N-CSRS 1 d247413dncsrs.htm ISHARES TRUST iShares Trust

 

 

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

100 Summer Street, 4th Floor, Boston, MA 02110

(Address of principal executive offices) (Zip code)

 

 

The Corporation Trust Company

1209 Orange Street, Wilmington, DE 19801

(Name and address of agent for service)

 

 

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

Date of fiscal year end: April 30, 2022

Date of reporting period: October 31, 2021

 

 

 


Item 1.

Reports to Stockholders.

(a) The Report to Shareholders is attached herewith.

 


 

LOGO

 

  OCTOBER 31, 2021

 

 

   

  

2021 Semi-Annual Report

(Unaudited)

 

 

iShares Trust

 

·  

iShares Global Clean Energy ETF | ICLN | NASDAQ


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.

Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, out-paced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021

 

 
     
     6-Month     12-Month  
     

U.S. large cap equities
(S&P 500® Index)

    10.91%       42.91%  
     

U.S. small cap equities
(Russell 2000® Index)

    1.85          50.80     
     

International equities
(MSCI Europe, Australasia, Far East Index)

    4.14          34.18     
     

Emerging market equities
(MSCI Emerging Markets Index)

    (4.87)         16.96     
     

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

    0.01          0.06     
     

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

    1.59          (4.77)    
     

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

    1.06          (0.48)    
     

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

    0.33          2.76     
     

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

    2.36          10.53     

Past performance is not an indication of future results.

Index performance is shown for illustrative purposes only.

You cannot invest directly in an index.

 

 

 

 

 

 

 

2   H I S   P A G E   I S   N O T   P A R T   O F   Y O U R  U N D  E P O R T


Table of Contents

 

     

Page

 

 

The Markets in Review

     2  

Fund Summary

     4  

About Fund Performance

     5  

Shareholder Expenses

     5  

Schedule of Investments

     6  

Financial Statements

  

Statement of Assets and Liabilities

     11  

Statement of Operations

     12  

Statements of Changes in Net Assets

     13  

Financial Highlights

     14  

Notes to Financial Statements

     15  

Board Review and Approval of Investment Advisory Contract

     23  

Supplemental Information

     25  

General Information

     26  

Glossary of Terms Used in this Report

     27  

 

 

 

 


Fund Summary as  of October 31, 2021    iShares® Global Clean Energy ETF

 

Investment Objective

The iShares Global Clean Energy ETF (the “Fund”) seeks to track the investment results of an index composed of global equities in the clean energy sector, as represented by the S&P Global Clean Energy IndexTM (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.

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
     6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

    9.36     30.35     25.79     12.59     30.35     214.94     227.32

Fund Market

    9.34       30.14       25.81       12.74       30.14       215.17       231.71  

Index

    9.53       30.51       25.83       11.83       30.51       215.43       205.87  

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 5 for more information.

Expense Example

 

Actual              Hypothetical 5% Return           
 

Beginning
  Account Value
(05/01/21)
 
 
 
      


Ending

Account Value
(10/31/21)

 

 
 

      

Expenses
Paid During
the Period (a)
 
 
 
              


Beginning
Account
Value
(05/01/21)
 
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      


Expenses
Paid
During the
Period
 
 
 
 (a) 
      

Annualized

Expense

Ratio

 

 

 

  $      1,000.00        $       1,093.60        $        2.11                $       1,000.00        $       1,023.20        $        2.04          0.40

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 5 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Electric Utilities

    21.6

Semiconductor Equipment

    19.6  

Heavy Electrical Equipment

    15.1  

Renewable Electricity

    14.2  

Electrical Components & Equipment

    13.5  

Multi-Utilities

    6.3  

Semiconductors

    5.4  

Oil & Gas Refining & Marketing

    1.9  

Independent Power Producers & Energy Traders

    1.1  

Other (each representing less than 1%)

    1.3  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

   

Country/Geographic Region

   

Percent of

Total Investments

 

(a) 

United States

    41.5

Denmark

    13.3  

Canada

    7.0  

China

    6.6  

Spain

    6.1  

Portugal

    5.5  

United Kingdom

    3.9  

Switzerland

    2.6  

South Korea

    2.0  

Germany

    1.8  
 
  (a) 

Excludes money market funds.

 

 

 

 

4  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of the Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at 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. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined by using the midpoint between the highest bid and the lowest ask 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. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

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

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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 and other fees 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.

 

 

A B O U T   F U N D   P E R F O R M A N C E / S H A R E H O L D E R   E X P E N S E S

  5


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® Global Clean Energy ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Austria — 1.6%            

Verbund AG

    1,045,986     $     109,035,930  
   

 

 

 
Brazil — 0.7%            

Centrais Eletricas Brasileiras SA, ADR(a)

    5,372,930       32,667,415  

Cia. Paranaense de Energia, ADR(a)

    2,381,385       12,168,877  
   

 

 

 
      44,836,292  
Canada — 7.0%            

Algonquin Power & Utilities Corp.

    6,129,524       88,357,069  

Ballard Power Systems Inc.(a)(b)

    4,962,585       89,940,838  

Boralex Inc., Class A

    1,772,311       54,847,698  

Brookfield Renewable Corp., Class A

    1,623,517       67,244,248  

Canadian Solar Inc.(a)(b)

    684,975       28,460,711  

Innergex Renewable Energy Inc.

    2,713,002       45,158,243  

Northland Power Inc.

    3,360,134       108,031,458  
   

 

 

 
      482,040,265  
Chile — 0.5%            

Enel Americas SA, ADR

    5,750,187       32,546,058  
   

 

 

 
China — 6.6%            

China Datang Corp. Renewable Power Co. Ltd.,
Class H

    46,178,000       19,536,775  

Daqo New Energy Corp., ADR(a)(b)

    1,182,069       91,953,147  

Flat Glass Group Co. Ltd., Class H(a)

    7,953,000       42,633,403  

GCL New Energy Holdings Ltd.(a)(b)

    159,340,000       7,468,081  

JinkoSolar Holding Co. Ltd., ADR(a)(b)

    763,745       45,687,226  

Xinjiang Goldwind Science & Technology Co. Ltd.,
Class H(a)

    15,317,200       34,253,764  

Xinyi Energy Holdings Ltd.

    42,358,000       24,975,944  

Xinyi Solar Holdings Ltd.(a)

    89,974,000       186,899,328  
   

 

 

 
      453,407,668  
Denmark — 13.3%            

Orsted A/S(c)

    2,599,040       367,094,827  

Vestas Wind Systems A/S(a)

    12,694,482       548,777,539  
   

 

 

 
      915,872,366  
France — 0.8%            

McPhy Energy SA(a)(b)

    441,791       11,987,497  

Neoen SA(a)(b)(c)

    955,815       44,008,042  
   

 

 

 
      55,995,539  
Germany — 1.8%            

Encavis AG(a)

    2,019,598       42,322,542  

Nordex SE(a)(b)

    2,128,359       39,113,511  

SMA Solar Technology AG(a)

    337,529       17,846,118  

VERBIO Vereinigte BioEnergie AG

    351,197       27,924,006  
   

 

 

 
      127,206,177  
India — 0.1%            

Azure Power Global Ltd.(a)(b)

    274,671       6,534,423  
   

 

 

 
Israel — 0.7%            

Energix-Renewable Energies Ltd.(a)

    3,878,964       18,256,661  

Enlight Renewable Energy Ltd.(b)

    12,677,543       31,254,275  
   

 

 

 
      49,510,936  
Italy — 0.8%            

ERG SpA

    828,073       29,913,239  

Falck Renewables SpA

    2,314,014       23,337,846  
   

 

 

 
      53,251,085  
Japan — 0.8%            

gremz Inc.

    125,100       2,879,711  
Security   Shares      Value  
Japan (continued)             

RENOVA Inc.(b)

    838,100      $     36,868,753  

West Holdings Corp.

    321,600        17,974,783  
    

 

 

 
       57,723,247  
New Zealand — 1.5%             

Contact Energy Ltd.

    9,010,190        52,870,260  

Meridian Energy Ltd.

    14,590,541        52,267,607  
    

 

 

 
       105,137,867  
Norway — 1.1%             

NEL ASA(a)(b)

    14,175,436        30,013,165  

Scatec ASA

    2,365,252        46,654,506  
    

 

 

 
       76,667,671  
Portugal — 5.5%             

EDP - Energias de Portugal SA

    43,692,066        246,538,598  

EDP Renovaveis SA(a)

    4,767,118        132,809,986  
    

 

 

 
       379,348,584  
Singapore — 0.1%             

Maxeon Solar Technologies Ltd.(a)(b)

    426,612        9,611,568  
    

 

 

 
South Korea — 1.9%             

CS Wind Corp.(a)

    468,804        27,987,420  

Doosan Fuel Cell Co. Ltd.(a)(b)

    806,088        36,185,606  

Hanwha Solutions Corp.(b)

    1,822,623        63,942,706  

Unison Co. Ltd.(a)(b)

    2,110,248        6,237,861  
    

 

 

 
       134,353,593  
Spain — 6.1%             

Iberdrola SA

    22,632,121        267,252,276  

Siemens Gamesa Renewable Energy SA(b)

    4,462,161        121,083,369  

Solaria Energia y Medio Ambiente SA(b)

    1,488,269        29,783,524  
    

 

 

 
       418,119,169  
Sweden — 0.3%             

PowerCell Sweden AB(a)(b)

    921,227        20,589,026  
    

 

 

 
Switzerland — 2.5%             

BKW AG

    290,859        38,535,070  

Meyer Burger Technology AG(a)(b)

    48,241,903        23,022,389  

Siemens Energy AG(b)

    3,966,866        113,851,359  
    

 

 

 
       175,408,818  
United Kingdom — 3.9%             

Atlantica Sustainable Infrastructure PLC

    924,075        36,362,351  

SSE PLC

    10,404,721        234,310,088  
    

 

 

 
       270,672,439  
United States — 41.3%             

Aemetis Inc.(b)

    566,192        11,267,221  

Array Technologies Inc.(a)(b)

    2,369,755        50,594,269  

Avangrid Inc.

    1,037,695        54,686,527  

Bloom Energy Corp., Class A(a)(b)

    2,894,724        90,489,072  

Clearway Energy Inc., Class C

    1,215,734        43,134,242  

Consolidated Edison Inc.

    4,620,642        348,396,407  

Enphase Energy Inc.(a)(b)

    2,672,411        619,010,560  

First Solar Inc.(a)(b)

    1,962,834        234,735,318  

FuelCell Energy Inc.(a)(b)

    4,801,482        38,363,841  

Green Plains Inc.(a)(b)

    794,524        30,152,186  

Ormat Technologies Inc.(a)

    666,962        48,241,361  

Plug Power Inc.(a)(b)

    10,261,587        392,710,935  

Renewable Energy Group Inc.(a)(b)

    997,238        63,823,232  

Shoals Technologies Group Inc., Class A(a)(b)

    2,023,666        62,713,409  

SolarEdge Technologies Inc.(a)(b)

    1,037,642        368,030,865  

Sunnova Energy International Inc.(a)(b)

    1,845,147        82,219,750  

SunPower Corp.(a)(b)

    1,647,078        55,440,646  
 

 

 

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Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Global Clean Energy ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

United States (continued)

   

Sunrun Inc.(a)(b)

    4,088,065     $ 235,799,589  

TPI Composites Inc.(a)(b)

    739,430       24,867,031  
   

 

 

 
      2,854,676,461  
   

 

 

 

Total Common Stocks — 98.9%
(Cost: $5,840,205,370)

      6,832,545,182  
   

 

 

 

Preferred Stocks

   

Brazil — 0.7%

   

Cia. Energetica de Minas Gerais, Preference Shares, ADR(a)

    22,379,024       50,352,804  
   

 

 

 

Total Preferred Stocks — 0.7%
(Cost: $42,892,189)

      50,352,804  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 11.0%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(d)(e)(f)

    744,397,392       744,769,591  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e)

    15,260,000       15,260,000  
   

 

 

 
      760,029,591  
   

 

 

 

Total Short-Term Investments — 11.0%
(Cost: $759,986,816)

      760,029,591  
   

 

 

 

Total Investments in Securities — 110.6%
(Cost: $6,643,084,375)

      7,642,927,577  

Other Assets, Less Liabilities — (10.6)%

      (733,022,026
   

 

 

 

Net Assets — 100.0%

    $  6,909,905,551  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
04/30/21
    

Purchases

at Cost

    

Proceeds

from Sales

     Net Realized
Gain (Loss)
    

Change in
Unrealized
Appreciation

(Depreciation)

     Value at
10/31/21
    

Shares

Held at

10/31/21

     Income     

Capital

Gain
Distributions
from

Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 436,749,892      $ 308,019,843 (a)     $      $ (21,855    $  21,711      $ 744,769,591        744,397,392      $ 1,559,712 (b)     $  —  

BlackRock Cash Funds: Treasury, SL Agency Shares

     43,810,000               (28,550,000 )(a)                     15,260,000        15,260,000        962         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (21,855    $ 21,711      $ 760,029,591         $ 1,560,674      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a)

Represents net amount purchased (sold).

 
  (b)

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

  7


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Global Clean Energy ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

Euro STOXX 50 Index

     107        12/17/21      $  5,246      $  105,197  

MSCI Emerging Markets Index

     33        12/17/21        2,082        (29,635

S&P 500 E-Mini Index

     29        12/17/21        6,666        229,819  
           

 

 

 
            $ 305,381  
           

 

 

 

OTC Total Return Swaps

 

 

 
Reference Entity   Payment
Frequency
   Counterparty(a)    Termination
Date
     Net
Notional
     Accrued
Unrealized
Appreciation
(Depreciation)
    Net Value
of
Reference
Entity
     Gross
Notional
Amount
Net Asset
Percentage
 

 

 

Equity Securities Long

  Monthly    Goldman Sachs Bank USA(b)      02/27/23      $  2,292,452      $  195,902 (c)    $  2,488,306        0.0
  Monthly    HSBC Bank PLC(d)      02/10/23        6,751,197        454,674 (e)      7,394,595        0.1  
             

 

 

   

 

 

    
              $ 650,576     $ 9,882,901     
             

 

 

   

 

 

    

 

  (a)

The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions.

 
  (c)

Amount includes $48 of net dividends and financing fees.

 
  (e)

Amount includes $(188,724) of net dividends, payable for referenced securities purchased and financing fees. The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest:

 

 

  (b)    (d)

Range:

  65 basis points    65 basis points

Benchmarks:

  USD - 1D Overnight Fed Funds Effective Rate (FEDL01)    USD - 1D Overnight Bank Funding Rate (OBFR01)

 

 

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Schedule of Investments (unaudited) (continued)

October 31, 2021

   iShares® Global Clean Energy ETF

 

The following table represents the individual long positions and related values of the equity securities underlying the total return swap with Goldman Sachs Bank USA as of October 31, 2021 expiration 2/27/2023.

 

     Shares     Value     % of
Basket
Value

Reference Entity — Long

     
United States                

Green Plains Inc.

    65,568     $ 2,488,306       100.0
   

 

 

   

Net Value of Reference Entity — Goldman Sachs Bank USA

 

  $ 2,488,306    
   

 

 

   

 

The following table represents the individual long positions and related values of the equity securities underlying the total return swap with HSBC Bank PLC as of October 31, 2021 expiration 2/10/2023.

 

     Shares     Value     % of
Basket
Value

Reference Entity — Long

     
United States                

Green Plains Inc.

    194,851     $ 7,394,595       100.0
   

 

 

   

Net Value of Reference Entity — HSBC Bank PLC

 

  $ 7,394,595    
   

 

 

   

 

 

Balances Reported in the Statement of Assets and Liabilities for Total Return Swaps

 

      Premiums
Paid
       Premiums
Received
       Unrealized
Appreciation
       Unrealized  
Depreciation  
 

Total Return Swaps

     $—          $—          $650,576          $—   

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 335,016  

Swaps — OTC

  

Unrealized appreciation on OTC swaps; Swap premiums paid

   $ 650,576  
  

 

 

 
   $ 985,592  
  

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 29,635  
  

 

 

 

 

  (a)

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statement of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 823,635  

Swaps

     4,596,805  
  

 

 

 
   $ 5,420,440  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 116,349  

Swaps

     (1,618,483
  

 

 

 
   $   (1,502,134)  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

 

Average notional value of contracts — long

  $ 19,758,579  

Total return swaps:

 

Average notional value

  $ 24,363,160  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements

 

 

  9


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Global Clean Energy ETF

    

 

Derivative Financial Instruments - Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

 

 

 
     Assets      Liabilities  

 

 

Derivative Financial Instruments:

     

Futures contracts

   $ 335,016      $ 29,635  

Swaps - OTC(a)

     650,576         
  

 

 

    

 

 

 

Total derivative assets and liabilities in the Statement of Assets and Liabilities

     985,592        29,635  

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

     (335,016      (29,635
  

 

 

    

 

 

 

Total derivative assets and liabilities subject to an MNA

     650,576         
  

 

 

    

 

 

 

 

  (a) 

Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Statement of Assets and Liabilities.

 

The following table presents the Fund’s derivative assets by counterparty net of amounts available for offset under an MNA and net of the related collateral received by the Fund:

 

 

 

Counterparty

    



Derivative
Assets
Subject to
an MNA by
Counterparty
 
 
 
 
 
    

Derivatives
Available
for Offset
 
 
(a)  
   

Non-Cash
Collateral
Received
 
 
 
   

Cash
Collateral
Received
 
 
(b) 
   

Net Amount
of Derivative
Assets
 
 
(c)  

 

 

Goldman Sachs Bank USA

   $ 195,902      $     $     $     $ 195,902  

HSBC Bank PLC

     454,674                    (454,674      
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
   $ 650,576      $     $     $ (454,674   $ 195,902  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

 
  (b) 

Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

 
  (c) 

Net amount represents the net amount receivable from the counterparty in the event of default.

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                                                   

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 4,004,310,053      $ 2,828,235,129      $      $ 6,832,545,182  

Preferred Stocks

     50,352,804                      50,352,804  

Money Market Funds

     760,029,591                      760,029,591  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 4,814,692,448      $ 2,828,235,129      $      $ 7,642,927,577  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 229,819      $ 105,197      $      $ 335,016  

Swaps

            650,576               650,576  

Liabilities

           

Futures Contracts

     (29,635                    (29,635
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 200,184      $ 755,773      $      $ 955,957  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are swaps and futures contracts. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

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Statements of Assets and Liabilities (unaudited)

October 31, 2021

 

   

iShares

Global Clean

Energy ETF

 

 

 

ASSETS

 

Investments in securities, at value (including securities on loan)(a):

 

Unaffiliated(b)

  $ 6,882,897,986  

Affiliated(c)

    760,029,591  

Cash

    718,869  

Foreign currency, at value(d)

    5,377,328  

Cash pledged:

 

Futures contracts

    459,000  

Foreign currency collateral pledged:

 

Futures contracts(e)

    388,416  

Receivables:

 

Securities lending income — Affiliated

    233,006  

Variation margin on futures contracts

    13,045  

Capital shares sold

    3,155,540  

Dividends

    5,153,569  

Tax reclaims

    767,167  

Unrealized appreciation on:

 

OTC swaps

    650,576  
 

 

 

 

Total assets

    7,659,844,093  
 

 

 

 

LIABILITIES

 

Cash received:

 

Collateral — OTC derivatives

    460,000  

Collateral on securities loaned, at value

    744,806,690  

Payables:

 

Investments purchased

    2,589,221  

Investment advisory fees

    2,082,631  
 

 

 

 

Total liabilities

    749,938,542  
 

 

 

 

NET ASSETS

  $ 6,909,905,551  
 

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

  $ 6,444,193,804  

Accumulated earnings

    465,711,747  
 

 

 

 

NET ASSETS

  $ 6,909,905,551  
 

 

 

 

Shares outstanding

    274,000,000  
 

 

 

 

Net asset value

  $ 25.22  
 

 

 

 

Shares authorized

    Unlimited  
 

 

 

 

Par value

    None  
 

 

 

 

(a) Securities loaned, at value

  $ 739,014,385  

(b) Investments, at cost — Unaffiliated

  $ 5,883,097,559  

(c)  Investments, at cost — Affiliated

  $ 759,986,816  

(d) Foreign currency, at cost

  $ 5,398,863  

(e) Foreign currency collateral pledged, at cost

  $ 390,122  

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  11


Statements of Operations (unaudited)

Six Months Ended October 31, 2021

 

   

iShares

Global Clean

Energy ETF

 

 

 

INVESTMENT INCOME

 

Dividends — Unaffiliated

  $ 42,385,374  

Dividends — Affiliated

    962  

Non-cash dividends — Unaffiliated

    6,049,408  

Securities lending income — Affiliated — net

    1,559,712  

Foreign taxes withheld

    (2,284,865
 

 

 

 

Total investment income

    47,710,591  
 

 

 

 

EXPENSES

 

Investment advisory fees

    12,207,322  

Commitment fees

    9,895  
 

 

 

 

Total expenses

    12,217,217  
 

 

 

 

Net investment income

    35,493,374  
 

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — Unaffiliated

    (119,109,258

Investments — Affiliated

    (21,855

In-kind redemptions — Unaffiliated

    39,133,458  

Futures contracts

    823,635  

Foreign currency transactions

    (473,210

Swaps

    4,596,805  
 

 

 

 

Net realized loss

    (75,050,425
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments — Unaffiliated

    631,079,123  

Investments — Affiliated

    21,711  

Futures contracts

    116,349  

Foreign currency translations

    (46,174

Swaps

    (1,618,483
 

 

 

 

Net change in unrealized appreciation (depreciation)

    629,552,526  
 

 

 

 

Net realized and unrealized gain

    554,502,101  
 

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 589,995,475  
 

 

 

 

See notes to financial statements.

 

 

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Statements of Changes in Net Assets

 

    iShares
Global Clean Energy ETF
 
   

Six Months Ended

10/31/21

(unaudited)

       

Period from

04/01/21

to 04/30/21

       

Year Ended

03/31/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS

         

Net investment income

  $ 35,493,374       $ 14,355,638       $ 14,798,479  

Net realized gain (loss)

    (75,050,425       (300,457,331       271,060,644  

Net change in unrealized appreciation (depreciation)

    629,552,526         65,740,037         367,839,615  
 

 

 

     

 

 

     

 

 

 

Net increase (decrease) in net assets resulting from operations

    589,995,475         (220,361,656       653,698,738  
 

 

 

     

 

 

     

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (32,347,409               (9,446,251
 

 

 

     

 

 

     

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Net increase in net assets derived from capital share transactions

    496,303,137         434,045,210         4,498,791,051  
 

 

 

     

 

 

     

 

 

 

NET ASSETS

         

Total increase in net assets

    1,053,951,203         213,683,554         5,143,043,538  

Beginning of period

    5,855,954,348         5,642,270,794         499,227,256  
 

 

 

     

 

 

     

 

 

 

End of period

  $ 6,909,905,551       $ 5,855,954,348            $ 5,642,270,794  
 

 

 

     

 

 

     

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

  13


Financial Highlights

(For a share outstanding throughout each period)

 

          iShares Global Clean Energy ETF  
      Six Months Ended       Period From                           
         

10/31/21

(unaudited)

    04/01/21
to 04/30/21
   

Year Ended

03/31/21

    Year Ended
03/31/20
    Year Ended
03/31/19
    Year Ended
03/31/18
    Year Ended
03/31/17
 

 

 

Net asset value, beginning of period

                 $ 23.19     $ 24.07        $ 9.62        $ 9.75        $ 9.47        $ 8.54        $ 9.27  
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income(a)

      0.13       0.06          0.13          0.11          0.19          0.26          0.25  

Net realized and unrealized gain (loss)(b)

      2.02       (0.94        14.42          (0.08        0.32          0.90          (0.67
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) from investment operations

      2.15       (0.88        14.55          0.03          0.51          1.16          (0.42
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Distributions(c)

                              

From net investment income

      (0.12              (0.10        (0.16        (0.23        (0.23        (0.31
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total distributions

      (0.12              (0.10        (0.16        (0.23        (0.23        (0.31
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net asset value, end of period

    $ 25.22     $ 23.19        $ 24.07        $ 9.62        $ 9.75        $ 9.47        $ 8.54  
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total Return(d)

                              

Based on net asset value

      9.36 %(e)       (3.66 )%(e)          151.73        0.12        5.69        13.90        (4.39 )% 
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Ratios to Average Net Assets

                              

Total expenses

      0.40 %(f)       0.41 %(f)          0.42        0.46        0.46        0.47        0.48
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income

      1.18 %(f)       3.07 %(f)          0.57        1.01        2.13        2.91        2.86
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Supplemental Data

                              

Net assets, end of period (000)

    $ 6,909,906     $ 5,855,954        $ 5,642,271        $ 499,227        $ 208,595        $ 156,209        $ 80,235  
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Portfolio turnover rate(g)

      26 %(e)       54 %(e)          31        37        42        29        35
   

 

 

   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

Based on average shares outstanding.

(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)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

14  

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Notes to Financial Statements (unaudited)

 

1.

ORGANIZATION

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 is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

These financial statements relate only to the following fund (the “Fund”):

 

   
iShares ETF    Diversification
Classification
 

Global Clean Energy

     Non-diversified  

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The 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 Fund 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 Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its Statement 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 October 31, 2021, if any, are disclosed in the Statement of Assets and Liabilities.

The Fund files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Fund may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statement of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts and swaps) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Fund. Because such gains or losses are not taxable to the Fund and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Fund’s tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

Distributions: Dividends and distributions paid by the 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 Fund. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. 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 Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

 

   

Equity investments traded on a recognized securities exchange are valued at that day’s 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.

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

   

Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Fund uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. 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 price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access;

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

   

Level 3 – Unobservable inputs 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 financial instruments).

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 judgment 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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its 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 the Fund is required to have a value of at least 102% of the current market 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

 

 

16  

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Notes to Financial Statements (unaudited) (continued)

 

market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, on the next business day. During the term of the loan, the 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.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Fund’s investment adviser, or its affiliates is disclosed in the Schedule 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, if any, are also disclosed in the Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statement of Assets and Liabilities.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “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, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

 

 

iShares ETF and Counterparty

    
Market Value of
Securities on Loan
 
 
    
Cash Collateral
Received
 
(a)  
    
Non-Cash Collateral
Received
 
 
     Net Amount  

 

 

Global Clean Energy

           

Barclays Bank PLC

   $ 19,690,102      $ 19,690,102      $      $  

Barclays Capital, Inc.

     22,069,752        22,069,752                

BNP Paribas SA

     21,618,632        21,618,632                

BofA Securities, Inc.

     85,459,106        85,459,106                

Citadel Clearing LLC

     575,184        551,973               (23,211 )(b)  

Citigroup Global Markets, Inc.

     13,654,899        13,654,899                

Credit Suisse AG

     10,773,195        10,773,195                

Credit Suisse Securities (USA) LLC

     34,699,898        33,937,736               (762,162 )(b)  

Deutsche Bank Securities, Inc.

     524,554        91,245               (433,309 )(b)  

Goldman Sachs & Co. LLC

     94,725,107        94,226,699               (498,408 )(b)  

HSBC Bank PLC

     2,994,874        2,994,874                

J.P. Morgan Securities LLC

     76,969,699        76,969,699                

Jefferies LLC

     1,390,657        1,390,657                

Macquarie Bank Ltd.

     990,064        990,064                

Morgan Stanley

     257,109,232        256,019,803               (1,089,429 )(b) 

Natixis S.A.

     1,035,420        1,017,549               (17,871 )(b)  

Scotia Capital (USA), Inc.

     24,046,573        24,046,573                

SG Americas Securities LLC

     1,860,837        1,860,837                

State Street Bank & Trust Co.

     34,811,122        34,543,571               (267,551 )(b)  

Toronto Dominion Bank

     3,304,182        3,170,842               (133,340 )(b)  

UBS AG

     24,529,202        24,529,202                

UBS Securities LLC

     1,438,225        1,414,440               (23,785 )(b)  

Wells Fargo Bank N.A.

     2,962,098        2,941,054               (21,044 )(b)  

Wells Fargo Securities LLC

     1,781,771        1,779,287               (2,484 )(b)  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 739,014,385      $     735,741,791      $      $   (3,272,594
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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 the Fund is disclosed in the Fund’s statement of assets and liabilities.

 
  (b) 

The market value of the loaned securities is determined as of October 31, 2021. Additional collateral is delivered to the Fund 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.

 

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 Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value of the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market 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. Such losses are borne entirely by the Fund.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk) .

Futures contracts are exchange-traded agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. 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 market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”). For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid. Total return swaps are entered into by the Fund to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket or underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instruments or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.

Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.

Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. 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, insolvency, or other events.

For derivatives traded under an ISDA Master Agreement, the collateral requirements 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 a Fund and the counterparty.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. The Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from the counterparty are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, the Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: Pursuant to an Investment Advisory Agreement with the Trust, BFA manages the investment of the 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 Fund, 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 Fund, 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:

 

 

 
Aggregate Average Daily Net Assets    Investment Advisory Fee     

 

 

First $10 billion

     0.4800%  

Over $10 billion, up to and including $20 billion

     0.4300     

Over $20 billion, up to and including $30 billion

     0.3800     

Over $30 billion, up to and including $40 billion

     0.3420     

Over $40 billion

     0.3078     

 

 

Prior to July 14, 2021, for its investment advisory services to the Fund, BFA was 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:

 

 

 
Aggregate Average Daily Net Assets    Investment Advisory Fee     

 

 

First $10 billion

     0.480%  

Over $10 billion, up to and including $20 billion

     0.430     

Over $20 billion, up to and including $30 billion

     0.380     

Over $30 billion

     0.342     

 

 

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

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral

investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

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 Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment fees) 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 that calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement,

 

 

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Notes to Financial Statements (unaudited) (continued)

 

will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by the Fund is shown as securities lending income – affiliated – net in its Statement of Operations. For the six months ended October 31, 2021, the Fund paid BTC $438,279 for securities lending agent services.

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: 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 six months ended October 31, 2021, transactions executed by the Fund pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

       
iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)
 

Global Clean Energy

  $ 3,480,594      $ 3,936,575      $ (403,405

The 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 shown as dividends – affiliated in the Statement of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the six months ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

     
iShares ETF   Purchases      Sales  

Global Clean Energy

  $ 1,657,288,821      $ 1,573,872,403  

For the six months ended October 31, 2021, in-kind transactions were as follows:

 

     
iShares ETF   In-kind
Purchases
     In-kind Sales  

Global Clean Energy

  $ 592,609,740      $ 142,624,752  

 

8.

INCOME TAX INFORMATION

The Fund is treated as an entity separate from the Trust’s other funds for federal income tax purposes. It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Fund as of October 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of April 30, 2021, the Fund had non-expiring capital loss carryforwards available to offset future realized capital gains of $441,682,915.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund 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.

As of October 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

         
iShares ETF    Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
     Net Unrealized
Appreciation
(Depreciation)
 

Global Clean Energy

   $ 6,684,627,564      $ 1,228,432,094      $ (269,176,124    $ 959,255,970  

 

 

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Notes to Financial Statements (unaudited) (continued)

 

9.

LINE OF CREDIT

The Fund, along with certain other iShares funds (“Participating Funds”), is a party to a $300 million credit agreement (“Credit Agreement”) with State Street Bank and Trust Company, which expires on October 15, 2021. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Credit Agreement sets specific sub limits on aggregate borrowings based on two tiers of Participating Funds: $300 million with respect to the funds within Tier 1, including the Fund, and $200 million with respect to Tier 2. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Credit Agreement. The Credit Agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Credit Agreement. The Credit Agreement was terminated on August 12, 2021.

Effective August 13, 2021, the Fund, along with certain other iShares funds (“Participating Funds”), is a party to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 12, 2022. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.

During the six months ended October 31, 2021, the Fund did not borrow under the Credit Agreement or Syndicated Credit Agreement.

 

10.

PRINCIPAL RISKS

In the normal course of business, the 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. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The 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 the 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.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

 

 

N O T E S   T O    F I N A N C I A L   S T A T E M E N T S

  21


Notes to Financial Statements (unaudited) (continued)

 

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: 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 the Fund’s portfolio are disclosed in its Schedule of Investments.

The Fund invests a significant portion of its assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Fund’s investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Fund may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Fund is uncertain.

 

11.

CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the 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 the Fund are not redeemable.

Transactions in capital shares were as follows:

 

 

 
    Six Months Ended
10/31/21
    Period From
04/01/21
to 04/30/21
    Year Ended
03/31/21
 
iShares ETF   Shares     Amount     Shares     Amount     Shares     Amount  

 

 

Global Clean Energy

           

Shares sold

    28,400,000     $ 646,766,299       21,400,000     $ 512,390,471       208,000,000     $ 5,064,503,842  

Shares redeemed

    (6,900,000     (150,463,162     (3,300,000     (78,345,261     (25,500,000     (565,712,791
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    21,500,000     $ 496,303,137       18,100,000     $ 434,045,210       182,500,000     $ 4,498,791,051  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the Statement of Assets and Liabilities.

 

12.

SUBSEQUENT EVENTS

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

 

 

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Board Review and Approval of Investment Advisory Contract

 

iShares Global Clean Energy ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected

 

 

B O A R D   R E V I E W   A N D   A P P R O V A L   O F   I N V E S T M E N T   A D V I S O R Y   C O N T R A C T

  23


Board Review and Approval of Investment Advisory Contract (continued)

 

by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, 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 assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

 

 

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Supplemental Information (unaudited)

 

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Fund will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being 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 the Fund’s investment experience during the year and may be subject to changes based on 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.

October 31, 2021

 

     Total Cumulative Distributions
for the Fiscal Year-to-Date
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
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
 

Global Clean Energy(a)

  $ 0.122738     $     $ 0.001484     $ 0.124222       99         1     100

 

  (a)

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 

 

 

S U P P L E M E N T A L   I N F O R M A T I O N

  25


General Information

 

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, the Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

26  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity
ADR    American Depositary Receipt

    

 

 

 

G L O S S A R Y   O F   T E R M S   U S E D   I N   T H I S   R E P O R T

  27


 

 

 

 

Want to know more?

iShares.com    |     1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

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

©2021 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-SAR-408-1021

 

 

LOGO

   LOGO


 

LOGO

  OCTOBER 31, 2021

 

 

2021 Semi-Annual Report

(Unaudited)

 

iShares Trust

 

·  

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

 

·  

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

 

·  

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

 

·  

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

 

·  

iShares U.S. Transportation ETF  |  IYT  |  Cboe BZX

 

·  

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

 

 


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.

Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

 

 

 

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021

 

    

 

6-Month  

 

 

 

12-Month  

 

 

U.S. large cap equities
(S&P 500® Index)

 

  10.91%   42.91%

 

U.S. small cap equities
(Russell 2000® Index)

 

  1.85   50.80

 

International equities
(MSCI Europe, Australasia, Far East Index)

 

  4.14   34.18

 

Emerging market equities
(MSCI Emerging Markets Index)

 

  (4.87)   16.96

 

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

 

  0.01   0.06

 

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

 

  1.59   (4.77)

 

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

 

  1.06   (0.48)

 

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

 

  0.33   2.76

 

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped   Index)

 

  2.36   10.53

 

 

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

 

 

2  

H I S  A G E  I S  N O T  A R T  O F  O U R  U N D  E P O R T


Table of Contents

 

     

Page

 

 

The Markets in Review

     2  

Fund Summary

     4  

About Fund Performance

     10  

Shareholder Expenses

     10  

Schedules of Investments

     11  

Financial Statements

  

Statements of Assets and Liabilities

     39  

Statements of Operations

     41  

Statements of Changes in Net Assets

     43  

Financial Highlights

     46  

Notes to Financial Statements

     52  

Board Review and Approval of Investment Advisory Contract

     61  

Supplemental Information

     67  

General Information

     68  

Glossary of Terms Used in this Report

     69  

 

 

 


Fund Summary as of October 31, 2021    iShares® Dow Jones U.S. ETF

 

Investment Objective

The iShares Dow Jones U.S. ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of U.S. equities, as represented by the Dow Jones U.S. IndexTM (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.

Performance

 

              Average Annual Total Returns    

 

          

Cumulative Total Returns

 

 
    

6 Months

 

   

1 Year

 

   

5 Years

 

   

10 Years

 

           

1 Year

 

   

5 Years

 

   

10 Years

 

 

Fund NAV

    10.22       43.36     18.75     15.91          43.36     136.18     337.63

Fund Market

    10.12       43.31       18.74       15.90          43.31       136.06       337.39  

Index

    10.34       43.66       18.99       16.13                43.66       138.51       345.99  

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 10 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses   
Paid During   
the Period  (a)
           Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses   
Paid During   
the Period  (a)
       Annualized
Expense
Ratio
 
$  1,000.00        $  1,102.20        $ 1.06                $  1,000.00        $  1,024.20        $ 1.02             0.20

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector   Percent of   
Total Investments(a)
 

Information Technology

    28.1%  

Health Care

    12.9     

Consumer Discretionary

    12.7     

Financials

    11.6     

Communication Services

    10.1     

Industrials

    8.6     

Consumer Staples

    5.2     

Real Estate

    3.2     

Energy

    2.7     

Materials

    2.6     

Utilities

    2.3     

 

  (a)

Excludes money market funds.

 

 

TEN LARGEST HOLDINGS

 

Security   Percent of   
Total Investments(a)
 

Microsoft Corp.

    5.6%  

Apple Inc.

    5.2     

Amazon.com Inc.

    3.3     

Tesla Inc.

    2.0     

Alphabet Inc., Class A

    2.0     

Alphabet Inc., Class C

    1.9     

Meta Platforms Inc, Class A

    1.7     

NVIDIA Corp.

    1.4     

Berkshire Hathaway Inc., Class B

    1.2     

JPMorgan Chase & Co.

    1.1     
 

 

 

4  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Fund Summary as of October 31, 2021    iShares® U.S. Energy ETF

 

Investment Objective

The iShares U.S. Energy ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the energy sector, as represented by the Russell 1000 Energy RIC 22.5/45 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.

Performance

 

              Average Annual Total Returns    

 

          

Cumulative Total Returns

 

 
    

6 Months

 

   

1 Year

 

   

5 Years

 

   

10 Years

 

           

1 Year

 

   

5 Years

 

   

10 Years

 

 

Fund NAV

    21.31     111.28     0.40     0.70        111.28     2.04     7.23

Fund Market

    21.26       111.49         0.42         0.70          111.49       2.10       7.24  

Index(a)

    21.60       112.22       0.82       1.10          112.22         4.15         11.53  

Dow Jones U.S. Oil & Gas Index

    21.10       111.34       0.73       1.05          111.34       3.72       11.06  

Russell 1000 Energy RIC 22.5/45 Capped Index(b)

    N/A       N/A       N/A       N/A                N/A       N/A       N/A  

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.

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Oil & Gas IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Energy RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Oil & Gas IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Energy RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 11.32%.

 

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.

Expense Example

 

Actual           Hypothetical 5% Return           
Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses   
Paid During   
the Period  (a)
           Beginning
Account Value
(05/01/21)
       Ending
Account Value
(10/31/21)
       Expenses   
Paid During   
the Period  (a)
       Annualized
Expense
Ratio
 
$  1,000.00        $  1,213.10        $ 2.18                $  1,000.00        $  1,023.20        $ 1.99             0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector   Percent of   
Total Investments(a)
 

Oil, Gas & Consumable Fuels

    86.8%  

Energy Equipment & Services

    7.8     

Semiconductors & Semiconductor Equipment

    3.4     

Electrical Equipment

    2.0     

 

  (a)

Excludes money market funds.

 

 

TEN LARGEST HOLDINGS

 

Security   Percent of   
Total Investments(a)
 

Exxon Mobil Corp.

    20.3%  

Chevron Corp.

    16.6     

ConocoPhillips

    7.8     

EOG Resources Inc.

    5.1     

Schlumberger NV

    4.2     

Marathon Petroleum Corp.

    3.9     

Pioneer Natural Resources Co.

    3.5     

Williams Companies Inc. (The)

    2.9     

Kinder Morgan Inc.

    2.9     

Phillips 66

    2.8     
 

 

 

U N D  U M M A R Y

  5


Fund Summary as of October 31, 2021     iShares® U.S. Healthcare ETF

 

Investment Objective

The iShares U.S. Healthcare ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the healthcare sector, as represented by the Russell 1000 Health Care RIC 22.5/45 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.

Performance

 

               Average Annual Total Returns    

 

         

Cumulative Total Returns

 

 
    

6 Months

 

    

1 Year

 

    

5 Years

 

    

10 Years

 

          

1 Year

 

    

5 Years

 

    

10 Years

 

 

Fund NAV

    10.46      33.07      17.13      17.06       33.07      120.44      382.99

Fund Market

    10.47        33.06        17.12        17.05         33.06        120.36        382.70  

Index(a)

    10.68        33.59        17.59        17.54         33.59        124.82        403.33  

Dow Jones U.S. Health Care Index

    10.48        33.35        17.55        17.52         33.35        124.41        402.41  

Russell 1000 Health Care RIC 22.5/45 Capped Index(b)

    N/A        N/A        N/A        N/A               N/A        N/A        N/A  

 

  (a)

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Health Care IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Health Care RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Health Care IndexTM as the underlying index of the fund.

 
  (b)

The inception date of the Russell 1000 Health Care RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 4.20%.

 

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.

Expense Example

 

Actual

 

          Hypothetical 5% Return

 

        
 

 

Beginning
Account Value
(05/01/21)

 

 
 
 

 

      

 

Ending
Account Value
(10/31/21)

 

 
 
 

 

      

 

Expenses
Paid During
the Period 

 

 
 
(a) 

 

           

 

Beginning
Account Value
(05/01/21)

 

 
 
 

 

      

 

Ending
Account Value
(10/31/21)

 

 
 
 

 

      

 

Expenses
Paid During
the Period 

 

 
 
(a) 

 

    

 

Annualized
Expense
Ratio

 

 
 
 

 

    $ 1,000.00          $ 1,104.60          $ 2.07               $ 1,000.00          $ 1,023.20          $ 1.99        0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector

 

 

 

Percent of    
Total Investments(a)

 

 

Health Care Equipment & Supplies

    27.3%  

Pharmaceuticals

    26.5     

Health Care Providers & Services

    17.1     

Biotechnology

    16.0     

Life Sciences Tools & Services

    11.4     

Health Care Technology

    1.7     

 

  (a)

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

Security

 

 

 

Percent of    
Total Investments(a)

 

 

UnitedHealth Group Inc.

    8.0%  

Johnson & Johnson

    7.9     

Thermo Fisher Scientific Inc.

    4.6     

Pfizer Inc.

    4.5     

Abbott Laboratories

    4.1     

Merck & Co. Inc.

    4.1     

Eli Lilly & Co.

    4.0     

AbbVie Inc.

    3.7     

Danaher Corp.

    3.6     

Medtronic PLC

    3.0     
 

 

 

6  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Fund Summary as of October 31, 2021     iShares® U.S. Technology ETF

 

Investment Objective

The iShares U.S. Technology ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the technology sector, as represented by the Russell 1000 Technology RIC 22.5/45 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.

Performance

 

           Average Annual Total Returns

 

         

Cumulative Total Returns

 

 
    

 

6 Months

 

    

 

1 Year

 

    

 

5 Years

 

    

 

10 Years

 

          

 

1 Year

 

    

 

5 Years

 

    

 

10 Years

 

 

Fund NAV

    18.90      51.47      31.09      22.07       51.47      287.09      634.55

Fund Market

    18.78        51.34        31.08        22.06         51.34        286.96        634.19  

Index(a)

    19.14        52.09        31.65        22.56         52.09        295.46        664.81  

Dow Jones U.S. Technology Capped Index(b)

    19.24        52.21        N/A        N/A         52.21        N/A        N/A  

Russell 1000 Technology RIC 22.5/45 Capped Index(c)

    N/A        N/A        N/A        N/A               N/A        N/A        N/A  

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.

 

  (a)

Index performance through June 23, 2019 reflects the performance of the Dow Jones U.S. Technology Total Return Index. Index performance beginning on June 24, 2019 through September 19, 2021 reflects the performance of the Dow Jones U.S. Technology Capped IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Technology RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Technology Capped IndexTM as the underlying index of the fund.

 
  (b)

The inception date of the Dow Jones U.S. Technology Capped IndexTM was April 15, 2019. The cumulative total return for this index for the period April 15, 2019 through October 31, 2021 was 128.12%.

 
  (c)

The inception date of the Russell 1000 Technology RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 9.07%.

 

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

Expense Example

 

Actual

 

          Hypothetical 5% Return

 

        

 

 

 

 

Beginning
Account Value
(05/01/21)

 

 

 
 
 

 

    

 

 

 

 

Ending
Account Value
(10/31/21)

 

 

 
 
 

 

    

 

 

 

 

Expenses
Paid During
the Period 

 

 

 
 
(a) 

 

         

 

 

 

 

Beginning
Account Value
(05/01/21)

 

 

 
 
 

 

    

 

 

 

 

Ending
Account Value
(10/31/21)

 

 

 
 
 

 

    

 

 

 

 

Expenses
Paid During
the Period 

 

 

 
 
(a) 

 

  

 

 

 

 

Annualized
Expense
Ratio

 

 

 
 
 

 

    $ 1,000.00          $ 1,189.00          $ 2.15               $ 1,000.00          $ 1,023.20          $ 1.99        0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector

 

 

 

Percent of    
Total Investments(a)

 

 

Software

    38.0%  

Semiconductors & Semiconductor Equipment

    19.8     

Technology Hardware, Storage & Peripherals

    17.3     

Interactive Media & Services

    16.9     

IT Services

    5.3     

Electronic Equipment, Instruments & Components

    1.3     

Other (each representing less than 1%)

    1.4     

 

  (a)

  Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

Security

 

 

 

Percent of    
Total Investments(a)

 

 

Microsoft Corp.

    17.2%  

Apple Inc.

    16.1     

Alphabet Inc., Class A

    6.2     

Alphabet Inc., Class C

    5.8     

NVIDIA Corp.

    3.9     

Meta Platforms Inc, Class A

    3.8     

Adobe Inc.

    2.7     

salesforce.com Inc.

    2.6     

Broadcom Inc.

    2.0     

Intel Corp.

    1.9     
 

 

 

U N D  U M M A R Y

  7


Fund Summary as of October 31, 2021     iShares® U.S. Transportation ETF

 

Investment Objective

The iShares U.S. Transportation ETF (the “Fund”) (formerly the iShares Transportation Average ETF) seeks to track the investment results of an index composed of U.S. equities in the transportation sector, as represented by the S&P Transportation Select Industry FMC 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.

Performance

 

          

Average Annual Total Returns

 

 

         

Cumulative Total Returns

 

 

 
    

 

6 Months

 

    

 

1 Year

 

    

 

5 Years

 

   

 

10 Years

 

          

 

1 Year

 

    

 

5 Years

 

    

 

10 Years

 

 

Fund NAV

    0.74      38.79      14.62     13.18       38.79      97.82      245.03

Fund Market

    0.63        38.84        14.62       13.19         38.84        97.84        245.12  

Index(a)

    1.65        41.33        15.67       13.88         41.33        107.05        266.81  

Dow Jones Transportation Average Index

    4.22        44.91        16.25       N/A         44.91        112.30        N/A  

S&P Transportation Select Industry FMC Capped Index(b)

    1.90        N/A        N/A       N/A               N/A        N/A        N/A  

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.

 

  (a)

Index performance through July 18, 2021 reflects the performance of the Dow Jones Transportation Average IndexTM. Index performance beginning on July 19, 2021 reflects the performance of the S&P Transportation Select Industry FMC Capped Index, which, effective as of July 19, 2021, replaced the Dow Jones Transportation Average IndexTM as the underlying index of the fund.

 
  (b)

The inception date of the S&P Transportation Select Industry FMC Capped Index was April 26, 2021. The cumulative total return for this index for the period April 26, 2021 through October 31, 2021 was 3.57%.

 

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.

Expense Example

 

Actual

 

          Hypothetical 5% Return

 

        

 

 

 

 

Beginning
Account Value
(05/01/21)

 

 

 
 
 

 

    

 

 

 

 

Ending
Account Value
(10/31/21)

 

 

 
 
 

 

    

 

 

 

 

Expenses
Paid During
the Period 

 

 

 
 
(a) 

 

         

 

 

 

 

Beginning
Account Value
(05/01/21)

 

 

 
 
 

 

    

 

 

 

 

Ending
Account Value
(10/31/21)

 

 

 
 
 

 

    

 

 

 

 

Expenses
Paid During
the Period 

 

 

 
 
(a) 

 

  

 

 

 

 

Annualized
Expense
Ratio

 

 

 
 
 

 

    $ 1,000.00          $ 1,007.40          $ 1.97                $ 1,000.00          $ 1,023.20          $ 1.99        0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector

 

 

 

Percent of    
Total Investments(a)

 

 

Road & Rail

    56.8%  

Air Freight & Logistics

    28.2     

Airlines

    13.9     

Marine

    1.1     

 

TEN LARGEST HOLDINGS

 

Security

 

 

 

Percent of    
Total Investments(a)

 

 

Union Pacific Corp.

    17.3%  

United Parcel Service Inc., Class B

    17.1     

CSX Corp.

    9.0     

Norfolk Southern Corp.

    4.9     

Uber Technologies Inc.

    4.6     

Old Dominion Freight Line Inc.

    4.4     

Kansas City Southern

    3.9     

Southwest Airlines Co.

    3.9     

FedEx Corp.

    3.8     

Delta Air Lines Inc.

    3.4     
 

 

  (a)

  Excludes money market funds.

 

 

 

8  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Fund Summary as of October 31, 2021     iShares® U.S. Utilities ETF

 

Investment Objective

The iShares U.S. Utilities ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the utilities sector, as represented by the Russell 1000 Utilities RIC 22.5/45 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.

Performance

 

           Average Annual Total Returns

 

         

Cumulative Total Returns

 

 
    

 

6 Months

 

    

 

1 Year

 

    

 

5 Years

 

    

 

10 Years

 

          

 

1 Year

 

    

 

5 Years

 

    

 

10 Years

 

 

Fund NAV

    2.04      11.96      9.27      10.34       11.96      55.81      167.56

Fund Market

    2.03        12.01        9.28        10.35         12.01        55.85        167.63  

Index(a)

    2.18        12.36        9.74        10.83         12.36        59.18        179.57  

Dow Jones U.S. Utilities Index

    1.62        11.74        9.62        10.77         11.74        58.32        178.04  

Russell 1000 Utilities RIC 22.5/45 Capped Index(b)

    N/A        N/A        N/A        N/A               N/A        N/A        N/A  

 

  (a)

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Utilities IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Utilities RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Utilities IndexTM as the underlying index of the fund.

 
  (b)

The inception date of the Russell 1000 Utilities RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 5.04%.

 

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.

Expense Example

 

Actual           Hypothetical 5% Return         
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
    

Annualized
Expense
Ratio
 
 
 
    $ 1,000.00          $ 1,020.40          $ 1.99               $ 1,000.00          $ 1,023.20          $ 1.99        0.39

 

  (a)

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 10 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector   Percent of    
Total Investments(a)
 

Electric Utilities

    56.4%  

Multi-Utilities

    24.3     

Commercial Services & Supplies

    9.5     

Water Utilities

    3.7     

Independent Power and Renewable Electricity Producers

    2.8     

Gas Utilities

    2.3     

Electrical Equipment

    1.0     

 

  (a)

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

   
Security   Percent of    
Total Investments(a)
 

NextEra Energy Inc.

    14.8%  

Duke Energy Corp.

    6.9     

Waste Management Inc.

    6.0     

Southern Co. (The)

    5.8     

Dominion Energy Inc.

    5.4     

Exelon Corp.

    4.6     

American Electric Power Co. Inc.

    3.7     

Sempra Energy

    3.6     

Xcel Energy Inc.

    3.1     

Public Service Enterprise Group Inc.

    2.8     
 

 

 

U N D  U M M A R Y

  9


About Fund Performance

 

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at 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. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined by using the midpoint between the highest bid and the lowest ask 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. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

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

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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 and other fees 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  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

 
Aerospace & Defense — 1.3%  

Axon Enterprise Inc.(a)

    2,628     $         472,935  

Boeing Co. (The)(a)

    21,905       4,534,992  

BWX Technologies Inc.

    3,844       218,109  

Curtiss-Wright Corp.

    1,562       199,436  

General Dynamics Corp.

    9,181       1,861,448  

HEICO Corp.

    1,742       242,817  

HEICO Corp., Class A

    3,012       378,548  

Hexcel Corp.(a)

    3,201       181,625  

Howmet Aerospace Inc.

    15,139       449,477  

Huntington Ingalls Industries Inc.

    1,577       319,705  

L3Harris Technologies Inc.

    8,019       1,848,700  

Lockheed Martin Corp.

    9,783       3,251,086  

Mercury Systems Inc.(a)

    2,255       116,223  

Northrop Grumman Corp.

    6,005       2,145,106  

Raytheon Technologies Corp.

    59,967       5,328,668  

Textron Inc.

    8,944       660,514  

TransDigm Group Inc.(a)

    2,090       1,303,784  

Virgin Galactic Holdings Inc.(a)(b)

    7,084       132,825  
   

 

 

 
   

 

 

 

23,645,998

 

 

Air Freight & Logistics — 0.6%  

CH Robinson Worldwide Inc.

    5,256       509,779  

Expeditors International of Washington Inc.

    6,731       829,663  

FedEx Corp.

    9,815       2,311,727  

GXO Logistics Inc.(a)

    3,912       347,386  

United Parcel Service Inc., Class B

    28,968       6,183,799  
   

 

 

 
   

 

 

 

10,182,354

 

 

Airlines — 0.2%  

Alaska Air Group Inc.(a)

    5,108       269,702  

American Airlines Group Inc.(a)

    25,947       498,183  

Delta Air Lines Inc.(a)

    25,534       999,146  

JetBlue Airways Corp.(a)

    12,524       175,712  

Southwest Airlines Co.(a)

    23,608       1,116,186  

United Airlines Holdings Inc.(a)

    12,859       593,314  
   

 

 

 
   

 

 

 

3,652,243

 

 

Auto Components — 0.2%  

Aptiv PLC(a)

    10,795       1,866,348  

Autoliv Inc.

    3,194       309,339  

BorgWarner Inc.

    9,475       427,038  

Fox Factory Holding Corp.(a)

    1,679       270,235  

Gentex Corp.

    9,366       331,463  

Lear Corp.

    2,384       409,690  

Luminar Technologies Inc.(a)

    8,078       132,398  

QuantumScape Corp.(a)(b)

    9,251       267,724  
   

 

 

 
   

 

 

 

4,014,235

 

 

Automobiles — 2.4%  

Ford Motor Co.(a)

    156,574       2,674,284  

General Motors Co.(a)

    57,590       3,134,624  

Harley-Davidson Inc.

    6,347       231,602  

Tesla Inc.(a)

    32,283       35,963,262  

Thor Industries Inc.

    2,211       225,433  
   

 

 

 
   

 

 

 

42,229,205

 

 

Banks — 4.1%  

Bank of America Corp.

    294,614       14,076,657  

Bank OZK

    5,068       226,388  

BOK Financial Corp.

    1,278       129,295  

Citigroup Inc.

    80,622       5,575,818  

Citizens Financial Group Inc.

    16,831       797,453  
Security   Shares     Value  
Banks (continued)  

Comerica Inc.

    5,314     $         452,168  

Commerce Bancshares Inc.

    4,253       299,879  

Cullen/Frost Bankers Inc.

    2,320       300,440  

East West Bancorp. Inc.

    5,576       443,180  

Fifth Third Bancorp.

    27,562       1,199,774  

First Citizens BancShares Inc./NC, Class A(b)

    274       223,009  

First Financial Bankshares Inc.

    5,112       259,281  

First Horizon Corp.

    21,461       364,193  

First Republic Bank/CA

    7,036       1,522,098  

FNB Corp.

    13,340       155,411  

Glacier Bancorp. Inc.

    4,311       238,355  

Home BancShares Inc./AR

    6,267       148,904  

Huntington Bancshares Inc./OH

    58,918       927,369  

JPMorgan Chase & Co.

    118,884       20,197,203  

KeyCorp.

    38,162       888,030  

M&T Bank Corp.

    5,122       753,549  

People’s United Financial Inc.

    16,528       283,290  

Pinnacle Financial Partners Inc.

    2,971       286,909  

PNC Financial Services Group Inc. (The)

    16,866       3,559,232  

Popular Inc.

    3,262       265,657  

Prosperity Bancshares Inc.

    3,589       270,288  

Regions Financial Corp.

    38,088       901,924  

Signature Bank/New York NY

    2,420       720,724  

SVB Financial Group(a)

    2,342       1,680,151  

Synovus Financial Corp.

    5,945       276,978  

Truist Financial Corp.

    52,950       3,360,736  

U.S. Bancorp.

    53,540       3,232,210  

UMB Financial Corp.

    1,750       172,935  

Umpqua Holdings Corp.

    8,972       183,477  

United Bankshares Inc./WV

    5,144       190,277  

Valley National Bancorp.

    15,971       211,775  

Webster Financial Corp.

    3,743       209,458  

Wells Fargo & Co.

    163,374       8,358,214  

Western Alliance Bancorp.

    4,192       486,649  

Wintrust Financial Corp.

    2,347       207,709  

Zions Bancorp. NA

    6,530       411,325  
   

 

 

 
   

 

 

 

74,448,372

 

 

Beverages — 1.2%  

Boston Beer Co. Inc. (The), Class A, NVS(a)

    371       182,710  

Brown-Forman Corp., Class B, NVS

    7,170       486,771  

Coca-Cola Co. (The)

    154,564       8,712,773  

Constellation Brands Inc., Class A

    6,714       1,455,663  

Keurig Dr Pepper Inc.

    29,413       1,061,515  

Molson Coors Beverage Co., Class B

    7,636       336,671  

Monster Beverage Corp.(a)

    14,900       1,266,500  

National Beverage Corp.

    978       55,159  

PepsiCo Inc.

    54,988       8,886,061  
   

 

 

 
   

 

 

 

22,443,823

 

 

Biotechnology — 2.1%  

AbbVie Inc.

    70,308       8,062,218  

ACADIA Pharmaceuticals Inc.(a)(b)

    4,589       82,373  

Acceleron Pharma Inc.(a)

    2,126       370,307  

Agios Pharmaceuticals Inc.(a)

    2,070       97,290  

Alkermes PLC(a)(b)

    6,226       188,586  

Allogene Therapeutics Inc.(a)

    2,562       44,169  

Alnylam Pharmaceuticals Inc.(a)

    4,723       753,602  

Amgen Inc.

    22,579       4,673,176  

Arrowhead Pharmaceuticals Inc.(a)

    4,159       265,427  

Beam Therapeutics Inc.(a)

    1,748       155,170  
 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  11


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Biotechnology (continued)

    

Biogen Inc.(a)

    5,947      $ 1,585,946  

Biohaven Pharmaceutical Holding Co.
Ltd.(a)

    2,310                328,759  

BioMarin Pharmaceutical Inc.(a)

    7,336        581,231  

Blueprint Medicines Corp.(a)

    2,377        267,389  

Bridgebio Pharma Inc.(a)(b)

    4,362        215,396  

Denali Therapeutics Inc.(a)

    3,689        178,363  

Emergent BioSolutions Inc.(a)

    1,835        87,474  

Exact Sciences Corp.(a)

    6,841        651,400  

Exelixis Inc.(a)

    12,611        271,263  

Fate Therapeutics Inc.(a)

    3,228        173,666  

Gilead Sciences Inc.

    49,790        3,230,375  

Halozyme Therapeutics Inc.(a)

    5,679        216,200  

Horizon Therapeutics PLC(a)

    8,951        1,073,314  

Incyte Corp.(a)

    7,580        507,708  

Intellia Therapeutics Inc.(a)

    2,728        362,769  

Invitae Corp.(a)(b)

    7,979        211,443  

Ionis Pharmaceuticals Inc.(a)

    5,696        181,532  

Mirati Therapeutics Inc.(a)

    1,834        346,663  

Moderna Inc.(a)

    13,972        4,823,274  

Natera Inc.(a)

    3,480        398,704  

Neurocrine Biosciences Inc.(a)

    3,761        396,447  

Novavax Inc.(a)(b)

    2,973        442,472  

Regeneron Pharmaceuticals Inc.(a)

    4,166        2,665,990  

Sarepta Therapeutics Inc.(a)

    3,422        270,783  

Seagen Inc.(a)

    5,299        934,373  

Twist Bioscience Corp.(a)

    1,950        231,660  

Ultragenyx Pharmaceutical Inc.(a)

    2,707        227,171  

United Therapeutics Corp.(a)

    1,790        341,460  

Vertex Pharmaceuticals Inc.(a)

    10,351        1,914,210  

Vir Biotechnology Inc.(a)(b)

    2,647        99,871  
    

 

 

 
    

 

 

 

37,909,624

 

 

Building Products — 0.6%             

A O Smith Corp.

    5,315        388,367  

Advanced Drainage Systems Inc.

    2,224        250,867  

Allegion PLC

    3,580        459,314  

Armstrong World Industries Inc.

    1,848        195,241  

Builders FirstSource Inc.(a)

    8,269        481,835  

Carlisle Companies Inc.

    2,081        463,897  

Carrier Global Corp.

    34,623        1,808,359  

Fortune Brands Home & Security Inc.

    5,492        556,889  

Johnson Controls International PLC

    28,419        2,085,102  

Lennox International Inc.

    1,352        404,627  

Masco Corp.

    9,863        646,520  

Owens Corning

    4,115        384,382  

Trane Technologies PLC

    9,480        1,715,216  

Trex Co. Inc.(a)

    4,540        483,056  

Zurn Water Solutions Corp.

    4,833        175,341  
    

 

 

 
    

 

 

 

10,499,013

 

 

Capital Markets — 3.4%             

Affiliated Managers Group Inc.

    1,692        284,053  

Ameriprise Financial Inc.

    4,540        1,371,670  

Apollo Global Management Inc.

    8,228        633,145  

Ares Management Corp., Class A

    6,523        552,759  

Bank of New York Mellon Corp. (The)

    31,688        1,875,930  

BlackRock Inc.(c)

    5,688        5,366,399  

Blackstone Inc., NVS

    27,235        3,769,869  

Carlyle Group Inc. (The)

    5,517        309,780  

Cboe Global Markets Inc.

    4,191        552,960  

Charles Schwab Corp. (The)

    59,660        4,893,910  
Security   Shares      Value  
Capital Markets (continued)             

CME Group Inc.

    14,240      $ 3,140,632  

Coinbase Global Inc., Class A(a)

    1,092                348,807  

FactSet Research Systems Inc.

    1,495        663,616  

Federated Hermes Inc.

    4,000        133,240  

Franklin Resources Inc.

    10,876        342,485  

Goldman Sachs Group Inc. (The)

    13,406        5,541,370  

Houlihan Lokey Inc.

    2,023        226,738  

Interactive Brokers Group Inc., Class A

    3,293        233,309  

Intercontinental Exchange Inc.

    22,325        3,091,119  

Invesco Ltd.

    13,624        346,186  

Janus Henderson Group PLC

    6,798        316,107  

Jefferies Financial Group Inc.

    7,737        332,691  

KKR & Co. Inc.

    23,265        1,853,522  

Lazard Ltd., Class A

    4,580        224,374  

LPL Financial Holdings Inc.

    3,143        515,515  

MarketAxess Holdings Inc.

    1,494        610,553  

Moody’s Corp.

    6,418        2,593,835  

Morgan Stanley

    58,073        5,968,743  

Morningstar Inc.

    945        299,329  

MSCI Inc.

    3,290        2,187,455  

Nasdaq Inc.

    4,678        981,772  

Northern Trust Corp.

    8,315        1,023,078  

Raymond James Financial Inc.

    7,326        722,270  

S&P Global Inc.

    9,578        4,541,504  

SEI Investments Co.

    4,279        269,748  

State Street Corp.

    14,590        1,437,844  

Stifel Financial Corp.

    4,072        296,727  

T Rowe Price Group Inc.

    9,055        1,963,848  

Tradeweb Markets Inc., Class A

    4,114        366,557  

Virtu Financial Inc., Class A

    3,020        75,138  
    

 

 

 
    

 

 

 

60,258,587

 

 

Chemicals — 1.6%  

Air Products & Chemicals Inc.

    8,766        2,628,134  

Albemarle Corp.

    4,667        1,168,944  

Ashland Global Holdings Inc.

    2,220        213,142  

Axalta Coating Systems Ltd.(a)

    8,435        263,088  

Celanese Corp.

    4,433        715,974  

CF Industries Holdings Inc.

    8,444        479,619  

Chemours Co. (The)

    6,773        189,779  

Corteva Inc.

    29,296        1,264,122  

Dow Inc.

    29,759        1,665,611  

DuPont de Nemours Inc.

    20,871        1,452,622  

Eastman Chemical Co.

    5,325        553,960  

Ecolab Inc.

    9,932        2,207,089  

Element Solutions Inc.

    8,457        192,059  

FMC Corp.

    5,194        472,706  

Huntsman Corp.

    7,779        253,440  

Ingevity Corp.(a)

    1,541        120,059  

International Flavors & Fragrances Inc.

    9,938        1,465,358  

Linde PLC

    20,545        6,557,964  

LyondellBasell Industries NV, Class A

    10,527        977,116  

Mosaic Co. (The)

    13,744        571,338  

NewMarket Corp.

    301        102,343  

Olin Corp.

    5,764        328,433  

PPG Industries Inc.

    9,470        1,520,598  

RPM International Inc.

    5,079        442,889  

Scotts Miracle-Gro Co. (The)

    1,631        242,138  

Sherwin-Williams Co. (The)

    9,607        3,041,672  

Valvoline Inc.

    6,986        237,245  
 

 

 

12  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Chemicals (continued)

   

Westlake Chemical Corp.

    1,317     $         128,197  
   

 

 

 
   

 

 

 

29,455,639

 

 

Commercial Services & Supplies — 0.5%

   

ADT Inc.

    6,701       55,953  

Cimpress PLC(a)(b)

    795       71,009  

Cintas Corp.

    3,492       1,512,385  

Clean Harbors Inc.(a)

    1,932       217,427  

Copart Inc.(a)

    8,478       1,316,549  

IAA Inc.(a)

    5,389       321,454  

MSA Safety Inc.

    1,502       229,851  

Republic Services Inc.

    8,354       1,124,448  

Rollins Inc.

    9,024       317,916  

Stericycle Inc.(a)

    3,768       252,155  

Tetra Tech Inc.

    2,102       369,237  

Waste Management Inc.

    15,346       2,458,890  
   

 

 

 
   

 

 

 

8,247,274

 

 

Communications Equipment — 0.8%

   

Arista Networks Inc.(a)

    2,220       909,512  

Ciena Corp.(a)

    6,317       342,950  

Cisco Systems Inc.

    167,663       9,384,098  

F5 Networks Inc.(a)

    2,407       508,238  

Juniper Networks Inc.

    13,031       384,675  

Lumentum Holdings Inc.(a)

    3,007       248,318  

Motorola Solutions Inc.

    6,757       1,679,723  

Ubiquiti Inc.

    251       76,688  

Viavi Solutions Inc.(a)

    8,952       137,861  
   

 

 

 
   

 

 

 

13,672,063

 

 

Construction & Engineering — 0.1%

   

AECOM(a)

    5,747       392,922  

EMCOR Group Inc.

    2,069       251,363  

MasTec Inc.(a)

    2,220       197,869  

Quanta Services Inc.

    5,527       670,315  

Valmont Industries Inc.

    851       203,355  

WillScot Mobile Mini Holdings Corp.(a)(b)

    8,931       310,352  
   

 

 

 
   

 

 

 

2,026,176

 

 

Construction Materials — 0.1%

   

Eagle Materials Inc.

    1,675       248,503  

Martin Marietta Materials Inc.

    2,489       977,779  

Vulcan Materials Co.

    5,294       1,006,495  
   

 

 

 
   

 

 

 

2,232,777

 

 

Consumer Finance — 0.7%

   

Ally Financial Inc.

    14,387       686,835  

American Express Co.

    25,574       4,444,250  

Capital One Financial Corp.

    17,694       2,672,325  

Credit Acceptance Corp.(a)

    356       212,963  

Discover Financial Services

    11,949       1,354,061  

FirstCash Inc.

    1,582       139,959  

OneMain Holdings Inc.

    3,999       211,187  

PROG Holdings Inc.

    2,838       114,797  

SLM Corp.

    12,202       223,907  

Synchrony Financial

    22,732       1,055,901  

Upstart Holdings Inc.(a)

    1,841       592,876  
   

 

 

 
   

 

 

 

11,709,061

 

 

Containers & Packaging — 0.4%

   

Amcor PLC

    61,522       742,571  

AptarGroup Inc.

    2,622       316,685  

Avery Dennison Corp.

    3,296       717,605  

Ball Corp.

    13,033       1,192,259  
Security   Shares     Value  

Containers & Packaging (continued)

   

Berry Global Group Inc.(a)

    5,388     $         353,129  

Crown Holdings Inc.

    5,242       545,116  

Graphic Packaging Holding Co.

    10,945       218,134  

International Paper Co.

    15,518       770,779  

Packaging Corp. of America

    3,823       525,165  

Sealed Air Corp.

    5,908       350,463  

Silgan Holdings Inc.

    3,335       134,067  

Sonoco Products Co.

    3,966       229,830  

Westrock Co.

    10,795       519,239  
   

 

 

 
   

 

 

 

6,615,042

 

 

Distributors — 0.1%

   

Genuine Parts Co.

    5,690       746,016  

LKQ Corp.(a)

    10,789       594,258  

Pool Corp.

    1,592       820,135  
   

 

 

 
   

 

 

 

2,160,409

 

 

Diversified Consumer Services — 0.1%

   

Bright Horizons Family Solutions Inc.(a)

    2,363       392,258  

Chegg Inc.(a)

    5,658       336,311  

frontdoor Inc.(a)

    3,428       127,796  

Grand Canyon Education Inc.(a)

    1,766       140,750  

H&R Block Inc.

    7,255       167,373  

Service Corp. International

    6,551       448,678  

Terminix Global Holdings Inc.(a)

    4,975       201,388  
   

 

 

 
   

 

 

 

1,814,554

 

 

Diversified Financial Services — 1.2%

   

Berkshire Hathaway Inc., Class B(a)

    73,749       21,166,700  

Equitable Holdings Inc.

