Ltd.		1,565,600	$	17,169,537
FANUC Corp.		942,300		182,706,542
Hino Motors Ltd.		1,174,200		13,474,601
Hitachi Construction Machinery Co. Ltd.		587,100		16,563,197
Hoshizaki Corp.		250,200		21,755,533
IHI Corp.a		7,828,000		25,889,442
JTEKT Corp.		1,174,900		15,703,052
Kawasaki Heavy Industries Ltd.		7,828,000		24,040,196
Komatsu Ltd.		4,501,100		121,667,931
Kubota Corp.		5,088,200		88,024,103
Kurita Water Industries Ltd.		391,400		11,255,506
Makita Corp.		1,174,200		47,102,426
MINEBEA MITSUMI Inc.		1,957,000		32,130,647
Mitsubishi Heavy Industries Ltd.		15,656,000		59,872,891
Nabtesco Corp.		587,100		20,510,626
NGK Insulators Ltd.		1,204,000		22,458,768
NSK Ltd.		1,890,000		22,410,049
SMC Corp./Japan		278,200		95,320,026
Sumitomo Heavy Industries Ltd.		2,637,000		19,646,920
THK Co. Ltd.		587,700		19,597,120
				877,299,113
MARINE — 0.21%
Mitsui OSK Lines Ltd.		5,871,000		18,830,302
Nippon Yusen KKa		7,828,000		15,505,215
				34,335,517
MEDIA — 0.51%
Dentsu Inc.		1,035,400		43,274,941
Hakuhodo DY Holdings Inc.		1,174,900		15,980,604
Toho Co. Ltd./Tokyo		587,100		21,790,873
				81,046,418
METALS & MINING — 1.50%
Hitachi Metals Ltd.		978,500		13,060,299
JFE Holdings Inc.		2,544,150		50,208,012
Kobe Steel Ltd.a		1,571,200		18,901,225
Maruichi Steel Tube Ltd.		242,600		7,174,841
Mitsubishi Materials Corp.		587,100		21,044,062
Nippon Steel & Sumitomo Metal Corp.		3,718,770		88,678,102
Sumitomo Metal Mining Co. Ltd.		2,429,000		41,822,233
				240,888,774

110 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017

Security	Shares		Value
MULTILINE RETAIL — 0.72%
Don Quijote Holdings Co. Ltd.		587,100	$	22,270,966
Isetan Mitsukoshi Holdings Ltd.		1,565,660		16,103,281
J Front Retailing Co. Ltd.		1,174,200		16,376,495
Marui Group Co. Ltd.		978,500		13,682,641
Ryohin Keikaku Co. Ltd.		117,400		32,534,072
Takashimaya Co. Ltd.		1,522,000		13,953,280
				114,920,735
OIL, GAS & CONSUMABLE FUELS — 0.89%
Idemitsu Kosan Co. Ltd.		587,100		14,328,099
INPEX Corp.		4,696,800		44,851,325
JXTG Holdings Inc.		15,124,895		73,164,584
Showa Shell Sekiyu KK		991,900		10,859,890
				143,203,898
PAPER & FOREST PRODUCTS — 0.13%
Oji Holdings Corp.		3,914,000		20,519,517
				20,519,517
PERSONAL PRODUCTS — 1.60%
Kao Corp.		2,388,700		148,930,214
Kose Corp.		145,400		18,231,147
Pola Orbis Holdings Inc.		410,800		13,194,421
Shiseido Co. Ltd.		1,825,900		75,634,001
				255,989,783
PHARMACEUTICALS — 5.04%
Astellas Pharma Inc.		9,980,750		125,462,181
Chugai Pharmaceutical Co. Ltd.		1,174,200		47,689,206
Daiichi Sankyo Co. Ltd.		2,740,269		64,709,787
Eisai Co. Ltd.		1,369,900		70,872,348
Hisamitsu Pharmaceutical Co. Inc.		256,300		12,318,980
Kyowa Hakko Kirin Co. Ltd.		1,174,200		20,601,310
Mitsubishi Tanabe Pharma Corp.		1,174,200		28,805,561
Ono Pharmaceutical Co. Ltd.		1,965,900		40,028,911
Otsuka Holdings Co. Ltd.		1,957,000		78,752,980
Santen Pharmaceutical Co. Ltd.		1,761,300		27,301,270
Shionogi & Co. Ltd.		1,411,700		74,330,379
Sumitomo Dainippon Pharma Co. Ltd.		782,800		10,626,051
Taisho Pharmaceutical Holdings Co. Ltd.		142,700		11,124,532
Takeda Pharmaceutical Co. Ltd.		3,522,600		194,501,546
				807,125,042

Security	Shares		Value
PROFESSIONAL SERVICES — 0.66%
Recruit Holdings Co. Ltd.		5,283,900	$	105,188,305
				105,188,305
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.98%
Aeon Mall Co. Ltd.		587,100		10,540,701
Daito Trust Construction Co. Ltd.		333,100		58,971,956
Daiwa House Industry Co. Ltd.		2,739,800		95,766,042
Hulic Co. Ltd.		1,369,900		13,554,617
Mitsubishi Estate Co. Ltd.		6,117,300		105,271,363
Mitsui Fudosan Co. Ltd.		4,360,900		94,223,335
Nomura Real Estate Holdings Inc.		587,100		12,114,339
Sumitomo Realty & Development Co. Ltd.		1,957,000		59,158,086
Tokyo Tatemono Co. Ltd.		978,500		12,037,879
Tokyu Fudosan Holdings Corp.		2,553,000		15,216,864
				476,855,182
ROAD & RAIL — 3.90%
Central Japan Railway Co.		702,400		118,896,166
East Japan Railway Co.		1,610,400		147,563,911
Hankyu Hanshin Holdings Inc.		1,174,200		44,701,963
Keikyu Corp.		2,111,000		22,402,762
Keio Corp.		2,788,000		23,178,448
Keisei Electric Railway Co. Ltd.		609,400		16,583,255
Kintetsu Group Holdings Co. Ltd.		8,862,000		33,415,682
Kyushu Railway Co.		782,800		24,466,945
Nagoya Railroad Co. Ltd.		4,514,000		20,178,884
Nippon Express Co. Ltd.		3,914,000		26,991,877
Odakyu Electric Railway Co. Ltd.		1,369,900		26,511,784
Tobu Railway Co. Ltd.		4,665,000		25,770,671
Tokyu Corp.		2,568,900		37,345,448
West Japan Railway Co.		782,800		56,835,860
				624,843,656
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.21%
Disco Corp.		133,300		23,871,915
Renesas Electronics Corp.a		2,544,100		25,635,171
Rohm Co. Ltd.		437,500		34,026,894
Tokyo Electron Ltd.		782,852		109,966,309
				193,500,289

SCHEDULES OF INVESTMENTS 111

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017

Security	Shares		Value
SOFTWARE — 1.75%
Konami Holdings Corp.		444,300	$	23,131,374
LINE Corp.a,b		196,600		6,930,838
Nexon Co. Ltd.a		979,200		24,404,376
Nintendo Co. Ltd.		554,400		184,564,928
Oracle Corp. Japan		195,700		14,456,124
Trend Micro Inc./Japan		587,100		27,151,908
				280,639,548
SPECIALTY RETAIL — 1.28%
ABC-Mart Inc.		195,700		10,046,384
Fast Retailing Co. Ltd.		258,300		73,856,996
Hikari Tsushin Inc.		93,100		11,538,107
Nitori Holdings Co. Ltd.		391,400		60,384,990
Shimamura Co. Ltd.		108,100		13,181,010
USS Co. Ltd.		978,500		19,212,598
Yamada Denki Co. Ltd.		3,131,200		16,927,712
				205,147,797
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 2.56%
Brother Industries Ltd.		1,174,200		27,802,700
Canon Inc.		5,283,950		185,029,469
FUJIFILM Holdings Corp.		1,957,000		76,850,391
Konica Minolta Inc.		2,349,100		18,739,867
NEC Corp.		12,373,000		32,714,365
Ricoh Co. Ltd.		3,326,900		33,281,091
Seiko Epson Corp.		1,369,900		35,112,556
				409,530,439
TEXTILES, APPAREL & LUXURY GOODS — 0.07%
Asics Corp.		782,800		11,785,386
				11,785,386
TOBACCO — 1.14%
Japan Tobacco Inc.		5,341,600		182,680,196
				182,680,196
TRADING COMPANIES & DISTRIBUTORS — 3.83%
ITOCHU Corp.		7,240,900		118,159,698
Marubeni Corp.		8,023,700		52,154,779
MISUMI Group Inc.		1,369,900		35,112,556
Mitsubishi Corp.		7,436,600		171,860,732
Mitsui & Co. Ltd.		8,219,400		122,813,041
Sumitomo Corp.		5,871,000		83,029,361
Toyota Tsusho Corp.		978,500		30,094,698
				613,224,865

Security	Shares		Value
TRANSPORTATION INFRASTRUCTURE — 0.12%
Japan Airport Terminal Co. Ltd.		195,700	$	7,094,703
Kamigumi Co. Ltd.		1,106,000		12,229,711
				19,324,414
WIRELESS TELECOMMUNICATION SERVICES — 4.48%
KDDI Corp.		8,806,500		237,405,829
NTT DOCOMO Inc.		6,653,800		154,374,689
SoftBank Group Corp.		4,022,800		326,107,774
				717,888,292
TOTAL COMMON STOCKS
(Cost: $15,934,505,938)				15,970,512,906
SHORT-TERM INVESTMENTS — 0.29%
MONEY MARKET FUNDS — 0.29%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%c,d,e		40,539,970		40,552,132
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		5,281,032		5,281,032
				45,833,164
TOTAL SHORT-TERM INVESTMENTS
(Cost: $45,826,352)				45,833,164
TOTAL INVESTMENTS IN SECURITIES — 99.99%
(Cost: $15,980,332,290)f				16,016,346,070
Other Assets, Less Liabilities — 0.01%				1,342,829
NET ASSETS — 100.00%			$	16,017,688,899

^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  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 (including short positions and derivatives, if any) for federal income tax purposes was $16,201,644,044. Net unrealized depreciation was $184,655,742, of which $1,514,855,596 represented gross unrealized appreciation on investments and $1,699,511,338 represented gross unrealized depreciation on investments.

112 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		50,929,509		—			(10,389,539	)b		40,539,970	$	40,552,132	$	1,589	$	6,812	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,192,177		4,088,855	b		—			5,281,032		5,281,032		122		—		43,064
											$	45,833,164	$	1,711	$	6,812	$	43,064

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description	Number of contracts		Expiration date		Notional amount (000)		Value/ unrealized appreciation (depreciation)
Long Contracts:
TOPIX Index		3,060,000		Sep 2017	$	45,069	$	642,232
Total							$	642,232

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 August 31, 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	$	15,905,803,119	$	64,709,787	$	—	$	15,970,512,906
Money market funds		45,833,164		—		—		45,833,164
Total	$	15,951,636,283	$	64,709,787	$	—	$	16,016,346,070
Derivative financial instrumentsa:
Assets:
Futures contracts	$	642,232	$	—	$	—	$	642,232
Total	$	642,232	$	—	$	—	$	642,232

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 113

Schedule of Investments

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.81%
AIRLINES — 0.85%
Controladora Vuela Cia. de Aviacion SAB de CV Class Aa,b		5,083,700	$	6,414,971
Grupo Aeromexico SAB de CVa		2,404,043		4,873,438
				11,288,409
AUTO COMPONENTS — 0.24%
Rassini SAB de CV		678,499		3,148,709
				3,148,709
BANKS — 13.33%
Banregio Grupo Financiero SAB de CV		1,813,000		11,732,837
Grupo Financiero Banorte SAB de CV Series O		15,208,478		104,036,562
Grupo Financiero Inbursa SAB de CV Series Ob		16,392,192		27,500,052
Grupo Financiero Interacciones SA de CV Series O		955,800		5,728,016
Grupo Financiero Santander Mexico SAB de CV Series B		13,104,650		27,080,235
				176,077,702
BEVERAGES — 12.25%
Arca Continental SAB de CV		3,079,729		22,601,931
Coca-Cola Femsa SAB de CV Series L		2,373,447		19,513,329
Fomento Economico Mexicano SAB de CV		11,925,510		119,725,155
				161,840,415
BUILDING PRODUCTS — 0.36%
Elementia SAB de CVa,b,c		3,350,190		4,716,234
				4,716,234
CAPITAL MARKETS — 0.46%
Bolsa Mexicana de Valores SAB de CV		3,481,687		6,038,291
				6,038,291
CHEMICALS — 1.55%
Mexichem SAB de CV		7,664,418		20,478,298
				20,478,298
CONSTRUCTION MATERIALS — 6.16%
Cemex SAB de CV CPOa		86,737,029		81,321,668
				81,321,668

Security	Shares		Value
CONSUMER FINANCE — 1.59%
Credito Real SAB de CV SOFOM ERb		2,230,174	$	4,174,362
Gentera SAB de CV		7,532,706		11,593,167
Unifin Financiera SAB de CV SOFOM ENR		1,519,348		5,244,437
				21,011,966
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.93%
Axtel SAB de CV CPOa,b		11,390,777		2,658,716
Telesites SAB de CVa,b		12,110,146		9,668,956
				12,327,672
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.13%
Concentradora Fibra Danhos SA de CV		2,340,790		4,099,034
Concentradora Fibra Hotelera Mexicana SA de CV		5,020,290		4,120,960
Fibra Uno Administracion SA de CV		18,113,700		32,410,593
Macquarie Mexico Real Estate Management SA de CV		6,716,100		9,043,857
PLA Administradora Industrial S. de RL de CVb		6,621,500		11,294,194
Prologis Property Mexico SA de CV		3,320,800		6,782,181
				67,750,819
FOOD & STAPLES RETAILING — 6.59%
Grupo Comercial Chedraui SA de CV		2,943,000		6,324,327
La Comer SAB de CVa,b		4,837,855		4,828,965
Wal-Mart de Mexico SAB de CV		31,111,233		75,915,755
				87,069,047
FOOD PRODUCTS — 5.59%
Gruma SAB de CV Series B		1,564,450		23,017,216
Grupo Bimbo SAB de CV Series A		11,579,104		28,157,179
Grupo Herdez SAB de CV		2,207,044		5,421,407
Grupo Lala SAB de CVb		4,935,800		8,790,018
Industrias Bachoco SAB de CV Series B		1,587,400		8,451,467
				73,837,287
GAS UTILITIES — 1.47%
Infraestructura Energetica Nova SAB de CV		3,549,400		19,347,419
				19,347,419

114 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2017

Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 1.49%
Alsea SAB de CV		4,127,966	$	15,066,372
Hoteles City Express SAB de CVa,b		3,715,200		4,590,128
				19,656,500
HOUSEHOLD DURABLES — 0.24%
Consorcio ARA SAB de CV		9,121,819		3,116,908
				3,116,908
HOUSEHOLD PRODUCTS — 1.64%
Kimberly-Clark de Mexico SAB de CV Series A		10,987,654		21,639,009
				21,639,009
INDUSTRIAL CONGLOMERATES — 3.20%
Alfa SAB de CV		20,073,651		28,191,131
Grupo Carso SAB de CV Series A1		3,471,833		14,074,143
				42,265,274
INSURANCE — 0.32%
Qualitas Controladora SAB de CV		2,400,000		4,194,639
				4,194,639
MACHINERY — 0.23%
Grupo Rotoplas SAB de CVb		1,850,600		3,088,011
				3,088,011
MEDIA — 4.72%
Grupo Televisa SAB		11,448,647		59,379,890
TV Azteca SAB de CV CPOb		15,341,939		2,943,958
				62,323,848
METALS & MINING — 7.23%
Grupo Mexico SAB de CV Series B		17,795,886		58,851,161
Industrias CH SAB de CV Series Ba,b		1,283,783		6,160,775
Industrias Penoles SAB de CV		998,293		26,019,388
Minera Frisco SAB de CV Series A1a,b		6,437,803		4,453,752
				95,485,076
MORTGAGE REAL ESTATE INVESTMENT — 0.29%
Concentradora Hipotecaria SAPI de CV		3,105,700		3,891,110
				3,891,110
MULTILINE RETAIL — 0.96%
El Puerto de Liverpool SAB de CV Series C1b		1,417,810		12,742,411
				12,742,411

Security	Shares		Value
PHARMACEUTICALS — 0.65%
Genomma Lab Internacional SAB de CV Series Ba		6,671,193	$	8,575,390
				8,575,390
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.79%
Corp Inmobiliaria Vesta SAB de CVb		4,549,149		6,707,811
Grupo GICSA SA de CVa,b		5,458,566		3,662,984
				10,370,795
TRANSPORTATION INFRASTRUCTURE — 6.74%
Grupo Aeroportuario del Centro Norte SAB de CV		2,015,492		12,229,050
Grupo Aeroportuario del Pacifico SAB de CV Series B		2,541,449		28,121,315
Grupo Aeroportuario del Sureste SAB de CV Series B		1,466,555		30,010,367
Promotora y Operadora de Infraestructura SAB de CV		1,696,025		18,642,929
				89,003,661
WIRELESS TELECOMMUNICATION SERVICES — 14.81%
America Movil SAB de CV Series L		209,703,018		195,551,425
				195,551,425
TOTAL COMMON STOCKS
(Cost: $1,567,368,302)				1,318,157,993
SHORT-TERM INVESTMENTS — 2.13%
MONEY MARKET FUNDS — 2.13%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		27,657,667		27,665,964
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		431,254		431,254
				28,097,218
TOTAL SHORT-TERM INVESTMENTS
(Cost: $28,090,746)				28,097,218

SCHEDULES OF INVESTMENTS 115

Schedule of Investments (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 101.94%
(Cost: $1,595,459,048)g	$	1,346,255,211
Other Assets, Less Liabilities — (1.94)%		(25,613,616	)
NET ASSETS — 100.00%	$	1,320,641,595

CPO  —  Certificates of Participation (Ordinary)

^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 issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $1,637,442,968. Net unrealized depreciation was $291,187,757, of which $14,486,443 represented gross unrealized appreciation on investments and $305,674,200 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		19,391,449		8,266,218	b		—			27,657,667	$	27,665,964	$	(2,087	)	$	6,472	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,875,747		—			(1,444,493	)b		431,254		431,254		61			—		4,023
											$	28,097,218	$	(2,026	)	$	6,472	$	4,023

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	1,318,157,993	$	—	$	—	$	1,318,157,993
Money market funds		28,097,218		—		—		28,097,218
Total	$	1,346,255,211	$	—	$	—	$	1,346,255,211

See notes to financial statements.

116 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 98.12%
AEROSPACE & DEFENSE — 0.67%
Hanwha Techwin Co. Ltd.a,b		256,207	$	8,815,919
Korea Aerospace Industries Ltd. Class A		402,973		16,528,469
				25,344,388
AIR FREIGHT & LOGISTICS — 0.42%
Hyundai Glovis Co. Ltd.		115,346		15,855,472
				15,855,472
AIRLINES — 0.26%
Korean Air Lines Co. Ltd.a		331,823		9,769,886
				9,769,886
AUTO COMPONENTS — 3.17%
Hankook Tire Co. Ltd.		433,669		22,691,088
Hanon Systems		1,284,402		13,156,122
Hyundai Mobis Co. Ltd.		364,802		76,350,898
Hyundai Wia Corp.b		125,637		7,799,388
				119,997,496
AUTOMOBILES — 3.90%
Hyundai Motor Co.		819,622		102,125,657
Kia Motors Corp.		1,441,239		45,310,325
				147,435,982
BANKS — 9.51%
BNK Financial Group Inc.		1,668,095		14,586,216
DGB Financial Group Inc.		1,137,245		11,094,089
Hana Financial Group Inc.		1,616,273		70,235,347
Industrial Bank of Korea		1,529,944		20,284,376
KB Financial Group Inc.		2,133,507		104,821,114
Shinhan Financial Group Co. Ltd.		2,284,419		105,347,453
Woori Bank		2,025,297		33,407,701
				359,776,296
BEVERAGES — 0.18%
Lotte Chilsung Beverage Co. Ltd.b		5,063		6,946,134
				6,946,134
BIOTECHNOLOGY — 1.53%
Celltrion Inc.a,b		440,870		45,001,895
Medy-Tox Inc.		25,407		12,822,919
				57,824,814
BUILDING PRODUCTS — 0.36%
KCC Corp.		38,266		13,438,574
				13,438,574

Security	Shares		Value
CAPITAL MARKETS — 1.63%
Korea Investment Holdings Co. Ltd.		261,112	$	15,213,780
Mirae Asset Daewoo Co. Ltd.		2,332,625		20,996,935
NH Investment & Securities Co. Ltd.		963,839		11,795,830
Samsung Securities Co. Ltd.		419,669		13,603,141
				61,609,686
CHEMICALS — 4.57%
Hanwha Chemical Corp.		661,900		20,750,413
Hyosung Corp.		130,458		18,337,702
Kumho Petrochemical Co. Ltd.b		130,450		9,116,229
LG Chem Ltd.		248,303		83,457,642
Lotte Chemical Corp.		87,520		31,007,662
OCI Co. Ltd.b		115,748		10,090,483
				172,760,131
COMMERCIAL SERVICES & SUPPLIES — 0.45%
KEPCO Plant Service & Engineering Co. Ltd.		165,419		6,711,528
S-1 Corp.		129,839		10,328,626
				17,040,154
CONSTRUCTION & ENGINEERING — 1.52%
Daelim Industrial Co. Ltd.		178,386		13,257,136
Daewoo Engineering & Construction Co. Ltd.a		1,092,520		6,811,295
GS Engineering & Construction Corp.a,b		352,143		8,900,386
Hyundai Development Co. Engineering & Construction		368,601		12,307,403
Hyundai Engineering & Construction Co. Ltd.		451,995		16,294,428
				57,570,648
CONSUMER FINANCE — 0.21%
Samsung Card Co. Ltd.		246,544		8,111,726
				8,111,726
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.15%
KT Corp.		205,716		5,692,036
				5,692,036
ELECTRIC UTILITIES — 1.41%
Korea Electric Power Corp.		1,398,226		53,196,076
				53,196,076
ELECTRICAL EQUIPMENT — 0.17%
Doosan Heavy Industries & Construction Co. Ltd.b		395,357		6,311,126
				6,311,126

SCHEDULES OF INVESTMENTS 117

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2017

Security	Shares		Value
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.59%
LG Display Co. Ltd.		1,305,800	$	36,072,783
LG Innotek Co. Ltd.		96,870		15,850,049
Samsung Electro-Mechanics Co. Ltd.		337,318		30,213,833
Samsung SDI Co. Ltd.		308,349		53,734,106
				135,870,771
FOOD & STAPLES RETAILING — 1.30%
BGF retail Co. Ltd.		151,486		12,252,149
Dongsuh Cos. Inc.		288,891		6,789,297
E-MART Inc.		116,853		23,213,083
GS Retail Co. Ltd.		194,342		6,954,327
				49,208,856
FOOD PRODUCTS — 1.10%
CJ CheilJedang Corp.		48,779		15,681,436
Lotte Confectionery Co. Ltd.b		43,156		7,558,806
Orion Corp./Republic of Koreaa		149,224		11,553,082
Ottogi Corp.b		10,082		6,804,188
				41,597,512
GAS UTILITIES — 0.21%
Korea Gas Corp.a		201,310		8,087,392
				8,087,392
HOTELS, RESTAURANTS & LEISURE — 0.56%
Kangwon Land Inc.		691,285		21,150,525
				21,150,525
HOUSEHOLD DURABLES — 2.12%
Coway Co. Ltd.		308,582		27,037,869
Hanssem Co. Ltd.		67,730		10,211,156
LG Electronics Inc.		596,725		43,129,734
				80,378,759
INDUSTRIAL CONGLOMERATES — 4.62%
CJ Corp.		91,663		14,388,392
Hanwha Corp.		310,836		13,548,767
LG Corp.		536,667		39,978,741
Samsung C&T Corp.		416,572		47,656,782
SK Holdings Co. Ltd.		250,389		59,399,661
				174,972,343
INSURANCE — 3.59%
Dongbu Insurance Co. Ltd.		302,825		20,195,495
Hanwha Life Insurance Co. Ltd.		1,631,360		10,590,240
Hyundai Marine & Fire Insurance Co. Ltd.		411,974		16,879,389

Security	Shares		Value
Samsung Fire & Marine Insurance Co. Ltd.		183,694	$	45,043,802
Samsung Life Insurance Co. Ltd.		421,324		43,156,192
				135,865,118
INTERNET SOFTWARE & SERVICES — 3.20%
Kakao Corp.b		192,719		21,022,027
NAVER Corp.		149,294		99,961,839
				120,983,866
IT SERVICES — 0.79%
Samsung SDS Co. Ltd.		202,144		30,027,598
				30,027,598
LIFE SCIENCES TOOLS & SERVICES — 0.68%
Samsung Biologics Co. Ltd.a,b,c		102,741		25,785,476
				25,785,476
MACHINERY — 1.22%
Doosan Bobcat Inc.		242,001		8,187,601
Hyundai Heavy Industries Co. Ltd.a,b		175,100		23,059,906
Samsung Heavy Industries Co. Ltd.a,b		1,575,018		14,945,630
				46,193,137
MARINE — 0.22%
Pan Ocean Co. Ltd.a		1,440,351		8,213,424
				8,213,424
MEDIA — 0.46%
Cheil Worldwide Inc.		501,070		8,443,003
CJ E&M Corp.		133,328		8,986,279
				17,429,282
METALS & MINING — 4.43%
Hyundai Steel Co.		459,107		23,492,793
Korea Zinc Co. Ltd.		50,582		23,146,783
POSCO		397,510		121,093,194
				167,732,770
MULTILINE RETAIL — 0.92%
Hyundai Department Store Co. Ltd.		107,100		9,175,115
Lotte Shopping Co. Ltd.b		72,819		16,596,739
Shinsegae Inc.		52,983		9,068,570
				34,840,424
OIL, GAS & CONSUMABLE FUELS — 2.87%
GS Holdings Corp.		316,617		19,823,661
S-Oil Corp.		266,313		29,640,193
SK Innovation Co. Ltd.		354,173		59,206,820
				108,670,674

118 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2017

Security	Shares		Value
PERSONAL PRODUCTS — 2.89%
AmorePacific Corp.b		176,557	$	45,094,374
AmorePacific Groupb		168,180		19,985,917
LG Household & Health Care Ltd.		51,990		44,262,504
				109,342,795
PHARMACEUTICALS — 0.89%
Hanmi Pharm Co. Ltd.a,b		38,151		13,635,024
Hanmi Science Co. Ltd.a,b		110,150		8,742,839
Yuhan Corp.		55,780		11,179,744
				33,557,607
ROAD & RAIL — 0.21%
CJ Logistics Corp.a,b		54,230		8,127,767
				8,127,767
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 5.57%
Hyundai Robotics Co. Ltd.a		55,160		21,670,699
SK Hynix Inc.		3,107,210		189,033,882
				210,704,581
SOFTWARE — 1.27%
NCsoft Corp.		100,278		34,193,766
Netmarble Games Corp.a,b,c		101,935		13,966,795
				48,160,561
SPECIALTY RETAIL — 0.33%
Hotel Shilla Co. Ltd.b		230,326		12,643,827
				12,643,827
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 22.24%
Samsung Electronics Co. Ltd.		409,781		841,657,322
				841,657,322
TOBACCO — 1.70%
KT&G Corp.		633,494		64,326,945
				64,326,945
TRADING COMPANIES & DISTRIBUTORS — 0.34%
Posco Daewoo Corp.		346,554		6,500,193
SK Networks Co. Ltd.b		1,020,734		6,345,641
				12,845,834
WIRELESS TELECOMMUNICATION SERVICES — 0.69%
SK Telecom Co. Ltd.		116,876		26,275,334
				26,275,334
TOTAL COMMON STOCKS
(Cost: $1,670,622,208)				3,713,331,125

Security	Shares		Value
PREFERRED STOCKS — 1.79%
AUTOMOBILES — 0.86%
Hyundai Motor Co., Preference Shares		145,830	$	12,467,198
Hyundai Motor Co. Series 2, Preference Shares		222,581		20,134,145
				32,601,343
CHEMICALS — 0.34%
LG Chem Ltd., Preference Shares		55,687		12,988,366
				12,988,366
PERSONAL PRODUCTS — 0.49%
AmorePacific Corp., Preference Shares		64,159		9,758,131
LG Household & Health Care Ltd., Preference Shares		16,176		8,607,307
				18,365,438
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.10%
Samsung Electronics Co. Ltd., Preference Shares		2,164		3,617,542
				3,617,542
TOTAL PREFERRED STOCKS
(Cost: $38,534,692)				67,572,689
SHORT-TERM INVESTMENTS — 3.85%
MONEY MARKET FUNDS — 3.85%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		140,876,705		140,918,968
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		4,974,415		4,974,415
				145,893,383
TOTAL SHORT-TERM INVESTMENTS
(Cost: $145,873,542)				145,893,383

SCHEDULES OF INVESTMENTS 119

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 103.76%
(Cost: $1,855,030,442)g	$	3,926,797,197
Other Assets, Less Liabilities — (3.76)%		(142,159,434	)
NET ASSETS — 100.00%	$	3,784,637,763

^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 issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $2,410,993,429. Net unrealized appreciation was $1,515,803,768, of which $2,123,134,609 represented gross unrealized appreciation on investments and $607,330,841 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		129,185,165		11,691,540	b		—		140,876,705	$	140,918,968	$	4,709	$	19,841	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		4,717,300		257,115	b		—		4,974,415		4,974,415		57		—		41,681
										$	145,893,383	$	4,766	$	19,841	$	41,681

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	3,713,331,125	$	—	$	—	$	3,713,331,125
Preferred stocks		67,572,689		—		—		67,572,689
Money market funds		145,893,383		—		—		145,893,383
Total	$	3,926,797,197	$	—	$	—	$	3,926,797,197

See notes to financial statements.

120 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017

	iShares Edge MSCI Min Vol Global ETF			iShares MSCI Australia ETF			iShares MSCI Canada ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	3,177,379,890		$	1,913,517,259		$	3,497,459,111
Affiliated (Note 2)		59,378,772			7,170,523			44,219,286
Total cost of investments in securities	$	3,236,758,662		$	1,920,687,782		$	3,541,678,397
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	3,658,187,253		$	1,745,888,271		$	3,112,636,519
Affiliated (Note 2)		59,392,577			7,170,842			44,221,973
Foreign currency, at valueb		4,297,134			5,152,054			8,742,512
Cash pledged to broker for futures contracts		—			1,098,053			581,383
Receivables:
Investment securities sold		—			1,203,195			32,332,006
Dividends and interest		9,129,572			14,063,402			5,827,597
Futures variation margin		—			—			47,272
Tax reclaims		2,023,250			—			—
Total Assets		3,733,029,786			1,774,575,817			3,204,389,262
LIABILITIES
Payables:
Investment securities purchased		—			879,928			31,222,452
Collateral for securities on loan (Note 1)		56,897,542			6,987,414			43,809,592
Capital shares redeemed		—			—			170,758
Futures variation margin		—			80,653			—
Foreign taxes (Note 1)		147,771			—			—
Investment advisory fees (Note 2)		610,541			715,496			1,266,758
Total Liabilities		57,655,854			8,663,491			76,469,560
NET ASSETS	$	3,675,373,932		$	1,765,912,326		$	3,127,919,702
Net assets consist of:
Paid-in capital	$	3,288,648,124		$	2,169,727,056		$	4,043,163,286
Undistributed (distributions in excess of) net investment income		12,801,276			6,908,701			7,575,046
Accumulated net realized loss		(106,957,724	)		(243,234,009	)		(538,045,474	)
Net unrealized appreciation (depreciation)		480,882,256			(167,489,422	)		(384,773,156	)
NET ASSETS	$	3,675,373,932		$	1,765,912,326		$	3,127,919,702
Shares outstandingc		45,300,000			78,200,000			112,400,000
Net asset value per share	$	81.13		$	22.58		$	27.83

^a  Securities on loan with values of $54,508,615, $6,689,886 and $42,238,300, respectively. See Note 1.

^b  Cost of foreign currency: $4,292,028, $6,118,630 and $9,348,081, respectively.

^c  $0.001 par value, number of shares authorized: 500 million, 627.8 million and 340.2 million, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 121

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017

	iShares MSCI Japan ETF			iShares MSCI Mexico Capped ETF			iShares MSCI South Korea Capped ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	15,934,505,938		$	1,567,368,302		$	1,709,156,900
Affiliated (Note 2)		45,826,352			28,090,746			145,873,542
Total cost of investments in securities	$	15,980,332,290		$	1,595,459,048		$	1,855,030,442
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	15,970,512,906		$	1,318,157,993		$	3,780,903,814
Affiliated (Note 2)		45,833,164			28,097,218			145,893,383
Foreign currency, at valueb		21,522,724			2,700,659			—
Foreign currency pledged to broker for futures contracts, at valueb		658,726			—			—
Receivables:
Investment securities sold		35,366,705			15,203,004			20,228,474
Due from custodian (Note 4)		—			71,708			—
Dividends and interest		20,598,466			715,400			546,506
Futures variation margin		642,232			—			—
Total Assets		16,095,134,923			1,364,945,982			3,947,572,177
LIABILITIES
Payables:
Investment securities purchased		30,291,956			16,103,186			20,111,823
Collateral for securities on loan (Note 1)		40,543,731			27,661,580			140,894,418
Investment advisory fees (Note 2)		6,610,337			539,621			1,928,173
Total Liabilities		77,446,024			44,304,387			162,934,414
NET ASSETS	$	16,017,688,899		$	1,320,641,595		$	3,784,637,763
Net assets consist of:
Paid-in capital	$	17,199,504,435		$	1,848,477,134		$	2,862,052,603
Undistributed (distributions in excess of) net investment income		(26,048,656	)		7,154,017			(81,351,030	)
Accumulated net realized loss		(1,192,558,997	)		(285,622,096	)		(1,067,833,954	)
Net unrealized appreciation (depreciation)		36,792,117			(249,367,460	)		2,071,770,144
NET ASSETS	$	16,017,688,899		$	1,320,641,595		$	3,784,637,763
Shares outstandingc		293,550,000	d		23,300,000			55,500,000
Net asset value per share	$	54.57	d	$	56.68		$	68.19

^a  Securities on loan with values of $38,716,306, $26,031,757 and $133,746,749, respectively. See Note 1.

^b  Cost of foreign currency including currency pledged to broker for futures contracts: $22,281,027, $2,696,900 and $  —, respectively.

^c  $0.001 par value, number of shares authorized: 2.5246 billion, 255 million and 200 million, respectively.

^d  Shares outstanding and net asset value per share reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.

122 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017

	iShares Edge MSCI Min Vol Global ETF			iShares MSCI Australia ETF			iShares MSCI Canada ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	83,299,846		$	79,030,390		$	77,883,650
Dividends — affiliated (Note 2)		29,119			7,465			8,519
Interest — unaffiliated		—			835			27
Securities lending income — affiliated — net (Note 2)		950,471			32,559			82,904
		84,279,436			79,071,249			77,975,100
Less: Other foreign taxes (Note 1)		(188,016	)		—			(30,490	)
Total investment income		84,091,420			79,071,249			77,944,610
EXPENSES
Investment advisory fees (Note 2)		10,283,210			8,765,631			15,654,293
Proxy fees		67,310			41,422			66,762
Total expenses		10,350,520			8,807,053			15,721,055
Less investment advisory fees waived (Note 2)		(3,893,046	)		—			—
Net expenses		6,457,474			8,807,053			15,721,055
Net investment income		77,633,946			70,264,196			62,223,555
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(26,626,733	)		(23,621,694	)		(113,329,778	)
Investments — affiliated (Note 2)		16,088			(190	)		(2,561	)
In-kind redemptions — unaffiliated		101,489,581			101,252,528			251,306,238
Futures contracts		—			1,617,158			993,580
Foreign currency transactions		(488,591	)		(252,344	)		327,225
Realized gain distributions from affiliated funds		242			53			288
Net realized gain		74,390,587			78,995,511			139,294,992
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		141,378,809			126,918,481			156,860,561
Investments — affiliated (Note 2)		13,805			319			2,687
Futures contracts		—			(236,915	)		(318,333	)
Translation of assets and liabilities in foreign currencies		129,055			527,565			139,874
Net change in unrealized appreciation/depreciation		141,521,669			127,209,450			156,684,789
Net realized and unrealized gain		215,912,256			206,204,961			295,979,781
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	293,546,202		$	276,469,157		$	358,203,336

^a  Net of foreign withholding tax of $4,512,840, $479,534 and $13,737,118, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 123

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017

	iShares MSCI Japan ETF			iShares MSCI Mexico Capped ETF			iShares MSCI South Korea Capped ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	300,652,682		$	31,861,308		$	50,888,121
Dividends — affiliated (Note 2)		43,064			4,023			41,681
Interest — unaffiliated		—			—			58
Securities lending income — affiliated — net (Note 2)		3,382,165			703,004			4,908,542
		304,077,911			32,568,335			55,838,402
Less: Other foreign taxes (Note 1)		—			—			937
Total investment income		304,077,911			32,568,335			55,839,339
EXPENSES
Investment advisory fees (Note 2)		76,064,253			6,962,143			20,609,453
Proxy fees		344,241			28,311			69,215
Total expenses		76,408,494			6,990,454			20,678,668
Net investment income		227,669,417			25,577,881			35,160,671
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(197,802,651	)		(75,908,002	)		164,460,523
Investments — affiliated (Note 2)		1,589			(2,087	)		4,709
In-kind redemptions — unaffiliated		644,849,506			68,249,782			—
Futures contracts		24,447,380			—			—
Foreign currency transactions		(15,913,555	)		(218,589	)		1,863,380
Realized gain distributions from affiliated funds		122			61			57
Net realized gain (loss)		455,582,391			(7,878,835	)		166,328,669
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		1,309,943,854			189,192,269			392,350,106
Investments — affiliated (Note 2)		6,812			6,472			19,841
Futures contracts		(26,487	)		—			—
Translation of assets and liabilities in foreign currencies		330,724			76,604			282,147
Net change in unrealized appreciation/depreciation		1,310,254,903			189,275,345			392,652,094
Net realized and unrealized gain		1,765,837,294			181,396,510			558,980,763
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,993,506,711		$	206,974,391		$	594,141,434

^a  Net of foreign withholding tax of $33,367,209, $1,103,631 and $9,393,027, respectively.

See notes to financial statements.

124 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares Edge MSCI Min Vol Global ETF						iShares MSCI Australia ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	77,633,946		$	64,576,560		$	70,264,196		$	62,740,787
Net realized gain (loss)		74,390,587			30,872,741			78,995,511			(22,265,463	)
Net change in unrealized appreciation/depreciation		141,521,669			252,873,179			127,209,450			137,229,771
Net increase in net assets resulting from operations		293,546,202			348,322,480			276,469,157			177,705,095
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(82,291,396	)		(59,015,735	)		(83,656,742	)		(59,291,158	)
Total distributions to shareholders		(82,291,396	)		(59,015,735	)		(83,656,742	)		(59,291,158	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		684,634,417			1,225,242,572			624,267,864			683,182,993
Cost of shares redeemed		(488,203,636	)		(362,492,946	)		(719,870,284	)		(360,957,779	)
Net increase (decrease) in net assets from capital share transactions		196,430,781			862,749,626			(95,602,420	)		322,225,214
INCREASE IN NET ASSETS		407,685,587			1,152,056,371			97,209,995			440,639,151
NET ASSETS
Beginning of year		3,267,688,345			2,115,631,974			1,668,702,331			1,228,063,180
End of year	$	3,675,373,932		$	3,267,688,345		$	1,765,912,326		$	1,668,702,331
Undistributed net investment income included in net assets at end of year	$	12,801,276		$	16,401,105		$	6,908,701		$	11,677,105
SHARES ISSUED AND REDEEMED
Shares sold		8,700,000			16,900,000			29,400,000			35,400,000
Shares redeemed		(6,500,000	)		(5,100,000	)		(33,400,000	)		(19,000,000	)
Net increase (decrease) in shares outstanding		2,200,000			11,800,000			(4,000,000	)		16,400,000

See notes to financial statements.

FINANCIAL STATEMENTS 125

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Canada ETF						iShares MSCI Japan ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017a			Year ended August 31, 2016a
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	62,223,555		$	49,872,015		$	227,669,417		$	264,486,625
Net realized gain (loss)		139,294,992			(61,752,843	)		455,582,391			179,035,668
Net change in unrealized appreciation/depreciation		156,684,789			237,092,373			1,310,254,903			(335,550,040	)
Net increase in net assets resulting from operations		358,203,336			225,211,545			1,993,506,711			107,972,253
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(60,198,481	)		(46,033,306	)		(288,645,468	)		(261,611,433	)
Total distributions to shareholders		(60,198,481	)		(46,033,306	)		(288,645,468	)		(261,611,433	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,022,753,433			1,347,709,468			4,661,723,572			3,254,831,968
Cost of shares redeemed		(1,290,632,177	)		(360,548,208	)		(4,364,075,580	)		(8,233,815,497	)
Net increase (decrease) in net assets from capital share transactions		(267,878,744	)		987,161,260			297,647,992			(4,978,983,529	)
INCREASE (DECREASE) IN NET ASSETS		30,126,111			1,166,339,499			2,002,509,235			(5,132,622,709	)
NET ASSETS
Beginning of year		3,097,793,591			1,931,454,092			14,015,179,664			19,147,802,373
End of year	$	3,127,919,702		$	3,097,793,591		$	16,017,688,899		$	14,015,179,664
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	7,575,046		$	4,768,460		$	(26,048,656	)	$	41,500,905
SHARES ISSUED AND REDEEMED
Shares sold		38,600,000			57,300,000			113,100,000			69,900,000
Shares redeemed		(48,500,000	)		(15,400,000	)		(105,300,000	)		(178,050,000	)
Net increase (decrease) in shares outstanding		(9,900,000	)		41,900,000			7,800,000			(108,150,000	)

^a  Share transactions reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.

126 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Mexico Capped ETF						iShares MSCI South Korea Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	25,577,881		$	22,572,568		$	35,160,671		$	35,496,600
Net realized gain (loss)		(7,878,835	)		(105,424,948	)		166,328,669			(72,441,943	)
Net change in unrealized appreciation/depreciation		189,275,345			13,777,983			392,652,094			641,389,742
Net increase (decrease) in net assets resulting from operations		206,974,391			(69,074,397	)		594,141,434			604,444,399
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(21,098,710	)		(31,509,179	)		(34,948,193	)		(75,311,690	)
Total distributions to shareholders		(21,098,710	)		(31,509,179	)		(34,948,193	)		(75,311,690	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,161,693,065			1,471,785,156			330,287,930			456,857,078
Cost of shares redeemed		(2,344,445,161	)		(1,260,625,873	)		(557,813,596	)		(693,973,908	)
Net increase (decrease) in net assets from capital share transactions		(182,752,096	)		211,159,283			(227,525,666	)		(237,116,830	)
INCREASE IN NET ASSETS		3,123,585			110,575,707			331,667,575			292,015,879
NET ASSETS
Beginning of year		1,317,518,010			1,206,942,303			3,452,970,188			3,160,954,309
End of year	$	1,320,641,595		$	1,317,518,010		$	3,784,637,763		$	3,452,970,188
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	7,154,017		$	(3,342,828	)	$	(81,351,030	)	$	(111,718,391	)
SHARES ISSUED AND REDEEMED
Shares sold		45,200,000			28,200,000			4,750,000			8,900,000
Shares redeemed		(48,000,000	)		(25,000,000	)		(9,950,000	)		(13,850,000	)
Net increase (decrease) in shares outstanding		(2,800,000	)		3,200,000			(5,200,000	)		(4,950,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 127

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares Edge MSCI Min Vol Global ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	75.82		$	67.59		$	68.25		$	59.99		$	55.65
Income from investment operations:
Net investment incomea		1.84			1.79			1.70			1.72			1.68
Net realized and unrealized gain (loss)b		5.40			8.07			(0.89	)		8.18			4.20
Total from investment operations		7.24			9.86			0.81			9.90			5.88
Less distributions from:
Net investment income		(1.93	)		(1.63	)		(1.47	)		(1.64	)		(1.54	)
Total distributions		(1.93	)		(1.63	)		(1.47	)		(1.64	)		(1.54	)
Net asset value, end of year	$	81.13		$	75.82		$	67.59		$	68.25		$	59.99
Total return		9.75	%		14.76	%		1.15	%		16.70	%		10.69	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,675,374		$	3,267,688		$	2,115,632		$	1,283,012		$	1,007,760
Ratio of expenses to average net assets		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of expenses to average net assets prior to waived fees		0.32	%		0.32	%		0.33	%		0.33	%		0.34	%
Ratio of net investment income to average net assets		2.40	%		2.49	%		2.41	%		2.67	%		2.83	%
Portfolio turnover ratec		24	%		24	%		22	%		24	%		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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 24%, 23%, 22%, 23% and 13%, respectively. See Note 4.

See notes to financial statements.

128 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Australia ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	20.30		$	18.66		$	27.15		$	23.61		$	23.39
Income from investment operations:
Net investment incomea		0.84			0.84			1.23			1.10			1.02
Net realized and unrealized gain (loss)b		2.45			1.59			(8.49	)		3.43			0.64
Total from investment operations		3.29			2.43			(7.26	)		4.53			1.66
Less distributions from:
Net investment income		(1.01	)		(0.79	)		(1.23	)		(0.99	)		(1.44	)
Total distributions		(1.01	)		(0.79	)		(1.23	)		(0.99	)		(1.44	)
Net asset value, end of year	$	22.58		$	20.30		$	18.66		$	27.15		$	23.61
Total return		16.70	%		13.36	%		(27.31	)%		19.76	%		7.06	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,765,912		$	1,668,702		$	1,228,063		$	2,047,113		$	1,916,849
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		3.90	%		4.41	%		5.37	%		4.28	%		4.05	%
Portfolio turnover ratec		4	%		7	%		9	%		6	%		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 129

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Canada ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	25.33		$	24.02		$	32.93		$	27.34		$	27.52
Income from investment operations:
Net investment incomea		0.51			0.51			0.54			0.59			0.60
Net realized and unrealized gain (loss)b		2.47			1.29			(8.85	)		5.62			(0.10	)
Total from investment operations		2.98			1.80			(8.31	)		6.21			0.50
Less distributions from:
Net investment income		(0.48	)		(0.49	)		(0.60	)		(0.62	)		(0.68	)
Total distributions		(0.48	)		(0.49	)		(0.60	)		(0.62	)		(0.68	)
Net asset value, end of year	$	27.83		$	25.33		$	24.02		$	32.93		$	27.34
Total return		11.88	%		7.73	%		(25.48	)%		23.00	%		1.84	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,127,920		$	3,097,794		$	1,931,454		$	3,786,906		$	3,428,223
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		1.93	%		2.18	%		1.92	%		1.97	%		2.12	%
Portfolio turnover ratec		6	%		4	%		5	%		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.

130 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Japan ETF
	Year ended Aug. 31, 2017a			Year ended Aug. 31, 2016a			Year ended Aug. 31, 2015a			Year ended Aug. 31, 2014a			Year ended Aug. 31, 2013a
Net asset value, beginning of year	$	49.05		$	48.61		$	47.32		$	43.87		$	36.09
Income from investment operations:
Net investment incomeb		0.49			0.72			0.60			0.60			0.52
Net realized and unrealized gainc		5.96			0.44			1.22			3.53			7.85
Total from investment operations		6.45			1.16			1.82			4.13			8.37
Less distributions from:
Net investment income		(0.93	)		(0.72	)		(0.53	)		(0.68	)		(0.59	)
Total distributions		(0.93	)		(0.72	)		(0.53	)		(0.68	)		(0.59	)
Net asset value, end of year	$	54.57		$	49.05		$	48.61		$	47.32		$	43.87
Total return		13.31	%		2.44	%		3.84	%		9.39	%		23.46	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	16,017,689		$	14,015,180		$	19,147,802		$	14,729,189		$	10,461,942
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		1.45	%		1.53	%		1.20	%		1.31	%		1.18	%
Portfolio turnover rated		4	%		4	%		2	%		2	%		4	%

^a  Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

^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  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 131

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Mexico Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	50.48		$	52.70		$	71.51		$	61.93		$	60.96
Income from investment operations:
Net investment incomea		0.88			0.93			0.68			1.06			0.75
Net realized and unrealized gain (loss)b		6.10			(1.82	)		(18.56	)		9.61			0.85
Total from investment operations		6.98			(0.89	)		(17.88	)		10.67			1.60
Less distributions from:
Net investment income		(0.78	)		(1.33	)		(0.93	)		(1.09	)		(0.63	)
Total distributions		(0.78	)		(1.33	)		(0.93	)		(1.09	)		(0.63	)
Net asset value, end of year	$	56.68		$	50.48		$	52.70		$	71.51		$	61.93
Total return		14.03	%		(1.68	)%		(25.10	)%		17.42	%		2.53	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,320,642		$	1,317,518		$	1,206,942		$	3,275,152		$	2,217,052
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		1.79	%		1.82	%		1.10	%		1.61	%		1.09	%
Portfolio turnover ratec		8	%		8	%		13	%		19	%		32	%

^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.

132 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI South Korea Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	56.89		$	48.15		$	66.42		$	57.67		$	55.97
Income from investment operations:
Net investment incomea		0.64			0.56			0.46			0.25			0.23
Net realized and unrealized gain (loss)b		11.31			9.38			(18.07	)		9.40			1.83
Total from investment operations		11.95			9.94			(17.61	)		9.65			2.06
Less distributions from:
Net investment income		(0.65	)		(1.20	)		(0.66	)		(0.90	)		(0.36	)
Total distributions		(0.65	)		(1.20	)		(0.66	)		(0.90	)		(0.36	)
Net asset value, end of year	$	68.19		$	56.89		$	48.15		$	66.42		$	57.67
Total return		21.28	%		20.92	%		(26.58	)%		16.83	%		3.65	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,784,638		$	3,452,970		$	3,160,954		$	4,891,619		$	3,376,516
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		1.05	%		1.09	%		0.81	%		0.39	%		0.40	%
Portfolio turnover ratec		16	%		22	%		24	%		13	%		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 include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 6%, 10%, 10%, 10% and 11%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 133

Notes to Financial Statements

iSHARES^®, INC.

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to Articles of Incorporation as subsequently amended and restated.

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

iShares ETF	Diversification Classification
Edge MSCI Min Vol Global	Diversified
MSCI Australia	Non-diversified
MSCI Canada	Diversified
MSCI Japan	Diversified
MSCI Mexico Capped	Non-diversified
MSCI South Korea Capped	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 Company’s organizational documents, the Funds’ officers and directors 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 Directors of the Company (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.

134 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

• Futures contract notional values are determined based on 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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 Company’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 to valuation techniques are categorized into a fair value 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.

NOTES TO FINANCIAL STATEMENTS 135

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Company’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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax 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 August 31, 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.

136 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original 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 137

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
Edge MSCI Min Vol Global
Citigroup Global Markets Inc.	$	4,180,812	$	4,180,812	$	—
Credit Suisse Securities (USA) LLC		1,969,583		1,969,583		—
Deutsche Bank AG		1,278,772		1,278,772		—
Deutsche Bank Securities Inc.		656,528		656,528		—
Goldman Sachs & Co.		9,802,245		9,802,245		—
HSBC Bank PLC		45,755		45,755		—
Jefferies LLC		1,894		1,894		—
JPMorgan Securities LLC		7,598,900		7,598,900		—
JPMorgan Securities PLC		1,217,446		1,217,446		—
Merrill Lynch, Pierce, Fenner & Smith		8,792,776		8,792,776		—
Morgan Stanley & Co. International PLC		827,973		827,973		—
Morgan Stanley & Co. LLC		10,498,309		10,498,309		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		531,706		531,706		—
Nomura Securities International Inc.		777,161		777,161		—
State Street Bank & Trust Company		5,883,493		5,883,493		—
UBS Securities LLC		445,262		445,262		—
	$	54,508,615	$	54,508,615	$	—
MSCI Australia
Barclays Capital Inc.	$	3,517,482	$	3,517,482	$	—
UBS Securities LLC		3,172,404		3,172,404		—
	$	6,689,886	$	6,689,886	$	—
MSCI Canada
Credit Suisse Securities (USA) LLC	$	7,066,093	$	7,066,093	$	—
Goldman Sachs & Co.		25,194,109		25,194,109		—
Merrill Lynch, Pierce, Fenner & Smith		18,628		18,628		—
Morgan Stanley & Co. LLC		4,726,213		4,726,213		—
State Street Bank & Trust Company		5,080,403		5,080,403		—
UBS AG		152,854		152,854		—
	$	42,238,300	$	42,238,300	$	—
MSCI Japan
Barclays Capital Inc.	$	1,357,213	$	1,357,213	$	—
Citigroup Global Markets Inc.		954,786		954,786		—
Credit Suisse Securities (USA) LLC		5,578,395		5,578,395		—
Goldman Sachs & Co.		5,367,767		5,367,767		—
Merrill Lynch, Pierce, Fenner & Smith		16,001,624		16,001,624		—
Morgan Stanley & Co. LLC		8,519,203		8,519,203		—
Nomura Securities International Inc.		9,144		9,144		—
State Street Bank & Trust Company		928,174		928,174		—
	$	38,716,306	$	38,716,306	$	—

138 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
MSCI Mexico Capped
Credit Suisse Securities (USA) LLC	$	589,088	$	589,088	$	—
Deutsche Bank Securities Inc.		38,378		38,378		—
Goldman Sachs & Co.		7,929,754		7,929,754		—
Morgan Stanley & Co. LLC		17,143,566		17,143,566		—
UBS Securities LLC		330,971		330,971		—
	$	26,031,757	$	26,031,757	$	—
MSCI South Korea Capped
BNP Paribas Prime Brokerage Inc.	$	317,488	$	317,488	$	—
Citigroup Global Markets Inc.		43,335,662		43,335,662		—
Credit Suisse Securities (USA) LLC		7,366,152		7,366,152		—
Deutsche Bank Securities Inc.		6,437,551		6,437,551		—
Goldman Sachs & Co.		33,614,193		33,614,193		—
HSBC Bank PLC		679,108		679,108		—
JPMorgan Securities LLC		396,861		396,861		—
Macquarie Bank Limited		3,658,158		3,658,158		—
Morgan Stanley & Co. LLC		37,941,576		37,941,576		—
	$	133,746,749	$	133,746,749	$	—

^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.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Company, 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 directors).

For its investment advisory services to the iShares Edge MSCI Min Vol Global 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
	0.350	%	First $30 billion
	0.320		Over $30 billion, up to and including $60  billion
	0.280		Over $60 billion, up to and including $90  billion
	0.252		Over $90 billion, up to and including $120 billiona
	0.227		Over $120 billiona

^a Break level added or amended effective July 1, 2017.

NOTES TO FINANCIAL STATEMENTS 139

Notes to Financial Statements (Continued)

iSHARES^®, INC.

In addition, the iShares Edge MSCI Min Vol Global ETF may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). The total of the investment advisory fee and acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive through December 31, 2023 any portion of its investment advisory fee for the Fund necessary to limit total annual operating expenses to 0.20% of average daily net assets.

For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Japan and iShares MSCI Mexico Capped 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
	0.59	%	First $7 billion
	0.54		Over $7 billion, up to and including $11 billion
	0.49		Over $11 billion, up to and including $24 billion
	0.44		Over $24 billion, up to and including $48 billion
	0.40		Over $48 billion, up to and including $72 billion
	0.36		Over $72 billion, up to and including $96 billiona
	0.32		Over $96 billiona

^a  Break level added or amended effective July 1, 2017.

For its investment advisory services to the iShares MSCI South Korea Capped 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
	0.74	%	First $2 billion
	0.69		Over $2 billion, up to and including $4 billion
	0.64		Over $4 billion, up to and including $8 billion
	0.57		Over $8 billion, up to and including $16 billion
	0.51		Over $16 billion, up to and including $24 billion
	0.48		Over $24 billion, up to and including $32 billion
	0.45		Over $32 billion

The U.S. Securities and Exchange Commission 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 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

140 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 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 August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Edge MSCI Min Vol Global	$	245,849
MSCI Australia		8,954
MSCI Canada		26,793
MSCI Japan		793,698
MSCI Mexico Capped		176,754
MSCI South Korea Capped		1,121,053

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 August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
Edge MSCI Min Vol Global	$	106,539,039	$	44,433,771
MSCI Australia		3,094,430		5,735,234
MSCI Japan		55,625,584		27,440,774
MSCI South Korea Capped		24,001,756		5,085,653

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 directors and officers of the Company are also officers of BTC and/or BFA.

NOTES TO FINANCIAL STATEMENTS 141

Notes to Financial Statements (Continued)

iSHARES^®, INC.

3. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
Edge MSCI Min Vol Global	$	809,307,324	$	789,468,503
MSCI Australia		95,435,256		62,528,480
MSCI Canada		226,062,007		199,117,529
MSCI Japan		574,767,839		624,259,718
MSCI Mexico Capped		146,171,156		118,864,540
MSCI South Korea Capped		547,043,826		749,775,880

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Edge MSCI Min Vol Global	$	614,584,779	$	439,908,551
MSCI Australia		582,421,403		714,108,532
MSCI Canada		978,097,817		1,276,326,666
MSCI Japan		4,483,728,662		4,186,916,459
MSCI Mexico Capped		2,132,387,727		2,335,377,061

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 Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company 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 Company’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.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.

The Board authorized a one-for-four reverse stock split for the iShares MSCI Japan ETF, effective after the close of trading on November 4, 2016. The impact of the stock split was to decrease the number of shares outstanding by a factor of four, while increasing the NAV per share by a factor of four, resulting in no effect on the net assets of the Fund. The financial statements for the Fund have been adjusted to reflect the reverse stock split.

142 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

5. FUTURES CONTRACTS

Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements 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 notional value of the contract. Such receipts or payments are known as margin variation 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 notional value of the contract at the time it was opened and the notional value at the time it was closed. Losses may arise if the notional 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 August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Assets
	iShares MSCI Canada ETF		iShares MSCI Japan ETF
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation (depreciation)a	$	47,272	$	642,232

^a Represents cumulative appreciation of futures contracts as reported in the schedules of investments.

Liabilities
	iShares MSCI Australia ETF
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation (depreciation)b	$	80,653

^b Represents cumulative depreciation of futures contracts as reported in the schedules of investments.

NOTES TO FINANCIAL STATEMENTS 143

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the realized and unrealized gains (losses) on futures contracts held during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)
	iShares MSCI Australia ETF			iShares MSCI Canada ETF			iShares MSCI Japan ETF
Equity contracts:
Futures contracts	$	1,617,158		$	993,580		$	24,447,380
	Net Change in Unrealized Appreciation/Depreciation
	iShares MSCI Australia ETF			iShares MSCI Canada ETF			iShares MSCI Japan ETF
Equity contracts:
Futures contracts	$	(236,915	)	$	(318,333	)	$	(26,487	)

The following table shows the average quarter-end balances of open futures contracts for the year ended August 31, 2017:

	iShares MSCI Australia ETF		iShares MSCI Canada ETF		iShares MSCI Japan ETF
Average value of contracts purchased	$	17,449,280	$	10,625,735	$	85,363,645

6. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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.

144 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. 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 issuers located in a single country, it assumes the risk that economic, political and social conditions in that country 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.

7. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Company’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 August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies, the expiration of

NOTES TO FINANCIAL STATEMENTS 145

Notes to Financial Statements (Continued)

iSHARES^®, INC.

capital loss carryforwards, 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
Edge MSCI Min Vol Global	$	96,384,727		$	1,057,621		$	(97,442,348	)
MSCI Australia		46,516,026			8,624,142			(55,140,168	)
MSCI Canada		183,617,082			781,512			(184,398,594	)
MSCI Japan		424,091,976			(6,573,510	)		(417,518,466	)
MSCI Mexico Capped		503,991			6,017,674			(6,521,665	)
MSCI South Korea Capped		(60,990,953	)		30,154,883			30,836,070

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
Edge MSCI Min Vol Global
Ordinary income	$	82,291,396	$	59,015,735
MSCI Australia
Ordinary income	$	83,656,742	$	59,291,158
MSCI Canada
Ordinary income	$	60,198,481	$	46,033,306
MSCI Japan
Ordinary income	$	288,645,468	$	261,611,433
MSCI Mexico Capped
Ordinary income	$	21,098,710	$	31,509,179
MSCI South Korea Capped
Ordinary income	$	34,948,193	$	75,311,690

146 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 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
Edge MSCI Min Vol Global	$	13,577,122	$	(86,612,072	)	$	459,760,758		$	386,725,808
MSCI Australia		18,437,394		(196,433,666	)		(225,818,458	)		(403,814,730	)
MSCI Canada		8,999,212		(464,673,029	)		(459,569,767	)		(915,243,584	)
MSCI Japan		1,927,845		(999,223,744	)		(184,519,637	)		(1,181,815,536	)
MSCI Mexico Capped		7,674,574		(244,158,733	)		(291,351,380	)		(527,835,539	)
MSCI South Korea Capped		38,622,494		(631,844,491	)		1,515,807,157			922,585,160

^a  The difference between book-basis and tax-basis unrealized gains (losses) was attributable primarily to the characterization of corporate actions, the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

As of August 31, 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
Edge MSCI Min Vol Global	$	86,612,072	$	—	$	—	$	86,612,072
MSCI Australia		160,958,058		23,348,244		12,127,364		196,433,666
MSCI Canada		380,840,433		68,928,677		14,903,919		464,673,029
MSCI Japan		686,418,449		173,577,101		139,228,194		999,223,744
MSCI Mexico Capped		218,505,597		2,789,471		22,863,665		244,158,733
MSCI South Korea Capped		326,749,122		226,591,665		78,503,704		631,844,491

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

For the year ended August 31, 2017, the iShares MSCI South Korea Capped ETF utilized $21,661,340 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 August 31, 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. LEGAL PROCEEDINGS

On June 16, 2016, investors (the “Plaintiffs”) 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 putative 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

NOTES TO FINANCIAL STATEMENTS 147

Notes to Financial Statements (Continued)

iSHARES^®, INC.

one that occurred on May 6, 2010. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

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, except as noted below, except as noted below.

At a meeting held on September 14-15, 2017, the Board approved a line of credit for the iShares Edge MSCI Min Vol Global ETF. The Fund, along with certain other iShares funds, will be a party to a $275 million credit agreement with State Street Bank and Trust Company, which will expire on October 24, 2018. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement is expected to be effective on or around October 25, 2017.

Effective September 1, 2017, the iShares MSCI Canada ETF will track a new underlying index, the MSCI Canada Custom Capped Index, and will cease to track the MSCI Canada Index. The change to a capped benchmark is being implemented to seek to reduce tracking error and improve the investor experience.

148 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares Edge MSCI Min Vol Global ETF, iShares MSCI Australia ETF,

iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico Capped ETF and

iShares MSCI South Korea Capped 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 Edge MSCI Min Vol Global ETF, iShares MSCI Australia ETF, iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico Capped ETF and iShares MSCI South Korea Capped ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 149

Notes:

150 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 MSCI 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-801-0817

AUGUST 31, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares Adaptive Currency Hedged MSCI Eurozone ETF  |  DEZU  |  BATS

^Ø  iShares Currency Hedged MSCI Eurozone ETF  |  HEZU  |  NYSE Arca

^Ø  iShares Currency Hedged MSCI Germany ETF  |  HEWG  |  NASDAQ

^Ø  iShares Currency Hedged MSCI Italy ETF  |  HEWI  |  NYSE Arca

^Ø  iShares Currency Hedged MSCI Spain ETF  |  HEWP  |  NYSE Arca

^Ø  iShares Currency Hedged MSCI Switzerland ETF  |  HEWL  |  NYSE Arca

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	18
Shareholder Expenses	18
Schedules of Investments	19
iShares Adaptive Currency Hedged MSCI Eurozone ETF	19
iShares Currency Hedged MSCI Eurozone ETF	21
iShares Currency Hedged MSCI Germany ETF	24
iShares Currency Hedged MSCI Italy ETF	27
iShares Currency Hedged MSCI Spain ETF	29
iShares Currency Hedged MSCI Switzerland ETF	31
Financial Statements	33
Financial Highlights	40
Notes to Financial Statements	46
Report of Independent Registered Public Accounting Firm	60
Tax Information	61
Board Review and Approval of Investment Advisory Contract	62
Supplemental Information	69
Trustee and Officer Information	73
Additional Financial Information	77
Schedules of Investments	78
iShares MSCI Eurozone ETF	78
iShares MSCI Germany ETF	83
iShares MSCI Italy Capped ETF	87
iShares MSCI Spain Capped ETF	89
iShares MSCI Switzerland Capped ETF	91
Financial Statements	93
Financial Highlights	100
Notes to Financial Statements	105
Report of Independent Registered Public Accounting Firm	118

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended August 31, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 17.11% in U.S. dollar terms for the reporting period.

The primary factor behind the robust performance of global equity markets was improving global economic growth, driven largely by the continuation of accommodative monetary policies from many of the world’s central banks. Signs of stronger economic activity in Europe emerged as the European Central Bank (“ECB”) maintained policies such as quantitative easing and negative interest rates. Economic growth rates in China and Japan, the largest economies in Asia, also increased during the reporting period, reflecting efforts by the People’s Bank of China (“PBOC”) and the Bank of Japan (“BOJ”) to stimulate economic activity. Stronger economic growth led several central banks to consider reducing their economic stimulus measures. For example, late in the reporting period, the ECB discussed the possibility of tapering its quantitative easing program, while the PBOC increased short-term interest rates during the first half of 2017.

On a regional basis, European equity markets posted the best returns among developed markets, advancing by approximately 20% in U.S. dollar terms for the reporting period. European stocks benefited from improving economic conditions and stronger corporate earnings. In addition, election outcomes in France and the Netherlands eased investor concerns about nationalist presidential candidates and their opposition to the European Union (“E.U.”). Currency fluctuations also contributed meaningfully to European equity performance in U.S. dollar terms as the euro appreciated by approximately 6% against the U.S. dollar during the reporting period. The best-performing European stock markets included Austria, Italy, and Spain, while Ireland and Belgium posted the weakest returns.

Equity markets in the Asia-Pacific region gained about 16% in U.S. dollar terms for the reporting period, led by Singapore and Hong Kong. Japanese stocks also posted strong returns, benefiting from improving consumer spending and employment trends that contributed to the ongoing recovery in the Japanese economy. However, equity market returns in Japan were hindered by a decline in the Japanese yen, which depreciated by approximately 6% against the U.S. dollar.

The U.S. stock market returned approximately 15% for the reporting period. Despite mixed U.S. economic data, U.S. stocks advanced initially in anticipation of pro-business fiscal policies from the new presidential administration. Although the administration struggled to implement its fiscal agenda, stocks continued to move higher as better global economic conditions led to a notable improvement in corporate earnings growth, particularly for multinational companies with significant operations outside of the U.S. U.S. stocks advanced despite three short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the reporting period, which increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to start reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017.

Emerging markets stocks outperformed those in developed markets, returning more than 23% in U.S. dollar terms for the reporting period. Emerging markets in Eastern Europe were the best performers, led by Poland, Greece, and Hungary. Equity markets in the Middle East trailed for the reporting period amid continued geopolitical conflict in the region.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® ADAPTIVE CURRENCY HEDGED MSCI EUROZONE ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		22.75%		22.70%		22.76%		22.75%		22.70%		22.76%
Since Inception		12.65%		12.76%		12.96%		21.82%		22.02%		22.32%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/5/16. The first day of secondary market trading was 1/7/16.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,150.30	$	0.16	$	1,000.00	$	1,025.10	$	0.15		0.03%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

The iShares Adaptive Currency Hedged MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries which use the euro as their official currency while dynamically hedging currency risk for a U.S. dollar based investor, as represented by the MSCI EMU Adaptive Hedge to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Eurozone ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 22.75%, net of fees, while the total return for the Index was 22.76%.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® ADAPTIVE CURRENCY HEDGED MSCI EUROZONE ETF

The Eurozone economy posted strong growth during the reporting period, though inflation remained low enough for the ECB to keep interest rates at zero percent, stating that a considerable amount of monetary accommodation remained necessary. Household consumption, which historically accounts for more than half of the Eurozone’s average economic growth, was the largest driver of the economy, as consumer spending reached a record high in the second quarter of 2017. A declining unemployment rate helped increase consumer spending.

The equity markets in France and Germany, which together represented approximately 62% of the Index on average during the reporting period, were the leading contributors to the Index’s return in U.S. dollar terms. French stocks rose significantly after the election of the country’s new president, Emmanuel Macron, while the German market was helped by a combination of low interest rates, low unemployment, and stable public finances.

Spain, the Netherlands, and Italy also contributed to the Index’s performance. In Spain, household consumption increased as households benefited from robust job creation and credit growth. The Netherlands’ economy benefited from strong employment growth and increased consumer optimism. Italy’s economic acceleration was strengthened by business and consumer confidence levels that approached multi-year highs.

From a sector standpoint, the financials sector, representing about 20% of the Index on average, contributed the most to the Index’s return for the reporting period in U.S. dollar terms. Banks and insurance stocks contributed the most to the sector, as many companies in these industries restructured and streamlined in order to increase income in the low interest rate environment. The industrials and consumer discretionary sectors were also strong contributors to the Index’s return.

In terms of currency performance, the euro appreciated by 6% against the U.S. dollar during the reporting period, reflecting an improved economy in Europe and reduced political risk following the presidential election in France. Strong export growth helped support the euro, as foreigners purchased the currency in order to buy goods originating in the Eurozone.

The euro’s positive performance meant hedging activity detracted from the Index’s return for the reporting period. The adaptive currency hedging component of the Index employs a hedge ratio that modifies currency exposure based on the difference in interest rates, relative valuation, currency momentum, and currency volatility. The adaptive hedge fluctuated within a range of approximately 25% to 75% of the Index’s currency exposure during the reporting period, allowing the Index to benefit somewhat from the euro’s appreciation against the U.S. dollar.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total  Investments²

Financials	20.84	%
Industrials	14.53
Consumer Discretionary	13.36
Consumer Staples	10.38
Health Care	8.51
Materials	8.14
Information Technology	7.89
Utilities	5.29
Energy	5.08
Telecommunication Services	4.18
Real Estate	1.80
TOTAL	100.00	%

TEN LARGEST COUNTRIES¹

As of 8/31/17

Country Percentage of
Total  Investments²

France	31.90	%
Germany	28.91
Netherlands	11.43
Spain	10.75
Italy	7.48
Belgium	3.63
Finland	3.10
Ireland	1.34
Austria	0.78
Portugal	0.48
TOTAL	99.80	%

¹  Table shown is for the iShares MSCI Eurozone ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI EUROZONE ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.13%		19.05%		19.16%		19.13%		19.05%		19.16%
Since Inception		7.37%		7.34%		7.80%		25.08%		24.98%		26.63%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 7/9/14. 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 18 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,079.00	$	0.16	$	1,000.00	$	1,025.10	$	0.15		0.03%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

The iShares Currency Hedged MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries which use the euro as their official currency while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI EMU 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Eurozone ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 19.13%, net of fees, while the total return for the Index was 19.16%.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI EUROZONE ETF

The Eurozone economy posted strong growth during the reporting period, though inflation remained low enough for the ECB to keep interest rates at zero percent, stating that a considerable amount of monetary accommodation remained necessary. Household consumption, which historically accounts for more than half of the Eurozone’s average economic growth, was the largest driver of the economy, as consumer spending reached a record high in the second quarter of 2017. A declining unemployment rate helped increase consumer spending.

The equity markets in France and Germany, which together represented approximately 62% of the Index on average during the reporting period, were the leading contributors to the Index’s return when measured in U.S. dollars. French stocks rose significantly after the election of the country’s new president, Emmanuel Macron, while the German market was helped by a combination of low interest rates, low unemployment, and stable public finances.

Spain, the Netherlands, and Italy also contributed to the Index’s performance. In Spain, private consumption increased as households benefited from robust job creation and credit growth. The Netherlands’ economy benefited from strong employment growth and increased consumer optimism. Italy’s economic acceleration was strengthened by business and consumer confidence levels that approached multi-year highs.

From a sector standpoint, the financials sector, representing about 20% of the Index on average, contributed the most to the Index’s return for the reporting period, in U.S. dollar terms. Banks and insurance stocks contributed the most to the sector, as many companies in these industries restructured and streamlined in order to increase income in the low interest rate environment. The industrials and consumer discretionary sectors were also strong contributors to the Index’s return.

In terms of currency performance, the euro appreciated against the U.S. dollar by approximately 6% for the reporting period. Stronger growth across the Eurozone, rising export demand, and reduced political risk following the presidential election in France helped the euro’s performance.

The euro’s positive performance meant hedging activity detracted from the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of the euro’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of Eurozone equities measured in euros.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments²

Financials	20.84	%
Industrials	14.53
Consumer Discretionary	13.36
Consumer Staples	10.38
Health Care	8.51
Materials	8.14
Information Technology	7.89
Utilities	5.29
Energy	5.08
Telecommunication Services	4.18
Real Estate	1.80
TOTAL	100.00	%

TEN LARGEST COUNTRIES¹

As of 8/31/17

Country Percentage of
Total  Investments²

France	31.90	%
Germany	28.91
Netherlands	11.43
Spain	10.75
Italy	7.48
Belgium	3.63
Finland	3.10
Ireland	1.34
Austria	0.78
Portugal	0.48
TOTAL	99.80	%

¹  Table shown is for the iShares MSCI Eurozone ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI GERMANY ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.88%		13.88%		14.24%		13.88%		13.88%		14.24%
Since Inception		7.22%		7.21%		7.45%		28.37%		28.32%		29.35%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/31/14. The first day of secondary market trading was 2/4/14.

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 18 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,022.30	$	0.25	$	1,000.00	$	1,025.00	$	0.26		0.05%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

The iShares Currency Hedged MSCI Germany ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization German equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Germany 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Germany ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 13.88%, net of fees, while the total return for the Index was 14.24%.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI GERMANY ETF

The German economy expanded solidly on an annual basis through the second quarter of 2017, due to healthy domestic demand and government spending. Net trade negatively affected the economy, however, as sales to countries outside the European Union declined. The unemployment rate declined to 3.7%, the nation’s lowest jobless rate in 37 years, which helped consumer spending increase. Inflation was volatile but remained low, while the ECB’s benchmark interest rate remained at zero percent throughout the reporting period.

The financials sector, representing about 15% of the Index on average, was the largest contributor to the Index’s return in U.S. dollar terms for the reporting period. The insurance industry was the main contributor to the sector, as companies restructured, streamlined, and introduced digital applications to consumers to boost their bottom lines amid low interest rates. The materials and industrials sectors, each representing approximately 14% of the Index on average, also contributed to the Index’s performance. Better-than-expected earnings for chemical companies boosted the materials sector. Within the industrials sector, transportation-related companies benefited from increased shipping demand amid the improved global economy.

When measured in U.S. dollars, the information technology and healthcare sectors were notable contributors to the Index’s performance as well during the reporting period, as was the consumer discretionary sector, the largest sector in the Index, comprising approximately 19% of the Index on average.

In terms of currency performance, the euro appreciated against the U.S. dollar by approximately 6% for the reporting period. Stronger growth across the Eurozone, rising export demand, and reduced political risk following the presidential election in France helped the euro’s performance.

The euro’s positive performance meant hedging activity detracted from the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside—related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of the euro’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of German equities measured in euros.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total  Investments²

Consumer Discretionary	18.08	%
Financials	15.32
Materials	14.13
Industrials	14.06
Health Care	13.68
Information Technology	10.25
Telecommunication Services	4.74
Consumer Staples	3.81
Utilities	3.30
Real Estate	2.63
TOTAL	100.00	%

TEN LARGEST FUND HOLDING¹

As of 8/31/17

Security Percentage of
Total  Investments²

Bayer AG Registered	7.95	%
SAP SE	7.74
Siemens AG Registered	7.51
Allianz SE Registered	7.34
BASF SE	6.68
Daimler AG Registered	5.27
Deutsche Telekom AG Registered	4.44
adidas AG	3.17
Deutsche Post AG Registered	3.02
Linde AG	2.67
TOTAL	55.79	%

¹  Table shown is for the iShares MSCI Germany ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI ITALY ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		31.21%		31.34%		31.07%		31.21%		31.34%		31.07%
Since Inception		2.18%		2.22%		1.65%		4.80%		4.90%		3.61%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,173.60	$	0.00	$	1,000.00	$	1,025.20	$	0.00		0.00%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

The iShares Currency Hedged MSCI Italy ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Italian equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Italy 25/50 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Italy Capped ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 31.21%, net of fees, while the total return for the Index was 31.07%.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI ITALY ETF

Italy posted a moderate level of economic growth during the reporting period, though its rate of growth trailed most other countries in the Eurozone. Nevertheless, Italy’s recent increase in consumer confidence led to more willingness to spend generally and higher retail sales specifically. Business confidence also increased, due to expectations for growth amid the improving economies of its major trading partners. However, demand for Italy’s exports generally did not affect the nation’s economic growth in the second quarter of 2017. Italy also continued to have one of the highest jobless rates of any developed nation in the world.

The financials sector, representing about 33% of the Index on average, was the most significant contributor to the Index’s performance during the reporting period when measured in U.S. dollars. The stock prices of Italian banks, which had been low due to bad loans and insufficient capital, increased sharply after a taxpayer bailout package helped instill new optimism about the country’s financial system. The consumer discretionary sector also contributed to the Index’s performance, due largely to the strong sales of luxury Italian sports cars amid low global interest rates and the strong global economy.

The utilities sector, particularly electric utilities, also was a notable contributor to the Index’s return for the reporting period, as was the industrials sector, driven by the strong performance of machinery and transportation infrastructure stocks.

In terms of currency performance, the euro appreciated against the U.S. dollar by approximately 6% for the reporting period. Stronger growth across the Eurozone, rising export demand, and reduced political risk following the presidential election in France helped the euro’s performance.

The euro’s positive performance meant hedging activity detracted from the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of the euro’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of Italian equities measured in euros.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Financials	34.59	%
Energy	17.42
Utilities	16.04
Industrials	13.17
Consumer Discretionary	12.69
Telecommunication Services	4.51
Health Care	1.58
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

Enel SpA	12.76	%
Intesa Sanpaolo SpA	10.87
UniCredit SpA	10.36
Eni SpA	10.09
Fiat Chrysler Automobiles NV	4.64
Ferrari NV	4.55
Atlantia SpA	4.53
Assicurazioni Generali SpA	4.49
Snam SpA	4.11
CNH Industrial NV	4.11
TOTAL	70.51	%

¹  Table shown is for the iShares MSCI Italy Capped ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI SPAIN ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		25.70%		25.64%		26.14%		25.70%		25.64%		26.14%
Since Inception		2.36%		2.34%		2.32%		5.20%		5.16%		5.09%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,120.60	$	0.16	$	1,000.00	$	1,025.10	$	0.15		0.03%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

The iShares Currency Hedged MSCI Spain ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Spanish equities while mitigating exposure to fluctuations between the value of the euro and the U.S. dollar, as represented by the MSCI Spain 25/50 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Spain Capped ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 25.70%, net of fees, while the total return for the Index was 26.14%.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI SPAIN ETF

Spain’s economy increased at a 3.1% annual rate in the second quarter of 2017 due to the strong performance of both its domestic and external sectors. Private consumption solidly increased, as households benefited from an employment growth rate that topped 60% in the first half of 2017. Amid this environment, robust household spending outweighed the negative consequences of higher inflation and a decrease in wage growth. Export levels increased amid strong global demand for energy and chemical products, as well as food, beverages, and consumer goods. Tourism revenues increased during the second half of the reporting period, which also benefited the Spanish economy.

The financials sector, which comprised about 41% of the Index on average during the reporting period, was the most significant contributor to the Index’s return in U.S. dollar terms. The sector primarily benefited from Spanish banks. Despite ultra-low interest rates and capital constraints caused by bad loans, bank stocks increased after the ECB arranged a rescue of one bank by another, which investors felt could reduce competitive pressures in the industry and increase its overall profitability. The industrials sector also contributed to the Index’s return. Transportation companies were strong contributors to the sector, reflective of the growing confidence in Spain’s economic recovery. The utilities and energy sectors also contributed meaningfully to the Index’s return.

In terms of currency performance, the euro appreciated against the U.S. dollar by approximately 6% for the reporting period. Stronger growth across the Eurozone, rising export demand, and reduced political risk following the presidential election in France helped the euro’s performance.

The euro’s positive performance meant hedging activity detracted from the Index’s return for the reporting period. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the positive impact of the euro’s performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of Spanish equities measured in euros.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Financials	42.54	%
Industrials	18.16
Utilities	10.58
Telecommunication Services	8.57
Consumer Discretionary	5.55
Energy	5.53
Information Technology	4.96
Health Care	2.41
Consumer Staples	1.70
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

Banco Santander SA	19.07	%
Banco Bilbao Vizcaya Argentaria SA	10.15
Telefonica SA	8.57
Industria de Diseno Textil SA	5.56
Amadeus IT Group SA	4.96
Iberdrola SA	4.68
Repsol SA	4.58
CaixaBank SA	4.46
Abertis Infraestructuras SA	4.35
Aena SA	4.12
TOTAL	70.50	%

¹  Table shown is for the iShares MSCI Spain Capped ETF, the underlying fund in which the Fund invests.

²  Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI SWITZERLAND ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.88%		15.97%		16.37%		15.88%		15.97%		16.37%
Since Inception		7.38%		7.42%		7.27%		16.76%		16.84%		16.45%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/29/15. The first day of secondary market trading was 7/1/15.

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 (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a,b		Annualized Expense Ratio a
$	1,000.00	$	1,090.10	$	0.16	$	1,000.00	$	1,025.10	$	0.15		0.03%

^a  Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

^b  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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 18 for more information.

The iShares Currency Hedged MSCI Switzerland ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization Swiss equities while mitigating exposure to fluctuations between the value of the Swiss franc and the U.S. dollar, as represented by the MSCI Switzerland 25/50 100% Hedged to USD 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. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Switzerland Capped ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 15.88%, net of fees, while the total return for the Index was 16.37%.

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI SWITZERLAND ETF

The Swiss economy grew modestly during the reporting period. Expansion was mainly due to domestic demand, which increased amid the nation’s lowest unemployment rate in nearly three years and increased consumer spending on healthcare and housing. The country’s export activity in the second quarter of 2017 was positive, attributable to higher sales of chemical and pharmaceutical products, metals, and watches, particularly to non-Eurozone countries such as Singapore, Hong Kong, and the U.S. The strength of the Swiss franc remained a concern, however, as it tends to reduce export growth and corporate profit margins.

The healthcare sector, the Index’s largest sector, comprising about 31% of the Index on average, was the largest contributor to the Index’s return for the reporting period in U.S. dollars. Within the sector, the pharmaceuticals industry was the most significant contributor, as foreign demand helped increase Swiss pharmaceutical exports to record highs in the first half of 2017.

The financials sector was also a notable contributor to the Index’s return for the reporting period, as companies in the capital markets and insurance industries performed better than expected amid the negative interest rate policy of the Swiss central bank.

Other contributions to the Index’s return for the reporting period came from the consumer discretionary and consumer staples sectors. The former benefited from luxury jewelers and watchmakers, while, for the latter, food products companies helped the most.

In terms of currency performance, the Swiss franc appreciated against the U.S. dollar by approximately 2% for the reporting period, recovering from a sharp decline following the U.S. presidential election. The Swiss franc, which tends to benefit from global uncertainty, rebounded thereafter amid North Korea’s unexpected missile testing. The positive performance of the Swiss franc would typically mean a negative return from currency hedging. However, the currency hedge actually contributed a small amount to the Index’s performance for the reporting period, as the implementation of the hedge led to a positive contribution despite the rising Swiss franc.

ALLOCATION BY SECTOR¹

As of 8/31/17

Sector Percentage of
Total Investments  ²

Health Care	30.22	%
Consumer Staples	21.94
Financials	20.18
Industrials	11.46
Consumer Discretionary	7.07
Materials	6.86
Telecommunication Services	1.42
Real Estate	0.85
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS¹

As of 8/31/17

Security Percentage of
Total Investments  ²

Nestle SA Registered	19.68	%
Novartis AG Registered	13.18
Roche Holding AG	12.46
UBS Group AG	4.42
Cie. Financiere Richemont SA Class A Registered	4.31
ABB Ltd. Registered	4.25
Zurich Insurance Group AG	4.16
Credit Suisse Group AG Registered	3.34
Swiss Re AG	2.80
LafargeHolcim Ltd. Registered	2.58
TOTAL	71.18	%

¹  Table shown is for the iShares MSCI Switzerland Capped ETF, the underlying fund in which the Fund invests.

²  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 March 1, 2017 and held through August 31, 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^® ADAPTIVE CURRENCY HEDGED MSCI EUROZONE ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.14%
EXCHANGE-TRADED FUNDS — 100.14%
iShares MSCI Eurozone ETFa		66,259	$	2,771,614
				2,771,614
TOTAL INVESTMENT COMPANIES
(Cost: $2,261,802)				2,771,614
SHORT-TERM INVESTMENTS — 0.05%
MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		1,353		1,353
				1,353
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,353)				1,353

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.19%
(Cost: $2,263,155)c	$	2,772,967
Other Assets, Less Liabilities — (0.19)%		(5,211	)
NET ASSETS — 100.00%	$	2,767,756

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,264,133. Net unrealized appreciation was $508,834, of which $513,475 represented gross unrealized appreciation on investments and $4,641 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—	b		—			—	$	—	$	(19	)	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,092		261	b		—			1,353		1,353		—			—		8
iShares MSCI Eurozone ETF		67,434		4,337			(5,512	)		66,259		2,771,614		16,132			506,598		58,157
											$	2,772,967	$	16,113		$	506,598	$	58,165

^a Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

SCHEDULES OF INVESTMENTS 19

Schedule of Investments (Continued)

iSHARES^® ADAPTIVE CURRENCY HEDGED MSCI EUROZONE ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	EUR	590,000		USD	698,737	MS		09/06/2017	$	3,663
										3,663
	USD	693,561		EUR	590,000	MS		09/06/2017		(8,839	)
	USD	2,058,636		EUR	1,731,000	MS		10/04/2017		(5,277	)
										(14,116	)
					Net unrealized depreciation				$	(10,453	)

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

EUR — Euro

USD — United States Dollar

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 August 31, 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:
Investment companies	$	2,771,614	$	—		$	—	$	2,771,614
Money market funds		1,353		—			—		1,353
Total	$	2,772,967	$	—		$	—	$	2,772,967
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	3,663		$	—	$	3,663
Liabilities:
Forward currency contracts		—		(14,116	)		—		(14,116	)
Total	$	—	$	(10,453	)	$	—	$	(10,453	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI EUROZONE ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 99.84%
EXCHANGE-TRADED FUNDS — 99.84%
iShares MSCI Eurozone ETFa		42,763,824	$	1,788,810,758
				1,788,810,758
TOTAL INVESTMENT COMPANIES
(Cost: $1,671,861,692)				1,788,810,758
TOTAL INVESTMENTS IN SECURITIES — 99.84%
(Cost: $1,671,861,692)b				1,788,810,758
Other Assets, Less Liabilities — 0.16%				2,862,377
NET ASSETS — 100.00%			$	1,791,673,135

^a  Affiliated issuer. See Schedule 1.

^b  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,684,676,814. Net unrealized appreciation was $104,133,944, of which $119,374,223 represented gross unrealized appreciation on investments and $15,240,279 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		7,434,000		—		(7,434,000	)b		—	$	—	$	5,185		$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		763,278		—		(763,278	)b		—		—		38			—		1,767
iShares MSCI Eurozone ETF		39,282,725		27,578,984		(24,097,885	)		42,763,824		1,788,810,758		(11,051,685	)		281,921,728		31,580,180
										$	1,788,810,758	$	(11,046,462	)	$	281,921,728	$	31,581,947

^a Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI EUROZONE ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	EUR	67,000		USD	78,817	BNP		09/06/2017	$	947
	EUR	24,444,000		USD	28,872,104	JPM		09/06/2017		228,704
	EUR	146,165,434		USD	173,967,561	MS		09/06/2017		43,738
	EUR	92,000		USD	109,399	NOMI		09/06/2017		128
	EUR	8,853,000		USD	10,425,762	RBS		09/06/2017		113,816
	EUR	145,000		USD	170,674	TNTC		09/06/2017		1,950
	EUR	55,669,000		USD	66,286,837	BNP		10/03/2017		84,944
	USD	1,644,012,477		EUR	1,377,270,911	SSBSW		10/03/2017		1,950,930
										2,425,157
	EUR	1,377,270,911		USD	1,641,569,199	SSBSW		09/06/2017		(1,915,459	)
	USD	5,796,420		EUR	4,902,000	BBP		09/06/2017		(39,456	)
	USD	7,267,043		EUR	6,181,000	BNP		09/06/2017		(91,494	)
	USD	18,730,755		EUR	15,865,000	GS		09/06/2017		(156,674	)
	USD	171,543,261		EUR	146,165,434	MS		09/06/2017		(2,468,038	)
	USD	1,612,845,586		EUR	1,374,107,911	SSBSW		09/06/2017		(23,042,573	)
	USD	11,551,721		EUR	9,816,000	UBS		09/06/2017		(134,318	)
	EUR	2,409,000		USD	2,872,301	RBC		10/03/2017		(153	)
	USD	11,368,380		EUR	9,546,000	CITI		10/03/2017		(12,910	)
	USD	174,223,351		EUR	146,165,434	MS		10/03/2017		(43,481	)
										(27,904,556	)
					Net unrealized depreciation				$	(25,479,399	)

Counterparties:

BBP — Barclays Bank PLC Wholesale

BNP — BNP Paribas SA

CITI — Citibank N.A. London

GS — Goldman Sachs International

JPM — JPMorgan Chase Bank N.A.

MS — Morgan Stanley and Co. International PLC

NOMI — Nomura International PLC

RBC — Royal Bank of Canada (UK)

RBS — Royal Bank of Scotland

SSBSW — State Street Bank and Trust

TNTC — The Northern Trust Company

UBS — UBS AG London

Currency abbreviations:

EUR — Euro

USD — United States Dollar

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI EUROZONE ETF

August 31, 2017

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 August 31, 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:
Investment companies	$	1,788,810,758	$	—		$	—	$	1,788,810,758
Total	$	1,788,810,758	$	—		$	—	$	1,788,810,758
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	2,425,157		$	—	$	2,425,157
Liabilities:
Forward currency contracts		—		(27,904,556	)		—		(27,904,556	)
Total	$	—	$	(25,479,399	)	$	—	$	(25,479,399	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 23

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI GERMANY ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 99.84%
EXCHANGE-TRADED FUNDS — 99.84%
iShares MSCI Germany ETFa		25,676,573	$	789,811,385
				789,811,385
TOTAL INVESTMENT COMPANIES
(Cost: $761,152,286)				789,811,385
TOTAL INVESTMENTS IN SECURITIES — 99.84%
(Cost: $761,152,286)b				789,811,385
Other Assets, Less Liabilities — 0.16%				1,240,005
NET ASSETS — 100.00%			$	791,051,390

^a  Affiliated issuer. See Schedule 1.

^b  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $764,663,053. Net unrealized appreciation was $25,148,333, of which $30,319,341 represented gross unrealized appreciation on investments and $5,171,008 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		6,071,330		—		(6,071,330	)b		—	$	—	$	9,541	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		382,382		—		(382,382	)b		—		—		19		—		1,033
iShares MSCI Germany ETF		18,777,370		22,958,313		(16,059,110	)		25,676,573		789,811,385		4,518,942		98,939,902		17,525,364
										$	789,811,385	$	4,528,502	$	98,939,902	$	17,526,397

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI GERMANY ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	EUR	9,180,000		USD	10,829,909	BBP		09/06/2017	$	98,966
	EUR	29,211,000		USD	34,502,660	JPM		09/06/2017		273,305
	EUR	68,039,300		USD	80,981,055	MS		09/06/2017		20,360
	EUR	5,821,000		USD	6,834,611	SSBSW		09/06/2017		95,343
	EUR	20,727,000		USD	24,453,611	TDB		09/06/2017		222,074
	EUR	1,925,000		USD	2,266,930	TNTC		09/06/2017		24,800
	EUR	25,194,000		USD	29,999,292	BNP		10/03/2017		38,443
	USD	16,573,411		EUR	13,868,000	RBS		10/03/2017		39,184
	USD	714,396,819		EUR	598,485,700	SSBSW		10/03/2017		847,767
										1,660,242
	EUR	13,868,000		USD	16,559,331	MS		09/06/2017		(49,349	)
	EUR	598,485,700		USD	713,335,106	SSBSW		09/06/2017		(832,353	)
	USD	96,128,373		EUR	81,907,300	MS		09/06/2017		(1,383,024	)
	USD	2,849,854		EUR	2,419,000	NAB		09/06/2017		(29,988	)
	USD	778,063,773		EUR	662,930,700	SSBSW		09/06/2017		(11,161,348	)
	USD	4,880,370		EUR	4,098,000	CITI		10/03/2017		(5,501	)
	USD	81,100,124		EUR	68,039,300	MS		10/03/2017		(20,240	)
										(13,481,803	)
					Net unrealized depreciation				$	(11,821,561	)

Counterparties:

BBP — Barclays Bank PLC Wholesale

BNP — BNP Paribas SA

CITI — Citibank N.A. London

JPM — JPMorgan Chase Bank N.A.

MS — Morgan Stanley and Co. International PLC

NAB — National Australia Bank Limited

RBS — Royal Bank of Scotland

SSBSW — State Street Bank and Trust

TDB — Toronto Dominion Bank

TNTC — The Northern Trust Company

Currency abbreviations:

EUR — Euro

USD — United States Dollar

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI GERMANY ETF

August 31, 2017

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 August 31, 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:
Investment companies	$	789,811,385	$	—		$	—	$	789,811,385
Total	$	789,811,385	$	—		$	—	$	789,811,385
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	1,660,242		$	—	$	1,660,242
Liabilities:
Forward currency contracts		—		(13,481,803	)		—		(13,481,803	)
Total	$	—	$	(11,821,561	)	$	—	$	(11,821,561	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI ITALY ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 99.97%
EXCHANGE-TRADED FUNDS — 99.97%
iShares MSCI Italy Capped ETFa		194,240	$	5,883,530
				5,883,530
TOTAL INVESTMENT COMPANIES
(Cost: $5,161,756)				5,883,530
SHORT-TERM INVESTMENTS — 0.05%
MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		2,813		2,813
				2,813
TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,813)				2,813

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.02%
(Cost: $5,164,569)c	$	5,886,343
Other Assets, Less Liabilities — (0.02)%		(1,237	)
NET ASSETS — 100.00%	$	5,885,106

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $5,177,327. Net unrealized appreciation was $709,016, of which $727,096 represented gross unrealized appreciation on investments and $18,080 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		3,194,430		—			(3,194,430	)b		—	$	—	$	565		$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,552		1,261	b		—			2,813		2,813		—			—		30
iShares MSCI Italy Capped ETF		621,544		713,157			(1,140,461	)d		194,240		5,883,530		(1,299,329	)		3,013,334		193,054
											$	5,886,343	$	(1,298,764	)	$	3,013,334	$	193,084

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

^d  Includes 159,368 shares from a one-for-two reverse stock split.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI ITALY ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	EUR	5,717,000		USD	6,800,939	MS		09/06/2017	$	5,202
	EUR	78,000		USD	92,876	MS		10/03/2017		120
										5,322
	USD	6,710,494		EUR	5,717,000	MS		09/06/2017		(95,648	)
	USD	5,922,832		EUR	4,969,000	MS		10/03/2017		(1,495	)
										(97,143	)
						Net unrealized depreciation			$	(91,821	)

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

EUR — Euro

USD — United States Dollar

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 August 31, 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:
Investment companies	$	5,883,530	$	—		$	—	$	5,883,530
Money market funds		2,813		—			—		2,813
Total	$	5,886,343	$	—		$	—	$	5,886,343
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	5,322		$	—	$	5,322
Liabilities:
Forward currency contracts		—		(97,143	)		—		(97,143	)
Total	$	—	$	(91,821	)	$	—	$	(91,821	)

^a Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI SPAIN ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 99.97%
EXCHANGE-TRADED FUNDS — 99.97%
iShares MSCI Spain Capped ETFa		1,589,284	$	53,574,764
				53,574,764
TOTAL INVESTMENT COMPANIES
(Cost: $43,634,816)				53,574,764
TOTAL INVESTMENTS IN SECURITIES — 99.97%
(Cost: $43,634,816)b				53,574,764
Other Assets, Less Liabilities — 0.03%				16,770
NET ASSETS — 100.00%			$	53,591,534

^a  Affiliated issuer. See Schedule 1.

^b  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $43,856,065. Net unrealized appreciation was $9,718,699, of which $9,965,454 represented gross unrealized appreciation on investments and $246,755 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		5,477,420		—		(5,477,420	)b		—	$	—	$	1,481		$	—	$	—c
BlackRock Cash Funds: Treasury, SL Agency Shares		5,406		—		(5,406	)b		—		—		—			—		138
iShares MSCI Spain Capped ETF		602,289		1,828,100		(841,105	)		1,589,284		53,574,764		(406,867	)		13,312,654		1,831,173
										$	53,574,764	$	(405,386	)	$	13,312,654	$	1,831,311

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI SPAIN ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	EUR	47,616,000		USD	56,665,538	MS		09/06/2017	$	21,750
	EUR	2,449,000		USD	2,916,082	MS		10/03/2017		3,756
										25,506
	USD	55,883,280		EUR	47,616,000	MS		09/06/2017		(804,007	)
	USD	56,051,640		EUR	47,025,000	MS		10/03/2017		(14,269	)
										(818,276	)
					Net unrealized depreciation				$	(792,770	)

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

EUR — Euro

USD — United States Dollar

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 August 31, 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:
Investment companies	$	53,574,764	$	—		$	—	$	53,574,764
Total	$	53,574,764	$	—		$	—	$	53,574,764
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	25,506		$	—	$	25,506
Liabilities:
Forward currency contracts		—		(818,276	)		—		(818,276	)
Total	$	—	$	(792,770	)	$	—	$	(792,770	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI SWITZERLAND ETF

August 31, 2017

Security	Shares		Value
INVESTMENT COMPANIES — 100.07%
EXCHANGE-TRADED FUNDS — 100.07%
iShares MSCI Switzerland Capped ETFa		191,281	$	6,562,851
				6,562,851
TOTAL INVESTMENT COMPANIES
(Cost: $6,302,640)				6,562,851
SHORT-TERM INVESTMENTS — 0.05%
MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%a,b		3,245		3,245
				3,245
TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,245)				3,245

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.12%
(Cost: $6,305,885)c	$	6,566,096
Other Assets, Less Liabilities — (0.12)%		(7,845	)
NET ASSETS — 100.00%	$	6,558,251

^a  Affiliated issuer. See Schedule 1.

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

^c  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $6,324,471. Net unrealized appreciation was $241,625, of which $269,030 represented gross unrealized appreciation on investments and $27,405 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—	b		—			—	$	—	$	12		$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		2,325		920	b		—			3,245		3,245		—			—		15
iShares MSCI Switzerland Capped ETF		154,512		132,920			(96,151	)		191,281		6,562,851		(42,881	)		437,294		114,938
											$	6,566,096	$	(42,869	)	$	437,294	$	114,953

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI SWITZERLAND ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 5)

Forward currency contracts outstanding as of August 31, 2017 were as follows:

Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	CHF	6,416,000		USD	6,682,769	MS		09/06/2017	$	8,300
	CHF	236,000		USD	246,044	MS		10/03/2017		519
										8,819
	USD	6,619,922		CHF	6,416,000	MS		09/06/2017		(71,148	)
	USD	6,745,894		CHF	6,465,000	MS		10/03/2017		(8,460	)
										(79,608	)
					Net unrealized depreciation				$	(70,789	)

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

CHF — Swiss Franc

USD — United States Dollar

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 August 31, 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:
Investment companies	$	6,562,851	$	—		$	—	$	6,562,851
Money market funds		3,245		—			—		3,245
Total	$	6,566,096	$	—		$	—	$	6,566,096
Derivative financial instrumentsa:
Assets:
Forward currency contracts	$	—	$	8,819		$	—	$	8,819
Liabilities:
Forward currency contracts		—		(79,608	)		—		(79,608	)
Total	$	—	$	(70,789	)	$	—	$	(70,789	)

^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

August 31, 2017

	iShares Adaptive Currency Hedged MSCI Eurozone ETF			iShares Currency Hedged MSCI Eurozone ETF			iShares Currency Hedged MSCI Germany ETF
ASSETS
Investments in securities, at cost:
Affiliated (Note 2)	$	2,263,155		$	1,671,861,692		$	761,152,286
Total cost of investments in securities	$	2,263,155		$	1,671,861,692		$	761,152,286
Investments in securities, at fair value (Note 1):
Affiliated (Note 2)	$	2,772,967		$	1,788,810,758		$	789,811,385
Cash pledged to broker for forward currency contracts		—			2,670,000			1,530,000
Receivables:
Investment securities sold		5,312			27,530,582			12,696,216
Dividends and interest		1			265			104
Unrealized appreciation on forward currency contracts (Note 1)		3,663			2,425,157			1,660,242
Capital shares redeemed		—			39,726			—
Total Assets		2,781,943			1,821,476,488			805,697,947
LIABILITIES
Payables:
Due to custodian		—			1,854,043			1,131,426
Unrealized depreciation on forward currency contracts (Note 1)		14,116			27,904,556			13,481,803
Investment advisory fees (Note 2)		71			44,754			33,328
Total Liabilities		14,187			29,803,353			14,646,557
NET ASSETS	$	2,767,756		$	1,791,673,135		$	791,051,390
Net assets consist of:
Paid-in capital	$	2,385,926		$	1,836,699,816		$	842,786,443
Accumulated net realized loss		(117,529	)		(136,496,348	)		(68,572,591	)
Net unrealized appreciation		499,359			91,469,667			16,837,538
NET ASSETS	$	2,767,756		$	1,791,673,135		$	791,051,390
Shares outstandinga		100,000			62,150,000			29,500,000
Net asset value per share	$	27.68		$	28.83		$	26.82

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

See notes to financial statements.

FINANCIAL STATEMENTS 33

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares Currency Hedged MSCI Italy ETF			iShares Currency Hedged MSCI Spain ETF			iShares Currency Hedged MSCI Switzerland ETF
ASSETS
Investments in securities, at cost:
Affiliated (Note 2)	$	5,164,569		$	43,634,816		$	6,305,885
Total cost of investments in securities	$	5,164,569		$	43,634,816		$	6,305,885
Investments in securities, at fair value (Note 1):
Affiliated (Note 2)	$	5,886,343		$	53,574,764		$	6,566,096
Cash pledged to broker for forward currency contracts		—			860,000			—
Receivables:
Investment securities sold		90,581			772,385			63,108
Dividends and interest		3			3,676			3
Unrealized appreciation on forward currency contracts (Note 1)		5,322			25,506			8,819
Total Assets		5,982,249			55,236,331			6,638,026
LIABILITIES
Payables:
Due to custodian		—			825,139			—
Unrealized depreciation on forward currency contracts (Note 1)		97,143			818,276			79,608
Investment advisory fees (Note 2)		—			1,382			167
Total Liabilities		97,143			1,644,797			79,775
NET ASSETS	$	5,885,106		$	53,591,534		$	6,558,251
Net assets consist of:
Paid-in capital	$	5,849,542		$	50,060,032		$	6,409,465
Undistributed net investment income		6			1,015			—
Accumulated net realized loss		(594,395	)		(5,616,691	)		(40,636	)
Net unrealized appreciation		629,953			9,147,178			189,422
NET ASSETS	$	5,885,106		$	53,591,534		$	6,558,251
Shares outstandinga		350,000			2,350,000			250,000
Net asset value per share	$	16.81		$	22.80		$	26.23

^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 August 31, 2017

	iShares Adaptive Currency Hedged MSCI Eurozone ETF			iShares Currency Hedged MSCI Eurozone ETF			iShares Currency Hedged MSCI Germany ETF
NET INVESTMENT INCOME
Dividends — affiliated (Note 2)	$	58,165		$	31,581,947		$	17,526,397
Securities lending income — affiliated — net (Note 2)		52			8,001			46,333
Total investment income		58,217			31,589,948			17,572,730
EXPENSES
Investment advisory fees (Note 2)		15,643			8,339,932			3,325,361
Proxy fees		58			31,490			16,138
Total expenses		15,701			8,371,422			3,341,499
Less investment advisory fees waived (Note 2)		(14,944	)		(7,967,878	)		(3,052,348	)
Net expenses		757			403,544			289,151
Net investment income		57,460			31,186,404			17,283,579
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated (Note 2)		16,113			(7,659,730	)		(1,832,972	)
In-kind redemptions — affiliated (Note 2)		—			(3,386,770	)		6,361,455
Foreign currency transactions		—			(95	)		—
Forward currency contracts		(46,900	)		(81,286,923	)		(58,095,656	)
Realized gain distributions from affiliated funds		—			38			19
Net realized loss		(30,787	)		(92,333,480	)		(53,567,154	)
Net change in unrealized appreciation/depreciation on:
Investments — affiliated (Note 2)		506,598			281,921,728			98,939,902
Forward currency contracts		(14,071	)		(18,006,418	)		(6,332,717	)
Net change in unrealized appreciation/depreciation		492,527			263,915,310			92,607,185
Net realized and unrealized gain		461,740			171,581,830			39,040,031
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	519,200		$	202,768,234		$	56,323,610

See notes to financial statements.

FINANCIAL STATEMENTS 35

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares Currency Hedged MSCI Italy ETF			iShares Currency Hedged MSCI Spain ETF			iShares Currency Hedged MSCI Switzerland ETF
NET INVESTMENT INCOME
Dividends — affiliated (Note 2)	$	193,084		$	1,831,311		$	114,953
Securities lending income — affiliated — net (Note 2)		10,412			46,429			1,720
Total investment income		203,496			1,877,740			116,673
EXPENSES
Investment advisory fees (Note 2)		40,071			269,197			27,036
Proxy fees		140			1,256			86
Total expenses		40,211			270,453			27,122
Less investment advisory fees waived (Note 2)		(40,211	)		(257,428	)		(25,813	)
Net expenses		—			13,025			1,309
Net investment income		203,496			1,864,715			115,364
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated (Note 2)		(513,282	)		(376,095	)		(26,486	)
In-kind redemptions — affiliated (Note 2)		(785,482	)		(29,291	)		(16,383	)
Forward currency contracts		(399,691	)		(4,642,021	)		37,373
Net realized loss		(1,698,455	)		(5,047,407	)		(5,496	)
Net change in unrealized appreciation/depreciation on:
Investments — affiliated (Note 2)		3,013,334			13,312,654			437,294
Forward currency contracts		(21,440	)		(670,636	)		(85,031	)
Net change in unrealized appreciation/depreciation		2,991,894			12,642,018			352,263
Net realized and unrealized gain		1,293,439			7,594,611			346,767
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,496,935		$	9,459,326		$	462,131

See notes to financial statements.

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares Adaptive Currency Hedged MSCI Eurozone ETF						iShares Currency Hedged MSCI Eurozone ETF
	Year ended August 31, 2017			Period from January 5, 2016a to August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	57,460		$	56,294		$	31,186,404		$	47,659,298
Net realized loss		(30,787	)		(86,742	)		(92,333,480	)		(140,443,705	)
Net change in unrealized appreciation/depreciation		492,527			6,832			263,915,310			(4,072,460	)
Net increase (decrease) in net assets resulting from operations		519,200			(23,616	)		202,768,234			(96,856,867	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(57,460	)		(56,294	)		(31,186,441	)		(47,659,298	)
From net realized gain		—			—			—			(9,722,494	)
Return of capital		(118	)		(187	)		(82,277	)		(92,382	)
Total distributions to shareholders		(57,578	)		(56,481	)		(31,268,718	)		(57,474,174	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			4,763,965			924,170,392			1,776,524,922
Cost of shares redeemed		—			(2,377,734	)		(649,402,041	)		(1,839,555,179	)
Net increase (decrease) in net assets from capital share transactions		—			2,386,231			274,768,351			(63,030,257	)
INCREASE (DECREASE) IN NET ASSETS		461,622			2,306,134			446,267,867			(217,361,298	)
NET ASSETS
Beginning of period		2,306,134			—			1,345,405,268			1,562,766,566
End of period	$	2,767,756		$	2,306,134		$	1,791,673,135		$	1,345,405,268
SHARES ISSUED AND REDEEMED
Shares sold		—			200,000			32,400,000			69,900,000
Shares redeemed		—			(100,000	)		(24,650,000	)		(75,850,000	)
Net increase (decrease) in shares outstanding		—			100,000			7,750,000			(5,950,000	)

^a Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Currency Hedged MSCI Germany ETF						iShares Currency Hedged MSCI Italy ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	17,283,579		$	13,089,671		$	203,496		$	843,541
Net realized loss		(53,567,154	)		(216,525,114	)		(1,698,455	)		(6,331,650	)
Net change in unrealized appreciation/depreciation		92,607,185			184,173,921			2,991,894			(985,131	)
Net increase (decrease) in net assets resulting from operations		56,323,610			(19,261,522	)		1,496,935			(6,473,240	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(17,358,630	)		(13,078,956	)		(203,490	)		(843,541	)
From net realized gain		—			(11,292,542	)		(897,138	)		(2,008,894	)
Total distributions to shareholders		(17,358,630	)		(24,371,498	)		(1,100,628	)		(2,852,435	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		596,656,116			288,603,554			11,028,320			42,843,202
Cost of shares redeemed		(337,270,325	)		(1,499,256,808	)		(12,560,613	)		(112,341,514	)
Net increase (decrease) in net assets from capital share transactions		259,385,791			(1,210,653,254	)		(1,532,293	)		(69,498,312	)
INCREASE (DECREASE) IN NET ASSETS		298,350,771			(1,254,286,274	)		(1,135,986	)		(78,823,987	)
NET ASSETS
Beginning of year		492,700,619			1,746,986,893			7,021,092			85,845,079
End of year	$	791,051,390		$	492,700,619		$	5,885,106		$	7,021,092
Undistributed net investment income included in net assets at end of year	$	—		$	10,715		$	6		$	—
SHARES ISSUED AND REDEEMED
Shares sold		21,800,000			12,300,000			700,000			1,950,000
Shares redeemed		(12,800,000	)		(64,550,000	)		(750,000	)		(5,200,000	)
Net increase (decrease) in shares outstanding		9,000,000			(52,250,000	)		(50,000	)		(3,250,000	)

See notes to financial statements.

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares Currency Hedged MSCI Spain ETF						iShares Currency Hedged MSCI Switzerland ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,864,715		$	2,032,135		$	115,364		$	60,841
Net realized loss		(5,047,407	)		(10,238,404	)		(5,496	)		(203,226	)
Net change in unrealized appreciation/depreciation		12,642,018			(2,383,385	)		352,263			14,023
Net increase (decrease) in net assets resulting from operations		9,459,326			(10,589,654	)		462,131			(128,362	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,870,492	)		(2,025,343	)		(115,364	)		(60,841	)
From net realized gain		—			(1,013,906	)		(34,566	)		(206,309	)
Return of capital		—			—			(89	)		—
Total distributions to shareholders		(1,870,492	)		(3,039,249	)		(150,019	)		(267,150	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		45,251,626			40,843,491			3,890,879			6,041,729
Cost of shares redeemed		(15,226,656	)		(68,061,560	)		(2,321,374	)		(4,670,348	)
Net increase (decrease) in net assets from capital share transactions		30,024,970			(27,218,069	)		1,569,505			1,371,381
INCREASE (DECREASE) IN NET ASSETS		37,613,804			(40,846,972	)		1,881,617			975,869
NET ASSETS
Beginning of year		15,977,730			56,824,702			4,676,634			3,700,765
End of year	$	53,591,534		$	15,977,730		$	6,558,251		$	4,676,634
Undistributed net investment income included in net assets at end of year	$	1,015		$	6,792		$	—		$	—
SHARES ISSUED AND REDEEMED
Shares sold		2,250,000			2,000,000			150,000			250,000
Shares redeemed		(750,000	)		(3,650,000	)		(100,000	)		(200,000	)
Net increase (decrease) in shares outstanding		1,500,000			(1,650,000	)		50,000			50,000

See notes to financial statements.

FINANCIAL STATEMENTS 39

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Adaptive Currency Hedged MSCI Eurozone ETF

	Year ended Aug. 31, 2017			Period from Jan. 5, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	23.06		$	23.86
Income from investment operations:
Net investment incomeb		0.57			0.56
Net realized and unrealized gain (loss)c		4.63			(0.80	)
Total from investment operations		5.20			(0.24	)
Less distributions from:
Net investment income		(0.58	)		(0.56	)
Return of capital		(0.00	)d		(0.00	)d
Total distributions		(0.58	)		(0.56	)
Net asset value, end of period	$	27.68		$	23.06
Total return		22.75	%		(0.75	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	2,768		$	2,306
Ratio of expenses to average net assetsf,g		0.03	%		0.03	%
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%
Ratio of net investment income to average net assetsf		2.28	%		3.79	%
Portfolio turnover rateh,i		6	%		4	%e

^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  Rounds to less than $0.01.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 100 for the portfolio turnover rates of the underlying fund.

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 Currency Hedged MSCI Eurozone  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Period from Jul. 9, 2014a to Aug. 31, 2014
Net asset value, beginning of period	$	24.73		$	25.90		$	24.87		$	25.14
Income from investment operations:
Net investment income (loss)b		0.64			0.60			1.17			(0.00	)c
Net realized and unrealized gain (loss)d		4.07			(0.93	)		0.65			(0.27	)
Total from investment operations		4.71			(0.33	)		1.82			(0.27	)
Less distributions from:
Net investment income		(0.61	)		(0.71	)		(0.63	)		—
Net realized gain		—			(0.13	)		(0.16	)		—
Return of capital		(0.00	)c		(0.00	)c		(0.00	)c		—
Total distributions		(0.61	)		(0.84	)		(0.79	)		—
Net asset value, end of period	$	28.83		$	24.73		$	25.90		$	24.87
Total return		19.13	%		(1.02	)%		7.27	%		(1.11	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	1,791,673		$	1,345,405		$	1,562,767		$	3,730
Ratio of expenses to average net assetsf,g		0.03	%		0.03	%		0.03	%		0.04	%
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsf		2.32	%		2.42	%		4.15	%		(0.04	)%
Portfolio turnover rateh,i		9	%		12	%		21	%		0	%e

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 100 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 41

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Currency Hedged MSCI Germany ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Period from Jan. 31, 2014a to Aug. 31, 2014
Net asset value, beginning of period	$	24.03		$	24.01		$	23.63		$	23.68
Income from investment operations:
Net investment incomeb		0.74			0.31			0.99			1.04
Net realized and unrealized gain (loss)c		2.62			0.46			0.68			(0.59	)
Total from investment operations		3.36			0.77			1.67			0.45
Less distributions from:
Net investment income		(0.57	)		(0.54	)		(0.46	)		(0.50	)
Net realized gain		—			(0.21	)		(0.83	)		(0.00	)d
Return of capital		—			—			(0.00	)d		—
Total distributions		(0.57	)		(0.75	)		(1.29	)		(0.50	)
Net asset value, end of period	$	26.82		$	24.03		$	24.01		$	23.63
Total return		13.88	%		3.50	%		7.00	%		1.79	%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	791,051		$	492,701		$	1,746,987		$	51,995
Ratio of expenses to average net assetsf,g		0.05	%		0.05	%		0.05	%		0.06	%
Ratio of expenses to average net assets prior to waived feesf,g		0.53	%		0.53	%		0.53	%		0.53	%
Ratio of net investment income to average net assetsg		2.75	%		1.33	%		3.69	%		7.36	%
Portfolio turnover rateh,i		9	%		11	%		21	%		4	%e

^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  Rounds to less than $0.01.

^e  Not annualized.

^f  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^g  Annualized for periods of less than one year.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 101 for the portfolio turnover rates of the underlying fund.

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 Currency Hedged MSCI Italy  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Jun. 29, 2015a to Aug. 31, 2015
Net asset value, beginning of period	$	17.55		$	23.52		$	23.65
Income from investment operations:
Net investment income (loss)b		0.51			0.41			(0.00	)c
Net realized and unrealized gain (loss)d		3.71			(4.93	)		(0.13	)
Total from investment operations		4.22			(4.52	)		(0.13	)
Less distributions from:
Net investment income		(0.48	)		(0.70	)		—
Net realized gain		(4.48	)		(0.75	)		—
Total distributions		(4.96	)		(1.45	)		—
Net asset value, end of period	$	16.81		$	17.55		$	23.52
Total return		31.21	%		(19.68	)%		(0.55	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	5,885		$	7,021		$	85,845
Ratio of expenses to average net assetsf,g		0.00	%		0.00	%		0.00	%h
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsf		3.15	%		1.90	%		(0.00	)%h
Portfolio turnover ratei,j		12	%		12	%		0	%e,k

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

^h  Rounds to less than 0.01%.

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

^j  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 102 for the portfolio turnover rates of the underlying fund.

^k  Rounds to less than 1%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 43

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares Currency Hedged MSCI Spain  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Jun. 29, 2015a to Aug. 31, 2015
Net asset value, beginning of period	$	18.80		$	22.73		$	23.77
Income from investment operations:
Net investment income (loss)b		0.94			0.80			(0.00	)c
Net realized and unrealized gain (loss)d		3.81			(3.61	)		(1.04	)
Total from investment operations		4.75			(2.81	)		(1.04	)
Less distributions from:
Net investment income		(0.75	)		(0.81	)		—
Net realized gain		—			(0.31	)		—
Total distributions		(0.75	)		(1.12	)		—
Net asset value, end of period	$	22.80		$	18.80		$	22.73
Total return		25.70	%		(12.51	)%		(4.33	)%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	53,592		$	15,978		$	56,825
Ratio of expenses to average net assetsf,g		0.03	%		0.03	%		0.03	%
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsf		4.29	%		4.02	%		(0.03	)%
Portfolio turnover rateh,i		9	%		15	%		0	%e,j

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 103 for the portfolio turnover rates of the underlying fund.

^j Rounds to less than 1%.

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 Currency Hedged MSCI Switzerland  ETF

	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Jun. 29, 2015a to Aug. 31, 2015
Net asset value, beginning of period	$	23.38		$	24.67		$	24.64
Income from investment operations:
Net investment income (loss)b		0.66			0.41			(0.00	)c
Net realized and unrealized gain (loss)d		3.00			(0.27	)		0.03
Total from investment operations		3.66			0.14			0.03
Less distributions from:
Net investment income		(0.58	)		(0.61	)		—
Net realized gain		(0.23	)		(0.82	)		—
Return of capital		(0.00	)c		—			—
Total distributions		(0.81	)		(1.43	)		—
Net asset value, end of period	$	26.23		$	23.38		$	24.67
Total return		15.88	%		0.63	%		0.12	%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	6,558		$	4,677		$	3,701
Ratio of expenses to average net assetsf,g		0.03	%		0.03	%		0.04	%
Ratio of expenses to average net assets prior to waived feesf,g		0.62	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsf		2.65	%		1.72	%		(0.04	)%
Portfolio turnover rateh,i		11	%		19	%		1	%e

^a  Commencement of operations.

^b  Based on average shares outstanding throughout each period.

^c  Rounds to less than $0.01.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ  Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 104 for the portfolio turnover rates of the underlying fund.

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
Adaptive Currency Hedged MSCI Eurozone		Non-diversified
Currency Hedged MSCI Eurozone		Diversified	a
Currency Hedged MSCI Germany		Diversified	a
Currency Hedged MSCI Italy		Non-diversified
Currency Hedged MSCI Spain		Non-diversified
Currency Hedged MSCI Switzerland		Non-diversified

^a  The Fund’s classification changed from non-diversified to diversified during the reporting period.