    15,270       511,545  

Jackson Financial Inc., Class A(a)

    2,608       70,599  

Voya Financial Inc.

    4,527       315,849  
   

 

 

 
   

 

 

 

22,064,693

 

 

Diversified Telecommunication Services — 1.0%

 

 

AT&T Inc.

    284,066       7,175,507  

Frontier Communications Parent Inc.(a)(b)

    8,290       256,658  

Liberty Global PLC, Class A(a)

    7,046       202,502  

Liberty Global PLC, Class C, NVS(a)(b)

    13,730       395,973  

Lumen Technologies Inc.

    40,023       474,673  

Verizon Communications Inc.

    164,717       8,728,354  
   

 

 

 
   

 

 

 

17,233,667

 

 

Electric Utilities — 1.4%

   

ALLETE Inc.

    2,109       129,788  

Alliant Energy Corp.

    9,918       561,061  

American Electric Power Co. Inc.

    19,961       1,690,896  

Avangrid Inc.

    2,822       148,719  

Duke Energy Corp.

    30,524       3,113,753  

Edison International

    15,152       953,515  

Entergy Corp.

    7,954       819,421  

Evergy Inc.

    9,009       574,324  

Eversource Energy

    13,712       1,164,149  

Exelon Corp.

    39,017       2,075,314  

FirstEnergy Corp.

    21,546       830,167  

Hawaiian Electric Industries Inc.

    4,553       184,670  

IDACORP Inc.

    2,028       211,561  

NextEra Energy Inc.

    78,049       6,659,921  

NRG Energy Inc.

    9,893       394,632  

OGE Energy Corp.

    8,100       275,967  

PG&E Corp.(a)

    60,307       699,561  

Pinnacle West Capital Corp.

    4,547       293,236  

PNM Resources Inc.

    3,557       176,961  

Portland General Electric Co.

    3,582       176,629  
 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  13


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

    iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Electric Utilities (continued)

   

PPL Corp.

    30,710     $         884,448  

Southern Co. (The)

    41,980       2,616,194  

Xcel Energy Inc.

    21,485       1,387,716  
   

 

 

 
   

 

 

 

26,022,603

 

 

Electrical Equipment — 0.7%

   

Acuity Brands Inc.

    1,377       282,877  

AMETEK Inc.

    9,226       1,221,522  

ChargePoint Holdings Inc.(a)(b)

    6,800       168,504  

Eaton Corp. PLC

    15,796       2,602,549  

Emerson Electric Co.

    23,673       2,296,518  

EnerSys

    1,656       132,546  

Generac Holdings Inc.(a)

    2,518       1,255,374  

Hubbell Inc.

    2,155       429,642  

nVent Electric PLC

    6,929       245,633  

Plug Power Inc.(a)(b)

    20,626       789,357  

Regal Rexnord Corp.

    2,746       418,298  

Rockwell Automation Inc.

    4,630       1,478,822  

Sensata Technologies Holding PLC(a)

    6,195       341,345  

Shoals Technologies Group Inc., Class A(a)

    3,759       116,492  

Sunrun Inc.(a)(b)

    8,216       473,899  

Vertiv Holdings Co.

    11,250       288,900  
   

 

 

 
   

 

 

 

12,542,278

 

 

Electronic Equipment, Instruments & Components — 0.7%

 

Amphenol Corp., Class A

    23,870       1,832,500  

Arrow Electronics Inc.(a)

    2,865       331,624  

Avnet Inc.

    3,723       141,883  

CDW Corp./DE

    5,487       1,024,149  

Cognex Corp.

    7,021       614,969  

Coherent Inc.(a)

    985       250,584  

Corning Inc.

    30,671       1,090,967  

II-VI Inc.(a)

    4,184       253,174  

IPG Photonics Corp.(a)

    1,448       230,246  

Itron Inc.(a)

    1,815       141,153  

Jabil Inc.

    5,610       336,376  

Keysight Technologies Inc.(a)

    7,352       1,323,507  

Littelfuse Inc.

    993       292,488  

National Instruments Corp.

    5,361       227,682  

SYNNEX Corp.

    1,636       171,780  

TE Connectivity Ltd.

    13,088       1,910,848  

Teledyne Technologies Inc.(a)

    1,865       837,795  

Trimble Inc.(a)

    10,026       875,972  

Vontier Corp.

    6,870       232,412  

Zebra Technologies Corp., Class A(a)

    2,131       1,137,847  
   

 

 

 
   

 

 

 

13,257,956

 

 

Energy Equipment & Services — 0.2%

   

Baker Hughes Co.

    33,058       829,094  

Halliburton Co.

    35,086       876,799  

NOV Inc.(a)

    15,692       220,002  

Schlumberger NV

    55,800       1,800,108  

TechnipFMC PLC(a)

    17,045       125,622  
   

 

 

 
   

 

 

 

3,851,625

 

 

Entertainment — 1.9%

   

Activision Blizzard Inc.

    31,033       2,426,470  

AMC Entertainment Holdings Inc., Class A(a)(b)

    20,483       724,484  

Electronic Arts Inc.

    11,357       1,592,819  

Endeavor Group Holdings Inc.(a)

    829       22,283  

Liberty Media Corp.-Liberty Formula One, Class A(a)(b)

    940       49,021  

Liberty Media Corp.-Liberty Formula One, Class C, NVS(a)

    7,967       444,559  
Security   Shares     Value  

Entertainment (continued)

   

Live Nation Entertainment Inc.(a)

    5,258     $         531,847  

Madison Square Garden Sports Corp.(a)(b)

    705       133,604  

Netflix Inc.(a)

    17,610       12,156,359  

Playtika Holding Corp.(a)

    4,086       115,552  

ROBLOX Corp., Class A(a)

    1,600       134,432  

Roku Inc.(a)(b)

    4,612       1,406,199  

Take-Two Interactive Software Inc.(a)

    4,665       844,365  

Walt Disney Co. (The)(a)

    72,294       12,222,747  

Warner Music Group Corp., Class A

    3,615       178,906  

World Wrestling Entertainment Inc., Class A

    1,942       118,637  

Zynga Inc., Class A(a)

    40,799       301,097  
   

 

 

 
   

 

 

 

33,403,381

 

 

Equity Real Estate Investment Trusts (REITs) — 3.0%

   

Alexandria Real Estate Equities Inc.

    5,555       1,133,998  

American Campus Communities Inc.

    5,618       301,799  

American Homes 4 Rent, Class A

    10,946       444,408  

American Tower Corp.

    18,103       5,104,503  

Americold Realty Trust

    10,238       301,714  

Apartment Income REIT Corp.

    6,349       340,370  

AvalonBay Communities Inc.

    5,571       1,318,544  

Boston Properties Inc.

    5,670       644,339  

Brixmor Property Group Inc.

    12,116       283,999  

Camden Property Trust

    3,928       640,657  

CoreSite Realty Corp.

    1,749       249,163  

Corporate Office Properties Trust

    4,388       119,003  

Cousins Properties Inc.

    6,034       239,007  

Crown Castle International Corp.

    17,154       3,092,866  

CubeSmart

    8,049       442,775  

CyrusOne Inc.

    4,973       407,885  

Digital Realty Trust Inc.

    11,276       1,779,466  

Douglas Emmett Inc.

    6,781       221,603  

Duke Realty Corp.

    15,106       849,561  

EastGroup Properties Inc.

    1,591       314,668  

Equinix Inc.

    3,560       2,979,969  

Equity Commonwealth(a)

    5,035       130,558  

Equity LifeStyle Properties Inc.

    6,910       583,964  

Equity Residential

    13,598       1,174,867  

Essex Property Trust Inc.

    2,584       878,379  

Extra Space Storage Inc.

    5,319       1,049,811  

Federal Realty Investment Trust

    2,843       342,155  

First Industrial Realty Trust Inc.

    5,114       297,788  

Gaming and Leisure Properties Inc.

    8,948       433,889  

Healthcare Realty Trust Inc.

    5,601       185,169  

Healthcare Trust of America Inc., Class A

    8,943       298,607  

Healthpeak Properties Inc.

    21,506       763,678  

Highwoods Properties Inc.

    4,137       185,503  

Host Hotels & Resorts Inc.(a)

    28,249       475,431  

Hudson Pacific Properties Inc.

    5,854       150,741  

Invitation Homes Inc.

    22,870       943,388  

Iron Mountain Inc.

    11,524       525,955  

JBG SMITH Properties

    4,395       126,840  

Kilroy Realty Corp.

    4,079       274,843  

Kimco Realty Corp.

    24,379       550,965  

Lamar Advertising Co., Class A

    3,407       385,672  

Lexington Realty Trust

    11,305       164,714  

Life Storage Inc.

    3,137       419,762  

Medical Properties Trust Inc.

    23,722       505,990  

Mid-America Apartment Communities Inc.

    4,588       936,915  

National Health Investors Inc.

    1,780       95,728  

National Retail Properties Inc.

    6,993       317,202  
 

 

 

14  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Equity Real Estate Investment Trusts (REITs) (continued)

 

National Storage Affiliates Trust

    3,253     $         203,182  

Omega Healthcare Investors Inc.

    9,493       278,714  

Physicians Realty Trust

    8,321       158,182  

PotlatchDeltic Corp.

    2,528       132,139  

Prologis Inc.

    29,365       4,256,750  

PS Business Parks Inc.

    821       145,892  

Public Storage

    6,084       2,020,983  

Rayonier Inc.

    5,736       214,125  

Realty Income Corp.

    15,538       1,109,879  

Regency Centers Corp.

    6,101       429,571  

Rexford Industrial Realty Inc.

    5,340       358,848  

Sabra Health Care REIT Inc.

    8,587       121,506  

SBA Communications Corp.

    4,371       1,509,437  

Simon Property Group Inc.

    13,112       1,921,957  

SL Green Realty Corp.

    2,739       191,922  

Spirit Realty Capital Inc.

    4,630       226,546  

STAG Industrial Inc.

    6,466       281,465  

STORE Capital Corp.

    9,549       327,817  

Sun Communities Inc.

    4,625       906,408  

UDR Inc.

    11,135       618,327  

Ventas Inc.

    15,699       837,856  

VEREIT Inc.

    9,292       467,388  

VICI Properties Inc.

    24,838       728,995  

Vornado Realty Trust

    6,455       275,177  

Welltower Inc.

    16,861       1,355,624  

Weyerhaeuser Co.

    29,918       1,068,671  

WP Carey Inc.

    7,271       560,667  
   

 

 

 
   

 

 

 

54,116,839

 

 

Food & Staples Retailing — 1.3%

   

Albertsons Companies Inc., Class A

    3,910       121,014  

BJ’s Wholesale Club Holdings Inc.(a)(b)

    5,327       311,310  

Casey’s General Stores Inc.

    1,518       290,758  

Costco Wholesale Corp.

    17,589       8,645,697  

Kroger Co. (The)

    27,133       1,085,863  

Performance Food Group Co.(a)(b)

    6,243       282,371  

Sprouts Farmers Market Inc.(a)

    4,187       92,700  

Sysco Corp.

    20,414       1,569,836  

U.S. Foods Holding Corp.(a)

    9,012       312,446  

Walgreens Boots Alliance Inc.

    28,647       1,346,982  

Walmart Inc.

    56,857       8,495,573  
   

 

 

 
   

 

 

 

22,554,550

 

 

Food Products — 0.9%

   

Archer-Daniels-Midland Co.

    22,321       1,433,901  

Beyond Meat Inc.(a)(b)

    2,398       237,354  

Bunge Ltd.

    5,674       525,639  

Campbell Soup Co.

    8,262       330,067  

Conagra Brands Inc.

    18,912       608,966  

Darling Ingredients Inc.(a)

    6,427       543,210  

Flowers Foods Inc.

    8,217       203,371  

Freshpet Inc.(a)

    1,731       269,880  

General Mills Inc.

    24,192       1,495,066  

Hain Celestial Group Inc. (The)(a)

    3,433       154,039  

Hershey Co. (The)

    5,804       1,017,731  

Hormel Foods Corp.

    11,277       477,243  

Ingredion Inc.

    2,714       258,454  

JM Smucker Co. (The)

    4,301       528,421  

Kellogg Co.

    10,109       619,682  

Kraft Heinz Co. (The)

    26,481       950,403  

Lamb Weston Holdings Inc.

    5,698       321,652  
Security   Shares     Value  

Food Products (continued)

   

Lancaster Colony Corp.

    756     $         128,520  

McCormick & Co. Inc./MD, NVS

    9,911       795,160  

Mondelez International Inc., Class A

    55,493       3,370,645  

Pilgrim’s Pride Corp.(a)

    2,101       59,164  

Post Holdings Inc.(a)

    2,387       242,233  

Seaboard Corp.

    10       38,500  

Tyson Foods Inc., Class A

    11,764       940,767  
   

 

 

 
   

 

 

 

15,550,068

 

 

Gas Utilities — 0.1%

   

Atmos Energy Corp.

    5,177       476,905  

National Fuel Gas Co.

    3,589       206,116  

New Jersey Resources Corp.

    4,024       152,147  

ONE Gas Inc.

    2,120       142,676  

Southwest Gas Holdings Inc.

    2,231       154,497  

Spire Inc.

    2,088       131,043  

UGI Corp.

    8,126       352,750  
   

 

 

 
   

 

 

 

1,616,134

 

 

Health Care Equipment & Supplies — 3.4%

   

Abbott Laboratories

    70,532       9,090,870  

ABIOMED Inc.(a)

    1,822       604,977  

Align Technology Inc.(a)

    2,928       1,828,155  

Baxter International Inc.

    19,947       1,575,015  

Becton Dickinson and Co.

    11,393       2,729,649  

Boston Scientific Corp.(a)

    56,816       2,450,474  

Cooper Companies Inc. (The)

    1,959       816,746  

Danaher Corp.

    25,278       7,880,922  

DENTSPLY SIRONA Inc.

    8,572       490,404  

Dexcom Inc.(a)

    3,860       2,405,591  

Edwards Lifesciences Corp.(a)

    24,729       2,963,029  

Envista Holdings Corp.(a)

    6,435       251,609  

Globus Medical Inc., Class A(a)

    3,171       244,706  

Haemonetics Corp.(a)

    2,032       139,619  

Hill-Rom Holdings Inc.

    2,606       403,669  

Hologic Inc.(a)

    10,116       741,604  

ICU Medical Inc.(a)

    787       184,260  

IDEXX Laboratories Inc.(a)

    3,395       2,261,545  

Insulet Corp.(a)

    2,749       852,245  

Integra LifeSciences Holdings Corp.(a)(b)

    2,875       191,073  

Intuitive Surgical Inc.(a)

    14,183       5,121,907  

Masimo Corp.(a)

    1,986       563,110  

Medtronic PLC

    53,468       6,408,675  

Neogen Corp.(a)

    4,124       174,486  

Novocure Ltd.(a)

    3,512       360,226  

NuVasive Inc.(a)

    2,051       109,441  

Penumbra Inc.(a)

    1,380       381,639  

Quidel Corp.(a)(b)

    1,557       206,723  

ResMed Inc.

    5,807       1,526,718  

Shockwave Medical Inc.(a)

    1,404       300,035  

STAAR Surgical Co.(a)

    1,891       224,008  

STERIS PLC

    3,958       925,143  

Stryker Corp.

    13,335       3,548,044  

Tandem Diabetes Care Inc.(a)

    2,485       338,780  

Teleflex Inc.

    1,876       669,619  

Zimmer Biomet Holdings Inc.

    8,334       1,192,762  
   

 

 

 
   

 

 

 

60,157,478

 

 

Health Care Providers & Services — 2.5%

   

1Life Healthcare Inc.(a)

    4,619       100,048  

Acadia Healthcare Co. Inc.(a)

    3,639       225,618  

Agilon Health Inc.(a)

    1,872       45,864  
 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  15


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Providers & Services (continued)            

Amedisys Inc.(a)

    1,314     $         222,513  

AmerisourceBergen Corp.

    5,993       731,266  

Anthem Inc.

    9,683       4,213,364  

Cardinal Health Inc.

    11,577       553,496  

Centene Corp.(a)

    23,265       1,657,399  

Chemed Corp.

    621       299,477  

Cigna Corp.

    13,485       2,880,531  

Covetrus Inc.(a)

    3,846       77,651  

CVS Health Corp.

    52,451       4,682,825  

DaVita Inc.(a)

    2,677       276,373  

Encompass Health Corp.

    3,859       245,278  

Guardant Health Inc.(a)

    4,042       472,065  

HCA Healthcare Inc.

    9,769       2,446,744  

HealthEquity Inc.(a)

    3,318       219,585  

Henry Schein Inc.(a)

    5,535       422,597  

Humana Inc.

    5,127       2,374,621  

Laboratory Corp. of America Holdings(a)

    3,858       1,107,323  

LHC Group Inc.(a)

    1,288       173,352  

McKesson Corp.

    6,172       1,283,035  

Molina Healthcare Inc.(a)

    2,329       688,732  

Oak Street Health Inc.(a)(b)

    5,574       263,260  

Premier Inc., Class A

    4,879       190,037  

Quest Diagnostics Inc.

    4,876       715,699  

R1 RCM Inc.(a)

    5,341       115,900  

Tenet Healthcare Corp.(a)

    4,216       302,119  

UnitedHealth Group Inc.

    37,515       17,274,532  

Universal Health Services Inc., Class B

    3,028       375,775  
   

 

 

 
   

 

 

 

44,637,079

 

 

Health Care Technology — 0.2%            

American Well Corp., Class A(a)(b)

    7,165       64,485  

Cerner Corp.

    11,795       876,251  

GoodRx Holdings Inc., Class A(a)(b)

    2,534       113,016  

Inovalon Holdings Inc., Class A(a)

    3,123       127,387  

Omnicell Inc.(a)

    1,736       309,269  

Teladoc Health Inc.(a)

    6,354       950,495  

Veeva Systems Inc., Class A(a)

    5,513       1,747,676  
   

 

 

 
   

 

 

 

4,188,579

 

 

Hotels, Restaurants & Leisure — 2.0%            

Airbnb Inc., Class A(a)

    13,429       2,291,793  

Aramark

    10,298       375,671  

Booking Holdings Inc.(a)

    1,630       3,945,871  

Boyd Gaming Corp.(a)

    3,226       205,754  

Caesars Entertainment Inc.(a)

    8,516       932,161  

Carnival Corp.(a)

    31,597       700,190  

Chipotle Mexican Grill Inc.(a)

    1,122       1,996,072  

Choice Hotels International Inc.

    1,309       184,072  

Churchill Downs Inc.

    1,418       326,140  

Cracker Barrel Old Country Store Inc.

    961       127,976  

Darden Restaurants Inc.

    5,201       749,672  

Domino’s Pizza Inc.

    1,471       719,275  

DraftKings Inc., Class A(a)(b)

    13,143       612,332  

Expedia Group Inc.(a)

    5,734       942,727  

Hilton Worldwide Holdings Inc.(a)

    11,121       1,600,868  

Hyatt Hotels Corp., Class A(a)

    1,617       137,768  

Las Vegas Sands Corp.(a)

    13,398       519,976  

Marriott International Inc./MD, Class A(a)

    10,857       1,737,337  

Marriott Vacations Worldwide Corp.

    1,675       263,344  

McDonald’s Corp.

    29,713       7,296,027  

MGM Resorts International

    15,959       752,627  
Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)            

Norwegian Cruise Line Holdings Ltd.(a)(b)

    14,752     $         379,422  

Penn National Gaming Inc.(a)

    6,607       473,061  

Planet Fitness Inc., Class A(a)

    3,327       264,663  

Royal Caribbean Cruises Ltd.(a)

    8,870       748,894  

Scientific Games Corp./DE, Class A(a)

    3,833       306,832  

Starbucks Corp.

    46,898       4,974,471  

Texas Roadhouse Inc.

    2,633       233,837  

Vail Resorts Inc.

    1,587       547,055  

Wendy’s Co. (The)

    7,513       167,540  

Wyndham Hotels & Resorts Inc.

    3,720       314,228  

Wynn Resorts Ltd.(a)

    4,194       376,621  

Yum! Brands Inc.

    11,797       1,473,917  
   

 

 

 
   

 

 

 

36,678,194

 

 

Household Durables — 0.4%            

Cricut Inc., Class A(a)

    976       27,650  

DR Horton Inc.

    13,007       1,161,135  

Garmin Ltd.

    6,088       874,237  

Helen of Troy Ltd.(a)

    978       220,001  

Leggett & Platt Inc.

    5,493       257,347  

Lennar Corp., Class A

    10,961       1,095,333  

Lennar Corp., Class B

    662       54,337  

Mohawk Industries Inc.(a)

    2,231       395,355  

Newell Brands Inc.

    15,048       344,449  

NVR Inc.(a)

    133       651,008  

PulteGroup Inc.

    10,355       497,868  

Tempur Sealy International Inc.

    7,819       347,711  

Toll Brothers Inc.

    4,486       269,923  

TopBuild Corp.(a)

    1,314       337,659  

Whirlpool Corp.

    2,524       532,135  
   

 

 

 
   

 

 

 

7,066,148

 

 

Household Products — 1.1%            

Church & Dwight Co. Inc.

    9,698       847,217  

Clorox Co. (The)

    4,901       798,912  

Colgate-Palmolive Co.

    33,435       2,547,413  

Energizer Holdings Inc.

    2,379       86,762  

Kimberly-Clark Corp.

    13,437       1,739,957  

Procter & Gamble Co. (The)

    96,577       13,809,545  

Reynolds Consumer Products Inc.

    2,412       65,076  
   

 

 

 
   

 

 

 

19,894,882

 

 

Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    26,501       665,970  

Clearway Energy Inc., Class A

    1,380       45,526  

Clearway Energy Inc., Class C

    3,257       115,559  

Vistra Corp.

    18,992       372,053  
   

 

 

 
   

 

 

 

1,199,108

 

 

Industrial Conglomerates — 0.9%            

3M Co.

    22,994       4,108,568  

General Electric Co.

    43,625       4,574,954  

Honeywell International Inc.

    27,467       6,004,835  

Roper Technologies Inc.

    4,208       2,052,957  
   

 

 

 
   

 

 

 

16,741,314

 

 

Insurance — 2.0%            

Aflac Inc.

    24,623       1,321,516  

Alleghany Corp.(a)

    550       358,259  

Allstate Corp. (The)

    11,799       1,459,182  

American Financial Group Inc./OH

    2,637       358,737  

American International Group Inc.

    34,126       2,016,505  

Aon PLC, Class A

    8,951       2,863,604  

Arch Capital Group Ltd.(a)

    15,803       660,881  
 

 

 

16  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Insurance (continued)            

Arthur J Gallagher & Co.

    8,189     $         1,373,050  

Assurant Inc.

    2,347       378,595  

Athene Holding Ltd., Class A(a)

    5,154       448,450  

Axis Capital Holdings Ltd.

    2,973       154,804  

Brighthouse Financial Inc.(a)

    3,478       174,700  

Brown & Brown Inc.

    9,321       588,248  

Chubb Ltd.

    17,409       3,401,370  

Cincinnati Financial Corp.

    5,902       716,739  

CNA Financial Corp.

    1,082       48,539  

Enstar Group Ltd.(a)

    519       119,775  

Erie Indemnity Co., Class A, NVS

    1,015       208,897  

Everest Re Group Ltd.

    1,611       421,277  

Fidelity National Financial Inc.

    11,386       545,503  

First American Financial Corp.

    4,506       329,569  

Globe Life Inc.

    3,682       327,772  

Hanover Insurance Group Inc. (The)

    1,485       187,110  

Hartford Financial Services Group Inc. (The)

    13,855       1,010,445  

Kemper Corp.

    2,411       153,050  

Lincoln National Corp.

    7,049       508,585  

Loews Corp.

    8,110       454,728  

Markel Corp.(a)

    552       724,848  

Marsh & McLennan Companies Inc.

    20,107       3,353,848  

Mercury General Corp.

    1,080       58,849  

MetLife Inc.

    29,063       1,825,156  

Old Republic International Corp.

    11,157       288,185  

Primerica Inc.

    1,612       271,203  

Principal Financial Group Inc.

    9,960       668,216  

Progressive Corp. (The)

    23,162       2,197,611  

Prudential Financial Inc.

    15,435       1,698,622  

Reinsurance Group of America Inc.

    2,775       327,672  

RenaissanceRe Holdings Ltd.

    1,880       266,584  

RLI Corp.

    1,660       179,795  

Selective Insurance Group Inc.

    2,417       189,420  

Travelers Companies Inc. (The)

    9,955       1,601,560  

Unum Group

    8,302       211,452  

W R Berkley Corp.

    5,491       437,084  

White Mountains Insurance Group Ltd.

    129       136,094  

Willis Towers Watson PLC

    5,150       1,247,742  
   

 

 

 
   

 

 

 

36,273,831

 

 

Interactive Media & Services — 6.0%            

Alphabet Inc., Class A(a)

    11,980       35,471,821  

Alphabet Inc., Class C, NVS(a)

    11,209       33,239,281  

ANGI Inc.(a)(b)

    3,021       37,853  

Bumble Inc., Class A(a)(b)

    2,762       145,060  

Cargurus Inc.(a)

    3,490       117,055  

IAC/InterActiveCorp.(a)

    3,367       513,030  

Match Group Inc.(a)

    11,035       1,663,857  

Meta Platforms Inc, Class A(a)

    94,841       30,687,702  

Pinterest Inc., Class A(a)

    22,159       989,178  

Snap Inc., Class A, NVS(a)

    41,577       2,186,119  

TripAdvisor Inc.(a)

    3,897       128,484  

Twitter Inc.(a)

    31,840       1,704,714  

Vimeo Inc.(a)

    6,270       211,487  

Ziff Davis Inc.(a)

    1,923       246,663  

ZoomInfo Technologies Inc., Class A(a)

    7,126       479,010  
   

 

 

 
   

 

 

 

107,821,314

 

 

Internet & Direct Marketing Retail — 3.6%            

Amazon.com Inc.(a)

    17,329       58,440,839  

Chewy Inc., Class A(a)(b)

    3,376       255,901  
Security   Shares     Value  
Internet & Direct Marketing Retail (continued)            

ContextLogic Inc., Class A(a)(b)

    12,915     $         65,867  

DoorDash Inc., Class A(a)

    6,113       1,190,812  

eBay Inc.

    25,938       1,989,963  

Etsy Inc.(a)

    5,050       1,265,984  

Qurate Retail Inc., Series A

    14,958       156,162  

Stitch Fix Inc., Class A(a)(b)

    2,865       99,129  

Wayfair Inc., Class A(a)(b)

    3,086       768,723  
   

 

 

 
   

 

 

 

64,233,380

 

 

IT Services — 4.9%            

Accenture PLC, Class A

    25,229       9,051,913  

Affirm Holdings Inc.(a)

    3,710       602,875  

Akamai Technologies Inc.(a)

    6,427       677,791  

Amdocs Ltd.

    5,093       396,439  

Automatic Data Processing Inc.

    16,795       3,770,310  

Broadridge Financial Solutions Inc.

    4,636       827,109  

Cloudflare Inc., Class A(a)

    10,512       2,046,897  

Cognizant Technology Solutions Corp., Class A

    20,972       1,637,703  

Concentrix Corp.

    1,741       309,341  

DXC Technology Co.(a)

    10,051       327,361  

EPAM Systems Inc.(a)

    2,254       1,517,483  

Euronet Worldwide Inc.(a)

    2,088       234,253  

Fastly Inc., Class A(a)(b)

    4,235       214,333  

Fidelity National Information Services Inc.

    24,507       2,713,905  

Fiserv Inc.(a)

    23,623       2,326,629  

FleetCor Technologies Inc.(a)

    3,297       815,711  

Gartner Inc.(a)

    3,338       1,107,916  

Genpact Ltd.

    6,889       339,972  

Global Payments Inc.

    11,722       1,676,129  

GoDaddy Inc., Class A(a)

    6,718       464,684  

International Business Machines Corp.

    35,639       4,458,439  

Jack Henry & Associates Inc.

    2,905       483,624  

LiveRamp Holdings Inc.(a)

    2,766       148,009  

Mastercard Inc., Class A

    34,658       11,628,452  

Maximus Inc.

    2,353       198,993  

MongoDB Inc.(a)

    2,579       1,344,407  

Okta Inc.(a)

    4,990       1,233,428  

Paychex Inc.

    12,779       1,575,395  

PayPal Holdings Inc.(a)

    46,748       10,873,117  

Shift4 Payments Inc., Class A(a)(b)

    1,885       119,000  

Snowflake Inc., Class A(a)

    9,044       3,200,129  

SolarWinds Corp.

    1,328       21,381  

Square Inc., Class A(a)(b)

    15,791       4,018,809  

Twilio Inc., Class A(a)

    6,623       1,929,677  

VeriSign Inc.(a)

    3,883       864,628  

Visa Inc., Class A

    67,144       14,219,085  

Western Union Co. (The)

    15,942       290,463  

WEX Inc.(a)

    1,785       267,215  
   

 

 

 
   

 

 

 

87,933,005

 

 

Leisure Products — 0.2%            

Brunswick Corp./DE

    3,133       291,651  

Callaway Golf Co.(a)

    4,674       126,432  

Hasbro Inc.

    5,139       492,111  

Mattel Inc.(a)

    14,130       308,175  

Peloton Interactive Inc., Class A(a)

    10,715       979,780  

Polaris Inc.

    2,211       254,154  

YETI Holdings Inc.(a)

    3,489       343,073  
   

 

 

 
   

 

 

 

2,795,376

 

 

Life Sciences Tools & Services — 1.5%            

10X Genomics Inc., Class A(a)

    3,616       583,153  
 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  17


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Life Sciences Tools & Services (continued)            

Agilent Technologies Inc.

    12,108     $ 1,906,889  

Avantor Inc.(a)

    23,310               941,258  

Berkeley Lights Inc.(a)(b)

    1,650       38,363  

Bio-Rad Laboratories Inc., Class A(a)

    852       677,067  

Bio-Techne Corp.

    1,535       803,803  

Bruker Corp.

    4,049       325,135  

Charles River Laboratories International Inc.(a)

    2,003       898,706  

Illumina Inc.(a)

    5,814       2,413,159  

IQVIA Holdings Inc.(a)

    7,647       1,999,079  

Maravai LifeSciences Holdings Inc., Class A(a)

    4,352       184,046  

Medpace Holdings Inc.(a)

    1,144       259,173  

Mettler-Toledo International Inc.(a)

    922       1,365,371  

NeoGenomics Inc.(a)

    4,901       225,446  

Pacific Biosciences of California Inc.(a)

    7,942       210,304  

PerkinElmer Inc.

    4,452       787,514  

PPD Inc.(a)

    4,502       212,359  

Repligen Corp.(a)

    2,015       585,358  

Sotera Health Co.(a)

    3,951       97,590  

Syneos Health Inc.(a)

    4,072       380,080  

Thermo Fisher Scientific Inc.

    15,652       9,908,812  

Waters Corp.(a)

    2,449       900,130  

West Pharmaceutical Services Inc.

    2,948       1,267,286  
   

 

 

 
   

 

 

 

26,970,081

 

 

Machinery — 1.6%            

AGCO Corp.

    2,453       299,781  

Allison Transmission Holdings Inc.

    4,434       147,918  

Caterpillar Inc.

    21,756       4,438,442  

Chart Industries Inc.(a)

    1,422       252,433  

Colfax Corp.(a)

    5,169       266,824  

Crane Co.

    2,048       211,517  

Cummins Inc.

    5,729       1,374,043  

Deere & Co.

    11,276       3,859,888  

Donaldson Co. Inc.

    4,883       293,029  

Dover Corp.

    5,728       968,490  

Flowserve Corp.

    5,401       181,582  

Fortive Corp.

    14,301       1,082,729  

Gates Industrial Corp. PLC(a)

    3,786       62,242  

Graco Inc.

    6,858       515,584  

IDEX Corp.

    3,003       668,378  

Illinois Tool Works Inc.

    11,358       2,588,147  

Ingersoll Rand Inc.(a)

    16,167       869,138  

ITT Inc.

    3,502       329,433  

Lincoln Electric Holdings Inc.

    2,365       336,776  

Middleby Corp. (The)(a)

    2,165       394,983  

Nikola Corp.(a)(b)

    8,104       95,627  

Nordson Corp.

    2,129       541,213  

Oshkosh Corp.

    2,723       291,361  

Otis Worldwide Corp.

    17,030       1,367,679  

PACCAR Inc.

    13,825       1,238,997  

Parker-Hannifin Corp.

    5,151       1,527,735  

Pentair PLC

    6,618       489,533  

RBC Bearings Inc.(a)

    1,135       265,511  

Snap-on Inc.

    2,170       441,009  

Stanley Black & Decker Inc.

    6,514       1,170,761  

Timken Co. (The)

    2,687       190,643  

Toro Co. (The)

    4,306       411,094  

Westinghouse Air Brake Technologies Corp.

    7,542       684,286  

Woodward Inc.

    2,538       286,667  
Security   Shares     Value  
Machinery (continued)            

Xylem Inc./NY

    7,180     $         937,636  
   

 

 

 
   

 

 

 

29,081,109

 

 

Marine — 0.0%            

Kirby Corp.(a)

    2,440       127,880  
   

 

 

 
Media — 1.1%            

Altice USA Inc., Class A(a)(b)

    9,320       151,916  

Cable One Inc.

    198       338,820  

Charter Communications Inc., Class A(a)

    5,038       3,400,096  

Comcast Corp., Class A

    182,228       9,371,986  

Discovery Inc., Class A(a)(b)

    6,472       151,704  

Discovery Inc., Class C, NVS(a)

    12,360       278,842  

DISH Network Corp., Class A(a)

    10,061       413,205  

Fox Corp., Class A, NVS

    12,904       512,805  

Fox Corp., Class B

    5,700       210,672  

Interpublic Group of Companies Inc. (The)

    15,680       573,418  

Liberty Broadband Corp., Class A(a)

    940       151,124  

Liberty Broadband Corp., Class C, NVS(a)

    5,792       940,910  

Liberty Media Corp.-Liberty SiriusXM, Class A(a)

    3,034       151,032  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    6,381       314,711  

New York Times Co. (The), Class A

    6,667       363,951  

News Corp., Class A, NVS

    15,761       360,927  

News Corp., Class B

    4,750       107,160  

Nexstar Media Group Inc., Class A

    1,617       242,437  

Omnicom Group Inc.

    8,479       577,250  

Sirius XM Holdings Inc.(b)

    37,174       226,390  

TEGNA Inc.

    8,632       169,705  

ViacomCBS Inc., Class B, NVS

    24,087       872,431  
   

 

 

 
   

 

 

 

19,881,492

 

 

Metals & Mining — 0.4%            

Alcoa Corp.

    7,457       342,649  

Cleveland-Cliffs Inc.(a)

    18,145       437,476  

Commercial Metals Co.

    4,696       151,117  

Freeport-McMoRan Inc.

    58,579       2,209,600  

MP Materials Corp.(a)(b)

    2,980       100,873  

Newmont Corp.

    31,888       1,721,952  

Nucor Corp.

    11,720       1,308,538  

Reliance Steel & Aluminum Co.

    2,476       361,892  

Royal Gold Inc.

    2,534       250,917  

Steel Dynamics Inc.

    7,738       511,327  

United States Steel Corp.

    10,780       284,484  
   

 

 

 
   

 

 

 

7,680,825

 

 

Mortgage Real Estate Investment — 0.1%            

AGNC Investment Corp.

    20,945       333,444  

Annaly Capital Management Inc.

    55,969       473,498  

Blackstone Mortgage Trust Inc., Class A

    6,460       212,534  

New Residential Investment Corp.

    18,880       214,477  

Starwood Property Trust Inc.

    11,550       294,178  
   

 

 

 
   

 

 

 

1,528,131

 

 

Multi-Utilities — 0.6%            

Ameren Corp.

    10,261       864,900  

Avista Corp.

    2,687       106,969  

Black Hills Corp.

    2,489       165,220  

CenterPoint Energy Inc.

    23,506       612,096  

CMS Energy Corp.

    11,558       697,525  

Consolidated Edison Inc.

    14,100       1,063,140  

Dominion Energy Inc.

    32,031       2,432,114  

DTE Energy Co.

    7,679       870,415  

MDU Resources Group Inc.

    8,297       254,967  
 

 

 

18  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Multi-Utilities (continued)            

NiSource Inc.

    15,667     $         386,505  

NorthWestern Corp.

    2,132       121,226  

Public Service Enterprise Group Inc.

    20,174       1,287,101  

Sempra Energy

    12,629       1,611,839  

WEC Energy Group Inc.

    12,586       1,133,495  
   

 

 

 
   

 

 

 

11,607,512

 

 

Multiline Retail — 0.5%            

Dollar General Corp.

    9,425       2,087,826  

Dollar Tree Inc.(a)

    9,256       997,426  

Kohl’s Corp.

    6,120       297,004  

Ollie’s Bargain Outlet Holdings Inc.(a)

    2,253       152,438  

Target Corp.

    19,669       5,106,466  
   

 

 

 
   

 

 

 

8,641,160

 

 

Oil, Gas & Consumable Fuels — 2.5%            

APA Corp.

    15,292       400,803  

Cheniere Energy Inc.(a)

    9,268       958,311  

Chevron Corp.

    76,940       8,808,861  

ConocoPhillips

    53,433       3,980,224  

Continental Resources Inc./OK

    2,494       121,732  

Coterra Energy Inc.

    32,470       692,261  

Devon Energy Corp.

    25,124       1,006,970  

Diamondback Energy Inc.

    6,791       727,927  

DTE Midstream LLC(a)

    3,916       187,811  

EOG Resources Inc.

    23,068       2,132,867  

EQT Corp.(a)

    12,033       239,577  

Equitrans Midstream Corp.

    16,642       171,579  

Exxon Mobil Corp.

    168,434       10,858,940  

Hess Corp.

    10,914       901,169  

HollyFrontier Corp.

    6,168       208,478  

Kinder Morgan Inc.

    77,778       1,302,782  

Marathon Oil Corp.

    30,956       505,202  

Marathon Petroleum Corp.

    25,466       1,678,973  

New Fortress Energy Inc.

    1,649       49,470  

Occidental Petroleum Corp.

    35,396       1,186,828  

ONEOK Inc.

    17,695       1,125,756  

Ovintiv Inc.

    10,580       396,962  

Phillips 66

    17,477       1,306,930  

Pioneer Natural Resources Co.

    9,053       1,692,730  

Targa Resources Corp.

    9,012       492,686  

Texas Pacific Land Corp.(b)

    248       315,870  

Valero Energy Corp.

    16,232       1,255,221  

Williams Companies Inc. (The)

    48,349       1,358,124  
   

 

 

 
   

 

 

 

44,065,044

 

 

Paper & Forest Products — 0.0%            

Louisiana-Pacific Corp.

    3,799       223,875  

Sylvamo Corp.(a)

    1,411       39,734  
   

 

 

 
   

 

 

 

263,609

 

 

Personal Products — 0.2%            

Coty Inc., Class A(a)

    14,195       120,374  

Estee Lauder Companies Inc. (The), Class A

    9,200       2,983,836  

Herbalife Nutrition Ltd.(a)

    4,059       188,337  
   

 

 

 
   

 

 

 

3,292,547

 

 

Pharmaceuticals — 3.2%            

Bristol-Myers Squibb Co.

    88,383       5,161,567  

Catalent Inc.(a)

    6,778       934,415  

Elanco Animal Health Inc.(a)

    18,694       614,659  

Eli Lilly & Co.

    31,589       8,047,614  

Jazz Pharmaceuticals PLC(a)

    2,436       324,085  

Johnson & Johnson

    104,735       17,059,237  
Security   Shares     Value  
Pharmaceuticals (continued)            

Merck & Co. Inc.

    100,712     $         8,867,691  

Nektar Therapeutics(a)

    7,410       112,336  

Organon & Co.

    10,258       376,981  

Perrigo Co. PLC

    5,144       232,252  

Pfizer Inc.

    223,063       9,756,776  

Royalty Pharma PLC, Class A

    14,141       558,994  

Viatris Inc.

    47,695       636,728  

Zoetis Inc.

    18,827       4,070,397  
   

 

 

 
   

 

 

 

56,753,732

 

 

Professional Services — 0.7%            

ASGN Inc.(a)

    2,101       251,406  

Booz Allen Hamilton Holding Corp.

    5,394       468,523  

CACI International Inc., Class A(a)

    940       270,381  

Clarivate PLC(a)(b)

    14,846       348,139  

CoStar Group Inc.(a)

    15,760       1,356,148  

Dun & Bradstreet Holdings Inc.(a)

    5,487       103,375  

Equifax Inc.

    4,862       1,348,865  

FTI Consulting Inc.(a)

    1,386       199,473  

IHS Markit Ltd.

    15,905       2,079,101  

Insperity Inc.

    1,448       181,000  

Jacobs Engineering Group Inc.

    5,200       730,184  

KBR Inc.

    5,579       236,773  

Leidos Holdings Inc.

    5,648       564,687  

ManpowerGroup Inc.

    2,164       209,151  

Nielsen Holdings PLC

    14,188       287,307  

Robert Half International Inc.

    4,428       500,674  

Science Applications International Corp.

    2,376       213,317  

TransUnion

    7,554       870,901  

TriNet Group Inc.(a)

    1,527       154,609  

Upwork Inc.(a)

    4,786       225,516  

Verisk Analytics Inc.

    6,439       1,353,928  
   

 

 

 
   

 

 

 

11,953,458

 

 

Real Estate Management & Development — 0.2%  

CBRE Group Inc., Class A(a)

    13,397       1,394,360  

Howard Hughes Corp. (The)(a)

    1,570       136,794  

Jones Lang LaSalle Inc.(a)

    2,024       522,658  

Opendoor Technologies Inc.(a)(b)

    15,200       360,392  

Redfin Corp.(a)

    4,185       214,858  

Zillow Group Inc., Class A(a)

    1,517       160,377  

Zillow Group Inc., Class C, NVS(a)(b)

    6,754       699,917  
   

 

 

 
   

 

 

 

3,489,356

 

 

Road & Rail — 1.1%            

AMERCO

    374       275,634  

CSX Corp.

    89,386       3,233,092  

JB Hunt Transport Services Inc.

    3,345       659,601  

Kansas City Southern

    3,624       1,124,346  

Knight-Swift Transportation Holdings Inc.

    6,622       375,401  

Landstar System Inc.

    1,531       269,165  

Lyft Inc., Class A(a)

    11,594       531,817  

Norfolk Southern Corp.

    9,782       2,866,615  

Old Dominion Freight Line Inc.

    3,743       1,277,673  

Saia Inc.(a)

    1,050       328,272  

TuSimple Holdings Inc., Class A(a)(b)

    1,328       51,951  

Uber Technologies Inc.(a)

    64,283       2,816,881  

Union Pacific Corp.

    25,934       6,260,468  

XPO Logistics Inc.(a)

    3,923       336,593  
   

 

 

 
         

 

20,407,509

 
Semiconductors & Semiconductor Equipment — 5.4%  

Advanced Micro Devices Inc.(a)

    48,236       5,799,414  
 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  19


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Allegro MicroSystems Inc.(a)(b)

    2,194     $ 73,192  

Amkor Technology Inc.

    3,998       87,636  

Analog Devices Inc.

    21,365       3,706,614  

Applied Materials Inc.

    36,346       4,966,681  

Broadcom Inc.

    16,321       8,677,386  

Brooks Automation Inc.

    2,966               345,391  

Cirrus Logic Inc.(a)

    2,314       186,994  

Enphase Energy Inc.(a)

    5,371       1,244,085  

Entegris Inc.

    5,410       761,620  

First Solar Inc.(a)

    3,946       471,902  

Intel Corp.

    161,409       7,909,041  

KLA Corp.

    6,046       2,253,707  

Lam Research Corp.

    5,657       3,188,116  

Lattice Semiconductor Corp.(a)

    5,441       377,823  

Marvell Technology Inc.

    32,426       2,221,181  

Microchip Technology Inc.

    21,870       1,620,348  

Micron Technology Inc.

    44,690       3,088,079  

MKS Instruments Inc.

    2,253       338,063  

Monolithic Power Systems Inc.

    1,723       905,368  

NVIDIA Corp.

    99,145       25,348,402  

NXP Semiconductors NV

    10,500       2,109,030  

ON Semiconductor Corp.(a)

    17,292       831,226  

Power Integrations Inc.

    2,439       251,729  

Qorvo Inc.(a)

    4,434       745,932  

QUALCOMM Inc.

    44,877       5,970,436  

Semtech Corp.(a)

    2,597       220,823  

Silicon Laboratories Inc.(a)

    1,649       311,265  

Skyworks Solutions Inc.

    6,589       1,101,220  

SolarEdge Technologies Inc.(a)

    2,108       747,665  

Teradyne Inc.

    6,541       904,228  

Texas Instruments Inc.

    36,730       6,886,140  

Universal Display Corp.

    1,743       319,318  

Wolfspeed Inc.(a)

    4,675       561,514  

Xilinx Inc.

    9,844       1,771,920  
   

 

 

 
   

 

 

 

96,303,489

 

 

Software — 10.7%            

ACI Worldwide Inc.(a)

    4,703       144,288  

Adobe Inc.(a)

    18,954       12,326,923  

Alteryx Inc., Class A(a)

    2,390       174,924  

Anaplan Inc.(a)

    5,874       383,044  

ANSYS Inc.(a)

    3,481       1,321,318  

Appian Corp.(a)

    1,579       156,968  

AppLovin Corp., Class A(a)

    1,074       105,520  

Asana Inc., Class A(a)

    3,115       423,017  

Aspen Technology Inc.(a)

    2,766       433,405  

Autodesk Inc.(a)

    8,719       2,769,242  

Avalara Inc.(a)

    3,417       613,830  

Bentley Systems Inc., Class B(b)

    7,329       433,510  

Bill.com Holdings Inc.(a)

    3,522       1,036,560  

Black Knight Inc.(a)

    6,174       432,859  

Blackbaud Inc.(a)

    1,606       114,042  

Blackline Inc.(a)(b)

    2,121       269,091  

Cadence Design Systems Inc.(a)

    11,045       1,912,000  

CDK Global Inc.

    4,650       202,368  

Ceridian HCM Holding Inc.(a)(b)

    5,296       663,324  

Citrix Systems Inc.

    4,923       466,356  

Consensus Cloud Solutions Inc.(a)(b)

    641       40,595  

Coupa Software Inc.(a)

    2,920       664,884  

Crowdstrike Holdings Inc., Class A(a)

    7,951       2,240,592  

Datadog Inc., Class A(a)

    9,567       1,598,167  
Security   Shares     Value  
Software (continued)            

Digital Turbine Inc.(a)(b)

    3,489     $         300,263  

DocuSign Inc.(a)

    7,711       2,145,894  

Dolby Laboratories Inc., Class A

    2,601       229,798  

Dropbox Inc., Class A(a)

    11,402       347,647  

Duck Creek Technologies Inc.(a)

    2,996       94,374  

Dynatrace Inc.(a)

    7,827       587,025  

Elastic NV(a)

    2,848       494,156  

Fair Isaac Corp.(a)

    1,125       447,975  

Five9 Inc.(a)

    2,656       419,675  

Fortinet Inc.(a)

    5,408       1,818,927  

Guidewire Software Inc.(a)

    3,275       411,766  

HubSpot Inc.(a)

    1,780       1,442,209  

Intuit Inc.

    10,872       6,805,763  

MANDIANT Inc.(a)

    9,964       173,772  

Manhattan Associates Inc.(a)

    2,564       465,469  

McAfee Corp., Class A

    2,215       47,335  

Microsoft Corp.

    298,982       99,148,411  

MicroStrategy Inc., Class A(a)

    311       222,384  

nCino Inc.(a)(b)

    2,246       163,194  

NCR Corp.(a)

    5,243       207,308  

New Relic Inc.(a)

    2,111       171,329  

NortonLifeLock Inc.

    23,395       595,403  

Nuance Communications Inc.(a)

    11,451       630,378  

Nutanix Inc., Class A(a)

    8,058       276,470  

Oracle Corp.

    65,537       6,287,620  

Palantir Technologies Inc., Class A(a)

    62,545       1,618,665  

Palo Alto Networks Inc.(a)

    3,885       1,977,815  

Paycom Software Inc.(a)

    1,918       1,050,776  

Paylocity Holding Corp.(a)

    1,521       464,118  

Pegasystems Inc.

    1,606       190,664  

PTC Inc.(a)

    4,143       527,611  

Q2 Holdings Inc.(a)

    2,253       176,770  

Qualtrics International Inc., Class A(a)

    2,526       117,004  

Rapid7 Inc.(a)(b)

    2,226       286,597  

RingCentral Inc., Class A(a)

    3,268       796,673  

salesforce.com Inc.(a)

    38,652       11,583,618  

ServiceNow Inc.(a)

    7,878       5,496,953  

Smartsheet Inc., Class A(a)

    4,807       331,731  

Splunk Inc.(a)

    6,521       1,074,791  

SS&C Technologies Holdings Inc.

    8,799       699,257  

Synopsys Inc.(a)

    6,089       2,028,733  

Trade Desk Inc. (The), Class A(a)

    17,274       1,293,995  

Tyler Technologies Inc.(a)

    1,627       883,819  

UiPath Inc., Class A(a)

    10,209       513,002  

Unity Software Inc.(a)(b)

    6,312       955,069  

Varonis Systems Inc.(a)

    4,267       276,246  

Verint Systems Inc.(a)(b)

    2,545       118,597  

VMware Inc., Class A(a)

    3,177       481,951  

Workday Inc., Class A(a)

    7,541       2,186,739  

Workiva Inc.(a)(b)

    1,717       256,777  

Zendesk Inc.(a)

    4,729       481,412  

Zoom Video Communications Inc., Class A(a)

    8,618       2,366,934  

Zscaler Inc.(a)

    3,116       993,568  
   

 

 

 
   

 

 

 

192,091,257

 

 

Specialty Retail — 2.3%            

Advance Auto Parts Inc.

    2,578       581,390  

American Eagle Outfitters Inc.

    6,091       144,600  

AutoNation Inc.(a)

    1,743       211,112  

AutoZone Inc.(a)

    860       1,534,962  

Bath & Body Works Inc.

    10,475       723,718  
 

 

 

20  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialty Retail (continued)            

Best Buy Co. Inc.

    9,026     $ 1,103,338  

Burlington Stores Inc.(a)

    2,654               733,274  

CarMax Inc.(a)

    6,460       884,503  

Carvana Co.(a)

    3,372       1,022,323  

Dick’s Sporting Goods Inc.

    2,597       322,573  

Five Below Inc.(a)

    2,270       447,871  

Floor & Decor Holdings Inc., Class A(a)

    4,235       575,621  

Foot Locker Inc.

    3,595       171,374  

GameStop Corp., Class A(a)

    2,482       455,472  

Gap Inc. (The)

    8,613       195,429  

Home Depot Inc. (The)

    42,302       15,725,345  

Lithia Motors Inc.

    1,205       384,660  

Lowe’s Companies Inc.

    28,123       6,575,720  

Murphy USA Inc.

    991       161,483  

National Vision Holdings Inc.(a)

    3,190       196,632  

O’Reilly Automotive Inc.(a)

    2,752       1,712,625  

Penske Automotive Group Inc.

    1,199       127,154  

Petco Health & Wellness Co. Inc.(a)(b)

    2,934       72,558  

RH(a)

    687       453,166  

Ross Stores Inc.

    14,250       1,613,100  

TJX Companies Inc. (The)

    48,142       3,152,820  

Tractor Supply Co.

    4,563       990,947  

Ulta Beauty Inc.(a)

    2,170       797,171  

Victoria’s Secret & Co.(a)

    2,997       151,259  

Williams-Sonoma Inc.

    2,992       555,704  
   

 

 

 
   

 

 

 

41,777,904

 

 

Technology Hardware, Storage & Peripherals — 5.6%  

Apple Inc.

    624,775       93,591,295  

Dell Technologies Inc., Class C(a)

    11,077       1,218,359  

Hewlett Packard Enterprise Co.

    51,486       754,270  

HP Inc.

    47,933       1,453,808  

NetApp Inc.

    9,005       804,147  

Pure Storage Inc., Class A(a)

    10,748       288,691  

Seagate Technology Holdings PLC

    8,356       744,269  

Western Digital Corp.(a)

    12,052       630,199  

Xerox Holdings Corp.

    5,485       97,633  
   

 

 

 
   

 

 

 

    99,582,671

 

 

Textiles, Apparel & Luxury Goods — 0.8%            

Capri Holdings Ltd.(a)

    6,067       323,007  

Carter’s Inc.

    1,777       175,070  

Columbia Sportswear Co.

    1,394       144,753  

Crocs Inc.(a)

    2,489       401,849  

Deckers Outdoor Corp.(a)

    1,085       428,912  

Hanesbrands Inc.

    13,577       231,352  

Levi Strauss & Co., Class A

    3,206       83,933  

Lululemon Athletica Inc.(a)

    4,726       2,202,363  

Nike Inc., Class B

    50,850       8,506,697  

PVH Corp.(a)

    2,822       308,529  

Ralph Lauren Corp.

    1,972       250,779  

Skechers U.S.A. Inc., Class A(a)

    5,491       253,739  

Tapestry Inc.

    11,241       438,174  

Under Armour Inc., Class A(a)

    7,662       168,258  

Under Armour Inc., Class C, NVS(a)

    7,893       149,020  

VF Corp.

    13,073       952,760  
   

 

 

 
   

 

 

 

15,019,195

 

 

Thrifts & Mortgage Finance — 0.1%            

Essent Group Ltd.

    4,532       217,536  
Security   Shares     Value  
Thrifts & Mortgage Finance (continued)            

MGIC Investment Corp.

    13,303     $         214,976  

New York Community Bancorp. Inc.

    18,793       233,597  

Radian Group Inc.

    7,279       173,750  

Rocket Companies Inc., Class A

    5,526       91,068  

TFS Financial Corp.

    2,126       41,372  

UWM Holdings Corp.

    2,171       14,763  
   

 

 

 
   

 

 

 

987,062

 

 

Tobacco — 0.5%            

Altria Group Inc.

    73,227       3,230,043  

Philip Morris International Inc.

    62,006       5,862,047  
   

 

 

 
   

 

 

 

9,092,090

 

 

Trading Companies & Distributors — 0.3%            

Air Lease Corp.

    4,234       169,572  

Applied Industrial Technologies Inc.

    1,631       158,990  

Fastenal Co.

    22,885       1,306,276  

MSC Industrial Direct Co. Inc., Class A

    1,855       155,950  

SiteOne Landscape Supply Inc.(a)

    1,750       411,180  

United Rentals Inc.(a)

    2,888       1,094,869  

Univar Solutions Inc.(a)

    6,896       176,399  

Watsco Inc.

    1,286       372,400  

WW Grainger Inc.

    1,743       807,201  
   

 

 

 
   

 

 

 

4,652,837

 

 

Water Utilities — 0.1%            

American Water Works Co. Inc.

    7,242       1,261,412  

Essential Utilities Inc.

    8,756       412,145  
   

 

 

 
   

 

 

 

1,673,557

 

 

Wireless Telecommunication Services — 0.1%  

T-Mobile U.S. Inc.(a)

    23,270       2,676,748  

U.S. Cellular Corp.(a)

    602       18,403  
   

 

 

 
   

 

 

 

2,695,151

 

 

   

 

 

 

Total Common Stocks — 99.8%
(Cost: $766,953,568)

      1,788,668,589  
   

 

 

 
Short-Term Investments            

Money Market Funds — 1.1%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    18,130,752       18,139,818  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    2,816,000       2,816,000  
   

 

 

 
   

 

 

 

20,955,818

 

 

   

 

 

 

Total Short-Term Investments — 1.1%
(Cost: $20,950,721)

      20,955,818  
   

 

 

 

Total Investments in Securities — 100.9%

 

(Cost: $787,904,289)

      1,809,624,407  

Other Assets, Less Liabilities — (0.9)%

      (16,966,944
   

 

 

 

Net Assets — 100.0%

    $   1,792,657,463  
   

 

 

 

 

(a)

Non-income producing security.

(b)

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  21


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 16,762,800     $ 1,376,306 (a)    $     $ (197   $ 909     $ 18,139,818       18,130,752     $ 22,148 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    4,056,000             (1,240,000 )(a)                  2,816,000       2,816,000       77        

BlackRock Inc.

    4,641,334       147,507       (127,824     35,390       669,992       5,366,399       5,688       47,189        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 35,193     $  670,901     $ 26,322,217       $ 69,414     $  —  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

S&P 500 E-Mini Index

     16        12/17/21      $  3,678    $  119,858  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $  119,858  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $  419,687  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $  (58,062)  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

Futures contracts:

        

Average notional value of contracts — long

   $ 3,923,428  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

22  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Dow Jones U.S. ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1      Level 2      Level 3      Total  

Investments

           

Assets

           

Common Stocks

   $ 1,788,668,589      $      $      $ 1,788,668,589  

Money Market Funds

     20,955,818                      20,955,818  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,809,624,407      $      $      $ 1,809,624,407  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 119,858      $                     —      $                     —      $ 119,858  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E  O F  N V E S T M E N  T S

  23


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® U.S. Energy ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks

 

Electrical Equipment — 2.0%  

ChargePoint Holdings Inc.(a)(b)

    200,146      $       4,959,618  

Plug Power Inc.(a)(b)

    977,871        37,423,123  

Shoals Technologies Group Inc., Class A(a)(b)

    195,251        6,050,828  
    

 

 

 
    

 

 

 

48,433,569

 

 

Energy Equipment & Services — 7.8%  

Baker Hughes Co.

    1,408,852        35,334,008  

Halliburton Co.

    1,693,858        42,329,512  

NOV Inc.(a)

    744,447        10,437,147  

Schlumberger NV

    3,130,670        100,995,414  
    

 

 

 
    

 

 

 

189,096,081

 

 

Oil, Gas & Consumable Fuels — 86.5%  

Antero Midstream Corp.

    638,728        6,796,065  

APA Corp.

    720,802        18,892,220  

Cheniere Energy Inc.(a)

    447,725        46,294,765  

Chevron Corp.

    3,497,427        400,420,417  

ConocoPhillips

    2,518,670        187,615,728  

Continental Resources Inc./OK(b)

    124,226        6,063,471  

Coterra Energy Inc.

    1,521,494        32,438,252  

Devon Energy Corp.

    1,288,709        51,651,457  

Diamondback Energy Inc.

    345,221        37,004,239  

DTE Midstream LLC(a)

    184,420        8,844,783  

EOG Resources Inc.

    1,322,574        122,285,192  

EQT Corp.(a)

    581,484        11,577,346  

Exxon Mobil Corp.

    7,625,555        491,619,531  

Hess Corp.

    530,136        43,773,330  

HollyFrontier Corp.

    285,908        9,663,690  

Kinder Morgan Inc.

    4,122,984        69,059,982  

Marathon Oil Corp.

    1,498,366        24,453,333  

Marathon Petroleum Corp.

    1,416,249        93,373,297  

New Fortress Energy Inc.

    51,204        1,536,120  

Occidental Petroleum Corp.

    1,615,586        54,170,599  

ONEOK Inc.

    848,005        53,950,078  

Phillips 66

    905,563        67,718,001  

Pioneer Natural Resources Co.

    457,355        85,516,238  
Security   Shares      Value  
Oil, Gas & Consumable Fuels (continued)  

Targa Resources Corp.

    430,589      $ 23,540,301  

Texas Pacific Land Corp.

    11,260        14,341,524  

Valero Energy Corp.

    803,147        62,107,358  

Williams Companies Inc. (The)

    2,538,131        71,296,100  
    

 

 

 
    

 

 

 

2,096,003,417

 

 

Semiconductors & Semiconductor Equipment — 3.4%  

Enphase Energy Inc.(a)

    252,041        58,380,257  

First Solar Inc.(a)

    202,505        24,217,573  
    

 

 

 
    

 

 

 

82,597,830

 

 

    

 

 

 
Total Common Stocks — 99.7%
    (Cost: $2,148,107,769)
     2,416,130,897  
    

 

 

 

Short-Term Investments

 

Money Market Funds — 1.1%         

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    21,976,326        21,987,314  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    3,900,000        3,900,000  
    

 

 

 
    

 

 

 

25,887,314

 

 

    

 

 

 

Total Short-Term Investments — 1.1%

 

(Cost: $25,887,314)

       25,887,314  
    

 

 

 

Total Investments in Securities — 100.8%

 

(Cost: $2,173,995,083)

       2,442,018,211  

Other Assets, Less Liabilities — (0.8)%

 

     (19,169,892
    

 

 

 

Net Assets — 100.0%

 

  

 

$

 

2,422,848,319

 

 

    

 

 

 

 

(a)

Non-income producing security.

 
(b)

All or a portion of this security is on loan.

 
(c)

Affiliate of the Fund.

 
(d)

Annualized 7-day yield as of period end.

 
(e)

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
   

Shares

Held at
10/31/21

    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $     $ 21,987,452 (a)    $     $ (138   $     $ 21,987,314       21,976,326     $ 5,998 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    3,640,000       260,000 (a)                         3,900,000       3,900,000       127        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (138   $     $ 25,887,314       $ 6,125     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

24  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Energy ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description    Number of
Contracts
       Expiration
Date
       Notional
Amount
(000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

                 

E-Mini Energy Select Sector Index

     109          12/17/21        $  6,509        $ 384,501  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

   
      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 384,501  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

   
      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

     $445,931  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

     $443,109  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

 

    

 

$6,689,027

 

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 2,416,130,897        $                     —        $                     —        $ 2,416,130,897  

Money Market Funds

     25,887,314                            25,887,314  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,442,018,211        $        $        $ 2,442,018,211  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 384,501        $        $        $ 384,501  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E  O F  N V E S T M E N  T S

  25


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® U.S. Healthcare ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Biotechnology — 16.0%  

AbbVie Inc.

    982,618     $ 112,676,806  

Acceleron Pharma Inc.(a)

    29,351       5,112,357  

Alnylam Pharmaceuticals Inc.(a)

    65,880       10,511,813  

Amgen Inc.

    315,908       65,383,479  

Biogen Inc.(a)

    82,473       21,993,900  

BioMarin Pharmaceutical Inc.(a)

    101,120       8,011,738  

CureVac NV(a)(b)

    29,556       1,184,309  

Exact Sciences Corp.(a)(b)

    94,843       9,030,950  

Exelixis Inc.(a)

    172,207       3,704,173  

Gilead Sciences Inc.

    698,183       45,298,113  

Horizon Therapeutics PLC(a)

    121,202       14,533,332  

Incyte Corp.(a)

    102,366       6,856,475  

Ionis Pharmaceuticals Inc.(a)

    78,027       2,486,720  

Iovance Biotherapeutics Inc.(a)(b)

    81,941       1,991,986  

Mirati Therapeutics Inc.(a)

    21,836       4,127,441  

Moderna Inc.(a)

    188,138       64,947,119  

Natera Inc.(a)

    46,429       5,319,370  

Neurocrine Biosciences Inc.(a)

    52,039       5,485,431  

Novavax Inc.(a)(b)

    41,023       6,105,453  

Regeneron Pharmaceuticals Inc.(a)

    55,733       35,665,776  

Sage Therapeutics Inc.(a)

    28,583       1,153,610  

Sarepta Therapeutics Inc.(a)

    45,658       3,612,917  

Seagen Inc.(a)

    74,122       13,069,932  

Ultragenyx Pharmaceutical Inc.(a)

    35,828       3,006,686  

United Therapeutics Corp.(a)

    24,553       4,683,730  

Vertex Pharmaceuticals Inc.(a)

    144,061       26,641,201  
   

 

 

 
   

 

 

 

    482,594,817

 

 

Health Care Equipment & Supplies — 27.3%  

Abbott Laboratories

    966,043       124,513,282  

ABIOMED Inc.(a)

    24,572       8,158,887  

Align Technology Inc.(a)

    43,749       27,315,563  

Baxter International Inc.

    279,466       22,066,635  

Becton Dickinson and Co.

    158,705       38,024,131  

Boston Scientific Corp.(a)

    788,798       34,020,858  

Cooper Companies Inc. (The)

    26,890       11,210,979  

Danaher Corp.

    352,639       109,942,261  

DENTSPLY SIRONA Inc.

    120,423       6,889,400  

Dexcom Inc.(a)

    53,570       33,385,360  

Edwards Lifesciences Corp.(a)

    343,568       41,166,318  

Envista Holdings Corp.(a)

    89,497       3,499,333  

Globus Medical Inc., Class A(a)

    42,983       3,316,998  

Hill-Rom Holdings Inc.

    37,013       5,733,314  

Hologic Inc.(a)

    139,393       10,218,901  

ICU Medical Inc.(a)

    11,077       2,593,458  

IDEXX Laboratories Inc.(a)

    47,023       31,323,901  

Insulet Corp.(a)

    36,728       11,386,414  

Integra LifeSciences Holdings Corp.(a)

    40,059       2,662,321  

Intuitive Surgical Inc.(a)

    197,039       71,156,694  

Masimo Corp.(a)

    27,728       7,861,997  

Medtronic PLC

    746,719       89,501,739  

Novocure Ltd.(a)

    56,726       5,818,386  

Penumbra Inc.(a)

    18,789       5,196,098  

Quidel Corp.(a)(b)

    20,452       2,715,412  

ResMed Inc.

    79,947       21,018,866  

STERIS PLC

    47,402       11,079,743  

Stryker Corp.

    193,883       51,586,450  

Tandem Diabetes Care Inc.(a)

    33,957       4,629,358  

Teleflex Inc.

    25,969       9,269,375  
Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Zimmer Biomet Holdings Inc.

    115,997     $ 16,601,490  
   

 

 

 
   

 

 

 

823,863,922

 

 

Health Care Providers & Services — 17.0%  

Acadia Healthcare Co. Inc.(a)(b)

    49,198       3,050,276  

Agilon Health Inc.(a)

    37,868       927,766  

Amedisys Inc.(a)

    17,840       3,021,026  

Anthem Inc.

    136,212       59,269,927  

Cardinal Health Inc.

    161,065       7,700,518  

Centene Corp.(a)

    321,566       22,908,362  

Chemed Corp.

    8,554       4,125,166  

Cigna Corp.

    185,714       39,670,367  

DaVita Inc.(a)

    38,474       3,972,056  

Encompass Health Corp.

    54,302       3,451,435  

Guardant Health Inc.(a)

    49,963       5,835,179  

HCA Healthcare Inc.

    140,089       35,086,691  

Henry Schein Inc.(a)

    78,368       5,983,397  

Humana Inc.

    71,698       33,207,646  

Laboratory Corp. of America Holdings(a)

    53,580       15,378,532  

Molina Healthcare Inc.(a)

    31,982       9,457,717  

Oak Street Health Inc.(a)(b)

    54,555       2,576,633  

Premier Inc., Class A

    67,677       2,636,019  

Quest Diagnostics Inc.

    67,739       9,942,730  

Signify Health Inc., Class A(a)(b)

    35,067       563,527  

UnitedHealth Group Inc.

    523,234       240,933,560  

Universal Health Services Inc., Class B

    41,045       5,093,684  
   

 

 

 
   

 

 

 

    514,792,214

 

 

Health Care Technology — 1.7%  

Cerner Corp.

    164,294       12,205,401  

Certara Inc.(a)(b)

    46,135       1,905,837  

Teladoc Health Inc.(a)(b)

    83,939       12,556,435  

Veeva Systems Inc., Class A(a)(b)

    76,119       24,130,484  
   

 

 

 
   

 

 

 

50,798,157

 

 

Life Sciences Tools & Services — 11.4%  

10X Genomics Inc., Class A(a)

    46,339       7,473,090  

Adaptive Biotechnologies Corp.(a)(b)

    60,540       2,022,641  

Agilent Technologies Inc.

    169,078       26,628,094  

Avantor Inc.(a)

    322,094       13,006,156  

Bio-Rad Laboratories Inc., Class A(a)

    11,766       9,350,205  

Bio-Techne Corp.

    21,503       11,260,046  

Bruker Corp.

    56,925       4,571,077  

Charles River Laboratories International Inc.(a)

    27,683       12,420,808  

Illumina Inc.(a)

    81,109       33,665,102  

IQVIA Holdings Inc.(a)

    105,985       27,706,599  

Maravai LifeSciences Holdings Inc., Class A(a)

    56,511       2,389,850  

PerkinElmer Inc.

    62,218       11,005,742  

PPD Inc.(a)

    89,123       4,203,932  

QIAGEN NV(a)

    126,292       7,042,042  

Repligen Corp.(a)

    30,352       8,817,256  

Sotera Health Co.(a)(b)

    55,287       1,365,589  

Syneos Health Inc.(a)

    56,602       5,283,231  

Thermo Fisher Scientific Inc.(b)

    218,514       138,334,658  

West Pharmaceutical Services Inc.

    40,835       17,554,150  
   

 

 

 
   

 

 

 

344,100,268

 

 

Pharmaceuticals — 26.4%  

Bristol-Myers Squibb Co.

    1,242,403       72,556,335  

Catalent Inc.(a)

    90,230       12,439,108  

Elanco Animal Health Inc.(a)

    246,748       8,113,074  

Eli Lilly & Co.

    471,436       120,103,035  

Jazz Pharmaceuticals PLC(a)

    32,972       4,386,595  
 

 

 

26  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Healthcare ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Pharmaceuticals (continued)

 

Johnson & Johnson

    1,465,432     $ 238,689,564  

Merck & Co. Inc.

    1,409,029       124,065,004  

Nektar Therapeutics(a)(b)

    98,729       1,496,732  

Organon & Co.

    141,137       5,186,785  

Perrigo Co. PLC

    74,308       3,355,006  

Pfizer Inc.

    3,104,916       135,809,026  

Royalty Pharma PLC, Class A

    180,134       7,120,697  

Viatris Inc.

    670,337       8,948,999  

Zoetis Inc.

    264,047       57,086,961  
   

 

 

 
   

 

 

 

799,356,921

 

 

   

 

 

 

 

Total Common Stocks — 99.8%
(Cost: $2,336,372,672)

 

    3,015,506,299  
   

 

 

 

 

Short-Term Investments

 

 

Money Market Funds — 1.0%

 

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.05%(c)(d)(e)

    25,994,720       26,007,718  
Security   Shares     Value  

 

Money Market Funds (continued)

 

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(c)(d)

    4,517,000     $ 4,517,000  
   

 

 

 
   

 

 

 

30,524,718

 

 

   

 

 

 

Total Short-Term Investments — 1.0%
(Cost: $30,511,859)

 

    30,524,718  
   

 

 

 

Total Investments in Securities — 100.8%
(Cost: $2,366,884,531)

 

    3,046,031,017  

Other Assets, Less Liabilities — (0.8)%

      (24,142,657
   

 

 

 

Net Assets — 100.0%

   

 

$

 

  3,021,888,360

 

 

   

 

 

 

 

(a)

Non-income producing security.

 
(b)

All or a portion of this security is on loan.

 
(c)

Affiliate of the Fund.

 
(d)

Annualized 7-day yield as of period end.

 
(e)

All or a portion of this security was purchased with the cash collateral from loaned securities.

 
 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 33,909,140      $      $ (7,899,919 )(a)     $ (2,550    $ 1,047      $ 26,007,718        25,994,720      $ 27,664 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     2,827,000        1,690,000 (a)                            4,517,000        4,517,000        122         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ (2,550    $ 1,047      $ 30,524,718         $ 27,786      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

E-Mini Health Care Sector Index

     47        12/17/21      $ 6,341      $ 121,657  
           

 

 

 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  27


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Healthcare ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 121,657  
  

 

 

 

 

  (a)

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 696,587  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (86,068
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 5,704,240  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1      Level 2      Level 3      Total  

Investments

           

Assets

           

Common Stocks

   $ 3,015,506,299      $      $      $ 3,015,506,299  

Money Market Funds

     30,524,718                      30,524,718  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 3,046,031,017      $      $      $ 3,046,031,017  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 121,657      $                 —      $                 —      $ 121,657  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

28  

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Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® U.S. Technology ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Communications Equipment — 0.1%  

F5 Networks Inc.(a)

    52,840     $ 11,157,166  
   

 

 

 
Electrical Equipment — 0.1%  

Vertiv Holdings Co.

    246,696       6,335,153  
   

 

 

 
Electronic Equipment, Instruments & Components — 1.3%  

Amphenol Corp., Class A

    511,363       39,257,337  

Arrow Electronics Inc.(a)

    62,693       7,256,715  

Avnet Inc.

    87,005       3,315,761  

CDW Corp./DE

    120,437       22,479,566  

Corning Inc.

    667,834       23,754,855  

IPG Photonics Corp.(a)(b)

    31,751       5,048,726  

Jabil Inc.

    124,658       7,474,494  

National Instruments Corp.

    116,331       4,940,578  

SYNNEX Corp.

    36,507       3,833,235  
   

 

 

 
   

 

 

 

117,361,267

 

 

Entertainment — 0.0%  

Skillz Inc., Class A(a)(b)

    258,340       2,888,241  
   

 

 

 
Health Care Technology — 0.1%  

Change Healthcare Inc.(a)

    219,462       4,725,017  
   

 

 

 
Industrial Conglomerates — 0.5%  

Roper Technologies Inc.

    92,065       44,915,752  
   

 

 

 
Interactive Media & Services — 16.9%  

Alphabet Inc., Class A(a)

    193,462       572,825,505  

Alphabet Inc., Class C, NVS(a)

    180,491       535,229,816  

IAC/InterActiveCorp.(a)

    67,068       10,219,151  

Match Group Inc.(a)

    242,508       36,565,356  

Meta Platforms Inc, Class A(a)

    1,073,640       347,397,695  

Pinterest Inc., Class A(a)(b)

    486,646       21,723,878  

Twitter Inc.(a)

    683,252       36,581,312  

Vimeo Inc.(a)

    125,791       4,242,930  
   

 

 

 
   

 

 

 

1,564,785,643

 

 

Internet & Direct Marketing Retail — 0.3%  

DoorDash Inc., Class A(a)

    126,496       24,641,421  
   

 

 

 
IT Services — 5.3%  

Akamai Technologies Inc.(a)

    141,062       14,876,399  

Amdocs Ltd.

    113,478       8,833,128  

Cloudflare Inc., Class A(a)

    226,725       44,147,892  

Cognizant Technology Solutions Corp., Class A

    462,459       36,113,423  

Concentrix Corp.

    36,951       6,565,454  

DXC Technology Co.(a)

    220,262       7,173,933  

EPAM Systems Inc.(a)

    47,155       31,746,632  

Fastly Inc., Class A(a)(b)

    92,751       4,694,128  

Gartner Inc.(a)

    71,395       23,696,714  

Globant SA(a)

    35,462       11,319,116  

GoDaddy Inc., Class A(a)

    147,289       10,187,980  

International Business Machines Corp.

    784,344       98,121,434  

MongoDB Inc.(a)(b)

    54,384       28,349,835  

Okta Inc.(a)(b)

    108,993       26,940,890  

Snowflake Inc., Class A(a)(b)

    171,504       60,684,975  

SolarWinds Corp.

    29,545       475,675  

Switch Inc., Class A

    100,539       2,541,626  

Twilio Inc., Class A(a)

    146,160       42,585,178  

VeriSign Inc.(a)

    86,520       19,265,408  

Wix.com Ltd.(a)(b)

    46,773       8,697,907  
   

 

 

 
   

 

 

 

487,017,727

 

 

Security   Shares     Value  
Professional Services — 0.4%  

CACI International Inc., Class A(a)

    20,395     $ 5,866,418  

Clarivate PLC(a)

    381,371       8,943,150  

Dun & Bradstreet Holdings Inc.(a)

    140,461       2,646,285  

Leidos Holdings Inc.

    123,856       12,383,123  

Science Applications International Corp.

    50,791       4,560,016  
   

 

 

 
   

 

 

 

34,398,992

 

 

Semiconductors & Semiconductor Equipment — 19.7%  

Advanced Micro Devices Inc.(a)

    1,062,284       127,718,405  

Allegro MicroSystems Inc.(a)

    34,687       1,157,158  

Analog Devices Inc.

    470,791       81,677,531  

Applied Materials Inc.

    803,504       109,798,822  

Broadcom Inc.

    350,432       186,314,181  

Brooks Automation Inc.

    64,220       7,478,419  

Cirrus Logic Inc.(a)

    50,722       4,098,845  

Entegris Inc.

    118,109       16,627,385  

Intel Corp.

    3,548,214       173,862,486  

KLA Corp.

    134,629       50,184,306  

Lam Research Corp.

    124,965       70,426,525  

Marvell Technology Inc.

    717,490       49,148,065  

Microchip Technology Inc.

    471,259       34,915,579  

Micron Technology Inc.

    982,947       67,921,638  

Monolithic Power Systems Inc.

    39,334       20,668,444  

NVIDIA Corp.

    1,391,284       355,709,580  

NXP Semiconductors NV

    232,687       46,737,511  

ON Semiconductor Corp.(a)(b)

    371,510       17,858,486  

Qorvo Inc.(a)

    97,292       16,367,433  

QUALCOMM Inc.

    990,245       131,742,195  

Skyworks Solutions Inc.

    144,743       24,190,898  

Teradyne Inc.

    145,831       20,159,677  

Texas Instruments Inc.

    810,810       152,010,659  

Universal Display Corp.

    37,962       6,954,638  

Wolfspeed Inc.(a)(b)

    100,764       12,102,764  

Xilinx Inc.

    215,853       38,853,540  
   

 

 

 
   

 

 

 

1,824,685,170

 

 

Software — 37.9%  

Adobe Inc.(a)

    384,499       250,062,770  

Alteryx Inc., Class A(a)(b)

    51,564       3,773,969  

Anaplan Inc.(a)

    123,180       8,032,568  

ANSYS Inc.(a)

    76,425       29,009,402  

Aspen Technology Inc.(a)

    59,573       9,334,493  

Atlassian Corp. PLC, Class A(a)

    119,629       54,805,634  

Autodesk Inc.(a)(b)

    193,069       61,320,645  

Avalara Inc.(a)

    74,320       13,350,845  

Bentley Systems Inc., Class B(b)

    121,053       7,160,285  

Black Knight Inc.(a)

    133,335       9,348,117  

C3.ai Inc., Class A(a)(b)

    30,017       1,354,367  

Cadence Design Systems Inc.(a)

    240,642       41,657,537  

CDK Global Inc.

    106,916       4,652,984  

Ceridian HCM Holding Inc.(a)

    113,310       14,192,078  

Citrix Systems Inc.

    108,662       10,293,551  

Coupa Software Inc.(a)

    64,204       14,619,251  

Crowdstrike Holdings Inc., Class A(a)

    172,631       48,647,416  

Datadog Inc., Class A(a)

    203,789       34,042,952  

Datto Holding Corp.(a)

    20,914       499,845  

DocuSign Inc.(a)

    167,399       46,585,468  

Dolby Laboratories Inc., Class A

    56,319       4,975,784  

DoubleVerify Holdings Inc.(a)(b)

    13,587       537,094  

Dropbox Inc., Class A(a)

    267,419       8,153,605  

Duck Creek Technologies Inc.(a)(b)

    62,894       1,981,161  
 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  29


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Technology ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Software (continued)

           

Dynatrace Inc.(a)

    172,621     $ 12,946,575  

Elastic NV(a)

    61,081       10,598,164  

Everbridge Inc.(a)(b)

    33,639       5,359,029  

Five9 Inc.(a)

    58,589       9,257,648  

Fortinet Inc.(a)

    117,526       39,528,695  

Guidewire Software Inc.(a)(b)

    73,595       9,253,099  

HubSpot Inc.(a)

    39,109       31,687,285  

Intuit Inc.

    224,026       140,238,036  

Jamf Holding Corp.(a)(b)

    46,395       2,210,722  

MANDIANT Inc.(a)

    205,601       3,585,681  

Manhattan Associates Inc.(a)

    55,519       10,078,919  

McAfee Corp., Class A

    56,856       1,215,013  

Microsoft Corp.

    4,779,402        1,584,945,291  

N-Able Inc.(a)(b)

    29,740       395,542  

nCino Inc.(a)(b)

    49,228       3,576,907  

NCR Corp.(a)

    111,793       4,420,295  

New Relic Inc.(a)

    45,228       3,670,705  

NortonLifeLock Inc.

    481,211       12,246,820  

Nuance Communications Inc.(a)

    249,999       13,762,445  

Nutanix Inc., Class A(a)

    167,685       5,753,272  

Oracle Corp.

    1,479,597       141,952,536  

Palantir Technologies Inc., Class A(a)

    1,422,433       36,812,566  

Palo Alto Networks Inc.(a)(b)

    83,456       42,486,615  

Paycom Software Inc.(a)

    44,486       24,371,655  

Paycor HCM Inc.(a)

    28,495       924,378  

Pegasystems Inc.(b)

    35,788       4,248,751  

Procore Technologies Inc.(a)

    8,881       812,167  

PTC Inc.(a)

    92,474       11,776,564  

RingCentral Inc., Class A(a)(b)

    70,507       17,188,196  

salesforce.com Inc.(a)

    811,258       243,125,910  

ServiceNow Inc.(a)

    172,993       120,707,596  

Smartsheet Inc., Class A(a)

    105,379       7,272,205  

Splunk Inc.(a)(b)

    143,753       23,693,369  

SS&C Technologies Holdings Inc.

    196,648       15,627,617  

Synopsys Inc.(a)

    132,891       44,276,623  

Teradata Corp.(a)(b)

    95,497       5,401,310  

Tyler Technologies Inc.(a)

    35,325       19,189,247  

Unity Software Inc.(a)(b)

    130,585       19,758,816  

VMware Inc., Class A(a)

    70,533       10,699,856  

Workday Inc., Class A(a)(b)

    164,554       47,717,369  

Zendesk Inc.(a)

    104,398       10,627,716  

Zoom Video Communications Inc., Class A(a)(b)

    187,454       51,484,241  
Security   Shares     Value  

 

Software (continued)

           

Zscaler Inc.(a)

    67,830     $ 21,628,274  
   

 

 

 
   

 

 

 

3,504,905,541

 

 

Specialty Retail — 0.0%            

Vroom Inc.(a)(b)

    100,985       1,931,843  
   

 

 

 
Technology Hardware, Storage & Peripherals — 17.3%  

Apple Inc.

    9,927,866       1,487,194,327  

Dell Technologies Inc., Class C(a)

    237,901       26,166,731  

Hewlett Packard Enterprise Co.

    1,140,904       16,714,244  

HP Inc.

    1,054,942       31,996,391  

NetApp Inc.

    195,263       17,436,986  

Pure Storage Inc., Class A(a)

    233,852       6,281,265  

Western Digital Corp.(a)

    269,326       14,083,056  

Xerox Holdings Corp.

    124,518       2,216,420  
   

 

 

 
   

 

 

 

1,602,089,420

 

 

   

 

 

 

Total Common Stocks — 99.9%
(Cost: $5,460,430,354)

      9,231,838,353  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 0.9%  

BlackRock Cash Funds: Institutional, SL Agency Shares,
0.05%(c)(d)(e)

    71,737,409       71,773,277  

BlackRock Cash Funds: Treasury, SL Agency Shares,
0.00%(c)(d)

    11,220,000       11,220,000  
   

 

 

 
   

 

 

 

82,993,277

 

 

   

 

 

 

Total Short-Term Investments — 0.9%
(Cost: $82,959,468)

      82,993,277  
   

 

 

 

Total Investments in Securities — 100.8%
(Cost: $5,543,389,822)

      9,314,831,630  

Other Assets, Less Liabilities — (0.8)%

      (69,752,790
   

 

 

 

Net Assets — 100.0%

    $  9,245,078,840  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

30  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Technology ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 117,943,012     $     $ (46,166,316 )(a)     $ (3,277    $ (142   $ 71,773,277       71,737,409     $ 78,002 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    18,110,000             (6,890,000 )(a)                  11,220,000       11,220,000       355        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
         $ (3,277    $ (142   $ 82,993,277       $ 78,357     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

E-Mini Technology Select Sector Index

     59        12/17/21      $ 9,589      $ 233,524  

S&P 500 E-Mini Index

     21        12/17/21        2,203        (73,783
           

 

 

 
            $ 159,741  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 
Assets — Derivative Financial Instruments       

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 233,524  
  

 

 

 
Liabilities — Derivative Financial Instruments       

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 73,783  
  

 

 

 

 

  (a)

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 
Net Realized Gain (Loss) from:       

Futures contracts

   $ 1,986,563  
  

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:       

Futures contracts

   $ (295,150
  

 

 

 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  31


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Technology ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

       

Average notional value of contracts — long

  $ 10,685,428  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

     Level 1     Level 2      Level 3      Total  

Investments

         

Assets

         

Common Stocks

  $ 9,231,838,353     $      $      $ 9,231,838,353  

Money Market Funds

    82,993,277                     82,993,277  
 

 

 

   

 

 

    

 

 

    

 

 

 
  $ 9,314,831,630     $             —      $             —      $ 9,314,831,630  
 

 

 

   

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

         

Assets

         

Futures Contracts

  $ 233,524     $      $      $ 233,524  

Liabilities

         

Futures Contracts

    (73,783                   (73,783
 

 

 

   

 

 

    

 

 

    

 

 

 
  $ 159,741     $      $      $ 159,741  
 

 

 

   

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

32  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® U.S. Transportation ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Common Stocks

   
Air Freight & Logistics — 28.2%            

Air Transport Services Group Inc.(a)

    145,665     $       3,625,602  

Atlas Air Worldwide Holdings Inc.(a)

    67,933       5,510,725  

CH Robinson Worldwide Inc.

    331,903       32,191,272  

Echo Global Logistics Inc.(a)

    67,012       3,231,989  

Expeditors International of Washington Inc.

    428,102       52,767,853  

FedEx Corp.

    293,006       69,011,703  

Forward Air Corp.

    68,202       6,858,393  

GXO Logistics Inc.(a)

    248,404       22,058,275  

Hub Group Inc., Class A(a)

    84,833       6,665,329  

United Parcel Service Inc., Class B

    1,463,416       312,395,413  
   

 

 

 
   

 

 

 

514,316,554

 

 

Airlines — 13.9%            

Alaska Air Group Inc.(a)

    315,575       16,662,360  

Allegiant Travel Co.(a)

    38,109       6,679,364  

American Airlines Group Inc.(a)

    1,631,506       31,324,915  

Delta Air Lines Inc.(a)

    1,612,497       63,097,008  

Frontier Group Holdings Inc.(a)(b)

    75,773       1,185,847  

Hawaiian Holdings Inc.(a)

    129,416       2,504,199  

JetBlue Airways Corp.(a)

    801,472       11,244,652  

SkyWest Inc.(a)

    127,131       5,470,447  

Southwest Airlines Co.(a)

    1,490,863       70,488,003  

Spirit Airlines Inc.(a)(b)

    273,462       5,975,145  

Sun Country Airlines Holdings Inc.(a)(b)

    77,410       2,343,975  

United Airlines Holdings Inc.(a)(b)

    815,458       37,625,232  
   

 

 

 
   

 

 

 

254,601,147

 

 

Marine — 1.1%            

Eagle Bulk Shipping Inc.(a)

    33,809       1,455,478  

Genco Shipping & Trading Ltd.

    89,511       1,536,904  

Kirby Corp.(a)

    151,625       7,946,666  

Matson Inc.

    109,586       9,126,322  
   

 

 

 
   

 

 

 

20,065,370

 

 

Road & Rail — 56.8%            

AMERCO

    24,705       18,207,338  

ArcBest Corp.

    64,317       5,778,882  

Avis Budget Group Inc.(a)

    119,054       20,633,249  

CSX Corp.

    4,530,161       163,855,923  

Daseke Inc.(a)

    148,750       1,405,687  

Heartland Express Inc.

    117,828       1,924,131  

JB Hunt Transport Services Inc.

    212,066       41,817,295  

Kansas City Southern

    229,221       71,115,815  
Security   Shares     Value  
Road & Rail (continued)            

Knight-Swift Transportation Holdings Inc.

    418,237     $ 23,709,856  

Landstar System Inc.

    96,446       16,956,171  

Lyft Inc., Class A(a)

    732,178       33,585,005  

Marten Transport Ltd.

    149,926       2,493,269  

Norfolk Southern Corp.

    306,375       89,783,194  

Old Dominion Freight Line Inc.

    236,379       80,687,972  

Ryder System Inc.

    135,539       11,514,038  

Saia Inc.(a)

    66,365       20,748,354  

Schneider National Inc., Class B

    87,965       2,193,847  

TuSimple Holdings Inc., Class A(a)(b)

    84,114       3,290,540  

Uber Technologies Inc.(a)

    1,908,706       83,639,497  

Union Pacific Corp.

    1,310,364       316,321,870  

Werner Enterprises Inc.

    155,951       7,067,699  

XPO Logistics Inc.(a)

    248,404       21,313,063  
   

 

 

 
   

 

 

 

1,038,042,695

 

 

   

 

 

 

Total Common Stocks — 100.0%
(Cost: $1,708,563,897)

      1,827,025,766  
   

 

 

 

Short-Term Investments

 

 

Money Market Funds — 0.8%

   

BlackRock Cash Funds: Institutional, SL Agency Shares,
0.05%(c)(d)(e)

    13,390,790       13,397,485  

BlackRock Cash Funds: Treasury, SL Agency Shares,
0.00%(c)(d)

    790,000       790,000  
   

 

 

 
   

 

 

 

14,187,485

 

 

   

 

 

 

Total Short-Term Investments — 0.8%
(Cost: $14,185,160)

      14,187,485  
   

 

 

 

Total Investments in Securities — 100.8%
(Cost: $1,722,749,057)

      1,841,213,251  

Other Assets, Less Liabilities — (0.8)%

      (13,932,244
   

 

 

 

Net Assets — 100.0%

    $  1,827,281,007  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

C H E D U L E  O F  N V E S T M E N  T S

  33


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Transportation ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 12,174,329      $ 1,223,062 (a)    $     $ 7,889      $ (7,795    $ 13,397,485        13,390,790      $ 16,985 (b)    $  

BlackRock Cash Funds: Treasury,
SL Agency Shares

     4,370,000              (3,580,000 )(a)                    790,000        790,000        73        
         

 

 

    

 

 

    

 

 

       

 

 

   

 

 

 
          $             7,889      $             (7,795    $ 14,187,485         $ 17,058     $              —  
         

 

 

    

 

 

    

 

 

       

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
    

 

Value/
Unrealized
Appreciation
(Depreciation)

 

 

Long Contracts
XAI Industrial Index

     3        12/17/21      $  315      $          10,508  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

     

 

Equity

Contracts

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $  10,508  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

     

 

Equity
Contracts

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 23,073  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (228,087
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

Futures contracts:

        

Average notional value of contracts — long

     $1,818,887  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

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Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Transportation ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1      Level 2      Level 3      Total  

Investments

           

Assets

           

Common Stocks

   $ 1,827,025,766      $      $      $ 1,827,025,766  

Money Market Funds

     14,187,485                      14,187,485  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,841,213,251      $      $      $ 1,841,213,251  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 10,508      $                 —      $                 —      $ 10,508  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E  O F  N V E S T M E N  T S

  35


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® U.S. Utilities ETF

(Percentages shown are based on Net Assets)

 

Security     Shares        Value  

Common Stocks

 

Commercial Services & Supplies — 9.5%  

Clean Harbors Inc.(a)

    37,030      $   4,167,356  

Republic Services Inc.

    153,715        20,690,039  

Stericycle Inc.(a)

    66,888        4,476,145  

Waste Management Inc.

    309,007        49,512,192  
    

 

 

 
    

 

 

 

78,845,732

 

 

Electric Utilities — 56.3%  

Alliant Energy Corp.

    183,018        10,353,328  

American Electric Power Co. Inc.

    366,326        31,031,475  

Avangrid Inc.

    41,761        2,200,805  

Duke Energy Corp.

    563,390        57,471,414  

Edison International

    272,823        17,168,751  

Entergy Corp.

    146,618        15,104,586  

Evergy Inc.

    167,290        10,664,737  

Eversource Energy

    251,140        21,321,786  

Exelon Corp.

    714,517        38,005,159  

FirstEnergy Corp.

    397,986        15,334,401  

Hawaiian Electric Industries Inc.

    77,086        3,126,608  

IDACORP Inc.

    36,808        3,839,811  

NextEra Energy Inc.

    1,436,021        122,535,672  

NRG Energy Inc.

    177,946        7,098,266  

OGE Energy Corp.

    145,985        4,973,709  

PG&E Corp.(a)

    1,104,810        12,815,796  

Pinnacle West Capital Corp.

    82,424        5,315,524  

PPL Corp.

    563,818        16,237,958  

Southern Co. (The)

    774,496        48,266,591  

Xcel Energy Inc.

    393,952        25,445,360  
    

 

 

 
    

 

 

 

468,311,737

 

 

Electrical Equipment — 1.0%  

Sunrun Inc.(a)

    145,798        8,409,629  
    

 

 

 
Gas Utilities — 2.3%  

Atmos Energy Corp.

    94,611        8,715,565  

National Fuel Gas Co.

    63,808        3,664,493  

UGI Corp.

    152,104        6,602,835  
    

 

 

 
    

 

 

 

18,982,893

 

 

Independent Power and Renewable Electricity Producers — 2.7%  

AES Corp. (The)

    483,154        12,141,660  

Brookfield Renewable Corp., Class A

    93,394        3,867,446  
Security     Shares        Value  
Independent Power and Renewable Electricity Producers (continued)  

Vistra Corp.

    350,272      $ 6,861,828  
    

 

 

 
    

 

 

 

22,870,934

 

 

Multi-Utilities — 24.2%  

Ameren Corp.

    186,213        15,695,894  

CenterPoint Energy Inc.

    434,147        11,305,188  

CMS Energy Corp.

    211,451        12,761,068  

Consolidated Edison Inc.

    259,031        19,530,937  

Dominion Energy Inc.

    589,761        44,780,553  

DTE Energy Co.

    141,177        16,002,413  

NiSource Inc.

    286,492        7,067,758  

Public Service Enterprise Group Inc.

    369,007        23,542,646  

Sempra Energy

    234,037        29,870,142  

WEC Energy Group Inc.

    230,898        20,794,674  
    

 

 

 
    

 

 

 

201,351,273

 

 

Water Utilities — 3.7%  

American Water Works Co. Inc.

    132,844        23,138,768  

Essential Utilities Inc.

    163,884        7,714,020  
    

 

 

 
    

 

 

 

30,852,788

 

 

    

 

 

 
Total Common Stocks — 99.7%  

(Cost: $789,065,959)

       829,624,986  
    

 

 

 

Short-Term Investments

 

Money Market Funds — 0.3%  

BlackRock Cash Funds: Treasury,
SL Agency Shares,
0.00%(b)(c)

    2,362,000        2,362,000  
    

 

 

 
Total Short-Term Investments — 0.3%  

(Cost: $2,362,000)

       2,362,000  
    

 

 

 
Total Investments in Securities — 100.0%  

(Cost: $791,427,959)

       831,986,986  
Other Assets, Less Liabilities — 0.0%      241,567  
    

 

 

 
Net Assets — 100.0%      $  832,228,553  
    

 

 

 

 

(a) 

Non-income producing security.

 
(b) 

Affiliate of the Fund.

 
(c) 

Annualized 7-day yield as of period end.

 
 

 

 

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Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Utilities ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional,
SL Agency Shares(a)

   $      $ 0 (b)      $      $      $      $             $  869 (c)     $  —  

BlackRock Cash Funds: Treasury, SL Agency Shares

     902,000        1,460,000 (b)                            2,362,000        2,362,000        51         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $      $      $ 2,362,000         $ 920      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End    

Futures Contracts    

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

E-Mini Utilities Select Sector Index

     37        12/17/21      $  2,493      $  (43,623)  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure    

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:    

 

      Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $  43,623  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:    

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $  104,646  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $  (83,355)  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments    

 

Futures contracts:

        

Average notional value of contracts — long

   $ 2,006,943  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.    

 

 

C H E D U L E  O F  N V E S T M E N  T S

  37


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Utilities ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 829,624,986        $               —        $               —        $ 829,624,986  

Money Market Funds

     2,362,000                            2,362,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 831,986,986        $        $        $ 831,986,986  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (43,623      $        $        $ (43,623
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.    

 

See notes to financial statements.    

 

 

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Statements of Assets and Liabilities  (unaudited)

October 31, 2021

 

     iShares
Dow Jones
U.S. ETF
     iShares
U.S. Energy
ETF
    iShares
U.S. Healthcare
ETF
     iShares
U.S. Technology
ETF
 

ASSETS

         

Investments in securities, at value (including securities on loan)(a):

         

Unaffiliated(b)

  $ 1,783,302,190      $ 2,416,130,897     $ 3,015,506,299      $ 9,231,838,353  

Affiliated(c)

    26,322,217        25,887,314       30,524,718        82,993,277  

Cash

    39,554        37,384       63,136        3,253,307  

Cash pledged:

         

Futures contracts

    175,000        312,000       284,999        643,000  

Receivables:

         

Securities lending income — Affiliated

    4,717        3,798       6,692        16,354  

Variation margin on futures contracts

    7,635              58,240        45,572  

Capital shares sold

                        112,139  

Dividends

    1,233,961        3,302,267       2,391,806        983,423  
 

 

 

    

 

 

   

 

 

    

 

 

 

Total assets

    1,811,085,274        2,445,673,660       3,048,835,890        9,319,885,425  
 

 

 

    

 

 

   

 

 

    

 

 

 

LIABILITIES

         

Collateral on securities loaned, at value

    18,133,322        21,987,314       25,986,951        71,762,325  

Payables:

         

Investments purchased

                        112,138  

Variation margin on futures contracts

           30,281               

Investment advisory fees

    294,489        807,746       960,579        2,932,122  
 

 

 

    

 

 

   

 

 

    

 

 

 

Total liabilities

    18,427,811        22,825,341       26,947,530        74,806,585  
 

 

 

    

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 1,792,657,463      $ 2,422,848,319     $ 3,021,888,360      $ 9,245,078,840  
 

 

 

    

 

 

   

 

 

    

 

 

 

NET ASSETS CONSIST OF:

         

Paid-in capital

  $ 792,345,626      $ 2,453,496,532     $ 2,347,731,668      $ 4,752,810,177  

Accumulated earnings (loss)

    1,000,311,837        (30,648,213     674,156,692        4,492,268,663  
 

 

 

    

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 1,792,657,463      $ 2,422,848,319     $ 3,021,888,360      $ 9,245,078,840  
 

 

 

    

 

 

   

 

 

    

 

 

 

Shares outstanding

    15,550,000        77,000,000       10,450,000        83,750,000  
 

 

 

    

 

 

   

 

 

    

 

 

 

Net asset value

  $ 115.28      $ 31.47     $ 289.18      $ 110.39  
 

 

 

    

 

 

   

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited       Unlimited        Unlimited  
 

 

 

    

 

 

   

 

 

    

 

 

 

Par value

    None        None       None        None  
 

 

 

    

 

 

   

 

 

    

 

 

 

(a) Securities loaned, at value

  $ 17,677,538      $ 22,152,610     $ 25,414,842      $ 70,099,617  

(b) Investments, at cost — Unaffiliated

  $ 764,975,923      $ 2,148,107,769     $ 2,336,372,672      $ 5,460,430,354  

(c)  Investments, at cost — Affiliated

  $ 22,928,366      $ 25,887,314     $ 30,511,859      $ 82,959,468  

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T  S

  39


 

Statements of Assets and Liabilities  (unaudited) (continued)

October 31, 2021

 

   

iShares
U.S. Transportation
ETF

 

    

iShares
U.S. Utilities
ETF

 

 

 

 

ASSETS

    

Investments in securities, at value (including securities on loan)(a):

    

Unaffiliated(b)

  $ 1,827,025,766      $  829,624,986  

Affiliated(c)

    14,187,485        2,362,000  

Cash

    9,826        24,720  

Cash pledged:

    

Futures contracts

    18,000        124,000  

Receivables:

    

Securities lending income — Affiliated

    3,086        316  

Variation margin on futures contracts

    44         

Capital shares sold

    2,516         

Dividends

           376,182  
 

 

 

    

 

 

 

Total assets

    1,841,246,723        832,512,204  
 

 

 

    

 

 

 

LIABILITIES

    

Collateral on securities loaned, at value

    13,418,333         

Payables:

    

Variation margin on futures contracts

           14,033  

Investment advisory fees

    547,383        269,618  
 

 

 

    

 

 

 

Total liabilities

    13,965,716        283,651  
 

 

 

    

 

 

 

NET ASSETS

  $ 1,827,281,007      $ 832,228,553  
 

 

 

    

 

 

 

NET ASSETS CONSIST OF:

    

Paid-in capital

  $ 1,511,086,822      $ 851,919,948  

Accumulated earnings (loss)

    316,194,185        (19,691,395
 

 

 

    

 

 

 

NET ASSETS

  $ 1,827,281,007      $ 832,228,553  
 

 

 

    

 

 

 

Shares outstanding

    6,750,000        10,000,000  
 

 

 

    

 

 

 

Net asset value

  $ 270.71      $ 83.22  
 

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited  
 

 

 

    

 

 

 

Par value

    None        None  
 

 

 

    

 

 

 

(a) Securities loaned, at value

  $ 13,021,884      $  

(b) Investments, at cost — Unaffiliated

  $ 1,708,563,897      $ 789,065,959  

(c)  Investments, at cost — Affiliated

  $ 14,185,160      $ 2,362,000  

See notes to financial statements.

 

 

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Statements of Operations  (unaudited)

Six Months Ended October 31, 2021

 

    iShares
Dow Jones
U.S. ETF
    iShares
U.S. Energy
ETF
    iShares
U.S. Healthcare
ETF
    iShares
U.S. Technology
ETF
 

 

 

INVESTMENT INCOME

       

Dividends — Unaffiliated

  $ 11,245,530     $ 50,228,998     $ 19,552,658     $ 26,559,560  

Dividends — Affiliated

    47,266       127       122       355  

Securities lending income — Affiliated — net

    22,148       5,998       27,664       78,002  

Foreign taxes withheld

    (2,185                 (33,863
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    11,312,759       50,235,123       19,580,444       26,604,054  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    1,700,472       4,637,462       5,547,352       16,055,533  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    1,700,472       4,637,462       5,547,352       16,055,533  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    9,612,287       45,597,661       14,033,092       10,548,521  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated

    2,079,777       (129,139,162     2,599,956       (8,375,832

Investments — Affiliated

    (2,085     (138     (2,550     (3,277

In-kind redemptions — Unaffiliated

    11,577,284       92,264,669       98,504,866       817,938,124  

In-kind redemptions — Affiliated

    37,278                    

Futures contracts

    419,687       445,931       696,587       1,986,563  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain (loss)

    14,111,941       (36,428,700     101,798,859       811,545,578  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated

    141,743,335       414,297,147       149,715,182       556,001,417  

Investments — Affiliated

    670,901             1,047       (142

Futures contracts

    (58,062     443,109       (86,068     (295,150
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    142,356,174       414,740,256       149,630,161       555,706,125  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    156,468,115       378,311,556       251,429,020       1,367,251,703  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 166,080,402     $ 423,909,217     $ 265,462,112     $ 1,377,800,224  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T  S

  41


 

Statements of Operations  (unaudited) (continued)

Six Months Ended October 31, 2021

 

    iShares
U.S. Transportation
ETF
   

iShares
U.S. Utilities

ETF

 

 

 

INVESTMENT INCOME

   

Dividends — Unaffiliated

  $ 10,201,855     $ 12,568,655  

Dividends — Affiliated

    73       51  

Securities lending income — Affiliated — net

    16,985       869  
 

 

 

   

 

 

 

Total investment income

 

 

 

 

10,218,913

 

 

 

 

 

 

12,569,575

 

 

 

 

 

   

 

 

 

EXPENSES

   

Investment advisory fees

    3,589,447       1,622,826  
 

 

 

   

 

 

 

Total expenses

 

 

 

 

3,589,447

 

 

    1,622,826  
 

 

 

   

 

 

 

Net investment income

 

 

 

 

6,629,466

 

 

    10,946,749  
 

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — Unaffiliated

    (54,022,620     (13,770,720

Investments — Affiliated

    7,889        

In-kind redemptions — Unaffiliated

    315,285,717       3,861,103  

Futures contracts

    23,073       104,646  
 

 

 

   

 

 

 

Net realized gain (loss)

 

 

 

 

261,294,059

 

 

    (9,804,971
 

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

   

Investments — Unaffiliated

    (281,249,543     16,095,924  

Investments — Affiliated

    (7,795      

Futures contracts

    (228,087     (83,355
 

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

 

 

 

 

(281,485,425

 

    16,012,569  
 

 

 

   

 

 

 

Net realized and unrealized gain (loss)

 

 

 

 

(20,191,366

 

    6,207,598  
 

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

 

 

$

 

(13,561,900

 

  $ 17,154,347  
 

 

 

   

 

 

 

See notes to financial statements.    

 

 

42  

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Statements of Changes in Net Assets

 

    iShares
Dow Jones U.S. ETF

 

           iShares
U.S. Energy ETF

 

 
   

 

Six Months Ended
10/31/21

(unaudited)

   

Year Ended

04/30/21

          

 

Six Months Ended
10/31/21

(unaudited)

   

Year Ended

04/30/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 9,612,287     $ 18,421,715        $ 45,597,661     $ 23,266,005  

Net realized gain (loss)

    14,111,941       56,309,736          (36,428,700     (74,049,770

Net change in unrealized appreciation (depreciation)

    142,356,174       465,697,162          414,740,256       257,883,910  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets resulting from operations

 

 

 

 

166,080,402

 

 

    540,428,613          423,909,217       207,100,145  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (8,557,894     (19,374,122        (41,650,865     (24,408,521
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    21,554,525       (65,749,746        (61,868,790     1,460,310,777  
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase in net assets

    179,077,033       455,304,745          320,389,562       1,643,002,401  

Beginning of period

    1,613,580,430       1,158,275,685          2,102,458,757       459,456,356  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

 

 

$

 

1,792,657,463

 

 

  $ 1,613,580,430        $ 2,422,848,319     $ 2,102,458,757  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

See notes to financial statements.    

 

 

I N A N C I A L  T A T E M E N T  S

  43


 

Statements of Changes in Net Assets  (continued)

 

 

    iShares
U.S. Healthcare ETF

 

           iShares
U.S. Technology ETF

 

 
   

 

Six Months Ended
10/31/21
(unaudited)

    Year Ended
04/30/21
          

 

Six Months Ended
10/31/21
(unaudited)

    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 14,033,092     $ 27,461,238        $ 10,548,521     $ 29,843,120  

Net realized gain

    101,798,859       186,575,662          811,545,578       910,330,362  

Net change in unrealized appreciation (depreciation)

    149,630,161       340,519,748          555,706,125       1,875,944,588  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets resulting from operations

 

 

 

 

265,462,112

 

 

    554,556,648          1,377,800,224       2,816,118,070  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (14,144,963     (29,705,083        (12,017,386     (30,897,304
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    205,532,313       (392,745,645        622,040,773       (390,106,288
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase in net assets

    456,849,462       132,105,920          1,987,823,611       2,395,114,478  

Beginning of period

    2,565,038,898       2,432,932,978          7,257,255,229       4,862,140,751  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

 

 

$

 

3,021,888,360

 

 

  $ 2,565,038,898        $ 9,245,078,840     $ 7,257,255,229  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

See notes to financial statements.    

 

 

44  

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Statements of Changes in Net Assets  (continued)

 

    iShares
U.S. Transportation ETF

 

    iShares
U.S. Utilities ETF

 

 
   

 

Six Months Ended
10/31/21

(unaudited)

   

Year Ended

04/30/21

   

 

Six Months Ended
10/31/21
(unaudited)

    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

       

OPERATIONS

       

Net investment income

  $ 6,629,466     $ 11,015,888     $ 10,946,749     $ 22,161,048  

Net realized gain (loss)

    261,294,059       101,703,980       (9,804,971     17,410,732  

Net change in unrealized appreciation (depreciation)

    (281,485,425     551,433,632       16,012,569       105,278,903  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

(13,561,900

 

    664,153,500       17,154,347       144,850,683  
 

 

 

   

 

 

   

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

       

Decrease in net assets resulting from distributions to shareholders

    (6,418,425     (11,445,745     (10,507,125     (23,625,593
 

 

 

   

 

 

   

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

       

Net increase (decrease) in net assets derived from capital share transactions

    (297,044,801     1,034,833,040       3,489,572       (174,806,045
 

 

 

   

 

 

   

 

 

   

 

 

 

NET ASSETS

       

Total increase (decrease) in net assets

    (317,025,126     1,687,540,795       10,136,794       (53,580,955

Beginning of period

    2,144,306,133       456,765,338       822,091,759       875,672,714  
 

 

 

   

 

 

   

 

 

   

 

 

 

End of period

 

 

$

 

1,827,281,007

 

 

  $ 2,144,306,133     $ 832,228,553     $ 822,091,759  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

See notes to financial statements.    

 

 

I N A N C I A L  T A T E M E N T  S

  45


Financial Highlights  

(For a share outstanding throughout each period)

 

    iShares Dow Jones U.S. ETF

 

 
 

 

 

 

Six Months Ended
10/31/21
(unaudited)

 

 
 
 

   
Year Ended
04/30/21
 
(a)  
    
Year Ended
04/30/20
 
(a)  
    
Year Ended
04/30/19
 
(a)  
    
Year Ended
04/30/18
 
(a)  
    
Year Ended
04/30/17
 
(a)  

 

 

 

Net asset value, beginning of period

  $ 105.12     $ 71.50      $ 73.44      $ 66.25      $ 59.73      $ 51.53  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(b)

 

 

 

 

0.62

 

 

    1.19        1.28        1.20        1.10        1.01  

Net realized and unrealized gain (loss)(c)

    10.09       33.68        (1.75      7.23        6.51        8.20  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    10.71       34.87        (0.47      8.43        7.61        9.21  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions(d)

               

From net investment income

    (0.55     (1.25      (1.47      (1.24      (1.09      (1.01
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions

 

 

 

 

(0.55

 

    (1.25      (1.47      (1.24      (1.09      (1.01
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 115.28     $ 105.12      $ 71.50      $ 73.44      $ 66.25      $ 59.73  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(e)

               

Based on net asset value

    10.22 %(f)       49.18      (0.63 )%       12.89      12.81      18.04
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

               

Total expenses

    0.20 %(g)       0.20      0.20      0.20      0.20      0.20
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

 

 

 

 

1.13

 

%(g)  

    1.35      1.72      1.74      1.70      1.82
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 1,792,657     $ 1,613,580      $ 1,158,276      $ 1,241,141      $ 1,126,170      $ 1,110,872  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(h)

 

 

 

 

3

 

%(f)  

    4      4      5      4      4
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

46  

2 0 2 1  H A R E S   E M I - A N N U A L  E P O R T  T O  H A R E  H O L D E R S


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Energy ETF

 

 
   

 

Six Months Ended
10/31/21
(unaudited)

    Year Ended
04/30/21
    Year Ended
04/30/20
    Year Ended
04/30/19
    Year Ended
04/30/18
    Year Ended
04/30/17
 

 

 

 

Net asset value, beginning of period

  $ 26.40     $ 20.06     $ 35.96     $ 40.47     $ 37.27     $ 37.91  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

 

 

 

 

0.55

 

 

    0.80       1.02       0.89       1.07       0.84  

Net realized and unrealized gain (loss)(b)

    5.02       6.36       (14.81     (4.43     3.25       (0.62
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    5.57       7.16       (13.79     (3.54     4.32       0.22  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

           

From net investment income

    (0.50     (0.82     (2.11     (0.97     (1.12     (0.86
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

 

 

 

 

(0.50

 

    (0.82     (2.11     (0.97     (1.12     (0.86
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 31.47     $ 26.40     $ 20.06     $ 35.96     $ 40.47     $ 37.27  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    21.31 %(e)      37.20     (39.91 )%      (8.83 )%      11.92     0.52
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(f)       0.41     0.42     0.42     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

 

 

 

 

3.85

 

%(f)  

    3.62     3.42     2.33     2.87     2.17
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 2,422,848     $ 2,102,459     $ 459,456     $ 789,226     $ 1,088,740     $ 1,159,125  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

 

 

 

 

12

 

%(e)  

    15     12     6     6     18
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T  S

  47


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Healthcare ETF

 

 
   

 

Six Months Ended
10/31/21
(unaudited)

    Year Ended
04/30/21
    Year Ended
04/30/20
    Year Ended
04/30/19
    Year Ended
04/30/18
    Year Ended
04/30/17
 

 

 

 

Net asset value, beginning of period

  $ 263.08     $ 212.48     $ 188.15     $ 173.95     $ 158.62     $ 144.67  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

 

 

 

 

1.39

 

 

    2.65       2.49       2.26       1.99       1.81  

Net realized and unrealized gain(b)

    26.09       50.86       24.38       15.50       15.31       14.07  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase from investment operations

 

 

 

 

27.48

 

 

    53.51       26.87       17.76       17.30       15.88  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

           

From net investment income

    (1.38     (2.91     (2.54     (3.56     (1.97     (1.93
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

 

 

 

 

(1.38

 

    (2.91     (2.54     (3.56     (1.97     (1.93
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

 

 

$

 

289.18

 

 

  $ 263.08     $ 212.48     $ 188.15     $ 173.95     $ 158.62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    10.46 %(e)       25.40     14.44     10.27     10.93     11.06
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(f)       0.41     0.43     0.43     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

 

 

 

 

0.99

 

%(f)  

    1.13     1.25     1.19     1.16     1.21
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 3,021,888     $ 2,565,039     $ 2,432,933     $ 2,097,818     $ 1,800,336     $ 1,911,386  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

 

 

 

 

6

 

%(e)  

    6     5     6     7     6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

48  

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Technology ETF

 

 
 

 

 

 

 

Six Months Ended
10/31/21
(unaudited)

 

 

 
 
 

 

   

 

Year Ended
04/30/21

 

 
(a)  

 

   

 

Year Ended
04/30/20

 

 
(a)  

 

   

 

Year Ended
04/30/19

 

 
(a)  

 

   

 

Year Ended
04/30/18

 

 
(a)  

 

   

 

Year Ended
04/30/17

 

 
(a)  

 

 

 

 

Net asset value, beginning of period

  $ 92.98     $ 58.58     $ 50.85     $ 41.99     $ 34.55     $ 25.58  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

 

 

 

 

0.13

 

 

    0.37       0.48       0.40       0.32       0.33  

Net realized and unrealized gain(c)

    17.43       34.42       7.75       8.84       7.46       8.97  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase from investment operations

 

 

 

 

17.56

 

 

    34.79       8.23       9.24       7.78       9.30  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.15     (0.39     (0.50     (0.38     (0.34     (0.33
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

 

 

 

 

(0.15

 

    (0.39     (0.50     (0.38     (0.34     (0.33
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 110.39     $ 92.98     $ 58.58     $ 50.85     $ 41.99     $ 34.55  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    18.90 %(f)       59.56     16.34     22.10     22.62     36.57
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(g)       0.41     0.43     0.42     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

 

 

 

 

0.26

 

%(g)  

    0.47     0.89     0.87     0.80     1.11
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 9,245,079     $ 7,257,255     $ 4,862,141     $ 4,271,433     $ 4,031,372     $ 3,392,234  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

 

 

 

 

9

 

%(f)  

    12     16     19     15     4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

Per share amounts reflect a four-for-one stock split effective after the close of trading on December 4, 2020.

(b)

Based on average shares outstanding.

(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)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e)

Where applicable, assumes the reinvestment of distributions.

(f)

Not annualized.

(g)

Annualized.

(h)

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T  S

  49


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Transportation ETF

 

 
   

 

Six Months Ended
10/31/21
(unaudited)

 

   

Year Ended
04/30/21

 

   

Year Ended
04/30/20

 

   

Year Ended
04/30/19

 

   

Year Ended
04/30/18

 

   

Year Ended
04/30/17

 

 

 

 

 

Net asset value, beginning of period

  $ 269.72     $ 149.76     $ 195.07     $ 187.76     $ 163.83     $ 141.18  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

 

 

 

 

0.95

 

 

    1.95       2.55       2.12       1.91       1.54  

Net realized and unrealized gain (loss)(b)

    1.00       119.89       (45.09     7.34       24.02       22.75  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

 

 

 

 

1.95

 

 

    121.84       (42.54     9.46       25.93       24.29  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

           

From net investment income

    (0.96     (1.88     (2.77     (2.15     (2.00     (1.64
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

 

 

 

 

(0.96

 

    (1.88     (2.77     (2.15     (2.00     (1.64
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 270.71     $ 269.72     $ 149.76     $ 195.07     $ 187.76     $ 163.83  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    0.74 %(e)       81.75     (21.92 )%      5.12     15.88     17.32
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(f)       0.41     0.42     0.42     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

 

 

 

 

0.72

 

%(f)  

    0.90     1.40     1.11     1.07     0.99
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 1,827,281     $ 2,144,306     $ 456,765     $ 575,444     $ 807,349     $ 966,598  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

 

 

 

 

59

 

%(e)  

    80     35     17     5     5
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

50  

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Utilities ETF  
   

Six Months Ended
10/31/21

(unaudited

 
 

   
Year Ended
04/30/21
 
(a) 
   
Year Ended
04/30/20
 
(a) 
   
Year Ended
04/30/19
 
(a) 
   
Year Ended
04/30/18
 
(a) 
   
Year Ended
04/30/17
 
(a) 
             

 

Net asset value, beginning of period

  $ 82.62     $ 71.20     $ 74.36     $ 65.22     $ 64.65     $ 60.55  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

 

 

 

 

1.09

 

 

    2.10       2.10       2.02       1.90       1.85  

Net realized and unrealized gain (loss)(c)

    0.56       11.60       (3.06     9.06       0.42       4.22  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

 

 

 

 

1.65

 

 

    13.70       (0.96     11.08       2.32       6.07  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (1.05     (2.28     (2.20     (1.94     (1.75     (1.97
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

 

 

 

 

(1.05

 

    (2.28     (2.20     (1.94     (1.75     (1.97
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 83.22     $ 82.62     $ 71.20     $ 74.36     $ 65.22     $ 64.65  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    2.04 %(f)       19.66     (1.39 )%      17.29     3.59     10.16
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(g)       0.41     0.43     0.43     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

 

 

 

 

2.64

 

%(g)  

    2.78     2.70     2.94     2.86     2.96
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 832,229     $ 822,092     $ 875,673     $ 810,455     $ 606,486     $ 801,673  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

 

 

 

 

13

 

%(f)  

    5     4     6     5     9
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T  S

  51


Notes to Financial Statements  (unaudited) 

 

1.

ORGANIZATION

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 is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

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

 

   
iShares ETF  

Diversification  

Classification  

Dow Jones U.S.

  Diversified  

U.S. Energy

  Non-diversified  

U.S. Healthcare

  Non-diversified  

U.S. Technology

  Non-diversified  

U.S. Transportation(a)

  Non-diversified  

U.S. Utilities

  Non-diversified  

 

  (a)

Formerly the iShares Transportation Average ETF.    

 

 

2.

SIGNIFICANT ACCOUNTING POLICIES    

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations 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. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method.Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its 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 October 31, 2021, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

Distributions: 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. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

 

52  

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Notes to Financial Statements  (unaudited) (continued)

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. 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. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

   

Equity investments traded on a recognized securities exchange are valued at that day’s 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.

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. 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 price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

   

Level 3 – Unobservable inputs 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 financial instruments).

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 judgment 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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 market 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 Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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

 

 

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Notes to Financial Statements  (unaudited) (continued)

  

        

    

 

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.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule 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, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “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, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

iShares ETF and Counterparty  

Market Value of

Securities on Loan

     Cash Collateral
Received(a)
     Non-Cash Collateral
Received
     Net Amount  

Dow Jones U.S.

          

Barclays Bank PLC

  $ 1,650,222      $ 1,650,222      $      $  

Barclays Capital, Inc.

    202,310        202,310                

BNP Paribas SA

    1,663,475        1,663,475                

BofA Securities, Inc.

    145,766        145,766                

Citadel Clearing LLC

    251,178        251,178                

Citigroup Global Markets, Inc.

    695,683        695,683                

Credit Suisse Securities (USA) LLC

    145,944        145,944                

Goldman Sachs & Co. LLC

    3,520,908        3,520,908                

J.P. Morgan Securities LLC

    5,029,516        5,029,516                

Jefferies LLC

    253,124        253,124                

Morgan Stanley

    707,060        707,060                

National Financial Services LLC

    411,034        411,034                

Natixis S.A.

    253,182        253,182                

Scotia Capital (USA), Inc.

    284,954        281,638               (3,316 )(b)  

SG Americas Securities LLC

    884,210        884,210                

State Street Bank & Trust Co.

    666,134        647,850               (18,284 )(b) 

Toronto Dominion Bank

    342,417        342,417                

UBS Securities LLC

    99,929        99,929                

Wells Fargo Bank N.A.

    470,492        470,492                            —                    —  
 

 

 

    

 

 

    

 

 

    

 

 

 
 

 

$

 

17,677,538

 

 

  

 

$

 

17,655,938

 

 

  

 

$

 

 

 

  

 

$

 

(21,600

 

 

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Energy

          

Barclays Bank PLC

  $ 743      $ 743      $      $  

BNP Paribas SA

    1,352,033        1,341,800               (10,233 )(b) 

Goldman Sachs & Co. LLC

    13,153,203        12,952,786               (200,417 )(b) 

Morgan Stanley

    2,409,318        2,332,350               (76,968 )(b) 

Natixis S.A.

    5,237,313        5,237,313                
 

 

 

    

 

 

    

 

 

    

 

 

 
 

 

$

 

22,152,610

 

 

  

 

$

 

21,864,992

 

 

  

 

$

 

 

 

  

 

$

 

(287,618

 

 

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Healthcare

          

Barclays Bank PLC

  $ 1,161,269      $ 1,161,269      $      $  

Barclays Capital, Inc.

    364,968        364,968                

BNP Paribas SA

    2,416,236        2,416,236                

Goldman Sachs & Co. LLC

    4,609,536        4,609,536                

J.P. Morgan Securities LLC

    11,401,510        11,401,510                

National Financial Services LLC

    97,024        97,024                

Natixis S.A.

    1,533,181        1,533,181                

SG Americas Securities LLC

    31,654        31,649               (5 )(b)  

UBS Securities LLC

    2,563,125        2,563,125                

Virtu Americas LLC

    1,236,339        1,236,339                
 

 

 

    

 

 

    

 

 

    

 

 

 
 

 

$

 

25,414,842

 

 

  

 

$

 

25,414,837

 

 

  

 

$

 

 

 

  

 

$

 

(5

 

 

 

 

    

 

 

    

 

 

    

 

 

 

 

 

54  

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Notes to Financial Statements  (unaudited) (continued)

  

        

    

 

iShares ETF and Counterparty    Market Value of
Securities on Loan
     Cash Collateral
Received(a)
     Non-Cash Collateral
Received
     Net Amount  

U.S. Technology

           

Barclays Bank PLC

   $ 5,347,946      $ 5,347,946      $      $  

BMO Capital Markets Corp.

     98,872        98,872                

BNP Paribas SA

     7,711,485        7,711,485                

BofA Securities, Inc.

     509,622        509,622                

Citadel Clearing LLC

     1,453        1,450               (3 )(b)  

Citigroup Global Markets, Inc.

     7,277,519        7,277,519                

Credit Suisse Securities (USA) LLC

     1,599,466        1,599,466                

Deutsche Bank Securities, Inc.

     47,880        47,880                

Goldman Sachs & Co. LLC

     11,890,067        11,890,067                

J.P. Morgan Securities LLC

     13,084,847        13,084,847                

Morgan Stanley

     2,586,268        2,586,268                

National Financial Services LLC

     45,104        45,104                

SG Americas Securities LLC

     3,434,836        3,434,836                

State Street Bank & Trust Co.

     8,751,584        8,751,584                

UBS AG

     3,884,360        3,884,360                

Virtu Americas LLC

     3,378,195        3,378,195                

Wells Fargo Bank N.A.

     314,717        306,421               (8,296 )(b) 

Wells Fargo Securities LLC

     135,396        135,396                
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 70,099,617      $ 70,091,318      $      $ (8,299
  

 

 

    

 

 

    

 

 

    

 

 

 

U.S. Transportation

           

Barclays Bank PLC

   $ 259,790      $ 259,790      $      $  

BNP Paribas SA

     150,765        150,765                

Credit Suisse Securities (USA) LLC

     5,083,717        5,083,717                

Goldman Sachs & Co. LLC

     76,043        76,043                

Morgan Stanley

     1,591,789        1,591,789                

UBS AG

     5,859,780        5,859,780                
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 13,021,884      $ 13,021,884      $      $  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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) 

The market value of the loaned securities is determined as of October 31, 2021. Additional collateral is delivered to the Fund 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.

 

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent 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 market 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. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

 

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Notes to Financial Statements  (unaudited) (continued)

  

        

    

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

For its investment advisory services to each of the iShares U.S. Energy, iShares U.S. Healthcare, iShares U.S. Technology, iShares U.S. Transportation ETF and iShares U.S. Utilities, 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:

 

Aggregate Average Daily Net Assets    Investment Advisory Fee  

First $10 billion

     0.48

Over $10 billion, up to and including $20 billion

     0.43  

Over $20 billion, up to and including $30 billion

     0.38  

Over $30 billion, up to and including $40 billion

     0.34  

Over $40 billion, up to and including $50 billion

     0.33  

Over $50 billion

     0.31  

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. 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 SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 77% of securities lending income (which excludes collateral investment fees) 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 that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended October 31, 2021, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF    Fees Paid
to BTC
 

Dow Jones U.S.

   $ 9,451  

U.S. Energy

     2,571  

U.S. Healthcare

     11,832  

U.S. Technology

     33,376  

U.S. Transportation

     7,276  

U.S. Utilities

     372  

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.    

 

 

56  

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Notes to Financial Statements  (unaudited) (continued)

  

        

    

 

Other Transactions: 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 six months ended October 31, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)
 

Dow Jones U.S.

  $   10,411,531      $   7,947,088      $ (633,123

U.S. Energy

    62,669,585        48,621,734         (26,666,180

U.S. Healthcare

    79,440,486        53,672,766        2,464,403  

U.S. Technology

     216,989,153         67,887,405        (1,978,927

U.S. Transportation

    16,360,874        9,395,831        (873,493

U.S. Utilities

    27,679,881        29,618,031        (3,317,606

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 shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the six months ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

Dow Jones U.S.

  $ 53,419,539      $ 50,804,833  

U.S. Energy

    271,509,186        267,877,022  

U.S. Healthcare

    170,308,338        174,765,697  

U.S. Technology

    703,483,020        699,108,446  

U.S. Transportation

     1,094,618,817         1,102,287,004  

U.S. Utilities

    105,145,532        105,596,226  

For the six months ended October 31, 2021, in-kind transactions were as follows:

 

iShares ETF  

In-kind

Purchases

    

In-kind

Sales

 

Dow Jones U.S.

  $ 37,700,397      $ 16,211,300  

U.S. Energy

    644,736,224        707,707,098  

U.S. Healthcare

    543,491,643        334,590,740  

U.S. Technology

     2,063,851,455         1,446,709,324  

U.S. Transportation

    1,318,368,986        1,608,661,648  

U.S. Utilities

    24,438,359        20,950,336  

 

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 each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of April 30, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:    

 

iShares ETF   Non-Expiring  

Dow Jones U.S.

  $ 23,727,408  

U.S. Energy

     203,633,929  

U.S. Healthcare

    90,834,480  

U.S. Technology

    52,753,889  

U.S. Transportation

    35,544,075  

U.S. Utilities

    45,910,325  

 

 

O T E S  T O  I N A N C I A L  T A T E M E N T S

  57


Notes to Financial Statements  (unaudited) (continued)

 

As of October 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
   

 

Net Unrealized
Appreciation
(Depreciation)

 

Dow Jones U.S.

  $     801,245,401      $     1,051,378,345      $         (42,879,481   $   1,008,498,864  

U.S. Energy

    2,236,993,700        304,532,989        (99,123,977     205,409,012  

U.S. Healthcare

    2,384,912,695        759,095,759        (97,855,780     661,239,979  

U.S. Technology

    5,579,590,641        3,866,437,287        (131,036,557     3,735,400,730  

U.S. Transportation

    1,750,752,004        158,490,041        (68,018,286     90,471,755  

U.S. Utilities

    796,319,354        73,956,634        (38,332,625     35,624,009  

 

9.

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. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. 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.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

Concentration Risk: 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.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

10.

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 were as follows:    

 

    

 

Six Months Ended

10/31/21

     Year Ended
04/30/21
 
iShares ETF  

 

Shares

     Amount      Shares     Amount  

 

Dow Jones U.S.

         

Shares sold

    350,000      $ 37,820,586        350,000 (a)     $ 34,300,344  

Shares redeemed

    (150,000      (16,266,061      (1,200,000 )(a)      (100,050,090
 

 

 

    

 

 

    

 

 

   

 

 

 

Net increase (decrease)

 

 

 

 

200,000

 

 

   $ 21,554,525        (850,000   $ (65,749,746
 

 

 

    

 

 

    

 

 

   

 

 

 

U.S. Energy

         

Shares sold

    22,950,000      $ 648,224,918        76,000,000     $ 1,857,056,842  

Shares redeemed

    (25,600,000      (710,093,708      (19,250,000     (396,746,065
 

 

 

    

 

 

    

 

 

   

 

 

 

Net increase (decrease)

 

 

 

 

(2,650,000

 

   $ (61,868,790      56,750,000     $ 1,460,310,777  
 

 

 

    

 

 

    

 

 

   

 

 

 

U.S. Healthcare

         

Shares sold

    1,900,000      $ 544,712,718        1,650,000     $ 371,904,383  

Shares redeemed

    (1,200,000      (339,180,405      (3,350,000     (764,650,028
 

 

 

    

 

 

    

 

 

   

 

 

 

Net increase (decrease)

 

 

 

 

700,000

 

 

   $ 205,532,313        (1,700,000   $ (392,745,645
 

 

 

    

 

 

    

 

 

   

 

 

 

U.S. Technology

         

Shares sold

    19,800,000      $ 2,067,444,119        16,200,000 (b)    $ 1,217,516,386  

Shares redeemed

    (14,100,000      (1,445,403,346      (21,150,000 )(b)      (1,607,622,674
 

 

 

    

 

 

    

 

 

   

 

 

 

Net increase (decrease)

 

 

 

 

5,700,000

 

 

   $ 622,040,773        (4,950,000   $ (390,106,288
 

 

 

    

 

 

    

 

 

   

 

 

 

U.S. Transportation

         

Shares sold

    5,100,000      $ 1,321,122,822        10,000,000     $ 2,071,869,906  

Shares redeemed

    (6,300,000      (1,618,167,623      (5,100,000     (1,037,036,866
 

 

 

    

 

 

    

 

 

   

 

 

 

Net increase (decrease)

 

 

 

 

(1,200,000

 

   $ (297,044,801      4,900,000     $ 1,034,833,040  
 

 

 

    

 

 

    

 

 

   

 

 

 

U.S. Utilities

         

Shares sold

    300,000      $ 24,593,884        1,450,000 (a)    $ 110,955,395  

Shares redeemed

    (250,000      (21,104,312      (3,800,000 )(a)      (285,761,440
 

 

 

    

 

 

    

 

 

   

 

 

 

Net increase (decrease)

 

 

 

 

50,000

 

 

   $ 3,489,572        (2,350,000   $ (174,806,045
 

 

 

    

 

 

    

 

 

   

 

 

 

 

  (a) 

Share transactions reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

 
  (b) 

Share transactions reflect a four-for-one stock split effective after the close of trading on December 4, 2020.

 

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

11.

LEGAL PROCEEDINGS

Certain iShares funds (the “Impacted Funds”), along with thousands of other former shareholders of Tribune Company (“Tribune”), were named as defendants in one or more lawsuits (the “Litigation”) arising out of Tribune’s 2007 leveraged buyout transaction (“LBO”). The Litigation seeks to “claw back” from former Tribune shareholders, including the Impacted Funds, proceeds received in connection with the LBO. The iShares Dow Jones U.S. ETF received proceeds of $118,354 in the LBO. The claims that were originally brought against the Impacted Funds were dismissed but are currently subject to an appeal which remains pending. The outcome of this appeal could result in new claims being brought against the Impacted Funds and/or previously dismissed claims being revived and subject to continuing litigation. The Impacted Funds intend to vigorously defend the Litigation.

 

12.

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 additional disclosure in the financial statements.

 

 

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Board Review and Approval of Investment Advisory Contract  

 

iShares Dow Jones U.S. ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares U.S. Energy ETF, iShares U.S. Healthcare ETF, iShares U.S. Technology ETF, iShares U.S. Utilities ETF (each the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2020, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue,

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, 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 assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares U.S. Transportation ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, 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 assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

 

 

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Supplemental Information  (unaudited)

 

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being 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 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.

October 31, 2021    

 

     Total Cumulative Distributions
for the Fiscal Year-to-Date
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
iShares ETF   Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
    Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

Dow Jones U.S.(a)

  $  0.545092     $     $  0.008817     $  0.553909       98         2     100

U.S. Utilities(a)

    1.049051             0.001910       1.050961       100             0 (b)      100  

 

  (a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 
  (b) 

Rounds to less than 1%.

 

 

 

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General Information  

 

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report  

 

Portfolio Abbreviations — Equity
NVS    Non-Voting Shares
REIT    Real Estate Investment Trust
 

 

 

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Want to know more?

iShares.com    |     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 FTSE Russell or S&P Dow Jones Indices LLC, nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.

©2021 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-SAR-401-1021

 

 

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  OCTOBER 31, 2021

 

  

2021 Semi-Annual Report

(Unaudited)

 

iShares Trust

 

·  

iShares MSCI KLD 400 Social ETF | DSI | NYSE Arca

·  

iShares MSCI USA ESG Select ETF | SUSA | NYSE Arca

·  

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

·  

iShares U.S. Consumer Discretionary ETF | IYC | NYSE Arca

·  

iShares U.S. Consumer Staples ETF | IYK | NYSE Arca

·  

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

·  

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

·  

iShares U.S. Industrials ETF | IYJ | Cboe BZX


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.

Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021

 

     6-Month   12-Month

U.S. large cap equities
(S&P 500® Index)

 

  10.91%   42.91%

U.S. small cap equities
(Russell 2000® Index)

 

 

1.85

 

50.80

International equities
(MSCI Europe, Australasia, Far East Index)

 

  4.14   34.18

Emerging market equities
(MSCI Emerging Markets Index)

 

  (4.87)   16.96

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

 

  0.01   0.06

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

 

  1.59   (4.77)

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

 

  1.06   (0.48)

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

 

  0.33   2.76

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

 

  2.36   10.53

 

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

 

2  

H I S  A G E   I S   N O T  A R T   O F  O U R  U N D  E P O R T


Table of Contents

 

     

Page

 

 

The Markets in Review

     2  

Fund Summary

     4  

About Fund Performance

     12  

Shareholder Expenses

     12  

Schedules of Investments

     13  

Financial Statements

  

Statements of Assets and Liabilities

     45  

Statements of Operations

     47  

Statements of Changes in Net Assets

     49  

Financial Highlights

     53  

Notes to Financial Statements

     61  

Board Review and Approval of Investment Advisory Contract

     71  

Supplemental Information

     79  

General Information

     80  

Glossary of Terms Used in this Report

     81  

 

 

 


Fund Summary as of October 31, 2021    iShares® MSCI KLD 400 Social ETF

 

Investment Objective

The iShares MSCI KLD 400 Social ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI KLD 400 Social Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    13.88      47.29      20.02     16.31        47.29      149.04      352.93

Fund Market

    13.91        47.11        20.02       16.30          47.11        149.07        352.66  

Index

    14.03        47.67        20.43       16.80                47.67        153.28        372.44  

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 12 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
  Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $      1,000.00          $      1,138.80          $        1.35               $      1,000.00          $      1,023.90          $       1.28          0.25

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    33.2

Consumer Discretionary

    12.6  

Communication Services

    10.8  

Health Care

    9.4  

Financials

    9.2  

Industrials

    8.5  

Consumer Staples

    6.4  

Real Estate

    3.2  

Materials

    3.0  

Energy

    2.2  

Utilities

    1.5  

 

  (a) 

Excludes money market funds.

 
   

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Microsoft Corp.

    10.7

Tesla Inc.

    4.1  

Alphabet Inc., Class A

    4.0  

Alphabet Inc., Class C

    3.9  

NVIDIA Corp.

    2.9  

Home Depot Inc. (The)

    1.8  

Visa Inc., Class A

    1.6  

Procter & Gamble Co. (The)

    1.6  

Adobe Inc.

    1.4  

Walt Disney Co. (The)

    1.4  
 

 

 

4  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of October 31, 2021    iShares® MSCI USA ESG Select ETF

 

Investment Objective

The iShares MSCI USA ESG Select ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. companies that have positive environmental, social and governance characteristics, as represented by the MSCI USA Extended ESG Select Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    12.73      44.66      20.33     15.79        44.66      152.25      333.04

Fund Market

    12.69        44.61        20.33       15.79          44.61        152.29        333.15  

Index

    12.89        45.03        20.73       16.27                45.03        156.51        351.70  

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 12 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
  Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $       1,000.00          $      1,127.30          $        1.34               $      1,000.00          $       1,023.90          $       1.28          0.25

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Information Technology

    31.6

Financials

    11.3  

Health Care

    11.0  

Industrials

    10.7  

Consumer Discretionary

    9.9  

Communication Services

    8.1  

Consumer Staples

    6.5  

Real Estate

    3.5  

Materials

    2.6  

Utilities

    2.5  

Energy

    2.3  

 

  (a) 

Excludes money market funds.

 

 

TEN LARGEST HOLDINGS

 

   
Security    

Percent of

Total Investments

 

(a) 

Microsoft Corp.

    5.3

Apple Inc.

    4.9  

Alphabet Inc., Class A

    2.9  

NVIDIA Corp.

    2.4  

Tesla Inc.

    2.2  

Home Depot Inc. (The)

    2.0  

BlackRock Inc.

    1.7  

3M Co.

    1.4  

Texas Instruments Inc.

    1.4  

Marsh & McLennan Companies Inc.

    1.4  
 

 

 

U N D   S U M M A R Y

  5


Fund Summary as of October 31, 2021    iShares® U.S. Basic Materials ETF

 

Investment Objective

The iShares U.S. Basic Materials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the basic materials sector, as represented by the Russell 1000 Basic Materials RIC 22.5/45 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.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    2.76      39.54      13.44     9.05        39.54      87.84      137.85

Fund Market

    2.79        39.41        13.45       9.06          39.41        87.96        138.00  

Index(a)

    2.96        40.10        13.86       9.49          40.10        91.36        147.63  

Dow Jones U.S. Basic Materials Index

    2.79        39.85        13.82       9.47          39.85        91.03        147.20  

Russell 1000 Basic Materials RIC 22.5/45 Capped Index(b)

    N/A        N/A        N/A       N/A                N/A        N/A        N/A  

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.

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Basic Materials IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Basic Materials RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Basic Materials IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Basic Materials RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 1.70%.

 

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.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,027.60        $ 1.99             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Chemicals

    57.7

Metals & Mining

    29.3  

Containers & Packaging

    6.0  

Trading Companies & Distributors

    5.2  

Other (each representing less than 1%)

    1.8  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Air Products & Chemicals Inc.

    9.9

Ecolab Inc.

    8.3  

Freeport-McMoRan Inc.

    8.3  

Newmont Corp.

    6.5  

Dow Inc.

    6.3  

International Flavors & Fragrances Inc.

    5.6  

Fastenal Co.

    4.5  

Nucor Corp.

    4.4  

Albemarle Corp.

    4.1  

LyondellBasell Industries NV, Class A

    3.6  
 

 

  (a) 

Excludes money market funds.