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. Currently each Fund seeks to achieve its investment objective by investing a substantial portion of its assets in an exchange-traded fund of iShares, Inc. (an “underlying fund”), an affiliate of the Funds. The financial statements and schedules of investments for the underlying funds can be found elsewhere in this report and should be read in conjunction with the Funds’ financial statements.

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

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

to policies and procedures developed by the Global Valuation Committee and approved by the Board of Trustees of the Trust (the “Board”).

• Exchange-traded funds and closed-end funds 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 fund is primarily traded. Funds 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”).

• Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated forward exchange rates are used for contracts with interim settlement dates for which quotations are not available.

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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 to valuation techniques are categorized into a fair value 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.

NOTES TO FINANCIAL STATEMENTS 47

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. However, the Funds have elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax 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 August 31, 2017, if any, are disclosed in the Funds’ statements of assets and liabilities.

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original 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

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 Adaptive Currency Hedged MSCI Eurozone ETF and the iShares Currency Hedged Eurozone ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund. In addition, each Fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to reduce the investment advisory fee for each Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Eurozone ETF (“EZU”), after taking into account any fee waivers by EZU, plus 0.03%.

For its investment advisory services to the iShares Currency Hedged MSCI Germany ETF, BFA is entitled to an annual investment advisory fee of 0.53%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds.

For its investment advisory services to the iShares Currency Hedged MSCI Italy ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Italy Capped ETF (“EWI”), after taking into account any fee waivers by EWI, plus 0.03%. Additionally, BFA has contractually agreed to a reduction in the investment advisory fee of 0.03% through December 31, 2020.

For its investment advisory services to the iShares Currency Hedged MSCI Spain ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Spain Capped ETF (“EWP”), after taking into account any fee waivers by EWP, plus 0.03%.

For its investment advisory services to the iShares Currency Hedged MSCI Switzerland ETF, BFA is entitled to an annual investment advisory fee of 0.62%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Switzerland ETF (“EWL”), after taking into account any fee waivers by EWL, plus 0.03%.

The U.S. Securities and Exchange Commission 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,

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 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 Fund, pursuant to a securities lending agreement, will retain 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 August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
Adaptive Currency Hedged MSCI Eurozone	$	17
Currency Hedged MSCI Eurozone		2,220
Currency Hedged MSCI Germany		11,892
Currency Hedged MSCI Italy		2,156
Currency Hedged MSCI Spain		12,523
Currency Hedged MSCI Switzerland		549

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.

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.

It is possible that, from time to time, BlackRock and/or funds or other accounts managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of August 31, 2017, the number of affiliated accounts that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:

iShares ETF	Number of Affiliated Accounts	Aggregate Affiliated Ownership Percentage
Adaptive Currency Hedged MSCI Eurozone	1	49%

NOTES TO FINANCIAL STATEMENTS 51

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
Adaptive Currency Hedged MSCI Eurozone	$	154,492	$	212,527
Currency Hedged MSCI Eurozone		125,423,048		232,202,294
Currency Hedged MSCI Germany		57,645,205		120,686,743
Currency Hedged MSCI Italy		782,914		2,159,487
Currency Hedged MSCI Spain		4,069,704		9,161,830
Currency Hedged MSCI Switzerland		474,571		545,182

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Currency Hedged MSCI Eurozone	$	927,929,728	$	647,071,790
Currency Hedged MSCI Germany		594,656,032		337,416,822
Currency Hedged MSCI Italy		10,975,065		12,446,199
Currency Hedged MSCI Spain		45,041,460		15,241,020
Currency Hedged MSCI Switzerland		3,920,491		2,344,614

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.

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

5. FORWARD CURRENCY CONTRACTS

Each Fund uses forward currency contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held by the Fund or its underlying fund. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange.

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Non-deliverable forward currency contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. A fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the fund failing to close out its position due to an illiquid market.

The following table shows the value of forward currency contracts held as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Assets
	iShares Adaptive Currency Hedged MSCI Eurozone ETF		iShares Currency Hedged MSCI Eurozone ETF		iShares Currency Hedged MSCI Germany ETF
Forward currency contracts:
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation	$	3,663	$	2,425,157	$	1,660,242
	iShares Currency Hedged MSCI Italy ETF		iShares Currency Hedged MSCI Spain ETF		iShares Currency Hedged MSCI Switzerland ETF
Forward currency contracts:
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation	$	5,322	$	25,506	$	8,819

NOTES TO FINANCIAL STATEMENTS 53

Notes to Financial Statements (Continued)

iSHARES^® TRUST

Liabilities
	iShares Adaptive Currency Hedged MSCI Eurozone ETF		iShares Currency Hedged MSCI Eurozone ETF		iShares Currency Hedged MSCI Germany ETF
Forward currency contracts:
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation	$	14,116	$	27,904,556	$	13,481,803
	iShares Currency Hedged MSCI Italy ETF		iShares Currency Hedged MSCI Spain ETF		iShares Currency Hedged MSCI Switzerland ETF
Forward currency contracts:
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation	$	97,143	$	818,276	$	79,608

The following table shows the realized and unrealized gains (losses) on forward currency contracts held during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)
	iShares Adaptive Currency Hedged MSCI Eurozone ETF			iShares Currency Hedged MSCI Eurozone ETF			iShares Currency Hedged MSCI Germany ETF
Forward currency contracts:	$	(46,900	)	$	(81,286,923	)	$	(58,095,656	)
	iShares Currency Hedged MSCI Italy ETF			iShares Currency Hedged MSCI Spain ETF			iShares Currency Hedged MSCI Switzerland ETF
Forward currency contracts:	$	(399,691	)	$	(4,642,021	)	$	37,373
	Net Change in Unrealized Appreciation/Depreciation
	iShares Adaptive Currency Hedged MSCI Eurozone ETF			iShares Currency Hedged MSCI Eurozone ETF			iShares Currency Hedged MSCI Germany ETF
Forward currency contracts:	$	(14,071	)	$	(18,006,418	)	$	(6,332,717	)
	iShares Currency Hedged MSCI Italy ETF			iShares Currency Hedged MSCI Spain ETF			iShares Currency Hedged MSCI Switzerland ETF
Forward currency contracts:	$	(21,440	)	$	(670,636	)	$	(85,031	)

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The following table shows the average quarter-end balances of outstanding forward currency contracts for the year ended August 31, 2017:

	iShares Adaptive Currency Hedged MSCI Eurozone ETF		iShares Currency Hedged MSCI Eurozone ETF		iShares Currency Hedged MSCI Germany ETF
Average amounts purchased in U.S. dollars	$	1,473,023	$	1,459,020,487	$	707,731,204
Average amounts sold in U.S. dollars	$	2,737,911	$	2,821,972,854	$	1,322,114,047
	iShares Currency Hedged MSCI Italy ETF		iShares Currency Hedged MSCI Spain ETF		iShares Currency Hedged MSCI Switzerland ETF
Average amounts purchased in U.S. dollars	$	9,070,580	$	43,245,066	$	5,023,549
Average amounts sold in U.S. dollars	$	14,940,900	$	82,108,385	$	9,750,000

The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.

The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Except for NDFs, the forward currency contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as “Cash pledged to broker for forward currency contracts” on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as “Investments in securities — affiliated” and “Payable due to broker for collateral on forwards.” To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.

NOTES TO FINANCIAL STATEMENTS 55

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The following table presents the exposure of the open forward currency contracts that are subject to potential offset in the statements of assets and liabilities as of August 31, 2017:

	Derivative Assets Subject to Offsetting		Derivatives Available for Offset			Cash Collateral Received			Net Amount of Derivative Assets
iShares Adaptive Currency Hedged MSCI Eurozone ETF
Forward currency contracts	$	3,663	$	(3,663	)	$	—		$	—
iShares Currency Hedged MSCI Eurozone ETF
Forward currency contracts	$	2,425,157	$	(2,080,559	)	$	—		$	344,598
iShares Currency Hedged MSCI Germany ETF
Forward currency contracts	$	1,660,242	$	(963,470	)	$	—		$	696,772
iShares Currency Hedged MSCI Italy Capped ETF
Forward currency contracts	$	5,322	$	(5,322	)	$	—		$	—
iShares Currency Hedged MSCI Spain ETF
Forward currency contracts	$	25,506	$	(25,506	)	$	—		$	—
iShares Currency Hedged MSCI Switzerland ETF
Forward currency contracts	$	8,819	$	(8,819	)	$	—		$	—
	Derivative Liabilities Subject to Offsetting		Derivatives Available for Offset			Cash Collateral Pledged  a			Net Amount of Derivative Liabilities
iShares Adaptive Currency Hedged MSCI Eurozone ETF
Forward currency contracts	$	14,116	$	(3,663	)	$	—		$	10,453
iShares Currency Hedged MSCI Eurozone ETF
Forward currency contracts	$	27,904,556	$	(2,080,559	)	$	(2,467,781	)	$	23,356,216
iShares Currency Hedged MSCI Germany ETF
Forward currency contracts	$	13,481,803	$	(963,470	)	$	(1,432,253	)	$	11,086,080
iShares Currency Hedged MSCI Italy Capped ETF
Forward currency contracts	$	97,143	$	(5,322	)	$	—		$	91,821
iShares Currency Hedged MSCI Spain ETF
Forward currency contracts	$	818,276	$	(25,506	)	$	(792,770	)	$	—
iShares Currency Hedged MSCI Switzerland ETF
Forward currency contracts	$	79,608	$	(8,819	)	$	—		$	70,789

^a  Excess of collateral pledged is not shown for financial reporting purposes.

6. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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.

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.

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

NOTES TO FINANCIAL STATEMENTS 57

Notes to Financial Statements (Continued)

iSHARES^® TRUST

August 31, 2017, attributable to 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
Currency Hedged MSCI Eurozone	$	(11,024,492	)	$	37	$	11,024,455
Currency Hedged MSCI Germany		4,368,700			64,336		(4,433,036	)
Currency Hedged MSCI Italy		(1,266,067	)		—		1,266,067
Currency Hedged MSCI Spain		(371,636	)		—		371,636
Currency Hedged MSCI Switzerland		(36,778	)		—		36,778

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
Adaptive Currency Hedged MSCI Eurozone
Ordinary income	$	57,460	$	56,294
Return of capital		118		187
	$	57,578	$	56,481
Currency Hedged MSCI Eurozone
Ordinary income	$	31,186,441	$	51,552,269
Long-term capital gain		—		5,829,523
Return of capital		82,277		92,382
	$	31,268,718	$	57,474,174
Currency Hedged MSCI Germany
Ordinary income	$	17,358,630	$	14,278,563
Long-term capital gain		—		10,092,935
	$	17,358,630	$	24,371,498
Currency Hedged MSCI Italy
Ordinary income	$	620,951	$	1,661,470
Long-term capital gain		479,677		1,190,965
	$	1,100,628	$	2,852,435
Currency Hedged MSCI Spain
Ordinary income	$	1,870,492	$	2,430,906
Long-term capital gain		—		608,343
	$	1,870,492	$	3,039,249
Currency Hedged MSCI Switzerland
Ordinary income	$	127,779	$	143,140
Long-term capital gain		22,151		124,010
Return of capital		89		—
	$	150,019	$	267,150

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of August 31, 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
Adaptive Currency Hedged MSCI Eurozone	$	—	$	(127,004	)	$	508,834	$	—		$	381,830
Currency Hedged MSCI Eurozone		—		(149,160,625	)		104,133,944		—			(45,026,681	)
Currency Hedged MSCI Germany		—		(76,883,386	)		25,148,333		—			(51,735,053	)
Currency Hedged MSCI Italy		6		—			709,016		(673,458	)		35,564
Currency Hedged MSCI Spain		1,015		(6,188,212	)		9,718,699		—			3,531,502
Currency Hedged MSCI Switzerland		—		—			241,625		(92,839	)		148,786

^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 realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts.

^b  The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of August 31, 2017, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

iShares ETF	Non- Expiring
Adaptive Currency Hedged MSCI Eurozone	$	127,004
Currency Hedged MSCI Eurozone		149,160,625
Currency Hedged MSCI Germany		76,883,386
Currency Hedged MSCI Spain		6,188,212

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 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. LEGAL PROCEEDINGS

On June 16, 2016, investors (the “Plaintiffs”) 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 putative 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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

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.

NOTES TO FINANCIAL STATEMENTS 59

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and

Shareholders of the iShares Adaptive Currency Hedged MSCI Eurozone ETF,

iShares Currency Hedged MSCI Eurozone ETF, iShares Currency Hedged MSCI Germany ETF,

iShares Currency Hedged MSCI Italy ETF, iShares Currency Hedged MSCI Spain ETF and

iShares Currency Hedged MSCI Switzerland 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 Adaptive Currency Hedged MSCI Eurozone ETF, iShares Currency Hedged MSCI Eurozone ETF, iShares Currency Hedged MSCI Germany ETF, iShares Currency Hedged MSCI Italy ETF, iShares Currency Hedged MSCI Spain ETF and iShares Currency Hedged MSCI Switzerland ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

60 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 August 31, 2017:

iShares ETF	Qualified Dividend Income
Adaptive Currency Hedged MSCI Eurozone	$	58,157
Currency Hedged MSCI Eurozone		30,562,965
Currency Hedged MSCI Germany		17,227,820
Currency Hedged MSCI Italy		173,547
Currency Hedged MSCI Spain		1,831,173
Currency Hedged MSCI Switzerland		110,646

For the fiscal year ended August 31, 2017, the Funds intend to pass through to their shareholders foreign source income earned and foreign taxes paid by the underlying funds:

iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Adaptive Currency Hedged MSCI Eurozone	$	66,175	$	8,340
Currency Hedged MSCI Eurozone		36,076,866		4,647,860
Currency Hedged MSCI Germany		20,287,906		2,763,569
Currency Hedged MSCI Italy		225,087		33,529
Currency Hedged MSCI Spain		1,956,362		168,120
Currency Hedged MSCI Switzerland		134,370		24,822

The following Funds hereby designate the following amounts as 20% rate long-term capital gain dividends for the fiscal year ended August 31, 2017:

iShares ETF	Long-Term Capital Gain
Currency Hedged MSCI Italy	$	479,677
Currency Hedged MSCI Switzerland		22,151

The following Funds hereby designate the following amounts as short-term capital gain dividends for the fiscal year ended August 31, 2017:

iShares ETF	Short-Term Capital Gain
Currency Hedged MSCI Italy	$	417,461
Currency Hedged MSCI Switzerland		12,415

TAX INFORMATION 61

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

I. iShares Adaptive Currency Hedged MSCI Eurozone ETF, iShares Currency Hedged MSCI Eurozone ETF, iShares Currency Hedged MSCI Germany ETF, iShares Currency Hedged MSCI Spain ETF and iShares Currency Hedged MSCI Switzerland ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds. The Board further noted that each Fund’s pricing reflects the use of currency hedging strategies, as compared to certain of its respective competitor funds in its Peer Group, which are not currency hedged.

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Funds to BlackRock, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 63

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that to the extent that a Fund invests in an underlying iShares fund that has breakpoints, the shareholders of that Fund would benefit from breakpoints in such underlying iShares fund’s respective investment advisory fee rate as the assets of such underlying iShares fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

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iSHARES^® TRUST

connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares Currency Hedged MSCI Italy ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by

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Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

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Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that to the extent that the Fund invests in an underlying iShares fund that has breakpoints, the shareholders of the Fund would benefit from such breakpoints in the underlying iShares fund’s investment advisory fee rate as the assets of the underlying iShares fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as

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compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

68 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.

Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

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
Adaptive Currency Hedged MSCI Eurozone	$	0.575781	$	—	$	—	$	0.575781		100	%		—	%		—	%		100	%
Currency Hedged MSCI Eurozone		0.613094		—		—		0.613094		100			—			—			100
Currency Hedged MSCI Italy		0.477352		4.485690		—		4.963042		10			90			—			100
Currency Hedged MSCI Spain		0.752831		—		—		0.752831		100			—			—			100
Currency Hedged MSCI Switzerland		0.580204		0.230441		—		0.810645		72			28			—			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 ask on the primary securities exchange on

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Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding 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. Each line in each 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 Adaptive Currency Hedged MSCI Eurozone ETF

Period Covered: January 5, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.0%		1		0.27	%
Greater than 0.5% and Less than 1.0%		1		0.27
Greater than 0.0% and Less than 0.5%		339		90.15
At NAV		6		1.60
Less than 0.0% and Greater than –0.5%		27		7.18
Less than –0.5%		2		0.53
		376		100.00	%

iShares Currency Hedged MSCI Eurozone ETF

Period Covered: July 9, 2014 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5%		1		0.13	%
Greater than 0.0% and Less than 0.5%		441		58.64
At NAV		83		11.04
Less than 0.0% and Greater than –0.5%		227		30.19
		752		100.00	%

70 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares Currency Hedged MSCI Germany ETF

Period Covered: January 31, 2014 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		2		0.23	%
Greater than 0.0% and Less than 0.5%		565		65.62
At NAV		63		7.32
Less than 0.0% and Greater than –0.5%		230		26.71
Less than –0.5%		1		0.12
		861		100.00	%

iShares Currency Hedged MSCI Italy ETF

Period Covered: June 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		4		0.79	%
Greater than 2.0% and Less than 2.5%		2		0.39
Greater than 1.5% and Less than 2.0%		1		0.20
Greater than 1.0% and Less than 1.5%		1		0.20
Greater than 0.5% and Less than 1.0%		5		0.99
Greater than 0.0% and Less than 0.5%		238		46.94
At NAV		24		4.73
Less than 0.0% and Greater than –0.5%		232		45.76
		507		100.00	%

iShares Currency Hedged MSCI Spain ETF

Period Covered: June 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.0%		5		0.99	%
Greater than 0.5% and Less than 1.0%		3		0.59
Greater than 0.0% and Less than 0.5%		227		44.77
At NAV		29		5.72
Less than 0.0% and Greater than –0.5%		242		47.73
Less than –0.5% and Greater than –1.0%		1		0.20
		507		100.00	%

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iSHARES^® TRUST

iShares Currency Hedged MSCI Switzerland ETF

Period Covered: June 29, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		1		0.20	%
Greater than 0.0% and Less than 0.5%		252		49.70
At NAV		52		10.26
Less than 0.0% and Greater than –0.5%		202		39.84
		507		100.00	%

72 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 344 funds (as of August 31, 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.

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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).	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 (14 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); Equity Plus Committee Chair (since 2017).	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 (62)	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); 15(c) Committee Chair (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).

74 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
John E. Martinez (56)	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).
Madhav V. Rajan (53)	Trustee (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); 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 75

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (42)	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 (55)	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 of 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.

76 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Additional Financial Information

Audited Financial Statements

August 31, 2017

iShares, Inc.

iShares MSCI Eurozone ETF  |  EZU  |  BATS

iShares MSCI Germany ETF  |  EWG  |  NYSE Arca

iShares MSCI Italy Capped ETF  |  EWI  |  NYSE Arca

iShares MSCI Spain Capped ETF  |  EWP  |  NYSE Arca

iShares MSCI Switzerland Capped ETF  |  EWL  |  NYSE Arca

Schedule of Investments

iSHARES^® MSCI EUROZONE ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 98.05%
AUSTRIA — 0.78%
Andritz AG		210,915	$	11,462,090
Erste Group Bank AG		862,804		36,410,318
OMV AG		435,150		24,982,813
Raiffeisen Bank International AGa		416,682		13,653,031
Voestalpine AG		327,185		16,956,078
				103,464,330
BELGIUM — 3.62%
Ageas		552,470		25,622,989
Anheuser-Busch InBev SA/NV		2,196,292		259,863,681
Colruyt SA		176,885		9,815,682
Groupe Bruxelles Lambert SA		228,962		23,276,917
KBC Group NV		721,300		59,196,897
Proximus SADP		443,512		15,615,728
Solvay SA		214,897		31,131,570
Telenet Group Holding NVa		154,333		10,434,873
UCB SA		365,053		25,124,915
Umicore SA		276,172		20,603,382
				480,686,634
FINLAND — 3.09%
Elisa OYJ		412,147		17,983,050
Fortum OYJ		1,297,316		23,259,065
Kone OYJ Class B		974,116		52,787,383
Metso OYJ		322,236		10,665,677
Neste OYJ		380,931		16,774,996
Nokia OYJ		16,800,343		103,964,249
Nokian Renkaat OYJ		332,657		14,044,054
Orion OYJ Class B		295,425		13,971,954
Sampo OYJ Class A		1,283,805		67,676,812
Stora Enso OYJ Class R		1,583,660		20,786,251
UPM-Kymmene OYJ		1,535,332		39,902,269
Wartsila OYJ Abp		426,671		29,396,235
				411,211,995
FRANCE — 31.82%
Accor SA		529,011		24,465,801
Aeroports de Paris		86,008		15,322,892
Air Liquide SA		1,119,645		136,508,957
Airbus SE		1,672,678		140,418,295
Alstom SA		443,128		15,739,185
Arkema SA		195,955		21,265,574
Atos SE		271,461		41,827,084
AXA SA		5,581,411		161,746,081

Security	Shares		Value
BNP Paribas SA		3,228,399	$	245,302,040
Bollore SA		2,477,108		11,491,516
Bouygues SA		611,363		27,689,319
Bureau Veritas SA		767,732		18,232,305
Capgemini SE		463,416		51,310,443
Carrefour SA		1,632,354		32,875,540
Casino Guichard Perrachon SA		158,605		9,006,826
Cie. de Saint-Gobain		1,440,370		78,901,371
Cie. Generale des Etablissements Michelin Class B		493,690		67,205,521
CNP Assurances		485,313		11,251,273
Credit Agricole SA		3,256,779		57,344,066
Danone SA		1,702,987		133,932,606
Dassault Aviation SA		7,016		10,704,414
Dassault Systemes SE		370,478		36,448,156
Edenred		636,294		17,187,444
Eiffage SA		210,881		21,762,176
Electricite de France SA		1,602,040		16,951,514
Engie SA		4,945,651		82,435,944
Essilor International SA		598,492		75,459,541
Eurazeo SA		121,730		10,056,922
Eurofins Scientific SE		31,622		18,049,542
Eutelsat Communications SA		502,591		14,588,699
Fonciere des Regions		96,594		9,539,805
Gecina SA		136,363		21,221,757
Groupe Eurotunnel SE Registered		1,335,603		15,902,796
Hermes International		90,766		47,945,146
ICADE		102,200		9,071,603
Iliad SA		76,021		19,608,229
Imerys SA		102,162		8,975,920
Ingenico Group SA		168,023		16,660,189
Ipsen SA		108,017		14,492,350
JCDecaux SA		216,935		7,093,922
Kering		218,132		81,768,963
Klepierre SA		638,232		25,685,167
L’Oreal SA		725,083		152,884,710
Lagardere SCA		342,970		11,005,358
Legrand SA		771,219		53,987,182
LVMH Moet Hennessy Louis Vuitton SE		802,722		210,196,859
Natixis SA		2,681,813		20,112,466
Orange SA		5,748,154		97,555,026
Pernod Ricard SA		613,151		83,686,319

78 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2017

Security	Shares		Value
Peugeot SA		1,477,770	$	31,158,976
Publicis Groupe SA		584,632		39,410,394
Remy Cointreau SA		64,045		7,304,404
Renault SA		511,770		45,237,744
Rexel SA		875,440		13,062,168
Safran SA		902,763		87,570,095
Sanofi		3,275,001		317,955,214
Schneider Electric SE		1,620,545		130,493,028
SCOR SE		488,497		20,443,239
SEB SA		64,629		11,725,385
SES SA		1,053,231		24,048,228
Societe BIC SA		83,595		10,033,022
Societe Generale SA		2,206,789		123,390,274
Sodexo SA		264,724		30,853,004
STMicroelectronics NV		1,839,738		31,835,621
Suez		1,111,783		21,062,855
Thales SA		305,472		33,775,322
Total SA		6,816,131		352,065,013
Unibail-Rodamco SE		287,235		72,925,946
Valeo SA		686,481		45,851,695
Veolia Environnement SA		1,407,361		32,978,984
Vinci SA		1,450,562		133,395,676
Vivendi SA		2,962,967		67,899,463
Wendel SA		81,813		12,951,159
Zodiac Aerospace		587,507		16,976,721
				4,227,278,444
GERMANY — 27.30%
adidas AG		542,765		121,670,000
Allianz SE Registered		1,315,877		281,209,076
Axel Springer SE		137,323		8,489,689
BASF SE		2,646,530		256,027,300
Bayer AG Registered		2,381,950		304,429,156
Bayerische Motoren Werke AG		952,727		88,350,338
Beiersdorf AG		292,016		31,134,894
Brenntag AG		444,897		23,545,667
Commerzbank AGa		3,059,862		37,979,346
Continental AG		316,701		71,370,438
Covestro AGb		322,404		25,302,026
Daimler AG Registered		2,773,571		201,905,749
Deutsche Bank AG Registeredc		5,958,362		95,420,045
Deutsche Boerse AG		555,657		59,317,099
Deutsche Lufthansa AG Registered		678,434		16,994,848
Deutsche Post AG Registered		2,805,854		116,238,682

Security	Shares		Value
Deutsche Telekom AG Registered		9,427,325	$	169,915,430
Deutsche Wohnen SE Bearer		1,025,572		43,504,696
E.ON SE		6,362,251		71,820,910
Evonik Industries AG		469,814		15,209,633
Fraport AG Frankfurt Airport Services Worldwide		119,848		11,810,766
Fresenius Medical Care AG & Co. KGaA		619,706		57,836,299
Fresenius SE & Co. KGaA		1,195,812		101,068,672
GEA Group AGc		528,802		23,261,620
Hannover Rueck SE		172,718		20,904,054
HeidelbergCement AG		428,089		41,047,204
Henkel AG & Co. KGaA		296,810		35,887,617
HOCHTIEF AG		55,728		9,809,051
HUGO BOSS AG		182,287		15,411,025
Infineon Technologies AG		3,266,237		75,218,116
Innogy SEb		409,994		18,047,527
K+S AG Registeredc		550,262		13,097,208
KION Group AG		199,930		18,212,319
Lanxess AG		264,078		19,669,732
Linde AG		535,289		102,492,995
MAN SE		104,477		11,714,495
Merck KGaA		371,480		40,746,849
METRO AGa,c		507,414		9,905,599
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		449,209		92,606,758
Osram Licht AG		242,411		19,880,195
ProSiebenSat.1 Media SE Registered		672,010		22,514,477
QIAGEN NV		624,296		20,006,680
RTL Group SAa		112,474		8,524,668
RWE AGa		1,500,217		37,375,489
SAP SE		2,831,600		296,587,573
Siemens AG Registered		2,204,357		287,759,327
Symrise AG		356,255		26,006,055
Telefonica Deutschland Holding AG		2,133,944		11,533,406
thyssenkrupp AG		1,055,989		31,625,158
United Internet AG Registeredc,d		353,512		20,951,468
Volkswagen AG		92,216		14,214,250
Vonovia SE		1,348,969		56,942,512

SCHEDULES OF INVESTMENTS 79

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2017

Security	Shares		Value
Zalando SEa,b,c		318,818	$	15,080,208
				3,627,584,394
IRELAND — 1.33%
Bank of Ireland Group PLCa		2,628,787		21,877,545
CRH PLC		2,389,027		83,320,581
Irish Bank Resolution Corp. Ltd.a,e		446,666		5
Kerry Group PLC Class A		461,636		42,935,659
Paddy Power Betfair PLC		231,152		20,278,709
Ryanair Holdings PLCa		42,432		900,738
Ryanair Holdings PLC ADRa		68,498		7,788,223
				177,101,460
ITALY — 7.29%
Assicurazioni Generali SpA		3,595,729		64,295,404
Atlantia SpA		1,307,392		41,967,657
CNH Industrial NV		2,949,966		33,423,740
Enel SpA		23,672,850		143,115,490
Eni SpA		7,344,565		114,999,775
EXOR NV		313,988		20,120,879
Ferrari NV		354,963		40,555,673
Fiat Chrysler Automobiles NVa		3,081,663		46,346,913
Intesa Sanpaolo SpA		36,475,456		122,984,986
Leonardo SpA		873,382		14,755,144
Luxottica Group SpA		489,282		28,125,539
Mediobanca SpA		1,631,107		16,716,096
Poste Italiane SpAb		1,527,593		11,087,623
Prysmian SpA		592,442		18,609,032
Recordati SpA		300,169		12,840,210
Saipem SpAa,c		1,779,092		6,595,074
Snam SpA		6,801,880		33,074,814
Telecom Italia SpA/Milanoa		33,092,350		31,651,828
Tenaris SA		1,377,701		18,394,156
Terna Rete Elettrica Nazionale SpA		4,293,406		25,317,964
UniCredit SpAa		5,764,346		117,121,666
UnipolSai Assicurazioni SpA		3,013,219		6,831,665
				968,931,328
NETHERLANDS — 11.41%
ABN AMRO Group NVb		1,077,351		30,151,493
Aegon NV		5,075,558		28,940,638
AerCap Holdings NVa		426,685		21,462,255
Akzo Nobel NV		728,219		66,491,842
Altice NV Class Aa,c		1,313,874		30,257,182
Altice NV Class Ba		312,606		7,219,439
ArcelorMittala		1,913,329		51,045,521

Security	Shares		Value
ASML Holding NV		1,075,282	$	166,831,489
Boskalis Westminster		261,609		8,537,686
Gemalto NVc		234,154		12,637,313
Heineken Holding NV		290,208		28,616,634
Heineken NV		665,803		69,761,315
ING Groep NV		11,182,489		198,093,345
Koninklijke Ahold Delhaize NV		3,691,413		66,269,657
Koninklijke DSM NV		523,713		39,680,982
Koninklijke KPN NV		9,862,453		34,836,357
Koninklijke Philips NV		2,679,857		101,253,642
Koninklijke Vopak NV		216,589		9,155,503
NN Group NV		898,600		35,613,283
NXP Semiconductors NVa		997,931		112,726,286
Randstad Holding NV		344,241		20,097,103
RELX NV		2,794,327		58,586,537
Unilever NV CVA		4,695,252		279,164,956
Wolters Kluwer NV		871,313		38,012,482
				1,515,442,940
PORTUGAL — 0.48%
EDP – Energias de Portugal SA		6,861,632		26,308,875
Galp Energia SGPS SA		1,338,162		22,129,977
Jeronimo Martins SGPS SA		770,015		15,343,285
				63,782,137
SPAIN — 10.73%
Abertis Infraestructuras SA		2,052,412		41,481,897
ACS Actividades de Construccion y Servicios SA		720,688		27,212,781
Aena SAb		199,167		38,845,325
Amadeus IT Group SA		1,279,517		79,209,774
Banco Bilbao Vizcaya Argentaria SA		19,272,325		170,059,226
Banco de Sabadell SA		15,555,404		34,158,070
Banco Santander SA		46,332,958		300,710,270
Bankia SA		2,979,705		14,485,568
Bankinter SA		2,062,681		19,643,086
CaixaBank SA		10,405,303		53,664,788
Distribuidora Internacional de Alimentacion SA		1,873,442		11,840,509
Enagas SA		428,279		12,604,768
Endesa SA		914,714		22,038,248
Ferrovial SA		1,443,648		32,859,566
Gas Natural SDG SA		1,009,747		24,513,958
Grifols SA		868,699		24,528,900
Iberdrola SA		16,833,566		137,312,060
Industria de Diseno Textil SA		3,170,036		120,282,980

80 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2017

Security	Shares		Value
International Consolidated Airlines Group SA		1,874,240	$	14,811,397
Mapfre SA		3,298,097		11,657,448
Red Electrica Corp. SA		825,969		18,525,319
Repsol SA		3,626,681		62,218,685
Siemens Gamesa Renewable Energy SA		720,385		10,744,358
Telefonica SA		13,150,790		141,637,170
				1,425,046,151
UNITED KINGDOM — 0.20%
Coca-Cola European Partners PLC		626,836		26,806,463
				26,806,463
TOTAL COMMON STOCKS
(Cost: $12,625,912,854)				13,027,336,276
PREFERRED STOCKS — 1.70%
GERMANY — 1.54%
Bayerische Motoren Werke AG, Preference Shares		158,457		13,128,860
Fuchs Petrolub SE, Preference Shares		199,411		11,071,619
Henkel AG & Co. KGaA, Preference Shares		515,650		68,999,455
Porsche Automobil Holding SE, Preference Shares		439,750		24,891,391
Schaeffler AG, Preference Shares		477,485		6,721,351
Volkswagen AG, Preference Shares		535,497		79,804,342
				204,617,018
ITALY — 0.16%
Intesa Sanpaolo SpA, Preference Shares		2,747,985		8,670,825
Telecom Italia SpA/Milano, Preference Shares		17,072,075		13,243,780
				21,914,605
TOTAL PREFERRED STOCKS
(Cost: $274,012,140)				226,531,623
SHORT-TERM INVESTMENTS — 0.44%
MONEY MARKET FUNDS — 0.44%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%f,g,h		57,577,483		57,594,756

Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%f,g		489,933	$	489,933
				58,084,689
TOTAL SHORT-TERM INVESTMENTS
(Cost: $58,075,651)				58,084,689
TOTAL INVESTMENTS IN SECURITIES — 100.19%
(Cost: $12,958,000,645)i				13,311,952,588
Other Assets, Less Liabilities — (0.19)%				(25,736,664	)
NET ASSETS — 100.00%			$	13,286,215,924

ADR  —  American Depositary Receipts

^a  Non-income earning security.

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

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

^d  This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^e  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^f  Affiliated issuer. See Schedule 1.

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

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

ⁱ  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $13,117,873,982. Net unrealized appreciation was $194,078,606, of which $1,110,203,700 represented gross unrealized appreciation on investments and $916,125,094 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 81

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		19,587,492		37,989,991	b		—		57,577,483	$	57,594,756	$	(2,246	)	$	9,038	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		326,934		162,999	b		—		489,933		489,933		117			—		44,595
										$	58,084,689	$	(2,129	)	$	9,038	$	44,595

^a Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	13,027,336,271	$	—	$	5	$	13,027,336,276
Preferred stocks		226,531,623		—		—		226,531,623
Money market funds		58,084,689		—		—		58,084,689
Total	$	13,311,952,583	$	—	$	5	$	13,311,952,588

See notes to financial statements.

82 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GERMANY ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 94.06%
AIR FREIGHT & LOGISTICS — 3.01%
Deutsche Post AG Registered		3,488,236	$	144,507,859
				144,507,859
AIRLINES — 0.44%
Deutsche Lufthansa AG Registered		842,240		21,098,206
				21,098,206
AUTO COMPONENTS — 1.85%
Continental AG		395,248		89,071,468
				89,071,468
AUTOMOBILES — 7.91%
Bayerische Motoren Werke AG		1,189,649		110,321,100
Daimler AG Registered		3,459,579		251,844,604
Volkswagen AG		117,035		18,039,871
				380,205,575
BANKS — 0.99%
Commerzbank AGa		3,824,809		47,473,952
				47,473,952
CAPITAL MARKETS — 4.01%
Deutsche Bank AG Registeredb		7,425,992		118,923,371
Deutsche Boerse AG		693,457		74,027,426
				192,950,797
CHEMICALS — 11.87%
BASF SE		3,300,137		319,257,732
Covestro AGc		400,176		31,405,514
Evonik Industries AG		588,042		19,037,115
K+S AG Registeredb		690,152		16,426,837
Lanxess AG		328,846		24,493,947
Linde AG		667,349		127,778,822
Symrise AG		443,103		32,345,823
				570,745,790
CONSTRUCTION & ENGINEERING — 0.25%
HOCHTIEF AG		69,458		12,225,759
				12,225,759
CONSTRUCTION MATERIALS — 1.07%
HeidelbergCement AG		534,691		51,268,709
				51,268,709
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.71%
Deutsche Telekom AG Registered		11,763,033		212,013,568
Telefonica Deutschland Holding AG		2,677,229		14,469,719
				226,483,287

Security	Shares		Value
ELECTRICAL EQUIPMENT — 0.51%
Osram Licht AG		301,366	$	24,715,112
				24,715,112
FOOD & STAPLES RETAILING — 0.26%
METRO AGa		642,570		12,544,078
				12,544,078
HEALTH CARE PROVIDERS & SERVICES — 4.12%
Fresenius Medical Care AG & Co. KGaA		772,748		72,119,496
Fresenius SE & Co. KGaA		1,491,984		126,100,793
				198,220,289
HOUSEHOLD PRODUCTS — 0.94%
Henkel AG & Co. KGaA		373,385		45,146,383
				45,146,383
INDUSTRIAL CONGLOMERATES — 7.46%
Siemens AG Registered		2,748,681		358,816,015
				358,816,015
INSURANCE — 10.23%
Allianz SE Registered		1,642,023		350,908,003
Hannover Rueck SE		216,656		26,221,869
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		556,939		114,815,854
				491,945,726
INTERNET & DIRECT MARKETING RETAIL — 0.39%
Zalando SEa,b,c		400,557		18,946,493
				18,946,493
INTERNET SOFTWARE & SERVICES — 0.55%
United Internet AG Registeredb,d		441,943		26,192,476
				26,192,476
LIFE SCIENCES TOOLS & SERVICES — 0.51%
QIAGEN NV		770,958		24,706,726
				24,706,726
MACHINERY — 1.38%
GEA Group AG		657,062		28,903,685
KION Group AG		256,161		23,334,597
MAN SE		126,852		14,223,294
				66,461,576
MEDIA — 1.03%
Axel Springer SE		175,087		10,824,364
ProSiebenSat.1 Media SE Registered		837,180		28,048,198
RTL Group SAa		139,660		10,585,159
				49,457,721

SCHEDULES OF INVESTMENTS 83

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2017

Security	Shares		Value
METALS & MINING — 0.82%
thyssenkrupp AG		1,321,737	$	39,583,879
				39,583,879
MULTI-UTILITIES — 3.28%
E.ON SE		7,908,644		89,277,524
Innogy SEc		499,034		21,966,979
RWE AGa		1,861,812		46,384,046
				157,628,549
PERSONAL PRODUCTS — 0.80%
Beiersdorf AG		362,179		38,615,708
				38,615,708
PHARMACEUTICALS — 8.95%
Bayer AG Registered		2,971,262		379,747,175
Merck KGaA		464,374		50,936,193
				430,683,368
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.61%
Deutsche Wohnen SE Bearer		1,274,316		54,056,400
Vonovia SE		1,693,315		71,478,003
				125,534,403
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.95%
Infineon Technologies AG		4,079,495		93,946,621
				93,946,621
SOFTWARE — 7.69%
SAP SE		3,531,259		369,871,287
				369,871,287
TEXTILES, APPAREL & LUXURY GOODS — 3.55%
adidas AG		676,553		151,660,855
HUGO BOSS AG		228,114		19,285,360
				170,946,215
TRADING COMPANIES & DISTRIBUTORS — 0.61%
Brenntag AG		555,125		29,379,358
				29,379,358
TRANSPORTATION INFRASTRUCTURE — 0.31%
Fraport AG Frankfurt Airport Services Worldwide		149,822		14,764,640
				14,764,640
TOTAL COMMON STOCKS
(Cost: $4,602,259,050)				4,524,138,025

Security	Shares		Value
PREFERRED STOCKS — 5.30%
AUTO COMPONENTS — 0.18%
Schaeffler AG, Preference Shares		595,179	$	8,378,079
				8,378,079
AUTOMOBILES — 3.05%
Bayerische Motoren Werke AG, Preference Shares		197,714		16,381,476
Porsche Automobil Holding SE, Preference Shares		550,186		31,142,455
Volkswagen AG, Preference Shares		666,816		99,374,622
				146,898,553
CHEMICALS — 0.29%
Fuchs Petrolub SE, Preference Shares		250,125		13,887,342
				13,887,342
HOUSEHOLD PRODUCTS — 1.78%
Henkel AG & Co. KGaA, Preference Shares		640,148		85,658,611
				85,658,611
TOTAL PREFERRED STOCKS
(Cost: $322,283,034)				254,822,585
SHORT-TERM INVESTMENTS — 1.46%
MONEY MARKET FUNDS — 1.46%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%e,f,g		69,810,722		69,831,666
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%e,f		589,306		589,306
				70,420,972
TOTAL SHORT-TERM INVESTMENTS
(Cost: $70,420,972)				70,420,972

84 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.82%
(Cost: $4,994,963,056)h	$	4,849,381,582
Other Assets, Less Liabilities — (0.82)%		(39,482,086	)
NET ASSETS — 100.00%	$	4,809,899,496

^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  This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^e  Affiliated issuer. See Schedule 1.

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

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

^h  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $5,074,662,756. Net unrealized depreciation was $225,281,174, of which $436,471,892 represented gross unrealized appreciation on investments and $661,753,066 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		69,810,722	b		—		69,810,722	$	69,831,666	$	(9,056	)	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		33,859		555,447	b		—		589,306		589,306		97			—		18,373
										$	70,420,972	$	(8,959	)	$	—	$	18,373

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description	Number of contracts		Expiration date		Notional amount (000)		Value / unrealized appreciation (depreciation)
Long Contracts:
DAX Index		2,125		Sep 2017	$	30,484	$	(1,550,396	)

SCHEDULES OF INVESTMENTS 85

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2017

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 August 31, 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	$	4,524,138,025		$	—	$	—	$	4,524,138,025
Preferred stocks		254,822,585			—		—		254,822,585
Money market funds		70,420,972			—		—		70,420,972
Total	$	4,849,381,582		$	—	$	—	$	4,849,381,582
Derivative financial instrumentsa:
Liabilities:
Futures contracts	$	(1,550,396	)	$	—	$	—	$	(1,550,396	)
Total	$	(1,550,396	)	$	—	$	—	$	(1,550,396	)

^a  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

86 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI ITALY CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 97.86%
AEROSPACE & DEFENSE — 2.05%
Leonardo SpA		1,020,041	$	17,232,840
				17,232,840
AUTOMOBILES — 9.18%
Ferrari NV		334,176		38,180,691
Fiat Chrysler Automobiles NVa		2,591,796		38,979,519
				77,160,210
BANKS — 23.58%
Intesa Sanpaolo SpA		27,069,073		91,269,306
Mediobanca SpA		1,953,964		20,024,836
UniCredit SpAa		4,279,599		86,954,143
				198,248,285
DIVERSIFIED FINANCIAL SERVICES — 2.78%
EXOR NV		365,043		23,392,570
				23,392,570
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.18%
Telecom Italia SpA/Milanoa		27,952,870		26,736,071
				26,736,071
ELECTRIC UTILITIES — 16.02%
Enel SpA		17,713,055		107,085,228
Terna Rete Elettrica Nazionale SpA		4,675,802		27,572,931
				134,658,159
ELECTRICAL EQUIPMENT — 2.47%
Prysmian SpA		661,609		20,781,618
				20,781,618
ENERGY EQUIPMENT & SERVICES — 3.22%
Saipem SpAa		2,090,205		7,748,366
Tenaris SA		1,444,369		19,284,263
				27,032,629
INSURANCE — 7.50%
Assicurazioni Generali SpA		2,105,921		37,656,075
Poste Italiane SpAb		1,973,164		14,321,681
UnipolSai Assicurazioni SpA		4,889,293		11,085,158
				63,062,914
MACHINERY — 4.11%
CNH Industrial NV		3,045,323		34,504,155
				34,504,155
OIL, GAS & CONSUMABLE FUELS — 14.18%
Eni SpA		5,410,221		84,712,192
Snam SpA		7,099,481		34,521,928
				119,234,120

Security	Shares		Value
PHARMACEUTICALS — 1.58%
Recordati SpA		309,405	$	13,235,295
				13,235,295
TEXTILES, APPAREL & LUXURY GOODS — 3.49%
Luxottica Group SpA		510,794		29,362,120
				29,362,120
TRANSPORTATION INFRASTRUCTURE — 4.52%
Atlantia SpA		1,184,445		38,021,023
				38,021,023
TOTAL COMMON STOCKS
(Cost: $816,852,478)				822,662,009
PREFERRED STOCKS — 2.00%
BANKS — 0.67%
Intesa Sanpaolo SpA, Preference Shares		1,791,276		5,652,084
				5,652,084
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.33%
Telecom Italia SpA/Milano, Preference Shares		14,335,370		11,120,762
				11,120,762
TOTAL PREFERRED STOCKS
(Cost: $17,698,041)				16,772,846
SHORT-TERM INVESTMENTS — 0.12%
MONEY MARKET FUNDS — 0.12%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		998,621		998,621
				998,621
TOTAL SHORT-TERM INVESTMENTS
(Cost: $998,621)				998,621

SCHEDULES OF INVESTMENTS 87

Schedule of Investments (Continued)

iSHARES^® MSCI ITALY CAPPED ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 99.98%
(Cost: $835,549,140)e	$	840,433,476
Other Assets, Less Liabilities — 0.02%		196,951
NET ASSETS — 100.00%	$	840,630,427

^a  Non-income earning security.

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c  Affiliated issuer. See Schedule 1.

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

^e  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $862,509,205. Net unrealized depreciation was $22,075,729, of which $73,325,109 represented gross unrealized appreciation on investments and $95,400,838 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		14,628,660		—			(14,628,660	)b		—	$	—	$	2,698	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		160,632		837,989	b		—			998,621		998,621		26		—		2,965
											$	998,621	$	2,724	$	—	$	2,965

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	822,662,009	$	—	$	—	$	822,662,009
Preferred stocks		16,772,846		—		—		16,772,846
Money market funds		998,621		—		—		998,621
Total	$	840,433,476	$	—	$	—	$	840,433,476

See notes to financial statements.

88 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SPAIN CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 100.53%
AIRLINES — 1.97%
International Consolidated Airlines Group SA		3,813,639	$	30,137,720
				30,137,720
BANKS — 41.18%
Banco Bilbao Vizcaya Argentaria SA		17,676,186		155,974,877
Banco de Sabadell SA		21,932,076		48,160,587
Banco Santander SA		45,156,706		293,076,156
Bankia SA		5,615,320		27,298,373
Bankinter SA		3,822,157		36,398,725
CaixaBank SA		13,283,984		68,511,430
				629,420,148
BIOTECHNOLOGY — 2.43%
Grifols SA		1,313,306		37,082,985
				37,082,985
CONSTRUCTION & ENGINEERING — 6.30%
ACS Actividades de Construccion y Servicios SA		1,129,208		42,638,270
Ferrovial SA		2,356,596		53,639,614
				96,277,884
DIVERSIFIED TELECOMMUNICATION SERVICES — 8.62%
Telefonica SA		12,229,692		131,716,723
				131,716,723
ELECTRIC UTILITIES — 8.17%
Endesa SA		1,386,270		33,399,470
Iberdrola SA		8,813,106		71,888,852
Red Electrica Corp. SA		873,821		19,598,572
				124,886,894
ELECTRICAL EQUIPMENT — 1.47%
Siemens Gamesa Renewable Energy SA		1,503,589		22,425,645
				22,425,645
FOOD & STAPLES RETAILING — 1.71%
Distribuidora Internacional de Alimentacion SAa		4,139,080		26,159,771
				26,159,771
GAS UTILITIES — 2.46%
Gas Natural SDG SA		1,550,505		37,642,118
				37,642,118
INSURANCE — 1.58%
Mapfre SA		6,842,370		24,185,028
				24,185,028

Security	Shares		Value
IT SERVICES — 4.99%
Amadeus IT Group SA		1,231,641	$	76,245,963
				76,245,963
OIL, GAS & CONSUMABLE FUELS — 5.56%
Enagas SA		495,005		14,568,594
Repsol SA		4,103,988		70,407,278
				84,975,872
SPECIALTY RETAIL — 5.58%
Industria de Diseno Textil SA		2,249,043		85,337,074
				85,337,074
TRANSPORTATION INFRASTRUCTURE — 8.51%
Abertis Infraestructuras SA		3,305,546		66,809,353
Aena SAb		324,748		63,338,512
				130,147,865
TOTAL COMMON STOCKS
(Cost: $1,548,878,599)				1,536,641,690
SHORT-TERM INVESTMENTS — 0.76%
MONEY MARKET FUNDS — 0.76%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%c,d,e		10,256,664		10,259,741
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		1,301,695		1,301,695
				11,561,436
TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,561,436)				11,561,436
TOTAL INVESTMENTS IN SECURITIES — 101.29%
(Cost: $1,560,440,035)f				1,548,203,126
Other Assets, Less Liabilities — (1.29)%				(19,669,635	)
NET ASSETS — 100.00%			$	1,528,533,491

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

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c  Affiliated issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $1,588,881,971. Net unrealized depreciation was $40,678,845, of which $91,694,062 represented gross unrealized appreciation on investments and $132,372,907 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 89

Schedule of Investments (Continued)

iSHARES^® MSCI SPAIN CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		61,979		10,194,685	b		—		10,256,664	$	10,259,741	$	144	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		7,135		1,294,560	b		—		1,301,695		1,301,695		1		—		5,263
										$	11,561,436	$	145	$	—	$	5,263

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	1,536,641,690	$	—	$	—	$	1,536,641,690
Money market funds		11,561,436		—		—		11,561,436
Total	$	1,548,203,126	$	—	$	—	$	1,548,203,126

See notes to financial statements.

90 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SWITZERLAND CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 98.66%
BUILDING PRODUCTS — 1.71%
Geberit AG Registered		47,311	$	21,568,105
				21,568,105
CAPITAL MARKETS — 10.26%
Credit Suisse Group AG Registered		2,831,569		41,545,393
Julius Baer Group Ltd.		305,216		17,023,494
Partners Group Holding AG		24,259		15,701,455
UBS Group AG		3,338,440		54,887,983
				129,158,325
CHEMICALS — 4.23%
EMS-Chemie Holding AG Registered		13,847		9,445,066
Givaudan SA Registered		11,610		23,679,084
Sika AG Bearer		2,842		20,109,886
				53,234,036
CONSTRUCTION MATERIALS — 2.54%
LafargeHolcim Ltd. Registered		546,272		32,031,662
				32,031,662
DIVERSIFIED FINANCIAL SERVICES — 0.55%
Pargesa Holding SA Bearer		85,233		6,891,367
				6,891,367
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.40%
Swisscom AG Registered		35,050		17,638,064
				17,638,064
ELECTRICAL EQUIPMENT — 4.19%
ABB Ltd. Registered		2,283,322		52,746,877
				52,746,877
FOOD PRODUCTS — 21.64%
Barry Callebaut AG Registered		4,850		6,964,620
Chocoladefabriken Lindt & Spruengli AG Participation Certificates		1,731		9,906,868
Chocoladefabriken Lindt & Spruengli AG Registered		161		11,176,181
Nestle SA Registered		2,888,768		244,538,269
				272,585,938
HEALTH CARE EQUIPMENT & SUPPLIES — 1.87%
Sonova Holding AG Registered		76,973		12,983,687
Straumann Holding AG Registered		16,510		10,557,123
				23,540,810
INSURANCE — 9.11%
Baloise Holding AG Registered		76,326		12,127,971
Swiss Life Holding AG Registered		44,789		15,995,406

Security	Shares		Value
Swiss Re AG		385,213	$	34,813,474
Zurich Insurance Group AG		173,333		51,747,386
				114,684,237
LIFE SCIENCES TOOLS & SERVICES — 1.95%
Lonza Group AG Registered		97,094		24,531,138
				24,531,138
MACHINERY — 1.67%
Schindler Holding AG Participation Certificates		60,182		12,863,041
Schindler Holding AG Registered		38,829		8,141,565
				21,004,606
MARINE — 1.14%
Kuehne + Nagel International AG Registered		79,270		14,327,991
				14,327,991
PHARMACEUTICALS — 26.00%
Novartis AG Registered		1,945,630		163,789,248
Roche Holding AG		610,815		154,769,461
Vifor Pharma AG		87,570		8,829,899
				327,388,608
PROFESSIONAL SERVICES — 2.60%
Adecco Group AG Registered		223,105		16,135,065
SGS SA Registered		7,448		16,608,808
				32,743,873
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.83%
Swiss Prime Site AG Registered		116,080		10,484,645
				10,484,645
SPECIALTY RETAIL — 0.74%
Dufry AG Registereda		60,372		9,285,100
				9,285,100
TEXTILES, APPAREL & LUXURY GOODS — 6.23%
Cie. Financiere Richemont SA Class A Registered		599,474		53,491,046
Swatch Group AG (The) Bearer		42,068		16,757,160
Swatch Group AG (The) Registered		106,695		8,254,707
				78,502,913
TOTAL COMMON STOCKS
(Cost: $1,238,439,696)				1,242,348,295

SCHEDULES OF INVESTMENTS 91

Schedule of Investments (Continued)

iSHARES^® MSCI SWITZERLAND CAPPED ETF

August 31, 2017

Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.05%
MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		609,567	$	609,567
				609,567
TOTAL SHORT-TERM INVESTMENTS
(Cost: $609,567)				609,567

	Value
TOTAL INVESTMENTS IN SECURITIES — 98.71%	$	1,242,957,862
(Cost: $1,239,049,263)d
Other Assets, Less Liabilities — 1.29%		16,299,801
NET ASSETS — 100.00%	$	1,259,257,663

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,249,460,071. Net unrealized depreciation was $6,502,209, of which $83,840,333 represented gross unrealized appreciation on investments and $90,342,542 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		4,549,701		—			(4,549,701	)b		—	$	—	$	2,101	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		51,921		557,646	b		—			609,567		609,567		—		—		21,271
											$	609,567	$	2,101	$	—	$	21,271

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	1,242,348,295	$	—	$	—	$	1,242,348,295
Money market funds		609,567		—		—		609,567
Total	$	1,242,957,862	$	—	$	—	$	1,242,957,862

See notes to financial statements.

92 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017

	iShares MSCI Eurozone ETF			iShares MSCI Germany ETF			iShares MSCI Italy Capped ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	12,899,924,994		$	4,924,542,084		$	834,550,519
Affiliated (Note 2)		58,075,651			70,420,972			998,621
Total cost of investments in securities	$	12,958,000,645		$	4,994,963,056		$	835,549,140
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	13,253,867,899		$	4,778,960,610		$	839,434,855
Affiliated (Note 2)		58,084,689			70,420,972			998,621
Foreign currency, at valueb		13,350,004			7,355,329			614,079
Foreign currency pledged to broker for futures contracts, at valueb		—			3,881,772			—
Cash		40,000			—			—
Receivables:
Investment securities sold		30,144,142			22,567,773			11,360,727
Dividends and interest		4,341,528			27,143			680
Capital shares sold		—			—			202,127
Tax reclaims		17,201,312			23,295,580			—
Foreign withholding tax claims (Note 8)		4,043,205			—			—
Total Assets		13,381,072,779			4,906,509,179			852,611,089
LIABILITIES
Payables:
Investment securities purchased		31,804,018			23,106,865			11,660,502
Collateral for securities on loan (Note 1)		57,587,964			69,840,663			—
Capital shares redeemed		—			127,225			—
Futures variation margin		—			1,550,396			—
Professional fees (Note 8)		40,432			—			—
Investment advisory fees (Note 2)		5,424,441			1,984,534			320,160
Total Liabilities		94,856,855			96,609,683			11,980,662
NET ASSETS	$	13,286,215,924		$	4,809,899,496		$	840,630,427
Net assets consist of:
Paid-in capital	$	13,410,843,727		$	5,155,615,683		$	1,069,525,658
Undistributed net investment income		39,606,657			11,828,547			1,810,109
Accumulated net realized loss		(519,745,406	)		(212,047,338	)		(235,594,712	)
Net unrealized appreciation (depreciation)		355,510,946			(145,497,396	)		4,889,372
NET ASSETS	$	13,286,215,924		$	4,809,899,496		$	840,630,427
Shares outstandingc		318,500,000			156,600,000			27,825,000	d
Net asset value per share	$	41.71		$	30.71		$	30.21	d

^a  Securities on loan with values of $55,007,154, $66,582,730 and $  —, respectively. See Note 1.

^b  Cost of foreign currency including currency pledged to broker for futures contracts: $13,179,255, $11,108,942 and $609,043, respectively.

^c  $0.001 par value, number of shares authorized: 1 billion, 482.2 million and 295.4 million, respectively.

^d  Shares outstanding and net asset value per share reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.

FINANCIAL STATEMENTS 93

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017

	iShares MSCI Spain Capped ETF			iShares MSCI Switzerland Capped ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	1,548,878,599		$	1,238,439,696
Affiliated (Note 2)		11,561,436			609,567
Total cost of investments in securities	$	1,560,440,035		$	1,239,049,263
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	1,536,641,690		$	1,242,348,295
Affiliated (Note 2)		11,561,436			609,567
Foreign currency, at valueb		972,456			498,655
Receivables:
Investment securities sold		35,253,025			5,328,072
Due from custodian (Note 4)		3,143,236			—
Dividends and interest		3,716			706
Tax reclaims		163,483			16,460,233
Total Assets		1,587,739,042			1,265,245,528
LIABILITIES
Payables:
Investment securities purchased		48,334,156			5,475,947
Collateral for securities on loan (Note 1)		10,259,596			—
Investment advisory fees (Note 2)		611,799			511,918
Total Liabilities		59,205,551			5,987,865
NET ASSETS	$	1,528,533,491		$	1,259,257,663
Net assets consist of:
Paid-in capital	$	1,725,159,411		$	1,327,263,770
Undistributed (distributions in excess of) net investment income		9,343,831			(369,308	)
Accumulated net realized loss		(193,739,741	)		(71,485,412	)
Net unrealized appreciation (depreciation)		(12,230,010	)		3,848,613
NET ASSETS	$	1,528,533,491		$	1,259,257,663
Shares outstandingc		45,450,000			36,750,000
Net asset value per share	$	33.63		$	34.27

^a Securities on loan with values of $9,678,000 and $  —, respectively. See Note 1.

^b  Cost of foreign currency: $967,256 and $492,153, respectively.

^c  $0.001 par value, number of shares authorized: 127.8 million and 318.625 million, respectively.

See notes to financial statements.

94 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017

	iShares MSCI Eurozone ETF			iShares MSCI Germany ETF			iShares MSCI Italy Capped ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	268,906,708		$	110,229,901		$	17,275,840
Dividends — affiliated (Note 2)		44,595			18,373			2,965
Miscellaneous income		48,171			—			—
Securities lending income — affiliated — net (Note 2)		1,778,062			194,790			92,308
Non-cash dividends — unaffiliated		25,509,129			—			—
Total investment income		296,286,665			110,443,064			17,371,113
EXPENSES
Investment advisory fees (Note 2)		46,002,461			20,888,860			2,740,989
Proxy fees		227,864			102,578			12,588
Professional fees (Note 8)		16,921			—			—
Total expenses		46,247,246			20,991,438			2,753,577
Net investment income		250,039,419			89,451,626			14,617,536
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(89,475,613	)		(44,627,794	)		(59,844,908	)
Investments — affiliated (Note 2)		(2,246	)		(9,056	)		2,698
In-kind redemptions — unaffiliated		(21,163,911	)		119,852,645			15,443,907
Futures contracts		—			5,815,831			—
Foreign currency transactions		3,109,868			963,220			(263,288	)
Realized gain distributions from affiliated funds		117			97			26
Net realized gain (loss)		(107,531,785	)		81,994,943			(44,661,565	)
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		1,979,399,835			641,599,657			222,000,159
Investments — affiliated (Note 2)		9,038			—			—
Futures contracts		—			(3,577,429	)		—
Translation of assets and liabilities in foreign currencies		1,842,017			1,949,104			5,218
Net change in unrealized appreciation/depreciation		1,981,250,890			639,971,332			222,005,377
Net realized and unrealized gain		1,873,719,105			721,966,275			177,343,812
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,123,758,524		$	811,417,901		$	191,961,348

^a  Net of foreign withholding tax of $38,237,983, $15,988,544 and $2,869,734, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 95

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017

	iShares MSCI Spain Capped ETF			iShares MSCI Switzerland Capped ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	21,640,607		$	29,207,979
Dividends — affiliated (Note 2)		5,263			21,271
Securities lending income — affiliated — net (Note 2)		170,247			44,579
Non-cash dividends — unaffiliated		12,507,166			—
Total investment income		34,323,283			29,273,829
EXPENSES
Investment advisory fees (Note 2)		4,632,509			5,322,718
Proxy fees		27,036			24,153
Total expenses		4,659,545			5,346,871
Net investment income		29,663,738			23,926,958
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(78,244,658	)		13,177,537
Investments — affiliated (Note 2)		144			2,101
In-kind redemptions — unaffiliated		656,425			17,133,923
Foreign currency transactions		648,061			(10,194	)
Realized gain distributions from affiliated funds		1			—
Net realized gain (loss)		(76,940,027	)		30,303,367
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		304,897,126			106,435,804
Translation of assets and liabilities in foreign currencies		11,817			448,170
Net change in unrealized appreciation/depreciation		304,908,943			106,883,974
Net realized and unrealized gain		227,968,916			137,187,341
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	257,632,654		$	161,114,299

^a  Net of foreign withholding tax of $3,792,832 and $5,392,231, respectively.

See notes to financial statements.

96 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.

	iShares MSCI Eurozone ETF						iShares MSCI Germany ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	250,039,419		$	313,780,162		$	89,451,626		$	96,825,243
Net realized gain (loss)		(107,531,785	)		(353,696,400	)		81,994,943			(202,576,200	)
Net change in unrealized appreciation/depreciation		1,981,250,890			(558,972,719	)		639,971,332			36,790,914
Net increase (decrease) in net assets resulting from operations		2,123,758,524			(598,888,957	)		811,417,901			(68,960,043	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(251,508,888	)		(293,025,178	)		(101,663,169	)		(97,625,093	)
Total distributions to shareholders		(251,508,888	)		(293,025,178	)		(101,663,169	)		(97,625,093	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		5,075,719,442			5,702,626,726			1,344,475,553			800,372,366
Cost of shares redeemed		(1,955,344,002	)		(6,651,737,571	)		(841,232,745	)		(3,643,941,594	)
Net increase (decrease) in net assets from capital share transactions		3,120,375,440			(949,110,845	)		503,242,808			(2,843,569,228	)
INCREASE (DECREASE) IN NET ASSETS		4,992,625,076			(1,841,024,980	)		1,212,997,540			(3,010,154,364	)
NET ASSETS
Beginning of year		8,293,590,848			10,134,615,828			3,596,901,956			6,607,056,320
End of year	$	13,286,215,924		$	8,293,590,848		$	4,809,899,496		$	3,596,901,956
Undistributed net investment income included in net assets at end of year	$	39,606,657		$	25,909,364		$	11,828,547		$	—
SHARES ISSUED AND REDEEMED
Shares sold		130,800,000			161,500,000			47,700,000			32,400,000
Shares redeemed		(54,800,000	)		(200,200,000	)		(28,500,000	)		(145,800,000	)
Net increase (decrease) in shares outstanding		76,000,000			(38,700,000	)		19,200,000			(113,400,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 97

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC

	iShares MSCI Italy Capped ETF						iShares MSCI Spain Capped ETF
	Year ended August 31, 2017a			Year ended August 31, 2016a			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	14,617,536		$	22,596,515		$	29,663,738		$	38,911,804
Net realized loss		(44,661,565	)		(168,394,983	)		(76,940,027	)		(282,574,356	)
Net change in unrealized appreciation/depreciation		222,005,377			(101,942,406	)		304,908,943			22,989,683
Net increase (decrease) in net assets resulting from operations		191,961,348			(247,740,874	)		257,632,654			(220,672,869	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(15,689,552	)		(22,347,848	)		(28,748,503	)		(41,241,786	)
Return of capital		—			(780,522	)		—			—
Total distributions to shareholders		(15,689,552	)		(23,128,370	)		(28,748,503	)		(41,241,786	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		478,934,035			265,361,545			827,558,231			42,497,240
Cost of shares redeemed		(275,606,026	)		(610,898,923	)		(127,852,787	)		(846,729,289	)
Net increase (decrease) in net assets from capital share transactions		203,328,009			(345,537,378	)		699,705,444			(804,232,049	)
INCREASE (DECREASE) IN NET ASSETS		379,599,805			(616,406,622	)		928,589,595			(1,066,146,704	)
NET ASSETS
Beginning of year		461,030,622			1,077,437,244			599,943,896			1,666,090,600
End of year	$	840,630,427		$	461,030,622		$	1,528,533,491		$	599,943,896
Undistributed net investment income included in net assets at end of year	$	1,810,109		$	—		$	9,343,831		$	7,780,534
SHARES ISSUED AND REDEEMED
Shares sold		20,625,000			8,925,000			27,300,000			1,500,000
Shares redeemed		(13,200,000	)		(25,050,000	)		(4,500,000	)		(30,975,000	)
Net increase (decrease) in shares outstanding		7,425,000			(16,125,000	)		22,800,000			(29,475,000	)

^a  Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.

98 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.

	iShares MSCI Switzerland Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	23,926,958		$	30,735,996
Net realized gain (loss)		30,303,367			(11,354,929	)
Net change in unrealized appreciation/depreciation		106,883,974			(51,909,400	)
Net increase (decrease) in net assets resulting from operations		161,114,299			(32,528,333	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(25,105,668	)		(29,917,479	)
Total distributions to shareholders		(25,105,668	)		(29,917,479	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		196,663,250			179,880,379
Cost of shares redeemed		(165,149,192	)		(225,863,531	)
Net increase (decrease) in net assets from capital share transactions		31,514,058			(45,983,152	)
INCREASE (DECREASE) IN NET ASSETS		167,522,689			(108,428,964	)
NET ASSETS
Beginning of year		1,091,734,974			1,200,163,938
End of year	$	1,259,257,663		$	1,091,734,974
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(369,308	)	$	510,619
SHARES ISSUED AND REDEEMED
Shares sold		5,875,000			5,875,000
Shares redeemed		(5,250,000	)		(7,375,000	)
Net increase (decrease) in shares outstanding		625,000			(1,500,000	)

See notes to financial statements.

FINANCIAL STATEMENTS 99

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Eurozone ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	34.20		$	36.04		$	39.98		$	34.64		$	29.09
Income from investment operations:
Net investment incomea		0.99			0.92	b		0.96			1.18			0.92
Net realized and unrealized gain (loss)c		7.38			(1.84	)		(3.95	)		5.10			5.55
Total from investment operations		8.37			(0.92	)		(2.99	)		6.28			6.47
Less distributions from:
Net investment income		(0.86	)		(0.92	)		(0.95	)		(0.94	)		(0.92	)
Total distributions		(0.86	)		(0.92	)		(0.95	)		(0.94	)		(0.92	)
Net asset value, end of year	$	41.71		$	34.20		$	36.04		$	39.98		$	34.64
Total return		24.72	%		(2.53	)%b		(7.62	)%		18.02	%		22.43	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	13,286,216		$	8,293,591		$	10,134,616		$	8,702,637		$	3,539,980
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 8)		0.49	%		0.48	%		n/a			n/a			n/a
Ratio of net investment income to average net assets		2.63	%		2.69	%b		2.50	%		2.89	%		2.74	%
Portfolio turnover rated		4	%		4	%		5	%		7	%		5	%

^a  Based on average shares outstanding throughout each period.

^b  Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees (See Note 8), which resulted in the following increases for the year ended August 31, 2016:

• Net investment income per share by $0.02.

• Total return by 0.08%.

• Ratio of net investment income to average net assets by 0.06%.

^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.

100 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Germany ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	26.18		$	26.34		$	28.97		$	25.61		$	21.34
Income from investment operations:
Net investment incomea		0.59			0.49			0.58			0.59			0.46
Net realized and unrealized gain (loss)b		4.54			(0.04	)		(2.70	)		3.40			4.24
Total from investment operations		5.13			0.45			(2.12	)		3.99			4.70
Less distributions from:
Net investment income		(0.60	)		(0.61	)		(0.51	)		(0.63	)		(0.43	)
Total distributions		(0.60	)		(0.61	)		(0.51	)		(0.63	)		(0.43	)
Net asset value, end of year	$	30.71		$	26.18		$	26.34		$	28.97		$	25.61
Total return		19.63	%		1.81	%		(7.50	)%		15.41	%		22.11	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	4,809,899		$	3,596,902		$	6,607,056		$	4,797,434		$	4,655,875
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		2.08	%		1.90	%		2.03	%		1.95	%		1.88	%
Portfolio turnover ratec		3	%		3	%		3	%		6	%		4	%

^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 101

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Italy Capped ETF
	Year ended Aug. 31, 2017a			Year ended Aug. 31, 2016a			Year ended Aug. 31, 2015a			Year ended Aug. 31, 2014a			Year ended Aug. 31, 2013a
Net asset value, beginning of year	$	22.60		$	29.50		$	32.03		$	26.12		$	23.57
Income from investment operations:
Net investment incomeb		0.57			0.66			0.70			0.82			0.72
Net realized and unrealized gain (loss)c		7.76			(6.82	)		(2.49	)		5.77			2.45
Total from investment operations		8.33			(6.16	)		(1.79	)		6.59			3.17
Less distributions from:
Net investment income		(0.72	)		(0.72	)		(0.74	)		(0.68	)		(0.60	)
Return of capital		—			(0.02	)		—			—			(0.02	)
Total distributions		(0.72	)		(0.74	)		(0.74	)		(0.68	)		(0.62	)
Net asset value, end of year	$	30.21		$	22.60		$	29.50		$	32.03		$	26.12
Total return		37.37	%		(20.97	)%		(5.66	)%		25.20	%		13.58	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	840,630		$	461,031		$	1,077,437		$	1,556,860		$	717,122
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		2.59	%		2.54	%		2.34	%		2.49	%		2.78	%
Portfolio turnover rated		18	%		16	%		22	%		24	%		45	%

^a  Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

^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  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.

102 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Spain Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	26.49		$	31.96		$	40.61		$	30.44		$	26.28
Income from investment operations:
Net investment incomea		0.94			1.00			1.32			1.80			1.33
Net realized and unrealized gain (loss)b		7.19			(5.40	)		(8.35	)		9.53			4.07
Total from investment operations		8.13			(4.40	)		(7.03	)		11.33			5.40
Less distributions from:
Net investment income		(0.99	)		(1.07	)		(1.62	)		(1.16	)		(1.24	)
Total distributions		(0.99	)		(1.07	)		(1.62	)		(1.16	)		(1.24	)
Net asset value, end of year	$	33.63		$	26.49		$	31.96		$	40.61		$	30.44
Total return		31.48	%		(13.82	)%		(17.63	)%		37.39	%		20.88	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,528,533		$	599,944		$	1,666,091		$	2,473,038		$	417,778
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		3.10	%		3.53	%		3.70	%		4.48	%		4.45	%
Portfolio turnover ratec		16	%		9	%		15	%		15	%		24	%

^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 103

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)

	iShares MSCI Switzerland Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	30.22		$	31.90		$	33.64		$	29.36		$	23.85
Income from investment operations:
Net investment incomea		0.69			0.81			0.83			0.80			0.67
Net realized and unrealized gain (loss)b		4.11			(1.70	)		(1.77	)		4.27			5.44
Total from investment operations		4.80			(0.89	)		(0.94	)		5.07			6.11
Less distributions from:
Net investment income		(0.75	)		(0.79	)		(0.80	)		(0.79	)		(0.60	)
Total distributions		(0.75	)		(0.79	)		(0.80	)		(0.79	)		(0.60	)
Net asset value, end of year	$	34.27		$	30.22		$	31.90		$	33.64		$	29.36
Total return		15.90	%		(2.76	)%		(2.92	)%		17.21	%		25.71	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,259,258		$	1,091,735		$	1,200,164		$	1,072,157		$	902,860
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		2.18	%		2.68	%		2.49	%		2.41	%		2.38	%
Portfolio turnover ratec		13	%		6	%		7	%		5	%		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.

104 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

iSHARES^®, INC.

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to Articles of Incorporation as subsequently amended and restated.

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

iShares ETF	Diversification Classification
MSCI Eurozone	Diversified
MSCI Germany	Non-diversified
MSCI Italy Capped	Non-diversified
MSCI Spain Capped	Non-diversified
MSCI Switzerland Capped	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 Company’s organizational documents, the Funds’ officers and directors 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 Directors of the Company (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.

NOTES TO FINANCIAL STATEMENTS 105

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

• Futures contract notional values are determined based on 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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 Company’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 to valuation techniques are categorized into a fair value 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.

106 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. In accordance with the Company’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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax 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 August 31, 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.

NOTES TO FINANCIAL STATEMENTS 107

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original 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.

108 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount  b
MSCI Eurozone
Goldman Sachs & Co.	$	1,526,182	$	1,526,182	$	—
Morgan Stanley & Co. LLC		42,095,238		42,095,238		—
State Street Bank & Trust Company		7,850,371		7,850,371		—
UBS AG		3,535,363		3,529,114		(6,249	)
	$	55,007,154	$	55,000,905	$	(6,249	)
MSCI Germany
Credit Suisse Securities (USA) LLC	$	5,227,163	$	5,227,163	$	—
Goldman Sachs & Co.		3,460,164		3,460,164		—
Morgan Stanley & Co. LLC		43,226,851		43,226,851		—
State Street Bank & Trust Company		14,668,552		14,668,552		—
	$	66,582,730	$	66,582,730	$	—
MSCI Spain Capped
Morgan Stanley & Co. LLC	$	9,678,000	$	9,678,000	$	—

^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.

2. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Pursuant to an Investment Advisory Agreement with the Company, 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 directors).

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 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
	0.59	%	First $7 billion
	0.54		Over $7 billion, up to and including $11 billion
	0.49		Over $11 billion, up to and including $24 billion
	0.44		Over $24 billion, up to and including $48 billion
	0.40		Over $48 billion, up to and including $72 billion
	0.36		Over $72 billion, up to and including $96 billiona
	0.32		Over $96 billiona

^a  Break level added or amended effective July 1, 2017.

NOTES TO FINANCIAL STATEMENTS 109

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The U.S. Securities and Exchange Commission 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 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 Fund, pursuant to a securities lending agreement, will retain 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 August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
MSCI Eurozone	$	420,546
MSCI Germany		55,921
MSCI Italy Capped		22,778
MSCI Spain Capped		44,670
MSCI Switzerland Capped		12,899

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 August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI Eurozone	$	32,483,149	$	32,053,832
MSCI Germany		10,960,175		8,747,614
MSCI Italy Capped		17,070,650		15,636,016
MSCI Spain Capped		22,565,872		17,961,307
MSCI Switzerland Capped		42,184,408		16,731,878

110 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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.

It is possible that, from time to time, BlackRock and/or funds or other accounts managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of August 31, 2017, the number of affiliated accounts that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:

iShares ETF	Number of Affiliated Accounts		Aggregate Affiliated Ownership Percentage
MSCI Eurozone		1		13	%
MSCI Germany		1		16	%

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

Certain directors and officers of the Company 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 August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
MSCI Eurozone	$	625,139,044	$	333,900,736
MSCI Germany		236,258,732		138,590,140
MSCI Italy Capped		103,596,757		107,459,025
MSCI Spain Capped		185,519,032		156,744,297
MSCI Switzerland Capped		135,464,757		138,611,441

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
MSCI Eurozone	$	4,753,914,667	$	1,916,011,413
MSCI Germany		1,233,707,047		822,064,401
MSCI Italy Capped		451,672,925		266,593,760
MSCI Spain Capped		788,493,196		119,916,770
MSCI Switzerland Capped		187,993,815		158,245,156

NOTES TO FINANCIAL STATEMENTS 111

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company 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 Company’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.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.

The Board authorized a one-for-two reverse stock split for the iShares MSCI Italy Capped ETF, effective after the close of trading on November 4, 2016. The impact of the stock split was to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund. The financial statements for the Fund have been adjusted to reflect the reverse stock split.

5. FUTURES CONTRACTS

Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements 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 notional value of the contract. Such receipts or payments are known as margin variation 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 notional value of the contract at the time it was opened and the notional value at the time it was closed. Losses may arise if the notional 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.

112 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the value of futures contracts held by the iShares MSCI Germany ETF as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Liabilities
Equity contracts:
Variation margin/Net assets consist of — net unrealized appreciation (depreciation)a	$	1,550,396

^a  Represents cumulative depreciation of futures contracts as reported in the schedule of investments.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI Germany ETF during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	5,815,831	$	(3,577,429	)

The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI Germany ETF for the year ended August 31, 2017:

Average value of contracts purchased $ 25,230,168

6. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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.

NOTES TO FINANCIAL STATEMENTS 113

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. 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 issuers located in a single country, it assumes the risk that economic, political and social conditions in that country 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.

7. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Company’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

114 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

August 31, 2017, attributable to the characterization of corporate actions, 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
MSCI Eurozone	$	(82,145,714	)	$	15,166,762	$	66,978,952
MSCI Germany		73,561,932			24,040,090		(97,602,022	)
MSCI Italy Capped		(7,670,214	)		2,882,125		4,788,089
MSCI Spain Capped		(15,818,812	)		648,062		15,170,750
MSCI Switzerland Capped		11,015,648			298,783		(11,314,431	)

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
MSCI Eurozone
Ordinary income	$	251,508,888	$	293,025,178
MSCI Germany
Ordinary income	$	101,663,169	$	97,625,093
MSCI Italy Capped
Ordinary income	$	15,689,552	$	22,347,848
Return of capital		—		780,522
	$	15,689,552	$	23,128,370
MSCI Spain Capped
Ordinary income	$	28,748,503	$	41,241,786
MSCI Switzerland Capped
Ordinary income	$	25,105,668	$	29,917,479

As of August 31, 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
MSCI Eurozone	$	38,174,397	$	(362,189,568	)	$	199,387,368		$	(124,627,803	)
MSCI Germany		11,828,547		(133,898,034	)		(223,646,700	)		(345,716,187	)
MSCI Italy Capped		1,810,109		(208,634,647	)		(22,070,693	)		(228,895,231	)
MSCI Spain Capped		9,343,831		(165,297,805	)		(40,671,946	)		(196,625,920	)
MSCI Switzerland Capped		—		(61,443,912	)		(6,562,195	)		(68,006,107	)

^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 realization for tax purposes of unrealized gains (losses) on certain futures contracts, the characterization of corporate actions, the foreign withholding tax reclaims, and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

NOTES TO FINANCIAL STATEMENTS 115

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 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
MSCI Eurozone	$	263,923,287	$	68,035,542	$	30,230,739	$	362,189,568
MSCI Germany		73,191,131		28,490,949		32,215,954		133,898,034
MSCI Italy Capped		181,005,358		18,169,627		9,459,662		208,634,647
MSCI Spain Capped		141,557,230		15,120,672		8,619,903		165,297,805
MSCI Switzerland Capped		31,918,774		22,569,380		6,955,758		61,443,912

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

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 August 31, 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 MSCI Eurozone ETF has filed 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 favorable determinations issued by the Finnish Tax Authority. The Fund continues to evaluate developments in Finland for potential impact to the receivables recorded. Finnish tax claims receivable are disclosed in the statement of assets and liabilities. Professional fees associated with the filing of tax claims in Finland that result in the recovery of foreign withholding taxes have been 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 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 (the “Plaintiffs”) 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 putative 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

116 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

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.

NOTES TO FINANCIAL STATEMENTS 117

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares MSCI Eurozone ETF, iShares MSCI Germany ETF,

iShares MSCI Italy Capped ETF, iShares MSCI Spain Capped ETF and

iShares MSCI Switzerland Capped 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 MSCI Eurozone ETF, iShares MSCI Germany ETF, iShares MSCI Italy Capped ETF, iShares MSCI Spain Capped ETF and iShares MSCI Switzerland Capped ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

118 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 MSCI 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-814-0817

AUGUST 31, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares MSCI EAFE ESG Optimized ETF  |  ESGD  |  NASDAQ

^Ø  iShares MSCI Global Impact ETF  |  MPCT  |  NASDAQ

^Ø  iShares MSCI USA ESG Optimized ETF  |  ESGU  |  NASDAQ

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	12
Shareholder Expenses	12
Schedules of Investments	13
iShares MSCI EAFE ESG Optimized ETF	13
iShares MSCI Global Impact ETF	20
ishares MSCI USA ESG Optimized ETF	23
Financial Statements	29
Financial Highlights	33
Notes to Financial Statements	36
Report of Independent Registered Public Accounting Firm	46
Tax Information	47
Board Review and Approval of Investment Advisory Contract	48
Supplemental Information	55
Trustee and Officer Information	58

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended August 31, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 17.11% in U.S. dollar terms for the reporting period.

The primary factor behind the robust performance of global equity markets was improving global economic growth, driven largely by the continuation of accommodative monetary policies from many of the world’s central banks. Signs of stronger economic activity in Europe emerged as the European Central Bank (“ECB”) maintained policies such as quantitative easing and negative interest rates. Economic growth rates in China and Japan, the largest economies in Asia, also increased during the reporting period, reflecting efforts by the People’s Bank of China (“PBOC”) and the Bank of Japan (“BOJ”) to stimulate economic activity. Stronger economic growth led several central banks to consider reducing their economic stimulus measures. For example, late in the reporting period, the ECB discussed the possibility of tapering its quantitative easing program, while the PBOC increased short-term interest rates during the first half of 2017.

On a regional basis, European equity markets posted the best returns among developed markets, advancing by approximately 20% in U.S. dollar terms for the reporting period. European stocks benefited from improving economic conditions and stronger corporate earnings. In addition, election outcomes in France and the Netherlands eased investor concerns about nationalist presidential candidates and their opposition to the European Union (“E.U.”). Currency fluctuations also contributed meaningfully to European equity performance in U.S. dollar terms as the euro appreciated by approximately 6% against the U.S. dollar during the reporting period. The best-performing European stock markets included Austria, Italy, and Spain, while Ireland and Belgium posted the weakest returns.

Equity markets in the Asia-Pacific region gained about 16% in U.S. dollar terms for the reporting period, led by Singapore and Hong Kong. Japanese stocks also posted strong returns, benefiting from improving consumer spending and employment trends that contributed to the ongoing recovery in the Japanese economy. However, equity market returns in Japan were hindered by a decline in the Japanese yen, which depreciated by approximately 6% against the U.S. dollar.

The U.S. stock market returned approximately 15% for the reporting period. Despite mixed U.S. economic data, U.S. stocks advanced initially in anticipation of pro-business fiscal policies from the new presidential administration. Although the administration struggled to implement its fiscal agenda, stocks continued to move higher as better global economic conditions led to a notable improvement in corporate earnings growth, particularly for multinational companies with significant operations outside of the U.S. U.S. stocks advanced despite three short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the reporting period, which increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to start reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017.

Emerging markets stocks outperformed those in developed markets, returning more than 23% in U.S. dollar terms for the reporting period. Emerging markets in Eastern Europe were the best performers, led by Poland, Greece, and Hungary. Equity markets in the Middle East trailed for the reporting period amid continued geopolitical conflict in the region.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		17.16%		17.38%		17.38%		17.16%		17.38%		17.38%
Since Inception		23.82%		24.42%		24.27%		28.63%		29.36%		29.01%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.

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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,123.60	$	1.98	$	1,000.00	$	1,023.30	$	1.89		0.37%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

The iShares MSCI EAFE ESG Optimized ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada that have positive environmental, social and governance characteristics, as represented by the MSCI EAFE ESG Focus 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 August 31, 2017, the total return for the Fund was 17.16%, net of fees, while the total return for the Index was 17.38%.

In general, stocks in the MSCI EAFE Index with positive environmental, social, and governance (“ESG”) characteristics benefited during the reporting period from an overall increase in investor interest.

From a country perspective, the most significant contributor to the Index’s performance was Japan, which represented approximately 24% of the Index on average for the reporting period. Japanese ESG stocks benefited from Japan’s public pension fund indicating its intent to significantly increase its holdings in ESG companies. The country’s economy expanded for the reporting period, reaching its longest period of sustained growth since 2006. In particular, the Japanese equity market benefited from increased consumer spending and export growth.

France, Germany, and Switzerland also contributed to the Index’s return for the reporting period. In general, stocks in Europe benefited from stronger economic conditions and improving corporate earnings. In addition, recent election results in Europe helped ease concerns about the continued viability of the E.U. as nationalist candidates who oppose the bloc were defeated. ESG stocks in the U.K., which represented about 17% of the Index on average during the reporting period, also helped the Index’s performance.

In contrast, Israel, which only represented approximately 1% of the Index on average, detracted from the Index’s performance for the reporting period.

From a sector perspective, financials, representing about 21% of the Index on average, contributed the most to the Index’s performance for the reporting period, led by strength among banks and insurance companies. The industrials sector also contributed to the Index’s return, benefiting from strengthening global economic activity. Other meaningful contributors to the Index’s performance included the materials, information technology, and consumer discretionary sectors.

During the reporting period, currency effects contributed modestly to the Index’s performance. Relative to the U.S. dollar, the euro rose by about 6%, while the British pound declined by approximately 2%, and the Japanese yen declined by about 6%.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	21.51	%
Industrials	14.56
Consumer Discretionary	11.37
Consumer Staples	10.65
Health Care	10.25
Materials	9.20
Information Technology	6.16
Telecommunication Services	4.58
Energy	4.12
Real Estate	3.92
Utilities	3.68
TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17

Country Percentage of
Total  Investments*

Japan	23.15	%
United Kingdom	17.51
France	10.50
Germany	9.46
Switzerland	8.67
Australia	6.91
Spain	3.73
Netherlands	3.68
Hong Kong	3.50
Sweden	2.82
TOTAL	89.93	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL IMPACT ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.27%		11.25%		15.78%		15.27%		11.25%		15.78%
Since Inception		12.88%		13.37%		13.37%		18.01%		18.71%		18.62%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 4/20/16. The first day of secondary market trading was 4/22/16.

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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,138.20	$	2.64	$	1,000.00	$	1,022.70	$	2.50		0.49%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL IMPACT ETF

The iShares MSCI Global Impact ETF (the “Fund”) seeks to track the investment results of an index composed of positive impact companies that derive a majority of their revenue from products and services that address at least one of the world’s major social and environmental challenges as identified by the United Nations Sustainable Development Goals, as represented by the MSCI ACWI Sustainable Impact 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 August 31, 2017, the total return for the Fund was 15.27%, net of fees, while the total return for the Index was 15.78%.

The U.S., representing about 37% of the Index on average, was the largest contributor to the Index’s performance for the reporting period. U.S. positive-impact stocks benefited from optimism for lower taxes and pro-business fiscal policies from the new U.S. presidential administration, as well as rising corporate earnings resulting from stronger global economic conditions.

France, Belgium, and Denmark also contributed significantly to the Index’s return for the reporting period. In general, European equity markets performed well, due to stronger economic conditions and improved corporate earnings. In addition, recent election results in Europe helped ease concerns about the continued viability of the E.U. as nationalist candidates who oppose the bloc were defeated.

Japan was a notable contributor to the Index’s return for the reporting period. Japanese positive-impact stocks benefited from Japan’s public pension fund indicating its intent to significantly increase its holdings in socially responsible companies. The country’s economy expanded for the reporting period, reaching its longest period of sustained growth since 2006. In particular, Japanese equities benefited from increased consumer spending and export growth.

In contrast, positive-impact stocks in the U.K. detracted from the Index’s return for the reporting period. Although the broad U.K. equity market advanced, the specific stocks represented in the Index declined overall for the reporting period.

From a sector perspective, the healthcare sector, which represented about 20% of the Index on average, contributed the most to the Index’s performance for the reporting period, due to strength among positive-impact biotechnology companies. The consumer discretionary sector also contributed significantly to the Index’s return, led by the automotive retail industry. Other contributors to the Index’s performance included the industrials, information technology, and consumer staples sectors.

During the reporting period, currency effects on the Index’s return were minimal as the euro’s appreciation of approximately 6% relative to the U.S. dollar was offset by the Japanese yen, which declined by about 6% relative to the U.S. dollar.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Health Care	21.12	%
Consumer Staples	19.57
Industrials	19.56
Consumer Discretionary	15.08
Information Technology	7.90
Materials	7.79
Utilities	4.82
Real Estate	4.13
Energy	0.03
TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17

Country Percentage of
Total  Investments*

United States	36.15	%
Japan	14.87
United Kingdom	12.71
France	11.00
Denmark	6.03
Belgium	3.90
China	3.81
Hong Kong	1.83
Spain	1.73
Sweden	1.44
TOTAL	93.47	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® MSCI USA ESG OPTIMIZED ETF

Performance as of August 31, 2017

	Cumulative Total Returns
	NAV		MARKET		INDEX
Since Inception		14.55%		14.59%		14.81%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 12/1/16. The first day of secondary market trading was 12/2/16.

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 12 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,057.40	$	1.35	$	1,000.00	$	1,023.90	$	1.33		0.26%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI USA ESG OPTIMIZED ETF

The iShares MSCI USA ESG Optimized 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 Focus 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 period from December 1, 2016 (inception date of the Fund) through August 31, 2017 (the “reporting period”), the total return for the Fund was 14.55%, net of fees, while the total return for the Index was 14.81%.

During the reporting period, U.S. stocks with positive environmental, social, and governance (“ESG”) characteristics generally benefited from an overall increase in investor interest in these stocks. In addition, U.S. stocks in general benefited from optimism for lower taxes and pro-business fiscal policies from the new U.S. presidential administration, which was elected shortly before the beginning of the reporting period. As investor expectations for more business-friendly fiscal policies faded in the latter part of the reporting period, solid corporate earnings growth resulting from strengthening global economic conditions led to gains in the U.S. stock market, which hit record highs. Although the Fed increased short-term interest rates three times during the reporting period, interest rates remained relatively low, leading to stronger consumer spending levels.

From a sector perspective, information technology, representing about 23% of the Index on average during the reporting period, contributed the most to the Index’s performance. Technology-related companies benefited from stronger global economic growth as many of them derive a significant portion of their sales from outside of the U.S. The healthcare sector also contributed significantly to the Index’s return, largely due to strength among pharmaceuticals, biotechnology, and life sciences companies. Other sectors that contributed to the Index’s performance included consumer discretionary, financials, and industrials.

The energy sector was the only sector to detract from the Index’s return for the reporting period. Within the sector, oil and gas exploration and production companies detracted the most as lower oil prices weighed on the industry.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Information Technology	24.70	%
Financials	14.74
Health Care	14.36
Consumer Discretionary	11.40
Industrials	10.60
Consumer Staples	8.20
Energy	4.09
Utilities	4.08
Real Estate	3.29
Materials	2.65
Telecommunication Services	1.89
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Apple Inc.	3.92	%
Microsoft Corp.	3.07
Facebook Inc. Class A	1.92
Amazon.com Inc.	1.72
Johnson & Johnson	1.60
JPMorgan Chase & Co.	1.49
Alphabet Inc. Class C	1.45
Alphabet Inc. Class A	1.40
Procter & Gamble Co. (The)	1.33
3M Co.	1.14
TOTAL	19.04	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

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 March 1, 2017 and held through August 31, 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.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.15%
AUSTRALIA — 6.88%
Alumina Ltd.		99,085	$	166,609
Amcor Ltd./Australia		9,434		120,544
AMP Ltd.		46,645		188,682
APA Group		19,399		136,323
ASX Ltd.		4,788		207,653
Aurizon Holdings Ltd.		25,131		98,866
Australia & New Zealand Banking Group Ltd.		30,669		715,158
Brambles Ltd.		28,174		208,043
Caltex Australia Ltd.		4,983		131,966
Commonwealth Bank of Australia		16,796		1,009,788
CSL Ltd.		3,781		385,419
Dexus		23,845		181,372
Goodman Group		27,132		178,399
GPT Group (The)		30,894		122,518
Insurance Australia Group Ltd.		34,277		174,267
LendLease Group		13,204		173,638
Macquarie Group Ltd.		4,199		289,082
Mirvac Group		124,306		228,736
National Australia Bank Ltd.		27,132		649,896
Newcrest Mining Ltd.		10,051		182,159
Origin Energy Ltd.a		20,463		124,161
Ramsay Health Care Ltd.		2,641		143,090
Rio Tinto Ltd.		4,579		246,384
South32 Ltd.		90,098		208,667
Stockland		74,081		260,295
Sydney Airport		22,363		131,255
Telstra Corp. Ltd.		33,676		98,026
Transurban Group		29,982		289,167
Westpac Banking Corp.		36,181		897,354
Woodside Petroleum Ltd.		12,337		282,104
Woolworths Ltd.		8,550		176,317
				8,405,938
AUSTRIA — 0.45%
OMV AG		7,163		411,242
Voestalpine AG		2,694		139,614
				550,856
BELGIUM — 1.20%
Anheuser-Busch InBev SA/NV		7,790		921,707
KBC Group NV		4,712		386,712
Umicore SA		2,071		154,504
				1,462,923

Security	Shares		Value
DENMARK — 1.90%
Carlsberg A/S Class B		1,678	$	192,317
Chr Hansen Holding A/S		1,881		161,612
Coloplast A/S Class B		2,394		195,738
DONG Energy A/Sb		2,115		109,943
Genmab A/Sa		494		115,131
ISS A/S		3,760		146,110
Novo Nordisk A/S Class B		18,126		863,426
Novozymes A/S Class B		3,249		165,048
Pandora A/S		1,425		151,248
Vestas Wind Systems A/S		2,451		222,927
				2,323,500
FINLAND — 0.92%
Neste OYJ		5,244		230,929
Nokia OYJ		58,653		362,958
Stora Enso OYJ Class R		5,507		72,282
UPM-Kymmene OYJ		5,339		138,757
Wartsila OYJ Abp		4,579		315,478
				1,120,404
FRANCE — 10.45%
Accor SA		2,793		129,171
Aeroports de Paris		1,083		192,944
Air Liquide SA		3,363		410,022
Airbus SE		5,092		427,464
Atos SE		1,558		240,059
AXA SA		22,214		643,749
BNP Paribas SA		7,961		604,897
Capgemini SE		1,634		180,920
Carrefour SA		4,617		92,986
Cie. de Saint-Gobain		4,978		272,688
Cie. Generale des Etablissements Michelin Class B		2,147		292,269
CNP Assurances		8,421		195,229
Credit Agricole SA		3,232		56,908
Danone SA		8,588		675,409
Eiffage SA		1,273		131,369
Engie SA		12,711		211,872
Essilor International SA		3,420		431,203
Imerys SA		1,868		164,122
Ingenico Group SA		1,138		112,837
Kering		893		334,750
L’Oreal SA		3,268		689,062
Legrand SA		3,116		218,127
LVMH Moet Hennessy Louis Vuitton SE		2,470		646,782

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
Natixis SA		26,106	$	195,784
Orange SA		19,304		327,619
Pernod Ricard SA		2,717		370,832
Peugeot SA		6,707		141,418
Renault SA		2,147		189,783
Rexel SA		5,206		77,677
Sanofi		9,728		944,448
Schneider Electric SE		7,391		595,154
SES SA		4,170		95,213
Societe Generale SA		6,137		343,144
STMicroelectronics NV		6,251		108,170
Thales SA		1,127		124,610
Total SA		20,596		1,063,819
Unibail-Rodamco SE		1,710		434,151
Valeo SA		2,033		135,789
Vivendi SA		11,514		263,855
				12,766,305
GERMANY — 9.14%
adidas AG		2,394		536,656
Allianz SE Registered		5,323		1,137,550
BASF SE		9,538		922,713
Bayer AG Registered		6,840		874,198
Bayerische Motoren Werke AG		3,534		327,722
Brenntag AG		2,546		134,744
Commerzbank AGa		11,856		147,158
Daimler AG Registered		9,082		661,136
Deutsche Bank AG Registered		14,820		237,335
Deutsche Boerse AG		3,421		365,196
Deutsche Post AG Registered		13,023		539,506
Deutsche Telekom AG Registered		21,983		396,215
E.ON SE		20,235		228,425
Fraport AG Frankfurt Airport Services Worldwide		998		98,351
HeidelbergCement AG		2,356		225,904
Henkel AG & Co. KGaA		1,596		192,974
HOCHTIEF AG		592		104,202
Infineon Technologies AG		3,705		85,322
Linde AG		1,558		298,314
Merck KGaA		3,378		370,526
METRO AGa		3,344		65,281
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		1,995		411,280
Osram Licht AG		1,995		163,611
ProSiebenSat.1 Media SE Registered		3,705		124,129

Security	Shares		Value
RWE AGa		7,752	$	193,129
SAP SE		11,628		1,217,940
Siemens AG Registered		8,477		1,106,597
				11,166,114
HONG KONG — 3.49%
AIA Group Ltd.		87,800		673,663
BOC Hong Kong Holdings Ltd.		76,500		389,516
CK Hutchison Holdings Ltd.		19,000		248,593
CLP Holdings Ltd.		28,500		300,970
Hang Seng Bank Ltd.		23,000		528,975
Hong Kong Exchanges & Clearing Ltd.		11,400		311,130
Hysan Development Co. Ltd.		38,000		175,763
Link REIT		9,500		78,414
Melco Resorts & Entertainment Ltd. ADR		7,220		158,479
MTR Corp. Ltd.		66,500		388,730
Sands China Ltd.c		38,000		170,179
Shangri-La Asia Ltd.		76,000		127,210
Sun Hung Kai Properties Ltd.		19,000		317,053
Swire Pacific Ltd. Class A		19,000		193,363
Swire Properties Ltd.		57,000		197,369
				4,259,407
IRELAND — 0.42%
CRH PLC		11,172		389,639
Paddy Power Betfair PLC		1,330		116,679
				506,318
ISRAEL — 0.42%
Bank Hapoalim BM		40,793		274,444
Bank Leumi Le-Israel BM		27,854		145,846
Teva Pharmaceutical Industries Ltd. ADR		5,472		86,786
				507,076
ITALY — 2.11%
Assicurazioni Generali SpA		15,286		273,330
CNH Industrial NV		21,451		243,044
Enel SpA		104,101		629,348
EXOR NV		2,774		177,763
Ferrari NV		95		10,854
Intesa Sanpaolo SpA		120,004		404,620
Snam SpA		56,088		272,733
Terna Rete Elettrica Nazionale SpA		42,123		248,397
UniCredit SpAa		15,723		319,465
				2,579,554

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
JAPAN — 23.06%
Aeon Co. Ltd.		11,600	$	170,954
AEON Financial Service Co. Ltd.		5,700		120,722
Aisin Seiki Co. Ltd.		3,800		190,932
Ajinomoto Co. Inc.		9,500		187,436
Asahi Kasei Corp.		19,000		227,358
Asics Corp.		7,600		114,421
Astellas Pharma Inc.		30,700		385,912
Bridgestone Corp.		5,700		244,397
Central Japan Railway Co.		1,900		321,615
Chugai Pharmaceutical Co. Ltd.		3,800		154,334
Dai Nippon Printing Co. Ltd.		19,000		224,078
Dai-ichi Life Holdings Inc.		11,400		183,336
Daikin Industries Ltd.		3,800		379,620
Daiwa House Industry Co. Ltd.		9,600		335,555
Denso Corp.		9,600		465,433
East Japan Railway Co.		3,800		348,201
Eisai Co. Ltd.		3,800		196,595
FANUC Corp.		1,900		368,399
Fast Retailing Co. Ltd.		600		171,561
FUJIFILM Holdings Corp.		3,800		149,224
Fujitsu Ltd.		19,000		140,713
Hankyu Hanshin Holdings Inc.		3,800		144,667
Hino Motors Ltd.		8,000		91,804
Hitachi Chemical Co. Ltd.		5,700		154,127
Hitachi Ltd.		57,000		392,050
Hitachi Metals Ltd.		9,500		126,799
Honda Motor Co. Ltd.		19,000		531,883
Hoya Corp.		3,800		217,345
Hulic Co. Ltd.		11,400		112,798
Idemitsu Kosan Co. Ltd.		5,700		139,108
IHI Corp.a		20,000		66,146
INPEX Corp.		21,200		202,446
JFE Holdings Inc.		7,600		149,984
JXTG Holdings Inc.		39,900		193,011
Kajima Corp.		19,000		174,187
Kansai Paint Co. Ltd.		3,900		98,829
Kao Corp.		5,700		355,382
Kawasaki Heavy Industries Ltd.		38,000		116,700
KDDI Corp.		23,000		620,034
Keio Corp.		19,000		157,959
Keyence Corp.		900		468,235
Kikkoman Corp.		3,000		93,903
Kintetsu Group Holdings Co. Ltd.		19,000		71,643
Kirin Holdings Co. Ltd.		9,500		215,489

Security	Shares		Value
Kobe Steel Ltd.a		11,400	$	137,140
Komatsu Ltd.		13,300		359,508
Konica Minolta Inc.		11,400		90,943
Kubota Corp.		13,300		230,085
Kuraray Co. Ltd.		7,600		144,183
Kyocera Corp.		3,800		227,876
Kyowa Hakko Kirin Co. Ltd.		6,000		105,270
Kyushu Railway Co.		1,900		59,386
Lawson Inc.		1,900		127,576
Miraca Holdings Inc.		1,900		86,230
Mitsubishi Chemical Holdings Corp.		7,700		71,571
Mitsubishi Electric Corp.		19,000		280,874
Mitsubishi Estate Co. Ltd.		19,000		326,967
Mitsubishi Heavy Industries Ltd.		38,000		145,323
Mitsubishi Materials Corp.		3,800		136,207
Mitsubishi UFJ Financial Group Inc.		117,800		721,506
Mitsubishi UFJ Lease & Finance Co. Ltd.		16,000		80,829
Mitsui Fudosan Co. Ltd.		7,600		164,209
Mizuho Financial Group Inc.		210,900		362,359
MS&AD Insurance Group Holdings Inc.		5,700		187,946
Murata Manufacturing Co. Ltd.		1,900		290,714
Nabtesco Corp.		1,900		66,377
NEC Corp.		44,000		116,336
NGK Insulators Ltd.		7,700		143,632
NGK Spark Plug Co. Ltd.		7,600		144,667
Nidec Corp.		1,900		215,101
Nintendo Co. Ltd.		1,900		632,528
Nippon Express Co. Ltd.		19,000		131,028
Nippon Steel & Sumitomo Metal Corp.		7,600		181,230
Nippon Telegraph & Telephone Corp.		7,600		377,583
Nitto Denko Corp.		1,900		167,420
Nomura Holdings Inc.		38,000		211,476
Nomura Research Institute Ltd.		2,090		81,276
NTT DOCOMO Inc.		23,200		538,263
Obayashi Corp.		13,300		156,734
Odakyu Electric Railway Co. Ltd.		5,700		110,313
Omron Corp.		3,800		190,587
Oriental Land Co. Ltd./Japan		1,900		142,578
ORIX Corp.		13,300		212,624
Osaka Gas Co. Ltd.		38,000		148,499
Panasonic Corp.		22,800		303,593
Recruit Holdings Co. Ltd.		11,400		226,943
Resona Holdings Inc.		28,500		142,060

SCHEDULES OF INVESTMENTS 15

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
Sekisui Chemical Co. Ltd.		11,400	$	212,339
Sekisui House Ltd.		11,600		200,676
Seven & I Holdings Co. Ltd.		5,700		226,063
Shimadzu Corp.		5,900		108,340
Shimizu Corp.		19,000		196,111
Shin-Etsu Chemical Co. Ltd.		3,800		335,737
Shionogi & Co. Ltd.		3,800		200,082
Shiseido Co. Ltd.		1,900		78,703
Showa Shell Sekiyu KK		11,400		124,814
SoftBank Group Corp.		7,600		616,093
Sompo Holdings Inc.		5,700		214,151
Sony Corp.		11,400		449,226
Stanley Electric Co. Ltd.		3,800		126,022
Subaru Corp.		5,700		199,702
Sumitomo Chemical Co. Ltd.		38,000		227,530
Sumitomo Dainippon Pharma Co. Ltd.		9,500		128,957
Sumitomo Metal Mining Co. Ltd.		19,000		327,140
Sumitomo Mitsui Financial Group Inc.		11,400		426,128
Sumitomo Mitsui Trust Holdings Inc.		5,800		200,571
Sysmex Corp.		1,900		117,045
T&D Holdings Inc.		11,400		156,250
Taisei Corp.		19,000		190,414
Takeda Pharmaceutical Co. Ltd.		5,700		314,727
TDK Corp.		1,900		127,231
Teijin Ltd.		7,600		154,127
Terumo Corp.		3,800		146,738
THK Co. Ltd.		1,900		63,356
Tokio Marine Holdings Inc.		7,600		303,144
Tokyo Electron Ltd.		1,900		266,891
Tokyo Gas Co. Ltd.		38,000		201,359
Tokyu Corp.		9,500		138,106
Toray Industries Inc.		21,000		199,773
TOTO Ltd.		1,900		72,247
Toyota Motor Corp.		22,800		1,280,869
Toyota Tsusho Corp.		3,800		116,873
West Japan Railway Co.		1,900		137,951
Yamaha Corp.		3,800		132,237
Yamaha Motor Co. Ltd.		3,800		107,378
Yaskawa Electric Corp.		7,600		229,947
Yokogawa Electric Corp.		9,500		147,860
				28,155,783
NETHERLANDS — 3.67%
Aegon NV		16,758		95,553
Akzo Nobel NV		3,838		350,438
ASML Holding NV		4,482		695,388

Security	Shares		Value
Heineken NV		3,173	$	332,460
ING Groep NV		27,626		489,384
Koninklijke Ahold Delhaize NV		9,082		163,044
Koninklijke DSM NV		1,653		125,245
Koninklijke KPN NV		39,653		140,063
Koninklijke Philips NV		9,671		365,402
Koninklijke Vopak NV		3,952		167,056
NXP Semiconductors NVa		2,318		261,841
Randstad Holding NV		1,377		80,391
RELX NV		17,955		376,449
Unilever NV CVA		14,003		832,574
				4,475,288
NEW ZEALAND — 0.13%
Fletcher Building Ltd.		12,509		73,105
Ryman Healthcare Ltd.		13,946		90,692
				163,797
NORWAY — 0.96%
DNB ASA		8,322		162,058
Norsk Hydro ASA		43,396		312,368
Orkla ASA		24,168		247,432
Statoil ASA		14,554		274,997
Telenor ASA		8,588		173,419
				1,170,274
PORTUGAL — 0.25%
EDP – Energias de Portugal SA		51,946		199,171
Galp Energia SGPS SA		6,666		110,240
				309,411
SINGAPORE — 1.10%
CapitaLand Ltd.		68,400		190,392
CapitaLand Mall Trust		100,700		160,912
City Developments Ltd.		24,700		212,988
DBS Group Holdings Ltd.		24,700		375,047
Keppel Corp. Ltd.		28,700		133,356
Singapore Telecommunications Ltd.		99,100		270,007
				1,342,702
SPAIN — 3.72%
Abertis Infraestructuras SA		8,550		172,806
Amadeus IT Group SA		5,282		326,987
Banco Bilbao Vizcaya Argentaria SA		81,167		716,219
Banco Santander SA		139,821		907,467
CaixaBank SA		17,975		92,705
Ferrovial SA		7,527		171,326
Gas Natural SDG SA		5,776		140,226
Iberdrola SA		69,672		568,317

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
Industria de Diseno Textil SA		16,568	$	628,652
Red Electrica Corp. SA		2,584		57,955
Repsol SA		19,983		342,825
Telefonica SA		38,456		414,180
				4,539,665
SWEDEN — 2.81%
Assa Abloy AB Class B		9,129		197,096
Atlas Copco AB Class A		6,631		259,495
Atlas Copco AB Class B		4,256		151,684
Boliden AB		9,386		327,912
Essity AB Class Ba		9,277		257,185
Hennes & Mauritz AB Class B		8,997		227,261
Nordea Bank AB		24,624		330,802
Sandvik AB		10,433		172,149
Skandinaviska Enskilda Banken AB Class A		17,440		226,620
Skanska AB Class B		9,499		214,276
SKF AB Class B		4,908		97,946
Swedbank AB Class A		11,840		319,608
Telefonaktiebolaget LM Ericsson Class B		27,512		161,013
Telia Co. AB		52,190		248,575
Volvo AB Class B		14,193		242,039
				3,433,661
SWITZERLAND — 8.63%
ABB Ltd. Registered		22,154		511,778
Adecco Group AG Registered		2,242		162,143
Barry Callebaut AG Registered		40		57,440
Chocoladefabriken Lindt & Spruengli AG Registered		2		138,834
Cie. Financiere Richemont SA Class A Registered		4,940		440,796
Credit Suisse Group AG Registered		16,099		236,208
Geberit AG Registered		342		155,911
Givaudan SA Registered		114		232,508
Kuehne + Nagel International AG Registered		1,591		287,572
LafargeHolcim Ltd. Registered		5,263		308,606
Lonza Group AG Registered		1,360		343,609
Nestle SA Registered		27,873		2,359,489
Novartis AG Registered		18,753		1,578,686
Roche Holding AG		6,137		1,555,005
SGS SA Registered		76		169,478
Sika AG Bearer		38		268,887
Sonova Holding AG Registered		579		97,665

Security	Shares		Value
Swiss Re AG		4,104	$	370,897
Swisscom AG Registered		577		290,361
UBS Group AG		31,920		524,803
Zurich Insurance Group AG		1,501		448,113
				10,538,789
UNITED KINGDOM — 17.44%
3i Group PLC		12,502		156,181
Anglo American PLC		15,827		286,024
Antofagasta PLC		17,613		234,896
Ashtead Group PLC		7,125		152,679
Associated British Foods PLC		3,914		167,541
AstraZeneca PLC		11,723		685,949
Aviva PLC		41,952		282,449
Barclays PLC		141,227		347,760
Barratt Developments PLC		17,651		142,038
Berkeley Group Holdings PLC		3,154		152,038
BP PLC		163,210		936,169
British Land Co. PLC (The)		17,423		137,284
BT Group PLC		60,888		229,527
Bunzl PLC		5,320		158,352
Burberry Group PLC		6,232		144,303
Capita PLC		11,628		97,166
Centrica PLC		63,004		162,286
Cobham PLC		53,939		95,428
Coca-Cola European Partners PLC		5,510		235,634
Coca-Cola HBC AG		7,771		264,752
Compass Group PLC		14,177		301,784
Croda International PLC		4,237		209,757
DCC PLC		1,349		122,460
Diageo PLC		31,217		1,042,623
easyJet PLC		6,182		95,271
Experian PLC		5,092		101,963
Ferguson PLC		3,686		218,624
GKN PLC		30,514		125,388
GlaxoSmithKline PLC		42,845		846,614
Glencore PLC		126,331		585,208
Hammerson PLC		28,747		207,805
HSBC Holdings PLC		144,001		1,392,572
IMI PLC		5,320		77,805
InterContinental Hotels Group PLC		3,511		174,449
Intertek Group PLC		2,888		190,160
Investec PLC		24,263		184,458
ITV PLC		95,736		195,650
J Sainsbury PLC		39,425		119,687
Johnson Matthey PLC		3,952		140,753

SCHEDULES OF INVESTMENTS 17

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
Kingfisher PLC		50,426	$	194,215
Land Securities Group PLC		7,619		99,156
Legal & General Group PLC		100,700		337,628
Lloyds Banking Group PLC		514,064		422,742
London Stock Exchange Group PLC		2,926		148,927
Marks & Spencer Group PLC		38,760		159,622
Mediclinic International PLC		11,438		112,675
Meggitt PLC		17,898		119,464
Merlin Entertainments PLCb		19,551		116,213
Mondi PLC		5,130		139,675
National Grid PLC		38,996		489,770
Next PLC		2,297		122,210
Old Mutual PLC		78,109		208,843
Pearson PLC		11,818		92,358
Prudential PLC		24,947		583,601
Reckitt Benckiser Group PLC		5,814		549,286
RELX PLC		20,995		457,468
Rio Tinto PLC		12,179		587,948
Rolls-Royce Holdings PLC		13,357		157,310
Schroders PLC		6,669		289,424
Segro PLC		40,014		277,393
Shire PLC		6,643		328,141
Sky PLC		14,820		182,561
SSE PLC		16,378		300,730
Standard Chartered PLCa		31,122		308,787
Standard Life Aberdeen PLC		20,501		113,486
Tate & Lyle PLC		10,982		96,721
Taylor Wimpey PLC		43,776		113,097
Tesco PLCa		87,837		204,747
Travis Perkins PLC		6,460		125,277
Unilever PLC		12,426		723,561
United Utilities Group PLC		13,053		153,057
Vodafone Group PLC		291,023		830,245
Whitbread PLC		2,660		128,807
Wm Morrison Supermarkets PLC		36,328		115,154
Worldpay Group PLCb		15,257		81,980
WPP PLC		23,408		428,306
				21,302,072
TOTAL COMMON STOCKS
(Cost: $105,759,288)				121,079,837
PREFERRED STOCKS — 0.45%
GERMANY — 0.28%
Bayerische Motoren Werke AG, Preference Shares		1,577		130,662

Security	Shares		Value
Henkel AG & Co. KGaA, Preference Shares		1,577	$	211,019
				341,681
ITALY — 0.17%
Intesa Sanpaolo SpA, Preference Shares		66,614		210,190
				210,190
TOTAL PREFERRED STOCKS
(Cost: $461,344)				551,871
SHORT-TERM INVESTMENTS — 0.11%
MONEY MARKET FUNDS — 0.11%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		121,610		121,646
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		11,692		11,692
				133,338
TOTAL SHORT-TERM INVESTMENTS
(Cost: $133,338)				133,338
TOTAL INVESTMENTS IN SECURITIES — 99.71%
(Cost: $106,353,970)g				121,765,046
Other Assets, Less Liabilities — 0.29%				358,277
NET ASSETS — 100.00%			$	122,123,323

ADR  —  American Depositary Receipts

^a  Non-income earning security.

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

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

^d  Affiliated issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $106,613,859. Net unrealized appreciation was $15,151,187, of which $16,779,056 represented gross unrealized appreciation on investments and $1,627,869 represented gross unrealized depreciation on investments.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EAFE ESG OPTIMIZED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		12,430		109,180	b		—		121,610	$	121,646	$	(30	)	$	—	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,692		10,000	b		—		11,692		11,692		—			—		573
										$	133,338	$	(30	)	$	—	$	573

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	121,079,837	$	—	$	—	$	121,079,837
Preferred stocks		551,871		—		—		551,871
Money market funds		133,338		—		—		133,338
Total	$	121,765,046	$	—	$	—	$	121,765,046

See notes to financial statements.

SCHEDULES OF INVESTMENTS 19

Schedule of Investments  

iSHARES^® MSCI GLOBAL IMPACT ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.46%
AUSTRALIA — 1.15%
CSL Ltd.		1,521	$	155,044
GPT Group (The)		8,604		34,122
Mirvac Group		54,054		99,465
				288,631
BELGIUM — 3.88%
Umicore SA		13,077		975,589
				975,589
CHINA — 3.79%
3SBio Inc.a,b		4,500		6,187
Beijing Enterprises Water Group Ltd.		162,000		137,649
China Everbright International Ltd.c		45,000		59,452
China Longyuan Power Group Corp. Ltd. Class H		135,000		101,080
China Vanke Co. Ltd. Class H		102,600		307,415
CSPC Pharmaceutical Group Ltd.		18,000		28,105
GCL-Poly Energy Holdings Ltd.a,c		2,097,000		235,785
Huaneng Renewables Corp. Ltd. Class H		252,000		77,276
				952,949
DENMARK — 6.00%
Genmab A/Sa		36		8,390
Novo Nordisk A/S Class B		11,151		531,174
Vestas Wind Systems A/S		10,656		969,200
				1,508,764
FRANCE — 10.94%
Danone SA		7,803		613,672
Fonciere des Regions		333		32,888
Klepierre SA		1,917		77,148
Schneider Electric SE		12,348		994,312
Suez		45,189		856,111
Unibail-Rodamco SE		702		178,231
				2,752,362
GERMANY — 0.96%
KION Group AG		2,637		240,213
				240,213
HONG KONG — 1.82%
Swire Properties Ltd.c		7,200		24,931
WH Group Ltd.b		414,000		432,702
				457,633
INDONESIA — 0.11%
Indofood CBP Sukses Makmur Tbk PT		21,600		14,125

Security	Shares		Value
Unilever Indonesia Tbk PT		3,600	$	13,640
				27,765
JAPAN — 14.80%
Chugai Pharmaceutical Co. Ltd.		1,100		44,676
Daiichi Sankyo Co. Ltd.		9,900		233,782
East Japan Railway Co.		10,700		980,461
Japan Retail Fund Investment Corp.		18		33,086
NH Foods Ltd.		11,000		322,824
Nippon Prologis REIT Inc.		9		19,527
Nisshin Seifun Group Inc.		4,500		78,135
Nissin Foods Holdings Co. Ltd.		900		55,442
Ono Pharmaceutical Co. Ltd.		1,800		36,651
Sekisui House Ltd.		55,800		965,321
Shionogi & Co. Ltd.		900		47,388
Sysmex Corp.		900		55,442
Terumo Corp.		1,800		69,507
TOTO Ltd.		6,300		239,556
Toyo Suisan Kaisha Ltd.		2,700		99,723
Unicharm Corp.		5,400		126,929
Yakult Honsha Co. Ltd.		900		62,311
Yokogawa Electric Corp.		16,200		252,141
				3,722,902
MALAYSIA — 0.03%
PPB Group Bhd		2,000		7,812
				7,812
MEXICO — 0.40%
Gruma SAB de CV Series B		4,860		71,503
Kimberly-Clark de Mexico SAB de CV Series A		15,300		30,132
				101,635
NORWAY — 0.52%
Marine Harvest ASA		6,586		130,453
				130,453
PHILIPPINES — 0.13%
Energy Development Corp.		254,700		33,748
				33,748
SINGAPORE — 0.18%
CapitaLand Commercial Trust		7,200		9,225
CapitaLand Mall Trust		23,200		37,072
				46,297
SOUTH AFRICA — 0.28%
Pioneer Foods Group Ltd.		2,475		24,117
Tiger Brands Ltd.		1,485		46,044
				70,161

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL IMPACT ETF

August 31, 2017

Security	Shares		Value
SOUTH KOREA — 0.93%
Ottogi Corp.		27	$	18,222
Samsung SDI Co. Ltd.		1,242		216,436
				234,658
SPAIN — 1.72%
Siemens Gamesa Renewable Energy SA		29,043		433,169
				433,169
SWEDEN — 1.43%
Essity AB Class Ba		12,996		360,285
				360,285
SWITZERLAND — 0.78%
Geberit AG Registered		432		196,940
				196,940
TAIWAN — 0.99%
Uni-President Enterprises Corp.		117,000		248,895
				248,895
THAILAND — 0.03%
Energy Absolute PCL NVDR		6,300		7,162
				7,162
UNITED KINGDOM — 12.64%
Barratt Developments PLC		56,790		456,989
Berkeley Group Holdings PLC		5,949		286,769
Johnson Matthey PLC		27,342		973,800
Pearson PLC		100,530		785,648
Shire PLC		7,002		345,875
Taylor Wimpey PLC		128,646		332,362
				3,181,443
UNITED STATES — 35.95%
AbbVie Inc.		13,005		979,276
Acuity Brands Inc.		1,116		197,298
Akamai Technologies Inc.a		5,985		282,193
Amgen Inc.		4,005		711,969
Arista Networks Inc.a		495		87,194
BioMarin Pharmaceutical Inc.a		603		54,385
Cadence Design Systems Inc.a,c		5,697		223,835
Celgene Corp.a		3,537		491,395
Citrix Systems Inc.a		4,995		390,659
Colgate-Palmolive Co.		4,077		292,076
DexCom Inc.a		225		16,787
Digital Realty Trust Inc.c		1,530		181,060
Edwards Lifesciences Corp.a		846		96,156
Gilead Sciences Inc.		13,500		1,130,085
Hormel Foods Corp.		4,311		132,520
Incyte Corp.a		333		45,758

Security	Shares		Value
Jazz Pharmaceuticals PLCa,c		405	$	60,491
JM Smucker Co. (The)		927		97,112
Kimberly-Clark Corp.		5,247		646,903
Procter & Gamble Co. (The)		10,539		972,434
Rockwell Automation Inc.		2,196		360,276
ServiceNow Inc.a,c		1,323		153,719
Tesla Inc.a,c		2,664		948,118
United Therapeutics Corp.a,c		414		54,151
Vertex Pharmaceuticals Inc.a		513		82,357
VMware Inc. Class Aa,c		1,251		135,233
Xylem Inc./NY		3,609		224,011
				9,047,451
TOTAL COMMON STOCKS				25,026,917
(Cost: $22,659,084)
SHORT-TERM INVESTMENTS — 1.94%
MONEY MARKET FUNDS — 1.94%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%d,e,f		480,537		480,681
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		8,389		8,389
				489,070
TOTAL SHORT-TERM INVESTMENTS
(Cost: $489,062)				489,070
TOTAL INVESTMENTS IN SECURITIES — 101.40%				25,515,987
(Cost: $23,148,146)g
Other Assets, Less Liabilities — (1.40)%				(351,930	)
NET ASSETS — 100.00%			$	25,164,057

NVDR  —  Non-Voting Depositary Receipts

^a  Non-income earning security.