 

 

 

6  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of October 31, 2021    iShares® U.S. Consumer Discretionary ETF

 

Investment Objective

The iShares U.S. Consumer Discretionary ETF (the “Fund”) (formerly the iShares U.S. Consumer Services ETF) seeks to track the investment results of an index composed of U.S. equities in the consumer discretionary sector, as represented by the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily 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.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    7.81      39.12      19.50     18.02        39.12      143.70      424.39

Fund Market

    7.85        39.21        19.51       18.03          39.21        143.81        424.58  

Index(a)

    8.02        39.69        20.03       18.54          39.69        149.13        447.77  

Dow Jones U.S. Consumer Services Capped (TR) IndexTM(b)

    3.14        33.38        N/A       N/A          33.38        N/A        N/A  

Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index(c)

    N/A        N/A        N/A       N/A                N/A        N/A        N/A  

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.

 

  (a) 

Index performance through June 23, 2019 reflects the performance of the Dow Jones U.S. Consumer Services Total Return Index. Index performance beginning on June 24, 2019 through September 19, 2021 reflects the performance of the Dow Jones U.S. Consumer Services Capped (TR) IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Consumer Services Capped (TR) IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Dow Jones U.S. Consumer Services Capped (TR) IndexTM was April 15, 2019. The cumulative total return for this index for the period April 15, 2019 through October 31, 2021 was 54.71%.

 
  (c) 

The inception date of the Russell 1000 Consumer Discretionary 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 6.60%.

 

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.

Expense Example

 

Actual

         

Hypothetical 5% Return

          

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,078.10        $ 2.04             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Retailing

    35.4

Consumer Services

    15.1  

Media & Entertainment

    13.6  

Automobiles & Components

    13.5  

Consumer Durables & Apparel

    9.3  

Food & Staples Retailing

    7.1  

Transportation

    3.0  

Household & Personal Products

    1.3  

Other (each representing less than 1%)

    1.7  

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Amazon.com Inc.

    14.2

Tesla Inc.

    9.7  

Home Depot Inc. (The)

    4.5  

Netflix Inc.

    4.1  

Walt Disney Co. (The)

    4.0  

Costco Wholesale Corp.

    3.6  

Walmart Inc.

    3.5  

Nike Inc., Class B

    3.4  

McDonald’s Corp.

    3.0  

Lowe’s Companies Inc.

    2.7  
 

 

 

U N D   S U M M A R Y

  7


Fund Summary as of October 31, 2021    iShares® U.S. Consumer Staples ETF

 

Investment Objective

The iShares U.S. Consumer Staples ETF (the “Fund”) (formerly the iShares U.S. Consumer Goods ETF) seeks to track the investment results of an index composed of U.S. equities in the consumer staples sector, as represented by the Russell 1000 Consumer Staples RIC 22.5/45 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.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    2.18      29.42      12.85     12.94        29.42      83.03      237.60

Fund Market

    2.26        29.37        12.86       12.94          29.37        83.13        237.68  

Index(a)

    2.38        29.92        13.32       13.42          29.92        86.88        252.38  

Dow Jones U.S. Consumer Goods IndexTM

    12.31        42.52        15.44       14.48          42.52        105.01        286.57  

Russell 1000 Consumer Staples RIC 22.5/45 Capped Index(b)

    N/A        N/A        N/A       N/A                N/A        N/A        N/A  

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Consumer Goods IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Consumer Goods IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Consumer Staples RIC 22.5/45 Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 1.13%.

 

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.

Expense Example

 

Actual

         

Hypothetical 5% Return

          

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,021.80        $ 1.99             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Food, Beverage & Tobacco

    58.9

Household & Personal Products

    25.1  

Health Care Equipment & Services

    7.5  

Food & Staples Retailing

    6.8  

Materials

    1.7  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Procter & Gamble Co. (The)

    16.7

PepsiCo Inc.

    10.8  

Coca-Cola Co. (The)

    10.6  

Philip Morris International Inc.

    7.2  

CVS Health Corp.

    4.7  

Mondelez International Inc., Class A

    3.8  

Altria Group Inc.

    3.5  

Colgate-Palmolive Co.

    3.1  

Kimberly-Clark Corp.

    2.4  

General Mills Inc.

    2.1  
 

 

  (a) 

Excludes money market funds.

 

 

 

8  

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Fund Summary as of October 31, 2021    iShares® U.S. Financial Services ETF

 

Investment Objective

The iShares U.S. Financial Services ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financial services sector, as represented by the Dow Jones U.S. Financial Services IndexTM (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.

Performance

 

           Average Annual Total Returns           Cumulative Total Returns  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    9.94      69.56      19.19      17.38       69.56      140.54      396.68

Fund Market

    9.97        69.68        19.19        17.39         69.68        140.54        396.78  

Index

    10.15        70.18        19.68        17.88               70.18        145.56        418.11  

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 12 for more information.

Expense Example

 

Actual

         

Hypothetical 5% Return

          

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,099.40        $ 2.06             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Banks

    43.2

Diversified Financials

    41.7  

Software & Services

    14.8  

Insurance

    0.3  

 

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

JPMorgan Chase & Co.

    11.6

Visa Inc., Class A

    8.1  

Bank of America Corp.

    8.1  

Mastercard Inc., Class A

    6.7  

Wells Fargo & Co.

    4.8  

Morgan Stanley

    3.4  

Citigroup Inc.

    3.2  

Goldman Sachs Group Inc. (The)

    3.2  

BlackRock Inc.

    3.1  

Charles Schwab Corp. (The)

    2.8  
 

 

  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  9


Fund Summary as of October 31, 2021    iShares® U.S. Financials ETF

 

Investment Objective

The iShares U.S. Financials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the financials sector, as represented by the Russell 1000 Financials 40 Act 15/22.5 Daily 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.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    12.06      62.96      16.65     15.49        62.96      115.96      321.96

Fund Market

    11.97        62.97        16.64       15.48          62.97        115.87        321.64  

Index(a)

    12.29        63.58        17.11       15.96          63.58        120.29        339.75  

Dow Jones U.S. Financials Capped (TR) Index(b)

    9.84        60.02        N/A       N/A          60.02        N/A        N/A  

Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index(c)

    N/A        N/A        N/A       N/A                N/A        N/A        N/A  

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.

 

  (a) 

Index performance through June 23, 2019 reflects the performance of the Dow Jones U.S. Financials Total Return Index. Index performance beginning on June 24, 2019 through September 19, 2021 reflects the performance of the Dow Jones U.S. Financials Capped (TR) IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Financials Capped (TR) IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Dow Jones U.S. Financials Capped (TR) IndexTM was April 15, 2019. The cumulative total return for this index for the period April 15, 2019 through October 31, 2021 was 50.58%.

 
  (c) 

The inception date of the Russell 1000 Financials 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was 11.61%.

 

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.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,120.60        $ 2.08             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Diversified Financials

    43.6

Banks

    36.2  

Insurance

    19.7  

Software & Services

    0.5  

 

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Berkshire Hathaway Inc., Class B

    8.3

JPMorgan Chase & Co.

    8.0  

Bank of America Corp.

    6.3  

Wells Fargo & Co.

    4.5  

Citigroup Inc.

    3.1  

Morgan Stanley

    3.1  

Goldman Sachs Group Inc. (The)

    3.0  

BlackRock Inc.

    2.9  

Charles Schwab Corp. (The)

    2.7  

S&P Global Inc.

    2.5  
 

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary as of October 31, 2021    iShares® U.S. Industrials ETF

 

Investment Objective

The iShares U.S. Industrials ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities in the industrials sector, as represented by the Russell 1000 Industrials 40 Act 15/22.5 Daily 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.

Performance

 

           Average Annual Total Returns           Cumulative Total Returns  
     6 Months      1 Year      5 Years      10 Years            1 Year      5 Years      10 Years  

Fund NAV

    1.32      36.70      16.26      15.05       36.70      112.41      306.41

Fund Market

    1.25        36.50        16.26        15.05         36.50        112.39        306.39  

Index(a)

    1.52        37.23        16.76        15.55         37.23        116.97        324.42  

Dow Jones U.S. Industrials Index

    2.64        38.76        17.01        15.68         38.76        119.38        329.14  

Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index(b)

    N/A        N/A        N/A        N/A               N/A        N/A        N/A  

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.

 

  (a) 

Index performance through September 19, 2021 reflects the performance of the Dow Jones U.S. Industrials IndexTM. Index performance beginning on September 20, 2021 reflects the performance of the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index, which, effective as of September 20, 2021, replaced the Dow Jones U.S. Industrials IndexTM as the underlying index of the fund.

 
  (b) 

The inception date of the Russell 1000 Industrials 40 Act 15/22.5 Daily Capped Index was July 9, 2021. The cumulative total return for this index for the period July 9, 2021 through October 31, 2021 was -1.89%.

 

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.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,013.20        $ 1.98             $ 1,000.00        $ 1,023.20        $ 1.99          0.39

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 12 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector    
Percent of
Total Investments
 
(a) 

Capital Goods

    40.4

Software & Services

    29.5  

Transportation

    11.9  

Materials

    6.3  

Commercial & Professional Services

    4.1  

Diversified Financials

    3.6  

Technology Hardware & Equipment

    2.4  

Pharmaceuticals, Biotechnology & Life Sciences

    1.0  

Other (each representing less than 1%)

    0.8  

TEN LARGEST HOLDINGS

 

   
Security    
Percent of
Total Investments
 
(a) 

Visa Inc., Class A

    6.3

Mastercard Inc., Class A

    5.1  

PayPal Holdings Inc.

    4.8  

Accenture PLC, Class A

    4.0  

Union Pacific Corp.

    2.8  

United Parcel Service Inc., Class B

    2.7  

Honeywell International Inc.

    2.7  

Raytheon Technologies Corp.

    2.4  

General Electric Co.

    2.0  

American Express Co.

    2.0  
 

 

  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  11


About Fund Performance        

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at 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. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined by using the midpoint between the highest bid and the lowest ask 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. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

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

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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 and other fees 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.

 

 

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Schedule of Investments (unaudited)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.0%            

Spirit AeroSystems Holdings Inc., Class A

    17,781     $ 734,178  
   

 

 

 
Air Freight & Logistics — 0.8%            

CH Robinson Worldwide Inc.

    22,966       2,227,472  

Echo Global Logistics Inc.(a)

    3,684       177,679  

Expeditors International of Washington Inc.

    29,263       3,606,958  

United Parcel Service Inc., Class B

    124,975       26,678,413  
   

 

 

 
      32,690,522  
Airlines — 0.1%            

Delta Air Lines Inc.(a)

    27,574       1,078,971  

Southwest Airlines Co.(a)

    25,327       1,197,460  
   

 

 

 
      2,276,431  
Auto Components — 0.3%            

Aptiv PLC(a)

    46,810       8,092,981  

Autoliv Inc.

    14,451       1,399,579  

BorgWarner Inc.

    41,731       1,880,816  
   

 

 

 
      11,373,376  
Automobiles — 4.1%            

Harley-Davidson Inc.

    26,526       967,934  

Tesla Inc.(a)

    141,495           157,625,430  
   

 

 

 
      158,593,364  
Banks — 1.9%            

Bank of Hawaii Corp.

    6,953       587,529  

Cathay General Bancorp.

    13,344       562,983  

CIT Group Inc.

    17,028       843,397  

Citizens Financial Group Inc.

    73,241       3,470,159  

Comerica Inc.

    24,320       2,069,389  

First Republic Bank/CA

    30,399       6,576,216  

Heartland Financial USA Inc.

    6,970       349,336  

Huntington Bancshares Inc./OH

    255,356       4,019,304  

International Bancshares Corp.

    9,498       402,715  

KeyCorp.

    167,472       3,897,073  

M&T Bank Corp.

    22,176       3,262,533  

Old National Bancorp./IN

    23,338       398,613  

People’s United Financial Inc.

    72,796       1,247,723  

PNC Financial Services Group Inc. (The)

    73,380       15,485,381  

Regions Financial Corp.

    165,556       3,920,366  

SVB Financial Group(a)

    9,649       6,922,193  

Truist Financial Corp.

    232,232       14,739,765  

Umpqua Holdings Corp.

    38,245       782,110  

Zions Bancorp. NA

    28,499       1,795,152  
   

 

 

 
      71,331,937  
Beverages — 2.2%            

Coca-Cola Co. (The)

    707,769       39,896,938  

Keurig Dr Pepper Inc.

    121,906       4,399,588  

PepsiCo Inc.

    238,730       38,578,768  
   

 

 

 
      82,875,294  
Biotechnology — 2.3%            

AbbVie Inc.

    305,192       34,996,367  

Amgen Inc.

    99,289       20,549,844  

Biogen Inc.(a)

    26,077       6,954,214  

BioMarin Pharmaceutical Inc.(a)

    31,391       2,487,109  

Gilead Sciences Inc.

    216,685       14,058,523  

Vertex Pharmaceuticals Inc.(a)(b)

    44,635       8,254,351  
   

 

 

 
      87,300,408  
Building Products — 0.8%            

A O Smith Corp.

    23,306       1,702,970  
Security   Shares     Value  
Building Products (continued)            

Allegion PLC

    15,558     $ 1,996,092  

Builders FirstSource Inc.(a)

    34,023       1,982,520  

Fortune Brands Home & Security Inc.

    23,944       2,427,922  

Johnson Controls International PLC

    124,108       9,105,804  

Lennox International Inc.

    5,819       1,741,510  

Masco Corp.

    43,944       2,880,529  

Owens Corning

    17,947       1,676,429  

Trane Technologies PLC

    41,409       7,492,130  
   

 

 

 
      31,005,906  
Capital Markets — 4.4%            

Ameriprise Financial Inc.

    20,082       6,067,375  

Bank of New York Mellon Corp. (The)

    144,269       8,540,725  

BlackRock Inc.(c)

    26,346       24,856,397  

Charles Schwab Corp. (The)

    249,797       20,490,848  

CME Group Inc.

    61,991       13,672,115  

FactSet Research Systems Inc.

    6,525       2,896,382  

Franklin Resources Inc.

    51,768       1,630,174  

Intercontinental Exchange Inc.

    97,135       13,449,312  

Invesco Ltd.

    59,930       1,522,821  

Moody’s Corp.

    29,076       11,751,066  

Morgan Stanley

    241,123       24,782,622  

Northern Trust Corp.

    34,226       4,211,167  

S&P Global Inc.

    41,611       19,730,272  

State Street Corp.

    63,309       6,239,102  

T Rowe Price Group Inc.

    39,307       8,524,902  
   

 

 

 
          168,365,280  
Chemicals — 2.3%            

Air Products & Chemicals Inc.

    38,170       11,443,748  

Albemarle Corp.

    20,215       5,063,251  

Axalta Coating Systems Ltd.(a)(b)

    36,329       1,133,101  

Ecolab Inc.

    44,417       9,870,346  

HB Fuller Co.

    8,674       611,604  

International Flavors & Fragrances Inc.

    43,101       6,355,242  

Linde PLC

    89,903       28,697,038  

Minerals Technologies Inc.

    6,009       426,278  

Mosaic Co. (The)

    61,918       2,573,931  

PPG Industries Inc.

    41,074       6,595,252  

Sherwin-Williams Co. (The)

    43,901       13,899,496  
   

 

 

 
      86,669,287  
Commercial Services & Supplies — 0.2%            

ACCO Brands Corp.

    14,722       121,751  

Copart Inc.(a)

    36,887       5,728,182  

Deluxe Corp.

    7,062       251,901  

HNI Corp.

    7,777       290,860  

Interface Inc.

    11,049       158,664  

Steelcase Inc., Class A

    13,821       164,470  

Tetra Tech Inc.

    9,321       1,637,327  
   

 

 

 
      8,353,155  
Communications Equipment — 1.3%            

Cisco Systems Inc.

    728,180       40,756,235  

CommScope Holding Co. Inc.(a)

    35,217       377,174  

F5 Networks Inc.(a)(b)

    10,311       2,177,168  

Motorola Solutions Inc.

    29,390       7,306,060  

Plantronics Inc.(a)

    7,102       190,049  
   

 

 

 
      50,806,686  
Construction & Engineering — 0.1%            

EMCOR Group Inc.

    9,465       1,149,903  

Granite Construction Inc.

    7,676       284,933  
 

 

 

C H E D U L E   O F  N V E S T M E N T S

  13


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Construction & Engineering (continued)            

Quanta Services Inc.

    24,023     $ 2,913,509  
   

 

 

 
      4,348,345  
Consumer Finance — 0.6%            

Ally Financial Inc.

    64,187       3,064,287  

American Express Co.

    117,987       20,503,781  
   

 

 

 
      23,568,068  
Containers & Packaging — 0.4%            

Amcor PLC

    266,970       3,222,328  

Avery Dennison Corp.

    14,371       3,128,854  

Ball Corp.

    56,822       5,198,076  

Sealed Air Corp.

    26,310       1,560,709  

Sonoco Products Co.

    17,208       997,204  
   

 

 

 
      14,107,171  
Distributors — 0.2%            

LKQ Corp.(a)

    49,713       2,738,192  

Pool Corp.

    6,937       3,573,665  
   

 

 

 
      6,311,857  
Diversified Financial Services — 0.1%            

Equitable Holdings Inc.

    66,742       2,235,857  

Voya Financial Inc.

    21,000       1,465,170  
   

 

 

 
      3,701,027  
Diversified Telecommunication Services — 1.1%        

Liberty Global PLC, Class A(a)

    27,389       787,160  

Liberty Global PLC, Class C, NVS(a)

    61,084       1,761,663  

Lumen Technologies Inc.

    161,062       1,910,195  

Verizon Communications Inc.

    715,366       37,907,244  
   

 

 

 
      42,366,262  
Electric Utilities — 0.4%            

Alliant Energy Corp.

    43,299       2,449,424  

Eversource Energy

    59,453       5,047,560  

FirstEnergy Corp.

    93,748       3,612,111  

OGE Energy Corp.

    34,360       1,170,645  

PPL Corp.

    133,246       3,837,485  
   

 

 

 
      16,117,225  
Electrical Equipment — 0.5%            

Acuity Brands Inc.

    6,247       1,283,321  

Eaton Corp. PLC

    68,800       11,335,488  

Rockwell Automation Inc.

    20,110       6,423,134  

Sensata Technologies Holding PLC(a)(b)

    27,255       1,501,751  
   

 

 

 
            20,543,694  
Electronic Equipment, Instruments & Components — 0.8%  

Cognex Corp.

    30,463       2,668,254  

Corning Inc.

    140,058       4,981,863  

Flex Ltd.(a)(b)

    84,996       1,436,432  

Itron Inc.(a)

    7,802       606,762  

Keysight Technologies Inc.(a)

    31,957       5,752,899  

TE Connectivity Ltd.

    56,924       8,310,904  

Trimble Inc.(a)

    43,271       3,780,587  

Zebra Technologies Corp., Class A(a)

    9,264       4,946,513  
   

 

 

 
      32,484,214  
Energy Equipment & Services — 0.3%            

Baker Hughes Co.

    127,370       3,194,439  

Core Laboratories NV

    8,132       211,513  

NOV Inc.(a)

    66,883       937,700  

Schlumberger NV

    240,831       7,769,208  

TechnipFMC PLC(a)

    76,002       560,135  
   

 

 

 
      12,672,995  
Security   Shares     Value  
Entertainment — 1.6%            

Electronic Arts Inc.

    49,807     $ 6,985,432  

Walt Disney Co. (The)(a)

    313,950       53,079,526  
   

 

 

 
      60,064,958  
Equity Real Estate Investment Trusts (REITs) — 2.9%  

American Tower Corp.

    78,561       22,151,845  

AvalonBay Communities Inc.

    24,193       5,725,999  

Boston Properties Inc.

    25,654       2,915,321  

Corporate Office Properties Trust

    19,540       529,925  

Digital Realty Trust Inc.

    48,748       7,692,922  

Duke Realty Corp.

    64,421       3,623,037  

Equinix Inc.

    15,453       12,935,243  

Equity Residential

    61,422       5,306,861  

Federal Realty Investment Trust

    12,050       1,450,217  

Healthpeak Properties Inc.

    93,082       3,305,342  

Host Hotels & Resorts Inc.(a)

    122,750       2,065,882  

Iron Mountain Inc.

    49,915       2,278,121  

Macerich Co. (The)

    35,617       644,311  

PotlatchDeltic Corp.

    11,730       613,127  

Prologis Inc.

    127,815       18,528,062  

SBA Communications Corp.

    18,913       6,531,226  

Simon Property Group Inc.

    56,613       8,298,334  

UDR Inc.

    51,334       2,850,577  

Weyerhaeuser Co.

    129,694       4,632,670  
   

 

 

 
          112,079,022  
Food & Staples Retailing — 0.3%            

Kroger Co. (The)

    124,571       4,985,331  

Sysco Corp.

    88,591       6,812,648  

United Natural Foods Inc.(a)

    9,972       432,685  
   

 

 

 
      12,230,664  
Food Products — 1.4%            

Archer-Daniels-Midland Co.

    96,767       6,216,312  

Bunge Ltd.

    24,503       2,269,958  

Campbell Soup Co.

    33,583       1,341,641  

Conagra Brands Inc.

    83,087       2,675,401  

Darling Ingredients Inc.(a)

    28,378       2,398,509  

General Mills Inc.

    105,019       6,490,174  

Hain Celestial Group Inc. (The)(a)

    14,864       666,948  

Hormel Foods Corp.

    51,255       2,169,112  

Ingredion Inc.

    11,611       1,105,715  

JM Smucker Co. (The)

    18,835       2,314,068  

Kellogg Co.

    44,202       2,709,583  

Kraft Heinz Co. (The)

    116,493       4,180,934  

Lamb Weston Holdings Inc.

    25,389       1,433,209  

McCormick & Co. Inc./MD, NVS

    42,930       3,444,274  

Mondelez International Inc., Class A

    242,672       14,739,897  
   

 

 

 
      54,155,735  
Gas Utilities — 0.1%            

Atmos Energy Corp.

    22,422       2,065,515  

New Jersey Resources Corp.

    16,888       638,535  

Northwest Natural Holding Co.

    5,261       237,218  

UGI Corp.

    36,019       1,563,585  
   

 

 

 
      4,504,853  
Health Care Equipment & Supplies — 2.1%            

ABIOMED Inc.(a)

    7,804       2,591,240  

Align Technology Inc.(a)

    12,997       8,114,937  

Becton Dickinson and Co.

    50,243       12,037,720  

Cooper Companies Inc. (The)

    8,497       3,542,569  

DENTSPLY SIRONA Inc.

    37,451       2,142,572  

Dexcom Inc.(a)

    16,739       10,431,912  
 

 

 

14  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Edwards Lifesciences Corp.(a)

    107,355     $ 12,863,276  

Hologic Inc.(a)

    44,393       3,254,451  

IDEXX Laboratories Inc.(a)

    14,742       9,820,236  

Insulet Corp.(a)

    11,448       3,549,109  

ResMed Inc.

    25,206       6,626,910  

STERIS PLC

    17,233       4,028,041  
   

 

 

 
      79,002,973  
Health Care Providers & Services — 1.6%            

AmerisourceBergen Corp.

    26,685       3,256,104  

Cardinal Health Inc.

    50,268       2,403,313  

Centene Corp.(a)

    100,359       7,149,575  

Cigna Corp.

    59,231       12,652,334  

DaVita Inc.(a)

    11,945       1,233,202  

HCA Healthcare Inc.

    46,528       11,653,403  

Henry Schein Inc.(a)

    24,371       1,860,726  

Humana Inc.

    22,317       10,336,342  

Laboratory Corp. of America Holdings(a)

    16,906       4,852,360  

MEDNAX Inc.(a)(b)

    13,468       366,733  

Patterson Companies Inc.

    14,618       456,959  

Quest Diagnostics Inc.

    22,632       3,321,925  

Select Medical Holdings Corp.

    18,718       621,812  
   

 

 

 
      60,164,788  
Health Care Technology — 0.2%            

Cerner Corp.

    52,187       3,876,972  

Teladoc Health Inc.(a)(b)

    24,107       3,606,166  
   

 

 

 
      7,483,138  
Hotels, Restaurants & Leisure — 2.6%            

Aramark

    39,061       1,424,945  

Booking Holdings Inc.(a)

    7,072       17,119,756  

Choice Hotels International Inc.

    6,186       869,875  

Darden Restaurants Inc.

    22,513       3,245,024  

Domino’s Pizza Inc.

    6,710       3,280,989  

Hilton Worldwide Holdings Inc.(a)

    48,158       6,932,344  

Jack in the Box Inc.

    3,878       383,728  

Marriott International Inc./MD, Class A(a)

    47,896       7,664,318  

McDonald’s Corp.

    128,937       31,660,481  

Royal Caribbean Cruises Ltd.(a)

    39,577       3,341,486  

Starbucks Corp.

    203,594       21,595,216  

Vail Resorts Inc.

    6,958       2,398,492  
   

 

 

 
            99,916,654  
Household Durables — 0.3%            

Ethan Allen Interiors Inc.

    4,295       99,687  

Garmin Ltd.

    26,546       3,812,006  

La-Z-Boy Inc.

    7,798       259,206  

Meritage Homes Corp.(a)

    6,588       716,181  

Mohawk Industries Inc.(a)

    10,252       1,816,757  

Newell Brands Inc.

    66,760       1,528,136  

Whirlpool Corp.

    10,815       2,280,126  
   

 

 

 
      10,512,099  
Household Products — 2.1%            

Clorox Co. (The)

    21,562       3,514,822  

Colgate-Palmolive Co.

    138,697       10,567,324  

Kimberly-Clark Corp.

    58,420       7,564,806  

Procter & Gamble Co. (The)

    423,019       60,487,487  
   

 

 

 
      82,134,439  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    114,449       2,876,103  
Security   Shares     Value  
Independent Power and Renewable Electricity Producers (continued)  

Ormat Technologies Inc.

    7,706     $ 557,375  
   

 

 

 
      3,433,478  
Industrial Conglomerates — 0.7%            

3M Co.

    100,171       17,898,555  

Roper Technologies Inc.

    18,245       8,901,188  
   

 

 

 
      26,799,743  
Insurance — 2.2%            

Allstate Corp. (The)

    51,814       6,407,837  

Arthur J Gallagher & Co.

    35,697       5,985,316  

Chubb Ltd.

    77,664       15,173,992  

Hartford Financial Services Group Inc. (The)

    61,839       4,509,918  

Lincoln National Corp.

    31,313       2,259,233  

Loews Corp.

    38,742       2,172,264  

Marsh & McLennan Companies Inc.

    87,825       14,649,210  

Principal Financial Group Inc.

    46,960       3,150,547  

Progressive Corp. (The)

    100,953       9,578,421  

Prudential Financial Inc.

    68,236       7,509,372  

Travelers Companies Inc. (The)

    43,572       7,009,863  

Willis Towers Watson PLC

    22,309       5,405,025  
   

 

 

 
      83,810,998  
Interactive Media & Services — 7.9%            

Alphabet Inc., Class A(a)

    51,981       153,911,582  

Alphabet Inc., Class C, NVS(a)

    50,333       149,257,982  
   

 

 

 
          303,169,564  
IT Services — 6.4%            

Accenture PLC, Class A

    109,825       39,404,112  

Automatic Data Processing Inc.

    73,497       16,499,341  

Cognizant Technology Solutions Corp., Class A

    91,319       7,131,101  

International Business Machines Corp.

    154,390       19,314,189  

Mastercard Inc., Class A

    152,844       51,282,219  

Okta Inc.(a)(b)

    21,539       5,324,010  

PayPal Holdings Inc.(a)

    192,818       44,847,539  

Visa Inc., Class A

    292,315       61,903,547  

Western Union Co. (The)

    69,941       1,274,325  
   

 

 

 
      246,980,383  
Leisure Products — 0.1%            

Callaway Golf Co.(a)

    20,805       562,775  

Hasbro Inc.

    22,641       2,168,102  

Mattel Inc.(a)

    60,688       1,323,606  
   

 

 

 
      4,054,483  
Life Sciences Tools & Services — 1.2%            

Agilent Technologies Inc.

    52,561       8,277,832  

Bio-Techne Corp.

    6,720       3,518,928  

Illumina Inc.(a)

    25,206       10,462,002  

IQVIA Holdings Inc.(a)

    33,041       8,637,578  

Mettler-Toledo International Inc.(a)

    4,018       5,950,176  

Waters Corp.(a)

    10,702       3,933,520  

West Pharmaceutical Services Inc.

    12,776       5,492,147  
   

 

 

 
      46,272,183  
Machinery — 2.6%            

AGCO Corp.

    11,050       1,350,421  

Caterpillar Inc.

    94,643       19,308,118  

Cummins Inc.

    25,318       6,072,269  

Deere & Co.

    51,451       17,612,192  

Dover Corp.

    24,817       4,196,058  

Flowserve Corp.

    22,485       755,946  

Fortive Corp.

    55,589       4,208,643  

Graco Inc.

    29,008       2,180,822  
 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  15


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)            

IDEX Corp.

    13,110     $ 2,917,893  

Illinois Tool Works Inc.

    54,551       12,430,536  

Lincoln Electric Holdings Inc.

    9,828       1,399,507  

Meritor Inc.(a)

    12,492       304,055  

Middleby Corp. (The)(a)

    9,592       1,749,965  

PACCAR Inc.

    60,104       5,386,521  

Parker-Hannifin Corp.

    22,324       6,621,075  

Snap-on Inc.

    9,303       1,890,649  

Stanley Black & Decker Inc.

    27,959       5,025,071  

Tennant Co.

    3,170       251,888  

Timken Co. (The)

    12,035       853,883  

Westinghouse Air Brake Technologies Corp.

    30,959       2,808,910  

Xylem Inc./NY

    31,180       4,071,796  
   

 

 

 
          101,396,218  
Media — 0.2%            

Discovery Inc., Class A(a)(b)

    28,819       675,517  

Discovery Inc., Class C, NVS(a)

    54,294       1,224,873  

John Wiley & Sons Inc., Class A

    7,824       423,826  

New York Times Co. (The), Class A

    26,203       1,430,422  

Omnicom Group Inc.

    37,238       2,535,163  

Scholastic Corp.

    4,469       161,733  
   

 

 

 
      6,451,534  
Metals & Mining — 0.4%            

Compass Minerals International Inc.

    5,587       366,507  

Newmont Corp.

    138,715       7,490,610  

Nucor Corp.

    51,798       5,783,247  

Schnitzer Steel Industries Inc., Class A

    4,460       239,948  
   

 

 

 
      13,880,312  
Multi-Utilities — 0.7%            

Avista Corp.

    11,046       439,741  

CenterPoint Energy Inc.

    100,517       2,617,463  

CMS Energy Corp.

    50,105       3,023,837  

Consolidated Edison Inc.

    59,325       4,473,105  

MDU Resources Group Inc.

    34,850       1,070,940  

NiSource Inc.

    67,442       1,663,794  

Sempra Energy

    54,852       7,000,761  

WEC Energy Group Inc.

    54,637       4,920,608  
   

 

 

 
      25,210,249  
Multiline Retail — 0.6%            

Kohl’s Corp.

    27,519       1,335,497  

Nordstrom Inc.(a)

    18,874       542,250  

Target Corp.

    85,481       22,192,577  
   

 

 

 
      24,070,324  
Oil, Gas & Consumable Fuels — 1.9%            

APA Corp.

    65,174       1,708,211  

Cheniere Energy Inc.(a)

    41,652       4,306,817  

ConocoPhillips

    233,103       17,363,842  

Devon Energy Corp.

    110,544       4,430,604  

EQT Corp.(a)

    48,161       958,885  

Hess Corp.

    48,137       3,974,672  

Marathon Oil Corp.

    137,066       2,236,917  

Marathon Petroleum Corp.

    112,946       7,446,530  

Occidental Petroleum Corp.

    160,922       5,395,715  

ONEOK Inc.

    77,131       4,907,074  

Phillips 66

    75,832       5,670,717  

Pioneer Natural Resources Co.

    39,898       7,460,128  

Southwestern Energy Co.(a)

    118,756       579,529  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

Valero Energy Corp.

    70,791     $ 5,474,268  
   

 

 

 
      71,913,909  
Paper & Forest Products — 0.0%            

Domtar Corp.(a)

    8,101       442,234  
   

 

 

 
Personal Products — 0.3%            

Estee Lauder Companies Inc. (The), Class A

    40,031       12,983,254  
   

 

 

 
Pharmaceuticals — 2.1%            

Bristol-Myers Squibb Co.

    385,985       22,541,524  

Jazz Pharmaceuticals PLC(a)

    10,345       1,376,299  

Merck & Co. Inc.

    437,507       38,522,491  

Zoetis Inc.

    82,022       17,733,157  
   

 

 

 
      80,173,471  
Professional Services — 0.5%            

ASGN Inc.(a)

    9,244       1,106,137  

Exponent Inc.

    8,939       1,026,197  

Heidrick & Struggles International Inc.

    3,047       142,843  

ICF International Inc.

    3,251       326,693  

IHS Markit Ltd.

    65,435       8,553,663  

Kelly Services Inc., Class A, NVS

    5,831       105,133  

ManpowerGroup Inc.

    9,267       895,656  

Resources Connection Inc.

    5,996       104,390  

Robert Half International Inc.

    19,523       2,207,466  

TransUnion

    33,075       3,813,217  

TrueBlue Inc.(a)

    5,922       164,928  
   

 

 

 
      18,446,323  
Real Estate Management & Development — 0.2%  

CBRE Group Inc., Class A(a)

    58,131       6,050,275  

Jones Lang LaSalle Inc.(a)

    8,904       2,299,280  

Realogy Holdings Corp.(a)

    19,185       332,284  
   

 

 

 
      8,681,839  
Road & Rail — 1.7%            

AMERCO

    1,677       1,235,932  

ArcBest Corp.

    4,240       380,964  

Avis Budget Group Inc.(a)(b)

    9,162       1,587,866  

CSX Corp.

    392,280       14,188,768  

Kansas City Southern

    15,764       4,890,781  

Norfolk Southern Corp.

    43,173       12,651,848  

Ryder System Inc.

    9,225       783,664  

Union Pacific Corp.

    114,781       27,708,133  
   

 

 

 
      63,427,956  
Semiconductors & Semiconductor Equipment — 6.9%  

Advanced Micro Devices Inc.(a)

    209,947       25,241,928  

Analog Devices Inc.

    92,930       16,122,426  

Applied Materials Inc.

    158,563       21,667,634  

Intel Corp.

    697,727       34,188,623  

Lam Research Corp.

    24,627       13,879,038  

Microchip Technology Inc.

    94,720       7,017,805  

NVIDIA Corp.

    430,583       110,087,156  

ON Semiconductor Corp.(a)

    73,963       3,555,401  

Skyworks Solutions Inc.

    28,595       4,779,082  

Texas Instruments Inc.

    159,568       29,915,809  
   

 

 

 
          266,454,902  
Software — 17.2%            

Adobe Inc.(a)

    82,596       53,717,134  

ANSYS Inc.(a)

    15,065       5,718,373  

Autodesk Inc.(a)

    37,980       12,062,828  

Cadence Design Systems Inc.(a)

    47,969       8,303,913  
 

 

 

16  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)            

Citrix Systems Inc.

    21,455     $ 2,032,432  

Fortinet Inc.(a)

    24,014       8,076,869  

Intuit Inc.

    47,217       29,557,370  

Microsoft Corp.

    1,236,312       409,985,785  

NortonLifeLock Inc.

    100,295       2,552,508  

Oracle Corp.

    323,871       31,072,184  

Paycom Software Inc.(a)

    8,833       4,839,159  

salesforce.com Inc.(a)

    167,869       50,308,661  

ServiceNow Inc.(a)

    34,110       23,800,593  

Splunk Inc.(a)

    28,418       4,683,855  

Teradata Corp.(a)

    18,788       1,062,649  

VMware Inc., Class A(a)

    14,388       2,182,660  

Workday Inc., Class A(a)

    32,613       9,457,118  
   

 

 

 
          659,414,091  
Specialty Retail — 3.1%            

AutoNation Inc.(a)

    9,021       1,092,623  

Best Buy Co. Inc.

    39,012       4,768,827  

Buckle Inc. (The)

    4,751       197,736  

CarMax Inc.(a)(b)

    28,092       3,846,357  

Foot Locker Inc.

    15,684       747,656  

GameStop Corp., Class A(a)(b)

    11,286       2,071,094  

Gap Inc. (The)

    38,775       879,805  

Home Depot Inc. (The)

    183,727       68,298,675  

Lowe’s Companies Inc.

    122,151       28,561,347  

ODP Corp. (The)(a)

    9,183       397,624  

Signet Jewelers Ltd.

    8,965       799,499  

Tractor Supply Co.

    19,976       4,338,188  

Ulta Beauty Inc.(a)

    9,025       3,315,424  
   

 

 

 
      119,314,855  
Technology Hardware, Storage & Peripherals — 0.4%  

Dell Technologies Inc., Class C(a)

    48,070       5,287,219  

Hewlett Packard Enterprise Co.

    225,317       3,300,894  

HP Inc.

    216,552       6,568,022  

Xerox Holdings Corp.

    27,861       495,926  
   

 

 

 
      15,652,061  
Textiles, Apparel & Luxury Goods — 1.3%  

Capri Holdings Ltd.(a)

    26,373       1,404,098  

Columbia Sportswear Co.

    5,808       603,103  

Deckers Outdoor Corp.(a)

    4,831       1,909,743  

Hanesbrands Inc.

    59,633       1,016,146  

Nike Inc., Class B

    220,303       36,854,489  

PVH Corp.(a)

    12,172       1,330,765  

Under Armour Inc., Class A(a)

    32,569       715,215  

Under Armour Inc., Class C, NVS(a)

    33,273       628,194  
Security   Shares     Value  
Textiles, Apparel & Luxury Goods (continued)  

VF Corp.

    57,538     $ 4,193,369  

Wolverine World Wide Inc.

    14,604       484,415  
   

 

 

 
      49,139,537  
Thrifts & Mortgage Finance — 0.0%            

New York Community Bancorp. Inc.

    79,214       984,630  
   

 

 

 
Trading Companies & Distributors — 0.4%  

Air Lease Corp.

    18,577       744,009  

Applied Industrial Technologies Inc.

    6,659       649,119  

Fastenal Co.

    99,465       5,677,462  

H&E Equipment Services Inc.

    5,806       261,735  

United Rentals Inc.(a)

    12,484       4,732,809  

WW Grainger Inc.

    7,666       3,550,201  
   

 

 

 
      15,615,335  
Water Utilities — 0.2%            

American Water Works Co. Inc.

    31,413       5,471,517  

Essential Utilities Inc.

    40,533       1,907,888  
   

 

 

 
      7,379,405  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $2,395,370,736)

 

    3,826,399,276  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 0.7%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    17,984,847       17,993,839  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    7,290,000       7,290,000  
   

 

 

 
      25,283,839  
   

 

 

 

Total Short-Term Investments — 0.7%
(Cost: $25,283,070)

 

    25,283,839  
   

 

 

 

Total Investments in Securities — 100.4%
(Cost: $2,420,653,806)

 

    3,851,683,115  

Other Assets, Less Liabilities — (0.4)%

 

    (15,011,440
   

 

 

 

Net Assets — 100.0%

    $  3,836,671,675  
   

 

 

 

 

(a)   

Non-income producing security.

(b)   

All or a portion of this security is on loan.

(c)   

Affiliate of the Fund.

(d)   

Annualized 7-day yield as of period end.

(e)   

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  17


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

    

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 13,210,182     $ 4,781,651 (a)    $     $ 1,688     $ 318     $ 17,993,839       17,984,847     $ 13,145 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    8,780,000             (1,490,000 )(a)                  7,290,000       7,290,000       149        

BlackRock Inc.

    20,060,560       2,791,636       (1,165,461     547,695       2,621,967       24,856,397       26,346       204,146        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 549,383     $ 2,622,285     $ 50,140,236       $ 217,440     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

S&P 500 E-Mini Index

     41        12/17/21      $ 9,424      $ 291,844  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 291,844  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 522,753  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 261,954  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 7,309,182  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

18  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI KLD 400 Social ETF

    

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 3,826,399,276      $                 —      $                 —      $ 3,826,399,276  

Money Market Funds

     25,283,839                      25,283,839  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 3,851,683,115      $      $      $ 3,851,683,115  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 291,844      $      $      $ 291,844  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E   O F   I N V E S T M E N T S

  19


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® MSCI USA ESG Select ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Air Freight & Logistics — 1.6%            

CH Robinson Worldwide Inc.

    161,940     $ 15,706,560  

Expeditors International of Washington Inc.

    417,149       51,417,786  
   

 

 

 
      67,124,346  
Auto Components — 0.5%            

Aptiv PLC(a)

    127,417       22,029,125  
   

 

 

 
Automobiles — 2.2%            

Tesla Inc.(a)

    80,420       89,587,880  
   

 

 

 
Banks — 1.8%            

Huntington Bancshares Inc./OH

    1,020,181       16,057,649  

KeyCorp

    268,700       6,252,649  

PNC Financial Services Group Inc. (The)

    54,587       11,519,495  

Regions Financial Corp.

    744,299       17,625,000  

SVB Financial Group(a)

    23,615       16,941,401  

Truist Financial Corp.

    115,080       7,304,127  
   

 

 

 
      75,700,321  
Beverages — 2.4%            

Coca-Cola Co. (The)

    677,945       38,215,760  

Keurig Dr Pepper Inc.

    199,982       7,217,350  

PepsiCo Inc.

    316,099       51,081,598  
   

 

 

 
      96,514,708  
Biotechnology — 1.7%            

Amgen Inc.

    112,576       23,299,855  

Biogen Inc.(a)

    29,873       7,966,531  

Gilead Sciences Inc.

    330,307       21,430,318  

Vertex Pharmaceuticals Inc.(a)

    92,145       17,040,375  
   

 

 

 
      69,737,079  
Building Products — 2.6%            

Carrier Global Corp.

    92,476       4,830,021  

Fortune Brands Home & Security Inc.

    40,156       4,071,818  

Johnson Controls International PLC

    768,670       56,397,318  

Owens Corning

    81,312       7,595,354  

Trane Technologies PLC

    177,174       32,056,092  
   

 

 

 
          104,950,603  
Capital Markets — 5.4%            

Bank of New York Mellon Corp. (The)

    416,508       24,657,274  

BlackRock Inc.(b)

    72,351       68,260,274  

CME Group Inc.

    20,127       4,439,010  

FactSet Research Systems Inc.

    16,077       7,136,420  

Invesco Ltd.

    318,520       8,093,593  

Moody’s Corp.

    20,027       8,093,912  

Morgan Stanley

    359,199       36,918,473  

Northern Trust Corp.

    222,971       27,434,352  

S&P Global Inc.

    19,644       9,314,399  

State Street Corp.

    178,345       17,575,900  

T Rowe Price Group Inc.

    52,763       11,443,239  
   

 

 

 
      223,366,846  
Chemicals — 2.1%            

DuPont de Nemours Inc.

    56,350       3,921,960  

Ecolab Inc.

    166,461       36,990,963  

International Flavors & Fragrances Inc.

    83,058       12,246,902  

Linde PLC

    62,764       20,034,269  

Mosaic Co. (The)

    213,287       8,866,341  

PPG Industries Inc.

    25,206       4,047,327  
   

 

 

 
      86,107,762  
Security   Shares     Value  
Communications Equipment — 1.2%            

Cisco Systems Inc.

    788,678     $ 44,142,308  

Motorola Solutions Inc.

    18,883       4,694,125  
   

 

 

 
      48,836,433  
Consumer Finance — 1.6%            

Ally Financial Inc.

    285,572       13,633,207  

American Express Co.

    297,236       51,653,672  
   

 

 

 
      65,286,879  
Containers & Packaging — 0.4%            

Amcor PLC

    935,977       11,297,242  

Ball Corp.

    42,247       3,864,756  
   

 

 

 
      15,161,998  
Distributors — 0.2%            

LKQ Corp.(a)

    164,594       9,065,838  
   

 

 

 
Diversified Telecommunication Services — 0.6%  

AT&T Inc.

    297,646       7,518,538  

Verizon Communications Inc.

    301,520       15,977,545  
   

 

 

 
      23,496,083  
Electric Utilities — 1.3%            

Eversource Energy

    312,703       26,548,485  

Southern Co. (The)

    58,878       3,669,277  

Xcel Energy Inc.

    376,163       24,296,368  
   

 

 

 
      54,514,130  
Electronic Equipment, Instruments & Components — 1.2%  

Cognex Corp.

    49,102       4,300,844  

Keysight Technologies Inc.(a)

    73,962       13,314,639  

TE Connectivity Ltd.

    26,566       3,878,636  

Teledyne Technologies Inc.(a)

    8,857       3,978,742  

Trimble Inc.(a)

    175,009       15,290,536  

Zebra Technologies Corp., Class A(a)

    12,283       6,558,508  
   

 

 

 
      47,321,905  
Energy Equipment & Services — 0.6%            

Baker Hughes Co.

    473,568       11,877,085  

Schlumberger NV

    379,010       12,226,863  
   

 

 

 
      24,103,948  
Entertainment — 1.5%            

Activision Blizzard Inc.

    46,989       3,674,070  

Electronic Arts Inc.

    35,050       4,915,763  

Netflix Inc.(a)

    21,639       14,937,618  

Roku Inc.(a)

    11,661       3,555,439  

Walt Disney Co. (The)(a)

    206,621       34,933,412  
   

 

 

 
      62,016,302  
Equity Real Estate Investment Trusts (REITs) — 2.8%  

American Tower Corp.

    66,821       18,841,517  

Crown Castle International Corp.

    21,370       3,853,011  

Equinix Inc.

    29,961       25,079,454  

Healthpeak Properties Inc.

    579,048       20,561,994  

Iron Mountain Inc.

    85,385       3,896,971  

Prologis Inc.

    229,988       33,339,061  

Ventas Inc.

    111,037       5,926,045  

Welltower Inc.

    55,062       4,426,985  
   

 

 

 
          115,925,038  
Food & Staples Retailing — 0.3%            

Kroger Co. (The)

    168,959       6,761,739  

Walgreens Boots Alliance Inc.

    82,225       3,866,220  
   

 

 

 
      10,627,959  
Food Products — 2.0%            

Bunge Ltd.

    197,105       18,259,807  
 

 

 

20  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI USA ESG Select ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)            

Campbell Soup Co.

    235,297     $ 9,400,115  

General Mills Inc.

    315,211       19,480,040  

Kellogg Co.

    548,522       33,624,399  
   

 

 

 
      80,764,361  
Health Care Equipment & Supplies — 2.5%            

Align Technology Inc.(a)

    6,865       4,286,300  

Dexcom Inc.(a)

    19,947       12,431,170  

Edwards Lifesciences Corp.(a)

    219,754       26,330,924  

Hologic Inc.(a)

    103,684       7,601,074  

IDEXX Laboratories Inc.(a)

    40,041       26,672,912  

Insulet Corp.(a)

    42,383       13,139,578  

ResMed Inc.

    32,855       8,637,908  

STERIS PLC

    18,967       4,433,346  
   

 

 

 
          103,533,212  
Health Care Providers & Services — 1.3%            

DaVita Inc.(a)

    56,549       5,838,119  

HCA Healthcare Inc.

    62,671       15,696,578  

Humana Inc.

    19,894       9,214,105  

Laboratory Corp. of America Holdings(a)

    15,694       4,504,492  

Quest Diagnostics Inc.

    119,892       17,597,748  
   

 

 

 
      52,851,042  
Health Care Technology — 0.4%            

Cerner Corp.

    84,750       6,296,078  

Teladoc Health Inc.(a)(c)

    58,455       8,744,283  
   

 

 

 
      15,040,361  
Hotels, Restaurants & Leisure — 0.9%            

Booking Holdings Inc.(a)

    2,188       5,296,667  

Darden Restaurants Inc.

    33,264       4,794,673  

Hilton Worldwide Holdings Inc.(a)

    71,187       10,247,369  

McDonald’s Corp.

    24,027       5,899,830  

Vail Resorts Inc.

    33,002       11,376,119  
   

 

 

 
      37,614,658  
Household Durables — 0.1%            

Newell Brands Inc.

    160,995       3,685,176  
   

 

 

 
Household Products — 1.9%            

Clorox Co. (The)

    72,054       11,745,523  

Colgate-Palmolive Co.

    169,454       12,910,700  

Kimberly-Clark Corp.

    113,320       14,673,807  

Procter & Gamble Co. (The)

    272,957       39,030,121  
   

 

 

 
      78,360,151  
Independent Power and Renewable Electricity Producers — 0.2%  

AES Corp. (The)

    369,294       9,280,358  
   

 

 

 
Industrial Conglomerates — 1.4%            

3M Co.

    323,105       57,732,401  
   

 

 

 
Insurance — 2.4%            

American International Group Inc.

    118,310       6,990,938  

Chubb Ltd.

    21,099       4,122,323  

Marsh & McLennan Companies Inc.

    340,325       56,766,210  

Prudential Financial Inc.

    157,687       17,353,454  

Travelers Companies Inc. (The)

    83,477       13,429,780  
   

 

 

 
      98,662,705  
Interactive Media & Services — 5.3%            

Alphabet Inc., Class A(a)

    40,578       120,148,212  

Alphabet Inc., Class C, NVS(a)

    18,105       53,688,748  

Meta Platforms Inc, Class A(a)

    122,599       39,669,358  
Security   Shares     Value  
Interactive Media & Services (continued)            

Snap Inc., Class A, NVS(a)

    67,491     $ 3,548,677  
   

 

 

 
      217,054,995  
Internet & Direct Marketing Retail — 0.4%            

eBay Inc.

    58,966       4,523,872  

Etsy Inc.(a)

    22,038       5,524,706  

MercadoLibre Inc.(a)

    5,723       8,475,877  
   

 

 

 
      18,524,455  
IT Services — 5.6%            

Accenture PLC, Class A

    128,912       46,252,336  

Automatic Data Processing Inc.

    190,465       42,757,488  

Fiserv Inc.(a)

    33,637       3,312,908  

International Business Machines Corp.

    215,836       27,001,084  

Mastercard Inc., Class A

    88,392       29,657,284  

Okta Inc.(a)

    27,742       6,857,267  

PayPal Holdings Inc.(a)

    116,742       27,153,022  

Square Inc., Class A(a)(c)

    37,122       9,447,549  

Twilio Inc., Class A(a)

    16,838       4,905,920  

Visa Inc., Class A(c)

    153,195       32,442,105  
   

 

 

 
          229,786,963  
Leisure Products — 0.3%            

Hasbro Inc.

    120,906       11,577,959  
   

 

 

 
Life Sciences Tools & Services — 3.8%            

Agilent Technologies Inc.

    280,372       44,155,786  

Illumina Inc.(a)

    21,393       8,879,378  

Mettler-Toledo International Inc.(a)

    14,810       21,931,833  

Thermo Fisher Scientific Inc.

    7,086       4,485,934  

Waters Corp.(a)

    81,772       30,055,299  

West Pharmaceutical Services Inc.

    107,391       46,165,243  
   

 

 

 
      155,673,473  
Machinery — 2.7%            

Caterpillar Inc.

    103,150       21,043,631  

Cummins Inc.

    124,020       29,744,957  

Deere & Co.

    23,667       8,101,451  

Xylem Inc./NY

    402,257       52,530,742  
   

 

 

 
      111,420,781  
Media — 0.7%            

Cable One Inc.

    6,883       11,778,259  

Discovery Inc., Class C, NVS(a)

    147,647       3,330,916  

Interpublic Group of Companies Inc. (The)

    218,439       7,988,314  

Omnicom Group Inc.

    54,950       3,740,996  
   

 

 

 
      26,838,485  
Metals & Mining — 0.1%            

Newmont Corp.

    89,293       4,821,822  
   

 

 

 
Multi-Utilities — 0.9%            

CMS Energy Corp.

    270,988       16,354,126  

Consolidated Edison Inc.

    74,935       5,650,099  

Public Service Enterprise Group Inc.

    145,469       9,280,922  

Sempra Energy

    41,578       5,306,600  
   

 

 

 
      36,591,747  
Multiline Retail — 0.5%            

Target Corp.

    82,109       21,317,139  
   

 

 

 
Oil, Gas & Consumable Fuels — 1.7%            

Cheniere Energy Inc.(a)

    47,059       4,865,901  

ConocoPhillips

    424,226       31,600,595  

Hess Corp.

    238,016       19,652,981  

Kinder Morgan Inc.

    245,998       4,120,466  
 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  21


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI USA ESG Select ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

ONEOK Inc.

    174,047     $ 11,072,870  
   

 

 

 
      71,312,813  
Pharmaceuticals — 1.3%            

Eli Lilly & Co.

    34,170       8,705,149  

Merck & Co. Inc.

    165,882       14,605,910  

Zoetis Inc.

    144,670       31,277,654  
   

 

 

 
      54,588,713  
Professional Services — 0.6%            

IHS Markit Ltd.

    130,447       17,052,032  

Robert Half International Inc.

    56,731       6,414,574  
   

 

 

 
      23,466,606  
Real Estate Management & Development — 0.6%  

CBRE Group Inc., Class A(a)

    240,533       25,034,675  
   

 

 

 
Road & Rail — 0.8%            

CSX Corp.

    162,803       5,888,585  

Kansas City Southern

    56,812       17,625,923  

Norfolk Southern Corp.

    30,742       9,008,943  
   

 

 

 
      32,523,451  
Semiconductors & Semiconductor Equipment — 6.2%  

Applied Materials Inc.

    302,273       41,305,605  

Intel Corp.

    534,183       26,174,967  

Lam Research Corp.

    28,276       15,935,505  

Marvell Technology Inc.

    84,987       5,821,610  

Micron Technology Inc.

    78,930       5,454,063  

NVIDIA Corp.

    381,746       97,601,000  

ON Semiconductor Corp.(a)

    113,077       5,435,611  

Texas Instruments Inc.

    305,723       57,316,948  
   

 

 

 
          255,045,309  
Software — 11.7%            

Adobe Inc.(a)

    84,528       54,973,630  

ANSYS Inc.(a)

    27,069       10,274,851  

Autodesk Inc.(a)

    78,711       24,999,401  

Cadence Design Systems Inc.(a)

    123,936       21,454,561  

HubSpot Inc.(a)

    7,881       6,385,423  

Intuit Inc.

    67,171       42,048,374  

Microsoft Corp.

    657,059       217,893,906  

salesforce.com Inc.(a)

    175,842       52,698,089  

ServiceNow Inc.(a)

    37,177       25,940,623  

Splunk Inc.(a)

    33,321       5,491,967  

VMware Inc., Class A(a)

    34,697       5,263,535  

Workday Inc., Class A(a)

    38,399       11,134,942  
   

 

 

 
      478,559,302  
Specialty Retail — 3.7%            

Best Buy Co. Inc.

    318,250       38,902,880  
Security   Shares     Value  
Specialty Retail (continued)            

Home Depot Inc. (The)

    215,484     $ 80,104,022  

Lowe’s Companies Inc.

    105,424       24,650,240  

TJX Companies Inc. (The)

    68,317       4,474,080  

Tractor Supply Co.

    24,322       5,282,009  
   

 

 

 
      153,413,231  
Technology Hardware, Storage & Peripherals — 5.7%  

Apple Inc.

    1,329,183       199,111,614  

Hewlett Packard Enterprise Co.

    1,482,436       21,717,687  

HP Inc.

    373,221       11,319,793  
   

 

 

 
      232,149,094  
Textiles, Apparel & Luxury Goods — 1.0%            

Lululemon Athletica Inc.(a)(c)

    16,690       7,777,707  

Nike Inc., Class B

    112,702       18,853,917  

VF Corp.

    180,895       13,183,628  
   

 

 

 
      39,815,252  
Trading Companies & Distributors — 1.0%  

WW Grainger Inc.

    86,742       40,171,088  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $3,150,004,742)

 

    4,088,686,961  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 0.8%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(b)(d)(e)

    25,490,439       25,503,185  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(d)

    9,260,000       9,260,000  
   

 

 

 
      34,763,185  
   

 

 

 

Total Short-Term Investments — 0.8%
(Cost: $34,760,921)

 

    34,763,185  
   

 

 

 

Total Investments in Securities — 100.5%
(Cost: $3,184,765,663)

 

    4,123,450,146  

Other Assets, Less Liabilities — (0.5)%

 

    (22,379,297
   

 

 

 

Net Assets — 100.0%

    $  4,101,070,849  
   

 

 

 

 

(a)   

Non-income producing security.

(b)   

Affiliate of the Fund.

(c)   

All or a portion of this security is on loan.

(d)   

Annualized 7-day yield as of period end.

(e)   

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

22  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

   iShares® MSCI USA ESG Select ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL
Agency Shares

  $ 28,187,959     $     $ (2,685,835 )(a)    $ (271   $ 1,332     $ 25,503,185       25,490,439     $ 42,298 (b)    $  

BlackRock Cash Funds: Treasury, SL
Agency Shares

    6,570,000       2,690,000 (a)                        9,260,000       9,260,000       201        

BlackRock Inc.

    49,499,648       16,403,894       (5,833,559     305,231       7,885,060       68,260,274       72,351       538,911        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 304,960     $ 7,886,392     $ 103,023,459       $ 581,410     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description    Number of
Contracts
       Expiration
Date
       Notional
Amount
(000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

                 

S&P 500 E-Mini Index

     52          12/17/21        $ 11,952        $ 333,272  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

   
     

Equity

Contracts

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 333,272  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

     

Equity

Contracts

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 938,990  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (60,172
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 9,104,482  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

C H E D U L E    O F   I N V E S T M E N T S

  23


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® MSCI USA ESG Select ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 4,088,686,961        $        $        $ 4,088,686,961  

Money Market Funds

     34,763,185                            34,763,185  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 4,123,450,146        $        $        $ 4,123,450,146  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 333,272        $        $        $ 333,272  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

24  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® U.S. Basic Materials ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 0.8%  

Hexcel Corp.(a)

    119,866     $ 6,801,197  
   

 

 

 
Chemicals — 57.6%            

Air Products & Chemicals Inc.

    281,178       84,299,976  

Albemarle Corp.

    141,239       35,376,132  

Ashland Global Holdings Inc.

    78,817       7,567,220  

Celanese Corp.

    159,516       25,763,429  

CF Industries Holdings Inc.

    306,858       17,429,534  

Chemours Co. (The)

    236,138       6,616,587  

Dow Inc.

    960,143       53,739,204  

Eastman Chemical Co.

    194,870       20,272,326  

Ecolab Inc.

    318,241       70,719,515  

Element Solutions Inc.

    331,952       7,538,630  

FMC Corp.

    184,887       16,826,566  

Huntsman Corp.

    302,462       9,854,212  

International Flavors & Fragrances Inc.

    322,558       47,561,177  

LyondellBasell Industries NV, Class A

    335,396       31,131,457  

Mosaic Co. (The)

    495,709       20,606,623  

NewMarket Corp.

    9,607       3,266,476  

Olin Corp.

    206,266       11,753,037  

Scotts Miracle-Gro Co. (The)

    58,908       8,745,482  

Valvoline Inc.

    259,834       8,823,962  

Westlake Chemical Corp.

    47,546       4,628,128  
   

 

 

 
      492,519,673  
Containers & Packaging — 6.0%            

Avery Dennison Corp.

    117,735       25,633,264  

International Paper Co.

    510,982       25,380,476  
   

 

 

 
      51,013,740  
Machinery — 0.8%            

Timken Co. (The)

    92,114       6,535,488  
   

 

 

 
Metals & Mining — 29.2%            

Alcoa Corp.

    267,962       12,312,854  

Cleveland-Cliffs Inc.(a)

    653,703       15,760,779  

Freeport-McMoRan Inc.

    1,871,335       70,586,756  

Newmont Corp.

    1,028,937       55,562,598  

Nucor Corp.

    337,721       37,706,550  

Reliance Steel & Aluminum Co.

    90,900       13,285,944  
Security   Shares      Value  
Metals & Mining (continued)             

Royal Gold Inc.

    94,010      $ 9,308,870  

Southern Copper Corp.

    120,800        7,246,792  

Steel Dynamics Inc.

    278,214        18,384,381  

United States Steel Corp.

    383,623        10,123,811  
    

 

 

 
       250,279,335  
Paper & Forest Products — 0.1%             

Sylvamo Corp.(a)

    46,453        1,308,117  
    

 

 

 
Trading Companies & Distributors — 5.2%  

Fastenal Co.

    673,134        38,422,489  

Univar Solutions Inc.(a)(b)

    240,015        6,139,584  
    

 

 

 
       44,562,073  
    

 

 

 

Total Common Stocks — 99.7%
(Cost: $845,783,327)

    

 

853,019,623

 

    

 

 

 
Short-Term Investments             
Money Market Funds — 0.2%             

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    199,781        199,881  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    1,320,000        1,320,000  
    

 

 

 
       1,519,881  
    

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $1,519,881)

       1,519,881  
    

 

 

 

Total Investments in Securities — 99.9%
(Cost: $847,303,208)

       854,539,504  

Other Assets, Less Liabilities — 0.1%

       762,196  
    

 

 

 

Net Assets — 100.0%

     $ 855,301,700  
    

 

 

 

 

(a)  

Non-income producing security.

(b)  

All or a portion of this security is on loan.

(c)  

Affiliate of the Fund.

(d)  

Annualized 7-day yield as of period end.

(e)  

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  25


Schedule of Investments (unaudited) (continued)

October 31, 2021

   iShares® U.S. Basic Materials ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income
   

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency
Shares

  $     $ 199,881 (a)    $     $     $     $ 199,881       199,781     $ 611 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency
Shares

    1,347,000             (27,000 )(a)                  1,320,000       1,320,000       40        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $     $     $ 1,519,881       $ 651     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a)

Represents net amount purchased (sold).

  (b)

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description

  

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

Long Contracts

           

E-Mini Materials Select Sector Index

     23        12/17/21      $ 2,064      $ 92,022  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

   
      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 92,022  
  

 

 

 

 

  (a)

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

   
      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (145,697
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 31,821  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 1,841,290  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

26  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

   iShares® U.S. Basic Materials ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1      Level 2      Level 3      Total  

Investments

           

Assets

           

Common Stocks

   $ 853,019,623      $      $      $ 853,019,623  

Money Market Funds

     1,519,881                      1,519,881  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 854,539,504      $      $      $ 854,539,504  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 92,022      $      $      $ 92,022  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

 

 

C H E D U L E    O F   I N V E S T M E N T S

  27


Schedule of Investments (unaudited) 

October 31, 2021

  

iShares® U.S. Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Airlines — 1.5%            

Alaska Air Group Inc.(a)

    28,161     $ 1,486,901  

American Airlines Group Inc.(a)

    146,895       2,820,384  

Copa Holdings SA, Class A, NVS(a)

    7,209       533,178  

Delta Air Lines Inc.(a)

    147,078       5,755,162  

JetBlue Airways Corp.(a)

    72,420       1,016,053  

Southwest Airlines Co.(a)

    135,957       6,428,047  

United Airlines Holdings Inc.(a)

    74,390       3,432,354  
   

 

 

 
      21,472,079  
Auto Components — 1.3%            

Aptiv PLC(a)

    62,110       10,738,198  

BorgWarner Inc.

    55,131       2,484,754  

Gentex Corp.

    55,093       1,949,741  

Lear Corp.

    13,821       2,375,139  

QuantumScape Corp.(a)

    47,067       1,362,119  
   

 

 

 
      18,909,951  
Automobiles — 12.2%            

Ford Motor Co.(a)

    901,186       15,392,257  

General Motors Co.(a)

    316,654       17,235,477  

Harley-Davidson Inc.

    35,428       1,292,768  

Tesla Inc.(a)

    121,855       135,746,470  

Thor Industries Inc.

    12,180       1,241,873  
   

 

 

 
      170,908,845  
Commercial Services & Supplies — 0.8%            

Copart Inc.(a)

    48,109       7,470,847  

Driven Brands Holdings Inc.(a)

    12,298       399,316  

IAA Inc.(a)

    31,099       1,855,055  

Rollins Inc.

    52,202       1,839,076  
   

 

 

 
      11,564,294  
Distributors — 0.9%            

Genuine Parts Co.

    32,511       4,262,517  

LKQ Corp.(a)

    62,590       3,447,457  

Pool Corp.

    8,958       4,614,804  
   

 

 

 
      12,324,778  
Diversified Consumer Services — 0.8%            

Bright Horizons Family Solutions Inc.(a)(b)

    13,989       2,322,174  

Chegg Inc.(a)

    32,920       1,956,765  

frontdoor Inc.(a)

    19,621       731,471  

Grand Canyon Education Inc.(a)

    10,229       815,251  

H&R Block Inc.

    40,782       940,841  

Mister Car Wash Inc.(a)

    9,397       172,341  

Service Corp. International

    37,651       2,578,717  

Terminix Global Holdings Inc.(a)

    28,548       1,155,623  
   

 

 

 
      10,673,183  
Entertainment — 11.4%            

Activision Blizzard Inc.

    177,854       13,906,404  

Electronic Arts Inc.

    65,281       9,155,660  

Liberty Media Corp.-Liberty Formula One, Class A(a)(b)

    5,717       298,142  

Liberty Media Corp.-Liberty Formula One, Class C, NVS(a)

    45,613       2,545,205  

Live Nation Entertainment Inc.(a)

    30,890       3,124,524  

Madison Square Garden Sports Corp.(a)

    4,317       818,115  

Netflix Inc.(a)

    83,414       57,581,518  

Playtika Holding Corp.(a)

    23,766       672,103  

Spotify Technology SA(a)

    31,451       9,101,919  

Take-Two Interactive Software Inc.(a)

    26,578       4,810,618  

Walt Disney Co. (The)(a)

    334,805       56,605,481  

World Wrestling Entertainment Inc., Class A

    10,180       621,896  
Security   Shares     Value  
Entertainment (continued)            

Zynga Inc., Class A(a)

    230,445     $ 1,700,684  
   

 

 

 
      160,942,269  
Food & Staples Retailing — 7.1%            

Costco Wholesale Corp.

    101,843       50,059,908  

Walmart Inc.

    330,462       49,377,632  
   

 

 

 
      99,437,540  
Health Care Equipment & Supplies — 0.0%            

Figs Inc., Class A(a)(b)

    8,659       291,029  
   

 

 

 
Hotels, Restaurants & Leisure — 14.4%            

Aramark

    52,811       1,926,545  

Booking Holdings Inc.(a)

    9,442       22,857,005  

Boyd Gaming Corp.(a)

    18,991       1,211,246  

Caesars Entertainment Inc.(a)

    46,923       5,136,192  

Carnival Corp.(a)

    196,019       4,343,781  

Chipotle Mexican Grill Inc.(a)

    6,459       11,490,755  

Choice Hotels International Inc.

    7,967       1,120,320  

Churchill Downs Inc.

    8,492       1,953,160  

Darden Restaurants Inc.

    29,926       4,313,534  

Domino’s Pizza Inc.

    8,449       4,131,307  

DraftKings Inc., Class A(a)(b)

    69,877       3,255,569  

Expedia Group Inc.(a)

    33,369       5,486,197  

Hilton Worldwide Holdings Inc.(a)

    63,058       9,077,199  

Hyatt Hotels Corp., Class A(a)

    10,832       922,886  

Las Vegas Sands Corp.(a)

    76,111       2,953,868  

Marriott International Inc./MD, Class A(a)

    62,613       10,019,332  

Marriott Vacations Worldwide Corp.

    9,619       1,512,299  

McDonald’s Corp.

    172,043       42,245,159  

MGM Resorts International

    92,248       4,350,416  

Norwegian Cruise Line Holdings Ltd.(a)(b)

    85,039       2,187,203  

Penn National Gaming Inc.(a)

    37,883       2,712,423  

Planet Fitness Inc., Class A(a)

    19,233       1,529,985  

Royal Caribbean Cruises Ltd.(a)

    50,433       4,258,058  

Six Flags Entertainment Corp.(a)

    17,646       725,780  

Starbucks Corp.

    271,442       28,791,853  

Travel + Leisure Co.

    19,387       1,053,490  

Vail Resorts Inc.

    9,184       3,165,817  

Wendy’s Co. (The)

    40,769       909,149  

Wyndham Hotels & Resorts Inc.

    21,149       1,786,456  

Wynn Resorts Ltd.(a)

    24,332       2,185,014  

Yum China Holdings Inc.

    96,855       5,528,483  

Yum! Brands Inc.

    68,659       8,578,255  
   

 

 

 
      201,718,736  
Household Durables — 2.5%            

DR Horton Inc.

    76,547       6,833,351  

Garmin Ltd.

    34,837       5,002,593  

Leggett & Platt Inc.

    30,714       1,438,951  

Lennar Corp., Class A

    62,464       6,242,028  

Lennar Corp., Class B

    3,581       293,928  

Newell Brands Inc.

    87,654       2,006,400  

NVR Inc.(a)

    744       3,641,731  

PulteGroup Inc.

    59,486       2,860,087  

Tempur Sealy International Inc.

    41,935       1,864,849  

Toll Brothers Inc.

    25,935       1,560,509  

Whirlpool Corp.

    14,100       2,972,703  
   

 

 

 
      34,717,130  
Interactive Media & Services — 0.0%            

TripAdvisor Inc.(a)

    22,514       742,287  
   

 

 

 
 

 

 

28  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Internet & Direct Marketing Retail — 15.9%            

Amazon.com Inc.(a)

    59,255     $ 199,833,340  

eBay Inc.

    149,645       11,480,764  

Etsy Inc.(a)(b)

    29,143       7,305,859  

Qurate Retail Inc., Series A

    85,040       887,817  

Wayfair Inc., Class A(a)(b)

    17,338       4,318,896  
   

 

 

 
      223,826,676  
IT Services — 0.1%            

Sabre Corp.(a)

    72,609       753,681  
   

 

 

 
Leisure Products — 1.0%            

Hasbro Inc.

    29,429       2,818,121  

Mattel Inc.(a)

    80,463       1,754,898  

Peloton Interactive Inc., Class A(a)

    60,759       5,555,803  

Polaris Inc.

    13,176       1,514,581  

YETI Holdings Inc.(a)

    19,725       1,939,559  
   

 

 

 
      13,582,962  
Media — 2.0%            

Discovery Inc., Class A(a)(b)

    37,790       885,798  

Discovery Inc., Class C, NVS(a)

    72,759       1,641,443  

Fox Corp., Class A, NVS

    73,371       2,915,764  

Fox Corp., Class B

    35,155       1,299,329  

Interpublic Group of Companies Inc. (The)

    90,188       3,298,175  

Liberty Media Corp.-Liberty SiriusXM, Class A(a)

    18,283       910,128  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    37,395       1,844,321  

New York Times Co. (The), Class A

    38,010       2,074,966  

News Corp., Class A, NVS

    89,782       2,056,008  

News Corp., Class B

    27,715       625,250  

Nexstar Media Group Inc., Class A

    9,302       1,394,649  

Omnicom Group Inc.