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

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

^d  Affiliated issuer. See Schedule 1.

^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 (including short positions and derivatives, if any) for federal income tax purposes was $23,422,175. Net unrealized appreciation was $2,093,812, of which $2,880,433 represented gross unrealized appreciation on investments and $786,621 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 21

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL IMPACT ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		488,730		—			(8,193	)b		480,537	$	480,681	$	351	$	8	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		—		8,389	b		—			8,389		8,389		—		—		239
											$	489,070	$	351	$	8	$	239

^a Includes realized capital gain distributions from an affiliated fund, if any.

^b Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	24,793,135	$	233,782	$	—	$	25,026,917
Money market funds		489,070		—		—		489,070
Total	$	25,282,205	$	233,782	$	—	$	25,515,987

See notes to financial statements.

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  

iSHARES^® MSCI USA ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.82%
AEROSPACE & DEFENSE — 1.88%
Northrop Grumman Corp.		155	$	42,193
Raytheon Co.		252		45,866
Rockwell Collins Inc.		363		47,571
United Technologies Corp.		564		67,522
				203,152
AIR FREIGHT & LOGISTICS — 0.95%
Expeditors International of Washington Inc.		471		26,423
FedEx Corp.		60		12,863
United Parcel Service Inc. Class B		559		63,927
				103,213
AIRLINES — 0.21%
Delta Air Lines Inc.		238		11,231
Southwest Airlines Co.		213		11,106
				22,337
AUTOMOBILES — 0.34%
Tesla Inc.a		102		36,302
				36,302
BANKS — 5.85%
Bank of America Corp.		5,023		119,999
BB&T Corp.		351		16,177
Citigroup Inc.		1,490		101,365
Citizens Financial Group Inc.		428		14,180
Comerica Inc.		343		23,410
Fifth Third Bancorp.		494		12,908
First Republic Bank/CA		118		11,452
JPMorgan Chase & Co.		1,769		160,784
KeyCorp		1,289		22,184
M&T Bank Corp.		93		13,751
People’s United Financial Inc.		1,640		27,388
PNC Financial Services Group Inc. (The)b		453		56,811
Regions Financial Corp.		1,139		16,071
SVB Financial Groupa		100		16,934
U.S. Bancorp.		384		19,680
				633,094
BEVERAGES — 2.35%
Coca-Cola Co. (The)		2,466		112,326
Molson Coors Brewing Co. Class B		224		20,104
PepsiCo Inc.		1,055		122,095
				254,525

Security	Shares		Value
BIOTECHNOLOGY — 3.25%
AbbVie Inc.		844	$	63,553
Alexion Pharmaceuticals Inc.a		85		12,105
Amgen Inc.		362		64,353
Biogen Inc.a		139		44,002
Celgene Corp.a		392		54,461
Gilead Sciences Inc.		727		60,857
Incyte Corp.a		94		12,916
Regeneron Pharmaceuticals Inc.a		24		11,926
Vertex Pharmaceuticals Inc.a		176		28,255
				352,428
BUILDING PRODUCTS — 0.70%
Allegion PLC		254		19,992
Johnson Controls International PLC		1,061		42,005
Masco Corp.		382		14,046
				76,043
CAPITAL MARKETS — 3.97%
Ameriprise Financial Inc.		88		12,189
Bank of New York Mellon Corp. (The)		836		43,706
BlackRock Inc.b		166		69,556
Charles Schwab Corp. (The)		495		19,750
CME Group Inc.		182		22,896
Franklin Resources Inc.		471		20,361
Goldman Sachs Group Inc. (The)		224		50,118
Moody’s Corp.		136		18,228
Morgan Stanley		990		45,045
Northern Trust Corp.		379		33,541
S&P Global Inc.		187		28,860
State Street Corp.		439		40,603
T Rowe Price Group Inc.		147		12,401
TD Ameritrade Holding Corp.		296		12,823
				430,077
CHEMICALS — 2.39%
Axalta Coating Systems Ltd.a		438		12,930
Dow Chemical Co. (The)		990		65,983
Ecolab Inc.		664		88,511
International Flavors & Fragrances Inc.		175		23,949
Mosaic Co. (The)		601		12,008
PPG Industries Inc.		180		18,778
Praxair Inc.		144		18,942
Sherwin-Williams Co. (The)		52		17,642
				258,743
COMMUNICATIONS EQUIPMENT — 1.11%
Cisco Systems Inc.		3,022		97,339

SCHEDULES OF INVESTMENTS 23

Schedule of Investments (Continued)

iSHARES^® MSCI USA ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
Motorola Solutions Inc.		260	$	22,911
				120,250
CONSTRUCTION & ENGINEERING — 0.13%
Fluor Corp.		361		13,924
				13,924
CONSUMER FINANCE — 0.77%
Ally Financial Inc.		615		13,899
American Express Co.		675		58,118
Discover Financial Services		191		11,259
				83,276
CONTAINERS & PACKAGING — 0.14%
WestRock Co.		266		15,138
				15,138
DISTRIBUTORS — 0.12%
LKQ Corp.a		384		13,306
				13,306
DIVERSIFIED FINANCIAL SERVICES — 1.02%
Berkshire Hathaway Inc. Class Ba		546		98,913
Voya Financial Inc.		309		11,813
				110,726
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.88%
AT&T Inc.		2,293		85,896
CenturyLink Inc.		593		11,694
Level 3 Communications Inc.a		240		13,063
Verizon Communications Inc.		1,945		93,302
				203,955
ELECTRIC UTILITIES — 2.83%
American Electric Power Co. Inc.		412		30,335
Duke Energy Corp.		267		23,309
Edison International		352		28,223
Eversource Energy		684		43,092
Exelon Corp.		1,072		40,597
NextEra Energy Inc.		520		78,265
Southern Co. (The)		487		23,503
Xcel Energy Inc.		792		39,204
				306,528
ELECTRICAL EQUIPMENT — 0.46%
Acuity Brands Inc.		66		11,668
Eaton Corp. PLC		216		15,500
Rockwell Automation Inc.		135		22,148
				49,316
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.68%
Corning Inc.		870		25,021

Security	Shares		Value
Flex Ltd.a		734	$	11,942
TE Connectivity Ltd.		465		37,014
				73,977
ENERGY EQUIPMENT & SERVICES — 0.81%
Baker Hughes a GE Co.		196		6,644
Core Laboratories NV		180		15,872
Halliburton Co.		300		11,691
National Oilwell Varco Inc.		376		11,532
Schlumberger Ltd.		342		21,721
TechnipFMC PLCa		780		20,148
				87,608
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.00%
Alexandria Real Estate Equities Inc.		94		11,403
American Tower Corp.		316		46,784
Boston Properties Inc.		250		30,150
Equinix Inc.		105		49,183
HCP Inc.		442		13,176
Host Hotels & Resorts Inc.c		710		12,865
Iron Mountain Inc.		464		18,291
Liberty Property Trust		715		30,459
Prologis Inc.		728		46,126
SBA Communications Corp.a		105		16,123
UDR Inc.		433		16,809
Welltower Inc.		183		13,399
Weyerhaeuser Co.		602		19,631
				324,399
FOOD & STAPLES RETAILING — 0.82%
Costco Wholesale Corp.		72		11,285
CVS Health Corp.		360		27,842
Kroger Co. (The)		674		14,740
Sysco Corp.		223		11,746
Walgreens Boots Alliance Inc.		285		23,228
				88,841
FOOD PRODUCTS — 2.47%
Archer-Daniels-Midland Co.		404		16,693
Bunge Ltd.		280		20,896
Campbell Soup Co.		569		26,288
Conagra Brands Inc.		333		10,809
General Mills Inc.		943		50,224
JM Smucker Co. (The)		94		9,848
Kellogg Co.		859		56,230
Kraft Heinz Co. (The)		288		23,256
McCormick & Co. Inc./MD NVS		188		17,885
Mondelez International Inc. Class A		883		35,903
				268,032

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
HEALTH CARE EQUIPMENT & SUPPLIES — 1.61%
Abbott Laboratories		790	$	40,243
Align Technology Inc.a		77		13,609
Becton Dickinson and Co.		228		45,472
Edwards Lifesciences Corp.a		186		21,141
IDEXX Laboratories Inc.a		95		14,766
Medtronic PLC		336		27,088
ResMed Inc.		159		12,335
				174,654
HEALTH CARE PROVIDERS & SERVICES — 3.88%
Aetna Inc.		116		18,293
AmerisourceBergen Corp.		246		19,741
Anthem Inc.		85		16,663
Cardinal Health Inc.		739		49,853
Cigna Corp.		148		26,945
DaVita Inc.a		200		11,712
Envision Healthcare Corp.a		222		11,635
HCA Healthcare Inc.a		419		32,959
Henry Schein Inc.a		314		54,536
Humana Inc.		80		20,610
McKesson Corp.		78		11,646
MEDNAX Inc.a		263		11,796
Patterson Companies Inc.		708		27,258
Quest Diagnostics Inc.		267		28,929
UnitedHealth Group Inc.		323		64,245
VCA Inc.a		140		13,014
				419,835
HOTELS, RESTAURANTS & LEISURE — 1.54%
Hilton Worldwide Holdings Inc.		255		16,404
Marriott International Inc./MD Class A		276		28,588
McDonald’s Corp.		284		45,432
MGM Resorts International		366		12,064
Royal Caribbean Cruises Ltd.		137		17,051
Starbucks Corp.		470		25,784
Vail Resorts Inc.		95		21,655
				166,978
HOUSEHOLD DURABLES — 0.55%
Mohawk Industries Inc.a		99		25,059
Newell Brands Inc.		467		22,547
Whirlpool Corp.		68		11,670
				59,276
HOUSEHOLD PRODUCTS — 2.54%
Clorox Co. (The)		291		40,312
Colgate-Palmolive Co.		611		43,772

Security	Shares		Value
Kimberly-Clark Corp.		381	$	46,974
Procter & Gamble Co. (The)		1,556		143,572
				274,630
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.13%
AES Corp./VA		1,320		14,573
				14,573
INDUSTRIAL CONGLOMERATES — 2.73%
3M Co.		603		123,205
General Electric Co.		2,916		71,588
Honeywell International Inc.		639		88,354
Roper Technologies Inc.		56		12,917
				296,064
INSURANCE — 3.00%
Allstate Corp. (The)		245		22,172
American International Group Inc.		344		20,805
Chubb Ltd.		215		30,405
Hartford Financial Services Group Inc. (The)		327		17,681
Lincoln National Corp.		170		11,536
Loews Corp.		239		11,133
Marsh & McLennan Companies Inc.		683		53,329
MetLife Inc.		416		19,481
Principal Financial Group Inc.		317		19,819
Progressive Corp. (The)		396		18,406
Prudential Financial Inc.		428		43,690
Travelers Companies Inc. (The)		321		38,899
Willis Towers Watson PLC		116		17,223
				324,579
INTERNET & DIRECT MARKETING RETAIL — 2.54%
Amazon.com Inc.a		190		186,314
Netflix Inc.a		211		36,864
Priceline Group Inc. (The)a		28		51,858
				275,036
INTERNET SOFTWARE & SERVICES — 4.88%
Alphabet Inc. Class Aa		159		151,883
Alphabet Inc. Class Ca		167		156,868
eBay Inc.a		332		11,995
Facebook Inc. Class Aa		1,205		207,224
				527,970
IT SERVICES — 3.50%
Accenture PLC Class A		743		97,155
Automatic Data Processing Inc.		227		24,169
Cognizant Technology Solutions Corp. Class A		370		26,185

SCHEDULES OF INVESTMENTS 25

Schedule of Investments (Continued)

iSHARES^® MSCI USA ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
DXC Technology Co.		143	$	12,155
International Business Machines Corp.		282		40,334
MasterCard Inc. Class A		409		54,520
PayPal Holdings Inc.a		544		33,554
Visa Inc. Class A		876		90,683
				378,755
LEISURE PRODUCTS — 0.22%
Hasbro Inc.		124		12,183
Mattel Inc.		728		11,808
				23,991
LIFE SCIENCES TOOLS & SERVICES — 0.99%
Agilent Technologies Inc.		529		34,237
Illumina Inc.a		62		12,677
Mettler-Toledo International Inc.a		34		20,573
Quintiles IMS Holdings Inc.a		168		16,133
Waters Corp.a		126		23,118
				106,738
MACHINERY — 2.22%
Caterpillar Inc.		502		58,980
Cummins Inc.		323		51,480
Deere & Co.		230		26,664
Ingersoll-Rand PLC		372		31,765
Parker-Hannifin Corp.		133		21,398
Snap-on Inc.		87		12,838
Xylem Inc./NY		596		36,994
				240,119
MEDIA — 2.70%
Charter Communications Inc. Class Aa		74		29,492
Comcast Corp. Class A		1,501		60,956
Discovery Communications Inc. Class Aa		510		11,327
Liberty Global PLC Series C NVSa		764		25,235
Scripps Networks Interactive Inc. Class A		132		11,306
Time Warner Inc.		591		59,750
Walt Disney Co. (The)		936		94,723
				292,789
METALS & MINING — 0.11%
Nucor Corp.		223		12,290
				12,290
MULTI-UTILITIES — 1.11%
CMS Energy Corp.		440		21,358
Consolidated Edison Inc.		306		25,787
Dominion Energy Inc.		264		20,795
Public Service Enterprise Group Inc.		259		12,131
Sempra Energy		337		39,742
				119,813

Security	Shares		Value
MULTILINE RETAIL — 0.31%
Nordstrom Inc.		259	$	11,556
Target Corp.		405		22,085
				33,641
OIL, GAS & CONSUMABLE FUELS — 3.28%
Apache Corp.		322		12,506
ConocoPhillips		997		43,529
Devon Energy Corp.		556		17,458
EQT Corp.		193		12,031
Exxon Mobil Corp.		1,060		80,910
Hess Corp.		490		19,061
Kinder Morgan Inc./DE		800		15,464
Marathon Oil Corp.		1,061		11,798
Marathon Petroleum Corp.		375		19,669
Newfield Exploration Co.a		461		12,046
Noble Energy Inc.		673		15,997
Occidental Petroleum Corp.		444		26,507
ONEOK Inc.		261		14,136
Phillips 66		268		22,461
Valero Energy Corp.		287		19,545
Williams Companies Inc. (The)		394		11,714
				354,832
PHARMACEUTICALS — 4.60%
Allergan PLC		105		24,095
Bristol-Myers Squibb Co.		920		55,642
Eli Lilly & Co.		614		49,912
Jazz Pharmaceuticals PLCa		79		11,799
Johnson & Johnson		1,307		173,008
Merck & Co. Inc.		1,554		99,238
Pfizer Inc.		1,343		45,555
Zoetis Inc.		629		39,438
				498,687
PROFESSIONAL SERVICES — 0.19%
ManpowerGroup Inc.		188		20,964
				20,964
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.29%
CBRE Group Inc. Class Aa		535		19,303
Jones Lang LaSalle Inc.		98		11,947
				31,250
ROAD & RAIL — 0.94%
AMERCO		32		11,943
CSX Corp.		388		19,478
Norfolk Southern Corp.		191		23,019
Union Pacific Corp.		448		47,174
				101,614

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA ESG OPTIMIZED ETF

August 31, 2017

Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 3.43%
Analog Devices Inc.		160	$	13,387
Applied Materials Inc.		731		32,983
Broadcom Ltd.		116		29,240
Intel Corp.		3,179		111,487
Lam Research Corp.		132		21,909
Micron Technology Inc.a		391		12,500
NVIDIA Corp.		324		54,899
QUALCOMM Inc.		432		22,581
Skyworks Solutions Inc.		113		11,906
Texas Instruments Inc.		735		60,873
				371,765
SOFTWARE — 6.46%
Activision Blizzard Inc.		187		12,260
Adobe Systems Inc.a		325		50,427
Autodesk Inc.a		179		20,488
CA Inc.		469		15,561
Cadence Design Systems Inc.a		596		23,417
Citrix Systems Inc.a		165		12,905
Dell Technologies Inc. Class Va		187		14,012
Electronic Arts Inc.a		101		12,272
Intuit Inc.		225		31,826
Microsoft Corp.		4,435		331,605
Oracle Corp.		1,815		91,349
salesforce.com Inc.a		556		53,092
Symantec Corp.		577		17,298
Workday Inc. Class Aa		121		13,273
				699,785
SPECIALTY RETAIL — 2.24%
Best Buy Co. Inc.		407		22,084
CarMax Inc.a		178		11,953
Gap Inc. (The)		592		13,983
Home Depot Inc. (The)		671		100,563
Lowe’s Companies Inc.		542		40,048
Signet Jewelers Ltd.		215		13,560
Tiffany & Co.		313		28,608
Tractor Supply Co.		206		12,259
				243,058
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 4.60%
Apple Inc.		2,583		423,612
Hewlett Packard Enterprise Co.		1,678		30,304
HP Inc.		1,647		31,425
Xerox Corp.		399		12,876
				498,217

Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 0.81%
NIKE Inc. Class B		956	$	50,486
PVH Corp.		120		15,107
VF Corp.		356		22,382
				87,975
THRIFTS & MORTGAGE FINANCE — 0.11%
New York Community Bancorp. Inc.		950		11,448
				11,448
TRADING COMPANIES & DISTRIBUTORS — 0.18%
WW Grainger Inc.		119		19,346
				19,346
TOTAL COMMON STOCKS
(Cost: $10,116,671)				10,809,862
SHORT-TERM INVESTMENTS — 0.32%
MONEY MARKET FUNDS — 0.32%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%b,d,e		5,359		5,361
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,d		28,983		28,983
				34,344
TOTAL SHORT-TERM INVESTMENTS
(Cost: $34,344)				34,344
TOTAL INVESTMENTS IN SECURITIES — 100.14%
(Cost: $10,151,015)f				10,844,206
Other Assets, Less Liabilities — (0.14)%				(14,688	)
NET ASSETS — 100.00%			$	10,829,518

NVS  —  Non-Voting Shares

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^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 (including short positions and derivatives, if any) for federal income tax purposes was $10,203,782. Net unrealized appreciation was $640,424, of which $783,220 represented gross unrealized appreciation on investments and $142,796 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 27

Schedule of Investments (Continued)

iSHARES^® MSCI USA ESG OPTIMIZED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the period ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 12/01/16a		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)b			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		5,359	c		—			5,359	$	5,361	$	(4	)	$	—	$	—	d
BlackRock Cash Funds: Treasury, SL Agency Shares		—		28,983	c		—			28,983		28,983		—			—		37
BlackRock Inc.		—		212			(46	)		166		69,556		671			3,189		1,078
PNC Financial Services Group Inc. (The)		—		538			(85	)		453		56,811		1,267			1,529		351
											$	160,711	$	1,934		$	4,718	$	1,466

^a  The Fund commenced operations on December 1, 2016.

^b  Includes realized capital gain distributions from an affiliated fund, if any.

^c  Net of shares purchased and sold.

^d  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	10,809,862	$	—	$	—	$	10,809,862
Money market funds		34,344		—		—		34,344
Total	$	10,844,206	$	—	$	—	$	10,844,206

See notes to financial statements.

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^® TRUST

August 31, 2017

	iShares MSCI EAFE ESG Optimized ETF			iShares MSCI Global Impact ETF			iShares MSCI USA ESG Optimized ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	106,220,632		$	22,659,084		$	9,995,022
Affiliated (Note 2)		133,338			489,062			155,993
Total cost of investments in securities	$	106,353,970		$	23,148,146		$	10,151,015
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	121,631,708		$	25,026,917		$	10,683,495
Affiliated (Note 2)		133,338			489,070			160,711
Foreign currency, at valueb		77,596			43,692			—
Receivables:
Investment securities sold		2,303,456			482,765			640,293
Dividends and interest		268,774			43,777			14,556
Capital shares sold		—			2,770,619			—
Tax reclaims		98,236			20,807			—
Total Assets		124,513,108			28,877,647			11,499,055
LIABILITIES
Payables:
Investment securities purchased		2,245,367			2,266,319			663,298
Collateral for securities on loan (Note 1)		121,706			480,322			5,365
Capital shares redeemed		—			956,655			—
Investment advisory fees (Note 2)		22,712			10,294			874
Total Liabilities		2,389,785			3,713,590			669,537
NET ASSETS	$	122,123,323		$	25,164,057		$	10,829,518
Net assets consist of:
Paid-in capital	$	106,461,921		$	23,043,586		$	10,123,413
Undistributed net investment income		483,168			109,394			28,501
Undistributed net realized loss		(239,078	)		(355,946	)		(15,587	)
Net unrealized appreciation		15,417,312			2,367,023			693,191
NET ASSETS	$	122,123,323		$	25,164,057		$	10,829,518
Shares outstandingc		1,900,000			450,000			200,000
Net asset value per share	$	64.28		$	55.92		$	54.15

^a  Securities on loan with values of $115,722, $463,779 and $5,255, respectively. See Note 1.

^b  Cost of foreign currency: $77,138, $43,528 and $  —, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 29

Statements of Operations

iSHARES^® TRUST

Year ended August 31, 2017

	iShares MSCI EAFE ESG Optimized ETF			iShares MSCI Global Impact ETF			iShares MSCI USA ESG Optimized ETFa
NET INVESTMENT INCOME
Dividends — unaffiliatedb	$	2,808,196		$	489,125		$	95,830
Dividends — affiliated (Note 2)		573			239			1,466
Securities lending income — affiliated — net (Note 2)		5,940			13,548			86
Non-cash dividends — unaffiliated		154,431			—			—
Total investment income		2,969,140			502,912			97,382
EXPENSES
Investment advisory fees (Note 2)		322,530			96,746			12,206
Proxy fees		2,669			456			113
Total expenses		325,199			97,202			12,319
Net investment income		2,643,941			405,710			85,063
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(225,102	)		(160,843	)		(1,995	)
Investments — affiliated (Note 2)		(30	)		351			132
In-kind redemptions — unaffiliated		1,682,176			729,801			205,565
In-kind redemptions — affiliated (Note 2)		—			—			1,802
Foreign currency transactions		23,761			554			—
Net realized gain		1,480,805			569,863			205,504
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		14,926,841			2,225,580			688,473
Investments — affiliated (Note 2)		—			8			4,718
Translation of assets and liabilities in foreign currencies		6,281			17			—
Net change in unrealized appreciation/depreciation		14,933,122			2,225,605			693,191
Net realized and unrealized gain		16,413,927			2,795,468			898,695
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	19,057,868		$	3,201,178		$	983,758

^a  For the period from December 1, 2016 (commencement of operations) to August 31, 2017.

^b  Net of foreign withholding tax of $272,063, $30,298 and $16, respectively.

See notes to financial statements.

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares MSCI EAFE  ESG Optimized ETF						iShares MSCI Global Impact ETF
	Year ended August 31, 2017			Period from June 28, 2016a to August 31, 2016			Year ended August 31, 2017			Period from April 20, 2016a to August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,643,941		$	15,967		$	405,710		$	145,792
Net realized gain (loss)		1,480,805			(3,110	)		569,863			44,290
Net change in unrealized appreciation/depreciation		14,933,122			484,190			2,225,605			141,418
Net increase in net assets resulting from operations		19,057,868			497,047			3,201,178			331,500
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,217,000	)		—			(449,781	)		(69,038	)
Total distributions to shareholders		(2,217,000	)		—			(449,781	)		(69,038	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		112,301,040			5,087,416			13,057,788			17,102,258
Cost of shares redeemed		(12,603,048	)		—			(5,529,043	)		(2,480,805	)
Net increase in net assets from capital share transactions		99,697,992			5,087,416			7,528,745			14,621,453
INCREASE IN NET ASSETS		116,538,860			5,584,463			10,280,142			14,883,915
NET ASSETS
Beginning of period		5,584,463			—			14,883,915			—
End of period	$	122,123,323		$	5,584,463		$	25,164,057		$	14,883,915
Undistributed net investment income included in net assets at end of period	$	483,168		$	16,231		$	109,394		$	80,692
SHARES ISSUED AND REDEEMED
Shares sold		2,000,000			100,000			250,000			350,000
Shares redeemed		(200,000	)		—			(100,000	)		(50,000	)
Net increase in shares outstanding		1,800,000			100,000			150,000			300,000

^a  Commencement of operations.

See notes to financial statements.

FINANCIAL STATEMENTS 31

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI USA ESG Optimized ETF
	Period from December 1, 2016a to August 31, 2017
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	85,063
Net realized gain		205,504
Net change in unrealized appreciation/depreciation		693,191
Net increase in net assets resulting from operations		983,758
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(56,562	)
Total distributions to shareholders		(56,562	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		12,509,704
Cost of shares redeemed		(2,607,382	)
Net increase in net assets from capital share transactions		9,902,322
INCREASE IN NET ASSETS		10,829,518
NET ASSETS
Beginning of period		—
End of period	$	10,829,518
Undistributed net investment income included in net assets at end of period	$	28,501
SHARES ISSUED AND REDEEMED
Shares sold		250,000
Shares redeemed		(50,000	)
Net increase in shares outstanding		200,000

^a  Commencement of operations.

See notes to financial statements.

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares MSCI EAFE ESG Optimized ETF

	Year ended Aug. 31, 2017			Period from Jun. 28, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	55.84		$	50.87
Income from investment operations:
Net investment incomeb		1.87			0.16
Net realized and unrealized gainc		7.68			4.81
Total from investment operations		9.55			4.97
Less distributions from:
Net investment income		(1.11	)		—
Total distributions		(1.11	)		—
Net asset value, end of period	$	64.28		$	55.84
Total return		17.16	%		9.79	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	122,123		$	5,584
Ratio of expenses to average net assetse		0.38	%		0.40	%
Ratio of net investment income to average net assetse		3.10	%		1.67	%
Portfolio turnover ratef		9	%		5	%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 33

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

iShares MSCI Global Impact ETF

	Year ended Aug. 31, 2017			Period from Apr. 20, 2016a to Aug. 31, 2016
Net asset value, beginning of period	$	49.61		$	48.70
Income from investment operations:
Net investment incomeb		1.05			0.49
Net realized and unrealized gainc		6.44			0.65
Total from investment operations		7.49			1.14
Less distributions from:
Net investment income		(1.18	)		(0.23	)
Total distributions		(1.18	)		(0.23	)
Net asset value, end of period	$	55.92		$	49.61
Total return		15.27	%		2.38	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	25,164		$	14,884
Ratio of expenses to average net assetse		0.49	%		0.49	%
Ratio of net investment income to average net assetse		2.05	%		2.76	%
Portfolio turnover ratef		32	%		28	%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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the year ended August 31, 2017 and the period ended August 31, 2016 were 32% and 28%, respectively. See Note 4.

See notes to financial statements.

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

iShares MSCI USA ESG Optimized ETF

	Period from Dec. 1, 2016a to Aug. 31, 2017
Net asset value, beginning of period	$	47.79
Income from investment operations:
Net investment incomeb		0.71
Net realized and unrealized gainc		6.22
Total from investment operations		6.93
Less distributions from:
Net investment income		(0.57	)
Total distributions		(0.57	)
Net asset value, end of period	$	54.15
Total return		14.55	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	10,830
Ratio of expenses to average net assetse		0.27	%
Ratio of net investment income to average net assetse		1.85	%
Portfolio turnover ratef		22	%d

^a  Commencement of operations.

^b  Based on average shares outstanding throughout the period.

^c  The amount 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 rate excludes portfolio securities received or delivered as a result of processing capital share transactions in Creation Units.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 35

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
MSCI EAFE ESG Optimized	Non-diversified
MSCI Global Impact	Non-diversified
MSCI USA ESG Optimizeda	Non-diversified

^a  The Fund commenced operations on December 1, 2016.

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”).

36 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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 to valuation techniques are categorized into a fair value 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 37

Notes to Financial Statements (Continued)

iSHARES^® TRUST

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax 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 August 31, 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 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

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original 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 39

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 August 31, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
MSCI EAFE ESG Optimized
Morgan Stanley & Co. LLC	$	115,722	$	115,722	$	—
MSCI Global Impact
HSBC Bank PLC	$	2,556	$	2,556	$	—
JPMorgan Securities LLC		83,950		83,950		—
Morgan Stanley & Co. LLC		80,164		80,164		—
Nomura Securities International Inc.		176,876		176,876		—
Scotia Capital (USA) Inc.		120,233		120,233		—
	$	463,779	$	463,779	$	—
iShares MSCI USA ESG Optimized ETF
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)	$	5,255	$	5,255	$	—

^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.

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

iShares ETF	Investment Advisory Fee
MSCI EAFE ESG Optimized		0.20	%
MSCI Global Impact		0.49
MSCI USA ESG Optimized		0.15

Prior to August 4, 2017, for its investment advisory services to each of the iShares MSCI EAFE ESG Optimized ETF and iShares MSCI USA ESG Optimized ETF, BFA was entitled to an annual investment advisory fee of 0.40% and 0.28%, respectively.

The U.S. Securities and Exchange Commission 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

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 MSCI USA ESG Optimized ETF (the “Group 1 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.

Pursuant to a securities lending agreement, the iShares MSCI EAFE ESG Optimized and iShares MSCI Global Impact ETFs (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, the 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 August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
MSCI EAFE ESG Optimized	$	1,550
MSCI Global Impact		3,052
MSCI USA ESG Optimized		38

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 August 31, 2017, the purchases and sales transactions executed by the iShares MSCI EAFE ESG Optimized ETF pursuant to Rule 17a-7 under the 1940 Act were $4,739 and $190,023, respectively.

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.

It is possible that, from time to time, BlackRock and/or funds or other accounts managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of August 31, 2017, the number of affiliated accounts that

NOTES TO FINANCIAL STATEMENTS 41

Notes to Financial Statements (Continued)

iSHARES^® TRUST

individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:

iShares ETF	Number of Affiliated Accounts		Aggregate Affiliated Ownership Percentage
MSCI EAFE ESG Optimized		1		37	%
MSCI Global Impact		1		14	%

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 August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
MSCI EAFE ESG Optimized	$	14,210,022	$	7,828,862
MSCI Global Impact		7,369,662		6,370,062
MSCI USA ESG Optimized		6,288,388		1,498,223

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
MSCI EAFE ESG Optimized	$	103,878,173	$	10,581,666
MSCI Global Impact		9,872,205		3,444,620
MSCI USA ESG Optimized		7,723,686		2,601,957

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

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. 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.

NOTES TO FINANCIAL STATEMENTS 43

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 August 31, 2017, attributable to passive foreign investment companies, the use of equalization, 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
MSCI EAFE ESG Optimized	$	1,676,513	$	39,996	$	(1,716,509	)
MSCI Global Impact		722,320		72,773		(795,093	)
MSCI USA ESG Optimized		221,091		—		(221,091	)

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
MSCI EAFE ESG Optimized
Ordinary income	$	2,217,000	$	N/A
MSCI Global Impact
Ordinary income	$	449,781	$	69,038
MSCI USA ESG Optimized
Ordinary income	$	56,562	$	N/A

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of August 31, 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
MSCI EAFE ESG Optimized	$	736,692	$	(232,713	)	$	15,157,423	$	15,661,402
MSCI Global Impact		240,051		(212,446	)		2,092,866		2,120,471
MSCI USA ESG Optimized		65,681		—			640,424		706,105

^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 realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

As of August 31, 2017, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

iShares ETF	Non- Expiring
MSCI EAFE ESG Optimized	$	232,713
MSCI Global Impact		212,446

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 August 31, 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 (the “Plaintiffs”) 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 putative 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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

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, except as noted below.

At a meeting held on September 14-15, 2017, the Board approved a line of credit for the iShares MSCI Global Impact ETF. The Fund, along with certain other iShares funds, will be a party to a $275 million credit agreement with State Street Bank and Trust Company, which will expire on October 24, 2018. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement is expected to be effective on or around October 25, 2017.

NOTES TO FINANCIAL STATEMENTS 45

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of iShares Trust and

Shareholders of the iShares MSCI EAFE ESG Optimized ETF, iShares MSCI Global Impact ETF and

iShares MSCI USA ESG Optimized 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 MSCI EAFE ESG Optimized ETF, iShares MSCI Global Impact ETF and iShares MSCI USA ESG Optimized ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

46 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 August 31, 2017:

iShares ETF	Qualified Dividend Income
MSCI EAFE ESG Optimized	$	3,024,649
MSCI Global Impact		474,244
MSCI USA ESG Optimized		93,654

For corporate shareholders, the percentage of income dividends paid during the fiscal year ended August 31, 2017 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends- Received Deduction
MSCI Global Impact		19.92	%
MSCI USA ESG Optimized		73.13

For the fiscal year ended August 31, 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
MSCI EAFE ESG Optimized	$	3,234,690	$	251,385
MSCI Global Impact		392,004		29,361

The iShares MSCI USA ESG Optimized ETF hereby designates $190 as 20% rate long-term capital gain dividends for the fiscal year ended August 31, 2017.

TAX INFORMATION 47

Board Review and Approval of Investment Advisory

Contract (Unaudited)

iSHARES^® TRUST

I. iShares MSCI EAFE ESG Optimized ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and performance of the fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, extent and quality of services provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of services provided to fund and profits realized by BFA and affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 49

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. During the June 19-21, 2017 meeting, the Board approved a permanent reduction to the advisory fee rate charged to the Fund. In addition, the Board noted that should additional material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and services provided for other comparable funds/accounts managed by BFA and its affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI Global Impact ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and performance of the fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 51

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, extent and quality of services provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of services provided to fund and profits realized by BFA and affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and services provided for other comparable funds/accounts managed by BFA and its affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other benefits to BFA and/or its affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 53

Board Review and Approval of Investment Advisory

Contract (Unaudited) (Continued)

iSHARES^® TRUST

securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^® TRUST

Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.

Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

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
MSCI EAFE ESG Optimized	$	1.111035	$	—	$	—	$	1.111035		100	%		—	%		—	%		100	%
MSCI Global Impact		1.175786		—		—		1.175786		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 ask on the primary securities exchange on which 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 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 55

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding 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. Each line in each 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 MSCI EAFE ESG Optimized ETF

Period Covered: June 28, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.5% and Less than 2.0%		1		0.39	%
Greater than 1.0% and Less than 1.5%		11		4.33
Greater than 0.5% and Less than 1.0%		86		33.86
Greater than 0.0% and Less than 0.5%		133		52.37
At NAV		3		1.18
Less than 0.0% and Greater than –0.5%		16		6.30
Less than –0.5% and Greater than –1.0%		4		1.57
		254		100.00	%

iShares MSCI Global Impact ETF

Period Covered: April 20, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.0%		6		1.98	%
Greater than 1.5% and Less than 2.0%		2		0.66
Greater than 1.0% and Less than 1.5%		11		3.63
Greater than 0.5% and Less than 1.0%		85		28.05
Greater than 0.0% and Less than 0.5%		179		59.08
At NAV		3		0.99
Less than 0.0% and Greater than –0.5%		14		4.62
Less than –0.5% and Greater than –1.0%		2		0.66
Less than –1.0%		1		0.33
		303		100.00	%

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI USA ESG Optimized ETF

Period Covered: December 1, 2016 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		92		63.01	%
At NAV		18		12.33
Less than 0.0% and Greater than –0.5%		36		24.66
		146		100.00	%

SUPPLEMENTAL INFORMATION 57

Trustee and Officer Information (Unaudited)

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 344 funds (as of August 31, 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.

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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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).	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 (14 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); Equity Plus Committee Chair (since 2017).	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 (62)	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); 15(c) Committee Chair (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).

TRUSTEE AND OFFICER INFORMATION 59

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Independent Trustees (Continued)

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Trustee
John E. Martinez (56)	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).
Madhav V. Rajan (53)	Trustee (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); 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).

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information (Unaudited) (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (42)	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 (55)	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 of 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 61

Notes:

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 MSCI 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-817-0817

AUGUST 31, 2017

2017 ANNUAL REPORT

iShares Trust

^Ø  iShares MSCI All Peru Capped ETF  |  EPU  |  NYSE Arca

^Ø  iShares MSCI Argentina and Global Exposure ETF  |  AGT  |  BATS

^Ø  iShares MSCI Brazil Small-Cap ETF  |  EWZS  |  NASDAQ

^Ø  iShares MSCI China ETF  |  MCHI  |  NASDAQ

^Ø  iShares MSCI China Small-Cap ETF  |  ECNS  |  NYSE Arca

^Ø  iShares MSCI Indonesia ETF  |  EIDO  |  NYSE Arca

^Ø  iShares MSCI Philippines ETF  |  EPHE  |  NYSE Arca

^Ø  iShares MSCI Poland Capped ETF  |  EPOL  |  NYSE Arca

^Ø  iShares MSCI Qatar Capped ETF  |  QAT  |  NASDAQ

^Ø  iShares MSCI Saudi Arabia Capped ETF  |  KSA  |  NYSE Arca

^Ø  iShares MSCI UAE Capped ETF  |  UAE  |  NASDAQ

Table of Contents

Management’s Discussions of Fund Performance	5
About Fund Performance	28
Shareholder Expenses	28
Schedules of Investments	29
iShares MSCI All Peru Capped ETF	29
iShares MSCI Argentina and Global Exposure ETF	31
iShares MSCI Brazil Small-Cap ETF	33
iShares MSCI China ETF	36
iShares MSCI China Small-Cap ETF	42
iShares MSCI Indonesia ETF	52
iShares MSCI Philippines ETF	55
iShares MSCI Poland Capped ETF	57
iShares MSCI Qatar Capped ETF	59
iShares MSCI Saudi Arabia Capped ETF	61
iShares MSCI UAE Capped ETF	64
Financial Statements	66
Financial Highlights	80
Notes to Financial Statements	91
Report of Independent Registered Public Accounting Firm	105
Tax Information	106
Board Review and Approval of Investment Advisory Contract	107
Supplemental Information	120
Trustee and Officer Information	131

Management’s Discussion of Fund Performance

iSHARES^® TRUST

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended August 31, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 17.11% in U.S. dollar terms for the reporting period.

The primary factor behind the robust performance of global equity markets was improving global economic growth, driven largely by the continuation of accommodative monetary policies from many of the world’s central banks. Signs of stronger economic activity in Europe emerged as the European Central Bank (“ECB”) maintained policies such as quantitative easing and negative interest rates. Economic growth rates in China and Japan, the largest economies in Asia, also increased during the reporting period, reflecting efforts by the People’s Bank of China (“PBOC”) and the Bank of Japan (“BOJ”) to stimulate economic activity. Stronger economic growth led several central banks to consider reducing their economic stimulus measures. For example, late in the reporting period, the ECB discussed the possibility of tapering its quantitative easing program, while the PBOC increased short-term interest rates during the first half of 2017.

On a regional basis, European equity markets posted the best returns among developed markets, advancing by approximately 20% in U.S. dollar terms for the reporting period. European stocks benefited from improving economic conditions and stronger corporate earnings. In addition, election outcomes in France and the Netherlands eased investor concerns about nationalist presidential candidates and their opposition to the European Union (“E.U.”). Currency fluctuations also contributed meaningfully to European equity performance in U.S. dollar terms as the euro appreciated by approximately 6% against the U.S. dollar during the reporting period. The best-performing European stock markets included Austria, Italy, and Spain, while Ireland and Belgium posted the weakest returns.

Equity markets in the Asia-Pacific region gained about 16% in U.S. dollar terms for the reporting period, led by Singapore and Hong Kong. Japanese stocks also posted strong returns, benefiting from improving consumer spending and employment trends that contributed to the ongoing recovery in the Japanese economy. However, equity market returns in Japan were hindered by a decline in the Japanese yen, which depreciated by approximately 6% against the U.S. dollar.

The U.S. stock market returned approximately 15% for the reporting period. Despite mixed U.S. economic data, U.S. stocks advanced initially in anticipation of pro-business fiscal policies from the new presidential administration. Although the administration struggled to implement its fiscal agenda, stocks continued to move higher as better global economic conditions led to a notable improvement in corporate earnings growth, particularly for multinational companies with significant operations outside of the U.S. U.S. stocks advanced despite three short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the reporting period, which increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to start reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017.

Emerging markets stocks outperformed those in developed markets, returning more than 23% in U.S. dollar terms for the reporting period. Emerging markets in Eastern Europe were the best performers, led by Poland, Greece, and Hungary. Equity markets in the Middle East trailed for the reporting period amid continued geopolitical conflict in the region.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 5

Management’s Discussion of Fund Performance

iSHARES^® MSCI ALL PERU CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.89%		19.49%		17.93%		16.89%		19.49%		17.93%
5 Years		(0.06)%		0.12%		0.64%		(0.29)%		0.59%		3.23%
Since Inception		7.12%		7.08%		7.89%		75.74%		75.23%		86.38%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/19/09. The first day of secondary market trading was 6/22/09.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,118.60	$	3.26	$	1,000.00	$	1,022.10	$	3.11		0.61%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

6 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ALL PERU CAPPED ETF

The iShares MSCI All Peru Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Peruvian equities, as represented by the MSCI All Peru Capped 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 August 31, 2017, the total return for the Fund was 16.89%, net of fees, while the total return for the Index was 17.93%.

Peru’s stock market benefited from continuing economic growth during the reporting period. The country’s economy relies heavily on exports, with ore and mineral exports representing more than half of Peru’s total exports. During the reporting period, Peru’s economy benefited from significant increases in sales of some of its largest export products, including copper, gold, zinc, oil, and gas. Benign inflationary conditions led to increased consumer spending, which reached a record high in the second quarter of 2017. In an effort to stimulate economic growth, Peru’s central bank reduced interest rates twice during the reporting period, to the lowest level since December 2015.

The materials sector, the largest sector in the Index, representing approximately 47% of the Index on average for the reporting period, was the largest contributor to the Index’s return. Metals and mining companies contributed the most in the materials sector, benefiting from increased export demand for steel, particularly from China. The financials sector also contributed significantly to the Index’s performance amid strength in Peruvian banks. Other contributors to the Index’s return included the consumer staples and consumer discretionary sectors.

In contrast, the industrials sector detracted from the Index’s return for the reporting period as the construction and engineering industry struggled. The utilities and energy sectors also detracted slightly from the Index’s performance amid a decline in energy prices.

The Peruvian sol, which appreciated approximately 4% relative to the U.S. dollar during the reporting period, contributed to the Index’s performance, as returns on Peruvian investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Materials	49.52	%
Financials	29.77
Consumer Staples	8.40
Industrials	5.28
Utilities	3.09
Consumer Discretionary	3.04
Energy	0.90
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Credicorp Ltd.	22.65	%
Southern Copper Corp.	12.86
Cia. de Minas Buenaventura SAA ADR	9.43
Alicorp SAA	4.63
Intercorp Financial Services Inc.	4.50
Hochschild Mining PLC	4.03
Volcan Cia. Minera SAA Class B	3.62
Ferreycorp SAA	3.23
Cementos Pacasmayo SAA	3.17
SACI Falabella	3.04
TOTAL	71.16	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 7

Management’s Discussion of Fund Performance

iSHARES^® MSCI ARGENTINA AND GLOBAL EXPOSURE ETF

Performance as of August 31, 2017

	Cumulative Total Returns
	NAV		MARKET		INDEX
Since Inception		2.00%		2.15%		2.85%

The inception date of the Fund was 4/25/17. The first day of secondary market trading was 4/27/17.

For the fiscal period ended 8/31/17, the Fund did not have six months of performance and therefore line graphs are not presented.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (4/25/17) a		Ending Account Value (8/31/17)		Expenses Paid During Period b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period b		Annualized Expense Ratio
$	1,000.00	$	1,020.00	$	2.09	$	1,000.00	$	1,022.20	$	3.01		0.59%

^a  The beginning of the period (commencement of operations) is April 25, 2017.

^b  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 (128 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

8 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ARGENTINA AND GLOBAL EXPOSURE ETF

The iShares MSCI Argentina and Global Exposure ETF (the “Fund”) seeks to track the investment results of the MSCI All Argentina 25/50 Index (the “Index”), a broad-based equity index with exposure to Argentina, as defined by the index provider. 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 period from April 25, 2017 (inception date of the Fund) through August 31, 2017 (the “reporting period”), the total return for the Fund was 2.00%, net of fees, while the total return for the Index was 2.85%.

Argentinian stocks benefited from improving economic conditions during the reporting period. In the second quarter of 2017, the country’s economy grew at the strongest rate since the third quarter of 2015. Construction and manufacturing contributed to the economic expansion. Argentina’s inflation rate decreased modestly in June 2017 for a third consecutive month. In May and June 2017, industrial production improved following 15 months of decline, with the June expansion the fastest since July 2011, due primarily to mining and tobacco production. The country’s unemployment rate decreased in the second quarter of 2017, although the underemployment rate widened.

Information technology, the largest sector in the Index at about 25% on average for the reporting period, contributed the most to the Index’s return, due primarily to the software and services industry. The financials sector also contributed significantly to the Index’s performance as banks generally performed well. The telecommunication services sector was a modest contributor to the Index’s performance for the reporting period, with smaller contributions from the industrials, materials, and utilities sectors.

On the downside, the energy sector detracted the most from the Index’s return for the reporting period as energy prices declined. The real estate sector was also a modest detractor from the Index’s performance.

Currency fluctuations negatively impacted the Index’s return as the Argentinian peso declined by about 12% relative to the U.S. dollar for the reporting period. As a result, returns on Argentinian investments were lower when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Information Technology	25.27	%
Energy	20.88
Financials	19.71
Consumer Staples	9.08
Consumer Discretionary	5.65
Utilities	4.54
Telecommunication Services	4.22
Real Estate	3.83
Industrials	3.49
Materials	3.33
TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17

Country Percentage of
Total  Investments*

Argentina	51.08	%
United States	22.46
Italy	13.06
Canada	5.16
Chile	4.98
Spain	1.66
Mexico	1.60
TOTAL	100.00	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 9

Management’s Discussion of Fund Performance

iSHARES^® MSCI BRAZIL SMALL-CAP ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		45.92%		45.35%		47.08%		45.92%		45.35%		47.08%
5 Years		(6.26)%		(6.09)%		(5.91)%		(27.61)%		(26.95)%		(26.26)%
Since Inception		(3.74)%		(3.78)%		(3.36)%		(23.22)%		(23.41)%		(21.10)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,169.40	$	3.34	$	1,000.00	$	1,022.10	$	3.11		0.61%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

10 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI BRAZIL SMALL-CAP ETF

The iShares MSCI Brazil Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Brazilian equities, as represented by the MSCI Brazil Small Cap 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 August 31, 2017, the total return for the Fund was 45.92%, net of fees, while the total return for the Index was 47.08%.

The sharp advance in Brazilian small-capitalization stocks was driven largely by a rebound in economic activity. The Brazilian economy grew for the first time in more than three years in the second quarter of 2017. Consumer spending drove economic growth, supported by falling inflation, which hit a record low in June 2017. Exports, an important component of Brazil’s economy, increased significantly, particularly for some of the country’s main export products, including oil, iron ore, and soybeans. The growth in exports was led by demand from Brazil’s largest trading partners, including China, the U.S., and Argentina. To stimulate economic growth, the country’s central bank made its seventh consecutive interest rate reduction in July 2017, which brought borrowing costs to their lowest level since September 2013.

Consumer discretionary, the largest sector in the Index on average during the reporting period, contributed the most to the Index’s performance, led by the retail industry amid stronger consumer spending. The materials sector also contributed significantly to the Index’s return as small-capitalization steel producers benefited from improved demand in China, which contributed to an increase in steel prices.

The utilities sector also helped the Index’s performance for the reporting period, largely due to small-capitalization electric and water utilities. Other contributors to the Index’s return included small-capitalization companies in the industrials, healthcare, and financials sectors.

Currency fluctuations notably impacted the Index’s return as the Brazilian real appreciated by about 3% relative to the U.S. dollar for the reporting period, making returns on Brazilian investments higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Consumer Discretionary	38.16	%
Utilities	14.82
Materials	10.96
Industrials	10.82
Real Estate	5.38
Health Care	5.28
Consumer Staples	5.25
Information Technology	4.63
Financials	4.22
Energy	0.48
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Estacio Participacoes SA	5.50	%
Bradespar SA (Preferred)	4.77
Fleury SA	3.57
Smiles SA	3.40
Cia. Hering	3.09
MRV Engenharia e Participacoes SA	3.03
CVC Brasil Operadora e Agencia de Viagens SA	3.01
B2W Cia. Digital	2.95
Magazine Luiza SA	2.91
Metalurgica Gerdau SA (Preferred)	2.86
TOTAL	35.09	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 11

Management’s Discussion of Fund Performance

iSHARES^® MSCI CHINA ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		34.13%		34.39%		35.00%		34.13%		34.39%		35.00%
5 Years		11.55%		11.44%		12.14%		72.69%		71.90%		77.32%
Since Inception		5.62%		5.60%		6.19%		42.14%		41.98%		47.06%

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,277.00	$	3.50	$	1,000.00	$	1,022.10	$	3.11		0.61%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

12 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI CHINA ETF

The iShares MSCI China ETF (the “Fund”) seeks to track the investment results of an index composed of Chinese equities that are available to international investors, as represented by the MSCI China 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 August 31, 2017, the total return for the Fund was 34.13%, net of fees, while the total return for the Index was 35.00%.

The strong performance of Chinese stocks for the reporting period was driven largely by a rebound in the Chinese economy. As a major global exporter, China benefited from strengthening economic growth in many regions of the world. Government stimulus efforts, focused primarily on infrastructure and real estate expansion, which drove property prices higher and led to a large increase in industrial output, also contributed to the advance in Chinese stocks. As economic growth strengthened, China’s central bank tightened monetary policy by increasing short-term interest rates in early 2017. The Chinese government also began a regulatory effort to reduce leverage in the country’s financial system.

From a sector perspective, information technology, the largest sector in the Index on average during the reporting period, contributed the most to the Index’s performance. Within the sector, the internet software and services industry was the leading contributor, benefiting from increased domestic demand for online products and services including e-commerce, transportation, and mobile payments.

The financials sector also contributed significantly to the Index’s performance for the reporting period, due primarily to improved profitability for large Chinese banks. The consumer discretionary sector helped the Index’s return as automobile manufacturers benefited from an improving outlook following a modest start to 2017. The real estate sector also contributed notably to the Index’s performance, benefiting from government stimulus efforts and higher property prices.

The only sector to detract from the Index’s performance for the reporting period was telecommunication services, which declined amid challenges facing the wireless telecommunication services industry.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total Investments*

Information Technology	39.79	%
Financials	23.75
Consumer Discretionary	9.68
Telecommunication Services	5.59
Energy	4.84
Industrials	4.59
Real Estate	4.52
Utilities	2.35
Health Care	1.87
Consumer Staples	1.76
Materials	1.26
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Tencent Holdings Ltd.	16.29	%
Alibaba Group Holding Ltd. ADR	13.33
China Construction Bank Corp. Class H	5.03
China Mobile Ltd.	4.42
Baidu Inc. ADR	4.26
Industrial & Commercial Bank of China Ltd. Class H	3.76
Bank of China Ltd. Class H	2.85
Ping An Insurance Group Co. of China Ltd. Class H	2.83
JD.com Inc. ADR	1.88
China Life Insurance Co. Ltd. Class H	1.63
TOTAL	56.28	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 13

Management’s Discussion of Fund Performance

iSHARES^® MSCI CHINA SMALL-CAP ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.29%		16.35%		12.65%		15.29%		16.35%		12.65%
5 Years		12.03%		12.06%		10.99%		76.44%		76.71%		68.43%
Since Inception		2.20%		2.14%		1.39%		16.25%		15.83%		10.04%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,108.30	$	3.24	$	1,000.00	$	1,022.10	$	3.11		0.61%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

14 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

The iShares MSCI China Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Chinese equities that are available to international investors, as represented by the MSCI China Small Cap 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 August 31, 2017, the total return for the Fund was 15.29%, net of fees, while the total return for the Index was 12.65%.

The positive performance of Chinese small-capitalization stocks for the reporting period was driven largely by a rebound in the Chinese economy. As a major global exporter, China benefited from strengthening economic growth in many regions of the world. Government stimulus efforts, focused primarily on infrastructure and real estate expansion, which drove property prices higher and led to a large increase in industrial output, also contributed to the advance in Chinese small-capitalization stocks. As economic growth strengthened, China’s central bank tightened monetary policy by increasing short-term interest rates in early 2017. The Chinese government also began a regulatory effort to reduce the amount of debt in the country’s financial system.

From a sector perspective, the real estate sector, which represented about 15% of the Index on average during the reporting period, was the largest contributor to the Index’s return. Small-capitalization real estate development companies contributed the most to the real estate sector amid strong home price appreciation.

The information technology sector also contributed significantly to the Index’s return for the reporting period, led by strength in small-capitalization electronic component manufacturers and internet software and services companies. The materials sector was another meaningful contributor to the Index’s performance, benefiting from small-capitalization paper producers.

On the downside, the utilities sector detracted from the Index’s performance for the reporting period, largely due to small-capitalization water utilities. The telecommunication services sector, representing only a fractional weight in the Index on average, also detracted slightly from the Index’s return.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Information Technology	18.72	%
Consumer Discretionary	18.27
Real Estate	18.12
Industrials	15.51
Materials	8.46
Health Care	7.55
Consumer Staples	4.79
Utilities	3.46
Financials	2.82
Energy	2.19
Telecommunication Services	0.11
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Kingboard Chemical Holdings Ltd.	2.37	%
Chong Sing Holdings FinTech Group Ltd.	1.33
Kaisa Group Holdings Ltd.	1.22
BYD Electronic International Co. Ltd.	1.20
Agile Group Holdings Ltd.	1.19
CIFI Holdings Group Co. Ltd.	1.17
Lee & Man Paper Manufacturing Ltd.	1.16
Shenzhen International Holdings Ltd.	1.03
Kingboard Laminates Holdings Ltd.	1.02
Sohu.com Inc.	0.98
TOTAL	12.67	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 15

Management’s Discussion of Fund Performance

iSHARES^® MSCI INDONESIA ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		5.53%		6.74%		6.07%		5.53%		6.74%		6.07%
5 Years		0.28%		0.34%		0.77%		1.40%		1.71%		3.91%
Since Inception		3.19%		3.18%		3.69%		25.87%		25.80%		30.38%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,100.60	$	3.23	$	1,000.00	$	1,022.10	$	3.11		0.61%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

16 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI INDONESIA ETF

The iShares MSCI Indonesia ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Indonesian equities, as represented by the MSCI Indonesia Investable Market 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 August 31, 2017, the total return for the Fund was 5.53%, net of fees, while the total return for the Index was 6.07%.

Indonesian stocks benefited from a continued expansion of Indonesia’s economy, the largest in Southeast Asia, during the reporting period. Exports were a driver of economic growth as improving economic conditions for Indonesia’s key trading partners, including China and the U.S., led to increased export demand. Recovering prices for key Indonesian exports, including coal, palm oil, tea, and shrimp, also benefited the resource-rich country. Domestic demand, on the other hand, was low as measured by weak growth for investment and private consumption, which constituted more than half of Indonesia’s economy.

From a sector perspective, the financials sector was the most significant contributor to the Index’s performance for the reporting period. Banks were the largest contributors to the sector, benefiting from a series of interest rate reductions by the Bank of Indonesia and a tax amnesty program aimed at repatriating offshore assets. State-owned banks served as gateways for repatriation under the program, which resulted in declared assets equal to approximately 40% of Indonesia’s economy.

The telecommunications and energy sectors also contributed meaningfully to the Index’s return for the reporting period. A shift toward offering data plans and improving network quality were factors benefiting companies in the telecommunications sector. Rising prices for coal and other products benefited the energy sector.

The consumer discretionary and real estate sectors detracted the most from the Index’s performance for the reporting period. Mixed performances in the consumer goods and retail companies detracted from the consumer discretionary sector. In the real estate sector, weak consumer purchasing power reduced demand for residential housing, while oversupply in the office market constrained prices.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	33.01	%
Telecommunication Services	15.06
Consumer Staples	14.34
Consumer Discretionary	13.21
Energy	6.32
Materials	5.47
Real Estate	5.30
Industrials	3.60
Health Care	2.37
Utilities	1.32
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Telekomunikasi Indonesia Persero Tbk PT	13.34	%
Bank Central Asia Tbk PT	10.53
Bank Rakyat Indonesia Persero Tbk PT	9.45
Astra International Tbk PT	8.97
Bank Mandiri Persero Tbk PT	6.85
Unilever Indonesia Tbk PT	4.44
Bank Negara Indonesia Persero Tbk PT	3.18
United Tractors Tbk PT	2.91
Indofood Sukses Makmur Tbk PT	2.12
Indocement Tunggal Prakarsa Tbk PT	2.09
TOTAL	63.88	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 17

Management’s Discussion of Fund Performance

iSHARES^® MSCI PHILIPPINES ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(7.87)%		(6.31)%		(7.32)%		(7.87)%		(6.31)%		(7.32)%
5 Years		4.92%		5.05%		5.67%		27.17%		27.94%		31.78%
Since Inception		6.35%		6.30%		6.91%		53.15%		52.64%		58.77%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 9/28/10. The first day of secondary market trading was 9/29/10.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,067.10	$	3.18	$	1,000.00	$	1,022.10	$	3.11		0.61%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

18 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI PHILIPPINES ETF

The iShares MSCI Philippines ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Philippine equities, as represented by the MSCI Philippines Investable Market 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 August 31, 2017, the total return for the Fund was -7.87%, net of fees, while the total return for the Index was -7.32%.

Unlike many Asian countries, the Philippines is not heavily dependent on exports for economic growth. Despite a sizable trade deficit during the reporting period, strong domestic demand and government spending led to solid economic growth that ranked as one of Asia’s strongest. Cash remittances from overseas Filipino workers constitute a meaningful component of the economy. Remittances expanded for the reporting period overall and boosted household consumption, although they contracted temporarily late in the reporting period.

Countering the country’s economic strength, the controversial actions of the newly elected Philippine president Duterte contributed to stock market volatility and a weaker currency. A temporary decline in oil prices and corresponding concern about the strength of the global economy, as well as increasing interest rates in the U.S., also detracted from the Philippine stock market’s performance.

Financials, the largest sector in the Index on average for the reporting period, detracted meaningfully from the Index’s performance, due mainly to declines among diversified financial stocks. The consumer staples sector also detracted from the Index’s return, in part due to weakness within the food, beverages, and tobacco industry. Other noteworthy detractors included the industrials and utilities sectors.

On the upside, the consumer discretionary sector contributed to the Index’s performance for the reporting period. Relatively low inflation levels, a continued low interest rate environment, and remittances from overseas workers led to solid consumer spending levels.

Currency fluctuations negatively impacted the Index’s return as the Philippine peso depreciated by 10% relative to the U.S. dollar during the reporting period, lowering returns on Philippine investments when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	26.97	%
Real Estate	23.87
Industrials	23.15
Telecommunication Services	6.72
Utilities	6.50
Consumer Discretionary	5.42
Consumer Staples	5.03
Materials	1.50
Energy	0.72
Information Technology	0.12
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Ayala Land Inc.	9.63	%
SM Prime Holdings Inc.	9.01
BDO Unibank Inc.	7.78
Ayala Corp.	7.12
JG Summit Holdings Inc.	6.41
SM Investments Corp.	6.08
PLDT Inc.	4.66
Aboitiz Equity Ventures Inc.	4.57
Universal Robina Corp.	4.01
Jollibee Foods Corp.	3.21
TOTAL	62.48	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 19

Management’s Discussion of Fund Performance

iSHARES^® MSCI POLAND CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		54.79%		55.46%		55.20%		54.79%		55.46%		55.20%
5 Years		5.17%		5.11%		5.55%		28.69%		28.32%		31.01%
Since Inception		5.02%		5.04%		5.33%		42.79%		42.94%		45.83%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 5/25/10. The first day of secondary market trading was 5/26/10.