    49,030       3,337,962  

Sirius XM Holdings Inc.(b)

    206,220       1,255,880  

ViacomCBS Inc., Class A

    1,870       72,799  

ViacomCBS Inc., Class B, NVS

    134,174       4,859,782  
   

 

 

 
      28,472,254  
Multiline Retail — 3.6%            

Dollar General Corp.

    54,397       12,050,023  

Dollar Tree Inc.(a)

    53,317       5,745,440  

Kohl’s Corp.

    36,108       1,752,321  

Nordstrom Inc.(a)

    25,285       726,438  

Ollie’s Bargain Outlet Holdings Inc.(a)(b)

    14,925       1,009,826  

Target Corp.

    114,522       29,732,202  
   

 

 

 
      51,016,250  
Personal Products — 1.3%            

Coty Inc., Class A(a)

    77,875       660,380  

Estee Lauder Companies Inc. (The), Class A

    52,714       17,096,732  
   

 

 

 
      17,757,112  
Professional Services — 0.1%            

Nielsen Holdings PLC

    82,510       1,670,828  
   

 

 

 
Road & Rail — 1.5%            

AMERCO

    2,048       1,509,356  

Lyft Inc., Class A(a)

    65,714       3,014,301  

Uber Technologies Inc.(a)

    371,649       16,285,659  
   

 

 

 
      20,809,316  
Software — 0.5%            

Trade Desk Inc. (The), Class A(a)(b)

    98,597       7,385,901  
   

 

 

 
Specialty Retail — 14.9%            

Advance Auto Parts Inc.

    15,046       3,393,174  

AutoNation Inc.(a)(b)

    10,445       1,265,098  
Security   Shares     Value  
Specialty Retail (continued)            

AutoZone Inc.(a)

    4,953     $ 8,840,312  

Bath & Body Works Inc.

    56,128       3,877,884  

Best Buy Co. Inc.

    57,541       7,033,812  

Burlington Stores Inc.(a)

    15,268       4,218,396  

CarMax Inc.(a)

    37,528       5,138,334  

Carvana Co.(a)

    17,744       5,379,626  

Dick’s Sporting Goods Inc.

    14,494       1,800,300  

Five Below Inc.(a)

    12,677       2,501,172  

Floor & Decor Holdings Inc., Class A(a)

    23,414       3,182,431  

Foot Locker Inc.

    20,538       979,046  

GameStop Corp., Class A(a)

    14,774       2,711,177  

Gap Inc. (The)

    46,056       1,045,011  

Home Depot Inc. (The)

    168,548       62,656,033  

Leslie’s Inc.(a)

    30,415       628,982  

Lithia Motors Inc.

    6,773       2,162,077  

Lowe’s Companies Inc.

    162,952       38,101,437  

O’Reilly Automotive Inc.(a)

    15,691       9,764,823  

Penske Automotive Group Inc.

    7,276       771,620  

Petco Health & Wellness Co. Inc.(a)(b)

    12,655       312,958  

RH(a)

    3,947       2,603,560  

Ross Stores Inc.

    80,620       9,126,184  

TJX Companies Inc. (The)

    277,778       18,191,681  

Tractor Supply Co.

    26,459       5,746,101  

Ulta Beauty Inc.(a)

    12,240       4,496,486  

Victoria’s Secret & Co.(a)

    17,720       894,328  

Williams-Sonoma Inc.

    17,229       3,199,942  
   

 

 

 
      210,021,985  
Textiles, Apparel & Luxury Goods — 5.8%            

Capri Holdings Ltd.(a)

    34,048       1,812,715  

Carter’s Inc.

    9,853       970,718  

Columbia Sportswear Co.

    9,136       948,682  

Deckers Outdoor Corp.(a)

    6,301       2,490,848  

Hanesbrands Inc.

    80,215       1,366,864  

Lululemon Athletica Inc.(a)

    26,250       12,232,762  

Nike Inc., Class B

    285,408       47,745,904  

PVH Corp.(a)

    16,370       1,789,732  

Ralph Lauren Corp.

    10,940       1,391,240  

Skechers U.S.A. Inc., Class A(a)

    30,442       1,406,725  

Tapestry Inc.

    64,219       2,503,257  

Under Armour Inc., Class A(a)

    43,108       946,652  

Under Armour Inc., Class C, NVS(a)

    45,309       855,434  

VF Corp.

    74,523       5,431,236  
   

 

 

 
      81,892,769  
Trading Companies & Distributors — 0.2%            

SiteOne Landscape Supply Inc.(a)

    10,147       2,384,139  
   

 

 

 
Total Common Stocks — 99.8%
    (Cost: $1,148,188,226)
        1,403,275,994  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 1.6%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.05%(c)(d)(e)

    20,228,555       20,238,669  
 

 

 

C H E D U L E   O F  N V E S T M E N T S

  29


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Consumer Discretionary ETF

(Percentages shown are based on Net Assets)

 

Security   Shares   Value 
Money Market Funds (continued)

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(c)(d)

      1,940,000     $ 1,940,000
       

 

 

 
          22,178,669
       

 

 

 

Total Short-Term Investments — 1.6%
(Cost: $22,170,475)

 

      22,178,669
       

 

 

 

Total Investments in Securities — 101.4%
(Cost: $1,170,358,701)

 

      1,425,454,663

Other Assets, Less Liabilities — (1.4)%

 

      (20,281,754 )
       

 

 

 

Net Assets — 100.0%

 

    $  1,405,172,909
       

 

 

 

 

 

(a)   

Non-income producing security.

(b)   

All or a portion of this security is on loan.

(c)   

Affiliate of the Fund.

(d)   

Annualized 7-day yield as of period end.

(e)   

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
   

Shares

Held at
10/31/21

    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL
Agency Shares

  $ 43,823,267     $     $ (23,587,635 )(a)    $ 740     $ 2,297     $ 20,238,669       20,228,555     $ 34,960 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency
Shares

    2,273,000             (333,000 )(a)                   1,940,000       1,940,000       46        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 740     $ 2,297     $ 22,178,669       $ 35,006     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

E-Mini Consumer Staples Index

     4        12/17/21      $ 812      $ 9,691  

S&P 500 E-Mini Index

     4        12/17/21        920        8,713  
           

 

 

 
            $ 18,404  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 18,404  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

 

 

30  

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Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Consumer Discretionary ETF

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
    

Equity

Contracts

 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 142,922  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (94,454
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 1,359,845      

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
    Level 1     Level 2     Level 3     Total  

 

 

Investments

       

Assets

       

Common Stocks

  $ 1,403,275,994     $     $     $ 1,403,275,994  

Money Market Funds

    22,178,669                   22,178,669  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 1,425,454,663     $     $     $ 1,425,454,663  
 

 

 

   

 

 

   

 

 

   

 

 

 

Derivative financial instruments(a)

       

Assets

       

Futures Contracts

  $ 18,404     $         —     $         —     $ 18,404  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E   O F   I N V E S T M E N T S

  31


Schedule of Investments (unaudited) 

October 31, 2021

  

iShares® U.S. Consumer Staples ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Beverages — 27.9%

   

Boston Beer Co. Inc. (The), Class A, NVS(a)

    3,545     $ 1,745,842  

Brown-Forman Corp., Class A

    17,313       1,108,551  

Brown-Forman Corp., Class B, NVS

    69,748       4,735,192  

Coca-Cola Co. (The)

    1,296,318       73,073,446  

Constellation Brands Inc., Class A

    60,813       13,184,866  

Keurig Dr Pepper Inc.

    265,779       9,591,964  

Molson Coors Beverage Co., Class B

    67,828       2,990,536  

Monster Beverage Corp.(a)

    141,268       12,007,780  

PepsiCo Inc.

    461,428       74,566,765  
   

 

 

 
      193,004,942  
Chemicals — 1.7%            

Corteva Inc.

    280,713       12,112,766  
   

 

 

 
Food & Staples Retailing — 6.7%            

Albertsons Companies Inc., Class A

    59,012       1,826,421  

Casey’s General Stores Inc.

    14,012       2,683,859  

Grocery Outlet Holding Corp.(a)(b)

    33,215       737,041  

Kroger Co. (The)

    284,372       11,380,567  

Sysco Corp.

    185,399       14,257,183  

U.S. Foods Holding Corp.(a)

    83,969       2,911,205  

Walgreens Boots Alliance Inc.

    272,927       12,833,028  
   

 

 

 
      46,629,304  
Food Products — 20.2%            

Archer-Daniels-Midland Co.

    211,768       13,603,976  

Beyond Meat Inc.(a)(b)

    21,796       2,157,368  

Bunge Ltd.

    52,183       4,834,233  

Campbell Soup Co.

    74,184       2,963,651  

Conagra Brands Inc.

    178,141       5,736,140  

Darling Ingredients Inc.(a)

    61,451       5,193,838  

Flowers Foods Inc.

    71,252       1,763,487  

Freshpet Inc.(a)(b)

    15,522       2,420,035  

General Mills Inc.

    232,184       14,348,971  

Hain Celestial Group Inc. (The)(a)(b)

    31,855       1,429,334  

Hershey Co. (The)

    55,645       9,757,351  

Hormel Foods Corp.

    107,580       4,552,786  

Ingredion Inc.

    25,486       2,427,032  

JM Smucker Co. (The)

    39,894       4,901,377  

Kellogg Co.

    95,722       5,867,759  

Kraft Heinz Co. (The)

    252,515       9,062,763  

Lamb Weston Holdings Inc.

    55,456       3,130,491  

McCormick & Co. Inc./MD, NVS

    94,878       7,612,062  

Mondelez International Inc., Class A

    428,473       26,025,450  

Pilgrim’s Pride Corp.(a)

    18,072       508,908  

Post Holdings Inc.(a)

    22,423       2,275,486  

Seaboard Corp.

    95       365,752  

Tyson Foods Inc., Class A

    109,222       8,734,483  
   

 

 

 
      139,672,733  
Security   Shares     Value  

Health Care Providers & Services — 7.5%

   

AmerisourceBergen Corp.

    56,472     $ 6,890,713  

CVS Health Corp.

    366,869       32,754,064  

McKesson Corp.

    58,928       12,249,953  
   

 

 

 
      51,894,730  
Household Products — 24.8%            

Church & Dwight Co. Inc.

    93,311       8,151,649  

Clorox Co. (The)

    46,725       7,616,642  

Colgate-Palmolive Co.

    285,538       21,755,140  

Kimberly-Clark Corp.

    128,262       16,608,647  

Procter & Gamble Co. (The)

    805,725       115,210,618  

Reynolds Consumer Products Inc.

    20,657       557,326  

Spectrum Brands Holdings Inc.

    15,915       1,492,031  
   

 

 

 
      171,392,053  
Personal Products — 0.3%            

Herbalife Nutrition Ltd.(a)(b)

    39,904       1,851,546  
   

 

 

 
Tobacco — 10.6%            

Altria Group Inc.

    548,165       24,179,558  

Philip Morris International Inc.

    524,245       49,562,123  
   

 

 

 
      73,741,681  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $678,424,058)

      690,299,755  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.9%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.05%(c)(d)(e)

    5,223,623       5,226,235  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(c)(d)

    950,000       950,000  
   

 

 

 
      6,176,235  
   

 

 

 

Total Short-Term Investments — 0.9%
(Cost: $6,176,215)

      6,176,235  
   

 

 

 

Total Investments in Securities — 100.6%
(Cost: $684,600,273)

      696,475,990  

Other Assets, Less Liabilities — (0.6)%

      (4,014,176
   

 

 

 

Net Assets — 100.0%

    $  692,461,814  
   

 

 

 

 

(a)   

Non-income producing security.

(b)   

All or a portion of this security is on loan.

(c)   

Affiliate of the Fund.

(d)   

Annualized 7-day yield as of period end.

(e)   

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

32  

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Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Consumer Staples ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 1,114,123     $ 4,112,068 (a)    $     $ 179     $ (135)     $ 5,226,235       5,223,623     $ 4,098 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    810,000       140,000 (a)                         950,000       950,000       28        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 179     $ (135   $ 6,176,235       $ 4,126     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description   Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

          

E-Mini Consumer Staples Index

    14        12/17/21      $ 1,790      $ 77,199  

S&P Mid 400 E-Mini Index

    1        12/17/21        279        8,386  
          

 

 

 
           $ 85,585  
          

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 85,585  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 20,418  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 59,233  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 1,530,897  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

C H E D U L E   O F  N V E S T M E N T S

  33


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Consumer Staples ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 690,299,755      $      $      $ 690,299,755  

Money Market Funds

     6,176,235                      6,176,235  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 696,475,990      $      $      $ 696,475,990  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 85,585      $         —      $         —      $ 85,585  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

34  

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Schedule of Investments (unaudited) 

October 31, 2021

  

iShares® U.S. Financial Services ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

Common Stocks

 

Banks — 42.5%  

Bank of America Corp.

    4,536,549      $ 216,756,311  

Bank OZK

    74,873        3,344,577  

BOK Financial Corp.

    18,694        1,891,272  

Citigroup Inc.

    1,241,657        85,872,998  

Citizens Financial Group Inc.

    261,029        12,367,554  

Comerica Inc.

    82,032        6,980,103  

Commerce Bancshares Inc.

    65,015        4,584,208  

Cullen/Frost Bankers Inc.

    34,706        4,494,427  

East West Bancorp. Inc.

    86,918        6,908,243  

Fifth Third Bancorp

    423,150        18,419,719  

First Citizens BancShares Inc./NC, Class A(a)

    4,359        3,547,790  

First Financial Bankshares Inc.

    78,804        3,996,939  

First Horizon Corp.

    336,533        5,710,965  

First Republic Bank/CA

    108,010        23,365,803  

FNB Corp.

    196,534        2,289,621  

Glacier Bancorp. Inc.

    66,369        3,669,542  

Home BancShares Inc./AR

    92,189        2,190,411  

Huntington Bancshares Inc./OH

    904,573        14,237,979  

JPMorgan Chase & Co.

    1,830,614        311,003,012  

KeyCorp.

    585,895        13,633,777  

M&T Bank Corp.

    78,831        11,597,617  

People’s United Financial Inc.

    261,914        4,489,206  

Pinnacle Financial Partners Inc.

    46,627        4,502,769  

PNC Financial Services Group Inc. (The)

    260,360        54,943,771  

Popular Inc.

    49,593        4,038,854  

Prosperity Bancshares Inc.

    56,932        4,287,549  

Regions Financial Corp.

    584,774        13,847,448  

Signature Bank/New York NY

    37,149        11,063,715  

SVB Financial Group(b)

    35,939        25,782,639  

Synovus Financial Corp.

    90,074        4,196,548  

Truist Financial Corp.

    817,750        51,902,592  

U.S. Bancorp.

    826,543        49,898,401  

UMB Financial Corp.

    26,466        2,615,370  

Umpqua Holdings Corp.

    135,394        2,768,807  

United Bankshares Inc./WV

    79,467        2,939,484  

Valley National Bancorp.

    250,400        3,320,304  

Webster Financial Corp.

    55,435        3,102,143  

Wells Fargo & Co.

    2,515,684        128,702,393  

Western Alliance Bancorp.

    63,830        7,410,025  

Wintrust Financial Corp.

    34,873        3,086,261  

Zions Bancorp. NA

    99,244        6,251,380  
    

 

 

 
         1,146,012,527  
Capital Markets — 34.5%             

Affiliated Managers Group Inc.(a)

    25,344        4,254,751  

Ameriprise Financial Inc.

    69,683        21,053,325  

Apollo Global Management Inc.

    128,419        9,881,842  

Ares Management Corp., Class A

    100,139        8,485,779  

Bank of New York Mellon Corp. (The)

    486,497        28,800,622  

BlackRock Inc.(c)

    87,646        82,690,495  

Blackstone Inc., NVS

    420,227        58,167,821  

Carlyle Group Inc. (The)

    85,026        4,774,210  

Cboe Global Markets Inc.

    65,320        8,618,321  

Charles Schwab Corp. (The)

    919,687        75,441,925  

CME Group Inc.

    220,015        48,524,308  

Coinbase Global Inc., Class A(a)(b)

    17,539        5,602,307  

FactSet Research Systems Inc.

    23,146        10,274,278  

Federated Hermes Inc.

    60,002        1,998,667  

Franklin Resources Inc.

    172,380        5,428,246  
Security   Shares      Value  
Capital Markets (continued)             

Goldman Sachs Group Inc. (The)

    206,514      $ 85,362,562  

Houlihan Lokey Inc.

    31,163        3,492,749  

Interactive Brokers Group Inc., Class A

    53,724        3,806,345  

Intercontinental Exchange Inc.

    345,003        47,769,115  

Invesco Ltd.

    208,970        5,309,928  

Janus Henderson Group PLC

    99,249        4,615,079  

Jefferies Financial Group Inc.

    120,866        5,197,238  

KKR & Co. Inc.

    357,179        28,456,451  

Lazard Ltd., Class A

    69,358        3,397,848  

LPL Financial Holdings Inc.

    49,160        8,063,223  

MarketAxess Holdings Inc.

    23,279        9,513,429  

Moody’s Corp.

    99,243        40,109,058  

Morgan Stanley

    894,216        91,907,521  

Morningstar Inc.

    14,569        4,614,731  

MSCI Inc.

    50,506        33,580,429  

Nasdaq Inc.

    71,704        15,048,519  

Northern Trust Corp.

    127,668        15,708,271  

Raymond James Financial Inc.

    113,463        11,186,317  

S&P Global Inc.

    147,643        70,006,405  

SEI Investments Co.

    65,945        4,157,173  

State Street Corp.

    224,871        22,161,037  

Stifel Financial Corp.

    64,070        4,668,781  

T Rowe Price Group Inc.

    139,027        30,152,176  

Tradeweb Markets Inc., Class A

    64,473        5,744,544  

Virtu Financial Inc., Class A

    54,871        1,365,190  
    

 

 

 
           929,391,016  
Consumer Finance — 6.7%             

Ally Financial Inc.

    220,877        10,544,668  

American Express Co.

    394,217        68,507,030  

Capital One Financial Corp.

    273,299        41,276,348  

Credit Acceptance Corp.(a)(b)

    5,494        3,286,566  

Discover Financial Services

    183,460        20,789,687  

FirstCash Inc.

    24,880        2,201,134  

OneMain Holdings Inc.

    67,765        3,578,670  

PROG Holdings Inc.

    40,900        1,654,405  

SLM Corp.

    188,090        3,451,451  

Synchrony Financial

    349,012        16,211,607  

Upstart Holdings Inc.(a)(b)

    28,269        9,103,749  
    

 

 

 
       180,605,315  
Diversified Financial Services — 0.3%             

Equitable Holdings Inc.

    234,917        7,869,719  

Jackson Financial Inc., Class A(b)

    40,184        1,087,781  
    

 

 

 
       8,957,500  
Insurance — 0.3%             

Fidelity National Financial Inc.

    174,789        8,374,141  
    

 

 

 
IT Services — 14.7%             

Mastercard Inc., Class A

    533,693        179,064,675  

Visa Inc., Class A

    1,033,889        218,946,674  
    

 

 

 
       398,011,349  
Thrifts & Mortgage Finance — 0.6%             

Essent Group Ltd.

    68,536        3,289,728  

MGIC Investment Corp.

    207,877        3,359,292  

New York Community Bancorp. Inc.

    284,890        3,541,183  

Radian Group Inc.

    114,130        2,724,283  

Rocket Companies Inc., Class A

    83,210        1,371,301  

TFS Financial Corp.

    29,185        567,940  
 

 

 

C H E D U L E   O F  N V E S T M E N T S

  35


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Financial Services ETF

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

 

 
Thrifts & Mortgage Finance (continued)  

UWM Holdings Corp.

    55,173      $ 375,176  
    

 

 

 
       15,228,903  
    

 

 

 

Total Common Stocks — 99.6%
(Cost: $2,229,107,684)

 

     2,686,580,751  
    

 

 

 

Short-Term Investments

 

Money Market Funds — 1.0%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    20,727,119        20,737,483  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(c)(d)

    4,989,000        4,989,000  
    

 

 

 
       25,726,483  
    

 

 

 

Total Short-Term Investments — 1.0%
(Cost: $25,726,483)

 

     25,726,483  
    

 

 

 

Total Investments in Securities — 100.6%
(Cost: $2,254,834,167)

 

     2,712,307,234  

Other Assets, Less Liabilities — (0.6)%

 

     (16,374,021
    

 

 

 

Net Assets — 100.0%

 

   $   2,695,933,213  
    

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
    

Shares

Held at
10/31/21

     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $      $ 20,737,290 (a)     $      $ 193      $      $ 20,737,483        20,727,119      $ 6,822 (b)      $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     2,049,000        2,940,000 (a)                             4,989,000        4,989,000        124         

BlackRock Inc.

     47,072,882        30,788,521        (4,331,243      1,460,864        7,699,471        82,690,495        87,646        682,495         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $     1,461,057      $     7,699,471      $ 108,416,978         $ 689,441      $         —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

E-Mini Financial Select Sector Index

     74        12/17/21      $ 9,160      $     368,727  
           

 

 

 

 

 

36  

 2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Financial Services ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 368,727  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 273,948  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 284,547  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 5,927,729  

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1      Level 2      Level 3      Total  

Investments

           

Assets

           

Common Stocks

   $ 2,686,580,751      $      $      $ 2,686,580,751  

Money Market Funds

     25,726,483                      25,726,483  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,712,307,234      $      $      $ 2,712,307,234  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 368,727      $         —      $         —      $ 368,727  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E   O F  N V E S T M E N T S

  37


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® U.S. Financials ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Banks — 35.7%

   

Bank of America Corp.

    3,212,887     $ 153,511,741  

Bank of Hawaii Corp.

    21,480       1,815,060  

Bank OZK

    65,866       2,942,234  

BOK Financial Corp.

    16,388       1,657,974  

Citigroup Inc.

    1,076,994       74,484,905  

Citizens Financial Group Inc.

    225,946       10,705,321  

Comerica Inc.

    71,236       6,061,471  

Commerce Bancshares Inc.

    56,703       3,998,129  

Cullen/Frost Bankers Inc.

    30,465       3,945,218  

East West Bancorp. Inc.

    75,109       5,969,663  

Fifth Third Bancorp.

    365,542       15,912,043  

First Citizens BancShares Inc./NC, Class A(a)

    3,224       2,624,014  

First Hawaiian Inc.

    70,123       1,934,694  

First Horizon Corp.

    291,433       4,945,618  

First Republic Bank/CA

    94,555       20,455,083  

FNB Corp.

    171,522       1,998,231  

Huntington Bancshares Inc./OH

    779,202       12,264,639  

JPMorgan Chase & Co.

    1,151,497       195,627,825  

KeyCorp.

    506,792       11,793,050  

M&T Bank Corp.

    68,236       10,038,880  

PacWest Bancorp.

    62,187       2,952,017  

People’s United Financial Inc.

    226,705       3,885,724  

Pinnacle Financial Partners Inc.

    39,626       3,826,683  

PNC Financial Services Group Inc. (The)

    225,455       47,577,769  

Popular Inc.

    42,290       3,444,098  

Prosperity Bancshares Inc.

    47,690       3,591,534  

Regions Financial Corp.

    511,155       12,104,150  

Signature Bank/New York NY

    31,567       9,401,284  

Sterling Bancorp./DE

    102,611       2,611,450  

SVB Financial Group(b)

    30,054       21,560,740  

Synovus Financial Corp.

    77,516       3,611,470  

Truist Financial Corp.

    713,696       45,298,285  

U.S. Bancorp.

    713,262       43,059,627  

Umpqua Holdings Corp.

    118,129       2,415,738  

Webster Financial Corp.

    48,323       2,704,155  

Wells Fargo & Co.

    2,132,706       109,109,239  

Western Alliance Bancorp.

    53,658       6,229,157  

Wintrust Financial Corp.

    30,446       2,694,471  

Zions Bancorp. NA

    84,990       5,353,520  
   

 

 

 
          874,116,904  
Capital Markets — 32.2%            

Affiliated Managers Group Inc.

    21,963       3,687,149  

Ameriprise Financial Inc.

    60,372       18,240,192  

Apollo Global Management Inc.

    96,452       7,421,981  

Ares Management Corp., Class A

    73,188       6,201,951  

Bank of New York Mellon Corp. (The)

    419,999       24,863,941  

BlackRock Inc.(c)

    75,968       71,672,769  

Blackstone Inc., NVS

    361,802       50,080,633  

Carlyle Group Inc. (The)

    86,463       4,854,898  

Cboe Global Markets Inc.

    56,616       7,469,915  

Charles Schwab Corp. (The)

    799,305       65,566,989  

CME Group Inc.

    190,488       42,012,128  

Evercore Inc., Class A

    20,517       3,115,301  

FactSet Research Systems Inc.

    20,182       8,958,588  

Franklin Resources Inc.

    153,964       4,848,326  

Goldman Sachs Group Inc. (The)

    175,375       72,491,256  

Interactive Brokers Group Inc., Class A

    43,052       3,050,234  

Intercontinental Exchange Inc.

    295,450       40,908,007  
Security   Shares     Value  
Capital Markets (continued)            

Invesco Ltd.

    177,648     $ 4,514,036  

Janus Henderson Group PLC

    85,870       3,992,955  

Jefferies Financial Group Inc.

    116,532       5,010,876  

KKR & Co. Inc.

    295,366       23,531,809  

Lazard Ltd., Class A

    53,659       2,628,754  

LPL Financial Holdings Inc.

    42,346       6,945,591  

MarketAxess Holdings Inc.

    19,876       8,122,725  

Moody’s Corp.

    86,210       34,841,772  

Morgan Stanley

    723,534       74,364,825  

Morningstar Inc.

    12,484       3,954,307  

MSCI Inc.

    42,584       28,313,250  

Nasdaq Inc.

    61,772       12,964,090  

Northern Trust Corp.

    109,132       13,427,601  

Raymond James Financial Inc.

    98,224       9,683,904  

S&P Global Inc.

    127,928       60,658,341  

SEI Investments Co.

    57,739       3,639,867  

State Street Corp.

    195,338       19,250,560  

Stifel Financial Corp.

    54,393       3,963,618  

T Rowe Price Group Inc.

    119,627       25,944,704  

Tradeweb Markets Inc., Class A

    55,884       4,979,264  

Virtu Financial Inc., Class A

    49,815       1,239,397  
   

 

 

 
          787,416,504  
Consumer Finance — 1.8%            

Ally Financial Inc.

    191,023       9,119,438  

Credit Acceptance Corp.(a)(b)

    4,680       2,799,623  

Discover Financial Services

    158,902       18,006,774  

OneMain Holdings Inc.

    55,485       2,930,163  

Santander Consumer USA Holdings Inc.

    32,321       1,347,786  

SLM Corp.

    163,275       2,996,096  

Upstart Holdings Inc.(b)

    23,997       7,727,994  
   

 

 

 
      44,927,874  
Diversified Financial Services — 8.7%            

Berkshire Hathaway Inc., Class B(b)

    706,246       202,699,664  

Equitable Holdings Inc.

    196,539       6,584,057  

Voya Financial Inc.

    60,120       4,194,572  
   

 

 

 
      213,478,293  
Insurance — 19.7%            

Aflac Inc.

    351,915       18,887,278  

Alleghany Corp.(b)

    7,191       4,684,074  

Allstate Corp. (The)

    156,648       19,372,658  

American Financial Group Inc./OH

    36,105       4,911,724  

American International Group Inc.

    456,043       26,947,581  

Aon PLC, Class A

    118,869       38,028,570  

Arch Capital Group Ltd.(b)

    202,944       8,487,118  

Arthur J Gallagher & Co.

    108,757       18,235,286  

Assurant Inc.

    31,093       5,015,612  

Assured Guaranty Ltd.

    37,958       2,109,706  

Athene Holding Ltd., Class A(b)

    61,500       5,351,115  

Axis Capital Holdings Ltd.

    41,697       2,171,163  

Brighthouse Financial Inc.(b)

    44,511       2,235,788  

Brown & Brown Inc.

    124,809       7,876,696  

Chubb Ltd.

    232,063       45,340,469  

Cincinnati Financial Corp.

    79,682       9,676,582  

CNA Financial Corp.

    15,352       688,691  

Erie Indemnity Co., Class A, NVS

    13,473       2,772,878  

Everest Re Group Ltd.

    21,108       5,519,742  

Fidelity National Financial Inc.

    145,094       6,951,454  

First American Financial Corp.

    56,435       4,127,656  

Globe Life Inc.

    53,321       4,746,635  
 

 

 

38  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Financials ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Insurance (continued)            

GoHealth Inc., Class A(b)

    31,035     $ 167,589  

Hanover Insurance Group Inc. (The)

    19,155       2,413,530  

Hartford Financial Services Group Inc. (The)

    184,091       13,425,757  

Kemper Corp.

    32,307       2,050,848  

Lemonade Inc.(a)(b)

    20,676       1,285,220  

Lincoln National Corp.

    99,599       7,186,068  

Loews Corp.

    115,374       6,469,020  

Markel Corp.(b)

    7,187       9,437,465  

Marsh & McLennan Companies Inc.

    269,950       45,027,660  

Mercury General Corp.

    14,640       797,734  

MetLife Inc.

    385,300       24,196,840  

Old Republic International Corp.

    149,401       3,859,028  

Primerica Inc.

    20,928       3,520,927  

Principal Financial Group Inc.

    141,035       9,462,038  

Progressive Corp. (The)

    310,373       29,448,190  

Prudential Financial Inc.

    205,168       22,578,738  

Reinsurance Group of America Inc.

    36,156       4,269,300  

RenaissanceRe Holdings Ltd.

    24,706       3,503,311  

Travelers Companies Inc. (The)

    133,451       21,469,597  

Unum Group

    84,421       2,150,203  

W R Berkley Corp.

    73,484       5,849,326  

White Mountains Insurance Group Ltd.

    1,629       1,718,579  

Willis Towers Watson PLC

    68,193       16,521,800  
   

 

 

 
          480,947,244  
IT Services — 0.5%            

Broadridge Financial Solutions Inc.

    61,388       10,952,233  
   

 

 

 
Mortgage Real Estate Investment — 0.7%            

AGNC Investment Corp.

    279,170       4,444,387  

Annaly Capital Management Inc.

    743,442       6,289,519  

New Residential Investment Corp.

    232,130       2,636,997  

Starwood Property Trust Inc.

    146,260       3,725,242  
   

 

 

 
      17,096,145  
Security   Shares     Value  
Thrifts & Mortgage Finance — 0.3%            

MGIC Investment Corp.

    181,131     $ 2,927,077  

New York Community Bancorp. Inc.

    241,654       3,003,759  

Rocket Companies Inc., Class A

    75,026       1,236,429  

TFS Financial Corp.

    27,733       539,684  

UWM Holdings Corp.

    53,320       362,576  
   

 

 

 
      8,069,525  
   

 

 

 

Total Common Stocks — 99.6%
(Cost: $2,090,278,114)

      2,437,004,722  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.5%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.05%(c)(d)(e)

    6,646,158       6,649,481  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(c)(d)

    5,043,000       5,043,000  
   

 

 

 
      11,692,481  
   

 

 

 

Total Short-Term Investments — 0.5%
(Cost: $11,692,481)

      11,692,481  
   

 

 

 

Total Investments in Securities — 100.1%
(Cost: $2,101,970,595)

      2,448,697,203  

Other Assets, Less Liabilities — (0.1)%

      (3,401,128
   

 

 

 

Net Assets — 100.0%

    $   2,445,296,075  
   

 

 

 

 

(a)  

All or a portion of this security is on loan.

(b)  

Non-income producing security.

(c)  

Affiliate of the Fund.

(d)  

Annualized 7-day yield as of period end.

(e)  

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
   

Purchases

at Cost

   

Proceeds

from Sales

    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
   

Shares

Held at
10/31/21

    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 810     $ 6,648,767 (a)    $     $ (96   $     $ 6,649,481       6,646,158     $ 5,356 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    5,813,000             (770,000 )(a)                   5,043,000       5,043,000       139        

BlackRock Inc.

    41,068,232       34,585,119       (11,416,619     4,034,850       3,401,187       71,672,769       75,968       398,603        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 4,034,754     $ 3,401,187     $ 83,365,250       $ 404,098     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  39


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Financials ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

Dow Jones U.S. Real Estate Index

     49        12/17/21      $ 2,083      $ 51,975  

E-Mini Financial Select Sector Index

     49        12/17/21        6,066        277,058  
           

 

 

 
            $ 329,033  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 329,033  
  

 

 

 

 

  (a)  

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 390,289  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 79,371  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 6,995,942  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 2,437,004,722        $        $        $ 2,437,004,722  

Money Market Funds

     11,692,481                            11,692,481  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 2,448,697,203        $        $        $ 2,448,697,203  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 329,033        $                 —        $                 —        $ 329,033  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

40  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® U.S. Industrials ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Aerospace & Defense — 10.4%

   

Axon Enterprise Inc.(a)

    18,645     $ 3,355,354  

Boeing Co. (The)(a)

    154,405       31,966,467  

BWX Technologies Inc.

    27,435       1,556,662  

Curtiss-Wright Corp.

    11,764       1,502,028  

General Dynamics Corp.

    71,705       14,538,189  

HEICO Corp.(b)

    12,938       1,803,428  

HEICO Corp., Class A

    22,579       2,837,729  

Howmet Aerospace Inc.

    111,255       3,303,161  

Huntington Ingalls Industries Inc.

    11,378       2,306,662  

L3Harris Technologies Inc.

    57,733       13,309,766  

Lockheed Martin Corp.

    71,412       23,731,636  

Mercury Systems Inc.(a)

    15,952       822,166  

Northrop Grumman Corp.

    43,510       15,542,642  

Raytheon Technologies Corp.

    436,907       38,823,556  

Spirit AeroSystems Holdings Inc., Class A

    30,242       1,248,692  

Textron Inc.

    64,944       4,796,114  

TransDigm Group Inc.(a)

    14,883       9,284,313  

Virgin Galactic Holdings Inc.(a)(b)

    51,634       968,137  
   

 

 

 
          171,696,702  
Air Freight & Logistics — 4.5%            

CH Robinson Worldwide Inc.

    37,952       3,680,964  

Expeditors International of Washington Inc.

    48,475       5,975,029  

FedEx Corp.

    70,676       16,646,318  

GXO Logistics Inc.(a)

    27,962       2,483,026  

United Parcel Service Inc., Class B

    208,679       44,546,706  
   

 

 

 
      73,332,043  
Building Products — 4.6%            

A O Smith Corp.

    37,971       2,774,541  

Advanced Drainage Systems Inc.

    17,466       1,970,165  

Allegion PLC

    25,812       3,311,680  

Armstrong World Industries Inc.

    13,733       1,450,891  

AZEK Co. Inc. (The)(a)

    32,436       1,190,077  

Builders FirstSource Inc.(a)

    58,886       3,431,287  

Carlisle Companies Inc.

    14,756       3,289,408  

Carrier Global Corp.

    250,514       13,084,346  

Fortune Brands Home & Security Inc.

    39,735       4,029,129  

Johnson Controls International PLC

    206,293       15,135,717  

Lennox International Inc.

    9,623       2,879,971  

Masco Corp.

    70,891       4,646,905  

Owens Corning

    29,528       2,758,211  

Trane Technologies PLC

    68,762       12,441,109  

Trex Co. Inc.(a)

    33,270       3,539,928  
   

 

 

 
      75,933,365  
Chemicals — 3.0%            

Axalta Coating Systems Ltd.(a)

    59,587       1,858,518  

Diversey Holdings Ltd.(a)

    14,439       251,239  

DuPont de Nemours Inc.

    150,923       10,504,241  

PPG Industries Inc.

    68,196       10,950,232  

RPM International Inc.

    36,667       3,197,362  

Sherwin-Williams Co. (The)

    70,303       22,258,633  
   

 

 

 
      49,020,225  
Commercial Services & Supplies — 0.8%            

ADT Inc.

    45,642       381,111  

Cintas Corp.

    25,157       10,895,497  

MSA Safety Inc.

    10,586       1,619,975  
   

 

 

 
      12,896,583  
Security   Shares     Value  
Construction & Engineering — 0.6%            

AECOM(a)

    39,124     $ 2,674,908  

MasTec Inc.(a)

    16,210       1,444,797  

Quanta Services Inc.

    39,824       4,829,855  

Valmont Industries Inc.

    6,025       1,439,734  
   

 

 

 
      10,389,294  
Construction Materials — 1.0%            

Eagle Materials Inc.

    11,877       1,762,072  

Martin Marietta Materials Inc.

    17,914       7,037,336  

Vulcan Materials Co.

    38,102       7,243,952  
   

 

 

 
      16,043,360  
Consumer Finance — 3.6%            

American Express Co.

    185,838       32,294,928  

Capital One Financial Corp.

    127,676       19,282,906  

Synchrony Financial

    163,730       7,605,258  
   

 

 

 
      59,183,092  
Containers & Packaging — 2.2%            

Amcor PLC

    444,301       5,362,713  

AptarGroup Inc.

    18,969       2,291,076  

Ardagh Group SA(a)

    5,329       131,893  

Ball Corp.

    92,598       8,470,865  

Berry Global Group Inc.(a)

    38,744       2,539,282  

Crown Holdings Inc.

    36,332       3,778,165  

Graphic Packaging Holding Co.

    81,520       1,624,694  

Packaging Corp. of America

    26,962       3,703,770  

Sealed Air Corp.

    42,967       2,548,802  

Silgan Holdings Inc.

    24,185       972,237  

Sonoco Products Co.

    28,322       1,641,260  

Westrock Co.

    75,866       3,649,154  
   

 

 

 
      36,713,911  
Electrical Equipment — 4.6%            

Acuity Brands Inc.

    10,212       2,097,851  

AMETEK Inc.

    66,416       8,793,478  

Eaton Corp. PLC

    114,763       18,908,352  

Emerson Electric Co.

    171,970       16,682,810  

Generac Holdings Inc.(a)(b)

    17,664       8,806,564  

Hubbell Inc.

    15,545       3,099,207  

nVent Electric PLC

    48,086       1,704,649  

Regal Rexnord Corp.

    19,408       2,956,420  

Rockwell Automation Inc.

    33,433       10,678,500  

Sensata Technologies Holding PLC(a)

    44,637       2,459,499  
   

 

 

 
          76,187,330  
Electronic Equipment, Instruments & Components — 2.4%  

Cognex Corp.

    49,199       4,309,341  

Coherent Inc.(a)

    7,056       1,795,046  

Keysight Technologies Inc.(a)(b)

    53,406       9,614,148  

Littelfuse Inc.

    6,916       2,037,108  

Teledyne Technologies Inc.(a)

    13,232       5,944,079  

Trimble Inc.(a)(b)

    72,163       6,304,881  

Vontier Corp.

    48,834       1,652,054  

Zebra Technologies Corp., Class A(a)

    15,334       8,187,589  
   

 

 

 
      39,844,246  
Household Durables — 0.3%            

Mohawk Industries Inc.(a)

    16,249       2,879,485  

TopBuild Corp.(a)

    9,529       2,448,667  
   

 

 

 
      5,328,152  
Industrial Conglomerates — 6.5%            

3M Co.

    166,773       29,799,000  

General Electric Co.

    314,870       33,020,417  
 

 

 

S C H E D U L E    O F   I N V E S T M E N T S

  41


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Industrials ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Industrial Conglomerates (continued)            

Honeywell International Inc.

    200,359     $ 43,802,484  
   

 

 

 
      106,621,901  
IT Services — 28.7%            

Accenture PLC, Class A

    183,372       65,792,040  

Alliance Data Systems Corp.

    14,366       1,224,702  

Automatic Data Processing Inc.

    122,626       27,528,311  

Euronet Worldwide Inc.(a)

    14,625       1,640,779  

Fidelity National Information Services Inc.

    178,619       19,780,268  

Fiserv Inc.(a)

    172,433       16,982,926  

FleetCor Technologies Inc.(a)

    23,491       5,811,908  

Genpact Ltd.

    52,557       2,593,688  

Global Payments Inc.

    84,521       12,085,658  

Jack Henry & Associates Inc.

    21,232       3,534,703  

Mastercard Inc., Class A

    252,306       84,653,709  

Paychex Inc.

    92,786       11,438,658  

PayPal Holdings Inc.(a)

    338,824       78,807,074  

Paysafe Ltd.(a)(b)

    120,359       938,800  

Shift4 Payments Inc., Class A(a)(b)

    12,399       782,749  

Square Inc., Class A(a)(b)

    114,143       29,049,394  

StoneCo Ltd., Class A(a)

    63,476       2,149,297  

Visa Inc., Class A

    488,092       103,363,243  

Western Union Co. (The)

    117,910       2,148,320  

WEX Inc.(a)

    12,897       1,930,681  
   

 

 

 
          472,236,908  
Leisure Products — 0.1%            

Brunswick Corp./DE

    22,475       2,092,198  

Hayward Holdings Inc.(a)(b)

    11,081       256,968  
   

 

 

 
      2,349,166  
Life Sciences Tools & Services — 1.0%            

Mettler-Toledo International Inc.(a)

    6,612       9,791,579  

Waters Corp.(a)

    17,602       6,469,615  
   

 

 

 
      16,261,194  
Machinery — 12.4%            

AGCO Corp.

    18,021       2,202,346  

Allison Transmission Holdings Inc.

    30,373       1,013,243  

Caterpillar Inc.

    157,996       32,232,764  

Colfax Corp.(a)(b)

    33,780       1,743,724  

Crane Co.

    14,243       1,471,017  

Cummins Inc.

    41,393       9,927,697  

Deere & Co.

    81,283       27,823,984  

Donaldson Co. Inc.

    36,401       2,184,424  

Dover Corp.

    41,358       6,992,811  

Flowserve Corp.

    37,558       1,262,700  

Fortive Corp.

    94,110       7,125,068  

Gates Industrial Corp. PLC(a)

    27,473       451,656  

Graco Inc.

    48,273       3,629,164  

IDEX Corp.

    21,860       4,865,380  

Illinois Tool Works Inc.

    90,682       20,663,707  

Ingersoll Rand Inc.(a)

    116,847       6,281,695  

ITT Inc.

    24,885       2,340,932  

Lincoln Electric Holdings Inc.

    16,581       2,361,134  

Middleby Corp. (The)(a)

    15,815       2,885,289  

Nordson Corp.

    16,699       4,245,053  

Oshkosh Corp.

    19,731       2,111,217  

Otis Worldwide Corp.

    123,813       9,943,422  

PACCAR Inc.

    98,163       8,797,368  

Parker-Hannifin Corp.

    37,058       10,991,032  

Pentair PLC

    47,538       3,516,386  

Snap-on Inc.

    15,345       3,118,564  
Security   Shares     Value  
Machinery (continued)            

Stanley Black & Decker Inc.

    46,496     $ 8,356,726  

Toro Co. (The)

    30,866       2,946,777  

Westinghouse Air Brake Technologies Corp.

    52,201       4,736,197  

Woodward Inc.

    16,582       1,872,937  

Xylem Inc./NY

    51,594       6,737,661  
   

 

 

 
      204,832,075  
Marine — 0.1%            

Kirby Corp.(a)(b)

    17,207       901,819  
   

 

 

 
Multi-Utilities — 0.1%            

MDU Resources Group Inc.

    57,595       1,769,894  
   

 

 

 
Paper & Forest Products — 0.1%            

Louisiana-Pacific Corp.

    27,411       1,615,330  
   

 

 

 
Professional Services — 3.3%            

Booz Allen Hamilton Holding Corp.

    38,271       3,324,219  

Equifax Inc.

    34,899       9,682,029  

FTI Consulting Inc.(a)(b)

    9,684       1,393,721  

IHS Markit Ltd.

    107,557       14,059,851  

Jacobs Engineering Group Inc.

    37,209       5,224,888  

Legalzoomcom Inc.(a)(b)

    5,441       152,566  

ManpowerGroup Inc.

    15,685       1,515,955  

Robert Half International Inc.

    31,568       3,569,394  

TransUnion

    55,155       6,358,820  

Verisk Analytics Inc.

    45,725       9,614,596  
   

 

 

 
      54,896,039  
Road & Rail — 7.4%            

CSX Corp.

    652,851       23,613,621  

JB Hunt Transport Services Inc.

    24,187       4,769,435  

Kansas City Southern

    26,109       8,100,317  

Knight-Swift Transportation Holdings Inc.

    46,147       2,616,074  

Landstar System Inc.

    11,040       1,940,942  

Norfolk Southern Corp.

    71,045       20,819,737  

Old Dominion Freight Line Inc.

    29,446       10,051,392  

Ryder System Inc.

    15,075       1,280,621  

Schneider National Inc., Class B

    14,950       372,853  

TuSimple Holdings Inc., Class A(a)

    9,620       376,334  

Union Pacific Corp.

    188,033       45,391,166  

XPO Logistics Inc.(a)

    27,962       2,399,140  
   

 

 

 
      121,731,632  
Semiconductors & Semiconductor Equipment — 0.2%  

MKS Instruments Inc.

    15,859       2,379,643  
   

 

 

 
Software — 0.8%            

Bill.com Holdings Inc.(a)

    22,618       6,656,704  

Fair Isaac Corp.(a)

    7,909       3,149,364  

Paylocity Holding Corp.(a)

    10,766       3,285,137  
   

 

 

 
      13,091,205  
Trading Companies & Distributors — 1.2%            

Air Lease Corp.

    30,911       1,237,986  

Core & Main Inc., Class A(a)

    10,100       276,336  

MSC Industrial Direct Co. Inc., Class A

    12,955       1,089,127  

United Rentals Inc.(a)

    20,831       7,897,240  

Watsco Inc.

    9,374       2,714,523  

WW Grainger Inc.

    13,384       6,198,264  
   

 

 

 
      19,413,476  
   

 

 

 

Total Common Stocks — 99.9%
(Cost: $1,372,335,097)

          1,644,668,585  
   

 

 

 
 

 

 

42  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Industrials ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Short-Term Investments

 

Money Market Funds — 1.8%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.05%(c)(d)(e)

    28,308,099     $ 28,322,253  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(c)(d)

    1,482,000       1,482,000  
   

 

 

 
      29,804,253  
   

 

 

 

Total Short-Term Investments — 1.8%
(Cost: $29,802,557)

 

    29,804,253  
   

 

 

 

Total Investments in Securities — 101.7%
(Cost: $1,402,137,654)

 

    1,674,472,838  

Other Assets, Less Liabilities — (1.7)%

 

    (27,837,877
   

 

 

 

Net Assets — 100.0%

    $ 1,646,634,961  
   

 

 

 

 

(a)   

Non-income producing security.

(b)   

All or a portion of this security is on loan.

(c)   

Affiliate of the Fund.

(d)   

Annualized 7-day yield as of period end.

(e)   

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
   

Shares

Held at
10/31/21

    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 24,612,573     $ 3,709,658 (a)    $     $ (1,643   $ 1,665     $ 28,322,253       28,308,099     $ 19,847 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    1,952,000             (470,000 )(a)                  1,482,000       1,482,000       77        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (1,643   $ 1,665     $ 29,804,253       $ 19,924     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

E-Mini Technology Select Sector Index

     2        12/17/21      $ 325      $ 20,586  

XAI Industrial Index

     12        12/17/21        1,260        56,771  
           

 

 

 
            $ 77,357  
           

 

 

 

 

 

C H E D U L E   O F  N V E S T M E N T S

  43


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Industrials ETF

    

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 77,357  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 103,622  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (26,953
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 3,180,123  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 1,644,536,692      $         131,893      $                 —      $ 1,644,668,585  

Money Market Funds

     29,804,253                      29,804,253  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,674,340,945      $ 131,893      $      $ 1,674,472,838  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 77,357      $      $      $ 77,357  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

44  

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Statements of Assets and Liabilities (unaudited)

October 31, 2021

 

   

iShares

MSCI KLD 400
Social ETF

    

iShares

MSCI USA

ESG Select

ETF

    

iShares

U.S. Basic
Materials ETF

   

iShares

U.S. Consumer
Discretionary

ETF

 

 

 

ASSETS

         

Investments in securities, at value (including securities on loan)(a):

         

Unaffiliated(b)

  $ 3,801,542,879      $ 4,020,426,687      $ 853,019,623     $ 1,403,275,994  

Affiliated(c)

    50,140,236        103,023,459        1,519,881       22,178,669  

Cash

    88,327        98,404        22,381       15,737  

Cash pledged:

         

Futures contracts

    477,000        614,000        107,000       94,000  

Receivables:

         

Securities lending income — Affiliated

    2,034        6,187        28       5,011  

Variation margin on futures contracts

    19,467        25,131              4,475  

Capital shares sold

    75,328        14,750               

Dividends

    3,112,072        3,174,752        1,113,782       280,900  
 

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

    3,855,457,343        4,127,383,370        855,782,695       1,425,854,786  
 

 

 

    

 

 

    

 

 

   

 

 

 

LIABILITIES

         

Collateral on securities loaned, at value

    18,006,236        25,488,036        199,881       20,235,448  

Payables:

         

Variation margin on futures contracts

                  9,205        

Capital shares redeemed

    12,927                      

Investment advisory fees

    766,505        824,485        271,909       446,429  
 

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities

    18,785,668        26,312,521        480,995       20,681,877  
 

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETS

  $ 3,836,671,675      $ 4,101,070,849      $ 855,301,700     $ 1,405,172,909  
 

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETS CONSIST OF:

         

Paid-in capital

  $ 2,377,913,481      $ 3,127,019,433      $ 926,366,989     $ 986,839,251  

Accumulated earnings (loss)

    1,458,758,194        974,051,416        (71,065,289     418,333,658  
 

 

 

    

 

 

    

 

 

   

 

 

 

NET ASSETS

  $ 3,836,671,675      $ 4,101,070,849      $ 855,301,700     $ 1,405,172,909  
 

 

 

    

 

 

    

 

 

   

 

 

 

Shares outstanding

    42,200,000        39,700,000        6,400,000       16,750,000  
 

 

 

    

 

 

    

 

 

   

 

 

 

Net asset value

  $ 90.92      $ 103.30      $ 133.64     $ 83.89  
 

 

 

    

 

 

    

 

 

   

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited       Unlimited  
 

 

 

    

 

 

    

 

 

   

 

 

 

Par value

    None        None        None       None  
 

 

 

    

 

 

    

 

 

   

 

 

 

(a) Securities loaned, at value

  $ 17,688,038      $ 25,021,776      $ 194,408     $ 19,707,027  

(b) Investments, at cost — Unaffiliated

  $ 2,381,246,849      $ 3,104,360,065      $ 845,783,327     $ 1,148,188,226  

(c)  Investments, at cost — Affiliated

  $ 39,406,957      $ 80,405,598      $ 1,519,881     $ 22,170,475  

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

   45


 

Statements of Assets and Liabilities (unaudited) (continued)

October 31, 2021

 

   

iShares

U.S. Consumer

Staples ETF

    

iShares

U.S. Financial
Services ETF

    

iShares

U.S. Financials

ETF

    

iShares

U.S. Industrials

ETF

 

 

 

ASSETS

          

Investments in securities, at value (including securities on loan)(a):

          

Unaffiliated(b)

  $ 690,299,755      $ 2,603,890,256      $ 2,365,331,953      $ 1,644,668,585  

Affiliated(c)

    6,176,235        108,416,978        83,365,250        29,804,253  

Cash

    30,372        90,995        83,677        20,850  

Cash pledged:

          

Futures contracts

    105,000        420,000        418,000        89,000  

Receivables:

          

Securities lending income — Affiliated

    1,092        1,116        1,840        2,383  

Variation margin on futures contracts

    3,335                      1,573  

Dividends

    1,306,582        4,761,115        3,573,304        919,651  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    697,922,371        2,717,580,460        2,452,774,024        1,675,506,295  
 

 

 

    

 

 

    

 

 

    

 

 

 

LIABILITIES

          

Collateral on securities loaned, at value

    5,233,729        20,737,998        6,649,577        28,327,974  

Payables:

          

Investments purchased

                         441  

Variation margin on futures contracts

           39,368        48,000         

Investment advisory fees

    226,828        869,881        780,372        542,919  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    5,460,557        21,647,247        7,477,949        28,871,334  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 692,461,814      $ 2,695,933,213      $ 2,445,296,075      $ 1,646,634,961  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS CONSIST OF:

          

Paid-in capital

  $ 585,939,501      $ 2,255,016,358      $ 1,995,081,256      $ 1,276,032,236  

Accumulated earnings

    106,522,313        440,916,855        450,214,819        370,602,725  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 692,461,814      $ 2,695,933,213      $ 2,445,296,075      $ 1,646,634,961  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    3,750,000        13,500,000        27,400,000        14,800,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 184.66      $ 199.70      $ 89.24      $ 111.26  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited        Unlimited  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

    None        None        None        None  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a) Securities loaned, at value

  $ 5,099,224      $ 20,051,983      $ 6,478,697      $ 27,154,907  

(b) Investments, at cost — Unaffiliated

  $ 678,424,058      $ 2,167,510,816      $ 2,031,289,079      $ 1,372,335,097  

(c)  Investments, at cost — Affiliated

  $ 6,176,215      $ 87,323,351      $ 70,681,516      $ 29,802,557  

See notes to financial statements.

 

 

46  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


 

Statements of Operations (unaudited)

Six Months Ended October 31, 2021

 

   

iShares

MSCI KLD 400
Social ETF

   

iShares

MSCI USA

ESG Select

ETF

   

iShares

U.S. Basic
Materials ETF

   

iShares

U.S. Consumer
Discretionary

ETF

 

 

 

INVESTMENT INCOME

       

Dividends — Unaffiliated

  $ 22,478,834     $ 23,740,712     $ 9,374,766     $ 5,679,486  

Dividends — Affiliated

    204,295       539,112       40       46  

Securities lending income — Affiliated — net

    13,145       42,298       611       34,960  

Foreign taxes withheld

    (11                  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    22,696,263       24,322,122       9,375,417       5,714,492  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    4,233,723       4,429,799       1,934,138       2,845,757  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    4,233,723       4,429,799       1,934,138       2,845,757  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    18,462,540       19,892,323       7,441,279       2,868,735  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated

    (828,464     (12,322,655     4,795,216       (32,300,709

Investments — Affiliated

    6,460       (42,948           740  

In-kind redemptions — Unaffiliated

    72,113,038       96,381,164       64,509,562       274,010,003  

In-kind redemptions — Affiliated

    542,923       347,908              

Futures contracts

    522,753       938,990       (145,697     142,922  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain

    72,356,710       85,302,459       69,159,081       241,852,956  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated

    356,314,849       316,405,142       (73,595,785     (142,397,645

Investments — Affiliated

    2,622,285       7,886,392             2,297  

Futures contracts

    261,954       (60,172     31,821       (94,454
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    359,199,088       324,231,362       (73,563,964     (142,489,802
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    431,555,798       409,533,821       (4,404,883     99,363,154  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 450,018,338     $ 429,426,144     $ 3,036,396     $ 102,231,889  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

  47


 

Statements of Operations (unaudited) (continued)

Six Months Ended October 31, 2021

 

   

iShares

U.S. Consumer
Staples ETF

   

iShares

U.S. Financial

Services ETF

   

iShares

U.S. Financials
ETF

   

iShares

U.S. Industrials

ETF

 

 

 

INVESTMENT INCOME

       

Dividends — Unaffiliated

  $ 7,019,937     $ 20,971,749     $ 18,857,426     $ 10,506,883  

Dividends — Affiliated

    28       682,619       398,742       77  

Securities lending income — Affiliated — net

    4,098       6,822       5,356       19,847  

Foreign taxes withheld

          (4,241     (2,506     (1,003
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    7,024,063       21,656,949       19,259,018       10,525,804  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    1,377,093       4,750,573       4,622,380       3,443,150  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    1,377,093       4,750,573       4,622,380       3,443,150  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    5,646,970       16,906,376       14,636,638       7,082,654  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated

    (12,991,172     (2,919,122     (13,981,889     (50,149,879

Investments — Affiliated

    179       (26,559     (40,778     (1,643

In-kind redemptions — Unaffiliated

    127,743,960       37,339,300       180,869,747       185,063,211  

In-kind redemptions — Affiliated

          1,487,616       4,075,532        

Futures contracts

    20,418       273,948       390,289       103,622  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain

    114,773,385       36,155,183       171,312,901       135,015,311  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated

    (107,004,108     157,831,948       65,470,236       (121,683,622

Investments — Affiliated

    (135     7,699,471       3,401,187       1,665  

Futures contracts

    59,233       284,547       79,371       (26,953
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    (106,945,010     165,815,966       68,950,794       (121,708,910
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    7,828,375       201,971,149       240,263,695       13,306,401  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 13,475,345     $ 218,877,525     $ 254,900,333     $ 20,389,055  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

48  

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Statements of Changes in Net Assets

 

    iShares
MSCI KLD 400 Social ETF
          iShares
MSCI USA ESG Select ETF
 
   

Six Months Ended
10/31/21

(unaudited)

   

Year Ended

04/30/21

         

Six Months Ended
10/31/21

(unaudited)

   

Year Ended

04/30/21

 

 

 

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS

         

Net investment income

  $ 18,462,540     $ 30,212,755       $ 19,892,323     $ 26,983,543  

Net realized gain

    72,356,710       83,097,575         85,302,459       321,939,109  

Net change in unrealized appreciation (depreciation)

    359,199,088       805,378,714         324,231,362       481,849,819  
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets resulting from operations

    450,018,338       918,689,044         429,426,144       830,772,471  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (17,158,413     (29,576,320       (18,538,691     (25,919,845
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Net increase in net assets derived from capital share transactions

    294,346,364       426,528,979         632,252,439       964,022,901  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

         

Total increase in net assets

    727,206,289       1,315,641,703         1,043,139,892       1,768,875,527  

Beginning of period

    3,109,465,386       1,793,823,683         3,057,930,957       1,289,055,430  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 3,836,671,675     $ 3,109,465,386       $ 4,101,070,849     $ 3,057,930,957  
 

 

 

   

 

 

     

 

 

   

 

 

 

(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

  49


 

Statements of Changes in Net Assets (continued)

 

    iShares
U.S. Basic Materials ETF
          iShares
U.S. Consumer Discretionary ETF
 
    Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
          Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS

         

Net investment income

  $ 7,441,279     $ 8,777,570       $ 2,868,735     $ 7,656,646  

Net realized gain

    69,159,081       87,339,085         241,852,956       56,113,667  

Net change in unrealized appreciation (depreciation)

    (73,563,964     164,688,371         (142,489,802     416,301,746  
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets resulting from operations

    3,036,396       260,805,026         102,231,889       480,072,059  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (7,055,440     (8,165,209       (3,597,084     (7,416,213
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Net increase (decrease) in net assets derived from capital share transactions

    79,837,241       270,837,091         (277,127,827     312,839,562  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

         

Total increase (decrease) in net assets

    75,818,197       523,476,908         (178,493,022     785,495,408  

Beginning of period

    779,483,503       256,006,595         1,583,665,931       798,170,523  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 855,301,700     $ 779,483,503       $ 1,405,172,909     $ 1,583,665,931  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

50  

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Statements of Changes in Net Assets (continued)

 

    iShares
U.S. Consumer Staples ETF
           iShares
U.S. Financial Services ETF
 
    Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
           Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 5,646,970     $ 10,212,175        $ 16,906,376     $ 26,019,551  

Net realized gain

    114,773,385       98,617,294          36,155,183       117,687,973  

Net change in unrealized appreciation (depreciation)

    (106,945,010     159,057,829          165,815,966       439,809,902  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets resulting from operations

    13,475,345       267,887,298          218,877,525       583,517,426  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (4,816,712     (10,088,558        (14,757,149     (25,484,339
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    (7,744,911     (37,805,389        856,487,893       212,125,779  
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase in net assets

    913,722       219,993,351          1,060,608,269       770,158,866  

Beginning of period

    691,548,092       471,554,741          1,635,324,944       865,166,078  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 692,461,814     $ 691,548,092        $ 2,695,933,213     $ 1,635,324,944  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

  51


 

Statements of Changes in Net Assets (continued)

 

    iShares
U.S. Financials ETF
           iShares
U.S. Industrials ETF
 
    Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
           Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 14,636,638     $ 25,420,743        $ 7,082,654     $ 10,675,723  

Net realized gain (loss)

    171,312,901       48,587,244          135,015,311       (3,027,516

Net change in unrealized appreciation (depreciation)

    68,950,794       558,468,276          (121,708,910     492,579,101  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets resulting from operations

    254,900,333       632,476,263          20,389,055       500,227,308  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (15,724,378     (24,797,842        (7,123,853     (10,838,019
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    (147,082,174     512,289,078          (64,590,787     525,723,003  
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase (decrease) in net assets

    92,093,781       1,119,967,499          (51,325,585     1,015,112,292  

Beginning of period

    2,353,202,294       1,233,234,795          1,697,960,546       682,848,254  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 2,445,296,075     $ 2,353,202,294        $ 1,646,634,961     $ 1,697,960,546  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

52  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares MSCI KLD 400 Social ETF  
   

Six Months Ended
10/31/21
(unaudited)
 
 
 
   
Year Ended
04/30/21
 
(a)  
   
Year Ended
04/30/20
 
(a)  
   
Year Ended
04/30/19
 
(a)  
   
Year Ended
04/30/18
 
(a)  
   
Year Ended
04/30/17
 
(a) 

 

 

Net asset value, beginning of period

  $ 80.24     $ 55.03     $ 54.88     $ 49.07     $ 44.01     $ 38.22  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

    0.46       0.86       0.90       0.83       0.68       0.61  

Net realized and unrealized gain(c)

    10.65       25.19       0.14       5.82       5.01       5.77  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase from investment operations

    11.11       26.05       1.04       6.65       5.69       6.38  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.43     (0.84     (0.89     (0.84     (0.63     (0.59
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.43     (0.84     (0.89     (0.84     (0.63     (0.59
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 90.92     $ 80.24     $ 55.03     $ 54.88     $ 49.07     $ 44.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    13.88 %(f)       47.69     1.95     13.70     12.99     16.83
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.25 %(g)       0.25     0.25     0.28     0.50     0.50
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    0.25 %(g)       0.25     0.25     0.25     0.48     0.50
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1.09 %(g)       1.27     1.61     1.61     1.43     1.49
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 3,836,672     $ 3,109,465     $ 1,793,824     $ 1,415,953     $ 1,035,423     $ 822,945  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    2 %(f)       5     6     13     11     10
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b) 

Based on average shares outstanding.

(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)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f)

Not annualized.

(g) 

Annualized.

(h)

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T S

  53


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares MSCI USA ESG Select ETF  
   

Six Months Ended
10/31/21
(unaudited)
 
 
 
   
Year Ended
04/30/21
 
(a)  
   
Year Ended
04/30/20
 
(a)  
   
Year Ended
04/30/19
 
(a)  
   
Year Ended
04/30/18
 
(a)  
   
Year Ended
04/30/17
 
(a)  

 

 

Net asset value, beginning of period

  $ 92.11     $ 61.68     $ 61.08     $ 55.42     $ 49.86     $ 42.56  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

    0.55       1.03       1.00       0.98       0.84       0.71  

Net realized and unrealized gain(c)

    11.15       30.38       0.65       5.62       5.50       7.28  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase from investment operations

    11.70       31.41       1.65       6.60       6.34       7.99  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.51     (0.98     (1.05     (0.94     (0.78     (0.69
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.51     (0.98     (1.05     (0.94     (0.78     (0.69
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 103.30     $ 92.11     $ 61.68     $ 61.08     $ 55.42     $ 49.86  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    12.73 %(f)       51.29     2.76     12.07     12.76     18.92
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.25 %(g)       0.25     0.25     0.28     0.50     0.50
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

    0.25 %(g)       0.25     0.25     0.25     0.48     0.50
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1.12 %(g)       1.31     1.61     1.71     1.56     1.53
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 4,101,071     $ 3,057,931     $ 1,289,055     $ 1,001,715     $ 681,607     $ 528,509  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    9 %(f)       27     13     21     13     19
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b) 

Based on average shares outstanding.

(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)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h)

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

54  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Basic Materials ETF  
    Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
     Year Ended
04/30/20
     Year Ended
04/30/19
     Year Ended
04/30/18
     Year Ended
04/30/17
 

 

 

Net asset value, beginning of period

  $ 131.01     $ 81.27      $ 94.03      $ 97.37      $ 89.37      $ 77.65  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    1.00       1.78        1.65        1.63        1.39        1.34  

Net realized and unrealized gain (loss)(b)

    2.59       49.62        (12.42      (3.49      8.16        11.62  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    3.59       51.40        (10.77      (1.86      9.55        12.96  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions(c)

               

From net investment income

    (0.96     (1.66      (1.99      (1.48      (1.55      (1.24
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions

    (0.96     (1.66      (1.99      (1.48      (1.55      (1.24
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 133.64     $ 131.01      $ 81.27      $ 94.03      $ 97.37      $ 89.37  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(d)

               

Based on net asset value

    2.76 %(e)       63.81      (11.59 )%       (1.89 )%       10.74      16.88
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

               

Total expenses

    0.39 %(f)       0.41      0.43      0.42      0.43      0.44
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    1.51 %(f)       1.64      1.83      1.71      1.44      1.62
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 855,302     $ 779,484      $ 256,007      $ 423,128      $ 632,934      $ 960,747  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(g)

    41 %(e)       28      11      28      6      13
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a)  

Based on average shares outstanding.

(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)  

Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (d) Where applicable, assumes the reinvestment of distributions.

(e)  

Not annualized.

(f)  Annualized.

(g)  

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  55


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Consumer Discretionary ETF  
   

Six Months Ended
10/31/21
(unaudited)
 
 
 
   
Year Ended
04/30/21
 
(a)  
   
Year Ended
04/30/20
 
(a)  
   
Year Ended
04/30/19
 
(a)  
   
Year Ended
04/30/18
 
(a)  
   
Year Ended
04/30/17
 
(a)  

 

 

Net asset value, beginning of period

  $ 78.01     $ 51.17     $ 54.31     $ 46.36     $ 41.31     $ 36.09  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

    0.16       0.44       0.52       0.40       0.45       0.38  

Net realized and unrealized gain (loss)(c)

    5.92       26.82       (3.11     7.94       5.03       5.24  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    6.08       27.26       (2.59     8.34       5.48       5.62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.20     (0.42     (0.55     (0.39     (0.43     (0.40
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.20     (0.42     (0.55     (0.39     (0.43     (0.40
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 83.89     $ 78.01     $ 51.17     $ 54.31     $ 46.36     $ 41.31  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    7.81 %(f)       53.48     (4.79 )%      18.09     13.35     15.71
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(g)       0.41     0.43     0.42     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    0.40 %(g)       0.67     0.96     0.81     1.04     1.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 1,405,173     $ 1,583,666     $ 798,171     $ 934,120     $ 741,682     $ 669,218  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    35 %(f)       20     31     15     10     8
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  

Per share amounts reflect a four-for-one stock split effective after the close of trading on December 4, 2020.

(b)  

Based on average shares outstanding.

(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)  

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e)  

Where applicable, assumes the reinvestment of distributions.

(f)  

Not annualized.

(g)  

Annualized.

(h)  

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

56  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Consumer Staples ETF  
    Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
    Year Ended
04/30/20
    Year Ended
04/30/19
    Year Ended
04/30/18
    Year Ended
04/30/17
 

 

 

Net asset value, beginning of period

  $ 181.99     $ 119.38     $ 123.43     $ 114.08     $ 119.04     $ 111.98  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    1.48       2.44       2.77       3.04       2.50       2.32  

Net realized and unrealized gain (loss)(b)

    2.47       62.57       (3.83     9.24       (5.24     7.66  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    3.95       65.01       (1.06     12.28       (2.74     9.98  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

           

From net investment income

    (1.28     (2.40     (2.99     (2.93     (2.22     (2.92
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (1.28     (2.40     (2.99     (2.93     (2.22     (2.92
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 184.66     $ 181.99     $ 119.38     $ 123.43     $ 114.08     $ 119.04  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    2.18 %(e)       54.87     (0.86 )%      10.95     (2.41 )%      9.04
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(f)       0.41     0.43     0.42     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1.61 %(f)       1.57     2.22     2.61     2.05     2.03
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 692,462     $ 691,548     $ 471,555     $ 469,043     $ 433,499     $ 720,184  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

    34 %(e)       4     5     4     7     7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  

Based on average shares outstanding.

(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)  

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)  

Where applicable, assumes the reinvestment of distributions.

(e)  

Not annualized.

(f)  

Annualized.

(g)  

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  57


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Financial Services ETF  
    Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
    Year Ended
04/30/20
    Year Ended
04/30/19
    Year Ended
04/30/18
    Year Ended
04/30/17
 

 

 

Net asset value, beginning of period

  $ 182.72     $ 115.36     $ 136.07     $ 130.98     $ 108.38     $ 85.36  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    1.33       2.52       2.58       2.17       1.73       1.47  

Net realized and unrealized gain (loss)(b)

    16.77       67.20       (20.69     5.12       22.56       22.88  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    18.10       69.72       (18.11     7.29       24.29       24.35  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

           

From net investment income

    (1.12     (2.36     (2.60     (2.20     (1.69     (1.33
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (1.12     (2.36     (2.60     (2.20     (1.69     (1.33
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 199.70     $ 182.72     $ 115.36     $ 136.07     $ 130.98     $ 108.38  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    9.94 %(e)       61.14     (13.46 )%      5.72     22.53     28.74
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(f)       0.41     0.42     0.42     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1.39 %(f)       1.85     1.90     1.68     1.40     1.49
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 2,695,933     $ 1,635,325     $ 865,166     $ 1,435,523     $ 1,643,780     $ 1,430,646  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

    2 %(e)       7     7     4     4     4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  

Based on average shares outstanding.

(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)  

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)  

Where applicable, assumes the reinvestment of distributions.

(e)  

Not annualized.

(f)  

Annualized.

(g)  

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

58  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Financials ETF  
   

Six Months Ended
10/31/21
(unaudited)
 
 
 
   
Year Ended
04/30/21
 
(a)  
   
Year Ended
04/30/20
 
(a)  
   
Year Ended
04/30/19
 
(a)  
   
Year Ended
04/30/18
 
(a)  
   
Year Ended
04/30/17
 
(a)  

 

 

Net asset value, beginning of period

  $ 80.18     $ 53.39     $ 62.97     $ 58.86     $ 51.90     $ 43.46  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

    0.52       1.09       1.17       1.04       0.91       0.82  

Net realized and unrealized gain (loss)(c)

    9.10       26.76       (9.55     4.16       6.95       8.46  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    9.62       27.85       (8.38     5.20       7.86       9.28  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.56     (1.06     (1.20     (1.09     (0.90     (0.84
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.56     (1.06     (1.20     (1.09     (0.90     (0.84
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 89.24     $ 80.18     $ 53.39     $ 62.97     $ 58.86     $ 51.90  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    12.06 %(f)       52.80     (13.47 )%      9.01     15.21     21.52
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(g)       0.41     0.42     0.42     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1.24 %(g)       1.72     1.85     1.75     1.59     1.70
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 2,445,296     $ 2,353,202     $ 1,233,235     $ 1,693,736     $ 2,295,315     $ 1,681,324  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    20 %(f)       9     6     8     6     6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)  

Per share amounts reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b)  

Based on average shares outstanding.

(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)  

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e)  

Where applicable, assumes the reinvestment of distributions.

(f)  

Not annualized.

(g)  

Annualized.

(h)  

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

  59


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Industrials ETF  
   

Six Months Ended
10/31/21
(unaudited)
 
 
 
   
Year Ended
04/30/21
 
(a)  
   
Year Ended
04/30/20
 
(a) 
   
Year Ended
04/30/19
 
(a) 
   
Year Ended
04/30/18
 
(a)  
   
Year Ended
04/30/17
 
(a) 

 

 

Net asset value, beginning of period

  $ 110.26     $ 68.98     $ 79.12     $ 70.80     $ 64.30     $ 54.33  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

    0.45       0.90       1.03       0.95       0.89       0.91  

Net realized and unrealized gain (loss)(c)

    1.01       41.28       (10.11     8.39       6.53       9.94  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    1.46       42.18       (9.08     9.34       7.42       10.85  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.46     (0.90     (1.06     (1.02     (0.92     (0.88
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.46     (0.90     (1.06     (1.02     (0.92     (0.88
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 111.26     $ 110.26     $ 68.98     $ 79.12     $ 70.80     $ 64.30  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    1.32 %(f)       61.51     (11.57 )%      13.34     11.57     20.13
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.39 %(g)       0.41     0.42     0.42     0.43     0.44
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    0.81 %(g)       0.99     1.32     1.29     1.27     1.55
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 1,646,635     $ 1,697,961     $ 682,848     $ 941,547     $ 1,033,654     $ 983,820  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    22 %(f)       5     4     5     7     10
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

60  

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Notes to Financial Statements (unaudited) 

 

1.   ORGANIZATION

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 is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

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

 

   
iShares ETF  

Diversification  

Classification  

 

MSCI KLD 400 Social

    Diversified    

MSCI USA ESG Select

    Diversified    

U.S. Basic Materials

    Non-diversified    

U.S. Consumer Discretionary(a)

    Diversified    

U.S. Consumer Staples(b)

    Non-diversified    

U.S. Financial Services

    Non-diversified    

U.S. Financials

    Diversified    

U.S. Industrials

    Diversified    

 

  (a) 

Formerly the iShares U.S. Consumer Services ETF.

 
  (b) 

Formerly the iShares U.S. Consumer Goods ETF.

 

2.   SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations 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. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its 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 October 31, 2021, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

Distributions: 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. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

 

O T E S   T O  I N A N C I A L  T A T E M E N T S

  61


Notes to Financial Statements (unaudited) (continued)

 

3.   INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. 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. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Equity investments traded on a recognized securities exchange are valued at that day’s 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.

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. 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 price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

   

Level 3 – Unobservable inputs 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 financial instruments).

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 judgment 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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.   SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 market 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 Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule 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, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “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, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

 

 
iShares ETF and Counterparty    
Market Value of
Securities on Loan
 
 
    
Cash Collateral
Received
 
(a)  
   
Non-Cash Collateral
Received
 
 
     Net Amount  

 

 

MSCI KLD 400 Social

         

BNP Paribas SA

  $ 5,820,284      $ 5,820,284     $      $  

BofA Securities, Inc.

    484,880        484,880               

Citigroup Global Markets, Inc.

    772,975        772,975               

Credit Suisse Securities (USA) LLC

    59,795        59,795               

Goldman Sachs & Co. LLC

    2,980,812        2,980,812               

J.P. Morgan Securities LLC

    2,117,623        2,117,623               

Morgan Stanley

    3,435,035        3,435,035               

RBC Capital Markets LLC

    40,560        40,560               

SG Americas Securities LLC

    1,941,765        1,941,765               

Virtu Americas LLC

    34,309        34,309               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 17,688,038      $ 17,688,038     $         —      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

MSCI USA ESG Select

         

BofA Securities, Inc.

  $ 4,482,550      $ 4,355,174     $      $ (127,376 )(b) 

Goldman Sachs & Co. LLC

    1,645,490        1,645,490               

J.P. Morgan Securities LLC

    9,258,201        9,258,201               

SG Americas Securities LLC

    9,635,535        9,635,535               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 25,021,776      $ 24,894,400     $      $ (127,376
 

 

 

    

 

 

   

 

 

    

 

 

 

U.S. Basic Materials

         

UBS AG

  $ 194,408      $ 194,408     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

U.S. Consumer Discretionary

         

Barclays Bank PLC

  $ 2,619,069      $ 2,619,069     $      $  

BNP Paribas SA

    4,412,188        4,412,188               

Goldman Sachs & Co. LLC

    5,011,099        5,011,099               

J.P. Morgan Securities LLC

    329,977        329,977               

Morgan Stanley

    7,272,113        7,272,113               

Wells Fargo Securities LLC

    62,581        62,581               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 19,707,027      $ 19,707,027     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

U.S. Consumer Staples

         

Barclays Bank PLC

  $ 359,792      $ 359,792     $      $  

BNP Paribas SA

    421,952        421,952               

BofA Securities, Inc.

    1,388,098        1,388,098               

Deutsche Bank Securities, Inc.

    22,435        22,435               

Goldman Sachs & Co. LLC

    1,662,487        1,662,487               

SG Americas Securities LLC

    932,640        932,640               

Virtu Americas LLC

    311,820        311,820               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 5,099,224      $ 5,099,224     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

 

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Notes to Financial Statements (unaudited) (continued)

 

iShares ETF and Counterparty    
Market Value of
Securities on Loan
 
 
    
Cash Collateral
Received
 
(a)  
   
Non-Cash Collateral
Received
 
 
     Net Amount  

U.S. Financial Services

         

Barclays Bank PLC

  $ 2,354,372      $ 2,354,372     $         —      $  

Barclays Capital, Inc.

    117,516        117,516               

BofA Securities, Inc.

    2,273,198        2,273,198               

Citigroup Global Markets, Inc.

    538,389        538,389               

Goldman Sachs & Co. LLC

    6,053,150        6,053,150               

J.P. Morgan Securities LLC

    2,442        2,442               

Morgan Stanley

    6,698,432        6,698,432               

UBS AG

    436,488        436,488               

Wells Fargo Securities LLC

    1,577,996        1,577,996               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 20,051,983      $ 20,051,983     $      $         —  
 

 

 

    

 

 

   

 

 

    

 

 

 

U.S. Financials

         

Barclays Bank PLC

  $ 605,542      $ 605,542     $      $  

Goldman Sachs & Co. LLC

    1,867,901        1,867,901               

Morgan Stanley

    3,945,433        3,945,433               

National Financial Services LLC

    59,821        59,821               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 6,478,697      $ 6,478,697     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

U.S. Industrials

         

Barclays Capital, Inc.

  $ 2,611,181      $ 2,611,181     $      $  

Citigroup Global Markets, Inc.

    774,921        774,921               

National Financial Services LLC

    151,023        151,023               

State Street Bank & Trust Co.

    943,125        943,125               

UBS Securities LLC

    22,195,069        22,195,069               

Virtu Americas LLC

    216,024        216,024               

Wells Fargo Bank N.A.

    62,613        62,613               

Wells Fargo Securities LLC

    200,951        200,951               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 27,154,907      $ 27,154,907     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (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) 

The market value of the loaned securities is determined as of October 31, 2021. Additional collateral is delivered to the Fund 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.

 

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent 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 market 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. Such losses are borne entirely by each Fund.

5.  DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk) .

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

6.  INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 KLD 400 Social

    0.25

MSCI USA ESG Select

    0.25  

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

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $10 billion

    0.4800

Over $10 billion, up to and including $20 billion

    0.4300  

Over $20 billion, up to and including $30 billion

    0.3800  

Over $30 billion, up to and including $40 billion

    0.3400  

Over $40 billion, up to and including $50 billion

    0.3300  

Over $50 billion, up to and including $60 billion

    0.3100  

Over $60 billion

    0.2945  

Prior to July 14, 2021, for its investment advisory services to each of the iShares U.S. Basic Materials, iShares U.S. Consumer Discretionary, iShares U.S. Consumer Staples, iShares U.S. Financial Services, iShares U.S. Financials and iShares U.S. Industrials ETFs, BFA was 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:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $10 billion

    0.48

Over $10 billion, up to and including $20 billion

    0.43  

Over $20 billion, up to and including $30 billion

    0.38  

Over $30 billion, up to and including $40 billion

    0.34  

Over $40 billion, up to and including $50 billion

    0.33  

Over $50 billion

    0.31  

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. 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 SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 77% of securities lending income (which excludes collateral investment fees) 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 that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement,

 

 

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Notes to Financial Statements (unaudited) (continued)

 

will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended October 31, 2021, the Funds paid BTC the following amounts for securities lending agent services:

 

   
iShares ETF   Fees Paid
to BTC
 

MSCI KLD 400 Social

  $ 5,627  

MSCI USA ESG Select

    16,539  

U.S. Basic Materials

    261  

U.S. Consumer Discretionary

    14,968  

U.S. Consumer Staples

    1,589  

U.S. Financial Services

    2,786  

U.S. Financials

    2,211  

U.S. Industrials

    7,838  

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: 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 six months ended October 31, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)
 

MSCI KLD 400 Social

  $ 18,005,841      $ 8,757,972      $ 237,987  

MSCI USA ESG Select

    98,889,844        70,109,326        (2,844,798

U.S. Basic Materials

    180,304,089        39,790,149        (3,047,846

U.S. Consumer Discretionary

    246,306,155        190,647,277        (25,303,122

U.S. Consumer Staples

    192,266,197        178,208,368        (7,110,532

U.S. Financial Services

    8,546,894        3,615,997        (1,071,931

U.S. Financials

    332,361,039        196,988,999        (8,559,967

U.S. Industrials

    316,046,161        142,216,494        (20,500,712

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 shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

7.  PURCHASES AND SALES

For the six months ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

     

iShares ETF

 

Purchases

 

    

Sales

 

 

MSCI KLD 400 Social

  $ 63,538,704      $ 65,905,331  

MSCI USA ESG Select

    329,040,828        329,550,766  

U.S. Basic Materials

    390,196,779        396,968,664  

U.S. Consumer Discretionary

    498,500,924        499,521,291  

U.S. Consumer Staples

    235,261,116        235,542,532  

U.S. Financial Services

    40,729,683        39,461,780  

U.S. Financials

    459,064,469        471,855,606  

U.S. Industrials

    387,365,862        386,292,372  

 

 

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Notes to Financial Statements (unaudited) (continued)

 

For the six months ended October 31, 2021, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases
    

In-kind

Sales

 

MSCI KLD 400 Social

  $ 419,209,009      $ 125,707,117  

MSCI USA ESG Select

    965,435,799        333,864,270  

U.S. Basic Materials

    593,357,490        507,335,652  

U.S. Consumer Discretionary

    452,312,183        728,704,777  

U.S. Consumer Staples

    241,466,143        248,949,822  

U.S. Financial Services

    982,983,147        131,377,135  

U.S. Financials

    971,747,156        1,107,024,227  

U.S. Industrials

    406,462,287        469,428,245  

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 each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of April 30, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

   

iShares ETF

 

Non-Expiring

 

MSCI KLD 400 Social

  $ 41,012,536  

MSCI USA ESG Select

    49,677,436  

U.S. Basic Materials

    128,356,659  

U.S. Consumer Discretionary

    66,681,070  

U.S. Consumer Staples

    20,394,671  

U.S. Financial Services

    51,264,378  

U.S. Financials

    64,307,667  

U.S. Industrials

    31,473,020  

As of October 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

         
iShares ETF   Tax Cost      Gross
Unrealized
Appreciation
     Gross
Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 

MSCI KLD 400 Social

  $ 2,427,989,773      $ 1,457,537,091      $ (33,551,905   $ 1,423,985,186  

MSCI USA ESG Select

    3,188,255,012        960,561,557        (25,033,151     935,528,406  

U.S. Basic Materials

    867,732,412        41,373,911        (54,474,797     (13,100,886

U.S. Consumer Discretionary

    1,182,008,074        266,122,463        (22,657,470     243,464,993  

U.S. Consumer Staples

    686,402,356        45,989,274        (35,830,055     10,159,219  

U.S. Financial Services

    2,260,995,994        470,802,935        (19,122,968     451,679,967  

U.S. Financials

    2,105,270,955        363,613,048        (19,857,767     343,755,281  

U.S. Industrials

    1,407,249,751        317,095,874        (49,795,430     267,300,444  

9.  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. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. 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.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: 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.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

10.  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.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Transactions in capital shares were as follows:

 

 

 
    Six Months Ended
10/31/21
    

Year Ended

04/30/21

 
iShares ETF   Shares      Amount      Shares    Amount  

 

 

MSCI KLD 400 Social

          

Shares sold

    4,950,000      $ 420,408,396      9,250,000(a)    $ 643,488,005  

Shares redeemed

    (1,500,000      (126,062,032    (3,100,000)(a)      (216,959,026
 

 

 

    

 

 

    

 

  

 

 

 

Net increase

    3,450,000      $ 294,346,364      6,150,000    $ 426,528,979  
 

 

 

    

 

 

    

 

  

 

 

 

MSCI USA ESG Select

          

Shares sold

    9,950,000      $ 967,556,389      22,250,000(a)    $ 1,797,422,226  

Shares redeemed

    (3,450,000      (335,303,950    (9,950,000)(a)      (833,399,325
 

 

 

    

 

 

    

 

  

 

 

 

Net increase

    6,500,000      $ 632,252,439      12,300,000    $ 964,022,901  
 

 

 

    

 

 

    

 

  

 

 

 

U.S. Basic Materials

          

Shares sold

    4,450,000      $ 594,906,279      8,500,000    $ 923,891,071  

Shares redeemed

    (4,000,000      (515,069,038    (5,700,000)      (653,053,980
 

 

 

    

 

 

    

 

  

 

 

 

Net increase

    450,000      $ 79,837,241      2,800,000    $ 270,837,091  
 

 

 

    

 

 

    

 

  

 

 

 

U.S. Consumer Discretionary

          

Shares sold

    5,750,000      $ 453,121,874      8,150,000(b)    $ 530,844,571  

Shares redeemed

    (9,300,000      (730,249,701    (3,450,000)(b)      (218,005,009
 

 

 

    

 

 

    

 

  

 

 

 

Net increase (decrease)

    (3,550,000    $ (277,127,827    4,700,000    $ 312,839,562  
 

 

 

    

 

 

    

 

  

 

 

 

U.S. Consumer Staples

          

Shares sold

    1,300,000      $ 241,992,673      1,800,000    $ 275,702,671  

Shares redeemed

    (1,350,000      (249,737,584    (1,950,000)      (313,508,060
 

 

 

    

 

 

    

 

  

 

 

 

Net decrease

    (50,000    $ (7,744,911    (150,000)    $ (37,805,389
 

 

 

    

 

 

    

 

  

 

 

 

U.S. Financial Services

          

Shares sold

    5,250,000      $ 988,542,815      11,200,000    $ 1,462,505,864  

Shares redeemed

    (700,000      (132,054,922    (9,750,000)      (1,250,380,085
 

 

 

    

 

 

    

 

  

 

 

 

Net increase

    4,550,000      $ 856,487,893      1,450,000    $ 212,125,779  
 

 

 

    

 

 

    

 

  

 

 

 

U.S. Financials

          

Shares sold

    11,750,000      $ 977,067,157      25,700,000(a)    $ 1,648,032,759  

Shares redeemed

    (13,700,000      (1,124,149,331    (19,450,000)(a)      (1,135,743,681
 

 

 

    

 

 

    

 

  

 

 

 

Net increase (decrease)

    (1,950,000    $ (147,082,174    6,250,000    $ 512,289,078  
 

 

 

    

 

 

    

 

  

 

 

 

U.S. Industrials

          

Shares sold

    3,650,000      $ 407,635,381      6,050,000(a)    $ 572,947,274  

Shares redeemed

    (4,250,000      (472,226,168    (550,000)(a)      (47,224,271
 

 

 

    

 

 

    

 

  

 

 

 

Net increase (decrease)

    (600,000    $ (64,590,787    5,500,000    $ 525,723,003  
 

 

 

    

 

 

    

 

  

 

 

 

 

  (a)   

Share transactions reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

  (b)   

Share transactions reflect a four-for-one stock split effective after the close of trading on December 4, 2020.

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

11.  LEGAL PROCEEDINGS

Certain iShares funds (the “Impacted Funds”), along with thousands of other former shareholders of Tribune Company (“Tribune”), were named as defendants in one or more lawsuits (the “Litigation”) arising out of Tribune’s 2007 leveraged buyout transaction (“LBO”). The Litigation seeks to “claw back” from former Tribune shareholders, including the Impacted Funds, proceeds received in connection with the LBO. The iShares U.S. Consumer Services ETF and iShares MSCI KLD 400 Social ETF received proceeds of $336,974 and $23,018, respectively, in the LBO. The claims that were originally brought against the Impacted Funds were dismissed but are currently subject

 

 

 

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Notes to Financial Statements (unaudited) (continued)

 

to an appeal which remains pending. The outcome of this appeal could result in new claims being brought against the Impacted Funds and/or previously dismissed claims being revived and subject to continuing litigation. The Impacted Funds intend to vigorously defend the Litigation.

12.  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 additional disclosure in the financial statements.

 

 

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Board Review and Approval of Investment Advisory Contract

 

iShares MSCI KLD 400 Social ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares MSCI USA ESG Select ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue,

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares U.S. Basic Materials ETF, iShares U.S. Consumer Discretionary ETF, iShares U.S. Consumer Staples ETF, iShares U.S. Financial Services ETF, iShares U.S. Financials ETF (each the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2020, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, 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 assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares U.S. Industrials ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and

 

 

O A R D   R E V I E W   A N D   A P P R O V A L   O F   I N V E S T M E N T   A D V I S O R Y   C O N T R A C T

  77


Board Review and Approval of Investment Advisory Contract  (continued)

 

the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, 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 assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

 

 

 

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Supplemental Information (unaudited)

 

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being 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 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.

October 31, 2021

 

     Total Cumulative Distributions
for the Fiscal Year-to-Date
     % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
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 KLD 400 Social(a)

  $ 0.422763     $     $ 0.004525     $ 0.427288        99         1     100

MSCI USA ESG Select(a)

    0.500476             0.005511       0.505987        99             1       100  

U.S. Consumer Discretionary(a)

    0.196486             0.000004       0.196490        100             0 (b)      100  

U.S. Financials(a)

    0.481564             0.080267       0.561831        86             14       100  

 

  (a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 
  (b) 

Rounds to less than 1%.

 

 

 

U P P L E M E N T A L   I N F O R M A T I O N

  79


General Information

 

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity
NVS   Non-Voting Shares

 

 

L O S S A R Y   O F   T E R M S   U S E D   I N   T H I S   R E P O R T

  81


 

Want to know more?

iShares.com    |     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 FTSE Russell, MSCI Inc., or S&P Dow Jones Indices LLC, nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above

©2021 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-SAR-402-1021

 

 

 

 

LOGO

   LOGO


 

LOGO

  OCTOBER 31, 2021

 

  

2021 Semi-Annual Report

(Unaudited)

 

 

iShares Trust

 

·  

iShares Core Dividend Growth ETF | DGRO | NYSE Arca

 

·  

iShares Core High Dividend ETF | HDV | NYSE Arca

 

·  

iShares International Select Dividend ETF | IDV | Cboe BZX

 

·  

iShares Select Dividend ETF | DVY | NASDAQ

 

·  

iShares U.S. Dividend and Buyback ETF | DIVB | Cboe BZX


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.

Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021

 

 
    

 

6-Month

 

   

 

12-Month

 

 

 

U.S. large cap equities (S&P 500 Index)

 

    10.91%       42.91%  

 

U.S. small cap equities (Russell 2000 Index)

 

      1.85          50.80     

 

International equities (MSCI Europe, Australasia, Far East Index)

 

      4.14          34.18     

 

Emerging market equities (MSCI Emerging Markets Index)

 

    (4.87)         16.96     

 

3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)

 

      0.01            0.06     

 

U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)

 

      1.59          (4.77)    

 

U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)

 

      1.06          (0.48)    

 

Tax-exempt municipal bonds (S&P Municipal Bond Index)

 

      0.33            2.76     

 

U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

 

      2.36          10.53     

 

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

2  

H I S  A G E   I S   N O T  A R T   O F  O U R  U N D  E P O R T


Table of Contents

 

     Page  

The Markets in Review

    2  

Fund Summary

    4  

About Fund Performance

    9  

Shareholder Expenses

    9  

Schedules of Investments

    10  

Financial Statements

 

Statements of Assets and Liabilities

    32  

Statements of Operations

    34  

Statements of Changes in Net Assets

    36  

Financial Highlights

    39  

Notes to Financial Statements

    44  

Board Review and Approval of Investment Advisory Contract

    52  

Supplemental Information

    58  

General Information

    59  

Glossary of Terms Used in this Report

    60  

 

 

      


Fund Summary  as of October 31, 2021    iShares® Core Dividend Growth ETF

 

Investment Objective

The iShares Core Dividend Growth ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends, as represented by the Morningstar U.S. Dividend Growth IndexSM (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.

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
     6 Months     1 Year     5 Years     Since
Inception
    1 Year     5 Years     Since
Inception
 

Fund NAV

    7.59     39.48     17.04     13.35     39.48     119.60     152.56

Fund Market

    7.52       39.36       17.03       13.35       39.36       119.56       152.59  

Index

    7.60       39.58       17.12       13.42       39.58       120.41       153.61  

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

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 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $        1,000.00          $        1,075.90          $        0.42               $        1,000.00          $        1,024.80          $        0.41          0.08

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector   Percent of   
Total Investments(a)
 

Financials

    20.1%  

Information Technology

    19.5     

Health Care

    16.6     

Industrials

    12.2     

Consumer Staples

    9.3     

Consumer Discretionary

    7.7     

Utilities

    7.1     

Communication Services

    4.2     

Materials

    3.2     

Energy

    0.1     

 

  (a)

Excludes money market funds.

 

 

TEN LARGEST HOLDINGS

 

   
Security   Percent of   
Total Investments(a)
 

Microsoft Corp.

    3.3%  

JPMorgan Chase & Co.

    2.9     

Apple Inc.

    2.8     

Verizon Communications Inc.

    2.6     

Johnson & Johnson

    2.6     

Procter & Gamble Co. (The)

    2.6     

Pfizer Inc.

    2.5     

Home Depot Inc. (The)

    2.4     

Merck & Co. Inc.

    2.4     

Bank of America Corp.

    1.9     
 

 

 

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Fund Summary  as of October 31, 2021     iShares® Core High Dividend ETF

 

Investment Objective

The iShares Core High Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities, as represented by the Morningstar Dividend Yield Focus IndexSM (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.

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
     6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

    4.59     31.03     8.29     10.31     31.03     48.94     166.68

Fund Market

    4.61       31.01       8.29       10.30       31.01       48.95       166.64  

Index

    4.61       31.15       8.38       10.50       31.15       49.51       171.38  

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 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
  $        1,000.00          $        1,045.90          $        0.41               $        1,000.00          $        1,024.80          $        0.41          0.08

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   
Sector   Percent of   
Total Investments(a)
 

Health Care

    20.6%  

Energy

    19.0     

Consumer Staples

    16.4     

Communication Services

    12.7     

Information Technology

    9.3     

Utilities

    8.0     

Financials

    5.9     

Industrials

    4.8     

Consumer Discretionary

    2.9     

Materials

    0.4     

 

  (a) 

Excludes money market funds.

 

 

TEN LARGEST HOLDINGS

 

   
Security   Percent of   
Total Investments(a)
 

Exxon Mobil Corp.

    9.4%  

AT&T Inc.

    7.2     

Chevron Corp.

    6.6     

Johnson & Johnson

    5.6     

Verizon Communications Inc.

    5.3     

AbbVie Inc.

    5.1     

Procter & Gamble Co. (The)

    4.5     

Merck & Co. Inc.

    4.1     

Philip Morris International Inc.

    3.6     

Coca-Cola Co. (The)

    3.5     
 

 

 

U N D    U M M A R Y

  5


Fund Summary as of October 31, 2021    iShares® International Select Dividend ETF

 

Investment Objective

The iShares International Select Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets, as represented by the Dow Jones EPAC Select Dividend IndexTM (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.

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
     6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

    (0.68 )%      35.98     7.13     5.16     35.98     41.14     65.44

Fund Market

    (0.46     36.00       7.16       5.27       36.00       41.34       67.17  

Index

    (0.78     35.11       7.16       5.25       35.11       41.34       66.86  

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 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $        1,000.00          $        993.20          $        2.66               $        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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

   
Sector   Percent of   
Total Investments(a)
 

Financials

    31.8%  

Utilities

    21.2     

Materials

    10.4     

Energy

    7.7     

Communication Services

    7.6     

Industrials

    6.1     

Real Estate

    5.3     

Consumer Staples

    5.0     

Consumer Discretionary

    2.3     

Health Care

    2.2     

Information Technology

    0.4     

 

  (a)

  Excludes money market funds.

 

TEN LARGEST GEOGRAPHIC ALLOCATION

   
Country/Geographic Region   Percent of   
Total Investments(a)
 

United Kingdom

    14.6%  

Australia

    11.5     

Canada

    11.0     

Hong Kong

    10.1     

Spain

    9.3     

Italy

    7.6     

South Korea

    7.5     

France

    5.4     

Switzerland

    4.5     

Japan

    4.5     
 

 

 

6  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Fund Summary as of October 31, 2021    iShares® Select Dividend ETF

 

Investment Objective

The iShares Select Dividend ETF (the “Fund”) seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities, as represented by the Dow Jones U.S. Select Dividend IndexTM (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.

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
     6 Months     1 Year     5 Years     10 Years     1 Year     5 Years     10 Years  

Fund NAV

    1.40     47.29     10.89     12.34     47.29     67.68     220.13

Fund Market

    1.50       47.15       10.89       12.34       47.15       67.68       220.04  

Index

    1.55       47.99       11.33       12.76       47.99       71.05       232.46  

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 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $        1,000.00          $        1,014.00          $1    1.93               $        1,000.00          $    11,023.30          $        1.94          0.38

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

   
Sector   Percent of   
Total Investments(a)
 

Utilities

    26.3%  

Financials

    23.7     

Energy

    9.3     

Consumer Staples

    8.2     

Materials

    6.8     

Communication Services

    6.8     

Information Technology

    5.5     

Consumer Discretionary

    5.1     

Health Care

    4.3     

Industrials

    4.0     

 

  (a) 

Excludes money market funds.

 

 

TEN LARGEST HOLDINGS

   
Security   Percent of   
Total Investments(a)
 

ONEOK Inc.

    2.8%  

Altria Group Inc.

    2.1     

Exxon Mobil Corp.

    2.0     

PPL Corp.

    1.9     

Prudential Financial Inc.

    1.8     

AT&T Inc.

    1.8     

Philip Morris International Inc.

    1.8     

Pfizer Inc.

    1.7     

International Business Machines Corp.

    1.6     

Edison International

    1.6     
 

 

 

U N D    U M M A R Y

  7


Fund Summary as of October 31, 2021    iShares® U.S. Dividend and Buyback ETF

 

Investment Objective

The iShares U.S. Dividend and Buyback ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. stocks with a history of dividend payments and/or share buybacks, as represented by the Morningstar US Dividend and Buyback IndexSM (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.

Performance

 

          Average Annual Total Returns     Cumulative Total Returns  
     6 Months     1 Year     Since
Inception
    1 Year     Since
Inception
 

Fund NAV

    8.60     51.28     16.00     51.28     80.65

Fund Market

    8.62       51.80       16.01       51.80       80.68  

Index

    8.74       51.73       16.33       51.73       82.58  

The inception date of the Fund was 11/7/17. The first day of secondary market trading was 11/9/17.

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 9 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
  $        1,000.00          $        1,086.00          $        1.31               $        1,000.00          $        1,023.90          $        1.28          0.25

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 9 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

   
Sector   Percent of   
Total Investments(a)
 

Information Technology

    23.2%  

Financials

    21.7     

Health Care

    12.6     

Communication Services

    8.9     

Consumer Staples

    7.7     

Industrials

    7.5     

Consumer Discretionary

    7.1     

Energy

    5.6     

Materials

    2.5     

Utilities

    1.8     

Real Estate

    1.4     

 

  (a) 

Excludes money market funds.

 

TEN LARGEST HOLDINGS

   
Security   Percent of   
Total Investments(a)
 

Microsoft Corp.

    4.7%  

Apple Inc.

    4.6     

JPMorgan Chase & Co.

    3.0     

Bank of America Corp.

    2.3     

Exxon Mobil Corp.

    1.9     

Procter & Gamble Co. (The)

    1.8     

Berkshire Hathaway Inc., Class B

    1.8     

AT&T Inc.

    1.8     

Alphabet Inc., Class A

    1.7     

Intel Corp.

    1.7     
 

 

 

8  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at 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. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined by using the midpoint between the highest bid and the lowest ask 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. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

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

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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 and other fees 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.

 

 

B O U T    U N D    E R F O  R M A N C E / S H A R E H O L D E R    X P E N S E S

  9


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 2.7%  

BWX Technologies Inc.

    90,110     $ 5,112,841  

General Dynamics Corp.

    342,368       69,415,112  

HEICO Corp.

    4,619       643,843  

HEICO Corp., Class A

    6,984       877,749  

Huntington Ingalls Industries Inc.

    59,136       11,988,641  

L3Harris Technologies Inc.

    231,991       53,483,205  

Lockheed Martin Corp.

    464,432       154,340,042  

Northrop Grumman Corp.

    167,033       59,667,528  

Raytheon Technologies Corp.

    2,393,381       212,675,836  
   

 

 

 
          568,204,797  
Air Freight & Logistics — 1.1%  

CH Robinson Worldwide Inc.

    195,851       18,995,588  

Expeditors International of Washington Inc.

    101,822       12,550,580  

United Parcel Service Inc., Class B

    973,315       207,773,553  
   

 

 

 
      239,319,721  
Auto Components — 0.1%  

Gentex Corp.

    240,787       8,521,452  

LCI Industries

    44,882       6,267,322  
   

 

 

 
      14,788,774  
Automobiles — 0.0%  

Thor Industries Inc.

    52,928       5,396,539  
   

 

 

 
Banks — 9.7%  

Atlantic Union Bankshares Corp.

    162,473       5,827,907  

Bank of America Corp.

    8,543,872       408,226,204  

Bank of Hawaii Corp.

    90,550       7,651,475  

Bank OZK

    215,725       9,636,436  

BOK Financial Corp.

    48,890       4,946,201  

Cadence Bank

    102,960       2,987,899  

Cathay General Bancorp

    150,442       6,347,148  

Citigroup Inc.

    3,863,449       267,196,133  

Commerce Bancshares Inc.

    103,178       7,275,081  

Community Bank System Inc.

    53,253       3,816,643  

Cullen/Frost Bankers Inc.

    97,172       12,583,774  

CVB Financial Corp.

    298,724       5,980,454  

First Financial Bankshares Inc.

    122,505       6,213,454  

First Republic Bank/CA

    50,385       10,899,787  

Fulton Financial Corp.

    379,614       6,111,785  

Glacier Bancorp. Inc.

    153,064       8,462,909  

Hilltop Holdings Inc.

    63,662       2,256,181  

Home BancShares Inc./AR

    253,968       6,034,280  

Independent Bank Corp.

    34,417       2,908,237  

Independent Bank Group Inc.

    47,907       3,463,197  

JPMorgan Chase & Co.

    3,640,452       618,476,390  

PNC Financial Services Group Inc. (The)

    711,509       150,149,744  

Popular Inc.

    126,585       10,309,082  

Prosperity Bancshares Inc.

    171,623       12,924,928  

Regions Financial Corp.

    1,967,125       46,581,520  

ServisFirst Bancshares Inc.

    35,138       2,821,933  

Simmons First National Corp., Class A

    180,133       5,384,175  

South State Corp.

    132,902       10,378,317  

Synovus Financial Corp.

    307,974       14,348,509  

Truist Financial Corp.

    2,978,412       189,039,810  

U.S. Bancorp

    2,642,027       159,499,170  

UMB Financial Corp.

    41,016       4,053,201  

United Community Banks Inc./GA

    94,831       3,303,912  

Webster Financial Corp.

    191,123       10,695,243  

Wintrust Financial Corp.

    61,608       5,452,308  
Security   Shares     Value  
Banks (continued)  

Zions Bancorp. NA

    283,495     $ 17,857,350  
   

 

 

 
          2,050,100,777  
Beverages — 2.1%  

Brown-Forman Corp., Class A

    37,998       2,433,012  

Brown-Forman Corp., Class B, NVS

    117,100       7,949,919  

Constellation Brands Inc., Class A

    152,323       33,025,150  

PepsiCo Inc.

    2,432,634       393,113,654  
   

 

 

 
      436,521,735  
Biotechnology — 1.2%  

Amgen Inc.

    1,175,188       243,228,660  
   

 

 

 
Building Products — 0.5%  

A O Smith Corp.

    124,810       9,119,867  

AAON Inc.

    15,787       1,131,139  

Advanced Drainage Systems Inc.

    11,582       1,306,450  

Allegion PLC

    57,528       7,380,842  

Carlisle Companies Inc.

    35,461       7,904,966  

Fortune Brands Home & Security Inc.

    96,717       9,807,104  

Lennox International Inc.

    24,765       7,411,669  

Masco Corp.

    263,743       17,288,354  

Owens Corning

    74,477       6,956,897  

Simpson Manufacturing Co. Inc.

    25,414       2,696,171  

Trane Technologies PLC

    186,668       33,773,841  

UFP Industries Inc.

    33,791       2,765,117  
   

 

 

 
      107,542,417  
Capital Markets — 6.0%  

Ameriprise Financial Inc.

    125,238       37,838,157  

Bank of New York Mellon Corp. (The)

    1,329,786       78,723,331  

BlackRock Inc.(a)

    162,683       153,484,903  

Charles Schwab Corp. (The)

    968,927       79,481,082  

CME Group Inc.

    428,282       94,457,595  

Cohen & Steers Inc.

    33,111       3,141,903  

Evercore Inc., Class A

    53,099       8,062,552  

FactSet Research Systems Inc.

    20,768       9,218,708  

Goldman Sachs Group Inc. (The)

    431,379       178,310,510  

Houlihan Lokey Inc.

    63,607       7,129,073  

Intercontinental Exchange Inc.

    398,839       55,223,248  

MarketAxess Holdings Inc.

    14,283       5,837,034  

Moody’s Corp.

    67,222       27,167,771  

Morgan Stanley

    2,582,291       265,407,869  

MSCI Inc.

    33,450       22,240,236  

Nasdaq Inc.

    80,423       16,878,375  

Northern Trust Corp.

    327,081       40,244,046  

Raymond James Financial Inc.

    134,200       13,230,778  

S&P Global Inc.

    105,890       50,208,802  

SEI Investments Co.

    97,075       6,119,608  

State Street Corp.

    532,704       52,497,979  

T Rowe Price Group Inc.

    290,088       62,914,285  
   

 

 

 
      1,267,817,845  
Chemicals — 2.4%  

Air Products & Chemicals Inc.

    318,314       95,433,720  

Albemarle Corp.

    48,942       12,258,503  

Ashland Global Holdings Inc.

    46,074       4,423,565  

Avient Corp.

    105,366       5,677,120  

Balchem Corp.

    8,001       1,224,873  

Cabot Corp.

    99,196       5,292,107  

Celanese Corp.

    130,402       21,061,227  

Eastman Chemical Co.

    221,765       23,070,213  

Ecolab Inc.

    132,908       29,534,816  
 

 

 

10  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Chemicals (continued)            

HB Fuller Co.

    34,895     $ 2,460,446  

Innospec Inc.

    20,622       1,868,559  

International Flavors & Fragrances Inc.

    325,022       47,924,494  

Linde PLC

    454,255       144,998,196  

NewMarket Corp.

    9,998       3,399,420  

PPG Industries Inc.

    238,231       38,252,752  

Quaker Chemical Corp.

    5,177       1,272,714  

RPM International Inc.

    157,153       13,703,742  

Scotts Miracle-Gro Co. (The)

    44,609       6,622,652  

Sensient Technologies Corp.

    46,802       4,474,271  

Sherwin-Williams Co. (The)

    114,119       36,131,217  

Stepan Co.

    15,352       1,842,547  

Valvoline Inc.

    186,921       6,347,837  

Westlake Chemical Corp.

    31,228       3,039,733  
   

 

 

 
          510,314,724  
Commercial Services & Supplies — 0.6%  

ABM Industries Inc.

    68,620       3,019,966  

Brady Corp., Class A, NVS

    53,929       2,809,162  

Cintas Corp.

    54,162       23,457,562  

Healthcare Services Group Inc.

    150,139       2,881,167  

MSA Safety Inc.

    25,028       3,830,035  

Republic Services Inc.

    184,790       24,872,734  

Tetra Tech Inc.

    18,292       3,213,173  

Waste Management Inc.

    370,843       59,420,174  
   

 

 

 
      123,503,973  
Communications Equipment — 2.0%  

Cisco Systems Inc.

    6,820,682       381,753,572  

Motorola Solutions Inc.

    125,772       31,265,661  
   

 

 

 
      413,019,233  
Construction Materials — 0.1%  

Martin Marietta Materials Inc.

    26,582       10,442,473  

Vulcan Materials Co.

    72,032       13,694,724  
   

 

 

 
      24,137,197  
Consumer Finance — 0.8%  

Ally Financial Inc.

    478,395       22,838,577  

American Express Co.

    452,083       78,562,984  

Discover Financial Services

    330,874       37,494,642  

FirstCash Inc.

    35,276       3,120,868  

Synchrony Financial

    670,234       31,132,369  
   

 

 

 
      173,149,440  
Containers & Packaging — 0.4%  

AptarGroup Inc.

    49,084       5,928,366  

Avery Dennison Corp.

    64,565       14,057,092  

International Paper Co.

    882,450       43,831,291  

Silgan Holdings Inc.

    68,730       2,762,946  

Sonoco Products Co.

    180,281       10,447,284  
   

 

 

 
      77,026,979  
Distributors — 0.2%  

Genuine Parts Co.

    252,780       33,141,986  

Pool Corp.

    16,604       8,553,716  
   

 

 

 
      41,695,702  
Diversified Consumer Services — 0.0%  

Service Corp. International

    143,138       9,803,522  
   

 

 

 
Diversified Telecommunication Services — 2.6%  

Verizon Communications Inc.

    10,437,474       553,081,747  
   

 

 

 
Electric Utilities — 4.3%  

ALLETE Inc.

    124,912       7,687,084  

 

Security   Shares     Value  
Electric Utilities (continued)            

Alliant Energy Corp.

    424,090     $ 23,990,771  

American Electric Power Co. Inc.

    1,047,097       88,699,587  

Duke Energy Corp.

    1,846,438       188,355,140  

Edison International

    1,093,027       68,784,189  

Entergy Corp.

    425,225       43,806,680  

Evergy Inc.

    461,401       29,414,314  

Eversource Energy

    576,846       48,974,225  

Exelon Corp.

    1,905,103       101,332,429  

IDACORP Inc.

    85,173       8,885,247  

MGE Energy Inc.

    43,804       3,324,286  

NextEra Energy Inc.

    2,242,450       191,348,259  

Pinnacle West Capital Corp.

    315,426       20,341,823  

PNM Resources Inc.

    145,139       7,220,665  

Portland General Electric Co.

    192,536       9,493,950  

Xcel Energy Inc.

    909,979       58,775,544  
   

 

 

 
          900,434,193  
Electrical Equipment — 1.0%  

Eaton Corp. PLC

    476,181       78,455,582  

Emerson Electric Co.

    754,577       73,201,515  

Hubbell Inc.

    69,260       13,808,366  

nVent Electric PLC

    230,394       8,167,467  

Regal Rexnord Corp.

    23,233       3,539,083  

Rockwell Automation Inc.

    100,272       32,026,877  
   

 

 

 
      209,198,890  
Electronic Equipment, Instruments & Components — 0.6%  

Amphenol Corp., Class A

    295,069       22,652,447  

Badger Meter Inc.

    15,159       1,550,008  

CDW Corp./DE

    72,005       13,439,733  

Cognex Corp.

    30,995       2,714,852  

Corning Inc.

    1,221,822       43,460,208  

Littelfuse Inc.

    12,434       3,662,435  

TE Connectivity Ltd.

    287,495       41,974,270  

Vishay Intertechnology Inc.

    155,599       2,990,613  
   

 

 

 
      132,444,566  
Entertainment — 0.1%  

Activision Blizzard Inc.

    292,584       22,877,143  
   

 

 

 
Food & Staples Retailing — 1.6%            

Casey’s General Stores Inc.

    17,245       3,303,107  

Costco Wholesale Corp.

    192,511       94,626,857  

Kroger Co. (The)

    878,712       35,166,054  

Walmart Inc.

    1,314,546       196,419,464  
   

 

 

 
      329,515,482  
Food Products — 1.7%  

Archer-Daniels-Midland Co.

    884,415       56,814,820  

Flowers Foods Inc.

    444,955       11,012,636  

Hershey Co. (The)

    192,115       33,687,365  

Hormel Foods Corp.

    417,133       17,653,068  

Ingredion Inc.

    126,048       12,003,551  

JM Smucker Co. (The)

    229,074       28,144,032  

Kellogg Co.

    593,196       36,362,915  

Lancaster Colony Corp.

    21,531       3,660,270  

McCormick & Co. Inc./MD, NVS

    246,552       19,780,867  

Mondelez International Inc., Class A

    1,866,235       113,355,114  

Tyson Foods Inc., Class A

    443,021       35,428,389  
   

 

 

 
      367,903,027  
Gas Utilities — 0.4%  

Atmos Energy Corp.

    215,187       19,823,026  

National Fuel Gas Co.

    203,555       11,690,164  
 

 

 

C H E D U L E    O F    N V E S T  M E N T S

  11


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Gas Utilities (continued)  

New Jersey Resources Corp.

    219,567     $ 8,301,828  

ONE Gas Inc.

    110,777       7,455,292  

Southwest Gas Holdings Inc.

    123,739       8,568,926  

Spire Inc.

    131,872       8,276,287  

UGI Corp.

    398,485       17,298,234  
   

 

 

 
      81,413,757  
Health Care Equipment & Supplies — 2.9%  

Abbott Laboratories

    1,590,248       204,967,065  

Baxter International Inc.

    437,798       34,568,530  

Becton Dickinson and Co.

    235,199       56,351,328  

Danaher Corp.

    103,841       32,374,509  

DENTSPLY SIRONA Inc.

    99,145       5,672,085  

Hill-Rom Holdings Inc.

    27,040       4,188,496  

Medtronic PLC

    1,609,580       192,924,259  

ResMed Inc.

    52,898       13,907,413  

STERIS PLC

    46,077       10,770,038  

Stryker Corp.

    188,844       50,245,723  
   

 

 

 
          605,969,446  
Health Care Providers & Services — 2.8%  

AmerisourceBergen Corp.

    134,692       16,435,118  

Anthem Inc.

    191,043       83,128,541  

Cardinal Health Inc.

    685,440       32,770,886  

Chemed Corp.

    3,314       1,598,176  

Encompass Health Corp.

    88,856       5,647,687  

Ensign Group Inc. (The)

    9,932       774,795  

Humana Inc.

    55,942       25,910,097  

McKesson Corp.

    92,832       19,297,916  

Quest Diagnostics Inc.

    131,915       19,362,484  

UnitedHealth Group Inc.

    845,565       389,357,316  
   

 

 

 
      594,283,016  
Hotels, Restaurants & Leisure — 2.0%  

Domino’s Pizza Inc.

    18,001       8,801,949  

McDonald’s Corp.

    1,035,436       254,251,310  

Starbucks Corp.

    1,153,028       122,301,680  

Yum! Brands Inc.

    292,771       36,578,808  
   

 

 

 
      421,933,747  
Household Durables — 0.2%  

DR Horton Inc.

    184,680       16,486,384  

Leggett & Platt Inc.

    311,027       14,571,615  

Whirlpool Corp.

    104,369       22,004,116  
   

 

 

 
      53,062,115  
Household Products — 3.7%  

Church & Dwight Co. Inc.

    188,345       16,453,819  

Clorox Co. (The)

    217,450       35,446,524  

Colgate-Palmolive Co.

    1,256,421       95,726,716  

Energizer Holdings Inc.

    113,433       4,136,902  

Kimberly-Clark Corp.

    698,002       90,384,279  

Procter & Gamble Co. (The)

    3,780,110       540,517,929  

WD-40 Co.

    11,038       2,505,626  
   

 

 

 
      785,171,795  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    1,068,326       26,847,032  
   

 

 

 
Industrial Conglomerates — 1.8%  

3M Co.

    1,172,042       209,420,465  

Honeywell International Inc.

    738,870       161,531,759  

Roper Technologies Inc.

    31,571       15,402,544  
   

 

 

 
      386,354,768  

 

Security   Shares     Value  
Insurance — 3.5%  

Aflac Inc.

    972,169     $ 52,176,310  

Allstate Corp. (The)

    469,266       58,034,126  

American Equity Investment Life Holding Co.

    54,277       1,729,808  

American Financial Group Inc./OH

    64,940       8,834,438  

Aon PLC, Class A

    102,764       32,876,259  

Arthur J Gallagher & Co.

    175,112       29,361,029  

Assurant Inc.

    61,132       9,861,203  

Assured Guaranty Ltd.

    89,864       4,994,641  

Axis Capital Holdings Ltd.

    178,735       9,306,731  

Brown & Brown Inc.

    95,060       5,999,237  

Chubb Ltd.

    506,264       98,913,860  

Cincinnati Financial Corp.

    201,956       24,525,537  

CNO Financial Group Inc.

    188,239       4,544,089  

Erie Indemnity Co., Class A, NVS

    37,814       7,782,499  

Everest Re Group Ltd.

    60,699       15,872,789  

Fidelity National Financial Inc.

    564,493       27,044,860  

First American Financial Corp.

    190,616       13,941,654  

Globe Life Inc.

    51,880       4,618,358  

Hanover Insurance Group Inc. (The)

    46,483       5,856,858  

Hartford Financial Services Group Inc. (The)

    468,965       34,201,617  

Kinsale Capital Group Inc.

    3,518       658,394  

Lincoln National Corp.

    293,611       21,184,034  

Marsh & McLennan Companies Inc.

    439,531       73,313,771  

MetLife Inc.

    1,503,456       94,417,037  

Primerica Inc.

    32,322       5,437,853  

Reinsurance Group of America Inc.

    109,505       12,930,350  

RenaissanceRe Holdings Ltd.

    29,913       4,241,663  

RLI Corp.

    25,247       2,734,503  

Selective Insurance Group Inc.

    47,008       3,684,017  

Travelers Companies Inc. (The)

    358,430       57,664,218  

W R Berkley Corp.

    63,155       5,027,138  
   

 

 

 
          731,768,881  
IT Services — 2.8%  

Accenture PLC, Class A

    421,902       151,374,219  

Automatic Data Processing Inc.

    495,190       111,165,203  

Broadridge Financial Solutions Inc.

    100,013       17,843,319  

Fidelity National Information Services Inc.

    476,526       52,770,489  

Jack Henry & Associates Inc.

    50,722       8,444,199  

Mastercard Inc., Class A

    281,473       94,439,821  

TTEC Holdings Inc.

    8,972       846,867  

Visa Inc., Class A

    606,589       128,457,352  

Western Union Co. (The)

    1,152,548       20,999,425  
   

 

 

 
      586,340,894  
Leisure Products — 0.2%  

Brunswick Corp./DE

    71,685       6,673,156  

Hasbro Inc.

    228,168       21,849,368  

Polaris Inc.

    80,924       9,302,214  
   

 

 

 
      37,824,738  
Life Sciences Tools & Services — 0.1%  

Agilent Technologies Inc.

    84,759       13,348,695  

West Pharmaceutical Services Inc.

    6,744       2,899,111  
   

 

 

 
      16,247,806  
Machinery — 2.4%  

AGCO Corp.

    24,290       2,968,481  

Barnes Group Inc.

    42,150       1,767,771  

Caterpillar Inc.

    754,828       153,992,460  

Cummins Inc.

    232,372       55,732,100  

Donaldson Co. Inc.

    117,585       7,056,276  

Dover Corp.

    105,882       17,902,529  
 

 

 

12  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)  

Franklin Electric Co. Inc.

    19,593     $ 1,692,443  

Graco Inc.

    104,654       7,867,888  

Hillenbrand Inc.

    97,469       4,430,941  

IDEX Corp.

    47,729       10,623,044  

Illinois Tool Works Inc.

    379,364       86,445,675  

ITT Inc.

    51,688       4,862,290  

Lincoln Electric Holdings Inc.

    57,575       8,198,680  

Nordson Corp.

    28,968       7,363,955  

Oshkosh Corp.

    52,788       5,648,316  

Otis Worldwide Corp.

    274,824       22,071,115  

PACCAR Inc.

    368,892       33,060,101  

Pentair PLC

    110,816       8,197,059  

Snap-on Inc.

    76,657       15,579,002  

Stanley Black & Decker Inc.

    154,457       27,760,557  

Timken Co. (The)

    73,813       5,237,032  

Toro Co. (The)

    66,949       6,391,621  

Watts Water Technologies Inc., Class A

    10,092       1,917,682  

Xylem Inc./NY

    95,998       12,536,379  
   

 

 

 
          509,303,397  
Marine — 0.0%  

Matson Inc.

    39,097       3,255,998  
   

 

 

 
Media — 1.5%            

Cable One Inc.

    1,949       3,335,148  

Comcast Corp., Class A

    4,892,173       251,604,458  

John Wiley & Sons Inc., Class A

    67,430       3,652,683  

Nexstar Media Group Inc., Class A

    52,840       7,922,301  

Omnicom Group Inc.

    532,725       36,267,918  

Sirius XM Holdings Inc.

    701,543       4,272,397  
   

 

 

 
      307,054,905  
Metals & Mining — 0.3%  

Nucor Corp.

    277,829       31,019,608  

Reliance Steel & Aluminum Co.

    76,141       11,128,769  

Royal Gold Inc.

    45,662       4,521,451  

Steel Dynamics Inc.

    203,832       13,469,219  

Worthington Industries Inc.

    46,717       2,537,667  
   

 

 

 
      62,676,714  
Multi-Utilities — 2.0%  

Ameren Corp.

    409,003       34,474,863  

Black Hills Corp.

    130,310       8,649,978  

CMS Energy Corp.

    500,768       30,221,349  

Consolidated Edison Inc.

    887,458       66,914,333  

DTE Energy Co.

    443,749       50,298,949  

MDU Resources Group Inc.

    348,122       10,697,789  

NiSource Inc.

    880,564       21,723,514  

NorthWestern Corp.

    123,227       7,006,687  

Public Service Enterprise Group Inc.

    1,032,625       65,881,475  

Sempra Energy

    664,095       84,758,445  

WEC Energy Group Inc.

    567,719       51,128,773  
   

 

 

 
      431,756,155  
Multiline Retail — 0.7%  

Dollar General Corp.

    113,918       25,235,115  

Target Corp.

    464,383       120,563,115  
   

 

 

 
      145,798,230  
Oil, Gas & Consumable Fuels — 0.1%  

DTE Midstream LLC(b)

    325,433       15,607,767  
   

 

 

 
Paper & Forest Products — 0.0%  

Sylvamo Corp.(b)

    79,899       2,249,956  
   

 

 

 

 

Security   Shares     Value  
Personal Products — 0.2%  

Estee Lasuder Companies Inc. (The), Class A

    93,921     $ 30,461,398  

Nu Skin Enterprises Inc., Class A

    98,745       3,964,612  
   

 

 

 
      34,426,010  
Pharmaceuticals — 9.6%  

Bristol-Myers Squibb Co.

    4,328,000       252,755,200  

Eli Lilly & Co.

    681,491       173,616,647  

Johnson & Johnson

    3,368,649       548,685,549  

Merck & Co. Inc.

    5,605,917       493,600,992  

Perrigo Co. PLC

    182,714       8,249,537  

Pfizer Inc.

    12,048,360       526,995,266  

Zoetis Inc.

    145,874       31,537,959  
   

 

 

 
          2,035,441,150  
Professional Services — 0.2%  

Booz Allen Hamilton Holding Corp.

    155,796       13,532,440  

Exponent Inc.

    22,933       2,632,708  

Insperity Inc.

    37,249       4,656,125  

ManpowerGroup Inc.

    73,764       7,129,291  

Robert Half International Inc.

    107,651       12,172,099  
   

 

 

 
      40,122,663  
Road & Rail — 1.4%  

CSX Corp.

    1,708,017       61,778,975  

JB Hunt Transport Services Inc.

    36,392       7,176,139  

Landstar System Inc.

    15,437       2,713,979  

Ryder System Inc.

    103,291       8,774,570  

Union Pacific Corp.

    847,633       204,618,606  

Werner Enterprises Inc.

    37,179       1,684,952  
   

 

 

 
      286,747,221  
Semiconductors & Semiconductor Equipment — 6.8%  

Analog Devices Inc.

    582,075       100,984,192  

Broadcom Inc.

    763,174       405,756,721  

CMC Materials Inc.

    26,359       3,383,705  

Intel Corp.

    6,723,571       329,454,979  

KLA Corp.

    122,402       45,626,570  

Lam Research Corp.

    81,381       45,863,890  

Microchip Technology Inc.

    399,055       29,565,985  

Power Integrations Inc.

    19,807       2,044,280  

QUALCOMM Inc.

    1,381,474       183,791,301  

Skyworks Solutions Inc.

    133,862       22,372,356  

Texas Instruments Inc.

    1,280,699       240,105,448  

Xilinx Inc.

    156,794       28,222,920  
   

 

 

 
      1,437,172,347  
Software — 4.3%  

Dolby Laboratories Inc., Class A

    38,775       3,425,771  

Intuit Inc.

    73,060       45,734,830  

Microsoft Corp.

    2,074,950       688,094,919  

Oracle Corp.

    1,667,781       160,006,909  
   

 

 

 
      897,262,429  
Specialty Retail — 3.6%  

Best Buy Co. Inc.

    359,871       43,990,631  

Dick’s Sporting Goods Inc.

    47,465       5,895,628  

Group 1 Automotive Inc.

    9,277       1,668,005  

Home Depot Inc. (The)

    1,358,110       504,863,811  

Lithia Motors Inc.

    8,303       2,650,484  

Lowe’s Companies Inc.

    711,247       166,303,773  

Penske Automotive Group Inc.

    42,692       4,527,487  

Tractor Supply Co.

    77,358       16,799,837  

Williams-Sonoma Inc.

    66,006       12,259,294  
   

 

 

 
      758,958,950  
 

 

 

C H E D U L E    O F    N V E S T  M E N T S

  13


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core Dividend Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Technology Hardware, Storage & Peripherals — 3.1%  

Apple Inc.

    3,864,031     $ 578,831,844  

Hewlett Packard Enterprise Co.

    2,772,145       40,611,924  

NetApp Inc.

    320,013       28,577,161  
   

 

 

 
      648,020,929  
Textiles, Apparel & Luxury Goods — 0.6%  

Nike Inc., Class B

    560,099       93,698,961  

VF Corp.

    566,285       41,270,851  
   

 

 

 
          134,969,812  
Thrifts & Mortgage Finance — 0.0%  

Washington Federal Inc.

    129,670       4,585,131  
   

 

 

 

Trading Companies & Distributors — 0.4%

 

Air Lease Corp.

    113,199       4,533,620  

Applied Industrial Technologies Inc.

    38,462       3,749,276  

Fastenal Co.

    764,184       43,619,623  

GATX Corp.

    51,428       4,877,946  

MSC Industrial Direct Co. Inc., Class A

    110,932       9,326,053  

WW Grainger Inc.

    43,612       20,197,153  
   

 

 

 
      86,303,671  
Water Utilities — 0.2%  

American States Water Co.

    35,967       3,267,242  

American Water Works Co. Inc.

    149,125       25,974,592  

California Water Service Group

    45,717       2,783,251  

Essential Utilities Inc.

    303,844       14,301,937  
Security   Shares     Value  
Water Utilities (continued)            

SJW Group

    33,967     $ 2,239,105  
   

 

 

 
      48,566,127  
Wireless Telecommunication Services — 0.0%        

Shenandoah Telecommunications Co.

    36,633       1,012,536  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $16,232,507,002)

 

        21,039,537,176  
   

 

 

 

Short-Term Investments

 

 
Money Market Funds — 0.3%        

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(a)(c)

    59,510,000       59,510,000  
   

 

 

 

Total Short-Term Investments — 0.3%
(Cost: $59,510,000)

 

    59,510,000  
   

 

 

 

Total Investments in Securities — 100.0%
(Cost: $16,292,017,002)

 

    21,099,047,176  
   

 

 

 

Other Assets, Less Liabilities — (0.0)%

 

    (9,417,661
   

 

 

 

Net Assets — 100.0%

 

  $ 21,089,629,515  
   

 

 

 

 

(a) 

Affiliate of the Fund.

(b) 

Non-income producing security.

(c) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $ 56,230,000      $ 3,280,000 (a)     $      $      $      $ 59,510,000        59,510,000      $ 1,185      $  

BlackRock Inc.

     130,088,454        19,547,468        (15,744,335      3,254,632        16,338,684        153,484,903        162,683        1,364,246         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 3,254,632      $ 16,338,684      $ 212,994,903         $ 1,365,431      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

                                   

S&P 500 E-Mini Index

     209        12/17/21      $ 48,039      $ 1,765,808  
           

 

 

 

 

 

14  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core Dividend Growth ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

   
      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 1,765,808  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

   
      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 7,132,495  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (36,403
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 47,923,710  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 21,039,537,176        $        $        $ 21,039,537,176  

Money Market Funds

     59,510,000                            59,510,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 21,099,047,176        $        $        $ 21,099,047,176  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 1,765,808        $                 —        $                 —        $ 1,765,808  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E    O F    N V E S T  M E N T S

  15


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® Core High Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 1.8%            

General Dynamics Corp.

    209,997     $ 42,576,892  

Lockheed Martin Corp.

    285,111       94,748,087  
   

 

 

 
      137,324,979  
Banks — 2.9%            

Truist Financial Corp.

    1,828,181       116,034,648  

U.S. Bancorp

    1,621,201       97,871,905  
   

 

 

 
      213,906,553  
Beverages — 6.7%            

Coca-Cola Co. (The)

    4,551,957       256,593,816  

PepsiCo Inc.

    1,493,375       241,329,400  
   

 

 

 
      497,923,216  
Biotechnology — 8.8%            

AbbVie Inc.

    3,278,459       375,940,893  

Amgen Inc.

    721,439       149,316,230  

Gilead Sciences Inc.

    1,952,101       126,652,313  
   

 

 

 
      651,909,436  
Capital Markets — 2.4%            

Artisan Partners Asset Management Inc., Class A

    188,510       9,338,785  

Blackstone Inc., NVS

    588,211       81,420,167  

Carlyle Group Inc. (The)

    94,221       5,290,509  

Cohen & Steers Inc.

    19,193       1,821,224  

Franklin Resources Inc.

    384,417       12,105,291  

Invesco Ltd.

    413,295       10,501,826  

Janus Henderson Group PLC

    242,300       11,266,950  

Moelis & Co., Class A

    94,200       6,852,108  

T Rowe Price Group Inc.

    177,830       38,567,771  
   

 

 

 
          177,164,631  
Communications Equipment — 3.2%            

Cisco Systems Inc.

    4,187,165       234,355,625  
   

 

 

 
Containers & Packaging — 0.4%            

Amcor PLC

    2,317,947       27,977,620  
   

 

 

 
Distributors — 0.3%            

Genuine Parts Co.

    154,644       20,275,375  
   

 

 

 
Diversified Telecommunication Services — 12.6%        

AT&T Inc.

    21,197,531       535,449,633  

Cogent Communications Holdings Inc.

    72,236       5,532,555  

Verizon Communications Inc.

    7,455,256       395,054,016  
   

 

 

 
      936,036,204  
Electric Utilities — 5.6%            

Alliant Energy Corp.

    259,759       14,694,567  

American Electric Power Co. Inc.

    642,637       54,437,780  

Avangrid Inc.

    89,966       4,741,208  

Duke Energy Corp.

    1,133,513       115,629,661  

Evergy Inc.

    282,535       18,011,606  

Exelon Corp.

    1,169,528       62,207,194  

PNM Resources Inc.

    89,311       4,443,222  

Portland General Electric Co.

    116,205       5,730,069  

Southern Co. (The)

    1,635,691       101,936,263  

Xcel Energy Inc.

    559,806       36,157,870  
   

 

 

 
      417,989,440  
Electronic Equipment, Instruments & Components — 0.1%  

National Instruments Corp.

    133,704       5,678,409  
   

 

 

 
Gas Utilities — 0.1%            

National Fuel Gas Co.

    125,109       7,185,010  
   

 

 

 
Security   Shares     Value  
Hotels, Restaurants & Leisure — 2.1%            

McDonald’s Corp.

    635,647     $ 156,083,121  
   

 

 

 
Household Products — 6.0%            

Colgate-Palmolive Co.

    771,245       58,761,157  

Kimberly-Clark Corp.

    428,409       55,474,682  

Procter & Gamble Co. (The)

    2,320,580       331,819,734  

Reynolds Consumer Products Inc.

    71,280       1,923,134  
   

 

 

 
      447,978,707  
Industrial Conglomerates — 1.7%            

3M Co.

    719,508       128,561,690  
   

 

 

 
Insurance — 0.6%            

Erie Indemnity Co., Class A, NVS

    23,255       4,786,112  

Mercury General Corp.

    45,658       2,487,904  

Travelers Companies Inc. (The)

    219,698       35,345,014  
   

 

 

 
      42,619,030  
IT Services — 0.7%            

Paychex Inc.

    297,575       36,685,046  

Western Union Co. (The)

    706,328       12,869,296  
   

 

 

 
      49,554,342  
Leisure Products — 0.2%            

Hasbro Inc.

    139,696       13,377,289  
   

 

 

 
Machinery — 0.6%            

Cummins Inc.

    142,953       34,285,847  

Snap-on Inc.

    46,708       9,492,467  
   

 

 

 
      43,778,314  
Multi-Utilities — 2.1%            

CMS Energy Corp.

    306,259       18,482,731  

NiSource Inc.

    542,024       13,371,732  

Public Service Enterprise Group Inc.

    633,251       40,401,414  

Sempra Energy

    407,558       52,016,628  

WEC Energy Group Inc.

    349,256       31,453,995  
   

 

 

 
      155,726,500  
Oil, Gas & Consumable Fuels — 19.0%            

Chevron Corp.

    4,233,926       484,742,188  

Coterra Energy Inc.

    374,314       7,980,374  

EOG Resources Inc.

    564,672       52,209,573  

Exxon Mobil Corp.

    10,737,914       692,273,316  

ONEOK Inc.

    1,253,686       79,759,503  

Williams Companies Inc. (The)

    3,170,974       89,072,660  
   

 

 

 
          1,406,037,614  
Personal Products — 0.0%            

Medifast Inc.

    11,100       2,178,597  
   

 

 

 
Pharmaceuticals — 11.8%            

Bristol-Myers Squibb Co.

    2,656,927       155,164,537  

Johnson & Johnson

    2,558,816       416,779,950  

Merck & Co. Inc.

    3,441,430       303,017,911  
   

 

 

 
      874,962,398  
Semiconductors & Semiconductor Equipment — 5.3%  

Broadcom Inc.

    468,506       249,090,585  

Texas Instruments Inc.

    786,211       147,398,838  
   

 

 

 
      396,489,423  
Textiles, Apparel & Luxury Goods — 0.3%  

VF Corp.

    348,973       25,433,152  
   

 

 

 
Thrifts & Mortgage Finance — 0.1%            

Radian Group Inc.

    187,377       4,472,689  
 

 

 

16  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core High Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Thrifts & Mortgage Finance (continued)            

TFS Financial Corp.

    109,618     $ 2,133,166  
   

 

 

 
      6,605,855  
Tobacco — 3.6%            

Philip Morris International Inc.

    2,842,472       268,727,303  
   

 

 

 
Trading Companies & Distributors — 0.6%  

Fastenal Co.

    470,653       26,864,873  

MSC Industrial Direct Co. Inc., Class A

    67,368       5,663,628  

Watsco Inc.

    35,626       10,316,577  
   

 

 

 
      42,845,078  
Water Utilities — 0.1%            

Essential Utilities Inc.

    186,005       8,755,255  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $6,745,203,578)

          7,397,440,166  
   

 

 

 
Security   Shares     Value  

Short-Term Investments

   

Money Market Funds — 0.2%

   

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(a)(b)

    11,570,000     $ 11,570,000  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $11,570,000)

 

    11,570,000  
   

 

 

 

Total Investments in Securities — 99.9%
(Cost: $6,756,773,578)

 

    7,409,010,166  

Other Assets, Less Liabilities — 0.1%

 

    7,767,470  
   

 

 

 

Net Assets — 100.0%

 

  $   7,416,777,636  
   

 

 

 

 

(a) 

Affiliate of the Fund.

(b) 

Annualized 7-day yield as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
    Shares
Held at
10/31/21
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

BlackRock Cash Funds: Treasury, SL Agency Shares

  $ 16,210,000     $     $ (4,640,000 )(a)    $     $      $ 11,570,000       11,570,000     $ 305     $  
       

 

 

   

 

 

    

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

DIJA Mini e-CBOT Index

     37        12/17/21      $ 6,605      $ 38,117  

E-Mini Consumer Staples Index

     119        12/17/21        8,512        41,157  

E-Mini Energy Select Sector Index

     59        12/17/21        3,524        (45,993
           

 

 

 
            $ 33,281  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 79,274  
  

 

 

 

 

 

C H E D U L E    O F    N V E S T  M E N T S

  17


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core High Dividend ETF

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

 

      Equity
Contracts
 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 45,993  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 3,170,200  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (550,837
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 15,998,220  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 7,397,440,166        $        $        $ 7,397,440,166  

Money Market Funds

     11,570,000                            11,570,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 7,409,010,166        $        $        $ 7,409,010,166  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 79,274        $        $        $ 79,274  

Liabilities

                 

Futures Contracts

     (45,993                          (45,993
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 33,281        $                 —        $                 —        $ 33,281  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

18  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) 

October 31, 2021

  

iShares® International Select Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 11.4%  

APA Group

    3,352,619     $ 20,801,819  

AusNet Services Ltd.

    3,436,083       6,389,911  

Fortescue Metals Group Ltd.

    7,283,275       75,891,994  

JB Hi-Fi Ltd.

    1,340,937       51,196,132  

Magellan Financial Group Ltd.

    1,847,866       48,610,116  

Perpetual Ltd.

    681,573       19,481,098  

Rio Tinto PLC

    4,254,190       265,254,976  

Suncorp Group Ltd.

    1,284,640       11,367,577  
   

 

 

 
          498,993,623  
Austria — 0.4%            

Oesterreichische Post AG

    390,728       16,486,375  
   

 

 

 
Belgium — 2.0%  

Ageas SA/NV

    1,083,236       52,696,929  

Proximus SADP

    1,934,772       36,434,769  
   

 

 

 
      89,131,698  
Canada — 10.9%            

Bank of Montreal

    707,836       76,851,910  

Bank of Nova Scotia (The)

    817,641       53,606,489  

Canadian Imperial Bank of Commerce

    855,617       103,820,301  

Canadian Utilities Ltd., Class A, NVS

    1,496,683       43,354,950  

Emera Inc.

    1,363,437       63,434,633  

Great-West Lifeco Inc.

    947,643       27,879,510  

IGM Financial Inc.

    944,700       37,510,147  

Labrador Iron Ore Royalty Corp.

    756,578       21,903,838  

Manulife Financial Corp.

    744,275       14,499,410  

Power Corp. of Canada

    983,574       32,759,309  
   

 

 

 
      475,620,497  
China — 0.6%            

BOC Aviation Ltd.(a)

    2,649,300       23,183,420  

Gemdale Properties & Investment Corp. Ltd.

    13,298,000       1,294,267  
   

 

 

 
      24,477,687  
Finland — 3.2%            

Fortum OYJ

    1,600,802       47,607,954  

Sampo OYJ, Class A

    941,854       50,070,199  

UPM-Kymmene OYJ

    1,209,726       42,692,348  
   

 

 

 
      140,370,501  
France — 5.3%            

APERAM SA

    622,295       37,103,475  

Bouygues SA

    1,171,731       47,473,038  

Gaztransport Et Technigaz SA

    296,893       24,541,338  

Nexity SA

    600,899       27,471,414  

Orange SA

    1,705,806       18,601,728  

TotalEnergies SE

    1,565,566       78,395,638  
   

 

 

 
      233,586,631  
Hong Kong — 9.9%            

BOC Hong Kong Holdings Ltd.

    6,880,500       21,803,234  

CK Hutchison Holdings Ltd.

    9,745,500       65,337,923  

CK Infrastructure Holdings Ltd.

    7,748,000       46,712,640  

Hang Seng Bank Ltd.