Index performance through February 11, 2013 reflects the performance of the MSCI Poland Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Poland IMI 25/50 Index.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,297.20	$	3.71	$	1,000.00	$	1,022.00	$	3.26		0.64%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

20 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI POLAND CAPPED ETF

The iShares MSCI Poland Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Polish equities, as represented by the MSCI Poland IMI 25/50 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 August 31, 2017, the total return for the Fund was 54.79%, net of fees, while the total return for the Index was 55.20%.

The Polish economy posted solid growth during the reporting period. At the corporate level, investment spending improved due to increased business confidence, low inflation, and low interest rates. Demand was high for many Polish exports, including furniture, lighting, and prefabricated buildings. Private consumption also rose, driven by increased incomes and social assistance programs. Structural funds from the E.U., which try to reduce regional disparities in income, wealth, and opportunities, also contributed to Poland’s economic momentum.

From a sector perspective, the financials sector, which represented approximately 43% of the Index on average, was the most significant contributor to the Index’s return for the reporting period. Poland’s robust macroeconomic environment led to increased credit ratings of its banks, attracting strong foreign capital inflows. Additionally, new employment opportunities in the nation’s banks are being created as financial jobs depart London due to the U.K.’s impending exit from the E.U.

The energy sector also contributed meaningfully to the Index’s performance for the reporting period. Energy companies’ earnings increased due to high oil refining profits, particularly compared to the previous year. The materials sector, especially the metals and mining industry, also contributed to the Index’s return.

In contrast, the healthcare sector, which represented less than 1% of the Index on average, marginally detracted from the Index’s return for the reporting period.

The Polish zloty, which appreciated about 9% relative to the U.S. dollar during the reporting period, was a large contributor to the Index’s performance, as returns on Polish investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	43.37	%
Energy	19.55
Materials	9.97
Consumer Discretionary	8.94
Utilities	8.56
Information Technology	3.48
Telecommunication Services	1.92
Industrials	1.90
Consumer Staples	1.23
Real Estate	0.79
Health Care	0.29
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Polski Koncern Naftowy ORLEN SA	12.68	%
Powszechna Kasa Oszczednosci Bank Polski SA	11.90
Powszechny Zaklad Ubezpieczen SA	10.08
Bank Pekao SA	6.79
KGHM Polska Miedz SA	4.43
PGE Polska Grupa Energetyczna SA	4.39
Polskie Gornictwo Naftowe i Gazownictwo SA	4.34
LPP SA	4.20
Bank Zachodni WBK SA	4.18
CCC SA	2.73
TOTAL	65.72	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 21

Management’s Discussion of Fund Performance

iSHARES^® MSCI QATAR CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(16.52)%		(15.79)%		(16.00)%		(16.52)%		(15.79)%		(16.00)%
Since Inception		(8.34)%		(8.04)%		(7.84)%		(25.25)%		(24.42)%		(23.83)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 4/29/14. The first day of secondary market trading was 5/1/14.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	849.20	$	2.84	$	1,000.00	$	1,022.10	$	3.11		0.61%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

22 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI QATAR CAPPED ETF

The iShares MSCI Qatar Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Qatar equities, as represented by the MSCI All Qatar Capped 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 August 31, 2017, the total return for the Fund was -16.52%, net of fees, while the total return for the Index was -16.00%.

Qatari stocks were negatively impacted by a major diplomatic crisis between Qatar and several other important regional powers, including Saudi Arabia and the United Arab Emirates (the “U.A.E.”). The crisis began when a group of Middle Eastern countries presented Qatar with a list of demands, including the closure of a television network and reducing ties with Iran. After a deadline to meet those demands was not met, the nations ended diplomatic and economic ties with Qatar in June 2017. Qatari stock prices declined in the wake of the crisis as investors anticipated that the ongoing dispute and closure of Qatar’s only land border would negatively impact the economy.

From a sector perspective, the financials sector was the primary detractor from the Index’s performance for the reporting period. Qatari banks were negatively affected by the diplomatic crisis, as the U.A.E., a regional financial center, ended ties with Qatari financial institutions in June 2017. As depositors in nations involved in the standoff with Qatar throughout the region withdrew funds, investors anticipated that the reduction in capital would increase borrowing costs and reduce profits.

The real estate sector was also a significant detractor from the Index’s return for the reporting period. The debt-heavy sector was negatively affected by the diplomatic crisis as Qatari debt was downgraded, impacting the ability of companies to borrow. The sector was also affected by the announcement in May 2017 that a major Qatari real estate company will go private, sharply reducing stock prices.

Other significant detractors from the Index’s performance for the reporting period included the industrials, energy, and telecommunications services sectors. Only the materials sector contributed, fractionally, to the Index’s return.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	54.73	%
Industrials	15.64
Real Estate	11.13
Telecommunication Services	7.13
Utilities	4.34
Energy	3.70
Materials	1.29
Health Care	1.06
Consumer Staples	0.98
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Qatar National Bank QPSC	22.19	%
Masraf Al Rayan QSC	10.44
Industries Qatar QSC	10.10
Commercial Bank PQSC (The)	4.69
Qatar Insurance Co. SAQ	4.63
Ooredoo QSC	4.62
Qatar Islamic Bank SAQ	4.61
Ezdan Holding Group QSC	4.58
Qatar Electricity & Water Co. QSC	4.34
Qatar Navigation QSC	3.17
TOTAL	73.37	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 23

Management’s Discussion of Fund Performance

iSHARES^® MSCI SAUDI ARABIA CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		24.06%		23.41%		25.38%		24.06%		23.41%		25.38%
Since Inception		4.79%		4.57%		5.82%		9.61%		9.16%		11.70%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 9/16/15. The first day of secondary market trading was 9/17/15.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,084.30	$	3.89	$	1,000.00	$	1,021.50	$	3.77		0.74%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

24 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SAUDI ARABIA CAPPED ETF

The iShares MSCI Saudi Arabia Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Saudi Arabian equities, as represented by the MSCI Saudi Arabia IMI 25/50 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 August 31, 2017, the total return for the Fund was 24.06%, net of fees, while the total return for the Index was 25.38%.

Despite slowing economic growth, Saudi Arabian stocks gained during the reporting period. Early in the reporting period, Saudi stocks made broad-based gains as oil prices rebounded from a low in early 2016 and the country’s first international bond offering increased investor confidence. More recently, Saudi stocks have benefited from the announcement that MSCI is considering upgrading Saudi Arabia to emerging markets status and including Saudi stocks in the MSCI Emerging Markets Index. The elevation of a reformist to crown prince of the country was also seen as encouraging by investors.

From a sector perspective, the largest contributor to the Index’s return was the financials sector, which represented approximately 36% of the Index on average for the reporting period. Within this sector, banks were the leading industry, benefiting from a Moody’s upgraded outlook for the industry and improving profits. Saudi banks also benefited from interest rate increases in the U.S., as the Saudi currency is pegged to the U.S. dollar at a fixed exchange rate. The fixed exchange rate means that interest rates rise in Saudi Arabia when they rise in the U.S., which is generally beneficial for banks.

The materials sector was also a significant contributor to the Index’s performance for the reporting period, with the chemicals industry making up the majority of the gains. This industry was helped by cost cutting measures taken in response to oil prices which remain low by historical standards.

The consumer staples sector contributed to the Index’s return for the reporting period, as Saudi consumer spending remained robust. The telecommunication services sector also contributed moderately to the Index’s return, while the real estate and industrials sectors detracted fractionally from the Index’s performance.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	38.77	%
Materials	32.30
Consumer Staples	7.76
Telecommunication Services	7.69
Utilities	4.13
Consumer Discretionary	3.23
Health Care	2.93
Real Estate	1.53
Industrials	1.10
Energy	0.56
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Saudi Basic Industries Corp.	14.60	%
Al Rajhi Bank	10.44
National Commercial Bank	8.27
Saudi Telecom Co.	5.93
Almarai Co.	4.60
Samba Financial Group	4.42
Saudi Arabian Mining Co.	4.08
Saudi Electricity Co.	3.90
Riyad Bank	2.67
Yanbu National Petrochemical Co.	2.52
TOTAL	61.43	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 25

Management’s Discussion of Fund Performance

iSHARES^® MSCI UAE CAPPED ETF

Performance as of August 31, 2017

	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		7.33%		8.66%		8.19%		7.33%		8.66%		8.19%
Since Inception		(6.24)%		(6.19)%		(5.72)%		(19.38)%		(19.22)%		(17.83)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 4/29/14. The first day of secondary market trading was 5/1/14.

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 28 for more information.

Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period a		Annualized Expense Ratio
$	1,000.00	$	1,070.30	$	3.18	$	1,000.00	$	1,022.10	$	3.11		0.61%

^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 (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 28 for more information.

26 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI UAE CAPPED ETF

The iShares MSCI UAE Capped ETF (the “Fund”) seeks to track the investment results of an index composed of UAE equities, as represented by the MSCI All UAE Capped 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 August 31, 2017, the total return for the Fund was 7.33%, net of fees, while the total return for the Index was 8.19%.

The reporting period for the United Arab Emirates (the “U.A.E.”) was characterized by steady but modest economic growth and relatively low equity market volatility. Despite uncertainty created by a diplomatic and economic standoff between Qatar and a group of Arab states including the U.A.E., stock prices rose steadily as foreign investment increased. The U.A.E. government continued its effort to reduce reliance on oil markets and planned for future initial public offerings (“IPOs”) of several important state-owned businesses.

From a sector perspective, the financials sector was the principal contributor to the Index’s return for the reporting period, with banks making up a large portion of the gains. The banks industry, which benefited from increased merger activity, performed well even as the ongoing diplomatic crisis prompted U.A.E. banks to withdraw funds from Qatar. The diversified financials industry also contributed to the Index’s performance, benefiting from cost-saving actions and reductions in provisions for bad loans.

The real estate sector was another major contributor to the Index’s return for the reporting period. The sector was boosted by the announcement that a major company would spin off one of its divisions into an IPO. Increased infrastructure spending related to the upcoming Expo 2020 in Dubai also benefited the sector.

In contrast, the consumer discretionary sector detracted from the Index’s return for the reporting period as the theme park industry struggled. Four major theme parks opened in the Dubai area during the reporting period, and expenses related to the parks were higher than initially expected. The telecommunication services and consumer staples sectors were also modest detractors from the Index’s return.

ALLOCATION BY SECTOR

As of 8/31/17

Sector Percentage of
Total  Investments*

Financials	30.46	%
Real Estate	30.32
Telecommunication Services	17.59
Industrials	10.77
Health Care	5.04
Energy	2.92
Consumer Discretionary	1.93
Consumer Staples	0.97
TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security Percentage of
Total  Investments*

Emirates Telecommunications Group Co. PJSC	17.59	%
Emaar Properties PJSC	16.72
First Abu Dhabi Bank PJSC	8.06
NMC Health PLC	5.05
DP World Ltd.	4.68
DAMAC Properties Dubai Co. PJSC	4.61
Abu Dhabi Commercial Bank PJSC	4.51
Aldar Properties PJSC	4.33
Dubai Islamic Bank PJSC	4.19
Union National Bank PJSC	3.15
TOTAL	72.89	%

* Excludes money market funds.

MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE 27

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 March 1, 2017 (or commencement of operations, as applicable) and held through August 31, 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.

28 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI ALL PERU CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 100.02%
BANKS — 29.78%
BBVA Banco Continental SA		3,560,102	$	4,349,222
Credicorp Ltd.		190,777		38,697,207
Intercorp Financial Services Inc.		219,512		7,682,920
Scotiabank Peru SAA		12,105		125,102
				50,854,451
CONSTRUCTION & ENGINEERING — 2.05%
Grana y Montero SAAa		4,988,192		3,508,585
				3,508,585
CONSTRUCTION MATERIALS — 5.40%
Cementos Pacasmayo SAA		2,193,929		5,414,602
Union Andina de Cementos SAA		4,921,945		3,811,224
				9,225,826
ELECTRIC UTILITIES — 3.09%
Enel Distribucion Peru SAA		1,088,354		1,846,660
Luz del Sur SAA		946,445		3,430,735
				5,277,395
FOOD & STAPLES RETAILING — 2.90%
InRetail Peru Corp.b		270,712		4,954,030
				4,954,030
FOOD PRODUCTS — 5.50%
Alicorp SAA		2,927,293		7,901,840
Casa Grande SAAa		760,074		1,493,651
				9,395,491
METALS & MINING — 44.13%
Cia. de Minas Buenaventura SAA ADR		1,199,541		16,109,836
Cia. Minera Milpo SAAa		4,444,837		5,128,394
Hochschild Mining PLC		1,883,531		6,890,322
Minsur SAa		8,036,756		3,297,512
Pan American Silver Corp.		187,756		3,486,309
Sociedad Minera Cerro Verde SAAa		172,469		4,173,750
Southern Copper Corp.		539,915		21,974,540
Tahoe Resources Inc.		778,961		3,702,977
Trevali Mining Corp.a		3,846,889		4,418,361
Volcan Cia. Minera SAA Class B		21,558,862		6,185,328
				75,367,329
MULTILINE RETAIL — 3.04%
SACI Falabella		516,920		5,197,084
				5,197,084

Security	Shares		Value
OIL, GAS & CONSUMABLE FUELS — 0.90%
Refineria La Pampilla SAA Relapasaa		21,578,849	$	1,531,123
				1,531,123
TRADING COMPANIES & DISTRIBUTORS — 3.23%
Ferreycorp SAA		9,306,863		5,512,626
				5,512,626
TOTAL COMMON STOCKS
(Cost: $213,223,911)				170,823,940
SHORT-TERM INVESTMENTS — 0.05%
MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		92,100		92,100
				92,100
TOTAL SHORT-TERM INVESTMENTS
(Cost: $92,100)				92,100
TOTAL INVESTMENTS IN SECURITIES — 100.07%
(Cost: $213,316,011)e				170,916,040
Other Assets, Less Liabilities — (0.07)%				(122,150	)
NET ASSETS — 100.00%			$	170,793,890

ADR — American Depositary Receipts

^a  Non-income earning security.

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c  Affiliated issuer. See Schedule 1.

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

^e  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $224,027,776. Net unrealized depreciation was $53,111,736, of which $16,545,741 represented gross unrealized appreciation on investments and $69,657,477 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 29

Schedule of Investments (Continued)

iSHARES^® MSCI ALL PERU CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		96,476		—		(4,376	)b		92,100	$	92,100	$	29	$	—	$	1,254

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 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	$	170,823,940	$	—	$	—	$	170,823,940
Money market funds		92,100		—		—		92,100
Total	$	170,916,040	$	—	$	—	$	170,916,040

See notes to financial statements.

30 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI ARGENTINA AND GLOBAL EXPOSURE ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 98.15%
ARGENTINA — 51.01%
Adecoagro SAa		39,780	$	385,866
Arcos Dorados Holdings Inc. Class Aa		52,440		450,984
Banco Macro SA ADR		14,496		1,504,830
BBVA Banco Frances SA ADR		27,792		477,467
Cresud SACIF y A ADRa		16,308		314,744
Empresa Distribuidora y Comercializadora Norte SA ADRa		4,320		152,064
Globant SAa		11,112		432,146
Grupo Clarin SA Class B GDRb,c		14,748		419,581
Grupo Financiero Galicia SA ADR		16,104		734,342
Grupo Supervielle SA ADR		15,720		321,160
IRSA Inversiones y Representaciones SA ADRa		11,376		275,299
Pampa Energia SA ADRa		8,976		547,626
Telecom Argentina SA ADR		21,684		649,436
Transportadora de Gas del Sur SA ADRa		30,996		539,021
YPF SA ADR		33,204		666,072
				7,870,638
CANADA — 5.16%
Finning International Inc.		12,396		282,475
Pan American Silver Corp.		14,112		262,036
SSR Mining Inc.a		24,144		251,117
				795,628
CHILE — 3.25%
Cencosud SA		84,144		252,952
Cia. Cervecerias Unidas SA		18,204		248,157
				501,109
ITALY — 13.04%
Tenaris SA		150,660		2,011,513
				2,011,513
MEXICO — 1.60%
Arca Continental SAB de CV		33,600		246,588
				246,588
SPAIN — 1.66%
Prosegur Cia. de Seguridad SA		37,644		255,998
				255,998

Security	Shares		Value
UNITED STATES — 22.43%
MercadoLibre Inc.		13,392	$	3,461,430
				3,461,430
TOTAL COMMON STOCKS
(Cost: $15,225,011)				15,142,904
PREFERRED STOCKS — 1.73%
CHILE — 1.73%
Embotelladora Andina SA Class B, Preference Shares		56,460		266,047
				266,047
TOTAL PREFERRED STOCKS
(Cost: $233,427)				266,047
SHORT-TERM INVESTMENTS — 0.28%
MONEY MARKET FUNDS — 0.28%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%d,e		43,863		43,863
				43,863
TOTAL SHORT-TERM INVESTMENTS
(Cost: $43,863)				43,863
TOTAL INVESTMENTS IN SECURITIES — 100.16%
(Cost: $15,502,301)f				15,452,814
Other Assets, Less Liabilities — (0.16)%				(24,978	)
NET ASSETS — 100.00%			$	15,427,836

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

^a Non-income earning security.

^b  This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

^c  Grupo Clarin SA underwent a partial demerger to spin off its cable television, internet and mobile businesses into a new corporation under the name Cablevision Holding SA, effective on August 31, 2017. For each Grupo Clarin Class B GDR held, the Fund will receive 0.3715 of a new Grupo Clarin Class B GDR and 1.257 of a new Cablevision Holding Class B GDR. The holdings of Grupo Clarin disclosed in the schedule of investments represents the pre-spinoff Grupo Clarin Class B GDRs which is inclusive of its equity interest in its cablevision subsidiary.

^d  Affiliated issuer. See Schedule 1.

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

^f  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $15,977,105. Net unrealized depreciation was $524,291, of which $619,312 represented gross unrealized appreciation on investments and $1,143,603 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 31

Schedule of Investments (Continued)

iSHARES^® MSCI ARGENTINA AND GLOBAL EXPOSURE ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the period ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 04/25/17 a		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) b		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		—		43,863	c		—		43,863	$	43,863	$	—	$	—	$	76

a The Fund commencement of operations on April 25, 2017.

^b  Includes realized capital gain distributions from an affiliated fund, if any.

^c  Net of shares purchased and sold.

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 August 31, 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	$	15,142,904	$	—	$	—	$	15,142,904
Preferred stocks		266,047		—		—		266,047
Money market funds		43,863		—		—		43,863
Total	$	15,452,814	$	—	$	—	$	15,452,814

See notes to financial statements.

32 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI BRAZIL SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 74.05%
AUTO COMPONENTS — 1.23%
Mahle-Metal Leve SA		58,100	$	353,610
Tupy SA		77,000		410,640
				764,250
BANKS — 0.03%
Banco ABC Brasil SAa		3,991		21,068
				21,068
COMMERCIAL SERVICES & SUPPLIES — 1.12%
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		109,961		698,603
				698,603
CONSTRUCTION MATERIALS — 0.93%
Magnesita Refratarios SA		46,220		580,238
				580,238
DIVERSIFIED CONSUMER SERVICES — 6.83%
Estacio Participacoes SA		415,800		3,410,764
GAEC Educacao SA		53,900		320,339
Ser Educacional SAb		56,800		526,940
				4,258,043
ELECTRIC UTILITIES — 3.43%
Alupar Investimento SA Units		223,372		1,327,546
Light SAa		123,200		806,598
				2,134,144
FOOD PRODUCTS — 5.22%
Marfrig Global Foods SAa		331,100		750,288
Minerva SA		161,700		595,110
Sao Martinho SA		246,400		1,366,518
SLC Agricola SA		77,000		543,279
				3,255,195
HEALTH CARE PROVIDERS & SERVICES — 5.26%
Alliar Medicos A Frente SAa		61,600		321,073
Fleury SA		219,600		2,212,436
Instituto Hermes Pardini SA		77,000		743,950
				3,277,459
HOTELS, RESTAURANTS & LEISURE — 3.00%
CVC Brasil Operadora e Agencia de Viagens SA		154,000		1,869,663
				1,869,663
HOUSEHOLD DURABLES — 7.14%
Cyrela Brazil Realty SA Empreendimentos e Participacoes		400,400		1,677,214

Security	Shares		Value
Even Construtora e Incorporadora SAa		192,500	$	291,829
EZ TEC Empreendimentos e Participacoes SA		84,753		600,136
MRV Engenharia e Participacoes SA		438,900		1,881,727
				4,450,906
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 1.83%
AES Tiete Energia SA		254,100		1,142,721
				1,142,721
INSURANCE — 0.87%
Wiz Solucoes e Corretagem de Seguros SA		100,100		541,786
				541,786
INTERNET & DIRECT MARKETING RETAIL — 2.93%
B2W Cia. Digitala		310,827		1,826,564
				1,826,564
MACHINERY — 1.67%
Iochpe Maxion SA		161,707		1,038,148
				1,038,148
MEDIA — 4.85%
Multiplus SA		77,000		917,946
Smiles SA		95,300		2,105,326
				3,023,272
MULTILINE RETAIL — 3.23%
Magazine Luiza SA		10,000		1,805,209
Marisa Lojas SAa		92,400		209,383
				2,014,592
OIL, GAS & CONSUMABLE FUELS — 0.47%
QGEP Participacoes SA		123,200		295,230
				295,230
REAL ESTATE MANAGEMENT & DEVELOPMENT — 5.36%
Aliansce Shopping Centers SAa		138,600		766,464
BR Properties SA		184,800		645,474
Iguatemi Empresa de Shopping Centers SA		136,600		1,623,684
Sonae Sierra Brasil SA		38,500		301,006
				3,336,628
ROAD & RAIL — 1.61%
Cosan Logistica SAa		169,403		432,331
JSL SAa		69,300		173,996
Movida Participacoes SAa		130,900		394,807
				1,001,134

SCHEDULES OF INVESTMENTS 33

Schedule of Investments (Continued)

iSHARES^® MSCI BRAZIL SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
SOFTWARE — 4.61%
Linx SA		192,500	$	1,121,431
TOTVS SA		177,100		1,748,232
				2,869,663
SPECIALTY RETAIL — 4.70%
Cia. Hering		223,300		1,916,159
Via Varejo SA		192,500		1,009,471
				2,925,630
TEXTILES, APPAREL & LUXURY GOODS — 2.44%
Arezzo Industria e Comercio SA		69,300		1,008,296
Guararapes Confeccoes SA		12,800		514,124
				1,522,420
TRANSPORTATION INFRASTRUCTURE — 3.09%
EcoRodovias Infraestrutura e Logistica SA		346,500		1,178,328
Prumo Logistica SAa		115,500		414,801
Santos Brasil Participacoes SAa		361,900		333,553
				1,926,682
WATER UTILITIES — 2.20%
Cia. de Saneamento de Minas Gerais-COPASA		100,100		1,371,486
				1,371,486
TOTAL COMMON STOCKS
(Cost: $26,602,416)				46,145,525
PREFERRED STOCKS — 25.48%
AIRLINES — 0.89%
GOL Linhas Aereas Inteligentes SA, Preference Shares		154,000		554,536
				554,536
BANKS — 3.30%
Banco ABC Brasil SA, Preference Shares		104,265		563,666
Banco do Estado do Rio Grande do Sul SA Class B, Preference Shares		277,200		1,490,640
				2,054,306
ELECTRIC UTILITIES — 1.81%
Cia. Energetica do Ceara Class A, Preference Shares		18,900		312,292
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, Preference Shares		161,700		818,149
				1,130,441

Security	Shares		Value
GAS UTILITIES — 1.06%
Cia. de Gas de Sao Paulo – COMGAS, Preference Shares		38,500	$	660,745
				660,745
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 2.20%
Cia. Energetica de Sao Paulo Class B, Preference Shares		292,600		1,369,797
				1,369,797
MACHINERY — 2.40%
Marcopolo SA, Preference Shares		754,600		932,922
Randon SA Implemetos e Participacoes, Preference Shares		277,250		562,175
				1,495,097
METALS & MINING — 9.98%
Bradespar SA, Preference Shares		346,500		2,960,136
Metalurgica Gerdau SA, Preference Shares		985,600		1,772,949
Usinas Siderurgicas de Minas Gerais SA Class A, Preference Shares		677,600		1,483,788
				6,216,873
TEXTILES, APPAREL & LUXURY GOODS — 1.63%
Alpargatas SA, Preference Shares		231,000		1,013,142
				1,013,142
WATER UTILITIES — 2.21%
Cia. de Saneamento do Parana, Preference Shares		415,800		1,379,635
				1,379,635
TOTAL PREFERRED STOCKS
(Cost: $7,976,496)				15,874,572
SHORT-TERM INVESTMENTS — 0.00%
MONEY MARKET FUNDS — 0.00%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		1,362		1,362
				1,362
TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,362)				1,362

34 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI BRAZIL SMALL-CAP ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 99.53%
(Cost: $34,580,274)e	$	62,021,459
Other Assets, Less Liabilities — 0.47%		294,191
NET ASSETS — 100.00%	$	62,315,650

^a  Non-income earning security.

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c  Affiliated issuer. See Schedule 1.

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

^e  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $43,620,505. Net unrealized appreciation was $18,400,954, of which $27,667,605 represented gross unrealized appreciation on investments and $9,266,651 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		32,159		—		(30,797	)b		1,362	$	1,362	$	—	$	—	$	161

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 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	$	46,145,525	$	—	$	—	$	46,145,525
Preferred stocks		15,874,572		—		—		15,874,572
Money market funds		1,362		—		—		1,362
Total	$	62,021,459	$	—	$	—	$	62,021,459

See notes to financial statements.

SCHEDULES OF INVESTMENTS 35

Schedule of Investments

iSHARES^® MSCI CHINA ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.57%
AEROSPACE & DEFENSE — 0.09%
AviChina Industry & Technology Co. Ltd. Class Ha		3,765,000	$	2,227,312
				2,227,312
AIRLINES — 0.22%
Air China Ltd. Class H		3,344,000		2,973,793
China Southern Airlines Co. Ltd. Class H		3,344,000		2,610,614
				5,584,407
AUTO COMPONENTS — 0.33%
Fuyao Glass Industry Group Co. Ltd. Class Hb		836,000		2,665,091
Minth Group Ltd.		1,254,000		5,776,144
				8,441,235
AUTOMOBILES — 2.48%
Brilliance China Automotive Holdings Ltd.		5,438,000		14,070,172
Byd Co. Ltd. Class H		1,152,500		6,862,179
Chongqing Changan Automobile Co. Ltd. Class B		1,525,784		1,996,311
Dongfeng Motor Group Co. Ltd. Class H		4,598,000		5,968,949
Geely Automobile Holdings Ltd.		8,569,000		21,065,433
Great Wall Motor Co. Ltd. Class Ha		5,434,000		6,818,146
Guangzhou Automobile Group Co. Ltd. Class H		3,782,000		7,461,120
				64,242,310
BANKS — 14.86%
Agricultural Bank of China Ltd. Class H		45,980,000		21,619,815
Bank of China Ltd. Class H		139,612,000		73,494,552
Bank of Communications Co. Ltd. Class H		15,466,200		11,817,347
China CITIC Bank Corp. Ltd. Class H		15,884,800		10,493,189
China Construction Bank Corp. Class H		148,181,000		129,882,854
China Everbright Bank Co. Ltd. Class H		4,807,000		2,309,389
China Merchants Bank Co. Ltd. Class H		6,897,150		25,997,218

Security	Shares		Value
China Minsheng Banking Corp. Ltd. Class H		9,718,800	$	9,698,372
Chongqing Rural Commercial Bank Co. Ltd. Class H		4,389,000		3,056,309
Industrial & Commercial Bank of China Ltd. Class H		129,789,000		97,178,611
				385,547,656
BEVERAGES — 0.35%
China Resources Beer Holdings Co. Ltd.		2,926,000		7,342,619
Tsingtao Brewery Co. Ltd. Class H		418,000		1,733,110
				9,075,729
BIOTECHNOLOGY — 0.09%
3SBio Inc.a,b,c		1,777,000		2,443,064
				2,443,064
CAPITAL MARKETS — 1.90%
China Cinda Asset Management Co. Ltd. Class H		15,466,000		5,750,508
China Everbright Ltd.		1,672,000		3,819,785
China Galaxy Securities Co. Ltd. Class H		5,747,500		5,206,674
China Huarong Asset Management Co. Ltd. Class Hb		11,077,000		4,727,198
CITIC Securities Co. Ltd. Class H		3,971,000		8,808,152
GF Securities Co. Ltd. Class H		2,382,600		5,083,968
Haitong Securities Co. Ltd. Class H		5,684,800		9,529,809
Huatai Securities Co. Ltd. Class Hb		2,884,200		6,419,611
				49,345,705
CHEMICALS — 0.15%
Sinopec Shanghai Petrochemical Co. Ltd. Class H		6,270,000		3,909,512
				3,909,512
COMMERCIAL SERVICES & SUPPLIES — 0.22%
China Everbright International Ltd.		4,388,000		5,797,254
				5,797,254

36 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA ETF

August 31, 2017

Security	Shares		Value
COMMUNICATIONS EQUIPMENT — 0.13%
ZTE Corp. Class Hc		1,254,040	$	3,420,932
				3,420,932
CONSTRUCTION & ENGINEERING — 1.05%
China Communications Construction Co. Ltd. Class H		7,733,000		10,295,582
China Railway Construction Corp. Ltd. Class H		3,448,500		4,520,774
China Railway Group Ltd. Class H		6,897,000		5,516,578
China State Construction International Holdings Ltd.		3,344,000		4,845,231
Sinopec Engineering Group Co. Ltd. Class H		2,194,500		1,979,591
				27,157,756
CONSTRUCTION MATERIALS — 0.44%
Anhui Conch Cement Co. Ltd. Class H		2,194,500		8,187,543
China National Building Material Co. Ltd. Class H		5,024,000		3,158,275
				11,345,818
DIVERSIFIED CONSUMER SERVICES — 1.32%
New Oriental Education & Technology Group Inc. ADR		236,170		19,306,898
TAL Education Group Class A ADR		492,822		14,996,573
				34,303,471
DIVERSIFIED FINANCIAL SERVICES — 0.13%
Far East Horizon Ltd.a		3,554,000		3,246,823
				3,246,823
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.16%
China Communications Services Corp. Ltd. Class H		4,196,800		2,273,627
China Telecom Corp. Ltd. Class H		24,662,000		12,667,460
China Unicom Hong Kong Ltd.c		10,450,000		15,221,461
				30,162,548
ELECTRICAL EQUIPMENT — 0.28%
Shanghai Electric Group Co. Ltd. Class Ha,c		5,024,000		2,278,837
Zhuzhou CRRC Times Electric Co. Ltd. Class H		961,400		5,030,292
				7,309,129

Security	Shares		Value
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.57%
AAC Technologies Holdings Inc.		1,254,000	$	22,864,236
Sunny Optical Technology Group Co. Ltd.		1,254,000		17,977,346
				40,841,582
ENERGY EQUIPMENT & SERVICES — 0.11%
China Oilfield Services Ltd. Class H		3,344,000		2,743,067
				2,743,067
FOOD & STAPLES RETAILING — 0.15%
Sun Art Retail Group Ltd.		4,180,000		3,850,762
				3,850,762
FOOD PRODUCTS — 0.85%
China Huishan Dairy Holdings Co. Ltd.a,d		7,446,000		9
China Mengniu Dairy Co. Ltd.		5,016,000		11,715,718
Tingyi Cayman Islands Holding Corp.a		3,344,000		4,452,144
Want Want China Holdings Ltd.a		8,778,000		5,809,791
				21,977,662
GAS UTILITIES — 0.82%
China Gas Holdings Ltd.		2,930,000		7,397,582
China Resources Gas Group Ltd.a		1,672,000		5,896,313
ENN Energy Holdings Ltd.		1,254,000		8,067,374
				21,361,269
HEALTH CARE EQUIPMENT & SUPPLIES — 0.10%
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		3,344,000		2,670,432
				2,670,432
HEALTH CARE PROVIDERS & SERVICES — 0.48%
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		1,212,200		2,983,086
Sinopharm Group Co. Ltd. Class H		2,090,000		9,439,976
				12,423,062
HEALTH CARE TECHNOLOGY — 0.11%
Alibaba Health Information Technology Ltd.a,c		5,852,000		2,729,181
				2,729,181
HOTELS, RESTAURANTS & LEISURE — 0.93%
Yum China Holdings Inc.c		683,639		24,173,475
				24,173,475

SCHEDULES OF INVESTMENTS 37

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA ETF

August 31, 2017

Security	Shares		Value
HOUSEHOLD DURABLES — 0.24%
Haier Electronics Group Co. Ltd.		2,305,000	$	6,125,894
				6,125,894
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.96%
CGN Power Co. Ltd. Class Hb		18,601,000		5,133,638
China Longyuan Power Group Corp. Ltd.		5,643,000		4,225,157
China Power International Development Ltd.		5,643,000		1,925,114
China Resources Power Holdings Co. Ltd.		3,344,000		6,135,584
Huaneng Power International Inc. Class H		7,524,000		4,922,140
Huaneng Renewables Corp. Ltd. Class H		8,360,000		2,563,614
				24,905,247
INDUSTRIAL CONGLOMERATES — 1.21%
Beijing Enterprises Holdings Ltd.		945,500		5,279,322
CITIC Ltd.		10,241,000		15,728,309
Fosun International Ltd.a		4,493,500		7,796,859
Shanghai Industrial Holdings Ltd.		836,000		2,542,251
				31,346,741
INSURANCE — 6.76%
China Life Insurance Co. Ltd. Class H		13,167,000		42,227,536
China Pacific Insurance Group Co. Ltd. Class H		4,639,800		21,846,000
China Taiping Insurance Holdings Co. Ltd.		2,842,524		8,625,870
New China Life Insurance Co. Ltd. Class H		1,358,500		8,696,261
People’s Insurance Co. Group of China Ltd. (The) Class H		12,540,000		5,912,336
PICC Property & Casualty Co. Ltd. Class H		7,942,308		14,917,610
Ping An Insurance Group Co. of China Ltd. Class H		9,196,000		73,025,625
				175,251,238
INTERNET & DIRECT MARKETING RETAIL — 3.50%
Ctrip.com International Ltd. ADRc		694,298		35,721,632
JD.com Inc. ADRa,c		1,156,397		48,464,599
Vipshop Holdings Ltd. ADRc		711,436		6,623,469
				90,809,700

Security	Shares		Value
INTERNET SOFTWARE & SERVICES — 37.05%
58.com Inc. ADRa,c		160,094	$	10,026,687
Alibaba Group Holding Ltd. ADRa,c		2,005,355		344,399,668
Autohome Inc. ADRa,c		92,169		5,923,702
Baidu Inc. ADRc		482,790		110,100,259
Momo Inc. ADRc		189,981		7,319,968
NetEase Inc. ADR		138,985		38,337,622
SINA Corp./Chinac		100,111		10,194,303
Tencent Holdings Ltd.		10,011,100		420,835,998
Weibo Corp. ADRa,c		81,928		8,282,921
YY Inc. ADRc		76,494		5,715,632
				961,136,760
IT SERVICES — 0.18%
TravelSky Technology Ltd. Class H		1,672,000		4,571,779
				4,571,779
MACHINERY — 0.71%
China Conch Venture Holdings Ltd.a		2,821,500		5,133,638
CRRC Corp. Ltd. Class H		7,315,650		6,599,223
Haitian International Holdings Ltd.		1,045,000		3,137,757
Weichai Power Co. Ltd. Class H		3,553,000		3,659,026
				18,529,644
MEDIA — 0.15%
Alibaba Pictures Group Ltd.a,c		22,990,000		4,024,341
				4,024,341
METALS & MINING — 0.48%
Aluminum Corp. of China Ltd. Class Ha,c		7,106,000		5,257,012
Jiangxi Copper Co. Ltd. Class H		2,090,000		3,626,446
Zijin Mining Group Co. Ltd. Class H		10,032,000		3,678,787
				12,562,245
OIL, GAS & CONSUMABLE FUELS — 4.71%
China Coal Energy Co. Ltd. Class Ha		3,762,000		1,893,870
China Petroleum & Chemical Corp. Class H		45,145,000		34,551,879
China Shenhua Energy Co. Ltd. Class H		5,956,500		15,335,621
CNOOC Ltd.		31,559,000		37,742,813
Kunlun Energy Co. Ltd.a		5,852,000		5,667,724

38 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA ETF

August 31, 2017

Security	Shares		Value
PetroChina Co. Ltd. Class H		37,202,000	$	23,766,842
Yanzhou Coal Mining Co. Ltd. Class H		3,344,000		3,358,335
				122,317,084
PAPER & FOREST PRODUCTS — 0.19%
Nine Dragons Paper (Holdings) Ltd.		2,926,000		4,882,617
				4,882,617
PERSONAL PRODUCTS — 0.40%
Hengan International Group Co. Ltd.		1,254,000		10,478,774
				10,478,774
PHARMACEUTICALS — 1.08%
China Medical System Holdings Ltd.a		2,090,000		3,845,422
CSPC Pharmaceutical Group Ltd.		7,530,000		11,757,131
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		836,000		3,140,428
Sihuan Pharmaceutical Holdings Group Ltd.		6,688,000		2,572,160
Sino Biopharmaceutical Ltd.		7,733,000		6,787,970
				28,103,111
REAL ESTATE MANAGEMENT & DEVELOPMENT — 4.50%
China Evergrande Groupc		5,852,000		17,683,599
China Jinmao Holdings Group Ltd.		6,694,000		2,976,461
China Overseas Land & Investment Ltd.		6,688,000		23,371,618
China Resources Land Ltd.		5,016,665		15,672,171
China Vanke Co. Ltd. Class H		2,090,031		6,262,255
Country Garden Holdings Co. Ltd.		9,405,727		12,498,586
Fullshare Holdings Ltd.a		11,712,500		4,669,167
Guangzhou R&F Properties Co. Ltd. Class H		1,672,000		3,905,239
Longfor Properties Co. Ltd.		2,612,500		6,275,514
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		1,651,152		2,663,308
Shimao Property Holdings Ltd.		2,090,000		4,315,418
Sino-Ocean Group Holding Ltd.		5,225,000		3,605,083
SOHO China Ltd.		3,657,500		2,131,004

Security	Shares		Value
Sunac China Holdings Ltd.a		3,556,000	$	10,677,382
				116,706,805
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.28%
GCL-Poly Energy Holdings Ltd.a,c		22,781,000		2,561,478
Semiconductor Manufacturing International Corp.a,c		4,911,800		4,619,061
				7,180,539
SOFTWARE — 0.13%
Kingsoft Corp. Ltd.a		1,465,000		3,474,168
				3,474,168
SPECIALTY RETAIL — 0.08%
GOME Electrical Appliances Holding Ltd.		19,437,000		2,036,471
				2,036,471
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.27%
Lenovo Group Ltd.a		12,958,000		7,086,257
				7,086,257
TEXTILES, APPAREL & LUXURY GOODS — 0.61%
ANTA Sports Products Ltd.		1,891,000		7,441,791
Shenzhou International Group Holdings Ltd.a		1,045,000		8,371,803
				15,813,594
TRANSPORTATION INFRASTRUCTURE — 0.80%
Beijing Capital International Airport Co. Ltd. Class H		2,508,000		4,056,920
China Merchants Port Holdings Co. Ltd.		2,090,000		6,836,305
COSCO SHIPPING Ports Ltd.a		2,930,000		3,462,937
Jiangsu Expressway Co. Ltd. Class H		2,090,000		3,204,518
Zhejiang Expressway Co. Ltd. Class H		2,508,000		3,137,223
				20,697,903
WATER UTILITIES — 0.56%
Beijing Enterprises Water Group Ltd.		8,360,000		7,103,348
Guangdong Investment Ltd.		5,024,000		7,420,662
				14,524,010
WIRELESS TELECOMMUNICATION SERVICES — 4.40%
China Mobile Ltd.		10,763,500		114,147,602
				114,147,602

SCHEDULES OF INVESTMENTS 39

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA ETF

August 31, 2017

Security	Shares		Value
TOTAL COMMON STOCKS
(Cost: $2,016,674,889)			$	2,583,043,677
RIGHTS — 0.00%
INDUSTRIAL CONGLOMERATES — 0.00%
Fosun International Ltd. (Expires 09/07/17)c		2,907		—
				—
TOTAL RIGHTS
(Cost: $0)				—
SHORT-TERM INVESTMENTS — 14.43%
MONEY MARKET FUNDS — 14.43%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%e,f,g		373,781,400		373,893,534
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%e,f		527,904		527,904
				374,421,438
TOTAL SHORT-TERM INVESTMENTS
(Cost: $374,364,501)				374,421,438

	Value
TOTAL INVESTMENTS IN SECURITIES — 114.00%
(Cost: $2,391,039,390)h	$	2,957,465,115
Other Assets, Less Liabilities — (14.00)%		(363,217,829	)
NET ASSETS — 100.00%	$	2,594,247,286

ADR  —  American Depositary Receipts

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

^b  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^c Non-income earning security.

^d Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^e Affiliated issuer. See Schedule 1.

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

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

^h  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,451,660,866. Net unrealized appreciation was $505,834,520, of which $700,500,028 represented gross unrealized appreciation on investments and $194,665,508 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		260,259,118		113,522,282	b		—			373,781,400	$	373,893,534	$	32,814	$	56,937	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		3,910,538		—			(3,382,634	)b		527,904		527,904		122		—		11,586
											$	374,421,438	$	32,936	$	56,937	$	11,586

^a Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

40 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA ETF

August 31, 2017

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description	Number of contracts		Expiration date		Notional amount (000)		Value/ unrealized appreciation (depreciation)
Long Contracts:
H-Shares Index		2,400		Sep 2017	$	3,457	$	30,271

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 August 31, 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	$	2,583,043,668	$	—		$	9	$	2,583,043,677
Rights		—		0	a		—		0	a
Money market funds		374,421,438		—			—		374,421,438
Total	$	2,957,465,106	$	0	a	$	9	$	2,957,465,115
Derivative financial instrumentsb:
Assets:
Futures contracts	$	30,271	$	—		$	—	$	30,271
Total	$	30,271	$	—		$	—	$	30,271

^a  Rounds to less than $1.

^b  Shown at the unrealized appreciation (depreciation) on the contracts.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 41

Schedule of Investments

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.43%
AEROSPACE & DEFENSE — 0.31%
KuangChi Science Ltd.a,b		198,000	$	67,042
				67,042
AIR FREIGHT & LOGISTICS — 0.80%
Guangdong Yueyen Transportation Co. Ltd. Class H		27,000		17,525
Sinotrans Ltd. Class H		279,000		157,566
				175,091
AIRLINES — 0.14%
Shandong Airlines Co. Ltd. Class B		18,000		30,704
				30,704
AUTO COMPONENTS — 2.70%
Chaowei Power Holdings Ltd.b		99,000		51,230
China First Capital Group Ltd.a		396,000		158,371
Hunan Tyen Machinery Co. Ltd. Class Ba		29,700		16,097
Launch Tech Co. Ltd.		22,500		26,391
Nexteer Automotive Group Ltd.		117,000		194,341
Tianneng Power International Ltd.		90,000		77,047
Xingda International Holdings Ltd.		126,000		48,298
Zhejiang Shibao Co. Ltd. Class H		45,000		17,019
				588,794
AUTOMOBILES — 0.53%
Hybrid Kinetic Group Ltd.a,b,c		2,394,000		55,059
Qingling Motors Co. Ltd. Class H		90,000		28,979
Yadea Group Holdings Ltd.d		126,000		31,072
				115,110
BANKS — 0.29%
Bank of Chongqing Co. Ltd. Class H		76,500		64,219
				64,219
BEVERAGES — 0.86%
Anhui Gujing Distillery Co. Ltd. Class B		16,200		69,466
Dynasty Fine Wines Group Ltd.a,b,c		128,000		1,145
Tibet Water Resources Ltd.a,b		297,000		116,501
				187,112
BIOTECHNOLOGY — 0.28%
China Regenerative Medicine International Ltd.a,b		1,395,000		35,292
Shanghai Haohai Biological Technology Co. Ltd.d		5,400		26,598
				61,890

Security	Shares		Value
BUILDING PRODUCTS — 0.79%
China Fangda Group Co. Ltd. Class B		59,400	$	38,935
China Lesso Group Holdings Ltd.		144,000		103,403
Far East Global Group Ltd.		72,000		9,200
Luoyang Glass Co. Ltd. Class Ha,b		36,000		21,435
				172,973
CAPITAL MARKETS — 1.01%
China Minsheng Financial Holding Corp. Ltd.a		1,350,000		87,971
Guolian Securities Co. Ltd.		62,000		31,450
Noah Holdings Ltd. ADRa,b		3,483		102,017
				221,438
CHEMICALS — 1.91%
China BlueChemical Ltd. Class H		234,000		72,056
China Lumena New Materials Corp.a,b,c		868,000		1
China XLX Fertiliser Ltd.		63,000		16,904
Fufeng Group Ltd.		207,600		131,831
Huabao International Holdings Ltd.		126,000		76,955
Hubei Sanonda Co. Ltd. Class Ba		23,400		23,022
Shanghai Chlor-Alkali Chemical Co. Ltd. Class Ba		58,500		44,109
Sinofert Holdings Ltd.a,b		270,000		37,258
Yip’s Chemical Holdings Ltd.b		36,000		14,075
				416,211
COMMERCIAL SERVICES & SUPPLIES — 1.08%
Beijing Enterprises Environment Group Ltd.a		54,000		8,487
Capital Environment Holdings Ltd.a		612,000		22,677
China Greenland Broad Greenstate Group Co Ltd.b		108,000		23,459
Dongjiang Environmental Co. Ltd. Class H		28,900		39,880
Dynagreen Environmental Protection Group Co. Ltd. Class H		54,000		28,289
Greentown Service Group Co. Ltd.		90,000		55,082
Shanghai Zhongyida Co. Ltd.a		51,300		22,829
Tianjin Capital Environmental Protection Group Co. Ltd. Class H		54,000		34,222
				234,925
COMMUNICATIONS EQUIPMENT — 2.26%
BYD Electronic International Co. Ltd.b		94,500		260,808
China All Access Holdings Ltd.b		162,000		45,952

42 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
China Fiber Optic Network System Group Ltd.a,c		181,600	$	12,994
Comba Telecom Systems Holdings Ltd.		192,060		28,957
Eastern Communications Co. Ltd. Class B		41,400		26,662
Nanjing Panda Electronics Co. Ltd. Class H		18,000		10,074
O-Net Technologies Group Ltd.a,b		54,000		32,221
Trigiant Group Ltd.		72,000		10,303
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co.d		22,500		64,397
				492,368
CONSTRUCTION & ENGINEERING — 0.52%
Baoye Group Co. Ltd. Class Ha		36,000		26,311
Beijing Urban Construction Design & Development Group Co. Ltd.d		45,000		29,784
China Singyes Solar Technologies Holdings Ltd.		72,400		23,404
Concord New Energy Group Ltd.		810,000		34,153
				113,652
CONSTRUCTION MATERIALS — 1.34%
Asia Cement China Holdings Corp.		67,500		22,424
China National Materials Co. Ltd. Class H		144,000		62,925
China Shanshui Cement Group Ltd.a,c		44,000		24,737
Huaxin Cement Co. Ltd. Class B		31,500		34,839
Shanghai Yaohua Pilkington Glass Group Co. Ltd. Class B		21,600		14,947
TCC International Holdings Ltd.		162,000		74,310
Tongfang Kontafarma Holdings Ltd.a,b		216,000		15,179
West China Cement Ltd.a		306,000		44,181
				293,542
CONSUMER FINANCE — 1.37%
Chong Sing Holdings FinTech Group Ltd.a,b		2,124,000		287,671
Differ Group Holding Co.Ltd.a		180,000		11,959
				299,630
CONTAINERS & PACKAGING — 0.51%
CPMC Holdings Ltd.		36,000		22,217
Greatview Aseptic Packaging Co. Ltd.b		144,000		88,316
				110,533

Security	Shares		Value
DISTRIBUTORS — 0.66%
China Animation Characters Co. Ltd.b		54,000	$	21,182
China Beidahuang Industry Group Holdings Ltd.a		360,000		16,789
Dah Chong Hong Holdings Ltd.		108,000		53,679
Xinhua Winshare Publishing and Media Co. Ltd. Class H		63,000		51,679
				143,329
DIVERSIFIED CONSUMER SERVICES — 1.33%
China Maple Leaf Educational Systems Ltd.b		90,000		76,356
China Yuhua Education Corp Ltd.d		108,000		42,226
Fu Shou Yuan International Group Ltd.b		117,000		78,334
Tarena International Inc. ADR		4,446		62,778
Wisdom Education International Holdings Co. Ltd.		72,000		30,083
				289,777
DIVERSIFIED FINANCIAL SERVICES — 0.12%
Min Xin Holdings Ltd.b		36,000		26,449
				26,449
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.11%
APT Satellite Holdings Ltd.		49,500		24,666
				24,666
ELECTRICAL EQUIPMENT — 1.35%
Boer Power Holdings Ltd.a		36,000		10,166
China Energine International Holdings Ltd.a		252,000		15,938
China High Speed Transmission Equipment Group Co. Ltd.		45,000		46,400
FDG Electric Vehicles Ltd.a,b		1,980,000		77,162
Foshan Electrical and Lighting Co. Ltd. Class B		39,640		30,592
Hangzhou Steam Turbine Co. Ltd. Class Ba		39,524		41,461
Harbin Electric Co. Ltd. Class H		90,000		45,998
Trony Solar Holdings Co. Ltd.a,b,c		216,000		—
Welling Holding Ltd.		145,600		26,417
				294,134
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 5.13%
Anxin-China Holdings Ltd.a,c		672,000		16,314

SCHEDULES OF INVESTMENTS 43

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
AVIC International Holdings Ltd. Class H		37,184	$	17,626
China Aerospace International Holdings Ltd.b		252,000		31,554
China Innovationpay Group Ltd.a,b		720,000		36,798
Ju Teng International Holdings Ltd.		108,000		42,778
Kingboard Chemical Holdings Ltd.		94,500		515,579
Kingboard Laminates Holdings Ltd.		130,500		221,434
PAX Global Technology Ltd.b		108,000		59,751
Technovator International Ltd.a,b		72,000		21,803
Tongda Group Holdings Ltd.b		450,000		124,769
Wasion Group Holdings Ltd.b		72,000		30,727
				1,119,133
ENERGY EQUIPMENT & SERVICES — 0.35%
Anton Oilfield Services Group/Hong Konga,b		234,000		21,527
Hilong Holding Ltd.		108,000		13,937
Honghua Group Ltd.a		252,000		19,963
Wison Engineering Services Co. Ltd.a		153,000		21,504
				76,931
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.72%
Spring REITb		99,000		44,779
Yuexiu REIT		171,000		112,522
				157,301
FOOD & STAPLES RETAILING — 0.20%
Lianhua Supermarket Holdings Co. Ltd. Class Ha		54,000		20,216
Springland International Holdings Ltd.		126,000		24,149
				44,365
FOOD PRODUCTS — 3.35%
China Agri-Industries Holdings Ltd.		288,000		134,682
China Foods Ltd.		108,000		57,405
China Huiyuan Juice Group Ltd.a		67,500		20,872
China Modern Dairy Holdings Ltd.a		198,000		38,960
China Shengmu Organic Milk Ltd.a,b,d		486,000		80,726
China Yurun Food Group Ltd.a,b		180,000		22,999
COFCO Meat Holdings Ltd.a,b		261,000		52,357
Health and Happiness H&H International Holdings Ltd.a,b		27,000		96,596
Honworld Group Ltd.d		27,000		12,868
Shanghai Greencourt Investment Group Co. Ltd. Class Ba		49,500		28,066
Tenwow International Holdings Ltd.		90,000		18,054

Security	Shares		Value
Yashili International Holdings Ltd.a,b		117,000	$	22,573
Yihai International Holding Ltd.		72,000		49,218
YuanShengTai Dairy Farm Ltd.a		486,000		22,355
Zhou Hei Ya International Holdings Co. Ltd.d		81,000		73,378
				731,109
GAS UTILITIES — 0.68%
China Oil and Gas Group Ltd.b		736,000		51,722
Towngas China Co. Ltd.		144,000		97,516
				149,238
HEALTH CARE EQUIPMENT & SUPPLIES — 0.54%
Beijing Enterprises Medical & Health Group Ltd.a		594,000		37,948
Lifetech Scientific Corp.a,b		288,000		63,661
PW Medtech Group Ltd.a		81,000		16,559
				118,168
HEALTH CARE PROVIDERS & SERVICES — 1.75%
China NT Pharma Group Co.Ltd.		76,500		17,105
China Pioneer Pharma Holdings Ltd.		54,000		17,111
China Resources Phoenix Healthcare Holdings Co. Ltd.b		81,000		102,357
Golden Meditech Holdings Ltd.a		144,000		20,607
Harmonicare Medical Holdings Ltd.d		63,017		23,753
iKang Healthcare Group Inc. ADRa		6,831		99,254
New Century Healthcare Holding Co. Ltd.a,d		4,000		4,022
Rici Healthcare Holdings Ltd.a,d		63,000		14,409
Universal Medical Financial & Technical Advisory Services Co. Ltd.b,d		85,500		71,446
Wenzhou Kangning Hospital Co. Ltd.d		2,700		10,833
				380,897
HOTELS, RESTAURANTS & LEISURE — 1.73%
500.com Ltd. ADRa,b		3,159		32,664
Ajisen (China) Holdings Ltd.		90,000		37,948
China LotSynergy Holdings Ltd.a		1,080,000		20,009
China Travel International Investment Hong Kong Ltd.b		288,000		90,156
Haichang Ocean Park Holdings Ltd.a,d		162,000		36,638
Huangshan Tourism Development Co. Ltd. Class B		33,300		51,748
Shanghai Jin Jiang International Hotels Group Co. Ltd. Class H		162,000		46,159

44 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
Shanghai Jinjiang International Travel Co. Ltd. Class B		9,000	$	26,622
Tuniu Corp. ADRa,b		4,752		35,640
				377,584
HOUSEHOLD DURABLES — 2.17%
Hefei Meiling Co. Ltd. Class B		18,936		10,888
Hisense Kelon Electrical Holdings Co. Ltd. Class H		54,000		64,029
Konka Group Co. Ltd. Class Ba		94,500		38,035
Lisi Group Holdings Ltd.		270,000		21,389
Ozner Water International Holding Ltd.a,b,d		54,000		13,247
Q Technology Group Co. Ltd.b		45,000		104,875
Skyworth Digital Holdings Ltd.b		270,000		125,229
TCL Multimedia Technology Holdings Ltd.a		72,000		34,591
Wuxi Little Swan Co. Ltd. Class B		9,900		41,123
Yuxing InfoTech Investment Holdings Ltd.a,b		198,000		20,239
				473,645
HOUSEHOLD PRODUCTS — 0.36%
NVC Lighting Holdings Ltd.b		243,000		30,117
Vinda International Holdings Ltd.		27,000		47,953
				78,070
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 1.68%
Canvest Environment Protection Group Co. Ltd.		81,000		44,400
CGN Meiya Power Holdings Co. Ltd.a,b,d		162,000		20,906
China Datang Corp. Renewable Power Co. Ltd. Class H		315,000		35,016
China Power Clean Energy Development Co. Ltd.		61,500		34,339
Huadian Energy Co. Ltd. Class Ba		61,200		30,049
Huadian Fuxin Energy Corp. Ltd. Class H		360,000		79,576
Kong Sun Holdings Ltd.a		675,000		31,049
Panda Green Energy Group Ltd.a,b		504,000		65,685
Shanghai Lingyun Industries Development Co. Ltd. Class Ba		26,100		26,465
				367,485

Security	Shares		Value
INDUSTRIAL CONGLOMERATES — 0.08%
Chongqing Machinery & Electric Co. Ltd. Class H		144,000	$	17,663
				17,663
INTERNET & DIRECT MARKETING RETAIL — 0.38%
Cogobuy Groupa,b,d		81,000		54,852
Jumei International Holding Ltd. ADRa,b		8,523		28,893
				83,745
INTERNET SOFTWARE & SERVICES — 4.01%
21Vianet Group Inc. ADRa,b		11,421		59,275
Baozun Inc. ADRa,b		3,672		99,842
Bitauto Holdings Ltd. ADRa		2,916		104,393
Fang Holdings Ltd. ADRa,b		35,217		130,303
HC International Inc.		54,000		49,057
INESA Intelligent Tech Inc. Class B		41,400		29,311
Pacific Online Ltd.		45,900		8,152
Phoenix New Media Ltd. ADRa		4,419		19,885
Renren Inc. ADRa		2,304		17,372
Sino-I Technology Ltd.a		1,080,000		14,075
Sohu.com Inc.a		3,996		213,146
Tian Ge Interactive Holdings Ltd.b,d		72,000		49,678
Xunlei Ltd. ADRa		3,249		13,776
Yirendai Ltd. ADRa		1,647		65,880
				874,145
IT SERVICES — 1.65%
AGTech Holdings Ltd.a,b		360,000		73,596
Chinasoft International Ltd.b		288,000		153,081
Digital China Holdings Ltd.a,b		81,000		48,850
GDS Holdings Ltd. ADRa		2,322		21,711
Hi Sun Technology (China) Ltd.a		270,000		62,442
				359,680
LEISURE PRODUCTS — 0.23%
Shanghai Phoenix Enterprise Group Co. Ltd. Class Ba		22,500		21,712
Shenzhen China Bicycle Co. Holdings Ltd.a		36,000		14,351
Zhonglu Co. Ltd. Class B		10,860		15,074
				51,137
LIFE SCIENCES TOOLS & SERVICES — 0.23%
Genscript Biotech Corp.b		54,000		49,885
				49,885
MACHINERY — 2.97%
Changchai Co. Ltd. Class B		27,900		16,006

SCHEDULES OF INVESTMENTS 45

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
China Ocean Industry Group Ltd.a,b		1,515,000	$	12,389
China Yuchai International Ltd.		2,124		38,954
CIMC Enric Holdings Ltd.a		90,000		53,817
CRCC High-Tech Equipment Corp. Ltd.		63,000		21,975
Dalian Refrigeration Co. Ltd. Class B		18,900		10,819
First Tractor Co. Ltd. Class H		54,000		25,184
Huangshi Dongbei Electrical Appliance Co. Ltd. Class B		13,500		21,897
Kama Co. Ltd.a		29,715		30,636
Lonking Holdings Ltd.		270,000		107,290
Sany Heavy Equipment International Holdings Co. Ltd.a,b		108,000		18,767
Shang Gong Group Co. Ltd. Class Ba		29,100		29,595
Shanghai Diesel Engine Co. Ltd. Class B		44,145		34,654
Shanghai Highly Group Co. Ltd. Class B		39,600		31,482
Shanghai Lingang Holdings Corp. Ltd. Class Ba		14,400		23,962
Shanghai Prime Machinery Co. Ltd. Class H		108,000		23,735
Sinotruk Hong Kong Ltd.		97,000		107,331
Sunpower Group Ltd.		36,000		16,966
Zhengzhou Coal Mining Machinery Group Co. Ltd. Class H		34,200		21,893
				647,352
MARINE — 0.55%
Chu Kong Shipping Enterprises Group Co. Ltd.		54,000		13,938
Seaspan Corp.		6,723		48,002
Sinotrans Shipping Ltd.		189,000		58,923
				120,863
MEDIA — 1.45%
Huanxi Media Group Ltd.a,b		90,000		22,769
Huayi Tencent Entertainment Co. Ltd.a,b		720,000		26,219
IMAX China Holding Inc.a,b,d		14,400		33,192
Nan Hai Corp. Ltd.		1,800,000		58,647
Phoenix Satellite Television Holdings Ltd.		180,000		26,219
Poly Culture Group Corp. Ltd. Class H		11,700		26,610
SMI Holdings Group Ltd.b		151,200		75,151
Viva China Holdings Ltd.a		365,600		31,765

Security	Shares		Value
Wisdom Sports Groupa,b		117,000	$	15,398
				315,970
METALS & MINING — 2.76%
Bengang Steel Plates Co. Ltd. Class Ba		56,700		24,125
Chiho Environmental Group Ltd.a,b		54,000		31,049
China Daye Non-Ferrous Metals Mining Ltd.a		864,000		15,455
China Metal Recycling Holdings Ltd.a,c		184,800		—
China Metal Resources Utilization Ltd.a,b,d		72,000		27,507
China Silver Group Ltd.b		144,000		29,439
Da Ming International Holdings Ltd.		36,000		16,053
Inner Mongolia Eerduosi Resourses Co. Ltd. Class B		43,200		48,082
MMG Ltd.a		288,000		140,569
North Mining Shares Co. Ltd.a		1,530,000		26,978
Real Gold Mining Ltd.a,c		126,000		64
Shougang Concord International Enterprises Co. Ltd.a		684,000		25,345
Shougang Fushan Resources Group Ltd.		342,000		77,345
Xinjiang Xinxin Mining Industry Co. Ltd. Class Ha		108,000		15,179
Zhaojin Mining Industry Co. Ltd. Class Hb		144,000		125,114
				602,304
MULTI-UTILITIES — 0.13%
Tianjin Development Holdings Ltd.		54,000		29,048
				29,048
MULTILINE RETAIL — 0.73%
Golden Eagle Retail Group Ltd.		63,000		80,496
Lifestyle China Group Ltd.a		112,500		41,973
Maoye International Holdings Ltd.		135,000		13,627
Parkson Retail Group Ltd.b		157,500		23,948
				160,044
OIL, GAS & CONSUMABLE FUELS — 1.83%
China Suntien Green Energy Corp. Ltd. Class H		216,000		46,918
Inner Mongolia Yitai Coal Co. Ltd. Class B		153,900		200,378
MIE Holdings Corp.a		144,000		12,879
Shanxi Guoxin Energy Corp. Ltd.a		17,120		17,137

46 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
Sino Oil And Gas Holdings Ltd.a		1,215,000	$	24,839
Sinopec Kantons Holdings Ltd.b		144,000		89,236
Yanchang Petroleum International Ltd.a		390,000		7,425
				398,812
PAPER & FOREST PRODUCTS — 1.90%
China Forestry Holdings Co. Ltd.a,c		306,000		1
China Wood Optimization Holding Ltd.		36,000		9,982
Foshan Huaxin Packaging Co. Ltd.c		39,100		22,581
Lee & Man Paper Manufacturing Ltd.		216,000		251,976
Qunxing Paper Holdings Co. Ltd.a,c		148,000		1,702
Shandong Chenming Paper Holdings Ltd. Class B		55,823		81,454
Shandong Chenming Paper Holdings Ltd. Class H		31,500		45,963
Superb Summit International Group Ltd.a,c		59,500		456
				414,115
PHARMACEUTICALS — 4.71%
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.		36,000		47,470
China Animal Healthcare Ltd.a,b,c		140,000		5,009
China Shineway Pharmaceutical Group Ltd.		36,000		32,843
China Traditional Chinese Medicine Holdings Co. Ltd.b		270,000		163,522
Consun Pharmaceutical Group Ltd.b		54,000		43,744
Dawnrays Pharmaceutical Holdings Ltd.		72,000		42,870
Hua Han Health Industry Holdings Ltd. Class Ha,b,c		651,960		34,987
Hutchison China Meditech Ltd.a		2,898		141,994
Lee’s Pharmaceutical Holdings Ltd.b		36,000		28,519
Livzon Pharmaceutical Group Inc. Class H		14,066		76,562
Luye Pharma Group Ltd.b		157,500		79,691
Pengqi Technology Development Co. Ltd. Class B		32,000		28,896
Shandong Xinhua Pharmaceutical Co. Ltd. Class H		22,000		20,548
Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co. Ltd. Class H		36,000		18,445
Shanghai Kai Kai Industrial Co. Ltd.		11,700		11,957

Security	Shares		Value
Shanghai Shenqi Pharmaceutical Investment Management Co. Ltd.		5,400	$	6,944
SSY Group Ltd.		216,255		100,025
Tianjin ZhongXin Pharmaceutical Group Corp. Ltd.		26,100		29,493
Tong Ren Tang Technologies Co. Ltd. Class H		81,000		113,845
				1,027,364
PROFESSIONAL SERVICES — 1.03%
51job Inc. ADRa		3,294		195,664
Zhaopin Ltd. ADRa		1,647		30,140
				225,804
REAL ESTATE MANAGEMENT & DEVELOPMENT — 17.28%
Agile Group Holdings Ltd.		216,000		258,876
AVIC International Holding HK Ltd.a		468,000		22,424
Beijing Capital Land Ltd. Class H		144,000		72,861
Beijing North Star Co. Ltd. Class H		90,000		36,568
Beijing Properties Holdings Ltd.a,b		288,000		12,327
C C Land Holdings Ltd.a		216,500		47,580
Carnival Group International Holdings Ltd.a,b		810,077		66,243
Central China Real Estate Ltd.a,b		99,038		38,216
China Aoyuan Property Group Ltd.b		153,000		64,708
China Electronics Optics Valley Union Holding Co Ltd.		360,000		33,119
China Logistics Property Holdings Co. Ltd.a,b		171,000		58,337
China Merchants Land Ltd.b		180,000		36,108
China Overseas Grand Oceans Group Ltd.		126,000		68,583
China Overseas Property Holdings Ltd.b		180,000		38,178
China SCE Property Holdings Ltd.b		162,800		83,205
China South City Holdings Ltd.		396,000		81,462
CIFI Holdings Group Co. Ltd.		450,000		252,988
Colour Life Services Group Co. Ltd.b		45,000		29,611
Crown International Corp Ltd.a,b		126,000		20,607
Fantasia Holdings Group Co. Ltd.		216,000		29,255
Future Land Development Holdings Ltd.		234,000		95,975
Gemdale Properties & Investment Corp. Ltd.		522,000		50,690
Glorious Property Holdings Ltd.a		387,000		43,020
Greenland Hong Kong Holdings Ltd.		108,000		37,948

SCHEDULES OF INVESTMENTS 47

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
Greentown China Holdings Ltd.		94,500	$	114,707
Guangdong Land Holdings Ltd.a		72,000		15,915
Guorui Properties Ltd.b		117,000		36,327
HKC Holdings Ltd.		18,920		14,263
Hopson Development Holdings Ltd.		90,000		85,096
Hydoo International Holding Ltd.a		180,000		14,719
K Wah International Holdings Ltd.		180,000		104,185
Kaisa Group Holdings Ltd.a,b		567,000		265,879
KWG Property Holding Ltd.		166,500		151,471
Logan Property Holdings Co. Ltd.		162,000		151,724
Minmetals Land Ltd.		216,000		30,911
Poly Property Group Co. Ltd.a		270,000		141,443
Powerlong Real Estate Holdings Ltd.		162,000		81,968
Renhe Commercial Holdings Co. Ltd.a		2,160,000		50,230
Road King Infrastructure Ltd.		36,000		47,838
Ronshine China Holdings Ltd.a		54,000		58,095
Shanghai Industrial Urban Development Group Ltd.		198,000		43,261
Shanghai Shibei Hi-Tech Co. Ltd. Class B		71,000		40,683
Shenzhen Investment Ltd.		414,000		188,844
Shenzhen SEG Co. Ltd. Class B		32,400		15,607
Shenzhen Wongtee International Enterprise Co. Ltd. Class Ba		19,800		11,916
Shui On Land Ltd.		535,500		125,212
Sinolink Worldwide Holdings Ltd.a		252,000		35,740
SRE Group Ltd.a		810,000		21,217
Suncity Group Holdings Ltd.a,b		270,000		15,352
Tian Shan Development Holding Ltd.		36,000		14,581
Xinyuan Real Estate Co. Ltd. ADR		5,247		26,340
Yuexiu Property Co. Ltd.		936,000		172,216
Yuzhou Properties Co. Ltd.		180,440		115,967
				3,770,596
ROAD & RAIL — 0.59%
Dazhong Transportation Group Co. Ltd. Class B		97,200		66,485
eHi Car Services Ltd. ADRa		3,312		30,636
Shanghai Jinjiang International Industrial Investment Co. Ltd. Class B		23,400		32,034
				129,155

Security	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.69%
China Electronics Corp. Holdings Co. Ltd.		126,000	$	17,870
Hua Hong Semiconductor Ltd.d		54,000		71,757
JA Solar Holdings Co. Ltd. ADRa,b		5,805		38,777
JinkoSolar Holding Co. Ltd.a,b		2,907		80,902
Shanghai Fudan Microelectronics Group Co. Ltd. Class Ha		36,000		24,609
Xinyi Solar Holdings Ltd.b		396,000		134,590
				368,505
SOFTWARE — 3.64%
Beijing Beida Jade Bird Universal Sci-Tech Co. Ltd. Class Ha		90,000		18,399
BII Railway Transportation Technology Holdings Co. Ltd.a,b		72,000		8,556
Boyaa Interactive International Ltd.a,b		72,000		28,519
Changyou.com Ltd. ADRa		2,376		95,088
Chanjet Information Technology Co. Ltd. Class Ha		9,000		12,097
Cheetah Mobile Inc. ADRa,b		4,437		40,465
Gridsum Holding Inc. ADRa		2,025		18,812
IGG Inc.		108,000		169,180
Kingdee International Software Group Co. Ltd.a,b		252,022		107,230
Leyou Technologies Holdings Ltd.a		180,000		39,558
National Agricultural Holdings Ltd.a,b,c		126,000		17,226
NetDragon Websoft Holdings Ltd.b		27,000		99,355
NQ Mobile Inc. ADRa,b		10,719		35,694
Ourgame International Holdings Ltd.a,b		45,000		10,695
Rentian Technology Holdings Ltd.a		450,000		21,849
Shanghai Baosight Software Co. Ltd. Class B		31,580		46,044
Sinosoft Technology Group Ltd.b		81,012		24,843
				793,610
SPECIALTY RETAIL — 1.94%
Boshiwa International Holding Ltd.a,b,c		153,000		1,368
China Harmony New Energy Auto Holding Ltd.a,b		117,000		60,545
China ZhengTong Auto Services Holdings Ltd.		121,500		114,880
Hengdeli Holdings Ltd.		288,000		16,559
Pou Sheng International Holdings Ltd.b		288,000		53,357
Zhongsheng Group Holdings Ltd.		81,000		175,942
				422,651

48 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.32%
Coolpad Group Ltd.a,c		432,000	$	35,878
Goldpac Group Ltd.		45,000		13,340
TPV Technology Ltd.		126,000		21,734
				70,952
TEXTILES, APPAREL & LUXURY GOODS — 4.32%
361 Degrees International Ltd.		81,000		34,878
Best Pacific International Holdings Ltd.b		36,000		20,147
Bosideng International Holdings Ltd.		378,000		32,359
C.banner International Holdings Ltd.a,b		135,000		49,678
China Dongxiang Group Co. Ltd.		459,000		82,106
China Lilang Ltd.		54,000		42,433
China Longevity Group Co. Ltd.a,c		96,000		859
Citychamp Watch & Jewellery Group Ltd.		180,000		40,018
Cosmo Lady China Holdings Co. Ltd.b,d		81,000		30,428
Fuguiniao Co. Ltd. Class Ha,c		43,200		16,062
HengTen Networks Group Ltd.a,b		3,096,000		98,104
HOSA International Ltd.b		90,000		27,254
Lao Feng Xiang Co. Ltd. Class B		27,980		107,947
Li Ning Co. Ltd.a		216,000		160,073
Luthai Textile Co. Ltd. Class B		33,300		37,315
Shanghai Haixin Group Co. Class B		57,600		39,398
Texhong Textile Group Ltd.b		40,500		46,055
Weiqiao Textile Co. Class Ha		54,000		28,703
XTEP International Holdings Ltd.b		139,500		49,551
				943,368
TRADING COMPANIES & DISTRIBUTORS — 0.94%
BEP International Holdings Ltd.b		1,710,000		41,294
China Aircraft Leasing Group Holdings Ltd.b		31,500		33,929
China Chengtong Development Group Ltd.a,b		414,000		26,978
CITIC Resources Holdings Ltd.b		396,037		45,542
DongfengSci-Tech Group Co. Ltd. Class Ba		92,100		28,831
Shanghai Dasheng Agricultural Finance Technology Co. Ltd.		324,000		28,565
				205,139

Security	Shares		Value
TRANSPORTATION INFRASTRUCTURE — 4.20%
Anhui Expressway Co. Ltd. Class H		54,000	$	40,846
COSCO SHIPPING International Hong Kong Co. Ltd.		72,000		30,450
Guangdong Provincial Expressway Development Co. Ltd. Class B		49,500		43,767
HNA Infrastructure Co. Ltd. Class H		18,000		16,260
Hopewell Highway Infrastructure Ltd.		144,000		88,316
Jinzhou Port Co. Ltd. Class B		38,700		20,240
Qingdao Port International Co. Ltd.d		153,000		89,144
Qinhuangdao Port Co. Ltd.a		99,000		36,557
Shenzhen Chiwan Wharf Holdings Ltd. Class B		17,100		30,217
Shenzhen Expressway Co. Ltd. Class H		108,000		105,427
Shenzhen International Holdings Ltd.		121,500		223,239
Sichuan Expressway Co. Ltd. Class H		126,000		51,518
Tianjin Port Development Holdings Ltd.		252,000		41,536
Xiamen International Port Co. Ltd. Class H		144,000		29,991
Yuexiu Transport Infrastructure Ltd.		90,000		68,997
				916,505
WATER UTILITIES — 0.94%
China Everbright Water Ltd.		97,200		33,641
China Water Affairs Group Ltd.		108,000		62,373
China Water Industry Group Ltd.a		144,000		30,175
CT Environmental Group Ltd.		306,000		43,399
Kangda International Environmental Co. Ltd.d		99,000		19,227
Yunnan Water Investment Co. Ltd.		45,000		16,444
				205,259
TOTAL COMMON STOCKS
(Cost: $22,439,850)				21,701,186
RIGHTS — 0.04%
DISTRIBUTORS — 0.01%
Digital China Holdings Ltd. (Expires 09/07/17)a		20,249		1,656
				1,656

SCHEDULES OF INVESTMENTS 49

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

Security	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.03%
Carnival Group International Holdings Ltd. (Expires 09/21/17)a		202,519	$	6,210
				6,210
TOTAL RIGHTS
(Cost: $0)				7,866
SHORT-TERM INVESTMENTS — 28.67%
MONEY MARKET FUNDS — 28.67%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%e,f,g		6,245,946		6,247,819
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%e,f		8,446		8,446
				6,256,265
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,254,767)				6,256,265

	Value
TOTAL INVESTMENTS IN SECURITIES — 128.14%
(Cost: $28,694,617)h	$	27,965,317
Other Assets, Less Liabilities — (28.14)%		(6,140,481	)
NET ASSETS — 100.00%	$	21,824,836

ADR  —  American Depositary Receipts

^a Non-income earning security.

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

^c Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^d This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^e Affiliated issuer. See Schedule 1.

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

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

^h The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $29,293,987. Net unrealized depreciation was $1,328,670, of which $4,842,590 represented gross unrealized appreciation on investments and $6,171,260 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		6,103,400		142,546	b		—			6,245,946	$	6,247,819	$	98	$	1,498	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		17,981		—			(9,535	)b		8,446		8,446		2		—		154
											$	6,256,265	$	100	$	1,498	$	154

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

50 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHINA SMALL-CAP ETF

August 31, 2017

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 August 31, 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	$	21,477,324	$	—	$	223,862	$	21,701,186
Rights		1,656		6,210		—		7,866
Money market funds		6,256,265		—		—		6,256,265
Total	$	27,735,245	$	6,210	$	223,862	$	27,965,317

The following table includes a rollfoward for the year ended August, 31, 2017 of investments whose values are classified as Level 3 as of the beginning or end of the year.

	Common Stocks
Balance at beginning of year	$	330,149
Realized gain (loss) and change in unrealized appreciation/depreciation		150,172
Purchases		62,505
Sales		(363,515	)
Transfers ina		186,956	b
Transfers outa		(142,405	)c
Balance at end of year	$	223,862
Net change in unrealized appreciation/depreciation on investments still held at end of year	$	(78,740	)

^a  Represents the value as of the beginning of the reporting period.

^b  Transfers in to Level 3 are due to the suspension of trading of equity securities.

^c  Transfers out of Level 3 are due to resumption of trading of equity securities.

The following table summarizes the valuation techniques used and unobservable inputs developed by the Global Valuation Committee to determine the fair value of certain of the Fund’s level 3 investments as of August 31, 2017:

	Value		Valuation Approach	Valuation Technique	Unobservable Inputs		Range of Unobservable Inputs a		Weighted Average of Unobservable Inputs b
Common Stock	$	1,702	Market	Market comparables		Recovery rate		n/a		n/a
Common Stock		172,207	Market	Last traded price — adjusted		Liquidity discount		-8% to -25%		14	%
Common Stockc		25,215	Market	Grey market trade — adjusted		Liquidity discount		-40% to -95%		52	%
Common Stock		24,738	Market	Grey market trade		Trade details		n/a		n/a

^a  An increase in the unobservable input may result in a significant increase to value, while a decrease in the unobservable input may result in a significant decrease to value.

^b  Unobservable inputs are weighted based on the fair value of the investments included in the range.

^c  During the year ended August 31, 2017, the inputs used to value certain investments in common stocks in the amount of $31,364 were updated to incorporate recent market transactions.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 51

Schedule of Investments

iSHARES^® MSCI INDONESIA ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.90%
AIRLINES — 0.07%
Garuda Indonesia Persero Tbk PTa		14,916,000	$	364,459
				364,459
AUTOMOBILES — 8.96%
Astra International Tbk PT		76,093,130		44,913,311
				44,913,311
BANKS — 32.40%
Bank Bukopin Tbk		13,863,299		618,248
Bank Central Asia Tbk PT		37,134,758		52,743,492
Bank Danamon Indonesia Tbk PT		13,008,860		5,313,917
Bank Mandiri Persero Tbk PT		34,966,480		34,332,251
Bank Negara Indonesia Persero Tbk PT		28,921,358		15,932,542
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT		9,272,736		1,779,209
Bank Pembangunan Daerah Jawa Timur Tbk PT		12,752,700		678,640
Bank Rakyat Indonesia Persero Tbk PT		41,748,772		47,328,000
Bank Tabungan Negara Persero Tbk PT		16,610,026		3,747,278
				162,473,577
CAPITAL MARKETS — 0.34%
Kresna Graha Investama PT Tbka		50,589,800		1,691,130
				1,691,130
CONSTRUCTION & ENGINEERING — 1.95%
Adhi Karya Persero Tbk PT		6,764,410		1,024,142
Pembangunan Perumahan Persero Tbk PT		11,819,322		2,489,304
Sitara Propertindo Tbk PTa		15,832,200		872,183
Surya Semesta Internusa Tbk PT		11,620,074		579,175
Waskita Karya Persero Tbk PT		18,107,700		3,012,974
Wijaya Karya Persero Tbk PT		11,991,370		1,784,055
				9,761,833
CONSTRUCTION MATERIALS — 4.73%
Holcim Indonesia Tbk PTa		5,904,500		351,827
Indocement Tunggal Prakarsa Tbk PT		7,066,044		10,486,259
Semen Baturaja Persero TBK PT		9,384,700		2,124,254
Semen Indonesia Persero Tbk PT		11,404,155		8,953,569
Waskita Beton Precast Tbk PT		41,533,000		1,357,247

Security	Shares		Value
Wijaya Karya Beton Tbk PT		10,072,300	$	426,537
				23,699,693
DIVERSIFIED TELECOMMUNICATION SERVICES — 14.39%
Inovisi Infracom Tbk PTa,b		9,476,400		—
Link Net Tbk PT		4,070,900		1,519,493
Telekomunikasi Indonesia Persero Tbk PT		190,153,090		66,842,902
Tower Bersama Infrastructure Tbk PT		7,885,200		3,797,213
				72,159,608
FOOD & STAPLES RETAILING — 0.05%
Matahari Putra Prima Tbk PTa		5,107,900		254,591
				254,591
FOOD PRODUCTS — 5.88%
Charoen Pokphand Indonesia Tbk PT		28,086,625		5,831,206
Eagle High Plantations Tbk PTa		41,920,852		672,393
Indofood CBP Sukses Makmur Tbk PT		9,037,454		5,910,042
Indofood Sukses Makmur Tbk PT		16,927,730		10,625,824
Japfa Comfeed Indonesia Tbk PT		17,432,800		1,567,933
Nippon Indosari Corpindo Tbk PT		5,834,100		533,473
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		11,664,700		1,202,141
Salim Ivomas Pratama Tbk PT		12,054,500		449,943
Sawit Sumbermas Sarana Tbk PT		9,047,000		1,017,126
Tiga Pilar Sejahtera Food Tbka		7,948,700		616,617
Tunas Baru Lampung Tbk PT		10,148,200		1,064,869
				29,491,567
GAS UTILITIES — 1.31%
Perusahaan Gas Negara Persero Tbk PT		41,518,807		6,597,202
				6,597,202
HEALTH CARE PROVIDERS & SERVICES — 0.21%
Siloam International Hospitals Tbk PTa		1,280,212		1,053,090
				1,053,090
HOUSEHOLD PRODUCTS — 4.45%
Sekawan Intipratama Tbk PTa,b		30,572,100		52,703
Unilever Indonesia Tbk PT		5,870,204		22,240,954
				22,293,657

52 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI INDONESIA ETF

August 31, 2017

Security	Shares		Value
INSURANCE — 0.24%
Panin Financial Tbk PTa		63,995,078	$	1,189,535
				1,189,535
MARINE — 0.00%
Berlian Laju Tanker Tbk PTa,b		20,137,514		—
				—
MEDIA — 1.68%
Global Mediacom Tbk PT		26,972,600		986,556
Media Nusantara Citra Tbk PT		21,768,100		2,431,005
MNC Investama Tbk PTa		91,292,100		677,404
Surya Citra Media Tbk PT		22,276,800		3,689,981
Visi Media Asia Tbk PTa		31,276,700		665,761
				8,450,707
METALS & MINING — 0.74%
Aneka Tambang Persero Tbk PTa		32,134,754		1,782,320
Krakatau Steel Persero Tbk PTa		14,735,293		612,958
Pelat Timah Nusantara Tbk PTa		1,917,700		494,445
Timah Persero Tbk PT		11,402,680		816,187
				3,705,910
MULTILINE RETAIL — 1.89%
Matahari Department Store Tbk PT		9,443,100		7,077,724
Mitra Adiperkasa Tbk PT		2,838,500		1,489,245
Ramayana Lestari Sentosa Tbk PT		12,132,300		918,425
				9,485,394
OIL, GAS & CONSUMABLE FUELS — 6.31%
Adaro Energy Tbk PT		54,782,039		7,493,421
Bumi Resources Tbk PTa		95,543,900		1,632,739
Harum Energy Tbk PTa		3,081,500		535,833
Indo Tambangraya Megah Tbk PT		1,294,280		1,886,805
Medco Energi Internasional Tbk PTa		5,697,300		1,409,166
PT Delta Dunia Makmur Tbka		17,396,300		1,251,720
Sugih Energy Tbk PTa		119,120,611		446,412
Tambang Batubara Bukit Asam Persero Tbk PT		2,636,150		2,445,087
United Tractors Tbk PT		6,407,596		14,551,803
				31,652,986
PERSONAL PRODUCTS — 0.09%
Industri Jamu Dan Farmasi Sido Muncul Tbk PT		12,639,700		473,681
				473,681

Security	Shares		Value
PHARMACEUTICALS — 2.16%
Indofarma Persero Tbk PTa		2,355,400	$	446,647
Kalbe Farma Tbk PT		81,029,485		10,385,281
				10,831,928
REAL ESTATE MANAGEMENT & DEVELOPMENT — 5.29%
Alam Sutera Realty Tbk PT		37,434,816		1,004,472
Bumi Serpong Damai Tbk PT		29,851,422		4,105,633
Ciputra Development Tbk PT		53,000,713		4,647,792
Hanson International Tbk PTa		240,206,935		2,430,515
Intiland Development Tbk PT		23,762,020		730,207
Kawasan Industri Jababeka Tbk PT		57,998,313		1,347,585
Lippo Karawaci Tbk PT		52,780,462		3,105,431
Modernland Realty Tbk PT		33,331,918		674,533
Pakuwon Jati Tbk PT		83,523,877		4,194,349
PP Properti Tbk PT		82,587,939		1,262,775
Summarecon Agung Tbk PT		38,486,858		3,014,448
				26,517,740
ROAD & RAIL — 0.13%
Blue Bird Tbk PT		1,901,000		676,791
				676,791
SPECIALTY RETAIL — 0.49%
Ace Hardware Indonesia Tbk PT		29,958,179		2,447,490
				2,447,490
TEXTILES, APPAREL & LUXURY GOODS — 0.18%
Sri Rejeki Isman Tbk PT		31,788,400		881,555
				881,555
TOBACCO — 3.85%
Gudang Garam Tbk PT		1,841,742		9,552,432
Hanjaya Mandala Sampoerna Tbk PT		35,832,700		9,775,973
				19,328,405
TRADING COMPANIES & DISTRIBUTORS — 0.71%
AKR Corporindo Tbk PT		6,969,700		3,539,178
				3,539,178
TRANSPORTATION INFRASTRUCTURE — 0.74%
Jasa Marga Persero Tbk PT		8,486,808		3,705,266
				3,705,266

SCHEDULES OF INVESTMENTS 53

Schedule of Investments (Continued)

iSHARES^® MSCI INDONESIA ETF

August 31, 2017

Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 0.66%
XL Axiata Tbk PTa		12,221,800	$	3,297,742
				3,297,742
TOTAL COMMON STOCKS
(Cost: $548,795,871)				500,938,026
SHORT-TERM INVESTMENTS — 0.03%
MONEY MARKET FUNDS — 0.03%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		146,022		146,022
				146,022

	Value
TOTAL SHORT-TERM INVESTMENTS
(Cost: $146,022)	$	146,022
TOTAL INVESTMENTS IN SECURITIES — 99.93%		501,084,048
(Cost: $548,941,893)e
Other Assets, Less Liabilities — 0.07%		327,039
NET ASSETS — 100.00%	$	501,411,087

^a  Non-income earning security.

^b  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^c  Affiliated issuer. See Schedule 1.

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

^e  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $555,301,837. Net unrealized depreciation was $54,217,789, of which $40,015,266 represented gross unrealized appreciation on investments and $94,233,055 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		104,297		41,725	b		—		146,022	$	146,022	$	3	$	—	$	1,438

^a Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 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	$	500,885,323	$	—	$	52,703	$	500,938,026
Money market funds		146,022		—		—		146,022
Total	$	501,031,345	$	—	$	52,703	$	501,084,048

See notes to financial statements.

54 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI PHILIPPINES ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.60%
AIRLINES — 0.71%
Cebu Air Inc.		579,880	$	1,227,301
				1,227,301
BANKS — 13.97%
Bank of the Philippine Islands		2,148,589		4,446,660
BDO Unibank Inc.		5,373,714		13,347,646
Metropolitan Bank & Trust Co.		1,739,046		2,977,143
Rizal Commercial Banking Corp.		270,418		271,105
Security Bank Corp.		618,100		3,019,836
				24,062,390
CHEMICALS — 0.80%
D&L Industries Inc.		6,835,500		1,381,260
				1,381,260
CONSTRUCTION MATERIALS — 0.44%
CEMEX Holdings Philippines Inc.a,b		6,392,400		749,549
				749,549
DIVERSIFIED FINANCIAL SERVICES — 12.89%
Ayala Corp.		679,388		12,214,910
GT Capital Holdings Inc.		236,970		5,177,496
Metro Pacific Investments Corp.		38,762,500		4,810,277
				22,202,683
ELECTRIC UTILITIES — 0.46%
First Philippine Holdings Corp.		606,129		793,642
				793,642
FOOD & STAPLES RETAILING — 0.54%
Cosco Capital Inc.		6,049,800		926,919
				926,919
FOOD PRODUCTS — 4.47%
Century Pacific Food Inc.		2,421,300		817,668
Universal Robina Corp.		2,410,650		6,882,860
				7,700,528
HOTELS, RESTAURANTS & LEISURE — 5.40%
Bloomberry Resorts Corp.b		10,528,365		2,308,545
Jollibee Foods Corp.		1,182,533		5,504,776
Melco Resorts And Entertainment (Philippines) Corp.b		4,647,100		807,362
Premium Leisure Corp.		21,619,000		684,440
				9,305,123

Security	Shares		Value
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 4.83%
Aboitiz Power Corp.		4,024,015	$	3,106,285
Energy Development Corp.		25,615,420		3,394,031
First Gen Corp.		3,503,437		1,151,608
Lopez Holdings Corp.		5,055,750		667,908
				8,319,832
INDUSTRIAL CONGLOMERATES — 20.70%
Aboitiz Equity Ventures Inc.		5,391,390		7,844,225
Alliance Global Group Inc.		11,231,939		3,051,084
DMCI Holdings Inc.		10,891,000		3,341,581
JG Summit Holdings Inc.		7,833,882		10,992,236
SM Investments Corp.		658,721		10,433,718
				35,662,844
METALS & MINING — 0.26%
Nickel Asia Corp.		3,118,200		439,973
				439,973
OIL, GAS & CONSUMABLE FUELS — 0.71%
Petron Corp.		6,408,400		1,227,327
				1,227,327
REAL ESTATE MANAGEMENT & DEVELOPMENT — 23.78%
Ayala Land Inc.		20,116,240		16,511,278
DoubleDragon Properties Corp.b		1,828,990		1,558,412
Filinvest Land Inc.		26,521,590		989,960
Megaworld Corp.		30,852,700		2,978,549
Robinsons Land Corp.		4,477,400		2,030,011
SM Prime Holdings Inc.		23,688,535		15,462,128
Vista Land & Lifescapes Inc.		12,275,000		1,427,325
				40,957,663
SOFTWARE — 0.12%
Xurpas Inc.		1,777,100		201,083
				201,083
TRANSPORTATION INFRASTRUCTURE — 1.64%
International Container Terminal Services Inc.		1,383,480		2,822,656
				2,822,656
WATER UTILITIES — 1.18%
Manila Water Co. Inc.		3,369,529		2,038,048
				2,038,048

SCHEDULES OF INVESTMENTS 55

Schedule of Investments (Continued)

iSHARES^® MSCI PHILIPPINES ETF

August 31, 2017

Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 6.70%
Globe Telecom Inc.		90,735	$	3,546,414
PLDT Inc.		236,297		7,988,934
				11,535,348
TOTAL COMMON STOCKS
(Cost: $196,521,985)				171,554,169
SHORT-TERM INVESTMENTS — 0.02%
MONEY MARKET FUNDS — 0.02%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		36,088		36,088
				36,088

	Value
TOTAL SHORT-TERM INVESTMENTS
(Cost: $36,088)	$	36,088
TOTAL INVESTMENTS IN SECURITIES — 99.62%		171,590,257
(Cost: $196,558,073)e
Other Assets, Less Liabilities — 0.38%		654,560
NET ASSETS — 100.00%	$	172,244,817

^a  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

^b  Non-income earning security.

^c  Affiliated issuer. See Schedule 1.

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

^e  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $197,713,864. Net unrealized depreciation was $26,123,607, of which $5,377,063 represented gross unrealized appreciation on investments and $31,500,670 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		59,257		—		(23,169	)b		36,088	$	36,088	$	14	$	—	$	614

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 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	$	171,554,169	$	—	$	—	$	171,554,169
Money market funds		36,088		—		—		36,088
Total	$	171,590,257	$	—	$	—	$	171,590,257

See notes to financial statements.

56 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI POLAND CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.90%
BANKS — 30.52%
Alior Bank SAa		444,316	$	8,206,430
Bank Handlowy w Warszawie SA		173,961		3,456,437
Bank Millennium SAa		3,048,465		6,355,590
Bank Pekao SA		688,775		24,662,439
Bank Zachodni WBK SA		146,807		15,184,381
Getin Noble Bank SAa,b		2,680,538		960,175
mBank SAa		72,618		8,900,958
Powszechna Kasa Oszczednosci Bank Polski SAa		4,210,691		43,221,622
				110,948,032
CAPITAL MARKETS — 0.59%
Warsaw Stock Exchange		162,581		2,143,845
				2,143,845
CHEMICALS — 2.97%
Ciech SAa		146,079		2,564,374
Grupa Azoty SA		232,552		4,483,918
Synthos SA		2,797,626		3,742,277
				10,790,569
CONSTRUCTION & ENGINEERING — 1.05%
Budimex SA		60,117		3,821,452
				3,821,452
CONSUMER FINANCE — 2.15%
KRUK SA		81,857		7,810,249
				7,810,249
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.92%
Netia SA		1,161,514		1,267,673
Orange Polska SAa		3,412,342		5,720,023
				6,987,696
ELECTRIC UTILITIES — 8.55%
Enea SA		1,159,366		4,947,762
Energa SAa		1,126,670		4,300,604
PGE Polska Grupa Energetyczna SA		3,991,677		15,940,346
Tauron Polska Energia SAa		5,374,567		5,895,870
				31,084,582
FOOD & STAPLES RETAILING — 1.23%
Eurocash SA		408,813		4,477,792
				4,477,792

Security	Shares		Value
HEALTH CARE PROVIDERS & SERVICES — 0.28%
Neuca SA		13,742	$	1,034,476
				1,034,476
INSURANCE — 10.07%
Powszechny Zaklad Ubezpieczen SA		2,697,593		36,613,103
				36,613,103
MEDIA — 2.01%
Cyfrowy Polsat SAb		972,321		7,292,272
				7,292,272
METALS & MINING — 6.99%
Boryszew SAa,b		535,091		1,549,838
Jastrzebska Spolka Weglowa SAa		267,675		7,790,396
KGHM Polska Miedz SA		455,875		16,087,154
				25,427,388
OIL, GAS & CONSUMABLE FUELS — 19.53%
Grupa Lotos SAa,b		459,305		7,565,538
Lubelski Wegiel Bogdanka SA		76,821		1,633,849
Polski Koncern Naftowy ORLEN SA		1,395,219		46,033,559
Polskie Gornictwo Naftowe i Gazownictwo SA		8,239,705		15,748,918
				70,981,864
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.79%
Globe Trade Centre SA		1,036,808		2,872,446
				2,872,446
ROAD & RAIL — 0.84%
PKP Cargo SAa,b		171,540		3,064,140
				3,064,140
SOFTWARE — 3.48%
Asseco Poland SA		379,368		4,809,249
CD Projekt SA		335,322		7,826,119
				12,635,368
TEXTILES, APPAREL & LUXURY GOODS — 6.93%
CCC SA		135,146		9,916,405
LPP SAb		6,244		15,258,607
				25,175,012
TOTAL COMMON STOCKS
(Cost: $349,831,520)				363,160,286

SCHEDULES OF INVESTMENTS 57

Schedule of Investments (Continued)

iSHARES^® MSCI POLAND CAPPED ETF

August 31, 2017

Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.73%
MONEY MARKET FUNDS — 1.73%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%c,d,e		6,190,556	$	6,192,414
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%c,d		97,375		97,375
				6,289,789
TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,288,195)				6,289,789

	Value
TOTAL INVESTMENTS IN SECURITIES — 101.63%	$	369,450,075
(Cost: $356,119,715)f
Other Assets, Less Liabilities — (1.63)%		(5,913,395	)
NET ASSETS — 100.00%	$	363,536,680

^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  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 (including short positions and derivatives, if any) for federal income tax purposes was $373,381,999. Net unrealized depreciation was $3,931,924, of which $42,709,121 represented gross unrealized appreciation on investments and $46,641,045 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		7,546,737		—			(1,356,181	)b		6,190,556	$	6,192,414	$	6,755	$	1,594	$	—	c
BlackRock Cash Funds: Treasury, SL Agency Shares		61,697		35,678	b		—			97,375		97,375		11		—		843
											$	6,289,789	$	6,766	$	1,594	$	843

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

^c  Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

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 August 31, 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	$	363,160,286	$	—	$	—	$	363,160,286
Money market funds		6,289,789		—		—		6,289,789
Total	$	369,450,075	$	—	$	—	$	369,450,075

See notes to financial statements.

58 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI QATAR CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 100.03%
AIR FREIGHT & LOGISTICS — 1.47%
Gulf Warehousing Co.		55,277	$	725,641
				725,641
BANKS — 48.32%
Commercial Bank PQSC (The)a		283,337		2,319,609
Doha Bank QPSC		179,230		1,484,539
Masraf Al Rayan QSC		492,138		5,156,214
Qatar First Banka		336,926		633,833
Qatar International Islamic Bank QSC		68,487		1,028,833
Qatar Islamic Bank SAQ		89,277		2,280,195
Qatar National Bank QPSC		305,635		10,962,150
				23,865,373
CONSTRUCTION MATERIALS — 1.29%
Qatar National Cement Co. QSC		34,650		637,569
				637,569
DIVERSIFIED FINANCIAL SERVICES — 1.79%
Qatar Industrial Manufacturing Co. QSC		32,628		380,828
Salam International Investment Ltd. QSC		218,406		503,841
				884,669
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.62%
Ooredoo QSC		94,849		2,281,586
				2,281,586
ENERGY EQUIPMENT & SERVICES — 1.05%
Gulf International Services QSC		102,177		516,041
				516,041
FOOD & STAPLES RETAILING — 0.98%
Al Meera Consumer Goods Co. QSC		11,753		484,483
				484,483
HEALTH CARE PROVIDERS & SERVICES — 1.06%
Medicare Group		27,617		523,633
				523,633
INDUSTRIAL CONGLOMERATES — 11.00%
Industries Qatar QSC		199,598		4,988,237
Mannai Corp. QSC		23,923		446,300
				5,434,537
INSURANCE — 4.63%
Qatar Insurance Co. SAQ		126,236		2,288,109
				2,288,109

Security	Shares		Value
MARINE — 3.17%
Qatar Navigation QSC		89,277	$	1,564,998
				1,564,998
MULTI-UTILITIES — 4.34%
Qatar Electricity & Water Co. QSC		41,970		2,143,885
				2,143,885
OIL, GAS & CONSUMABLE FUELS — 2.66%
Qatar Gas Transport Co. Ltd.		281,472		1,313,343
				1,313,343
REAL ESTATE MANAGEMENT & DEVELOPMENT — 11.13%
Barwa Real Estate Co.		156,647		1,363,308
Ezdan Holding Group QSC		733,106		2,262,990
Mazaya Qatar Real Estate Development QSCa		150,160		408,262
National Leasing		69,501		246,033
United Development Co. QSC		292,397		1,218,170
				5,498,763
WIRELESS TELECOMMUNICATION SERVICES — 2.52%
Vodafone Qatar QSCa		544,609		1,241,402
				1,241,402
TOTAL COMMON STOCKS
(Cost: $56,180,245)				49,404,032
SHORT-TERM INVESTMENTS — 0.14%
MONEY MARKET FUNDS — 0.14%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		71,070		71,070
				71,070
TOTAL SHORT-TERM INVESTMENTS
(Cost: $71,070)				71,070
TOTAL INVESTMENTS IN SECURITIES — 100.17%
(Cost: $56,251,315)d				49,475,102
Other Assets, Less Liabilities — (0.17)%				(85,002	)
NET ASSETS — 100.00%			$	49,390,100

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $61,823,019. Net unrealized depreciation was $12,347,917, of which $310,851 represented gross unrealized appreciation on investments and $12,658,768 represented gross unrealized depreciation on investments.

SCHEDULES OF INVESTMENTS 59

Schedule of Investments (Continued)

iSHARES^® MSCI QATAR CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		65,229		5,841	b		—		71,070	$	71,070	$	20	$	—	$	1,222

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 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	$	49,404,032	$	—	$	—	$	49,404,032
Money market funds		71,070		—		—		71,070
Total	$	49,475,102	$	—	$	—	$	49,475,102

See notes to financial statements.

60 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SAUDI ARABIA CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.93%
BANKS — 36.18%
Al Rajhi Bank		107,557	$	1,910,111
Alinma Bank		100,486		452,565
Arab National Bank		47,948		311,709
Bank Al-Jazira		34,991		116,910
Bank AlBilad		40,145		206,602
Banque Saudi Fransi		49,540		409,773
National Commercial Bank		108,248		1,513,082
Riyad Bank		163,716		488,939
Samba Financial Group		125,117		808,046
Saudi British Bank (The)		30,720		212,244
Saudi Investment Bank (The)		48,465		193,591
				6,623,572
BUILDING PRODUCTS — 0.13%
Saudi Ceramic Co.		3,405		24,560
				24,560
CHEMICALS — 24.45%
Advanced Petrochemical Co.		13,205		158,311
Alujain Corp.		2,542		14,946
National Industrialization Co.a		44,861		166,994
Sahara Petrochemical Co.		29,543		104,774
Saudi Arabian Fertilizer Co.		25,582		413,997
Saudi Basic Industries Corp.		101,242		2,670,486
Saudi Industrial Investment Group		30,207		163,914
Saudi International Petrochemical Co.a		24,697		93,514
Saudi Kayan Petrochemical Co.a		100,728		228,036
Yanbu National Petrochemical Co.		30,693		461,271
				4,476,243
COMMERCIAL SERVICES & SUPPLIES — 0.63%
Saudi Airlines Catering Co.		5,058		115,330
				115,330
CONSTRUCTION MATERIALS — 3.51%
Arabian Cement Co./Saudi Arabia		6,709		57,247
City Cement Co.		12,702		37,054
Eastern Province Cement Co.		5,783		36,978
Najran Cement Co.a		11,525		28,734
Northern Region Cement Co.		12,170		30,829
Qassim Cement Co. (The)		6,008		72,461
Saudi Cement Co.		10,223		122,778
Southern Province Cement Co.		8,630		115,797
Yamama Cement Co.		13,594		60,028
Yanbu Cement Co.		10,593		81,096
				643,002

Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES — 0.20%
Aseer Trading Tourism & Manufacturing Co.		8,498	$	35,984
				35,984
DIVERSIFIED TELECOMMUNICATION SERVICES — 5.92%
Saudi Telecom Co.		54,173		1,084,269
				1,084,269
ELECTRIC UTILITIES — 3.90%
Saudi Electricity Co.		113,142		714,114
				714,114
FOOD PRODUCTS — 7.76%
Almarai Co.		38,670		840,796
Halwani Brothers Co.		1,605		20,543
National Agriculture Development Co. (The)a		5,657		43,428
Saudia Dairy & Foodstuff Co.		2,184		68,486
Savola Group (The)		35,774		446,722
				1,419,975
GAS UTILITIES — 0.23%
National Gas & Industrialization Co.		5,030		42,344
				42,344
HEALTH CARE PROVIDERS & SERVICES — 2.53%
Al Hammadi Development and Investment Co.a		8,037		74,601
Dallah Healthcare Holding Co.		3,649		106,643
Middle East Healthcare Co.		3,755		64,462
Mouwasat Medical Services Co.		3,346		143,772
National Medical Care Co.a		3,000		33,062
Saudi Chemical Co.		4,232		39,869
				462,409
HOTELS, RESTAURANTS & LEISURE — 1.25%
Abdul Mohsen Al-Hokair Tourism and Development Co.		3,046		24,887
Al Tayyar Travel Group Holding Co.		14,072		133,358
Dur Hospitality Co.		4,855		26,280
Herfy Food Services Co.		3,118		44,315
				228,840
INSURANCE — 2.37%
Al Rahjhi Co.a		2,095		30,317
Bupa Arabia for Cooperative Insurance Co.		5,349		167,764

SCHEDULES OF INVESTMENTS 61

Schedule of Investments (Continued)

iSHARES^® MSCI SAUDI ARABIA CAPPED ETF

August 31, 2017

Security	Shares		Value
Co for Cooperative Insurance (The)		8,373	$	216,548
Mediterranean & Gulf Insurance & Reinsurance Co. (The)a		5,644		19,384
				434,013
MEDIA — 0.47%
Saudi Research & Marketing Groupa		4,917		86,220
				86,220
METALS & MINING — 4.32%
Al Yamamah Steel Industries		2,344		15,101
Saudi Arabian Mining Co.a		55,589		747,076
Zamil Industrial Investment Co.		4,063		28,158
				790,335
OIL, GAS & CONSUMABLE FUELS — 0.56%
Rabigh Refining & Petrochemical Co.a		30,105		102,111
				102,111
PHARMACEUTICALS — 0.40%
Saudi Pharmaceutical Industries & Medical Appliances Corp.		8,023		73,273
				73,273
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.53%
Arriyadh Development Co.		8,991		45,072
Emaar Economic Citya		57,093		220,443
Red Sea Housing Services Co.		2,912		14,187
				279,702
ROAD & RAIL — 0.33%
Saudi Public Transport Co.		8,459		32,999
United International Transportation Co.		4,822		27,465
				60,464
SPECIALTY RETAIL — 1.50%
Jarir Marketing Co.		6,042		241,844

Security	Shares		Value
Saudi Co. For Hardware LLC		1,163	$	33,366
				275,210
WIRELESS TELECOMMUNICATION SERVICES — 1.76%
Etihad Etisalat Co.a		51,695		238,887
Mobile Telecommunications Co.a		35,827		83,401
				322,288
TOTAL COMMON STOCKS
(Cost: $17,660,885)				18,294,258
SHORT-TERM INVESTMENTS — 0.03%
MONEY MARKET FUNDS — 0.03%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		4,706		4,706
				4,706
TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,706)				4,706
TOTAL INVESTMENTS IN SECURITIES — 99.96%
(Cost: $17,665,591)d				18,298,964
Other Assets, Less Liabilities — 0.04%				7,411
NET ASSETS — 100.00%			$	18,306,375

^a  Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $17,751,030. Net unrealized appreciation was $547,934, of which $1,081,813 represented gross unrealized appreciation on investments and $533,879 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		1,845		2,861	b		—		4,706	$	4,706	$	—	$	—	$	49

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

62 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SAUDI ARABIA CAPPED ETF

August 31, 2017

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 August 31, 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	$	18,294,258	$	—	$	—	$	18,294,258
Money market funds		4,706		—		—		4,706
Total	$	18,298,964	$	—	$	—	$	18,298,964

See notes to financial statements.

SCHEDULES OF INVESTMENTS 63

Schedule of Investments

iSHARES^® MSCI UAE CAPPED ETF

August 31, 2017

Security	Shares		Value
COMMON STOCKS — 99.94%
AIRLINES — 2.02%
Air Arabia PJSC		3,284,476	$	1,001,501
				1,001,501
BANKS — 20.95%
Abu Dhabi Commercial Bank PJSC		1,125,157		2,236,162
Ajman Bank PJSCa		1,663,629		525,390
Dubai Islamic Bank PJSC		1,254,791		2,080,444
First Abu Dhabi Bank PJSC		1,412,230		3,998,582
Union National Bank PJSC		1,358,981		1,565,024
				10,405,602
BUILDING PRODUCTS — 0.99%
National Central Cooling Co. PJSC		853,460		490,267
				490,267
CAPITAL MARKETS — 5.63%
Amanat Holdings PJSC		2,112,276		638,324
Dubai Financial Market PJSCa		2,910,435		895,372
Dubai Investments PJSC		1,991,659		1,263,392
				2,797,088
CONSTRUCTION & ENGINEERING — 3.08%
Arabtec Holding PJSCa		1,009,513		879,486
Orascom Construction Ltd.a		103,459		651,792
				1,531,278
DIVERSIFIED FINANCIAL SERVICES — 2.90%
Al Waha Capital PJSC		1,519,603		728,132
Gulf General Investment Co.a		3,193,041		320,773
SHUAA Capital PSCa		1,191,211		392,411
				1,441,316
DIVERSIFIED TELECOMMUNICATION SERVICES — 17.58%
Emirates Telecommunications Group Co. PJSC		1,781,307		8,729,282
				8,729,282
ENERGY EQUIPMENT & SERVICES — 1.14%
Lamprell PLCa		441,293		568,628
				568,628
FOOD PRODUCTS — 0.97%
Agthia Group PJSC		320,510		479,923
				479,923
HEALTH CARE PROVIDERS & SERVICES — 5.04%
NMC Health PLC		71,595		2,504,689
				2,504,689

Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 1.93%
DXB Entertainments PJSCa		4,485,207	$	958,560
				958,560
OIL, GAS & CONSUMABLE FUELS — 1.78%
Dana Gas PJSCa		5,065,977		882,695
				882,695
REAL ESTATE MANAGEMENT & DEVELOPMENT — 30.30%
Aldar Properties PJSC		3,417,560		2,149,292
DAMAC Properties Dubai Co. PJSC		2,082,553		2,290,576
Deyaar Development PJSCa		1,074,452		152,695
Emaar Malls PJSC		1,815,309		1,215,774
Emaar Properties PJSC		3,586,559		8,299,734
Eshraq Properties Co. PJSCa		2,053,961		486,495
RAK Properties PJSC		2,484,228		453,141
				15,047,707
THRIFTS & MORTGAGE FINANCE — 0.95%
Amlak Finance PJSCa		1,537,816		473,097
				473,097
TRANSPORTATION INFRASTRUCTURE — 4.68%
DP World Ltd.		101,220		2,321,987
				2,321,987
TOTAL COMMON STOCKS
(Cost: $46,528,290)				49,633,620
SHORT-TERM INVESTMENTS — 0.09%
MONEY MARKET FUNDS — 0.09%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%b,c		46,566		46,566
				46,566
TOTAL SHORT-TERM INVESTMENTS
(Cost: $46,566)				46,566

64 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI UAE CAPPED ETF

August 31, 2017

	Value
TOTAL INVESTMENTS IN SECURITIES — 100.03%
(Cost: $46,574,856)d	$	49,680,186
Other Assets, Less Liabilities — (0.03)%		(16,979	)
NET ASSETS — 100.00%	$	49,663,207

^a Non-income earning security.

^b  Affiliated issuer. See Schedule 1.

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

^d  The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $54,372,841. Net unrealized depreciation was $4,692,655, of which $5,705,258 represented gross unrealized appreciation on investments and $10,397,913 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:

Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		42,509		4,057	b		—		46,566	$	46,566	$	2	$	—	$	400

^a  Includes realized capital gain distributions from an affiliated fund, if any.

^b  Net of shares purchased and sold.

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 August 31, 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	$	49,633,620	$	—	$	—	$	49,633,620
Money market funds		46,566		—		—		46,566
Total	$	49,680,186	$	—	$	—	$	49,680,186

See notes to financial statements.

SCHEDULES OF INVESTMENTS 65

Statements of Assets and Liabilities

iSHARES^® TRUST

August 31, 2017

	iShares MSCI All Peru Capped ETF			iShares MSCI Argentina and Global Exposure ETF			iShares MSCI Brazil Small-Cap ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	213,223,911		$	15,458,438		$	34,578,912
Affiliated (Note 2)		92,100			43,863			1,362
Total cost of investments in securities	$	213,316,011		$	15,502,301		$	34,580,274
Investments in securities, at fair value (Note 1):
Unaffiliated	$	170,823,940		$	15,408,951		$	62,020,097
Affiliated (Note 2)		92,100			43,863			1,362
Foreign currency, at valuea		64,570			33,769			170,719
Receivables:
Investment securities sold		4,300,918			969,804			254,900
Dividends and interest		29,215			11,009			205,590
Tax reclaims		—			68			—
Total Assets		175,310,743			16,467,464			62,652,668
LIABILITIES
Payables:
Investment securities purchased		4,428,630			955,663			307,052
Capital shares redeemed		1,005			—			—
Foreign taxes (Note 1)		199			5,700			—
Deferred foreign capital gains taxes (Note 1)		—			70,010			—
Investment advisory fees (Note 2)		87,019			8,255			29,966
Total Liabilities		4,516,853			1,039,628			337,018
NET ASSETS	$	170,793,890		$	15,427,836		$	62,315,650
Net assets consist of:
Paid-in capital	$	300,198,712		$	15,604,385		$	83,514,391
Undistributed (distributions in excess of) net investment income		(209,986	)		425,301			(143,648	)
Accumulated net realized loss		(86,795,156	)		(482,510	)		(48,499,438	)
Net unrealized appreciation (depreciation)		(42,399,680	)		(119,340	)		27,444,345
NET ASSETS	$	170,793,890		$	15,427,836		$	62,315,650
Shares outstandingb		4,550,000			600,000			3,850,000
Net asset value per share	$	37.54		$	25.71		$	16.19

^a  Cost of foreign currency: $64,091, $33,646 and $170,159, respectively.

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

See notes to financial statements.

66 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares MSCI China ETF			iShares MSCI China Small-Cap ETF			iShares MSCI Indonesia ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	2,016,674,889		$	22,439,850		$	548,795,871
Affiliated (Note 2)		374,364,501			6,254,767			146,022
Total cost of investments in securities	$	2,391,039,390		$	28,694,617		$	548,941,893
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	2,583,043,677		$	21,709,052		$	500,938,026
Affiliated (Note 2)		374,421,438			6,256,265			146,022
Foreign currency, at valueb		10,325,225			29,299			340,665
Foreign currency pledged to broker for futures contracts, at valueb		547,886			—			—
Receivables:
Investment securities sold		6,753,237			36,192			2,502,266
Dividends and interest		6,562,012			71,409			47,082
Total Assets		2,981,653,475			28,102,217			503,974,061
LIABILITIES
Payables:
Investment securities purchased		12,029,882			20,287			2,303,744
Collateral for securities on loan (Note 1)		373,803,782			6,246,223			—
Capital shares redeemed		157,421			—			—
Futures variation margin		64,945			—			—
Investment advisory fees (Note 2)		1,350,159			10,871			259,230
Total Liabilities		387,406,189			6,277,381			2,562,974
NET ASSETS	$	2,594,247,286		$	21,824,836		$	501,411,087
Net assets consist of:
Paid-in capital	$	2,252,481,282		$	27,428,857		$	615,923,584
Undistributed (distributions in excess of) net investment income		28,186,450			(5,085	)		(46,890	)
Accumulated net realized loss		(252,872,001	)		(4,869,588	)		(66,607,242	)
Net unrealized appreciation (depreciation)		566,451,555			(729,348	)		(47,858,365	)
NET ASSETS	$	2,594,247,286		$	21,824,836		$	501,411,087
Shares outstandingc		41,800,000			450,000			18,650,000
Net asset value per share	$	62.06		$	48.50		$	26.89

^a  Securities on loan with values of $363,489,817, $5,411,010 and $  —, respectively. See Note 1.

^b  Cost of foreign currency including currency pledged to broker for futures contracts, if any: $10,877,099, $29,303 and $341,148, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 67

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares MSCI Philippines ETF			iShares MSCI Poland Capped ETF			iShares MSCI Qatar Capped ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	196,521,985		$	349,831,520		$	56,180,245
Affiliated (Note 2)		36,088			6,288,195			71,070
Total cost of investments in securities	$	196,558,073		$	356,119,715		$	56,251,315
Investments in securities, at fair value (including securities on loana) (Note 1):
Unaffiliated	$	171,554,169		$	363,160,286		$	49,404,032
Affiliated (Note 2)		36,088			6,289,789			71,070
Foreign currency, at valueb		417,596			429,425			—
Receivables:
Investment securities sold		1,904,198			1,140,029			1,799,879
Dividends and interest		267,010			71,059			120
Total Assets		174,179,061			371,090,588			51,275,101
LIABILITIES
Payables:
Investment securities purchased		1,842,195			1,158,579			1,858,815
Collateral for securities on loan (Note 1)		—			6,184,065			—
Professional fees (Note 8)		—			33,437			—
Investment advisory fees (Note 2)		92,049			177,827			26,186
Total Liabilities		1,934,244			7,553,908			1,885,001
NET ASSETS	$	172,244,817		$	363,536,680		$	49,390,100
Net assets consist of:
Paid-in capital	$	232,516,463		$	400,397,438		$	70,349,334
Undistributed (distributions in excess of) net investment income		(17,537	)		2,749,100			1,276
Accumulated net realized loss		(35,285,180	)		(52,945,046	)		(14,184,560	)
Net unrealized appreciation (depreciation)		(24,968,929	)		13,335,188			(6,775,950	)
NET ASSETS	$	172,244,817		$	363,536,680		$	49,390,100
Shares outstandingc		4,800,000			13,300,000			3,050,000
Net asset value per share	$	35.88		$	27.33		$	16.19

^a  Securities on loan with values of $  —, $5,931,877 and $  —, respectively. See Note 1.

^b  Cost of foreign currency: $419,011, $426,643 and $  —, respectively.

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

See notes to financial statements.

68 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^® TRUST

August 31, 2017

	iShares MSCI Saudi Arabia Capped ETF			iShares MSCI UAE Capped ETF
ASSETS
Investments in securities, at cost:
Unaffiliated	$	17,660,885		$	46,528,290
Affiliated (Note 2)		4,706			46,566
Total cost of investments in securities	$	17,665,591		$	46,574,856
Investments in securities, at fair value (Note 1):
Unaffiliated	$	18,294,258		$	49,633,620
Affiliated (Note 2)		4,706			46,566
Foreign currency, at valuea		59,782			6,074
Receivables:
Investment securities sold		48,579			589,706
Dividends and interest		5,440			29
Total Assets		18,412,765			50,275,995
LIABILITIES
Payables:
Investment securities purchased		95,033			587,477
Investment advisory fees (Note 2)		11,357			25,311
Total Liabilities		106,390			612,788
NET ASSETS	$	18,306,375		$	49,663,207
Net assets consist of:
Paid-in capital	$	17,756,677		$	66,009,749
Undistributed (distributions in excess of) net investment income		188,633			(240,907	)
Accumulated net realized loss		(272,308	)		(19,210,954	)
Net unrealized appreciation		633,373			3,105,319
NET ASSETS	$	18,306,375		$	49,663,207
Shares outstandingb		700,000			2,800,000
Net asset value per share	$	26.15		$	17.74

^a  Cost of foreign currency: $59,782 and $6,071, respectively.

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

See notes to financial statements.

FINANCIAL STATEMENTS 69

Statements of Operations

iSHARES^® TRUST

Year ended August 31, 2017

	iShares MSCI All Peru Capped ETF			iShares MSCI Argentina and Global Exposure ETFa			iShares MSCI Brazil Small-Cap ETF
NET INVESTMENT INCOME
Dividends — unaffiliatedb	$	4,181,905		$	38,766		$	1,744,892
Dividends — affiliated (Note 2)		1,254			76			161
Total investment income		4,183,159			38,842			1,745,053
EXPENSES
Investment advisory fees (Note 2)		1,298,945			24,707			318,008
Proxy fees		4,643			55			1,314
Total expenses		1,303,588			24,762			319,322
Net investment income		2,879,571			14,080			1,425,731
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliatedc		(2,807,888	)		(64,797	)		(2,152,996	)
In-kind redemptions — unaffiliated		15,379,815			189,110			—
Foreign currency transactions		(13,626	)		328			(19,831	)
Realized gain distributions from affiliated funds		29			—			—
Net realized gain (loss)		12,558,330			124,641			(2,172,827	)
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliatedd		12,192,175			(119,497	)		18,266,472
Translation of assets and liabilities in foreign currencies		6,406			157			(2,410	)
Net change in unrealized appreciation/depreciation		12,198,581			(119,340	)		18,264,062
Net realized and unrealized gain		24,756,911			5,301			16,091,235
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	27,636,482		$	19,381		$	17,516,966

^a  For the period from April 25, 2017 (commencement of operations) to August 31, 2017.

^b Net of foreign withholding tax of $127,981, $1,578 and $83,636, respectively.

^c  Net of foreign capital gains taxes of $ —, $5,700 and $ —, respectively.

^d Net of deferred foreign capital gains taxes of $ —, $70,010 and $ —, respectively.

See notes to financial statements.