    4,993,200       94,885,430  

Henderson Land Development Co. Ltd.

    10,969,000       45,929,176  

Hysan Development Co. Ltd.

    7,789,000       27,079,551  

Kerry Properties Ltd.

    8,117,000       22,944,315  

New World Development Co. Ltd.

    10,536,750       45,702,406  

PCCW Ltd.

    15,356,000       7,905,718  

Swire Pacific Ltd., Class A

    6,611,000       41,560,633  

 

Security   Shares      Value  
Hong Kong (continued)             

VTech Holdings Ltd.

    2,064,000      $ 15,893,753  
    

 

 

 
       435,754,779  
Italy — 7.5%             

A2A SpA

    8,798,111        18,514,283  

Anima Holding SpA(a)

    3,166,038        16,822,557  

Azimut Holding SpA

    1,398,108        40,263,134  

Enel SpA

    7,006,035        58,653,000  

Eni SpA

    5,849,053        83,831,202  

Italgas SpA

    6,187,205        39,310,300  

Snam SpA

    9,256,306        52,425,764  

UnipolSai Assicurazioni SpA

    5,725,792        16,580,175  
    

 

 

 
           326,400,415  
Japan — 4.5%             

Haseko Corp.

    2,388,400        31,099,453  

Idemitsu Kosan Co. Ltd.

    2,107,800        57,568,862  

MS&AD Insurance Group Holdings Inc.

    1,569,700        50,712,834  

Sojitz Corp.

    313,580        5,173,771  

Sumitomo Mitsui Financial Group Inc.

    1,599,100        51,890,209  
    

 

 

 
       196,445,129  
Netherlands — 3.4%             

Flow Traders(a)

    466,134        15,820,661  

NN Group NV

    1,091,787        58,363,395  

Royal Dutch Shell PLC, Class A

    2,250,532        51,557,156  

SBM Offshore NV

    1,385,860        21,880,336  
    

 

 

 
       147,621,548  
New Zealand — 1.6%             

Spark New Zealand Ltd.

    21,619,712        70,775,853  
    

 

 

 
Portugal — 1.0%  

EDP - Energias de Portugal SA

    7,956,702        44,896,805  
    

 

 

 
South Korea — 7.4%             

BNK Financial Group Inc.

    1,903,453        14,350,188  

DB Insurance Co. Ltd.

    618,272        31,420,426  

DGB Financial Group Inc.

    1,948,424        17,264,642  

Hana Financial Group Inc.

    1,750,889        67,513,976  

Industrial Bank of Korea

    2,032,694        19,238,690  

KB Financial Group Inc.

    1,311,954        63,503,672  

Meritz Securities Co. Ltd.

    3,039,477        12,145,385  

Samsung Securities Co. Ltd.

    802,158        32,610,525  

Shinhan Financial Group Co. Ltd.

    1,616,245        52,765,417  

Woori Financial Group Inc.

    1,310,546        14,898,483  
    

 

 

 
       325,711,404  
Spain — 9.2%             

ACS Actividades de Construccion y Servicios SA

    3,382,573        88,655,937  

Cia. de Distribucion Integral Logista Holdings SA

    966,210        20,592,537  

Enagas SA

    2,488,715        55,845,439  

Mapfre SA

    4,469,678        9,463,620  

Naturgy Energy Group SA

    4,408,377        115,833,972  

Red Electrica Corp. SA

    4,109,181        85,560,313  

Telefonica SA

    6,392,297        27,765,952  
    

 

 

 
       403,717,770  
Sweden — 1.3%             

Telia Co. AB

    14,722,669        57,990,311  
    

 

 

 
Switzerland — 4.5%  

Swiss Prime Site AG, Registered

    166,144        16,891,244  

Swiss Re AG

    174,658        16,920,082  

Swisscom AG, Registered

    187,321        102,000,839  
 

 

 

C H E D U L E    O F    N V E S T  M E N T S

  19


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® International Select Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Switzerland (continued)            

Zurich Insurance Group AG

    137,572     $ 60,974,737  
   

 

 

 
      196,786,902  
United Kingdom — 14.5%            

Abrdn PLC

    2,299,637       7,993,761  

BP PLC

    3,431,387       16,439,434  

British American Tobacco PLC

    5,810,257       202,106,398  

Centamin PLC

    5,803,044       7,414,086  

Drax Group PLC

    3,202,642       23,292,245  

GlaxoSmithKline PLC

    4,530,974       94,066,778  

IG Group Holdings PLC

    2,493,784       27,081,122  

Legal & General Group PLC

    2,871,642       11,325,132  

National Grid PLC

    4,167,114       53,353,898  

Phoenix Group Holdings PLC

    2,953,078       26,514,288  

SSE PLC

    4,189,840       94,353,494  

Tesco PLC

    3,966,223       14,644,352  

United Utilities Group PLC

    3,429,507       48,744,056  

Vodafone Group PLC

    4,262,565       6,282,386  
   

 

 

 
      633,611,430  
   

 

 

 

Total Common Stocks — 98.6%
(Cost: $3,912,741,617)

          4,318,379,358  
   

 

 

 

Preferred Stocks

 

Germany — 0.4%  

Schaeffler AG, Preference Shares, NVS

    2,150,337       17,086,873  
   

 

 

 

 

Security   Shares     Value  
Italy — 0.1%            

Telecom Italia SpA/Milano, Preference Shares, NVS

    9,117,714     $ 3,466,315  
   

 

 

 

Total Preferred Stocks — 0.5%
(Cost: $22,929,685)

 

    20,553,188  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.1%  
BlackRock Cash Funds: Treasury,
   SL Agency Shares, 0.00%(b)(c)
  2,270,000     2,270,000  
   

 

 

 

Total Short-Term Investments — 0.1%
(Cost: $2,270,000)

 

    2,270,000  
   

 

 

 

Total Investments in Securities — 99.2%
(Cost: $3,937,941,302)

 

    4,341,202,546  

Other Assets, Less Liabilities — 0.8%

 

    36,086,683  
   

 

 

 

Net Assets — 100.0%

 

  $     4,377,289,229  
   

 

 

 

 

(a) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

  $     $     $ (1,302 )(b)    $ 1,302     $     $           $ 989,236 (c)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    2,930,000             (660,000 )(b)                  2,270,000       2,270,000       92        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 1,302     $     $ 2,270,000       $ 989,328     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description   Number of
Contracts
    Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

       

SPI 200 Index

    59       12/16/21     $ 8,117     $ (27,342

 

 

20  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® International Select Dividend ETF

 

Futures Contracts (continued)

 

Description   Number of
Contracts
    Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 

Euro STOXX 50 Index

    154       12/17/21     $ 7,551     $ 269,631  

FTSE 100 Index

    212       12/17/21       20,956       527,698  
       

 

 

 
        $ 769,987  
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 797,329  
  

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 27,342  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 1,718,665  
  

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:       

Futures contracts

   $ (27,742
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 37,751,667  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

 

 

C H E D U L E    O F    N V E S T  M E N T S

  21


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® International Select Dividend ETF

 

Fair Value Hierarchy as of Period End (continued)

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 677,922,178        $ 3,640,457,180        $        $ 4,318,379,358  

Preferred Stocks

              20,553,188                   20,553,188  

Money Market Funds

     2,270,000                            2,270,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 680,192,178        $ 3,661,010,368        $        $ 4,341,202,546  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $        $ 797,329        $        $ 797,329  

Liabilities

                 

Futures Contracts

              (27,342                 (27,342
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ 769,987        $                 —        $ 769,987  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

22  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) 

October 31, 2021

  

iShares® Select Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.9%            

Lockheed Martin Corp.

    496,244     $ 164,911,806  
   

 

 

 
Banks — 12.0%            

Citizens Financial Group Inc.

    4,322,178       204,784,794  

Comerica Inc.

    2,839,531       241,615,693  

Fifth Third Bancorp

    4,398,274       191,456,867  

First Horizon Corp.

    11,022,206       187,046,836  

FNB Corp.

    6,269,955       73,044,976  

Huntington Bancshares Inc./OH

    12,847,108       202,213,480  

KeyCorp

    9,325,104       216,995,170  

People’s United Financial Inc.

    8,741,088       149,822,248  

Regions Financial Corp.

    7,506,834       177,761,829  

Truist Financial Corp.

    2,886,170       183,185,210  

U.S. Bancorp

    3,355,178       202,552,096  

United Bankshares Inc./WV

    2,522,764       93,317,040  

Valley National Bancorp

    7,616,406       100,993,543  
   

 

 

 
          2,224,789,782  
Beverages — 1.1%            

Coca-Cola Co. (The)

    3,580,348       201,824,217  
   

 

 

 
Biotechnology — 1.4%            

Gilead Sciences Inc.

    3,886,678       252,167,669  
   

 

 

 
Capital Markets — 3.4%            

Federated Hermes Inc.

    1,712,834       57,054,501  

Franklin Resources Inc.

    5,277,833       166,198,961  

Invesco Ltd.

    5,902,417       149,980,416  

Janus Henderson Group PLC

    3,321,097       154,431,010  

Lazard Ltd., Class A

    2,190,217       107,298,731  
   

 

 

 
      634,963,619  
Chemicals — 2.6%            

CF Industries Holdings Inc.

    2,883,289       163,770,815  

Huntsman Corp.

    4,018,539       130,924,001  

LyondellBasell Industries NV, Class A

    2,009,103       186,484,940  
   

 

 

 
      481,179,756  
Containers & Packaging — 3.1%            

International Paper Co.

    4,059,571       201,638,892  

Packaging Corp. of America

    1,155,660       158,753,014  

Sonoco Products Co.

    2,020,969       117,115,153  

Westrock Co.

    1,872,206       90,053,109  
   

 

 

 
      567,560,168  
Distributors — 1.0%            

Genuine Parts Co.

    1,443,039       189,196,843  
   

 

 

 
Diversified Consumer Services — 0.5%  

H&R Block Inc.

    3,632,435       83,800,275  
   

 

 

 
Diversified Telecommunication Services — 4.2%  

AT&T Inc.

    13,354,740       337,340,733  

Lumen Technologies Inc.

    18,520,240       219,650,046  

Verizon Communications Inc.

    4,270,333       226,284,946  
   

 

 

 
      783,275,725  
Electric Utilities — 15.8%  

Alliant Energy Corp.

    3,717,176       210,280,646  

American Electric Power Co. Inc.

    2,615,417       221,551,974  

Edison International

    4,527,490       284,914,946  

Entergy Corp.

    2,489,173       256,434,602  

Eversource Energy

    1,992,085       169,128,017  

Exelon Corp.

    5,085,131       270,478,118  
Security   Shares     Value  
Electric Utilities (continued)  

FirstEnergy Corp.

    7,316,797     $ 281,916,188  

IDACORP Inc.

    973,439       101,549,157  

NextEra Energy Inc.

    1,511,853       129,006,417  

NRG Energy Inc.

    4,636,556       184,952,219  

OGE Energy Corp.

    3,863,888       131,642,664  

Pinnacle West Capital Corp.

    2,126,656       137,148,045  

PPL Corp.

    12,395,645       356,994,576  

Xcel Energy Inc.

    2,697,782       174,249,739  
   

 

 

 
          2,910,247,308  
Electrical Equipment — 1.5%            

Eaton Corp. PLC

    901,148       148,473,145  

Emerson Electric Co.

    1,376,811       133,564,435  
   

 

 

 
      282,037,580  
Food & Staples Retailing — 1.1%            

Walgreens Boots Alliance Inc.

    4,147,347       195,008,256  
   

 

 

 
Food Products — 1.1%            

General Mills Inc.

    3,400,829       210,171,232  
   

 

 

 
Gas Utilities — 0.8%            

New Jersey Resources Corp.

    1,959,216       74,077,957  

Southwest Gas Holdings Inc.

    1,104,914       76,515,294  
   

 

 

 
      150,593,251  
Hotels, Restaurants & Leisure — 0.8%  

McDonald’s Corp.

    630,711       154,871,086  
   

 

 

 
Household Durables — 2.2%            

Garmin Ltd.

    833,436       119,681,410  

Leggett & Platt Inc.

    2,463,577       115,418,582  

Newell Brands Inc.

    7,328,736       167,754,767  
   

 

 

 
      402,854,759  
Household Products — 1.0%            

Kimberly-Clark Corp.

    1,419,403       183,798,494  
   

 

 

 
Insurance — 7.5%            

Cincinnati Financial Corp.

    1,302,720       158,202,317  

Fidelity National Financial Inc.

    4,988,072       238,978,530  

MetLife Inc.

    2,837,858       178,217,482  

Old Republic International Corp.

    5,359,274       138,430,047  

Principal Financial Group Inc.

    3,470,040       232,804,984  

Prudential Financial Inc.

    3,069,642       337,814,102  

Unum Group

    3,865,993       98,466,842  
   

 

 

 
      1,382,914,304  
IT Services — 2.4%            

International Business Machines Corp.

    2,302,419       288,032,617  

Western Union Co. (The)

    8,221,789       149,800,996  
   

 

 

 
      437,833,613  
Machinery — 0.5%            

Caterpillar Inc.

    464,331       94,728,167  
   

 

 

 
Media — 2.5%            

Interpublic Group of Companies Inc. (The)

    7,395,622       270,457,896  

Omnicom Group Inc.

    2,857,261       194,522,329  
   

 

 

 
      464,980,225  
Metals & Mining — 1.1%            

Newmont Corp.

    3,734,280       201,651,120  
   

 

 

 
Multi-Utilities — 9.7%            

Avista Corp.

    1,338,521       53,286,521  

Black Hills Corp.

    1,207,792       80,173,233  
 

 

 

C H E D U L E    O F    N V E S T  M E N T S

  23


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Select Dividend ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Multi-Utilities (continued)            

CenterPoint Energy Inc.

    8,292,657     $ 215,940,788  

CMS Energy Corp.

    3,024,886       182,551,870  

Dominion Energy Inc.

    2,705,699       205,443,725  

DTE Energy Co.

    1,568,461       177,785,055  

NiSource Inc.

    7,923,203       195,465,418  

NorthWestern Corp.

    1,011,909       57,537,146  

Public Service Enterprise Group Inc.

    3,524,732       224,877,902  

Sempra Energy

    1,610,686       205,571,854  

WEC Energy Group Inc.

    2,069,188       186,351,071  
   

 

 

 
      1,784,984,583  
Oil, Gas & Consumable Fuels — 9.3%  

Chevron Corp.

    2,488,164       284,869,896  

DTE Midstream LLC(a)

    787,092       37,748,932  

Exxon Mobil Corp.

    5,564,672       358,754,404  

Marathon Petroleum Corp.

    3,920,663       258,489,312  

ONEOK Inc.

    8,183,062       520,606,405  

Valero Energy Corp.

    3,360,788       259,889,736  
   

 

 

 
      1,720,358,685  
Pharmaceuticals — 3.0%            

Merck & Co. Inc.

    2,571,845       226,450,952  

Organon & Co.

    263,028       9,666,279  

Pfizer Inc.

    7,161,566       313,246,897  
   

 

 

 
      549,364,128  
Semiconductors & Semiconductor Equipment — 1.1%  

Intel Corp.

    1,974,673       96,758,977  

QUALCOMM Inc.

    802,373       106,747,704  
   

 

 

 
      203,506,681  
Technology Hardware, Storage & Peripherals — 2.1%  

HP Inc.

    4,752,785       144,151,969  

Seagate Technology Holdings PLC

    2,622,935       233,624,821  
   

 

 

 
      377,776,790  
Security   Shares     Value  
Textiles, Apparel & Luxury Goods — 0.6%  

Hanesbrands Inc.

    6,573,390     $ 112,010,566  
   

 

 

 
Thrifts & Mortgage Finance — 0.6%            

New York Community Bancorp. Inc.

    9,478,480       117,817,506  
   

 

 

 
Tobacco — 3.9%            

Altria Group Inc.

    8,790,673       387,756,586  

Philip Morris International Inc.

    3,536,196       334,311,970  
   

 

 

 
      722,068,556  
Trading Companies & Distributors — 1.0%  

Watsco Inc.

    649,407       188,055,279  
   

 

 

 

Total Common Stocks — 99.8%
(Cost: $15,662,134,581)

 

        18,431,302,029  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 0.1%  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(b)(c)

    20,210,000       20,210,000  
   

 

 

 

Total Short-Term Investments — 0.1%
(Cost: $20,210,000)

 

    20,210,000  
   

 

 

 

Total Investments in Securities — 99.9%
(Cost: $15,682,344,581)

 

    18,451,512,029  

Other Assets, Less Liabilities — 0.1%

 

    27,548,541  
   

 

 

 

Net Assets — 100.0%

 

  $ 18,479,060,570  
   

 

 

 

 

(a) 

Non-income producing security.

(b)

Affiliate of the Fund.

(c) Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
   

Value at
10/31/21

    Shares
Held at
10/31/21
   

Income

    Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Treasury, SL Agency Shares

  $ 28,250,000     $     $ (8,040,000 )(a)    $     $     $ 20,210,000       20,210,000     $ 866     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a)

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description   Number of
Contracts
    Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

       

E-Mini Energy Select Sector Index

    126       12/17/21     $ 7,525     $ (87,364

 

 

24  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Select Dividend ETF

 

Futures Contracts (continued)

 

Description   Number of
Contracts
    Expiration
Date
    Notional
Amount
(000)
    Value/
Unrealized
Appreciation
(Depreciation)
 

E-Mini Financial Select Sector Index

    167       12/17/21     $ 20,672     $ (9,936

E-Mini Utilities Select Sector Index

    269       12/17/21       18,123       (3,337
       

 

 

 
        $ (100,637
       

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

     Equity
Contracts
 

Liabilities — Derivative Financial Instruments

 

Futures contracts

 

Unrealized depreciation on futures contracts(a)

  $ 100,637  
 

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 6,295,886  
  

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:       

Futures contracts

   $ (2,593,438
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 47,031,683  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 18,431,302,029        $        $        $ 18,431,302,029  

Money Market Funds

     20,210,000                            20,210,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 18,451,512,029        $        $        $ 18,451,512,029  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Liabilities

                 

Futures Contracts

   $ (100,637      $             —        $             —        $ (100,637
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E    O F    N V E S T  M E N T S

  25


Schedule of Investments  (unaudited) 

October 31, 2021

  

iShares® U.S. Dividend and Buyback ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 1.5%            

General Dynamics Corp.

    1,254     $ 254,249  

L3Harris Technologies Inc.

    1,418       326,906  

Lockheed Martin Corp.

    1,585       526,727  

Northrop Grumman Corp.

    915       326,856  

Raytheon Technologies Corp.

    5,965       530,050  
   

 

 

 
      1,964,788  
Air Freight & Logistics — 0.4%            

CH Robinson Worldwide Inc.

    912       88,455  

United Parcel Service Inc., Class B

    2,186       466,645  
   

 

 

 
      555,100  
Airlines — 0.0%            

Delta Air Lines Inc.(a)

    1,371       53,647  
   

 

 

 
Banks — 10.4%            

Bank of America Corp.

    63,830       3,049,797  

Citigroup Inc.

    25,709       1,778,034  

Citizens Financial Group Inc.

    4,246       201,175  

Comerica Inc.

    1,857       158,012  

Fifth Third Bancorp

    4,908       213,645  

Huntington Bancshares Inc./OH

    9,748       153,434  

JPMorgan Chase & Co.

    23,338       3,964,893  

KeyCorp

    8,680       201,984  

M&T Bank Corp.

    1,060       155,947  

People’s United Financial Inc.

    4,027       69,023  

PNC Financial Services Group Inc. (The)

    2,731       576,323  

Regions Financial Corp.

    4,272       101,161  

Truist Financial Corp.

    7,583       481,293  

U.S. Bancorp

    12,832       774,668  

Wells Fargo & Co.

    37,722       1,929,858  

Zions Bancorp. NA

    1,493       94,044  
   

 

 

 
      13,903,291  
Beverages — 1.5%            

Coca-Cola Co. (The)

    15,091       850,680  

Constellation Brands Inc., Class A

    458       99,299  

PepsiCo Inc.

    6,605       1,067,368  
   

 

 

 
      2,017,347  
Biotechnology — 3.0%            

AbbVie Inc.

    12,486       1,431,770  

Amgen Inc.

    5,088       1,053,063  

Biogen Inc.(a)

    2,287       609,897  

Gilead Sciences Inc.

    8,555       555,048  

Regeneron Pharmaceuticals Inc.(a)

    501       320,610  

Vertex Pharmaceuticals Inc.(a)

    474       87,657  
   

 

 

 
      4,058,045  
Building Products — 0.6%            

Carlisle Companies Inc.

    345       76,908  

Johnson Controls International PLC

    5,228       383,578  

Masco Corp.

    2,960       194,028  

Trane Technologies PLC

    786       142,211  
   

 

 

 
      796,725  
Capital Markets — 4.5%            

Affiliated Managers Group Inc.

    403       67,656  

Ameriprise Financial Inc.

    1,163       351,377  

Bank of New York Mellon Corp. (The)

    7,927       469,278  

BlackRock Inc.(b)

    528       498,147  

Blackstone Inc., NVS

    2,827       391,313  

Charles Schwab Corp. (The)

    2,963       243,055  
Security   Shares     Value  
Capital Markets (continued)            

CME Group Inc.

    911     $ 200,921  

Franklin Resources Inc.

    1,928       60,713  

Goldman Sachs Group Inc. (The)

    2,134       882,089  

Intercontinental Exchange Inc.

    2,032       281,351  

Invesco Ltd.

    2,388       60,679  

Janus Henderson Group PLC

    1,369       63,658  

Jefferies Financial Group Inc.

    2,476       106,468  

KKR & Co. Inc.

    1,153       91,860  

Moody’s Corp.

    359       145,090  

Morgan Stanley

    9,205       946,090  

MSCI Inc.

    162       107,711  

Northern Trust Corp.

    1,346       165,612  

Raymond James Financial Inc.

    668       65,858  

S&P Global Inc.

    496       235,183  

State Street Corp.

    3,164       311,812  

T Rowe Price Group Inc.

    1,159       251,364  
   

 

 

 
      5,997,285  
Chemicals — 2.1%            

Air Products & Chemicals Inc.

    656       196,675  

Celanese Corp.

    1,051       169,747  

CF Industries Holdings Inc.

    1,220       69,296  

Corteva Inc.

    2,590       111,759  

Dow Inc.

    4,991       279,346  

DuPont de Nemours Inc.

    3,084       214,646  

Eastman Chemical Co.

    652       67,828  

Ecolab Inc.

    345       76,666  

International Flavors & Fragrances Inc.

    710       104,690  

Linde PLC

    2,255       719,796  

LyondellBasell Industries NV, Class A

    3,571       331,460  

PPG Industries Inc.

    497       79,803  

Sherwin-Williams Co. (The)

    1,130       357,769  
   

 

 

 
      2,779,481  
Commercial Services & Supplies — 0.3%            

Cintas Corp.

    310       134,261  

Republic Services Inc.

    523       70,396  

Waste Management Inc.

    1,155       185,065  
   

 

 

 
      389,722  
Communications Equipment — 1.0%            

Cisco Systems Inc.

    20,339       1,138,374  

Juniper Networks Inc.

    3,190       94,169  

Motorola Solutions Inc.

    496       123,300  
   

 

 

 
      1,355,843  
Consumer Finance — 1.3%            

Ally Financial Inc.

    2,853       136,202  

American Express Co.

    2,759       479,459  

Capital One Financial Corp.

    2,229       336,646  

Discover Financial Services

    1,725       195,477  

Navient Corp.

    3,434       67,650  

OneMain Holdings Inc.

    1,566       82,701  

SLM Corp.

    6,684       122,651  

Synchrony Financial

    6,421       298,255  
   

 

 

 
      1,719,041  
Containers & Packaging — 0.1%            

Ball Corp.

    857       78,399  

International Paper Co.

    2,299       114,191  
   

 

 

 
      192,590  
Distributors — 0.1%            

Genuine Parts Co.

    753       98,726  
   

 

 

 
 

 

 

26  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Dividend and Buyback ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified Consumer Services — 0.1%            

Service Corp. International

    1,187     $ 81,298  
   

 

 

 
Diversified Financial Services — 2.0%            

Berkshire Hathaway Inc., Class B(a)

    8,291       2,379,600  

Equitable Holdings Inc.

    4,815       161,302  

Voya Financial Inc.

    1,644       114,702  
   

 

 

 
      2,655,604  
Diversified Telecommunication Services — 2.9%            

AT&T Inc.

    94,094       2,376,814  

Lumen Technologies Inc.

    11,496       136,343  

Verizon Communications Inc.

    26,393       1,398,565  
   

 

 

 
      3,911,722  
Electric Utilities — 1.2%            

American Electric Power Co. Inc.

    1,923       162,897  

Duke Energy Corp.

    1,901       193,921  

Evergy Inc.

    892       56,865  

Exelon Corp.

    4,146       220,526  

FirstEnergy Corp.

    3,046       117,362  

NextEra Energy Inc.

    3,637       310,345  

NRG Energy Inc.

    1,888       75,312  

PPL Corp.

    3,190       91,872  

Southern Co. (The)

    5,195       323,753  
   

 

 

 
      1,552,853  
Electrical Equipment — 0.5%            

Eaton Corp. PLC

    1,995       328,696  

Emerson Electric Co.

    2,627       254,845  

Rockwell Automation Inc.

    379       121,053  
   

 

 

 
      704,594  
Electronic Equipment, Instruments & Components — 0.5%            

Amphenol Corp., Class A

    1,844       141,564  

Arrow Electronics Inc.(a)

    665       76,974  

CDW Corp./DE

    646       120,576  

Corning Inc.

    3,652       129,901  

TE Connectivity Ltd.

    1,190       173,740  
   

 

 

 
      642,755  
Energy Equipment & Services — 0.2%            

Baker Hughes Co.

    3,227       80,933  

Schlumberger NV

    3,940       127,105  
   

 

 

 
      208,038  
Entertainment — 0.1%            

Electronic Arts Inc.

    1,064       149,226  
   

 

 

 
Equity Real Estate Investment Trusts
(REITs) — 1.4%
           

American Tower Corp.

    486       137,038  

AvalonBay Communities Inc.

    529       125,204  

Boston Properties Inc.

    663       75,343  

Crown Castle International Corp.

    1,646       296,774  

Equity Residential

    1,379       119,146  

Essex Property Trust Inc.

    270       91,781  

Iron Mountain Inc.

    2,063       94,155  

Mid-America Apartment Communities Inc.

    333       68,002  

Prologis Inc.

    1,825       264,552  

Public Storage

    503       167,087  

SBA Communications Corp.

    356       122,938  

Simon Property Group Inc.

    1,030       150,977  

SL Green Realty Corp.

    1,519       106,436  

Welltower Inc.

    546       43,898  

WP Carey Inc.

    929       71,635  
   

 

 

 
      1,934,966  
Security   Shares     Value  
Food & Staples Retailing — 1.2%            

Costco Wholesale Corp.

    489     $ 240,363  

Kroger Co. (The)

    5,026       201,141  

Sysco Corp.

    2,457       188,943  

Walgreens Boots Alliance Inc.

    5,835       274,362  

Walmart Inc.

    4,575       683,596  
   

 

 

 
      1,588,405  
Food Products — 1.1%            

Archer-Daniels-Midland Co.

    2,140       137,474  

Conagra Brands Inc.

    2,887       92,961  

General Mills Inc.

    3,288       203,199  

Hershey Co. (The)

    742       130,110  

JM Smucker Co. (The)

    856       105,168  

Kellogg Co.

    1,306       80,058  

Kraft Heinz Co. (The)

    3,915       140,509  

Mondelez International Inc., Class A

    8,000       485,920  

Tyson Foods Inc., Class A

    1,226       98,043  
   

 

 

 
      1,473,442  
Health Care Equipment & Supplies — 1.0%            

Abbott Laboratories

    4,171       537,600  

Baxter International Inc.

    2,226       175,765  

Edwards Lifesciences Corp.(a)

    592       70,933  

Hologic Inc.(a)

    919       67,372  

Medtronic PLC

    3,661       438,808  

Stryker Corp.

    402       106,960  
   

 

 

 
      1,397,438  
Health Care Providers & Services — 3.0%            

AmerisourceBergen Corp.

    529       64,549  

Anthem Inc.

    1,242       540,431  

Cardinal Health Inc.

    2,198       105,086  

Cigna Corp.

    3,078       657,492  

CVS Health Corp.

    4,266       380,868  

DaVita Inc.(a)

    1,553       160,332  

HCA Healthcare Inc.

    1,157       289,782  

Humana Inc.

    607       281,138  

McKesson Corp.

    1,135       235,944  

Quest Diagnostics Inc.

    1,363       200,061  

UnitedHealth Group Inc.

    2,550       1,174,199  
   

 

 

 
      4,089,882  
Health Care Technology — 0.1%            

Cerner Corp.

    2,505       186,096  
   

 

 

 
Hotels, Restaurants & Leisure — 1.6%            

Booking Holdings Inc.(a)

    126       305,018  

Domino’s Pizza Inc.

    306       149,625  

Expedia Group Inc.(a)

    587       96,509  

Hilton Worldwide Holdings Inc.(a)

    669       96,303  

Marriott International Inc./MD, Class A(a)

    507       81,130  

McDonald’s Corp.

    3,374       828,486  

Starbucks Corp.

    4,519       479,330  

Yum! Brands Inc.

    1,313       164,046  
   

 

 

 
      2,200,447  
Household Durables — 0.3%            

DR Horton Inc.

    1,183       105,607  

Lennar Corp., Class A

    770       76,946  

NVR Inc.(a)

    20       97,896  

Toll Brothers Inc.

    1,055       63,479  

Whirlpool Corp.

    312       65,779  
   

 

 

 
      409,707  
 

 

 

C H E D U L E    O F    N V E S T  M E N T S

  27


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Dividend and Buyback ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Household Products — 2.4%            

Church & Dwight Co. Inc.

    526     $ 45,951  

Clorox Co. (The)

    928       151,273  

Colgate-Palmolive Co.

    5,153       392,607  

Kimberly-Clark Corp.

    2,216       286,950  

Procter & Gamble Co. (The)

    16,727       2,391,794  
   

 

 

 
      3,268,575  
Independent Power and Renewable Electricity
Producers — 0.0%
       

Vistra Corp.

    2,729       53,461  
   

 

 

 
Industrial Conglomerates — 1.0%            

3M Co.

    3,064       547,475  

Honeywell International Inc.

    3,679       804,303  
   

 

 

 
      1,351,778  
Insurance — 3.3%            

Aflac Inc.

    6,032       323,737  

Allstate Corp. (The)

    3,132       387,334  

American International Group Inc.

    4,178       246,878  

Aon PLC, Class A

    904       289,208  

Assured Guaranty Ltd.

    1,554       86,371  

Brighthouse Financial Inc.(a)

    1,344       67,509  

Chubb Ltd.

    2,515       491,381  

Cincinnati Financial Corp.

    624       75,779  

Fidelity National Financial Inc.

    2,039       97,689  

Hartford Financial Services Group Inc. (The)

    2,034       148,340  

Lincoln National Corp.

    1,407       101,515  

Loews Corp.

    2,273       127,447  

Marsh & McLennan Companies Inc.

    1,111       185,315  

MetLife Inc.

    7,384       463,715  

Principal Financial Group Inc.

    2,002       134,314  

Progressive Corp. (The)

    4,451       422,311  

Prudential Financial Inc.

    4,566       502,488  

Travelers Companies Inc. (The)

    1,733       278,805  
   

 

 

 
      4,430,136  
Interactive Media & Services — 4.2%            

Alphabet Inc., Class A(a)

    783       2,318,400  

Alphabet Inc., Class C, NVS(a)

    739       2,191,438  

Meta Platforms Inc, Class A(a)

    3,649       1,180,707  
   

 

 

 
      5,690,545  
Internet & Direct Marketing Retail — 0.5%            

eBay Inc.

    8,654       663,935  
   

 

 

 
IT Services — 4.0%            

Accenture PLC, Class A

    1,801       646,181  

Automatic Data Processing Inc.

    1,878       421,592  

Cognizant Technology Solutions Corp., Class A

    3,276       255,823  

Fidelity National Information Services Inc.

    1,544       170,983  

Fiserv Inc.(a)

    1,747       172,062  

FleetCor Technologies Inc.(a)

    445       110,097  

Global Payments Inc.

    920       131,551  

GoDaddy Inc., Class A(a)

    1,184       81,897  

International Business Machines Corp.

    6,269       784,252  

Mastercard Inc., Class A

    2,425       813,636  

Paychex Inc.

    1,125       138,690  

PayPal Holdings Inc.(a)

    861       200,260  

VeriSign Inc.(a)

    429       95,525  

Visa Inc., Class A

    6,275       1,328,857  

Western Union Co. (The)

    4,438       80,860  
   

 

 

 
      5,432,266  
Security   Shares     Value  
Life Sciences Tools & Services — 0.6%            

Agilent Technologies Inc.

    639     $ 100,636  

IQVIA Holdings Inc.(a)

    303       79,210  

Mettler-Toledo International Inc.(a)

    72       106,623  

Thermo Fisher Scientific Inc.

    610       386,173  

Waters Corp.(a)

    274       100,709  
   

 

 

 
      773,351  
Machinery — 1.2%            

Caterpillar Inc.

    2,488       507,577  

Cummins Inc.

    1,321       316,829  

Deere & Co.

    840       287,540  

Illinois Tool Works Inc.

    1,337       304,662  

PACCAR Inc.

    858       76,894  

Parker-Hannifin Corp.

    343       101,730  
   

 

 

 
      1,595,232  
Media — 1.7%            

Altice USA Inc., Class A(a)

    12,607       205,494  

Charter Communications Inc., Class A(a)

    1,494       1,008,286  

Comcast Corp., Class A

    10,210       525,100  

Discovery Inc., Class C, NVS(a)

    2,559       57,731  

Liberty Broadband Corp., Class C, NVS(a)

    824       133,859  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    2,209       108,948  

Omnicom Group Inc.

    1,506       102,528  

Sirius XM Holdings Inc.

    11,373       69,262  
   

 

 

 
      2,211,208  
Metals & Mining — 0.3%            

Newmont Corp.

    4,760       257,040  

Nucor Corp.

    1,248       139,339  
   

 

 

 
      396,379  
Mortgage Real Estate Investment — 0.3%            

AGNC Investment Corp.

    7,902       125,800  

Annaly Capital Management Inc.

    19,970       168,946  

Starwood Property Trust Inc.

    3,160       80,485  
   

 

 

 
      375,231  
Multi-Utilities — 0.6%            

Consolidated Edison Inc.

    643       48,482  

Dominion Energy Inc.

    4,653       353,302  

Public Service Enterprise Group Inc.

    2,206       140,743  

Sempra Energy

    777       99,169  

WEC Energy Group Inc.

    1,320       118,879  
   

 

 

 
      760,575  
Multiline Retail — 0.7%            

Dollar General Corp.

    1,780       394,306  

Target Corp.

    2,100       545,202  
   

 

 

 
      939,508  
Oil, Gas & Consumable Fuels — 5.4%            

Chevron Corp.

    14,733       1,686,781  

ConocoPhillips

    10,151       756,148  

Devon Energy Corp.

    2,833       113,547  

EOG Resources Inc.

    1,957       180,944  

Exxon Mobil Corp.

    38,774       2,499,760  

Kinder Morgan Inc.

    18,141       303,862  

Marathon Petroleum Corp.

    5,401       356,088  

ONEOK Inc.

    3,092       196,713  

Ovintiv Inc.

    1,024       38,421  

Phillips 66

    4,435       331,649  

Pioneer Natural Resources Co.

    690       129,016  

Valero Energy Corp.

    4,283       331,204  
 

 

 

28  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Dividend and Buyback ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

Williams Companies Inc. (The)

    11,022     $ 309,608  
   

 

 

 
      7,233,741  
Personal Products — 0.2%            

Estee Lauder Companies Inc. (The), Class A

    538       174,490  

Herbalife Nutrition Ltd.(a)

    1,598       74,147  
   

 

 

 
      248,637  
Pharmaceuticals — 4.7%            

Bristol-Myers Squibb Co.

    21,964       1,282,698  

Eli Lilly & Co.

    1,862       474,363  

Johnson & Johnson

    11,829       1,926,707  

Merck & Co. Inc.

    15,703       1,382,649  

Pfizer Inc.

    26,012       1,137,765  

Zoetis Inc.

    604       130,585  
   

 

 

 
      6,334,767  
Professional Services — 0.2%            

IHS Markit Ltd.

    1,014       132,550  

Verisk Analytics Inc.

    387       81,375  
   

 

 

 
      213,925  
Road & Rail — 1.6%            

CSX Corp.

    12,139       439,068  

Kansas City Southern

    247       76,632  

Norfolk Southern Corp.

    1,659       486,170  

Union Pacific Corp.

    4,956       1,196,378  
   

 

 

 
      2,198,248  
Semiconductors & Semiconductor
Equipment — 4.8%
           

Analog Devices Inc.

    1,631       282,962  

Applied Materials Inc.

    2,488       339,985  

Broadcom Inc.

    1,867       992,628  

Intel Corp.

    46,547       2,280,803  

KLA Corp.

    569       212,100  

Lam Research Corp.

    661       372,520  

NXP Semiconductors NV

    1,288       258,708  

Qorvo Inc.(a)

    446       75,031  

QUALCOMM Inc.

    5,398       718,150  

Skyworks Solutions Inc.

    694       115,988  

Texas Instruments Inc.

    3,821       716,361  

Xilinx Inc.

    540       97,200  
   

 

 

 
      6,462,436  
Software — 7.0%            

Adobe Inc.(a)

    601       390,866  

Citrix Systems Inc.

    1,209       114,529  

Fortinet Inc.(a)

    222       74,667  

Intuit Inc.

    267       167,139  

Microsoft Corp.

    18,822       6,241,752  

NortonLifeLock Inc.

    4,860       123,687  

Oracle Corp.

    21,750       2,086,695  

Palo Alto Networks Inc.(a)

    307       156,291  

VMware Inc., Class A(a)

    672       101,942  
   

 

 

 
      9,457,568  
Specialty Retail — 3.4%            

Advance Auto Parts Inc.

    569       128,321  

AutoZone Inc.(a)

    144       257,017  
Security   Shares     Value  
Specialty Retail (continued)            

Best Buy Co. Inc.

    1,946     $ 237,879  

Home Depot Inc. (The)

    5,222       1,941,226  

Lowe’s Companies Inc.

    5,595       1,308,223  

O’Reilly Automotive Inc.(a)

    417       259,508  

Ross Stores Inc.

    779       88,183  

TJX Companies Inc. (The)

    2,807       183,830  

Tractor Supply Co.

    449       97,509  

Ulta Beauty Inc.(a)

    197       72,370  
   

 

 

 
      4,574,066  
Technology Hardware, Storage &
Peripherals — 5.8%
           

Apple Inc.

    41,564       6,226,287  

Dell Technologies Inc., Class C(a)

    2,207       242,748  

Hewlett Packard Enterprise Co.

    9,092       133,198  

HP Inc.

    23,102       700,684  

NetApp Inc.

    1,680       150,024  

Seagate Technology Holdings PLC

    2,965       264,092  

Xerox Holdings Corp.

    3,881       69,082  
   

 

 

 
      7,786,115  
Textiles, Apparel & Luxury Goods — 0.4%            

Nike Inc., Class B

    2,383       398,652  

VF Corp.

    1,860       135,557  
   

 

 

 
      534,209  
Tobacco — 1.3%            

Altria Group Inc.

    19,031       839,458  

Philip Morris International Inc.

    10,067       951,734  
   

 

 

 
      1,791,192  
Trading Companies & Distributors — 0.2%            

Fastenal Co.

    1,683       96,066  

United Rentals Inc.(a)

    152       57,625  

WW Grainger Inc.

    256       118,556  
   

 

 

 
      272,247  
   

 

 

 

Total Common Stocks — 99.8%
(Cost: $116,543,676)

      134,117,435  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 0.2%

   

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(b)(c)

    250,000       250,000  
   

 

 

 

Total Short-Term Investments — 0.2%
(Cost: $250,000)

 

    250,000  
   

 

 

 

Total Investments in Securities — 100.0%
(Cost: $116,793,676)

 

    134,367,435  

Other Assets, Less Liabilities — 0.0%

 

    27,968  
   

 

 

 

Net Assets — 100.0%

 

  $ 134,395,403  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

 

 

 

C H E D U L E    O F    N V E S T  M E N T S

  29


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Dividend and Buyback ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income      Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $ 150,000      $ 100,000 (a)     $      $      $      $ 250,000        250,000      $ 5      $  

BlackRock Inc.

     290,852        266,169        (111,924      22,894        30,156        498,147        528        3,684         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 22,894      $ 30,156      $ 748,147         $ 3,689      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount
(000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

                 

Micro E-Mini S&P 500

     10          12/17/21        $ 230        $ 9,136  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 9,136  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 24,419  
  

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:       

Futures contracts

   $ 2,736  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — long

   $ 226,664      

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

 

 

30  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® U.S. Dividend and Buyback ETF

 

Fair Value Hierarchy as of Period End (continued)

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Investments

                 

Assets

                 

Common Stocks

   $ 134,117,435        $        $        $ 134,117,435  

Money Market Funds

     250,000                            250,000  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 134,367,435        $        $        $ 134,367,435  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 9,136        $             —        $             —        $ 9,136  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E    O F    N V E S T  M E N T S

  31


Statements of Assets and Liabilities (unaudited)

October 31, 2021

  

    

 

    

iShares

Core Dividend

Growth ETF

    

iShares

Core High

Dividend ETF

   

iShares

International Select

Dividend ETF

    iShares
Select Dividend ETF
 

ASSETS

        

Investments in securities, at value:

        

Unaffiliated(a)

  $ 20,886,052,273      $ 7,397,440,166     $ 4,338,932,546     $ 18,431,302,029  

Affiliated(b)

    212,994,903        11,570,000       2,270,000       20,210,000  

Cash

    9,842        8,667       3,705       9,718  

Foreign currency, at value(c)

                 11,587,858        

Cash pledged:

        

Futures contracts

    2,195,400        786,600             1,927,200  

Foreign currency collateral pledged:

        

Futures contracts(d)

                 3,021,612        

Receivables:

        

Investments sold

           121,343              

Securities lending income — Affiliated

                 945,116        

Variation margin on futures contracts

    98,729                     

Capital shares sold

    14,784                    96,471  

Dividends

    29,661,610        27,583,539       12,216,134       31,738,041  

Tax reclaims

                 11,494,244        
 

 

 

    

 

 

   

 

 

   

 

 

 

Total assets

    21,131,027,541        7,437,510,315       4,380,471,215       18,485,283,459  
 

 

 

    

 

 

   

 

 

   

 

 

 

LIABILITIES

        

Payables:

        

Investments purchased

    40,005,435        20,047,152       470,483       27,566  

Variation margin on futures contracts

           14,104       61,716       214,326  

Capital shares redeemed

           172,721             92,458  

Investment advisory fees

    1,392,591        498,702       1,794,959       5,888,539  

Professional fees

                 854,828        
 

 

 

    

 

 

   

 

 

   

 

 

 

Total liabilities

    41,398,026        20,732,679       3,181,986       6,222,889  
 

 

 

    

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 21,089,629,515      $ 7,416,777,636     $ 4,377,289,229     $ 18,479,060,570  
 

 

 

    

 

 

   

 

 

   

 

 

 

NET ASSETS CONSIST OF:

        

Paid-in capital

  $ 16,319,377,133      $ 7,701,507,624     $ 5,175,789,958     $ 15,946,704,639  

Accumulated earnings (loss)

    4,770,252,382        (284,729,988     (798,500,729     2,532,355,931  
 

 

 

    

 

 

   

 

 

   

 

 

 

NET ASSETS

  $ 21,089,629,515      $ 7,416,777,636     $ 4,377,289,229     $ 18,479,060,570  
 

 

 

    

 

 

   

 

 

   

 

 

 

Shares outstanding

    397,050,000        75,400,000       140,500,000       156,600,000  
 

 

 

    

 

 

   

 

 

   

 

 

 

Net asset value

  $ 53.12      $ 98.37     $ 31.16     $ 118.00  
 

 

 

    

 

 

   

 

 

   

 

 

 

Shares authorized

    Unlimited        Unlimited       Unlimited       Unlimited  
 

 

 

    

 

 

   

 

 

   

 

 

 

Par value

    None        None       None       None  
 

 

 

    

 

 

   

 

 

   

 

 

 

(a) Investments, at cost — Unaffiliated

  $ 16,143,837,639      $ 6,745,203,578     $ 3,935,671,302     $ 15,662,134,581  

(b) Investments, at cost — Affiliated

  $ 148,179,363      $ 11,570,000     $ 2,270,000     $ 20,210,000  

(c)  Foreign currency, at cost

  $      $     $ 11,475,212     $  

(d) Foreign currency collateral pledged, at cost

  $      $     $ 3,107,892     $  

See notes to financial statements.

 

 

32  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Statement of Assets and Liabilities (unaudited) (continued)

October 31, 2021

 

    

iShares

U.S. Dividend

and Buyback

ETF

 

ASSETS

 

Investments in securities, at value:

 

Unaffiliated(a)

  $ 133,619,288  

Affiliated(b)

    748,147  

Cash

    1,190  

Cash pledged:

 

Futures contracts

    12,000  

Receivables:

 

Securities lending income — Affiliated

    1  

Variation margin on futures contracts

    494  

Dividends

    203,032  
 

 

 

 

Total assets

    134,584,152  
 

 

 

 

LIABILITIES

 

Payables:

 

Investments purchased

    162,051  

Investment advisory fees

    26,698  
 

 

 

 

Total liabilities

    188,749  
 

 

 

 

NET ASSETS

  $ 134,395,403  
 

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

  $ 114,958,081  

Accumulated earnings

    19,437,322  
 

 

 

 

NET ASSETS

  $ 134,395,403  
 

 

 

 

Shares outstanding

    3,250,000  
 

 

 

 

Net asset value

  $ 41.35  
 

 

 

 

Shares authorized

    Unlimited  
 

 

 

 

Par value

    None  
 

 

 

 

(a) Investments, at cost — Unaffiliated

  $ 116,151,110  

(b) Investments, at cost — Affiliated

  $ 642,566  

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

  33


Statements of Operations (unaudited) 

Six Months Ended October 31, 2021

       

 

    

iShares

Core Dividend

Growth ETF

   

iShares

Core High

Dividend ETF

   

iShares

International

Select

Dividend ETF

   

iShares

Select

Dividend ETF

 

INVESTMENT INCOME

       

Dividends — Unaffiliated

  $ 218,730,462     $ 145,018,838     $ 148,878,474     $ 360,779,596  

Dividends — Affiliated

    1,365,431       305       92       866  

Securities lending income — Affiliated — net

                989,236        

Other income — Unaffiliated

                1,206,745        

Foreign taxes withheld

    (10,234           (9,298,022      

Foreign withholding tax claims

                7,522,197        
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    220,085,659       145,019,143       149,298,722       360,780,462  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    7,987,821       2,895,244       10,871,993       34,993,803  

Commitment fees

                9,296        

Professional fees

                872,897        

Miscellaneous

                173        
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    7,987,821       2,895,244       11,754,359       34,993,803  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    212,097,838       142,123,899       137,544,363       325,786,659  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated

    (10,092,814     79,946,533       (12,431,266     (23,234,715

Investments — Affiliated

    (395,855           1,302        

In-kind redemptions — Unaffiliated

    499,924,929       45,438,883       4,224,238       291,585,661  

In-kind redemptions — Affiliated

    3,650,487                    

Futures contracts

    7,132,495       3,170,200       1,718,665       6,295,886  

Foreign currency transactions

                (656,876      
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain (loss)

    500,219,242       128,555,616       (7,143,937     274,646,832  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated

    707,849,713       49,398,138       (163,771,042     (370,597,016

Investments — Affiliated

    16,338,684                    

Futures contracts

    (36,403     (550,837     (27,742     (2,593,438

Foreign currency translations

                (555,188      
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    724,151,994       48,847,301       (164,353,972     (373,190,454
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    1,224,371,236       177,402,917       (171,497,909     (98,543,622
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ 1,436,469,074     $ 319,526,816     $ (33,953,546   $ 227,243,037  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

34  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Statements of Operations (unaudited) (continued)

Six Months Ended October 31, 2021

 

    

iShares

U.S. Dividend

and Buyback

ETF

 

INVESTMENT INCOME

 

Dividends — Unaffiliated

  $ 1,094,550  

Dividends — Affiliated

    3,689  

Foreign taxes withheld

    (81
 

 

 

 

Total investment income

    1,098,158  
 

 

 

 

EXPENSES

 

Investment advisory fees

    127,656  
 

 

 

 

Total expenses

    127,656  
 

 

 

 

Net investment income

    970,502  
 

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — Unaffiliated

    (566,625

Investments — Affiliated

    (2,179

In-kind redemptions — Unaffiliated

    3,625,672  

In-kind redemptions — Affiliated

    25,073  

Futures contracts

    24,419  
 

 

 

 

Net realized gain

    3,106,360  
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments — Unaffiliated

    4,422,991  

Investments — Affiliated

    30,156  

Futures contracts

    2,736  
 

 

 

 

Net change in unrealized appreciation (depreciation)

    4,455,883  
 

 

 

 

Net realized and unrealized gain

    7,562,243  
 

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 8,532,745  
 

 

 

 

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

  35


Statements of Changes in Net Assets  

       

 

   

iShares

Core Dividend Growth ETF

          

iShares

Core High Dividend ETF

 
    

Six Months Ended
10/31/21

(unaudited)

   

Year Ended

04/30/21

           

Six Months Ended
10/31/21

(unaudited)

   

Year Ended

04/30/21

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 212,097,838     $ 334,481,493        $ 142,123,899     $ 239,926,357  

Net realized gain (loss)

    500,219,242       158,309,065          128,555,616       (119,602,163

Net change in unrealized appreciation (depreciation)

    724,151,994       4,085,389,867          48,847,301       1,024,956,726  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets resulting from operations

    1,436,469,074       4,578,180,425          319,526,816       1,145,280,920  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (197,358,158     (326,148,283        (116,556,953     (238,406,761
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    1,447,362,201       4,795,396,795          374,480,308       (104,344,490
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase in net assets

    2,686,473,117       9,047,428,937          577,450,171       802,529,669  

Beginning of period

    18,403,156,398       9,355,727,461          6,839,327,465       6,036,797,796  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 21,089,629,515     $ 18,403,156,398        $ 7,416,777,636     $ 6,839,327,465  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

36  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Statements of Changes in Net Assets (continued)

 

    iShares
International Select Dividend ETF
           iShares
Select Dividend ETF
 
     Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
            Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 137,544,363     $ 176,517,860        $ 325,786,659     $ 539,461,221  

Net realized gain (loss)

    (7,143,937     (599,215,367        274,646,832       1,242,537,997  

Net change in unrealized appreciation (depreciation)

    (164,353,972     1,651,282,925          (373,190,454     4,468,805,896  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    (33,953,546     1,228,585,418          227,243,037       6,250,805,114  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (142,657,480     (166,047,075        (319,092,236     (544,125,763
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    223,958,464       (153,719,970        75,342,614       (468,135,426
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase (decrease) in net assets

    47,347,438       908,818,373          (16,506,585     5,238,543,925  

Beginning of period

    4,329,941,791       3,421,123,418          18,495,567,155       13,257,023,230  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 4,377,289,229     $ 4,329,941,791        $ 18,479,060,570     $ 18,495,567,155  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

I N A N C I A L    T A T E M E N T  S

  37


Statements of Changes in Net Assets (continued)

 

    iShares
U.S. Dividend and Buyback ETF
 
    

Six Months

Ended

10/31/21
(unaudited)

    Year Ended
04/30/21
 

INCREASE (DECREASE) IN NET ASSETS

   

OPERATIONS

   

Net investment income

  $ 970,502     $ 869,972  

Net realized gain

    3,106,360       2,851,821  

Net change in unrealized appreciation (depreciation)

    4,455,883       12,558,681  
 

 

 

   

 

 

 

Net increase in net assets resulting from operations

    8,532,745       16,280,474  
 

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

   

Decrease in net assets resulting from distributions to shareholders

    (807,991     (806,983
 

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

   

Net increase in net assets derived from capital share transactions

    59,490,605       27,061,298  
 

 

 

   

 

 

 

NET ASSETS

   

Total increase in net assets

    67,215,359       42,534,789  

Beginning of period

    67,180,044       24,645,255  
 

 

 

   

 

 

 

End of period

  $ 134,395,403     $ 67,180,044  
 

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

38  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Core Dividend Growth ETF  
    

Six Months Ended
10/31/21

(unaudited)

    Year Ended
04/30/21
    Year Ended
04/30/20
    Year Ended
04/30/19
    Year Ended
04/30/18
    Year Ended
04/30/17
 

Net asset value, beginning of period

  $ 49.87     $ 36.39     $ 38.13     $ 33.86     $ 30.75     $ 26.72  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.55       1.08       0.99       0.91       0.78       0.71  

Net realized and unrealized gain (loss)(b)

    3.21       13.44       (1.77     4.20       3.07       3.98  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    3.76       14.52       (0.78     5.11       3.85       4.69  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

           

From net investment income

    (0.51     (1.04     (0.96     (0.84     (0.74     (0.66
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.51     (1.04     (0.96     (0.84     (0.74     (0.66
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 53.12     $ 49.87     $ 36.39     $ 38.13     $ 33.86     $ 30.75  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

           

Based on net asset value

    7.59 %(e)       40.52     (2.05 )%      15.30     12.59     17.78
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.08 %(f)       0.08     0.08     0.08     0.08     0.09
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    2.12 %(f)       2.53     2.55     2.55     2.32     2.46
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 21,089,630     $ 18,403,156     $ 9,355,727     $ 7,084,809     $ 3,343,410     $ 1,429,997  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

    7 %(e)       31     24     26     24     27
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

Based on average shares outstanding.

(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)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f)

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L    I G H L I G H T  S

  39


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

   

iShares Core High Dividend ETF

 
 

 

 
    

Six Months Ended
10/31/21
(unaudited)

    Year Ended
04/30/21
    Year Ended
04/30/20
    Year Ended
04/30/19
    Year Ended
04/30/18
    Year Ended
04/30/17
 

Net asset value, beginning of period

         $ 95.59     $ 81.85     $ 95.42     $ 84.44     $ 83.27     $ 78.83  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      1.92       3.56       3.24       3.09       2.99       2.85  

Net realized and unrealized gain (loss)(b)

      2.43       13.72       (13.51     11.01       1.20       4.34  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      4.35       17.28       (10.27     14.10       4.19       7.19  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

             

From net investment income

      (1.57     (3.54     (3.30     (3.12     (3.02     (2.75
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (1.57     (3.54     (3.30     (3.12     (3.02     (2.75
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 98.37     $ 95.59     $ 81.85     $ 95.42     $ 84.44     $ 83.27  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

             

Based on net asset value

      4.59 %(e)       21.70     (10.86 )%      17.05     5.03     9.22
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

             

Total expenses

      0.08 %(f)       0.08     0.08     0.08     0.08     0.10
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      3.93 %(f)       4.13     3.53     3.48     3.47     3.49
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 7,416,778     $ 6,839,327     $ 6,036,798     $ 7,175,741     $ 6,007,744     $ 6,632,679  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

      39 %(e)       75     62     57     46     49
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(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)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f)

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

40  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares International Select Dividend ETF  
 

 

 

 
    Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
    Year Ended
04/30/20
    Year Ended
04/30/19
    Year Ended
04/30/18
    Year Ended
04/30/17
 

 

 

Net asset value, beginning of period

            $ 32.41     $ 24.14     $ 31.59     $ 34.11     $ 31.78     $ 29.85  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      1.00 (b)       1.35       1.83       1.71       1.43       1.42 (b)  

Net realized and unrealized gain (loss)(c)

      (1.21     8.19       (7.10     (2.48     2.41       1.88  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      (0.21     9.54       (5.27     (0.77     3.84       3.30  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

             

From net investment income

      (1.04     (1.27     (2.18     (1.75     (1.51     (1.37
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (1.04     (1.27     (2.18     (1.75     (1.51     (1.37
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 31.16     $ 32.41     $ 24.14     $ 31.59     $ 34.11     $ 31.78  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

             

Based on net asset value

      (0.68 )%(b)(f)      40.57     (17.15 )%      (2.13 )%      12.35     11.47 %(b)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

             

Total expenses

      0.53 %(g)       0.49 %(h)       0.49     0.49     0.49     0.50
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived

      0.53 %(g)       0.49 %(h)       0.49     0.49     0.49     0.50
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

      0.49 %(g)       N/A       N/A       0.49     N/A       0.50
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      6.15 %(b)(g)       4.87     6.06     5.39     4.27     4.75 %(b)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 4,377,289     $ 4,329,942     $ 3,421,123     $ 4,377,418     $ 4,922,792     $ 4,010,716  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(i)

      2 %(f)       86 %(j)       12     35     24     29
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(b) 

Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the six months ended October 31, 2021 and year ended April 30, 2017:

  

• Net investment income per share by $0.05 and $0.04, respectively.

  

• Total return by 0.16% and 0.10%, respectively.

  

• Ratio of net investment income to average net assets by 0.15% and 0.13%, respectively.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e)

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g)

Annualized.

(h) 

The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested (“acquired fund fees and expenses”). This ratio does not include these acquired fund fees and expenses.

(i) 

Portfolio turnover rate excludes in-kind transactions.

(j) 

Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates.

See notes to financial statements.

 

 

I N A N C I A L    I G H L I G H T  S

  41


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Select Dividend ETF  
 

 

 

 
    Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
    Year Ended
04/30/20
    Year Ended
04/30/19
    Year Ended
04/30/18
    Year Ended
04/30/17
 

 

 

Net asset value, beginning of period

            $ 118.37     $ 80.66     $ 101.13     $ 96.31     $ 91.51     $ 82.05  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

      2.08       3.51       3.51       3.31       3.08       2.82  

Net realized and unrealized gain (loss)(b)

      (0.42     37.74       (20.30     4.80       4.76       9.41  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      1.66       41.25       (16.79     8.11       7.84       12.23  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(c)

             

From net investment income

      (2.03     (3.54     (3.68     (3.29     (3.04     (2.77
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (2.03     (3.54     (3.68     (3.29     (3.04     (2.77
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 118.00     $ 118.37     $ 80.66     $ 101.13     $ 96.31     $ 91.51  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(d)

             

Based on net asset value

      1.40 %(e)       52.54     (16.96 )%      8.63     8.65     15.12
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

             

Total expenses

      0.38 %(f)       0.38     0.39     0.39     0.39     0.39
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      3.49 %(f)       3.78     3.60     3.40     3.24     3.23
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 18,479,061     $ 18,495,567     $ 13,257,023     $ 17,585,695     $ 16,714,032     $ 17,200,059  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(g)

      3 %(e)       55     6     21     28     19
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f)

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

42  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares U.S. Dividend and Buyback ETF  
 

 

 

 
    Six Months Ended
10/31/21
(unaudited)
    Year
Ended
04/30/21
    Year
Ended
04/30/20
    Year
Ended
04/30/19
    Period From
11/07/17(a)
to 04/30/18
 

 

 

Net asset value, beginning of period

              $ 38.39     $ 25.94     $ 27.96     $ 25.30     $ 24.99  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

      0.38       0.70       0.64       0.61       0.26  

Net realized and unrealized gain (loss)(c)

      2.91       12.43       (2.02     2.67       0.28  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      3.29       13.13       (1.38     3.28       0.54  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

      (0.33     (0.68     (0.64     (0.58     (0.23

From net realized gain

                        (0.04      
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.33     (0.68     (0.64     (0.62     (0.23
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 41.35     $ 38.39     $ 25.94     $ 27.96     $ 25.30  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

      8.60 %(f)       51.33     (4.95 )%      13.21     2.16 %(f) 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

      0.25 %(g)       0.25     0.25     0.25     0.25 %(g) 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      1.90 %(g)       2.20     2.31     2.34     2.07 %(g) 
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

    $ 134,395     $ 67,180     $ 24,645     $ 8,389     $ 7,591  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

      11 %(f)       30     33     31     14 %(f)  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Commencement of operations.

(b)

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e)

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g)

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L    I G H L I G H T  S

  43


Notes to Financial Statements  (unaudited)

 

1.  

ORGANIZATION

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 is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

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

 

iShares ETF   Diversification  
Classification  

Core Dividend Growth

  Diversified  

Core High Dividend

  Non-diversified  

International Select Dividend

  Diversified  

Select Dividend

  Diversified  

U.S. Dividend and Buyback

  Diversified  

 

2.  

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations 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. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its 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 October 31, 2021, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

 

 

44  

2 0 2 1    H A R E S     E M I - A N N U A L    E P O R T    T O     H A R E H O L D E R S


Notes to Financial Statements  (unaudited) (continued)

 

Distributions: 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. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

3.  

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. 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. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

   

Equity investments traded on a recognized securities exchange are valued at that day’s 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.

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. 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 price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

   

Level 3 – Unobservable inputs 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 financial instruments).

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 judgment 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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

4.  

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 market 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 Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule 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, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “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, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent 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 market 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. Such losses are borne entirely by each Fund.

 

5.  

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk) .

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.  

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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).

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

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

 

iShares ETF   Investment Advisory Fee  

Core Dividend Growth

    0.08

Core High Dividend

    0.08  

U.S. Dividend and Buyback

    0.25  

For its investment advisory services to the iShares International Select Dividend ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $12 billion

    0.5000

Over $12 billion, up to and including $18 billion

    0.4750  

Over $18 billion, up to and including $24 billion

    0.4513  

Over $24 billion, up to and including $30 billion

    0.4287  

Over $30 billion

    0.4073  

For its investment advisory services to the iShares Select Dividend ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $46 billion

    0.4000

Over $46 billion, up to and including $81 billion

    0.3800  

Over $81 billion, up to and including $111 billion

    0.3610  

Over $111 billion, up to and including $141 billion

    0.3430  

Over $141 billion, up to and including $171

    0.3259  

Over $171 billion

    0.3096  

Prior to July 14, 2021, for its investment advisory services to the iShares Select Dividend ETF, BFA was 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:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $46 billion

    0.4000

Over $46 billion, up to and including $81 billion

    0.3800  

Over $81 billion, up to and including $111 billion

    0.3610  

Over $111 billion, up to and including $141 billion

    0.3430  

Over $141 billion

    0.3259  

Expense Waivers: BFA may from time to time voluntarily waive and/or reimburse fees or expenses in order to limit total annual fund operating expenses (excluding acquired fund fees and expenses, if any). BFA has elected to implement a voluntary fee waiver to the iShares International Select Dividend ETF in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds.

For the six months ended October 31, 2021, there were no fees waived by BFA pursuant to this arrangement.

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. 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 SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

Pursuant to the current securities lending agreement, each of iShares Core Dividend Growth ETF , iShares Core High Dividend ETF, iShares Select Dividend ETF and iShares U.S. Dividend and Buyback ETF (the “Group 1 Funds”), retains 77% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Pursuant to the current securities lending agreement, the iShares International Select Dividend ETF (the “Group 2 Fund”), retains 82% of securities lending income (which excludes collateral investment fees) 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 a specified threshold: (1) each Group 1 Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees, and (2) the Group 2 Fund will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended October 31, 2021, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF    Fees Paid
to BTC
 

International Select Dividend

   $ 220,297  

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: 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 six months ended October 31, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF    Purchases        Sales        Net Realized
Gain (Loss)
 

Core Dividend Growth

   $   451,040,930        $   352,280,083        $   (3,440,296

Core High Dividend

     252,982,040          396,397,566          5,714,395  

International Select Dividend

              166,282          49,231  

Select Dividend

     8,894,282          12,026,801          3,324,681  

U.S. Dividend and Buyback

     4,560,215          3,843,159          (226,007

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 shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.  

PURCHASES AND SALES

For the six months ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

Core Dividend Growth

  $  1,331,789,344      $  1,317,362,162  

Core High Dividend

    2,770,231,784        2,748,251,177  

International Select Dividend

    182,108,301        95,313,369  

Select Dividend

    655,269,755        638,517,502  

U.S. Dividend and Buyback

    10,960,060        10,644,176  

For the six months ended October 31, 2021, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases
     In-kind
Sales
 

Core Dividend Growth

  $  2,495,050,531      $  1,055,763,783  

Core High Dividend

    637,938,237        265,223,838  

International Select Dividend

    147,046,452        17,860,861  

Select Dividend

    1,198,160,881        1,122,256,209  

U.S. Dividend and Buyback

    68,957,384        9,627,666  

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

 

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 each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of April 30, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  

Core Dividend Growth

  $ 531,044,408  

Core High Dividend

      1,062,206,828  

International Select Dividend

    1,172,533,568  

Select Dividend

    411,782,440  

U.S. Dividend and Buyback

    1,321,244  

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund 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.

As of October 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 

Core Dividend Growth

  $ 16,337,291,855      $ 4,946,648,103      $ (183,126,974   $   4,763,521,129  

Core High Dividend

    6,793,513,208        767,843,072         (152,312,833     615,530,239  

International Select Dividend

    3,975,374,295        538,851,416        (172,253,178     366,598,238  

Select Dividend

     15,786,121,475         3,224,479,480        (559,189,563     2,665,289,917  

U.S. Dividend and Buyback

    116,950,555        19,287,663        (1,861,647     17,426,016  

 

9.  

LINE OF CREDIT

The iShares International Select Dividend ETF, along with certain other iShares funds (“Participating Funds”), is a party to a $300 million credit agreement (“Credit Agreement”) with State Street Bank and Trust Company, which expires on October 15, 2021. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Credit Agreement sets specific sub limits on aggregate borrowings based on two tiers of Participating Funds: $300 million with respect to the funds within Tier 1, including the Fund, and $200 million with respect to Tier 2. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Credit Agreement. The Credit Agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Credit Agreement. The Credit Agreement was terminated on August 12, 2021.

Effective August 13, 2021, the iShares International Select Dividend ETF, along with certain other iShares funds (“Participating Funds”), is a party to a $800 million credit agreement (“Syndicated Credit Agreement”) with a group of lenders, which expires on August 12, 2022. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings in certain target markets. The Funds may borrow up to the aggregate commitment amount subject to asset coverage and other limitations as specified in the Syndicated Credit Agreement. The Syndicated Credit Agreement has the following terms: a commitment fee of 0.15% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR rate (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is generally allocated to each Participating Fund based on the lesser of a Participating Fund’s relative exposure to certain target markets or a Participating Fund’s maximum borrowing amount as set forth by the terms of the Syndicated Credit Agreement.

During the six months ended October 31, 2021, the Fund did not borrow under the Credit Agreement or Syndicated Credit Agreement.

 

10.  

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. Local, regional or global events

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. 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.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: 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.

Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

LIBORTransition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

11.  

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 were as follows:

 

     Six Months Ended
10/31/21
    Year Ended
04/30/21
 
iShares ETF   Shares     Amount     Shares     Amount  

Core Dividend Growth

       

Shares sold

    48,750,000     $ 2,509,082,539       140,800,000     $ 5,967,489,614  

Shares redeemed

    (20,700,000     (1,061,720,338     (28,900,000     (1,172,092,819
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    28,050,000     $ 1,447,362,201       111,900,000     $ 4,795,396,795  
 

 

 

   

 

 

   

 

 

   

 

 

 

Core High Dividend

       

Shares sold

    6,600,000     $ 641,138,813       9,350,000     $ 857,073,484  

Shares redeemed

    (2,750,000     (266,658,505     (11,550,000     (961,417,974
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    3,850,000     $ 374,480,308       (2,200,000   $ (104,344,490
 

 

 

   

 

 

   

 

 

   

 

 

 

International Select Dividend

       

Shares sold

    7,550,000     $ 244,441,247       9,000,000     $ 272,038,651  

Shares redeemed

    (650,000     (20,482,783     (17,100,000     (425,758,621
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    6,900,000     $ 223,958,464       (8,100,000   $ (153,719,970
 

 

 

   

 

 

   

 

 

   

 

 

 

Select Dividend

       

Shares sold

    10,250,000     $ 1,219,371,478       17,250,000     $ 1,779,672,971  

Shares redeemed

    (9,900,000     (1,144,028,864     (25,350,000     (2,247,808,397
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    350,000     $ 75,342,614       (8,100,000   $ (468,135,426
 

 

 

   

 

 

   

 

 

   

 

 

 

U.S. Dividend and Buyback

       

Shares sold

    1,750,000     $ 69,328,835       1,200,000     $ 38,829,975  

Shares redeemed

    (250,000     (9,838,230     (400,000     (11,768,677
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    1,500,000     $ 59,490,605       800,000     $ 27,061,298  
 

 

 

   

 

 

   

 

 

   

 

 

 

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

12.  

FOREIGN WITHHOLDING TAX CLAIMS

The Internal Revenue Service (“IRS”) has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which the iShares International Select Dividend ETF is able to pass through to 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.

 

13.  

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 additional disclosure in the financial statements.

 

 

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  51


Board Review and Approval of Investment Advisory Contract

 

iShares Core Dividend Growth ETF, iShares Core High Dividend ETF, iShares U.S. Dividend and Buyback ETF (each the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2020, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected

 

 

52  

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Board Review and Approval of Investment Advisory Contract  (continued)

 

by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares International Select Dividend ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service

 

 

O A R D    E V I E W    A N D     P P R O V A L    O F    N V E S T M E N T    D V I S O R Y    O N T R A C T

  53


Board Review and Approval of Investment Advisory Contract  (continued)

 

providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue,

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares Select Dividend ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to

 

 

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  55


Board Review and Approval of Investment Advisory Contract  (continued)

 

evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and the Board and BFA agreed during the June 15-16, 2021 meeting to revise the Advisory Agreement for the Fund to provide for one or more additional breakpoints, 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 assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board noted that BFA and its affiliates 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

 

 

O A R D    E V I E W    A N D     P P R O V A L    O F    N V E S T M E N T    D V I S O R Y    O N T R A C T

  57


Supplemental Information  (unaudited)

 

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being 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 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.