70 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares MSCI China ETF			iShares MSCI China Small- Cap ETF			iShares MSCI Indonesia ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	52,004,401		$	451,755		$	9,714,779
Dividends — affiliated (Note 2)		11,586			154			1,438
Securities lending income — affiliated — net (Note 2)		1,861,828			220,282			—
Total investment income		53,877,815			672,191			9,716,217
EXPENSES
Investment advisory fees (Note 2)		14,298,287			123,953			3,257,735
Proxy fees		49,853			440			11,400
Total expenses		14,348,140			124,393			3,269,135
Net investment income		39,529,675			547,798			6,447,082
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(33,976,601	)		(8,384	)		(12,641,511	)
Investments — affiliated (Note 2)		32,814			98			—
In-kind redemptions — unaffiliated		126,855,444			—			38,867,715
Futures contracts		2,543,059			—			—
Foreign currency transactions		(104,996	)		(409	)		1,693
Realized gain distributions from affiliated funds		122			2			3
Net realized gain (loss)		95,349,842			(8,693	)		26,227,900
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		561,144,412			2,353,983			(15,952,498	)
Investments — affiliated (Note 2)		56,937			1,498			—
Futures contracts		10,591			—			—
Translation of assets and liabilities in foreign currencies		(2,284	)		40			4,109
Net change in unrealized appreciation/depreciation		561,209,656			2,355,521			(15,948,389	)
Net realized and unrealized gain		656,559,498			2,346,828			10,279,511
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	696,089,173		$	2,894,626		$	16,726,593

^a  Net of foreign withholding tax of $4,557,984, $7,164 and $1,746,492, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 71

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares MSCI Philippines ETF			iShares MSCI Poland Capped ETF			iShares MSCI Qatar Capped ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	1,899,035		$	5,792,351		$	1,679,983
Dividends — affiliated (Note 2)		614			843			1,222
Securities lending income — affiliated — net (Note 2)		—			431,509			—
Foreign withholding tax claims (Note 8)		—			377,598			—
Total investment income		1,899,649			6,602,301			1,681,205
EXPENSES
Investment advisory fees (Note 2)		1,131,578			1,498,182			281,769
Proxy fees		4,136			6,265			960
Professional fees (Note 8)		—			37,954			—
Total expenses		1,135,714			1,542,401			282,729
Net investment income		763,935			5,059,900			1,398,476
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(6,638,294	)		(10,848,308	)		(5,340,861	)
Investments — affiliated (Note 2)		—			6,755			—
In-kind redemptions — unaffiliated		(3,668,515	)		11,357,085			—
Foreign currency transactions		(47,836	)		43,185			127,984
Realized gain distributions from affiliated funds		14			11			20
Net realized gain (loss)		(10,354,631	)		558,728			(5,212,857	)
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		(13,316,365	)		107,278,210			(4,435,138	)
Investments — affiliated (Note 2)		—			1,594			—
Translation of assets and liabilities in foreign currencies		(4,879	)		34,058			263
Net change in unrealized appreciation/depreciation		(13,321,244	)		107,313,862			(4,434,875	)
Net realized and unrealized gain (loss)		(23,675,875	)		107,872,590			(9,647,732	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(22,911,940	)	$	112,932,490		$	(8,249,256	)

^a  Net of foreign withholding tax of $813,872, $1,021,960 and $  —, respectively.

See notes to financial statements.

72 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^® TRUST

Year ended August 31, 2017

	iShares MSCI Saudi Arabia Capped ETF			iShares MSCI UAE Capped ETF
NET INVESTMENT INCOME
Dividends — unaffiliateda	$	369,201		$	1,547,782
Dividends — affiliated (Note 2)		49			400
Total investment income		369,250			1,548,182
EXPENSES
Investment advisory fees (Note 2)		61,727			267,537
Proxy fees		188			917
Total expenses		61,915			268,454
Net investment income		307,335			1,279,728
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(104,574	)		(2,405,998	)
In-kind redemptions — unaffiliated		—			78,754
Foreign currency transactions		(1,812	)		(7,743	)
Realized gain distributions from affiliated funds		—			2
Net realized loss		(106,386	)		(2,334,985	)
Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		1,176,934			4,117,351
Translation of assets and liabilities in foreign currencies		—			(17	)
Net change in unrealized appreciation/depreciation		1,176,934			4,117,334
Net realized and unrealized gain		1,070,548			1,782,349
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,377,883		$	3,062,077

^a  Net of foreign withholding tax of $14,745 and $  —, respectively.

See notes to financial statements.

FINANCIAL STATEMENTS 73

Statements of Changes in Net Assets

iSHARES^® TRUST

	iShares MSCI All Peru Capped ETF						iShares MSCI Argentina and Global Exposure ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Period from April 25, 2017a to August 31, 2017
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	2,879,571		$	1,962,364		$	14,080
Net realized gain (loss)		12,558,330			(35,986,513	)		124,641
Net change in unrealized appreciation/depreciation		12,198,581			97,072,346			(119,340	)
Net increase in net assets resulting from operations		27,636,482			63,048,197			19,381
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,701,557	)		(2,162,091	)		(6,820	)
Total distributions to shareholders		(3,701,557	)		(2,162,091	)		(6,820	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		35,886,517			72,962,118			20,526,410
Cost of shares redeemed		(107,053,238	)		(47,417,453	)		(5,111,135	)
Net increase (decrease) in net assets from capital share transactions		(71,166,721	)		25,544,665			15,415,275
INCREASE (DECREASE) IN NET ASSETS		(47,231,796	)		86,430,771			15,427,836
NET ASSETS
Beginning of period		218,025,686			131,594,915			—
End of period	$	170,793,890		$	218,025,686		$	15,427,836
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	(209,986	)	$	(46,398	)	$	425,301
SHARES ISSUED AND REDEEMED
Shares sold		1,050,000			2,650,000			800,000
Shares redeemed		(3,150,000	)		(1,700,000	)		(200,000	)
Net increase (decrease) in shares outstanding		(2,100,000	)		950,000			600,000

^a  Commencement of operations.

See notes to financial statements.

74 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI Brazil Small-Cap ETF						iShares MSCI China ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,425,731		$	798,488		$	39,529,675		$	42,733,390
Net realized gain (loss)		(2,172,827	)		(11,331,557	)		95,349,842			(178,902,815	)
Net change in unrealized appreciation/depreciation		18,264,062			22,414,456			561,209,656			267,731,484
Net increase in net assets resulting from operations		17,516,966			11,881,387			696,089,173			131,562,059
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,601,858	)		(679,799	)		(29,342,450	)		(41,167,086	)
Total distributions to shareholders		(1,601,858	)		(679,799	)		(29,342,450	)		(41,167,086	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		16,706,722			14,888,226			312,129,183			351,971,009
Cost of shares redeemed		(20,393,245	)		(3,192,180	)		(484,619,997	)		(157,677,223	)
Net increase (decrease) in net assets from capital share transactions		(3,686,523	)		11,696,046			(172,490,814	)		194,293,786
INCREASE IN NET ASSETS		12,228,585			22,897,634			494,255,909			284,688,759
NET ASSETS
Beginning of year		50,087,065			27,189,431			2,099,991,377			1,815,302,618
End of year	$	62,315,650		$	50,087,065		$	2,594,247,286		$	2,099,991,377
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(143,648	)	$	(111,469	)	$	28,186,450		$	17,863,598
SHARES ISSUED AND REDEEMED
Shares sold		1,200,000			1,450,000			6,400,000			7,800,000
Shares redeemed		(1,700,000	)		(450,000	)		(9,400,000	)		(3,800,000	)
Net increase (decrease) in shares outstanding		(500,000	)		1,000,000			(3,000,000	)		4,000,000

See notes to financial statements.

FINANCIAL STATEMENTS 75

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI China Small-Cap ETF						iShares MSCI Indonesia ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	547,798		$	648,162		$	6,447,082		$	6,068,963
Net realized gain (loss)		(8,693	)		(2,613,330	)		26,227,900			(36,634,508	)
Net change in unrealized appreciation/depreciation		2,355,521			4,304,580			(15,948,389	)		131,755,013
Net increase in net assets resulting from operations		2,894,626			2,339,412			16,726,593			101,189,468
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(775,895	)		(768,088	)		(6,469,991	)		(5,726,092	)
Return of capital		—			—			—			(324,115	)
Total distributions to shareholders		(775,895	)		(768,088	)		(6,469,991	)		(6,050,207	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		—			1,041			158,333,457			618,736,023
Cost of shares redeemed		—			(6,512,739	)		(369,376,936	)		(280,057,830	)
Net increase (decrease) in net assets from capital share transactions		—			(6,511,698	)		(211,043,479	)		338,678,193
INCREASE (DECREASE) IN NET ASSETS		2,118,731			(4,940,374	)		(200,786,877	)		433,817,454
NET ASSETS
Beginning of year		19,706,105			24,646,479			702,197,964			268,380,510
End of year	$	21,824,836		$	19,706,105		$	501,411,087		$	702,197,964
Distributions in excess of net investment income included in net assets at end of year	$	(5,085	)	$	(2,599	)	$	(46,890	)	$	(62,658	)
SHARES ISSUED AND REDEEMED
Shares sold		—			—			6,150,000			27,200,000
Shares redeemed		—			(150,000	)		(14,700,000	)		(13,300,000	)
Net increase (decrease) in shares outstanding		—			(150,000	)		(8,550,000	)		13,900,000

See notes to financial statements.

76 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI Philippines ETF						iShares MSCI Poland Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	763,935		$	1,581,916		$	5,059,900		$	3,948,549
Net realized gain (loss)		(10,354,631	)		2,294,809			558,728			(24,759,076	)
Net change in unrealized appreciation/depreciation		(13,321,244	)		20,746,387			107,313,862			(13,598,460	)
Net increase (decrease) in net assets resulting from operations		(22,911,940	)		24,623,112			112,932,490			(34,408,987	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,008,827	)		(2,096,978	)		(4,649,179	)		(2,589,910	)
Total distributions to shareholders		(1,008,827	)		(2,096,978	)		(4,649,179	)		(2,589,910	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		60,308,205			217,152,095			170,932,433			108,806,967
Cost of shares redeemed		(181,545,734	)		(188,547,640	)		(95,416,457	)		(85,638,124	)
Net increase (decrease) in net assets from capital share transactions		(121,237,529	)		28,604,455			75,515,976			23,168,843
INCREASE (DECREASE) IN NET ASSETS		(145,158,296	)		51,130,589			183,799,287			(13,830,054	)
NET ASSETS
Beginning of year		317,403,113			266,272,524			179,737,393			193,567,447
End of year	$	172,244,817		$	317,403,113		$	363,536,680		$	179,737,393
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(17,537	)	$	19,665		$	2,749,100		$	1,994,555
SHARES ISSUED AND REDEEMED
Shares sold		1,750,000			5,900,000			8,250,000			5,750,000
Shares redeemed		(5,050,000	)		(5,300,000	)		(4,900,000	)		(4,750,000	)
Net increase (decrease) in shares outstanding		(3,300,000	)		600,000			3,350,000			1,000,000

See notes to financial statements.

FINANCIAL STATEMENTS 77

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI Qatar Capped ETF						iShares MSCI Saudi Arabia Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Period from September 16, 2015a to August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,398,476		$	1,549,144		$	307,335		$	156,479
Net realized loss		(5,212,857	)		(4,086,778	)		(106,386	)		(168,175	)
Net change in unrealized appreciation/depreciation		(4,434,875	)		1,313,485			1,176,934			(543,561	)
Net increase (decrease) in net assets resulting from operations		(8,249,256	)		(1,224,149	)		1,377,883			(555,257	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,458,378	)		(1,597,151	)		(169,819	)		(103,109	)
Return of capital		—			(37,823	)		—			—
Total distributions to shareholders		(1,458,378	)		(1,634,974	)		(169,819	)		(103,109	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		19,964,765			19,039,707			12,793,748			4,962,929
Cost of shares redeemed		(14,353,080	)		(7,694,517	)		—			—
Net increase in net assets from capital share transactions		5,611,685			11,345,190			12,793,748			4,962,929
INCREASE (DECREASE) IN NET ASSETS		(4,095,949	)		8,486,067			14,001,812			4,304,563
NET ASSETS
Beginning of period		53,486,049			44,999,982			4,304,563			—
End of period	$	49,390,100		$	53,486,049		$	18,306,375		$	4,304,563
Undistributed (distributions in excess of) net investment income included in net assets at end of period	$	1,276		$	(66,825	)	$	188,633		$	52,929
SHARES ISSUED AND REDEEMED
Shares sold		1,150,000			950,000			500,000			200,000
Shares redeemed		(750,000	)		(400,000	)		—			—
Net increase in shares outstanding		400,000			550,000			500,000			200,000

^a  Commencement of operations.

See notes to financial statements.

78 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^® TRUST

	iShares MSCI UAE Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income	$	1,279,728		$	1,196,775
Net realized loss		(2,334,985	)		(5,536,914	)
Net change in unrealized appreciation/depreciation		4,117,334			3,815,414
Net increase (decrease) in net assets resulting from operations		3,062,077			(524,725	)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,550,737	)		(1,213,587	)
Total distributions to shareholders		(1,550,737	)		(1,213,587	)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		11,974,524			20,543,971
Cost of shares redeemed		(4,978,554	)		(8,821,510	)
Net increase in net assets from capital share transactions		6,995,970			11,722,461
INCREASE IN NET ASSETS		8,507,310			9,984,149
NET ASSETS
Beginning of year		41,155,897			31,171,748
End of year	$	49,663,207		$	41,155,897
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(240,907	)	$	30,133
SHARES ISSUED AND REDEEMED
Shares sold		700,000			1,200,000
Shares redeemed		(300,000	)		(500,000	)
Net increase in shares outstanding		400,000			700,000

See notes to financial statements.

FINANCIAL STATEMENTS 79

Financial Highlights

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI All Peru Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	32.79		$	23.09		$	36.60		$	33.90		$	41.33
Income from investment operations:
Net investment incomea		0.46			0.33			0.36			0.45			0.94
Net realized and unrealized gain (loss)b		4.99			9.73			(13.48	)		2.73			(7.07	)
Total from investment operations		5.45			10.06			(13.12	)		3.18			(6.13	)
Less distributions from:
Net investment income		(0.70	)		(0.36	)		(0.39	)		(0.48	)		(1.30	)
Total distributions		(0.70	)		(0.36	)		(0.39	)		(0.48	)		(1.30	)
Net asset value, end of year	$	37.54		$	32.79		$	23.09		$	36.60		$	33.90
Total return		16.89	%		44.13	%		(36.15	)%		9.50	%		(15.36	)%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	170,794		$	218,026		$	131,595		$	252,539		$	313,565
Ratio of expenses to average net assets		0.62	%		0.63	%		0.61	%		0.51	%		0.51	%
Ratio of expenses to average net assets prior to waived fees		n/a			n/a			0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		1.37	%		1.23	%		1.15	%		1.33	%		2.24	%
Portfolio turnover ratec		13	%		22	%		21	%		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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017 and August 31, 2016 were 12% and 22%, respectively. See Note 4.

See notes to financial statements.

80 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout the period)

	iShares MSCI Argentina and Global Exposure ETF
	Period from Apr. 25, 2017a to Aug. 31, 2017
Net asset value, beginning of period	$	25.23
Income from investment operations:
Net investment incomeb		0.03
Net realized and unrealized gainc		0.46
Total from investment operations		0.49
Less distributions from:
Net investment income		(0.01	)
Total distributions		(0.01	)
Net asset value, end of period	$	25.71
Total return		2.00	%d
Ratios/Supplemental data:
Net assets, end of period (000s)	$	15,428
Ratio of expenses to average net assetse		0.59	%
Ratio of net investment income to average net assetse		0.34	%
Portfolio turnover ratef		17	%d

^a  Commencement of operations.

^b  Based on average shares outstanding throughout the period.

^c  The amount 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 rate excludes 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 MSCI Brazil Small-Cap ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	11.51		$	8.12		$	21.00		$	19.78		$	25.65
Income from investment operations:
Net investment incomea		0.36			0.24			0.37			0.47			0.32
Net realized and unrealized gain (loss)b		4.74			3.35			(12.85	)		1.13			(5.59	)
Total from investment operations		5.10			3.59			(12.48	)		1.60			(5.27	)
Less distributions from:
Net investment income		(0.42	)		(0.20	)		(0.40	)		(0.38	)		(0.43	)
Return of capital		—			—			(0.00	)c		—			(0.17	)
Total distributions		(0.42	)		(0.20	)		(0.40	)		(0.38	)		(0.60	)
Net asset value, end of year	$	16.19		$	11.51		$	8.12		$	21.00		$	19.78
Total return		45.92	%		45.17	%		(60.01	)%		8.18	%		(21.00	)%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	62,316		$	50,087		$	27,189		$	40,951		$	34,608
Ratio of expenses to average net assets		0.62	%		0.63	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		2.76	%		2.77	%		2.87	%		2.36	%		1.25	%
Portfolio turnover rated		58	%		38	%		172	%		40	%		51	%

^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  Rounds to less than $0.01.

^d  Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 26%, 28%, 39%, 35% and 39%, respectively. See Note 4.

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 MSCI China ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	46.87		$	44.49		$	50.34		$	43.90		$	39.68
Income from investment operations:
Net investment incomea		0.86			0.97			1.41			1.15			1.36
Net realized and unrealized gain (loss)b		14.94			2.34			(6.21	)		6.24			3.88
Total from investment operations		15.80			3.31			(4.80	)		7.39			5.24
Less distributions from:
Net investment income		(0.61	)		(0.93	)		(1.05	)		(0.95	)		(1.02	)
Total distributions		(0.61	)		(0.93	)		(1.05	)		(0.95	)		(1.02	)
Net asset value, end of year	$	62.06		$	46.87		$	44.49		$	50.34		$	43.90
Total return		34.13	%		7.63	%		(9.86	)%		17.03	%		13.40	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	2,594,247		$	2,099,991		$	1,815,303		$	1,132,558		$	856,075
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		1.70	%		2.24	%		2.65	%		2.48	%		3.02	%
Portfolio turnover ratec		6	%		27	%		14	%		7	%		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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015 and August 31, 2014 were 6%, 27%, 14% and 7%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 83

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI China Small-Cap ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	43.79		$	41.08		$	48.30		$	41.98		$	32.15
Income from investment operations:
Net investment incomea		1.22			1.25			1.24			1.09			1.07
Net realized and unrealized gain (loss)b		5.21			2.99			(7.18	)		6.55			9.87
Total from investment operations		6.43			4.24			(5.94	)		7.64			10.94
Less distributions from:
Net investment income		(1.72	)		(1.53	)		(1.28	)		(1.32	)		(1.11	)
Total distributions		(1.72	)		(1.53	)		(1.28	)		(1.32	)		(1.11	)
Net asset value, end of year	$	48.50		$	43.79		$	41.08		$	48.30		$	41.98
Total return		15.29	%		10.50	%		(12.94	)%		18.46	%		34.30	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	21,825		$	19,706		$	24,646		$	33,808		$	31,487
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		2.72	%		2.95	%		2.44	%		2.38	%		2.60	%
Portfolio turnover ratec		26	%		31	%		35	%		33	%		27	%

^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 in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 26%, 31%, 32%, 33% and 27%, respectively. See Note 4.

See notes to financial statements.

84 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Indonesia ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	25.82		$	20.18		$	28.54		$	24.78		$	28.49
Income from investment operations:
Net investment incomea		0.31			0.34			0.31			0.37			0.53
Net realized and unrealized gain (loss)b		1.11			5.59			(8.29	)		3.75			(3.77	)
Total from investment operations		1.42			5.93			(7.98	)		4.12			(3.24	)
Less distributions from:
Net investment income		(0.35	)		(0.27	)		(0.38	)		(0.36	)		(0.47	)
Return of capital		—			(0.02	)		—			—			—
Total distributions		(0.35	)		(0.29	)		(0.38	)		(0.36	)		(0.47	)
Net asset value, end of year	$	26.89		$	25.82		$	20.18		$	28.54		$	24.78
Total return		5.53	%		29.59	%		(28.13	)%		16.79	%		(11.67	)%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	501,411		$	702,198		$	268,381		$	576,411		$	392,769
Ratio of expenses to average net assets		0.62	%		0.63	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		1.22	%		1.47	%		1.16	%		1.41	%		1.67	%
Portfolio turnover ratec		6	%		5	%		4	%		8	%		15	%

^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 85

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Philippines ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	39.19		$	35.50		$	38.19		$	31.93		$	29.37
Income from investment operations:
Net investment incomea		0.15			0.21			0.34			0.35			0.42
Net realized and unrealized gain (loss)b		(3.26	)		3.74			(2.70	)		6.22			2.47
Total from investment operations		(3.11	)		3.95			(2.36	)		6.57			2.89
Less distributions from:
Net investment income		(0.20	)		(0.26	)		(0.33	)		(0.31	)		(0.33	)
Total distributions		(0.20	)		(0.26	)		(0.33	)		(0.31	)		(0.33	)
Net asset value, end of year	$	35.88		$	39.19		$	35.50		$	38.19		$	31.93
Total return		(7.87	)%		11.19	%		(6.21	)%		20.53	%c		9.81	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	172,245		$	317,403		$	266,273		$	351,313		$	277,824
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		0.42	%		0.58	%		0.85	%		1.02	%		1.14	%
Portfolio turnover rated		7	%		10	%		12	%		24	%		23	%

^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  The total return disclosed is based on the net asset value (“NAV”) calculated daily for the creation and redemption of shares in the Fund, which may differ from the NAV calculated for financial reporting purposes. Based on the NAV calculated for financial reporting purposes, the total return for the Fund was 20.63%.

^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.

86 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Poland Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	18.06		$	21.63		$	28.02		$	27.12		$	24.31
Income from investment operations:
Net investment incomea		0.45	b		0.42			0.65			0.84			0.74
Net realized and unrealized gain (loss)c		9.25			(3.70	)		(6.25	)		1.04			2.94
Total from investment operations		9.70			(3.28	)		(5.60	)		1.88			3.68
Less distributions from:
Net investment income		(0.43	)		(0.29	)		(0.79	)		(0.98	)		(0.87	)
Total distributions		(0.43	)		(0.29	)		(0.79	)		(0.98	)		(0.87	)
Net asset value, end of year	$	27.33		$	18.06		$	21.63		$	28.02		$	27.12
Total return		54.79	%b		(15.17	)%		(20.31	)%		6.82	%		15.13	%
Ratios/Supplemental data:
Net assets, end of year (000s)	$	363,537		$	179,737		$	193,567		$	297,056		$	277,933
Ratio of expenses to average net assets		0.63	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 8)		0.62	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assets		2.07	%b		2.24	%		2.60	%		2.83	%		2.73	%
Portfolio turnover rated		6	%		10	%		17	%		10	%		21	%

^a  Based on average shares outstanding throughout each period.

^b  Reflects the positive effect of foreign withholding tax claims, net of the associated professional fees (See Note 8), which resulted in the following increases for the year ended August 31, 2017:

• Net investment income per share by $0.03

• Total return by 0.11%

• Ratio of net investment income to average net assets by 0.14%

^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 87

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Qatar Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Aug. 1, 2015 to Aug. 31, 2015a			Year ended Jul. 31, 2015			Period from Apr. 29, 2014b to Jul. 31, 2014
Net asset value, beginning of period	$	20.18		$	21.43		$	22.14		$	24.73		$	24.26
Income from investment operations:
Net investment income (loss)c		0.57			0.67			(0.01	)		0.70			(0.02	)
Net realized and unrealized gain (loss)d		(3.90	)		(1.24	)		(0.70	)		(2.44	)		0.49
Total from investment operations		(3.33	)		(0.57	)		(0.71	)		(1.74	)		0.47
Less distributions from:
Net investment income		(0.66	)		(0.66	)		—			(0.85	)		—
Return of capital		—			(0.02	)		—			—			—
Total distributions		(0.66	)		(0.68	)		—			(0.85	)		—
Net asset value, end of period	$	16.19		$	20.18		$	21.43		$	22.14		$	24.73
Total return		(16.52	)%		(2.32	)%		(3.21	)%e		(7.10	)%		1.94	%e
Ratios/Supplemental data:
Net assets, end of period (000s)	$	49,390		$	53,486		$	45,000		$	47,590		$	35,853
Ratio of expenses to average net assetsf		0.62	%		0.64	%		0.63	%		0.62	%		0.61	%
Ratio of net investment income (loss) to average net assetsf		3.05	%		3.44	%		(0.63	)%		2.94	%		(0.34	)%
Portfolio turnover rateg		47	%		29	%		5	%e		85	%		11	%e

^a  The Fund’s fiscal year-end was changed from July 31 to August 31.

^b  Commencement of operations.

^c  Based on average shares outstanding throughout each period.

^d  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.

^e  Not annualized.

^f  Annualized for periods of less than one year.

^g  Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, the period ended August 31, 2015, the year ended July 31, 2015 and the period ended July 31, 2014 were 20%, 12%, 2%, 37% and 0%, respectively. See Note 4.

See notes to financial statements.

88 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI Saudi Arabia Capped ETF
		Year ended Aug. 31, 2017			Period from Sep. 16, 2015a to Aug. 31, 2016
Net asset value, beginning of period		$	21.52		$	24.92
Income from investment operations:
Net investment incomeb			0.91			0.81
Net realized and unrealized gain (loss)c			4.24			(3.69	)
Total from investment operations			5.15			(2.88	)
Less distributions from:
Net investment income			(0.52	)		(0.52	)
Total distributions			(0.52	)		(0.52	)
Net asset value, end of period		$	26.15		$	21.52
Total return			24.06	%		(11.64	)%d
Ratios/Supplemental data:
Net assets, end of period (000s)		$	18,306		$	4,305
Ratio of expenses to average net assetse			0.74	%		0.74	%
Ratio of net investment income to average net assetse			3.68	%		3.71	%
Portfolio turnover ratef			21	%		17	%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 include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the year ended August 31, 2017 and the period ended August 31, 2016 were 21% and 17%, respectively. See Note 4.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 89

Financial Highlights (Continued)

iSHARES^® TRUST

(For a share outstanding throughout each period)

	iShares MSCI UAE Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Aug. 1, 2015 to Year ended Aug. 31, 2015a			Year ended Jul. 31, 2015			Period from Apr. 29, 2014b to Year ended Jul. 31, 2014
Net asset value, beginning of period	$	17.15		$	18.34		$	20.46		$	24.00		$	25.04
Income from investment operations:
Net investment income (loss)c		0.50			0.68	d		(0.01	)		1.01			0.01
Net realized and unrealized gain (loss)e		0.72			(1.19	)		(2.11	)		(3.56	)		(1.01	)
Total from investment operations		1.22			(0.51	)		(2.12	)		(2.55	)		(1.00	)
Less distributions from:
Net investment income		(0.63	)		(0.68	)		—			(0.99	)		(0.04	)
Total distributions		(0.63	)		(0.68	)		—			(0.99	)		(0.04	)
Net asset value, end of period	$	17.74		$	17.15		$	18.34		$	20.46		$	24.00
Total return		7.33	%		(2.66	)%		(10.36	)%f		(10.33	)%		(4.00	)%f
Ratios/Supplemental data:
Net assets, end of period (000s)	$	49,663		$	41,156		$	31,172		$	33,756		$	51,610
Ratio of expenses to average net assetsg		0.62	%		0.64	%		0.63	%		0.62	%		0.62	%
Ratio of net investment income (loss) to average net assetsg		2.94	%		4.09	%d		(0.76	)%		4.81	%		0.19	%
Portfolio turnover rateh		33	%		55	%		1	%f		72	%		22	%f

^a  The Fund’s fiscal year-end was changed from July 31 to August 31.

^b  Commencement of operations.

^c  Based on average shares outstanding throughout each period.

^d  Includes a special distribution from Mediclinic International PLC. Excluding such special distribution, the net investment income would have been $0.52 per share and 3.11% of average net assets.

^e  The amount 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.

^f  Not annualized.

^g  Annualized for periods of less than one year.

^h  Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, the period ended August 31, 2015, the year ended July 31, 2015 and the period ended July 31, 2014 were 23%, 29%, 1%, 38% and 1%, respectively. See Note 4.

See notes to financial statements.

90 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
MSCI All Peru Capped		Non-diversified
MSCI Argentina and Global Exposurea		Non-diversified
MSCI Brazil Small-Cap		Diversified
MSCI China		Non-diversified
MSCI China Small-Cap		Diversified
MSCI Indonesia		Non-diversified

iShares ETF	Diversification Classification
MSCI Philippines		Non-diversified
MSCI Poland Capped		Non-diversified
MSCI Qatar Capped		Non-diversified
MSCI Saudi Arabia Capped		Non-diversified
MSCI UAE Capped		Non-diversified

^a  The Fund commenced operations on April 25, 2017.

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.

NOTES TO FINANCIAL STATEMENTS 91

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”).

• Futures contract notional values are determined based on 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 inputs 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates. Valuations based on such inputs 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 to valuation techniques are categorized into a fair value 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.

92 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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iSHARES^® TRUST

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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 August 31, 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 as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash 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.

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. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax 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 August 31, 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.

NOTES TO FINANCIAL STATEMENTS 93

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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.

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 August 31, 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 August 31, 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, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original 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.

94 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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 August 31, 2017:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received  a		Net Amount
MSCI China
Barclays Capital Inc.	$	627,310	$	627,310	$	—
BNP Paribas Prime Brokerage International Ltd.		57,118,835		57,118,835		—
Citigroup Global Markets Inc.		43,808,046		43,808,046		—
Credit Suisse Securities (USA) LLC		1,691,314		1,691,314		—
Deutsche Bank Securities Inc.		10,670,010		10,670,010		—
Goldman Sachs & Co.		7,667,562		7,667,562		—
HSBC Bank PLC		68,763,470		68,763,470		—
Jefferies LLC		591,476		591,476		—
JPMorgan Securities LLC		6,820,576		6,820,576		—
Merrill Lynch, Pierce, Fenner & Smith		140,815,057		140,815,057		—
Morgan Stanley & Co. LLC		15,236,909		15,236,909		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		5,980,388		5,980,388		—
Nomura Securities International Inc.		1,345,311		1,345,311		—
Scotia Capital (USA) Inc.		248,952		248,952		—
State Street Bank & Trust Company		2,104,601		2,104,601		—
	$	363,489,817	$	363,489,817	$	—
MSCI China Small-Cap
Barclays Capital Inc.		134,252		134,252		—
Citigroup Global Markets Inc.		145,394		145,394		—
Credit Suisse Securities (USA) LLC		838,937		838,937		—
Deutsche Bank Securities Inc.		608,994		608,994		—
Goldman Sachs & Co.		496,069		496,069		—
JPMorgan Securities LLC		653,541		653,541		—
Merrill Lynch, Pierce, Fenner & Smith		827,773		827,773		—
Morgan Stanley & Co. LLC		544,591		544,591		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		113,314		113,314		—
Nomura Securities International Inc.		46,880		46,880		—
Scotia Capital (USA) Inc.		6,337		6,337		—
SG Americas Securities LLC		127,654		127,654		—
State Street Bank & Trust Company		168,833		168,833		—
UBS AG		495,262		495,262		—
UBS Securities LLC		203,179		203,179		—
	$	5,411,010	$	5,411,010	$	—
MSCI Poland Capped
Deutsche Bank Securities Inc.		206,412		206,412		—
Goldman Sachs & Co.		2,404,623		2,404,623		—
JPMorgan Securities LLC		21,492		21,492		—
Merrill Lynch, Pierce, Fenner & Smith		2,186,784		2,186,784		—
Morgan Stanley & Co. LLC		589,313		589,313		—
UBS AG		24,668		24,668		—
UBS Securities LLC		498,585		498,585		—
	$	5,931,877	$	5,931,877	$	—

^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.

NOTES TO FINANCIAL STATEMENTS 95

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 MSCI All Peru Capped, iShares MSCI Brazil Small-Cap, iShares MSCI China, iShares MSCI China Small-Cap, iShares MSCI Indonesia, iShares MSCI Philippines, iShares MSCI Poland Capped, iShares MSCI Qatar Capped and iShares MSCI UAE Capped 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
	0.74	%	First $2 billion
	0.69		Over $2 billion, up to and including $4 billion
	0.64		Over $4 billion, up to and including $8 billion
	0.57		Over $8 billion, up to and including $16 billion
	0.51		Over $16 billion, up to and including $24 billion
	0.48		Over $24 billion, up to and including $32 billion
	0.45		Over $32 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 Argentina and Global Exposure		0.59	%
MSCI Saudi Arabia Capped		0.74

The U.S. Securities and Exchange Commission 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 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 Fund, pursuant to a

96 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

securities lending agreement, will retain 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 August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:

iShares ETF	Fees Paid to BTC
MSCI China	$544,931
MSCI China Small-Cap	52,199
MSCI Poland Capped	100,450

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 August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI All Peru Capped	$	1,146,386	$	—
MSCI Argentina and Global Exposure		687,055		28,472
MSCI China		28,611,543		9,598,771
MSCI China Small-Cap		907,596		1,148,955
MSCI Poland Capped		3,038,338		1,600,585
MSCI UAE Capped		—		540,897

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 97

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 August 31, 2017 were as follows:

iShares ETF	Purchases		Sales
MSCI All Peru Capped	$	26,445,674	$	29,289,088
MSCI Argentina and Global Exposure		2,424,469		1,766,981
MSCI Brazil Small-Cap		30,068,674		34,014,031
MSCI China		382,048,421		135,243,416
MSCI China Small-Cap		5,275,105		5,515,256
MSCI Indonesia		36,138,885		31,980,581
MSCI Philippines		13,378,255		13,199,654
MSCI Poland Capped		20,469,952		15,238,662
MSCI Qatar Capped		27,321,498		21,582,352
MSCI Saudi Arabia Capped		14,801,284		1,852,339
MSCI UAE Capped		20,872,783		14,467,811

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
MSCI All Peru Capped	$	35,032,914	$	103,819,833
MSCI Argentina and Global Exposure		19,485,233		4,813,511
MSCI China		65,060,483		479,440,906
MSCI Indonesia		152,035,001		367,534,669
MSCI Philippines		59,794,067		180,978,180
MSCI Poland Capped		165,747,287		94,902,392
MSCI UAE Capped		707,014		398,821

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.

98 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

5. FUTURES CONTRACTS

The Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements 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 notional value of the contract. Such receipts or payments are known as margin variation 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 notional value of the contract at the time it was opened and the notional value at the time it was closed. Losses may arise if the notional 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 by the iShares MSCI China ETF as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:

Assets
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation (depreciation)a	$	30,271

^a  Represents cumulative appreciation of futures contracts as reported in the schedule of investments. Only current day’s variation margin is reported separately within the statement of assets and liabilities.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI China ETF during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:

	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	2,543,059	$	10,591

The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI China ETF for the year ended August 31, 2017:

Average value of contracts purchased $ 3,625,860

NOTES TO FINANCIAL STATEMENTS 99

Notes to Financial Statements (Continued)

iSHARES^® TRUST

6. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country 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

100 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

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 August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies, the characterization of expenses, 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
MSCI All Peru Capped	$	11,041,761		$	658,398		$	(11,700,159	)
MSCI Argentina and Global Exposure		189,110			418,041			(607,151	)
MSCI Brazil Small-Cap		—			143,948			(143,948	)
MSCI China		95,418,109			135,627			(95,553,736	)
MSCI China Small-Cap		—			225,611			(225,611	)
MSCI Indonesia		32,387,760			38,677			(32,426,437	)
MSCI Philippines		(7,687,387	)		207,690			7,479,697
MSCI Poland Capped		6,790,317			343,824			(7,134,141	)
MSCI Qatar Capped		—			128,003			(128,003	)
MSCI Saudi Arabia Capped		—			(1,812	)		1,812
MSCI UAE Capped		77,656			(31	)		(77,625	)

NOTES TO FINANCIAL STATEMENTS 101

Notes to Financial Statements (Continued)

iSHARES^® TRUST

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:

iShares ETF	2017		2016
MSCI All Peru Capped
Ordinary income	$	3,701,557	$	2,162,091
MSCI Argentina and Global Exposure
Ordinary income	$	6,820	$	N/A
MSCI Brazil Small-Cap
Ordinary income	$	1,601,858	$	679,799
MSCI China
Ordinary income	$	29,342,450	$	41,167,086
MSCI China Small-Cap
Ordinary income	$	775,895	$	768,088
MSCI Indonesia
Ordinary income	$	6,469,991	$	5,726,092
Return of capital		—		324,115
	$	6,469,991	$	6,050,207
MSCI Philippines
Ordinary income	$	1,008,827	$	2,096,978
MSCI Poland Capped
Ordinary income	$	4,649,179	$	2,589,910
MSCI Qatar Capped
Ordinary income	$	1,458,378	$	1,597,151
Return of capital		—		37,823
	$	1,458,378	$	1,634,974
MSCI Saudi Arabia Capped
Ordinary income	$	169,819		103,109
MSCI UAE Capped
Ordinary income	$	1,550,737	$	1,213,587

102 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^® TRUST

As of August 31, 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
MSCI All Peru Capped	$	264,879	$	(76,558,388	)	$	(53,111,313	)	$	—		$	(129,404,822	)
MSCI Argentina and Global Exposure		425,301		(7,706	)		(594,144	)		—			(176,549	)
MSCI Brazil Small-Cap		1,936,896		(41,539,751	)		18,404,114			—			(21,198,741	)
MSCI China		31,387,778		(195,451,853	)		505,830,079			—			341,766,004
MSCI China Small-Cap		171,500		(4,446,803	)		(1,328,718	)		—			(5,604,021	)
MSCI Indonesia		—		(60,294,188	)		(54,218,309	)		—			(114,512,497	)
MSCI Philippines		—		(34,129,389	)		(26,124,720	)		(17,537	)		(60,271,646	)
MSCI Poland Capped		5,709,508		(38,643,170	)		(3,927,096	)		—			(36,860,758	)
MSCI Qatar Capped		2,920		(8,614,500	)		(12,347,654	)		—			(20,959,234	)
MSCI Saudi Arabia Capped		188,633		(186,869	)		547,934			—			549,698
MSCI UAE Capped		256,183		(11,910,059	)		(4,692,666	)		—			(16,346,542	)

^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.

As of August 31, 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 2019		Total
MSCI All Peru Capped	$	76,077,364	$	481,024	$	76,558,388
MSCI Argentina and Global Exposure		7,706		—		7,706
MSCI Brazil Small-Cap		41,539,751		—		41,539,751
MSCI China		195,451,853		—		195,451,853
MSCI China Small-Cap		4,446,803		—		4,446,803
MSCI Indonesia		60,273,859		20,329		60,294,188
MSCI Philippines		34,129,389		—		34,129,389
MSCI Poland Capped		38,643,165		5		38,643,170
MSCI Qatar Capped		8,614,500		—		8,614,500
MSCI Saudi Arabia Capped		186,869		—		186,869
MSCI UAE Capped		11,910,059		—		11,910,059

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

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 August 31, 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.

NOTES TO FINANCIAL STATEMENTS 103

Notes to Financial Statements (Continued)

iSHARES^® TRUST

8. FOREIGN WITHHOLDING TAX CLAIMS

The iShares MSCI Poland Capped ETF has filed claims to recover taxes withheld by Poland on dividend income on the basis that Poland had purportedly violated certain provisions in the Treaty on the Functioning of the European Union. The Fund has received payments on certain of the claims resulting from a favorable court ruling that the imposition of a withholding tax by a European Union member state on dividends paid to a nonresident company, including the Fund, while exempting domestic funds from such taxes results in discriminatory tax withholding contrary to the free movement of capital. The Fund continues to evaluate developments in Poland for potential impacts on recoverable withholding taxes. Polish withholding tax claims received are disclosed in the statement of operations. Professional fees associated with the filing of tax claims in Poland that result in the recovery of foreign withholding taxes have been 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 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 (the “Plaintiffs”) 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 putative 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. On September 18, 2017, the Court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

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.

104 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 MSCI All Peru Capped ETF,

iShares MSCI Argentina and Global Exposure ETF, iShares MSCI Brazil Small-Cap ETF,

iShares MSCI China ETF, iShares MSCI China Small-Cap ETF, iShares MSCI Indonesia ETF,

iShares MSCI Philippines ETF, iShares MSCI Poland Capped ETF, iShares MSCI Qatar Capped ETF, iShares MSCI Saudi Arabia Capped ETF and iShares MSCI UAE Capped 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 MSCI All Peru Capped ETF, iShares MSCI Argentina and Global Exposure ETF, iShares MSCI Brazil Small-Cap ETF, iShares MSCI China ETF, iShares MSCI China Small-Cap ETF, iShares MSCI Indonesia ETF, iShares MSCI Philippines ETF, iShares MSCI Poland Capped ETF, iShares MSCI Qatar Capped ETF, iShares MSCI Saudi Arabia Capped ETF and iShares MSCI UAE Capped ETF (constituting funds of the iShares Trust, hereafter referred to as the “Funds”) as of August 31, 2017, and 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 August 31, 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

October 23, 2017

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 105

Tax Information (Unaudited)

iSHARES^® TRUST

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:

iShares ETF	Qualified Dividend Income
MSCI All Peru Capped	$	1,905,342
MSCI Argentina and Global Exposure		33,778
MSCI China		34,820,373
MSCI China Small-Cap		107,401

iShares ETF	Qualified Dividend Income
MSCI Indonesia	$	11,396,136
MSCI Philippines		2,698,036
MSCI Poland Capped		6,704,788
MSCI UAE Capped		22,077

For corporate shareholders, the percentage of income dividends paid by the iShares MSCI All Peru Capped ETF during the fiscal year ended August 31, 2017 that qualified for the dividends-received deduction was 6.44%.

For the fiscal year ended August 31, 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
MSCI All Peru Capped	$	4,718,171	$	127,789
MSCI Argentina and Global Exposure		461,232		7,278
MSCI Brazil Small-Cap		1,828,528		83,636
MSCI China		56,562,508		4,557,984
MSCI China Small-Cap		494,692		7,164
MSCI Indonesia		11,461,271		1,745,714
MSCI Philippines		2,712,907		813,602
MSCI Poland Capped		6,814,311		501,534	a
MSCI Qatar Capped		1,679,983		—
MSCI Saudi Arabia Capped		383,945		14,745
MSCI UAE Capped		1,547,782		—

^a Amount has been reduced by the foreign withholding tax claims recovered from Poland in the current year. See Note 8.

106 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® TRUST

I. iShares MSCI All Peru Capped ETF, iShares MSCI Brazil Small-Cap ETF and iShares MSCI Poland Capped ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds. The Board further noted that the Peer Group for each of iShares MSCI All Peru Capped ETF and iShares MSCI Brazil Small-Cap ETF contained only four comparison funds identified by Broadridge, excluding iShares funds. In addition, the Board noted that the Peer Group for iShares MSCI Poland Capped ETF contained only three comparison funds identified by Broadridge, excluding iShares funds.

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 107

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Funds to BlackRock, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

108 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars

BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT 109

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI Argentina and Global Exposure ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required to consider and approve the proposed Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the terms of the proposed Advisory Contract.

At a meeting held on September 28-29, 2016, the Board, including all of the Independent Trustees, approved the selection of BFA as investment adviser and approved the proposed Advisory Contract for the Fund, based on its review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review.

In selecting BFA and approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and made the following conclusions:

Expenses of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of Broadridge’s proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were within range of the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

110 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the proposed investment advisory fee and expense level of the Fund supported the Board’s approval of the Advisory Contract.

Nature, Extent and Quality of Services to be Provided by BFA — The Board reviewed the scope of services to be provided by BFA under the Advisory Contract. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting iShares funds and their shareholders. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would be similar to the scope and quality of services provided to other iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons who will be responsible for the day-to-day management of the Fund, as well as the resources that will be available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on the review of this information, the Board concluded that the nature, extent and quality of services to be provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates — The Board did not consider the profitability of the Fund to BFA based on the fees payable under the Advisory Contract or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. The Board noted that it expects to receive profitability information from BFA periodically following the Fund’s launch and will thus be in a position to evaluate whether any new or additional breakpoints or other adjustments in Fund fees would be appropriate.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets. The Board noted that it had previously received and considered information regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale exist in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue periodically, determined to approve the Advisory Contract.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the

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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® TRUST

“Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA previously provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the iShares funds, including in terms of the different and generally more extensive services provided to the iShares funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded exchange traded fund, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — Except as noted below, the Board did not consider the “fallout” benefits or ancillary revenue to be received by BFA and/or its affiliates in connection with the services to be provided to the Fund by BFA since the proposed relationship had not yet commenced. However, the Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board considered the potential payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also considered the potential for revenue to BTC, the Fund’s securities lending agent, and its affiliates in the event of any loaning of portfolio securities of the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, will be reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the Advisory Contract.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services to be rendered and that could not have been the product of arm’s-length bargaining, and concluded that it is in the best interest of the Fund and its shareholders to approve the Advisory Contract.

III. iShares MSCI China ETF, iShares MSCI China Small-Cap ETF, iShares MSCI Indonesia ETF, iShares MSCI Philippines ETF, iShares MSCI Qatar Capped ETF and iShares MSCI UAE Capped ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management

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agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the applicable Peer Groups. The Board further noted that due to the limitations in providing comparable funds in the various Peer Groups, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Funds in all instances.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in their respective Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as any particular Fund, Broadridge also provided, and the Board reviewed, a comparison of such Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

The Board noted that each Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that each Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of each Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and

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analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Funds under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Funds and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Funds to BlackRock, on a Fund-by-Fund basis and in the aggregate, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Funds’ operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

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Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that each Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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IV. iShares MSCI Saudi Arabia Capped ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Trust’s Board of Trustees (the “Board”), including a majority of Trustees who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Trustees”), is required annually to consider and approve the Investment Advisory Contract between the Trust and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Trustees requested, and BFA provided, such information as the Independent Trustees, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Trustees (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests, and requested certain additional information, which management agreed to provide. At a meeting held on May 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Trustees, reviewed and discussed such information at length. The Independent Trustees requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, the Board, including the Independent Trustees, reviewed the additional information provided by management in response to these requests. After extensive discussions, the Board, including all of the Independent Trustees, approved the continuance of the Advisory Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. The Board noted its satisfaction with the extent and quality of information provided and its frequent interactions with management, as well as the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Trustees were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Trustees, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were lower than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds.

In addition, to the extent that any of the comparison funds included in the Peer Group, excluding iShares funds, track the same index as the Fund, Broadridge also provided, and the Board reviewed, a comparison of the Fund’s performance for the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.

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The Board noted that the Fund seeks to track its specified underlying index and that, during the year, the Board received periodic reports on the Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, was also considered. The Board noted that the Fund generally performed in line with its underlying index over the relevant periods.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA affiliate, from securities lending by the Fund. The Board also discussed BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively

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low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. The Board noted that BFA generally does not use soft dollars or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to

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Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.

Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

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
MSCI All Peru Capped	$	0.679551	$	—	$	0.016342	$	0.695893		98	%		—	%		2	%		100	%
MSCI Brazil Small-Cap		0.357171		—		0.059611		0.416782		86			—			14			100
MSCI China Small-Cap		1.724212		—		—		1.724212		100			—			—			100
MSCI Indonesia		0.354848		—		—		0.354848		100			—			—			100
MSCI Philippines		0.126699		—		0.077861		0.204560		62			—			38			100
MSCI Poland Capped		0.425292		—		—		0.425292		100			—			—			100
MSCI Saudi Arabia Capped		0.524400		—		—		0.524400		100			—			—			100
MSCI UAE Capped		0.632954		—		—		0.632954		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 ask on the primary securities exchange on which 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 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.

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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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding 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. Each line in each 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 MSCI All Peru Capped ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.5% and Less than 2.0%		2		0.14	%
Greater than 1.0% and Less than 1.5%		35		2.53
Greater than 0.5% and Less than 1.0%		136		9.83
Greater than 0.0% and Less than 0.5%		292		21.11
At NAV		8		0.58
Less than 0.0% and Greater than –0.5%		425		30.74
Less than –0.5% and Greater than –1.0%		402		29.07
Less than –1.0% and Greater than –1.5%		67		4.84
Less than –1.5% and Greater than –2.0%		11		0.80
Less than –2.0% and Greater than –2.5%		4		0.29
Less than –2.5%		1		0.07
		1,383		100.00	%

SUPPLEMENTAL INFORMATION 121

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI Argentina and Global Exposure ETF

Period Covered: April 25, 2017 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		44		91.66	%
At NAV		2		4.17
Less than 0.0% and Greater than –0.5%		2		4.17
		48		100.00	%

iShares MSCI Brazil Small-Cap ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		2		0.14	%
Greater than 2.5% and Less than 3.0%		8		0.58
Greater than 2.0% and Less than 2.5%		12		0.87
Greater than 1.5% and Less than 2.0%		39		2.82
Greater than 1.0% and Less than 1.5%		82		5.93
Greater than 0.5% and Less than 1.0%		197		14.24
Greater than 0.0% and Less than 0.5%		322		23.28
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		385		27.85
Less than –0.5% and Greater than –1.0%		226		16.34
Less than –1.0% and Greater than –1.5%		70		5.06
Less than –1.5% and Greater than –2.0%		14		1.01
Less than –2.0% and Greater than –2.5%		8		0.58
Less than –2.5% and Greater than –3.0%		6		0.43
		1,383		100.00	%

122 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI China ETF

Period Covered: January, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		1		0.07	%
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		6		0.43
Greater than 2.0% and Less than 2.5%		19		1.37
Greater than 1.5% and Less than 2.0%		32		2.31
Greater than 1.0% and Less than 1.5%		86		6.22
Greater than 0.5% and Less than 1.0%		245		17.72
Greater than 0.0% and Less than 0.5%		388		28.06
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		308		22.28
Less than –0.5% and Greater than –1.0%		165		11.93
Less than –1.0% and Greater than –1.5%		72		5.21
Less than –1.5% and Greater than –2.0%		34		2.46
Less than –2.0% and Greater than –2.5%		7		0.51
Less than –2.5% and Greater than –3.0%		3		0.22
Less than –3.0% and Greater than –3.5%		2		0.14
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –4.5% and Greater than –5.0%		1		0.07
		1,383		100.00	%

SUPPLEMENTAL INFORMATION 123

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI China Small-Cap ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		2		0.14	%
Greater than 2.5% and Less than 3.0%		2		0.14
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		21		1.52
Greater than 1.0% and Less than 1.5%		71		5.13
Greater than 0.5% and Less than 1.0%		158		11.42
Greater than 0.0% and Less than 0.5%		312		22.56
At NAV		2		0.14
Less than 0.0% and Greater than –0.5%		345		24.96
Less than –0.5% and Greater than –1.0%		222		16.06
Less than –1.0% and Greater than –1.5%		128		9.26
Less than –1.5% and Greater than –2.0%		47		3.40
Less than –2.0% and Greater than –2.5%		30		2.17
Less than –2.5% and Greater than –3.0%		14		1.01
Less than –3.0% and Greater than –3.5%		4		0.29
Less than –3.5% and Greater than –4.0%		9		0.65
Less than –4.0% and Greater than –4.5%		2		0.14
Less than –4.5% and Greater than –5.0%		3		0.22
Less than –5.0% and Greater than –5.5%		1		0.07
Less than –5.5%		1		0.07
		1,383		100.00	%

124 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI Indonesia ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		1		0.07	%
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		5		0.36
Greater than 2.0% and Less than 2.5%		21		1.52
Greater than 1.5% and Less than 2.0%		43		3.11
Greater than 1.0% and Less than 1.5%		81		5.86
Greater than 0.5% and Less than 1.0%		230		16.63
Greater than 0.0% and Less than 0.5%		266		19.24
At NAV		7		0.51
Less than 0.0% and Greater than –0.5%		234		16.92
Less than –0.5% and Greater than –1.0%		210		15.18
Less than –1.0% and Greater than –1.5%		125		9.04
Less than –1.5% and Greater than –2.0%		64		4.63
Less than –2.0% and Greater than –2.5%		35		2.53
Less than –2.5% and Greater than –3.0%		22		1.59
Less than –3.0% and Greater than –3.5%		7		0.51
Less than –3.5% and Greater than –4.0%		9		0.65
Less than –4.0% and Greater than –4.5%		6		0.43
Less than –4.5% and Greater than –5.0%		2		0.14
Less than –5.0%		9		0.65
		1,383		100.00	%

SUPPLEMENTAL INFORMATION 125

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI Philippines ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		3		0.22	%
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		14		1.01
Greater than 1.5% and Less than 2.0%		37		2.68
Greater than 1.0% and Less than 1.5%		88		6.36
Greater than 0.5% and Less than 1.0%		214		15.47
Greater than 0.0% and Less than 0.5%		282		20.40
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		254		18.37
Less than –0.5% and Greater than –1.0%		224		16.20
Less than –1.0% and Greater than –1.5%		144		10.41
Less than –1.5% and Greater than –2.0%		58		4.19
Less than –2.0% and Greater than –2.5%		24		1.74
Less than –2.5% and Greater than –3.0%		16		1.16
Less than –3.0% and Greater than –3.5%		4		0.29
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –4.0% and Greater than –4.5%		2		0.14
Less than –4.5%		5		0.36
		1,383		100.00	%

126 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI Poland Capped ETF

Period Covered: January 1, 2012 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		3		0.22	%
Greater than 3.0% and Less than 3.5%		2		0.14
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		8		0.58
Greater than 1.0% and Less than 1.5%		64		4.63
Greater than 0.5% and Less than 1.0%		264		19.09
Greater than 0.0% and Less than 0.5%		442		31.97
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		357		25.81
Less than –0.5% and Greater than –1.0%		159		11.50
Less than –1.0% and Greater than –1.5%		38		2.75
Less than –1.5% and Greater than –2.0%		17		1.23
Less than –2.0% and Greater than –2.5%		5		0.36
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5% and Greater than –4.0%		1		0.07
		1,383		100.00	%

iShares MSCI Qatar Capped ETF

Period Covered: April 29, 2014 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		2		0.25	%
Greater than 2.5% and Less than 3.0%		2		0.25
Greater than 2.0% and Less than 2.5%		7		0.87
Greater than 1.5% and Less than 2.0%		19		2.37
Greater than 1.0% and Less than 1.5%		77		9.61
Greater than 0.5% and Less than 1.0%		128		15.98
Greater than 0.0% and Less than 0.5%		154		19.23
At NAV		9		1.12
Less than 0.0% and Greater than –0.5%		174		21.73
Less than –0.5% and Greater than –1.0%		146		18.23
Less than –1.0% and Greater than –1.5%		61		7.62
Less than –1.5% and Greater than –2.0%		16		2.00
Less than –2.0% and Greater than –2.5%		1		0.12
Less than –2.5% and Greater than –3.0%		4		0.50
Less than –3.0%		1		0.12
		801		100.00	%

SUPPLEMENTAL INFORMATION 127

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI Saudi Arabia Capped ETF

Period Covered: September 16, 2015 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		1		0.22	%
Greater than 4.5% and Less than 5.0%		2		0.44
Greater than 4.0% and Less than 4.5%		2		0.44
Greater than 3.5% and Less than 4.0%		5		1.11
Greater than 3.0% and Less than 3.5%		24		5.31
Greater than 2.5% and Less than 3.0%		45		9.96
Greater than 2.0% and Less than 2.5%		95		21.02
Greater than 1.5% and Less than 2.0%		116		25.67
Greater than 1.0% and Less than 1.5%		88		19.47
Greater than 0.5% and Less than 1.0%		44		9.73
Greater than 0.0% and Less than 0.5%		15		3.32
At NAV		1		0.22
Less than 0.0% and Greater than –0.5%		4		0.88
Less than –0.5% and Greater than –1.0%		5		1.11
Less than –1.0% and Greater than –1.5%		2		0.44
Less than –1.5% and Greater than –2.0%		2		0.44
Less than –2.0%		1		0.22
		452		100.00	%

128 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

iShares MSCI UAE Capped ETF

Period Covered: April 29, 2014 through June 30, 2017

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5% and Less than 4.0%		1		0.12	%
Greater than 3.0% and Less than 3.5%		1		0.12
Greater than 2.5% and Less than 3.0%		4		0.50
Greater than 2.0% and Less than 2.5%		3		0.37
Greater than 1.5% and Less than 2.0%		9		1.12
Greater than 1.0% and Less than 1.5%		38		4.74
Greater than 0.5% and Less than 1.0%		77		9.61
Greater than 0.0% and Less than 0.5%		116		14.49
At NAV		9		1.12
Less than 0.0% and Greater than –0.5%		196		24.48
Less than –0.5% and Greater than –1.0%		178		22.23
Less than –1.0% and Greater than –1.5%		112		13.99
Less than –1.5% and Greater than –2.0%		39		4.87
Less than –2.0% and Greater than –2.5%		14		1.75
Less than –2.5% and Greater than –3.0%		1		0.12
Less than –3.0% and Greater than –3.5%		2		0.25
Less than –3.5% and Greater than –4.0%		1		0.12
		801		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 MSCI China ETF and iShares MSCI Philippines ETF (each a “Fund”, collectively the “Funds”) 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 Funds.

SUPPLEMENTAL INFORMATION 129

Supplemental Information (Unaudited) (Continued)

iSHARES^® TRUST

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 each 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.

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 each 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 iShares MSCI China ETF in respect of BFA’s financial year ending December 31, 2016 was USD 229.22 thousand. This figure is comprised of fixed remuneration of USD 90.17 thousand and variable remuneration of USD 139.05 thousand. 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 iShares MSCI China ETF in respect of BFA’s financial year ending December 31, 2016, to its senior management was USD 31.70 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 7.64 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Philippines ETF in respect of BFA’s financial year ending December 31, 2016 was USD 15.15 thousand. This figure is comprised of fixed remuneration of USD 5.96 thousand and variable remuneration of USD 9.19 thousand. 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 iShares MSCI Philippines ETF in respect of the BFA’s financial year ending December 31, 2016, to its senior management was USD 2.10 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.50 thousand.

130 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 344 funds (as of August 31, 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 131

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).	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 (14 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); Equity Plus Committee Chair (since 2017).	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 (62)	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); 15(c) Committee Chair (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).

132 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
John E. Martinez (56)	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).
Madhav V. Rajan (53)	Trustee (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); 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 133

Trustee and Officer Information (Continued)

iSHARES^® TRUST

Officers^c

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (42)	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 (55)	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 of 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.

134 2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

For more information visit www.iShares.com or call 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 MSCI 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-806-0817

Item 2. Code of Ethics.

The registrant has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to clarify an inconsistency in to whom persons covered by the code should report suspected violations of the code. The amendment clarifies that such reporting should be made to BlackRock’s General Counsel, and retains the alternative option of anonymous reporting following “whistleblower” policies. Other non-material changes were also made in connection with this amendment. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, by calling 1-800-474-2737.

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, Richard L. Fagnani (began serving on the audit committee effective as of June 20, 2017 and was designated as an audit committee financial expert serving on the audit committee effective as of September 15, 2017), 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 forty-seven series of the registrant for which the fiscal year-end is August 31, 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 $632,030 for the fiscal year ended August 31, 2016 and $665,800 for the fiscal year ended August 31, 2017.

(b) Audit-Related Fees – There were no fees billed for the fiscal years ended August 31, 2016 and August 31, 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 tax compliance, tax advice and tax planning for the Funds were $170,145 for the fiscal year ended August 31, 2016 and $177,707 for the fiscal year ended August 31, 2017. These services related to the review of the Funds’ tax returns and excise tax calculations.

(d) All Other Fees – There were no other fees billed in each of the fiscal years ended August 31, 2016 and August 31, 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 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 August 31, 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 $170,145 for the fiscal year ended August 31, 2016 and $177,707 for the fiscal year ended August 31, 2017. The aggregate non-audit fees for the fiscal year ended August 31, 2016 included in this report are different from those included in the previously filed report covering the 12-month period ended August 31, 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 provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, is compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services, if any, does not compromise the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants

(a) The registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act of 1934 and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act of 1934. The registrant’s audit committee members are Charles A. Hurty, Richard L. Fagnani (began serving on the audit committee effective as of June 20, 2017), John E. Kerrigan, and Madhav V. Rajan.

(b) Not applicable.

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 Treasurer and Chief Financial Officer (the registrant’s Principal Financial Officer) have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934.

(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 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 13. Exhibits.

(a) (1) Code of Ethics is not filed as an exhibit; please refer to Item 2.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable.

(a) (4) Not applicable.

(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: May 4, 2018

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: May 4, 2018

By: /s/ Jack Gee

Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)

Date: May 4, 2018