October 31, 2021

 

     Total Cumulative Distributions
for the Fiscal Year-to-Date
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
iShares ETF   Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
    Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

Core High Dividend

  $ 1.574450     $     $     $ 1.574450       100             100

Select Dividend(a)

    1.826528             0.199017       2.025545       90             10       100  

U.S. Dividend and Buyback(a)

    0.324207             0.001545       0.325752       100             0 (b)      100  

 

  (a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 
  (b)

Rounds to less than 1%.

 

 

 

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General Information

 

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

E N E R A L    N F O R M A T I O  N

  59


Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

NVS    Non-Voting Shares

 

 

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Want to know more?

iShares.com    |     1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

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

©2021 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-SAR-406-1021

 

 

LOGO

  

LOGO


 

LOGO   OCTOBER 31, 2021

 

 

   

  

2021 Semi-Annual Report

(Unaudited)

 

iShares Trust

 

·  

iShares Morningstar Growth ETF | ILCG | NYSE Arca

 

·  

iShares Morningstar Mid-Cap ETF | IMCB | NYSE Arca

 

·  

iShares Morningstar Mid-Cap Growth ETF | IMCG | NYSE Arca

 

·  

iShares Morningstar Mid-Cap Value ETF | IMCV | NASDAQ

 

·  

iShares Morningstar Small-Cap ETF | ISCB | NYSE Arca

 

·  

iShares Morningstar Small-Cap Growth ETF | ISCG | NYSE Arca

 

·  

iShares Morningstar Small-Cap Value ETF | ISCV | NYSE Arca

 

·  

iShares Morningstar U.S. Equity ETF | ILCB | NYSE Arca

 

·  

iShares Morningstar Value ETF | ILCV | NYSE Arca

 

 


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.

Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, out-paced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021

 

     
     6-Month   
  12-Month   
   

U.S. large cap equities
(S&P 500® Index)

  10.91%   42.91%
   

U.S. small cap equities
(Russell 2000® Index)

  1.85   50.80
   

International equities
(MSCI Europe, Australasia,
Far East Index)

  4.14   34.18
   

Emerging market equities
(MSCI Emerging Markets Index)

  (4.87)   16.96
   

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

  0.01   0.06
   

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

  1.59   (4.77)
   

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

  1.06   (0.48)
   

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

  0.33   2.76
   

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

  2.36   10.53
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2  

H I S   P A G E   I S   N O T   P A R T   O F   Y O U R  U N D  E P O R T


Table of Contents

 

     Page  

 

 

The Markets in Review

     2  

Fund Summary

     4  

About Fund Performance

     13  

Shareholder Expenses

     13  

Schedules of Investments

     14  

Financial Statements

  

Statements of Assets and Liabilities

     108  

Statements of Operations

     111  

Statements of Changes in Net Assets

     114  

Financial Highlights

     119  

Notes to Financial Statements

     128  

Board Review and Approval of Investment Advisory Contract

     139  

Supplemental Information

     141  

General Information

     142  

Glossary of Terms Used in this Report

     143  

 

 

      


Fund Summary as of October 31, 2021    iShares® Morningstar Growth ETF

 

Investment Objective

The iShares Morningstar Growth ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar® US Large-Mid Cap Broad Growth IndexSM (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.

Performance

 

           Average Annual Total Returns             Cumulative Total Returns  
      6 Months     1 Year      5 Years      10 Years              1 Year      5 Years      10 Years  

Fund NAV

     15.11     39.61      25.30      19.13         39.61      208.84      475.90

Fund Market

     15.06       39.46        25.28        19.13           39.46        208.66        475.90  

Index

     15.14       39.78        25.77        19.50                 39.78        214.70        494.10  

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.

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Large Growth IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Large-Mid Cap Broad Growth IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return  

 

 

     

 

 

      
 

Beginning
  Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
   

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
    $     1,000.00          $      1,151.10       $       0.22               $      1,000.00          $      1,025.00          $         0.20          0.04

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    41.7

Consumer Discretionary

    17.4  

Communication Services

    15.1  

Health Care

    9.9  

Industrials

    5.2  

Financials

    5.0  

Real Estate

    2.5  

Materials

    1.6  

Consumer Staples

    1.2  

Other (each representing less than 1%)

    0.4  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Microsoft Corp.

    11.0

Apple Inc.

    6.5  

Amazon.com Inc.

    6.5  

Tesla Inc.

    4.0  

Alphabet Inc., Class A

    3.9  

Alphabet Inc., Class C

    3.7  

Meta Platforms Inc, Class A

    3.4  

NVIDIA Corp.

    2.8  

Visa Inc., Class A

    1.6  

Adobe Inc.

    1.4  
 
  (a) 

Excludes money market funds.

 

 

 

4  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of October 31, 2021    iShares® Morningstar Mid-Cap ETF

 

Investment Objective

The iShares Morningstar Mid-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities, as represented by the Morningstar® US Mid Cap IndexSM (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.

Performance

 

            Average Annual Total Returns             Cumulative Total Returns  
      6 Months      1 Year      5 Years      10 Years              1 Year      5 Years      10 Years  

Fund NAV

     7.95      43.78      15.28      14.39         43.78      103.57      283.69

Fund Market

     7.94        44.30        15.28        14.40           44.30        103.60        283.83  

Index

     7.96        43.99        15.55        14.65                 43.99        105.98        292.53  

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.

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Mid Core IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Mid Cap IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return  

 

 

     

 

 

      
 

Beginning

Account Value

(05/01/21)

 

 

 

      

Ending

Account Value

(10/31/21)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(05/01/21)

 

 

 

      

Ending

Account Value

(10/31/21)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

Annualized

Expense

Ratio

 

 

 

  $     1,000.00          $      1,079.50          $       0.21               $      1,000.00          $      1,025.00          $         0.20          0.04

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    19.8

Industrials

    14.6  

Consumer Discretionary

    12.6  

Financials

    12.2  

Health Care

    11.5  

Real Estate

    8.1  

Materials

    5.3  

Utilities

    4.9  

Energy

    4.7  

Consumer Staples

    3.6  

Communication Services

    2.7  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Dexcom Inc.

    0.6

Airbnb Inc., Class A

    0.6  

Marvell Technology Inc.

    0.6  

Cloudflare Inc., Class A

    0.5  

Palo Alto Networks Inc.

    0.5  

Cadence Design Systems Inc.

    0.5  

KKR & Co. Inc.

    0.5  

Fortinet Inc.

    0.5  

Xilinx Inc.

    0.5  

Pioneer Natural Resources Co.

    0.5  
 
  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  5


Fund Summary as of October 31, 2021    iShares® Morningstar Mid-Cap Growth ETF

 

Investment Objective

The iShares Morningstar Mid-Cap Growth ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar US Mid Cap Broad Growth IndexSM (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.

Performance

 

            Average Annual Total Returns             Cumulative Total Returns  
      6 Months      1 Year      5 Years      10 Years              1 Year      5 Years      10 Years  

Fund NAV

     11.81      38.65      23.74      16.90         38.65      190.14      376.61

Fund Market

     11.74        38.71        23.75        16.90           38.71        190.18        376.52  

Index

     11.86        38.87        24.05        17.17                 38.87        193.71        387.80  

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.

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Mid Growth IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Mid Cap Broad Growth IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return  

 

 

     

 

 

      
 

Beginning

  Account Value

(05/01/21)

 

 

 

      

Ending

Account Value

(10/31/21)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

Account Value

(05/01/21)

 

 

 

      

Ending

Account Value

(10/31/21)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

Annualized

Expense

Ratio

 

 

 

  $     1,000.00          $      1,118.10          $       0.32               $      1,000.00          $      1,024.90          $         0.31          0.06

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of  
Total Investments
 
(a) 

Information Technology

    30.7

Industrials

    17.5  

Health Care

    15.7  

Consumer Discretionary

    13.3  

Financials

    8.1  

Real Estate

    5.8  

Materials

    3.2  

Communication Services

    2.0  

Consumer Staples

    2.0  

Other (each representing less than 1%)

    1.7  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Dexcom Inc.

    1.2

Airbnb Inc., Class A

    1.2  

Marvell Technology Inc.

    1.2  

Cloudflare Inc., Class A

    1.1  

Palo Alto Networks Inc.

    1.0  

Cadence Design Systems Inc.

    1.0  

KKR & Co. Inc.

    1.0  

Fortinet Inc.

    0.9  

Datadog Inc., Class A

    0.8  

ResMed Inc.

    0.8  
 
  (a) 

Excludes money market funds.

 

 

 

6  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary as of October 31, 2021    iShares® Morningstar Mid-Cap Value ETF

 

Investment Objective

The iShares Morningstar Mid-Cap Value ETF (the “Fund”) seeks to track the investment results of an index composed of mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® US Mid Cap Broad Value IndexSM (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.

Performance

 

           Average Annual Total Returns           Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years            1 Year      5 Years      10 Years  

Fund NAV

    4.13      51.89      11.13     13.32       51.89      69.50      249.21

Fund Market

    4.19        51.87        11.14       13.34         51.87        69.59        249.66  

Index

    4.14        52.15        11.39       13.62               52.15        71.51        258.44  

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.

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Mid Value IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Mid Cap Broad Value IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return  

 

 

     

 

 

      
 

Beginning

  Account Value

(05/01/21)

 

 

 

      

Ending

Account Value

(10/31/21)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

           

Beginning

  Account Value

(05/01/21)

 

 

 

      

Ending

Account Value

(10/31/21)

 

 

 

      

Expenses

Paid During

the Period

 

 

 (a) 

      

Annualized

Expense

Ratio

 

 

 

    $     1,000.00          $        1,041.30          $         0.31               $        1,000.00          $        1,024.90          $         0.31          0.06

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    16.6

Consumer Discretionary

    11.9  

Industrials

    11.5  

Real Estate

    10.6  

Utilities

    9.4  

Energy

    8.9  

Information Technology

    7.7  

Materials

    7.6  

Health Care

    6.9  

Consumer Staples

    5.4  

Communication Services

    3.5  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Pioneer Natural Resources Co.

    1.0

Marathon Petroleum Corp.

    0.9  

International Flavors & Fragrances Inc.

    0.8  

State Street Corp.

    0.8  

Archer-Daniels-Midland Co.

    0.8  

Ameriprise Financial Inc.

    0.8  

Williams Companies Inc. (The)

    0.8  

Welltower Inc.

    0.8  

Discover Financial Services

    0.8  

Aflac Inc.

    0.7  
 
  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  7


Fund Summary  as of October 31, 2021    iShares® Morningstar Small-Cap ETF

 

Investment Objective

The iShares Morningstar Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities, as represented by the Morningstar® US Small Cap Extended IndexSM (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.

Performance

 

           Average Annual Total Returns           Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years            1 Year      5 Years      10 Years  

Fund NAV

    0.81      47.99      12.42     12.31       47.99      79.55      219.42

Fund Market

    0.84        48.47        12.42       12.32         48.47        79.59        219.56  

Index

    0.81        47.94        12.56       12.44               47.94        80.69        223.01  

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.

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Small Core IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Small Cap Extended IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return  

 

 

     

 

 

      
 

Beginning
  Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
    $      1,000.00          $        1,008.10          $       0.20               $        1,000.00          $        1,025.00          $         0.20          0.04

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Health Care

    16.6

Financials

    16.4  

Industrials

    15.1  

Information Technology

    14.4  

Consumer Discretionary

    11.8  

Real Estate

    8.2  

Materials

    4.8  

Energy

    4.0  

Communication Services

    3.5  

Consumer Staples

    2.9  

Utilities

    2.3  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

AMC Entertainment Holdings Inc., Class A

    0.5

ZoomInfo Technologies Inc., Class A

    0.3  

SoFi Technologies Inc.

    0.3  

Asana Inc., Class A

    0.3  

Life Storage Inc.

    0.3  

Regal Rexnord Corp.

    0.3  

Crocs Inc.

    0.3  

Ovintiv Inc.

    0.3  

Tetra Tech Inc.

    0.2  

Lattice Semiconductor Corp.

    0.2  
 
  (a) 

 Excludes money market funds.

 

 

 

8  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary  as of October 31, 2021    iShares® Morningstar Small-Cap Growth ETF

 

Investment Objective

The iShares Morningstar Small-Cap Growth ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit growth characteristics, as represented by the Morningstar® US Small Cap Broad Growth Extended IndexSM (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.

Performance

 

            Average Annual Total Returns             Cumulative Total Returns  
      6 Months      1 Year      5 Years      10 Years              1 Year      5 Years      10 Years  

Fund NAV

     0.70      27.93      18.70      14.66         27.93      135.63      292.79

Fund Market

     0.80        27.85        18.70        14.67           27.85        135.69        292.96  

Index

     0.77        28.05        18.88        14.75                 28.05        137.40        295.87  

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Small Growth IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Small Cap Broad Growth Extended IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
    $     1,000.00          $      1,007.00          $       0.30               $      1,000.00          $        1,024.90          $         0.31          0.06

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Health Care

    23.9

Information Technology

    22.4  

Industrials

    15.9  

Consumer Discretionary

    11.0  

Financials

    9.3  

Real Estate

    6.0  

Communication Services

    3.8  

Materials

    3.2  

Consumer Staples

    2.5  

Energy

    1.1  

Utilities

    0.9  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

ZoomInfo Technologies Inc., Class A

    0.6

Asana Inc., Class A

    0.5  

Crocs Inc.

    0.5  

Tetra Tech Inc.

    0.5  

Lattice Semiconductor Corp.

    0.5  

Rexford Industrial Realty Inc.

    0.5  

Intellia Therapeutics Inc.

    0.5  

Tandem Diabetes Care Inc.

    0.4  

TopBuild Corp.

    0.4  

Saia Inc.

    0.4  

 

 
  (a) 

 Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  9


Fund Summary as of October 31, 2021    iShares® Morningstar Small-Cap Value ETF

 

Investment Objective

The iShares Morningstar Small-Cap Value ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® US Small Cap Broad Value Extended IndexSM (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.

Performance

 

           Average Annual Total Returns           Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years            1 Year      5 Years      10 Years  

Fund NAV

    1.62      63.36      9.49     11.07       63.36      57.34      185.81

Fund Market

    1.79        64.02        9.51       11.09         64.02        57.46        186.15  

Index

    1.62        63.44        9.78       11.32               63.44        59.43        192.16  

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.

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Small Value IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Small Cap Broad Value Extended IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return  

 

 

     

 

 

      
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      


Expenses
Paid During
the
Period
 
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      


Expenses
Paid During
the
Period
 
 
 
 (a) 
      

Annualized
Expense
Ratio
 

 
    $     1,000.00          $      1,016.20          $       0.30               $      1,000.00          $        1,024.90          $         0.31          0.06

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    23.3

Industrials

    14.7  

Consumer Discretionary

    12.7  

Real Estate

    10.9  

Energy

    7.3  

Health Care

    6.9  

Materials

    6.7  

Information Technology

    6.7  

Utilities

    3.9  

Communication Services

    3.5  

Consumer Staples

    3.4  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

AMC Entertainment Holdings Inc., Class A

    1.0

Ovintiv Inc.

    0.5  

Alcoa Corp.

    0.5  

Apartment Income REIT Corp.

    0.4  

Avis Budget Group Inc.

    0.4  

Macy’s Inc.

    0.4  

Dick’s Sporting Goods Inc.

    0.4  

First American Financial Corp.

    0.4  

Janus Henderson Group PLC

    0.4  

Scientific Games Corp./DE, Class A

    0.4  
 

(a)  Excludes money market funds.

 

 

10  

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Fund Summary  as of October 31, 2021    iShares® Morningstar U.S. Equity ETF

 

Investment Objective

The iShares Morningstar U.S. Equity ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities, as represented by the Morningstar® US Large-Mid Cap IndexSM (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.

Performance

 

            Average Annual Total Returns             Cumulative Total Returns  
      6 Months      1 Year      5 Years      10 Years              1 Year      5 Years      10 Years  

Fund NAV

     10.62      40.05      17.64      16.24         40.05      125.33      350.43

Fund Market

     10.54        39.87        17.63        16.24           39.87        125.17        350.33  

Index

     10.65        40.20        17.87        16.48                 40.20        127.50        359.73  

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.

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Large Core IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Large-Mid Cap IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
  Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
    $       1,000.00          $      1,106.20          $       0.16               $    1,000.00          $      1,025.10          $         0.15          0.03

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Information Technology

    28.5

Consumer Discretionary

    12.9  

Health Care

    12.8  

Financials

    11.4  

Communication Services

    10.3  

Industrials

    8.3  

Consumer Staples

    5.3  

Real Estate

    3.0  

Energy

    2.7  

Materials

    2.5  

Utilities

    2.3  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Microsoft Corp.

    5.8

Apple Inc.

    5.4  

Amazon.com Inc.

    3.4  

Tesla Inc.

    2.1  

Alphabet Inc., Class A

    2.1  

Alphabet Inc., Class C

    1.9  

Meta Platforms Inc, Class A

    1.8  

NVIDIA Corp.

    1.5  

Berkshire Hathaway Inc., Class B

    1.2  

JPMorgan Chase & Co.

    1.2  
 
  (a) 

Excludes money market funds.

 

 

 

U N D   S U M M A R Y

  11


Fund Summary  as of October 31, 2021    iShares® Morningstar Value ETF

 

Investment Objective

The iShares Morningstar Value ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics, as represented by the Morningstar® US Large-Mid Cap Broad Value IndexSM (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.

Performance

 

            Average Annual Total Returns             Cumulative Total Returns  
      6 Months      1 Year      5 Years      10 Years              1 Year      5 Years      10 Years  

Fund NAV

     6.22      42.68      12.10      11.82         42.68      77.06      205.50

Fund Market

     6.23        43.30        12.11        11.82           43.30        77.14        205.60  

Index

     6.23        42.87        12.36        12.08                 42.87        79.06        212.94  

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.

Index performance through March 21, 2021 reflects the performance of the Morningstar® US Large Value IndexSM. Index performance beginning on March 22, 2021 reflects the performance of the Morningstar® US Large-Mid Cap Broad Value IndexSM.

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 13 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
  Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period 
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
    $       1,000.00          $      1,062.20          $       0.21               $      1,000.00          $      1,025.00          $       0.20          0.04

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 13 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

   

Sector

   
Percent of
Total Investments
 
(a) 

Financials

    18.5

Health Care

    16.2  

Information Technology

    13.9  

Industrials

    11.8  

Consumer Staples

    9.8  

Consumer Discretionary

    7.9  

Energy

    5.4  

Communication Services

    5.0  

Utilities

    4.6  

Materials

    3.5  

Real Estate

    3.4  

TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Apple Inc.

    4.2

JPMorgan Chase & Co.

    2.5  

Johnson & Johnson

    2.1  

Bank of America Corp.

    1.7  

Procter & Gamble Co. (The)

    1.7  

UnitedHealth Group Inc.

    1.4  

Exxon Mobil Corp.

    1.3  

Berkshire Hathaway Inc., Class B

    1.3  

Home Depot Inc. (The)

    1.3  

Pfizer Inc.

    1.2  
 
  (a) 

Excludes money market funds.

 

 

 

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About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at 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. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined by using the midpoint between the highest bid and the lowest ask 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. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

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

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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 and other fees 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.

 

 

B O U T   F U N D  E R F O R M A N C E / S H A R E H O L D E R   E X P E N S E S

  13


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® Morningstar Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.3%  

Axon Enterprise Inc.(a)

    6,448     $ 1,160,382  

HEICO Corp.

    4,217       587,808  

HEICO Corp., Class A

    7,361       925,130  

Howmet Aerospace Inc.

    27,011       801,957  

Huntington Ingalls Industries Inc.

    1,959       397,148  

Textron Inc.

    10,121       747,436  

TransDigm Group Inc.(a)

    3,447       2,150,307  
   

 

 

 
            6,770,168  
Air Freight & Logistics — 0.3%  

CH Robinson Worldwide Inc.

    4,958       480,877  

Expeditors International of Washington Inc.

    11,100       1,368,186  

United Parcel Service Inc., Class B

    20,309       4,335,362  
   

 

 

 
      6,184,425  
Auto Components — 0.1%  

Aptiv PLC(a)

    10,936       1,890,725  

Gentex Corp.

    10,284       363,951  
   

 

 

 
      2,254,676  
Automobiles — 4.0%  

Tesla Inc.(a)

    80,324       89,480,936  

Thor Industries Inc.

    2,894       295,072  
   

 

 

 
      89,776,008  
Banks — 0.7%  

Commerce Bancshares Inc.

    4,845       341,621  

First Citizens BancShares Inc./NC, Class A(b)

    693       564,033  

First Republic Bank/CA

    17,478       3,781,016  

Huntington Bancshares Inc./OH

    59,532       937,034  

PNC Financial Services Group Inc. (The)

    17,769       3,749,792  

Regions Financial Corp.

    43,609       1,032,661  

Signature Bank/New York NY

    2,526       752,293  

SVB Financial Group(a)

    3,958       2,839,469  

Western Alliance Bancorp.

    5,682       659,623  
   

 

 

 
      14,657,542  
Beverages — 0.2%  

Boston Beer Co. Inc. (The), Class A, NVS(a)(b)

    927       456,529  

Brown-Forman Corp., Class A

    3,217       205,984  

Brown-Forman Corp., Class B, NVS

    10,531       714,950  

Monster Beverage Corp.(a)

    37,109       3,154,265  
   

 

 

 
      4,531,728  
Biotechnology — 1.6%  

Acceleron Pharma Inc.(a)

    5,264       916,883  

Alnylam Pharmaceuticals Inc.(a)

    11,716       1,869,405  

Arrowhead Pharmaceuticals Inc.(a)

    10,376       662,196  

BioMarin Pharmaceutical Inc.(a)

    18,177       1,440,164  

Bridgebio Pharma Inc.(a)(b)

    5,058       249,764  

CRISPR Therapeutics AG(a)(b)

    3,306       301,937  

Exact Sciences Corp.(a)

    17,048       1,623,311  

Exelixis Inc.(a)

    31,242       672,015  

Fate Therapeutics Inc.(a)(b)

    7,969       428,732  

Horizon Therapeutics PLC(a)

    22,408       2,686,943  

Incyte Corp.(a)

    18,614       1,246,766  

Mirati Therapeutics Inc.(a)(b)

    4,485       847,755  

Moderna Inc.(a)

    34,763       12,000,535  

Natera Inc.(a)

    8,645       990,458  

Neurocrine Biosciences Inc.(a)

    9,426       993,595  

Novavax Inc.(a)(b)

    2,839       422,528  

Seagen Inc.(a)

    13,167       2,321,737  

Ultragenyx Pharmaceutical Inc.(a)

    6,723       564,194  
Security   Shares     Value  
Biotechnology (continued)  

Vertex Pharmaceuticals Inc.(a)

    25,720     $ 4,756,400  
   

 

 

 
            34,995,318  
Building Products — 0.4%  

A O Smith Corp.

    6,951       507,910  

Advanced Drainage Systems Inc.

    5,525       623,220  

Allegion PLC

    4,875       625,462  

AZEK Co. Inc. (The)(a)

    11,050       405,424  

Builders FirstSource Inc.(a)

    12,457       725,869  

Carlisle Companies Inc.

    2,754       613,922  

Fortune Brands Home & Security Inc.

    6,483       657,376  

Lennox International Inc.

    2,316       693,132  

Masco Corp.

    10,407       682,179  

Trane Technologies PLC

    7,805       1,412,159  

Trex Co. Inc.(a)

    11,299       1,202,214  
   

 

 

 
      8,148,867  
Capital Markets — 2.2%  

Apollo Global Management Inc.

    12,561       966,569  

Ares Management Corp., Class A

    16,204       1,373,127  

Blackstone Inc., NVS

    33,839       4,683,994  

Carlyle Group Inc. (The)

    9,660       542,409  

Charles Schwab Corp. (The)

    53,766       4,410,425  

FactSet Research Systems Inc.

    3,745       1,662,368  

Intercontinental Exchange Inc.

    18,170       2,515,818  

KKR & Co. Inc.

    57,810       4,605,723  

LPL Financial Holdings Inc.

    7,970       1,307,239  

MarketAxess Holdings Inc.

    3,767       1,539,460  

Moody’s Corp.

    16,005       6,468,421  

Morningstar Inc.

    2,347       743,412  

MSCI Inc.

    8,173       5,434,064  

Nasdaq Inc.

    6,711       1,408,438  

Raymond James Financial Inc.

    8,624       850,240  

S&P Global Inc.

    15,592       7,393,103  

SEI Investments Co.

    5,048       318,226  

T Rowe Price Group Inc.

    8,042       1,744,149  

Tradeweb Markets Inc., Class A

    10,443       930,471  
   

 

 

 
      48,897,656  
Chemicals — 0.9%  

Air Products & Chemicals Inc.

    6,524       1,955,960  

Albemarle Corp.

    8,245       2,065,125  

Axalta Coating Systems Ltd.(a)

    7,255       226,284  

Celanese Corp.

    5,728       925,129  

Corteva Inc.

    33,696       1,453,982  

Ecolab Inc.

    11,455       2,545,530  

FMC Corp.

    5,157       469,339  

Linde PLC

    18,023       5,752,942  

PPG Industries Inc.

    5,903       947,845  

RPM International Inc.

    7,733       674,318  

Scotts Miracle-Gro Co. (The)

    2,914       432,612  

Sherwin-Williams Co. (The)

    11,094       3,512,471  
   

 

 

 
      20,961,537  
Commercial Services & Supplies — 0.4%  

Cintas Corp.

    4,293       1,859,298  

Copart Inc.(a)

    21,113       3,278,638  

IAA Inc.(a)

    13,434       801,338  

Republic Services Inc.

    6,716       903,973  

Rollins Inc.

    22,078       777,808  

Waste Management Inc.

    10,603       1,698,919  
   

 

 

 
      9,319,974  
 

 

 

14  

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Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Communications Equipment — 0.2%  

Arista Networks Inc.(a)

    5,536     $ 2,268,044  

Ciena Corp.(a)

    6,295       341,756  

F5 Networks Inc.(a)

    2,870       606,000  

Motorola Solutions Inc.

    5,919             1,471,404  

Ubiquiti Inc.

    623       190,345  
   

 

 

 
      4,877,549  
Construction & Engineering — 0.1%  

AECOM(a)

    5,279       360,926  

MasTec Inc.(a)

    2,771       246,979  

Quanta Services Inc.

    5,336       647,150  
   

 

 

 
      1,255,055  
Construction Materials — 0.2%  

Martin Marietta Materials Inc.

    3,902       1,532,862  

Vulcan Materials Co.

    13,153       2,500,648  
   

 

 

 
      4,033,510  
Consumer Finance — 0.5%  

American Express Co.

    34,886       6,062,489  

Capital One Financial Corp.

    18,172       2,744,517  

Upstart Holdings Inc.(a)

    4,577       1,473,977  
   

 

 

 
      10,280,983  
Containers & Packaging — 0.2%  

AptarGroup Inc.

    3,370       407,029  

Avery Dennison Corp.

    5,067       1,103,187  

Ball Corp.

    23,240       2,125,995  

Crown Holdings Inc.

    5,674       590,039  
   

 

 

 
      4,226,250  
Distributors — 0.1%  

LKQ Corp.(a)

    12,755       702,545  

Pool Corp.

    3,978       2,049,307  
   

 

 

 
      2,751,852  
Diversified Consumer Services — 0.1%  

Bright Horizons Family Solutions Inc.(a)

    3,245       538,670  

Chegg Inc.(a)

    14,149       841,017  

Service Corp. International

    8,480       580,795  
   

 

 

 
      1,960,482  
Diversified Financial Services — 1.2%  

Berkshire Hathaway Inc., Class B(a)

    91,749       26,332,881  

Voya Financial Inc.

    5,417       377,944  
   

 

 

 
      26,710,825  
Electric Utilities — 0.0%  

NRG Energy Inc.

    6,960       277,634  
   

 

 

 
Electrical Equipment — 0.5%  

AMETEK Inc.

    12,074       1,598,598  

Generac Holdings Inc.(a)

    6,258       3,119,989  

Hubbell Inc.

    1,683       335,540  

Plug Power Inc.(a)

    50,931       1,949,129  

Rockwell Automation Inc.

    7,023       2,243,146  

Sunrun Inc.(a)(b)

    13,125       757,050  

Vertiv Holdings Co.

    27,956       717,910  
   

 

 

 
      10,721,362  
Electronic Equipment, Instruments & Components — 0.8%  

Amphenol Corp., Class A

    24,748       1,899,904  

CDW Corp./DE

    8,320       1,552,928  

Cognex Corp.

    17,365       1,521,000  

Corning Inc.

    45,220       1,608,476  

IPG Photonics Corp.(a)

    3,579       569,097  

Jabil Inc.

    4,620       277,015  
Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Keysight Technologies Inc.(a)

    13,019     $ 2,343,680  

TE Connectivity Ltd.

    7,598       1,109,308  

Teledyne Technologies Inc.(a)

    4,623       2,076,744  

Trimble Inc.(a)

    24,951       2,179,969  

Zebra Technologies Corp., Class A(a)

    5,297       2,828,333  
   

 

 

 
            17,966,454  
Energy Equipment & Services — 0.0%  

Halliburton Co.

    36,513       912,460  
   

 

 

 
Entertainment — 2.6%  

Activision Blizzard Inc.

    40,496       3,166,382  

Electronic Arts Inc.

    12,812       1,796,883  

Live Nation Entertainment Inc.(a)

    6,943       702,284  

Netflix Inc.(a)

    43,815       30,245,933  

Playtika Holding Corp.(a)

    5,100       144,228  

Roku Inc.(a)

    11,525       3,513,973  

Take-Two Interactive Software Inc.(a)

    11,509       2,083,129  

Walt Disney Co. (The)(a)

    101,179       17,106,334  

Zynga Inc., Class A(a)

    100,943       744,959  
   

 

 

 
      59,504,105  
Equity Real Estate Investment Trusts (REITs) — 2.4%  

Alexandria Real Estate Equities Inc.

    8,763       1,788,879  

American Homes 4 Rent, Class A

    26,767       1,086,740  

American Tower Corp.

    28,689       8,089,437  

Americold Realty Trust

    11,326       333,777  

AvalonBay Communities Inc.

    6,948       1,644,453  

Camden Property Trust

    3,341       544,917  

Crown Castle International Corp.

    42,734       7,704,940  

CubeSmart

    8,233       452,897  

CyrusOne Inc.

    12,216       1,001,956  

Digital Realty Trust Inc.

    10,413       1,643,276  

Duke Realty Corp.

    22,827       1,283,791  

Equinix Inc.

    8,873       7,427,322  

Equity LifeStyle Properties Inc.

    8,848       747,745  

Essex Property Trust Inc.

    2,155       732,549  

Extra Space Storage Inc.

    6,544       1,291,589  

Healthpeak Properties Inc.

    19,373       687,935  

Invitation Homes Inc.

    57,117       2,356,076  

Kilroy Realty Corp.

    4,882       328,949  

Mid-America Apartment Communities Inc.

    4,886       997,770  

Prologis Inc.

    32,162       4,662,204  

Realty Income Corp.

    17,921       1,280,097  

SBA Communications Corp.

    10,863       3,751,320  

STORE Capital Corp.

    7,887       270,761  

Sun Communities Inc.

    11,493       2,252,398  

UDR Inc.

    12,839       712,950  

VICI Properties Inc.

    20,022       587,646  
   

 

 

 
      53,662,374  
Food & Staples Retailing — 0.4%  

Casey’s General Stores Inc.

    1,945       372,545  

Costco Wholesale Corp.

    19,336       9,504,418  

Performance Food Group Co.(a)(b)

    5,958       269,480  
   

 

 

 
      10,146,443  
Food Products — 0.3%  

Beyond Meat Inc.(a)(b)

    5,960       589,921  

Darling Ingredients Inc.(a)

    15,988       1,351,306  

Freshpet Inc.(a)

    4,314       672,596  

Hershey Co. (The)

    8,062       1,413,672  

Hormel Foods Corp.

    8,916       377,325  
 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  15


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)  

Lamb Weston Holdings Inc.

    6,580     $ 371,441  

McCormick & Co. Inc./MD, NVS

    12,128       973,029  
   

 

 

 
      5,749,290  
Health Care Equipment & Supplies — 4.2%  

Abbott Laboratories

    103,187       13,299,772  

ABIOMED Inc.(a)

    4,500       1,494,180  

Align Technology Inc.(a)

    7,282       4,546,662  

Baxter International Inc.

    10,427       823,316  

Boston Scientific Corp.(a)

    45,405       1,958,318  

Cooper Companies Inc. (The)

    4,881       2,034,986  

Danaher Corp.

    62,899       19,610,021  

DENTSPLY SIRONA Inc.

    13,286       760,092  

Dexcom Inc.(a)(b)

    9,594       5,979,077  

Edwards Lifesciences Corp.(a)

    61,625       7,383,907  

Hologic Inc.(a)(b)

    13,873       1,017,030  

IDEXX Laboratories Inc.(a)

    8,405       5,598,907  

Insulet Corp.(a)

    6,827       2,116,507  

Intuitive Surgical Inc.(a)

    35,295       12,746,083  

Masimo Corp.(a)

    4,965       1,407,776  

Novocure Ltd.(a)

    8,838       906,514  

Penumbra Inc.(a)

    3,382       935,292  

ResMed Inc.

    14,427       3,793,003  

STERIS PLC

    9,830       2,297,664  

Stryker Corp.

    11,768       3,131,112  

Teleflex Inc.

    4,643       1,657,272  
   

 

 

 
      93,497,491  
Health Care Providers & Services — 0.9%  

Amedisys Inc.(a)

    3,247       549,847  

Chemed Corp.

    955       460,549  

DaVita Inc.(a)

    2,529       261,094  

Encompass Health Corp.

    5,393       342,779  

Guardant Health Inc.(a)

    10,043       1,172,922  

Humana Inc.

    3,519       1,629,860  

LHC Group Inc.(a)

    3,157       424,900  

Molina Healthcare Inc.(a)

    2,006       593,214  

UnitedHealth Group Inc.

    31,378       14,448,628  
   

 

 

 
      19,883,793  
Health Care Technology — 0.3%  

Cerner Corp.

    15,846       1,177,199  

Teladoc Health Inc.(a)

    15,789       2,361,877  

Veeva Systems Inc., Class A(a)

    13,695       4,341,452  
   

 

 

 
      7,880,528  
Hotels, Restaurants & Leisure — 2.1%  

Airbnb Inc., Class A(a)

    33,367       5,694,412  

Booking Holdings Inc.(a)

    4,064       9,838,050  

Boyd Gaming Corp.(a)

    4,256       271,448  

Caesars Entertainment Inc.(a)

    13,974       1,529,594  

Chipotle Mexican Grill Inc.(a)

    2,788       4,959,936  

Churchill Downs Inc.

    3,456       794,880  

Darden Restaurants Inc.

    5,890       848,985  

Domino’s Pizza Inc.

    3,652       1,785,718  

DraftKings Inc., Class A(a)(b)

    32,741       1,525,403  

Expedia Group Inc.(a)

    5,629       925,464  

Hilton Worldwide Holdings Inc.(a)

    11,320       1,629,514  

Marriott International Inc./MD, Class A(a)

    27,121       4,339,902  

MGM Resorts International

    39,653       1,870,035  

Penn National Gaming Inc.(a)(b)

    16,439       1,177,032  

Starbucks Corp.

    58,082       6,160,758  

Texas Roadhouse Inc.

    6,923       614,832  
Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)  

Vail Resorts Inc.

    3,945     $ 1,359,881  

Yum! Brands Inc.

    18,691       2,335,254  
   

 

 

 
      47,661,098  
Household Durables — 0.2%  

DR Horton Inc.

    17,840       1,592,577  

Garmin Ltd.

    7,988       1,147,077  

NVR Inc.(a)

    197       964,275  

Tempur Sealy International Inc.

    19,481       866,320  
   

 

 

 
      4,570,249  
Household Products — 0.1%  

Church & Dwight Co. Inc.

    13,768       1,202,773  

Clorox Co. (The)

    4,046       659,538  
   

 

 

 
      1,862,311  
Independent Power and Renewable Electricity Producers — 0.0%  

Vistra Corp.

    29,625       580,354  
   

 

 

 
Industrial Conglomerates — 0.1%  

Roper Technologies Inc.

    5,204       2,538,876  
   

 

 

 
Insurance — 0.6%  

American Financial Group Inc./OH

    3,034       412,745  

Aon PLC, Class A

    9,829       3,144,494  

Arch Capital Group Ltd.(a)

    19,471       814,277  

Arthur J Gallagher & Co.

    13,172       2,208,549  

Athene Holding Ltd., Class A(a)

    4,289       373,186  

Brown & Brown Inc.

    23,172       1,462,385  

Cincinnati Financial Corp.

    6,261       760,336  

Erie Indemnity Co., Class A, NVS

    2,487       511,849  

Everest Re Group Ltd.

    1,883       492,405  

Loews Corp.

    7,825       438,748  

RenaissanceRe Holdings Ltd.

    2,216       314,229  

W R Berkley Corp.

    6,184       492,246  

Willis Towers Watson PLC

    5,229       1,266,882  
   

 

 

 
      12,692,331  
Interactive Media & Services — 11.6%  

Alphabet Inc., Class A(a)

    29,806       88,253,182  

Alphabet Inc., Class C, NVS(a)

    27,891       82,708,250  

Bumble Inc., Class A(a)(b)

    7,021       368,743  

IAC/InterActiveCorp.(a)

    2,743       417,951  

Match Group Inc.(a)

    27,448       4,138,609  

Meta Platforms Inc, Class A(a)

    235,976       76,354,754  

Pinterest Inc., Class A(a)

    54,830       2,447,611  

Snap Inc., Class A, NVS(a)

    103,574       5,445,921  

Twitter Inc.(a)

    36,394       1,948,535  
   

 

 

 
      262,083,556  
Internet & Direct Marketing Retail — 7.2%  

Amazon.com Inc.(a)

    43,116       145,405,692  

Chewy Inc., Class A(a)(b)

    8,311       629,974  

DoorDash Inc., Class A(a)

    15,188       2,958,622  

eBay Inc.

    28,033       2,150,692  

Etsy Inc.(a)

    12,549       3,145,909  

MercadoLibre Inc.(a)

    4,524       6,700,134  

Wayfair Inc., Class A(a)(b)

    4,645       1,157,070  
   

 

 

 
      162,148,093  
IT Services — 7.4%  

Accenture PLC, Class A

    30,317       10,877,436  

Akamai Technologies Inc.(a)

    9,630       1,015,580  

Automatic Data Processing Inc.

    16,257       3,649,534  

Broadridge Financial Solutions Inc.

    11,519       2,055,105  
 

 

 

16  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
IT Services (continued)  

Cloudflare Inc., Class A(a)(b)

    26,121     $ 5,086,281  

Concentrix Corp.

    2,199       390,718  

EPAM Systems Inc.(a)

    5,614       3,779,569  

Euronet Worldwide Inc.(a)

    5,263       590,456  

Fidelity National Information Services Inc.

    23,192       2,568,282  

Fiserv Inc.(a)

    22,585       2,224,397  

FleetCor Technologies Inc.(a)

    8,190       2,026,288  

Gartner Inc.(a)

    8,294       2,752,862  

Genpact Ltd.

    7,500       370,125  

Global Payments Inc.

    16,090       2,300,709  

GoDaddy Inc., Class A(a)

    16,726       1,156,937  

Jack Henry & Associates Inc.

    7,280       1,211,974  

Mastercard Inc., Class A

    86,239       28,934,909  

MongoDB Inc.(a)(b)

    6,410       3,341,469  

Okta Inc.(a)

    12,396       3,064,043  

Paychex Inc.

    15,445       1,904,060  

PayPal Holdings Inc.(a)

    116,317       27,054,171  

Snowflake Inc., Class A(a)

    22,537       7,974,492  

Square Inc., Class A(a)

    39,335       10,010,758  

Twilio Inc., Class A(a)

    16,489       4,804,235  

VeriSign Inc.(a)

    9,652       2,149,211  

Visa Inc., Class A

    167,062       35,378,720  

WEX Inc.(a)(b)

    2,474       370,358  
   

 

 

 
      167,042,679  
Leisure Products — 0.2%  

Brunswick Corp./DE

    4,987       464,240  

Hasbro Inc.

    7,742       741,374  

Mattel Inc.(a)

    16,880       368,153  

Peloton Interactive Inc., Class A(a)

    26,647       2,436,602  

Polaris Inc.

    3,028       348,068  

YETI Holdings Inc.(a)

    8,668       852,324  
   

 

 

 
      5,210,761  
Life Sciences Tools & Services — 1.9%  

10X Genomics Inc., Class A(a)(b)

    8,985       1,449,011  

Agilent Technologies Inc.

    20,320       3,200,197  

Avantor Inc.(a)

    57,918       2,338,729  

Bio-Rad Laboratories Inc., Class A(a)

    2,134       1,695,847  

Bio-Techne Corp.

    3,857       2,019,718  

Bruker Corp.

    9,860       791,758  

Charles River Laboratories International Inc.(a)

    4,996       2,241,605  

Illumina Inc.(a)

    14,495       6,016,295  

IQVIA Holdings Inc.(a)

    10,709       2,799,547  

Mettler-Toledo International Inc.(a)

    2,289       3,389,734  

PerkinElmer Inc.

    3,229       571,178  

PPD Inc.(a)

    11,841       558,540  

Repligen Corp.(a)

    5,069       1,472,545  

Sotera Health Co.(a)

    9,813       242,381  

Syneos Health Inc.(a)

    3,721       347,318  

Thermo Fisher Scientific Inc.

    13,715       8,682,555  

Waters Corp.(a)

    4,111       1,510,998  

West Pharmaceutical Services Inc.

    7,332       3,151,880  
   

 

 

 
      42,479,836  
Machinery — 1.4%  

AGCO Corp.

    3,824       467,331  

Caterpillar Inc.

    22,881       4,667,953  

Deere & Co.

    18,138       6,208,819  

Donaldson Co. Inc.

    6,124       367,501  

Dover Corp.

    6,251       1,056,919  

Fortive Corp.

    18,665       1,413,127  
Security   Shares     Value  
Machinery (continued)  

Graco Inc.

    16,827     $ 1,265,054  

IDEX Corp.

    7,535       1,677,065  

Ingersoll Rand Inc.(a)

    19,657       1,056,760  

ITT Inc.

    4,576       430,464  

Lincoln Electric Holdings Inc.

    2,255       321,112  

Middleby Corp. (The)(a)

    2,485       453,363  

Nordson Corp.

    5,305       1,348,584  

Oshkosh Corp.

    3,104       332,128  

Otis Worldwide Corp.

    27,404       2,200,815  

PACCAR Inc.

    10,187       912,959  

Parker-Hannifin Corp.

    3,766       1,116,958  

Pentair PLC

    8,596       635,846  

Stanley Black & Decker Inc.

    7,165       1,287,766  

Toro Co. (The)

    10,452       997,853  

Woodward Inc.

    6,306       712,263  

Xylem Inc./NY

    17,865       2,332,990  
   

 

 

 
      31,263,630  
Media — 0.6%  

Altice USA Inc., Class A(a)

    13,656       222,593  

Cable One Inc.

    489       836,782  

Charter Communications Inc., Class A(a)(b)

    12,546       8,467,170  

Liberty Broadband Corp., Class A(a)

    2,325       373,790  

Liberty Broadband Corp., Class C, NVS(a)

    14,389       2,337,493  

Liberty Media Corp.-Liberty SiriusXM, Class A(a)

    4,059       202,057  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    8,002       394,658  

New York Times Co. (The), Class A

    16,568       904,447  

Sirius XM Holdings Inc.(b)

    39,352       239,654  
   

 

 

 
      13,978,644  
Metals & Mining — 0.3%  

Freeport-McMoRan Inc.

    83,605       3,153,581  

Newmont Corp.

    32,784       1,770,336  

Royal Gold Inc.

    6,540       647,591  

Southern Copper Corp.

    4,167       249,978  
   

 

 

 
      5,821,486  
Multi-Utilities — 0.0%  

CMS Energy Corp.

    8,372       505,250  
   

 

 

 
Multiline Retail — 0.2%  

Dollar General Corp.

    6,670       1,477,538  

Target Corp.

    12,443       3,230,452  
   

 

 

 
      4,707,990  
Oil, Gas & Consumable Fuels — 0.1%  

Cheniere Energy Inc.(a)

    23,248       2,403,843  

Targa Resources Corp.

    9,200       502,964  

Texas Pacific Land Corp.

    395       503,100  
   

 

 

 
      3,409,907  
Personal Products — 0.2%  

Estee Lauder Companies Inc. (The), Class A

    15,049       4,880,842  
   

 

 

 
Pharmaceuticals — 1.0%  

Catalent Inc.(a)

    16,887       2,328,042  

Elanco Animal Health Inc.(a)(b)

    33,006       1,085,237  

Eli Lilly & Co.

    36,015       9,175,182  

Zoetis Inc.

    46,885       10,136,537  
   

 

 

 
      22,724,998  
Professional Services — 0.8%  

Booz Allen Hamilton Holding Corp.

    7,425       644,936  

Clarivate PLC(a)(b)

    36,890       865,070  

CoStar Group Inc.(a)

    39,159       3,369,632  
 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  17


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Professional Services (continued)

   

Dun & Bradstreet Holdings Inc.(a)

    7,372     $ 138,888  

Equifax Inc.

    12,081       3,351,632  

IHS Markit Ltd.

    17,158       2,242,894  

Jacobs Engineering Group Inc.

    5,796       813,874  

Leidos Holdings Inc.

    4,420       441,912  

Robert Half International Inc.

    5,366       606,734  

TransUnion

    18,987       2,189,011  

Verisk Analytics Inc.

    16,000       3,364,320  
   

 

 

 
      18,028,903  
Real Estate Management & Development — 0.2%  

CBRE Group Inc., Class A(a)

    13,980       1,455,038  

Zillow Group Inc., Class A(a)

    3,669       387,887  

Zillow Group Inc., Class C, NVS(a)(b)

    16,778       1,738,704  
   

 

 

 
      3,581,629  
Road & Rail — 0.7%            

AMERCO

    592       436,298  

JB Hunt Transport Services Inc.

    8,316       1,639,832  

Kansas City Southern

    6,176       1,916,104  

Knight-Swift Transportation Holdings Inc.

    4,684       265,536  

Lyft Inc., Class A(a)

    11,307       518,652  

Old Dominion Freight Line Inc.

    9,299       3,174,214  

TuSimple Holdings Inc., Class A(a)

    3,320       129,878  

Uber Technologies Inc.(a)

    160,198       7,019,876  

XPO Logistics Inc.(a)

    5,317       456,199  
   

 

 

 
      15,556,589  
Semiconductors & Semiconductor Equipment — 6.8%  

Advanced Micro Devices Inc.(a)

    120,057       14,434,453  

Analog Devices Inc.

    14,343       2,488,367  

Applied Materials Inc.

    60,997       8,335,240  

Broadcom Inc.

    13,125       6,978,169  

Brooks Automation Inc.

    7,407       862,545  

Enphase Energy Inc.(a)

    13,348       3,091,797  

Entegris Inc.

    13,446       1,892,928  

First Solar Inc.(a)

    4,688       560,638  

KLA Corp.

    9,346       3,483,815  

Lam Research Corp.

    9,528       5,369,695  

Marvell Technology Inc.

    81,257       5,566,105  

Microchip Technology Inc.

    17,646       1,307,392  

MKS Instruments Inc.

    3,210       481,661  

Monolithic Power Systems Inc.

    4,278       2,247,918  

NVIDIA Corp.

    246,685       63,069,954  

NXP Semiconductors NV

    10,448       2,098,585  

ON Semiconductor Corp.(a)

    22,348       1,074,268  

Qorvo Inc.(a)

    11,023       1,854,399  

QUALCOMM Inc.

    75,638       10,062,880  

Skyworks Solutions Inc.

    11,078       1,851,466  

SolarEdge Technologies Inc.(a)

    5,177       1,836,178  

Teradyne Inc.

    16,356       2,261,054  

Texas Instruments Inc.

    34,896       6,542,302  

Universal Display Corp.

    4,277       783,546  

Wolfspeed Inc.(a)

    6,456       775,430  

Xilinx Inc.

    14,495       2,609,100  
   

 

 

 
      151,919,885  
Software — 19.9%            

Adobe Inc.(a)

    47,159       30,670,327  

Anaplan Inc.(a)

    14,414       939,937  

ANSYS Inc.(a)

    8,649       3,282,987  

Aspen Technology Inc.(a)

    6,613       1,036,191  

Autodesk Inc.(a)

    21,741       6,905,159  
Security   Shares     Value  

 

Software (continued)

           

Avalara Inc.(a)

    8,571     $ 1,539,694  

Bill.com Holdings Inc.(a)

    8,751       2,575,507  

Black Knight Inc.(a)

    15,314       1,073,665  

Cadence Design Systems Inc.(a)

    27,445       4,751,004  

Ceridian HCM Holding Inc.(a)

    13,374       1,675,093  

Citrix Systems Inc.

    6,190       586,379  

Coupa Software Inc.(a)

    7,287       1,659,250  

Crowdstrike Holdings Inc., Class A(a)

    19,756       5,567,241  

Datadog Inc., Class A(a)

    23,766       3,970,110  

DocuSign Inc.(a)

    19,241       5,354,578  

Dropbox Inc., Class A(a)

    28,481       868,386  

Dynatrace Inc.(a)

    19,447       1,458,525  

Elastic NV(a)

    7,078       1,228,104  

Fair Isaac Corp.(a)

    2,818       1,122,128  

Five9 Inc.(a)

    6,684       1,056,139  

Fortinet Inc.(a)

    13,442       4,521,082  

Guidewire Software Inc.(a)

    8,164       1,026,460  

HubSpot Inc.(a)

    4,415       3,577,165  

Intuit Inc.

    27,049       16,932,404  

Manhattan Associates Inc.(a)

    6,206       1,126,637  

Microsoft Corp.

    743,914       246,696,761  

NortonLifeLock Inc.

    16,678       424,455  

Nuance Communications Inc.(a)

    14,209       782,205  

Oracle Corp.

    57,320       5,499,281  

Palantir Technologies Inc., Class A(a)

    155,408       4,021,959  

Palo Alto Networks Inc.(a)

    9,658       4,916,791  

Paycom Software Inc.(a)

    4,763       2,609,410  

Paylocity Holding Corp.(a)

    3,899       1,189,741  

Pegasystems Inc.

    3,970       471,318  

PTC Inc.(a)

    10,485       1,335,265  

RingCentral Inc., Class A(a)

    8,027       1,956,822  

salesforce.com Inc.(a)

    96,173       28,822,086  

ServiceNow Inc.(a)

    19,609       13,682,376  

Smartsheet Inc., Class A(a)

    12,402       855,862  

Splunk Inc.(a)

    16,250       2,678,325  

SS&C Technologies Holdings Inc.

    9,251       735,177  

Synopsys Inc.(a)

    15,127       5,040,014  

Trade Desk Inc. (The), Class A(a)

    42,973       3,219,107  

Tyler Technologies Inc.(a)

    4,052       2,201,127  

VMware Inc., Class A(a)

    7,911       1,200,099  

Workday Inc., Class A(a)

    18,737       5,433,355  

Zendesk Inc.(a)

    11,829       1,204,192  

Zoom Video Communications Inc., Class A(a)

    21,358       5,865,975  

Zscaler Inc.(a)

    7,743       2,468,933  
   

 

 

 
      447,814,788  
Specialty Retail — 2.0%            

Advance Auto Parts Inc.

    3,031       683,551  

AutoZone Inc.(a)

    764       1,363,618  

Bath & Body Works Inc.

    13,997       967,053  

Burlington Stores Inc.(a)

    6,604       1,824,619  

CarMax Inc.(a)(b)

    6,138       840,415  

Carvana Co.(a)

    8,380       2,540,649  

Five Below Inc.(a)

    5,468       1,078,836  

Floor & Decor Holdings Inc., Class A(a)

    10,459       1,421,587  

Home Depot Inc. (The)

    35,221       13,093,055  

Lithia Motors Inc.

    2,967       947,126  

Lowe’s Companies Inc.

    33,633       7,864,068  

O’Reilly Automotive Inc.(a)

    2,294       1,427,602  

RH(a)(b)

    1,678       1,106,859  

Ross Stores Inc.

    21,157       2,394,972  
 

 

 

18  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Specialty Retail (continued)

   

TJX Companies Inc. (The)

    65,765     $       4,306,950  

Tractor Supply Co.

    6,370       1,383,373  

Ulta Beauty Inc.(a)

    5,426       1,993,295  

Williams-Sonoma Inc.

    3,494       648,941  
   

 

 

 
      45,886,569  
Technology Hardware, Storage & Peripherals — 6.5%  

Apple Inc.

    977,761       146,468,598  

Western Digital Corp.(a)

    12,252       640,657  
   

 

 

 
      147,109,255  
Textiles, Apparel & Luxury Goods — 1.1%  

Deckers Outdoor Corp.(a)

    2,720       1,075,243  

Lululemon Athletica Inc.(a)

    11,740       5,470,958  

Nike Inc., Class B

    86,484       14,467,908  

Under Armour Inc., Class A(a)

    18,804       412,936  

Under Armour Inc., Class C, NVS(a)

    19,589       369,840  

VF Corp.

    32,321       2,355,555  
   

 

 

 
      24,152,440  
Trading Companies & Distributors — 0.3%  

Fastenal Co.

    56,985       3,252,704  

SiteOne Landscape Supply Inc.(a)

    4,429       1,040,638  

United Rentals Inc.(a)

    2,272       861,338  

Watsco Inc.

    3,281       950,112  

WW Grainger Inc.

    2,216       1,026,251  
   

 

 

 
      7,131,043  
Water Utilities — 0.1%  

American Water Works Co. Inc.

    9,984       1,739,013  

Essential Utilities Inc.

    12,184       573,501  
   

 

 

 
      2,312,514  
Security   Shares     Value  

 

Wireless Telecommunication Services — 0.2%

 

T-Mobile U.S. Inc.(a)

    35,463     $       4,079,309  
   

 

 

 

Total Common Stocks — 99.9%
(Cost: $1,541,568,952)

 

    2,246,532,154  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 1.7%            

BlackRock Cash Funds: Institutional,
SL Agency Shares, 0.05%(c)(d)(e)

    35,162,811       35,180,392  

BlackRock Cash Funds: Treasury,
SL Agency Shares, 0.00%(c)(d)

    2,717,000       2,717,000  
   

 

 

 
      37,897,392  
   

 

 

 

Total Short-Term Investments — 1.7%
(Cost: $37,897,392)

 

    37,897,392  
   

 

 

 

Total Investments in Securities — 101.6%
(Cost: $1,579,466,344)

 

    2,284,429,546  

Other Assets, Less Liabilities — (1.6)%

 

    (35,001,039
   

 

 

 

Net Assets — 100.0%

    $ 2,249,428,507  
   

 

 

 

 

(a)

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 19,338,813     $ 15,843,705 (a)    $     $ (2,126   $     $ 35,180,392       35,162,811     $ 23,965 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    3,067,000             (350,000 )(a)                  2,717,000       2,717,000       101        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (2,126   $     $ 37,897,392       $ 24,066     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  19


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Growth ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

NASDAQ 100 E-Mini Index

     8        12/17/21      $ 2,534      $ 74,042  

S&P 500 E-Mini Index

     3        12/17/21        315        (6,346
           

 

 

 
            $ 67,696  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 74,042  
  

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 6,346  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 625,695  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 28,164  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 2,864,194  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

 

 

20  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Growth ETF

 

Fair Value Hierarchy as of Period End (continued)

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
    

 

Level 1

    

 

Level 2

    

 

Level 3

    

 

Total

 

 

 

Investments

           

Assets

           

Common Stocks

   $ 2,246,532,154      $      $      $ 2,246,532,154  

Money Market Funds

     37,897,392                      37,897,392  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,284,429,546      $             —      $             —      $ 2,284,429,546  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 74,042      $      $      $ 74,042  

Liabilities

           

Futures Contracts

     (6,346                    (6,346
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 67,696      $      $      $ 67,696  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

 Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E   O F   I N V E S T M E N T S

  21


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® Morningstar Mid-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks  

Aerospace & Defense — 1.0%

 

Axon Enterprise Inc.(a)(b)

    6,537     $ 1,176,399  

HEICO Corp.

    4,211       586,971  

HEICO Corp., Class A

    7,423       932,923  

Howmet Aerospace Inc.

    38,431       1,141,016  

Huntington Ingalls Industries Inc.

    3,996       810,109  

Textron Inc.

    22,188       1,638,584  

TransDigm Group Inc.(a)

    5,190       3,237,626  
   

 

 

 
            9,523,628  
Air Freight & Logistics — 0.4%  

CH Robinson Worldwide Inc.

    13,113       1,271,830  

Expeditors International of Washington Inc.

    16,840       2,075,698  
   

 

 

 
      3,347,528  
Airlines — 0.9%  

Alaska Air Group Inc.(a)

    12,408       655,142  

American Airlines Group Inc.(a)

    64,028       1,229,338  

Delta Air Lines Inc.(a)

    63,429       2,481,977  

Southwest Airlines Co.(a)

    58,644       2,772,688  

United Airlines Holdings Inc.(a)(b)

    32,024       1,477,587  
   

 

 

 
      8,616,732  
Auto Components — 0.5%  

Autoliv Inc.

    7,796       755,042  

BorgWarner Inc.

    23,666       1,066,627  

Gentex Corp.

    23,790       841,928  

Lear Corp.

    5,948       1,022,164  

QuantumScape Corp.(a)

    23,080       667,935  
   

 

 

 
      4,353,696  
Automobiles — 0.1%  

Harley-Davidson Inc.

    15,286       557,786  

Thor Industries Inc.

    5,496       560,372  
   

 

 

 
      1,118,158  
Banks — 3.4%  

Citizens Financial Group Inc.

    42,212       2,000,005  

Comerica Inc.

    13,212       1,124,209  

Commerce Bancshares Inc.

    10,575       745,643  

Cullen/Frost Bankers Inc.

    5,611       726,624  

East West Bancorp. Inc.

    13,998       1,112,561  

Fifth Third Bancorp

    68,465       2,980,281  

First Citizens BancShares Inc./NC, Class A(b)

    711       578,683  

First Horizon Corp.

    54,690       928,089  

First Republic Bank/CA

    17,476       3,780,583  

Huntington Bancshares Inc./OH

    146,358       2,303,675  

KeyCorp

    94,778       2,205,484  

M&T Bank Corp.

    12,746       1,875,192  

People’s United Financial Inc.

    42,597       730,113  

Regions Financial Corp.

    94,579       2,239,631  

Signature Bank/New York NY

    6,002       1,787,516  

SVB Financial Group(a)

    5,815       4,171,681  

Western Alliance Bancorp.

    10,282       1,193,637  

Zions Bancorp. NA

    16,135       1,016,344  
   

 

 

 
      31,499,951  
Beverages — 0.3%  

Boston Beer Co. Inc. (The), Class A, NVS(a)

    930       458,006  

Brown-Forman Corp., Class A

    5,582       357,416  

Brown-Forman Corp., Class B, NVS

    18,062       1,226,229  

Molson Coors Beverage Co., Class B

    18,756       826,952  
   

 

 

 
      2,868,603  
Security   Shares     Value  
Biotechnology — 2.2%  

Acceleron Pharma Inc.(a)

    5,313     $ 925,418  

Alnylam Pharmaceuticals Inc.(a)

    11,780       1,879,617  

Arrowhead Pharmaceuticals Inc.(a)

    10,380       662,452  

BioMarin Pharmaceutical Inc.(a)

    18,142       1,437,391  

Bridgebio Pharma Inc.(a)

    10,884       537,452  

CRISPR Therapeutics AG(a)(b)

    6,979       637,392  

Exact Sciences Corp.(a)(b)

    17,032       1,621,787  

Exelixis Inc.(a)

    31,317       673,629  

Fate Therapeutics Inc.(a)

    8,073       434,327  

Horizon Therapeutics PLC(a)

    22,391       2,684,905  

Incyte Corp.(a)

    18,561       1,243,216  

Mirati Therapeutics Inc.(a)

    4,574       864,577  

Natera Inc.(a)

    8,612       986,677  

Neurocrine Biosciences Inc.(a)

    9,423       993,278  

Novavax Inc.(a)

    7,376       1,097,770  

Seagen Inc.(a)

    13,164       2,321,208  

Ultragenyx Pharmaceutical Inc.(a)

    6,754       566,796  

United Therapeutics Corp.(a)

    4,466       851,934  
   

 

 

 
            20,419,826  
Building Products — 1.3%  

A O Smith Corp.

    13,261       968,981  

Advanced Drainage Systems Inc.

    5,550       626,040  

Allegion PLC

    8,930       1,145,719  

AZEK Co. Inc. (The)(a)

    11,092       406,965  

Builders FirstSource Inc.(a)

    20,465       1,192,496  

Carlisle Companies Inc.

    5,146       1,147,146  

Fortune Brands Home & Security Inc.

    13,632       1,382,285  

Lennox International Inc.

    3,375       1,010,070  

Masco Corp.

    24,450       1,602,698  

Owens Corning

    10,165       949,513  

Trex Co. Inc.(a)

    11,483       1,221,791  
   

 

 

 
      11,653,704  
Capital Markets — 3.4%  

Ameriprise Financial Inc.

    11,275       3,406,516  

Apollo Global Management Inc.

    20,720       1,594,404  

Ares Management Corp., Class A

    16,158       1,369,229  

Carlyle Group Inc. (The)

    13,763       772,792  

FactSet Research Systems Inc.

    3,737       1,658,817  

Franklin Resources Inc.

    28,035       882,822  

Invesco Ltd.

    33,992       863,737  

Jefferies Financial Group Inc.

    19,676       846,068  

KKR & Co. Inc.

    57,791       4,604,209  

LPL Financial Holdings Inc.

    7,989       1,310,356  

MarketAxess Holdings Inc.

    3,762       1,537,417  

Morningstar Inc.

    2,358       746,896  

Nasdaq Inc.

    11,612       2,437,010  

Northern Trust Corp.

    20,656       2,541,514  

Raymond James Financial Inc.

    18,319       1,806,070  

SEI Investments Co.

    10,674       672,889  

State Street Corp.

    36,378       3,585,052  

Tradeweb Markets Inc., Class A

    10,429       929,224  
   

 

 

 
      31,565,022  
Chemicals — 2.4%  

Albemarle Corp.

    11,592       2,903,448  

Axalta Coating Systems Ltd.(a)

    21,539       671,802  

Celanese Corp.

    11,001       1,776,772  

CF Industries Holdings Inc.

    21,239       1,206,375  

Corteva Inc.

    72,773       3,140,155  

Eastman Chemical Co.

    13,429       1,397,019  
 

 

 

22  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Chemicals (continued)

   

FMC Corp.

    12,813     $ 1,166,111  

International Flavors & Fragrances Inc.

    24,688       3,640,246  

LyondellBasell Industries NV, Class A

    26,194       2,431,327  

Mosaic Co. (The)

    34,418       1,430,756  

RPM International Inc.

    12,807       1,116,770  

Scotts Miracle-Gro Co. (The)

    4,035       599,036  

Westlake Chemical Corp.

    3,317       322,877  
   

 

 

 
      21,802,694  
Commercial Services & Supplies — 0.8%  

Copart Inc.(a)

    21,105       3,277,396  

IAA Inc.(a)

    13,409       799,847  

Republic Services Inc.

    20,827       2,803,314  

Rollins Inc.

    22,535       793,908  
   

 

 

 
      7,674,465  
Communications Equipment — 1.1%  

Arista Networks Inc.(a)

    5,550       2,273,779  

Ciena Corp.(a)

    15,408       836,500  

F5 Networks Inc.(a)

    5,978       1,262,255  

Juniper Networks Inc.

    32,371       955,592  

Motorola Solutions Inc.

    16,784       4,172,335  

Ubiquiti Inc.

    625       190,956  
   

 

 

 
      9,691,417  
Construction & Engineering — 0.3%  

AECOM(a)

    14,201       970,922  

MasTec Inc.(a)(b)

    5,693       507,417  

Quanta Services Inc.

    13,777       1,670,875  
   

 

 

 
      3,149,214  
Construction Materials — 0.5%  

Martin Marietta Materials Inc.

    6,183       2,428,930  

Vulcan Materials Co.

    13,151       2,500,268  
   

 

 

 
      4,929,198  
Consumer Finance — 1.2%  

Ally Financial Inc.

    35,725       1,705,511  

Discover Financial Services

    29,684       3,363,791  

OneMain Holdings Inc.

    10,967       579,167  

SoFi Technologies Inc.(a)

    58,022       1,165,662  

Synchrony Financial

    56,469       2,622,985  

Upstart Holdings Inc.(a)

    4,566       1,470,435  
   

 

 

 
      10,907,551  
Containers & Packaging — 1.6%  

Amcor PLC

    153,497       1,852,709  

AptarGroup Inc.

    6,532       788,935  

Avery Dennison Corp.

    8,210       1,787,481  

Ball Corp.

    32,374       2,961,573  

Berry Global Group Inc.(a)

    13,470       882,824  

Crown Holdings Inc.

    12,994       1,351,246  

International Paper Co.

    38,740       1,924,216  

Packaging Corp. of America

    9,394       1,290,454  

Sealed Air Corp.

    14,923       885,232  

Westrock Co.

    26,401       1,269,888  
   

 

 

 
      14,994,558  
Distributors — 0.6%  

Genuine Parts Co.

    14,185       1,859,795  

LKQ Corp.(a)

    26,742       1,472,949  

Pool Corp.

    3,972       2,046,216  
   

 

 

 
      5,378,960  
Diversified Consumer Services — 0.3%  

Bright Horizons Family Solutions Inc.(a)(b)

    6,029       1,000,814  
Security   Shares     Value  

Diversified Consumer Services (continued)

 

Chegg Inc.(a)

    14,010     $ 832,754  

Service Corp. International

    16,540       1,132,825  
   

 

 

 
      2,966,393  
Diversified Financial Services — 0.2%  

Equitable Holdings Inc.

    37,863       1,268,411  

Voya Financial Inc.

    11,294       787,982  
   

 

 

 
      2,056,393  
Diversified Telecommunication Services — 0.1%  

Lumen Technologies Inc.

    99,031       1,174,508  
   

 

 

 
Electric Utilities — 2.0%  

Alliant Energy Corp.

    24,761       1,400,730  

Avangrid Inc.

    6,970       367,319  

Edison International

    37,637       2,368,496  

Entergy Corp.

    19,919       2,052,055  

Evergy Inc.

    22,687       1,446,296  

Eversource Energy

    34,062       2,891,864  

FirstEnergy Corp.

    53,939       2,078,270  

NRG Energy Inc.

    24,159       963,703  

OGE Energy Corp.

    19,871       677,005  

PG&E Corp.(a)

    149,846       1,738,214  

Pinnacle West Capital Corp.

    11,205       722,610  

PPL Corp.

    76,284       2,196,979  
   

 

 

 
      18,903,541  
Electrical Equipment — 1.7%  

AMETEK Inc.

    22,917       3,034,211  

ChargePoint Holdings Inc.(a)

    16,964       420,368  

Generac Holdings Inc.(a)

    6,257       3,119,490  

Hubbell Inc.

    5,365       1,069,620  

Plug Power Inc.(a)

    51,372       1,966,006  

Rockwell Automation Inc.

    11,501       3,673,419  

Sensata Technologies Holding PLC(a)

    15,607       859,946  

Sunrun Inc.(a)

    20,304       1,171,135  

Vertiv Holdings Co.

    28,070       720,838  
   

 

 

 
      16,035,033  
Electronic Equipment, Instruments & Components — 2.2%  

Arrow Electronics Inc.(a)

    7,150       827,613  

CDW Corp./DE

    13,629       2,543,853  

Cognex Corp.

    17,491       1,532,037  

Corning Inc.

    76,187       2,709,972  

Flex Ltd.(a)

    48,607       821,458  

IPG Photonics Corp.(a)(b)

    3,565       566,871  

Jabil Inc.

    14,518       870,499  

Keysight Technologies Inc.(a)

    18,261       3,287,345  

Teledyne Technologies Inc.(a)(b)

    4,619       2,074,947  

Trimble Inc.(a)

    24,941       2,179,095  

Zebra Technologies Corp., Class A(a)

    5,293       2,826,197  
   

 

 

 
      20,239,887  
Energy Equipment & Services — 0.5%  

Baker Hughes Co.

    82,105       2,059,193  

Halliburton Co.

    88,208       2,204,318  
   

 

 

 
      4,263,511  
Entertainment — 0.6%  

Liberty Media Corp.-Liberty Formula One,
Class A(a)(b)

    2,341       122,083  

Liberty Media Corp.-Liberty Formula One,
Class C, NVS(a)(b)

    20,270       1,131,066  

Live Nation Entertainment Inc.(a)

    13,117       1,326,784  

Playtika Holding Corp.(a)

    10,196       288,343  

Take-Two Interactive Software Inc.(a)

    11,539       2,088,559  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  23


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Entertainment (continued)            

Zynga Inc., Class A(a)

    101,194     $ 746,812  
   

 

 

 
      5,703,647  
Equity Real Estate Investment Trusts (REITs) — 7.2%  

Alexandria Real Estate Equities Inc.

    13,743       2,805,496  

American Homes 4 Rent, Class A

    27,047       1,098,108  

Americold Realty Trust

    25,992       765,984  

AvalonBay Communities Inc.

    13,839       3,275,415  

Boston Properties Inc.

    14,069       1,598,801  

Camden Property Trust

    9,954       1,623,497  

CubeSmart

    19,916       1,095,579  

CyrusOne Inc.

    12,319       1,010,404  

Duke Realty Corp.

    37,488       2,108,325  

Equity LifeStyle Properties Inc.

    16,903       1,428,473  

Equity Residential

    33,776       2,918,246  

Essex Property Trust Inc.

    6,446       2,191,189  

Extra Space Storage Inc.

    13,263       2,617,718  

Federal Realty Investment Trust

    6,968       838,599  

Gaming and Leisure Properties Inc.

    22,152       1,074,151  

Healthpeak Properties Inc.

    53,402       1,896,305  

Host Hotels & Resorts Inc.(a)

    70,613       1,188,417  

Invitation Homes Inc.

    57,132       2,356,695  

Iron Mountain Inc.

    28,620       1,306,217  

Kilroy Realty Corp.

    10,434       703,043  

Kimco Realty Corp.

    60,675       1,371,255  

Lamar Advertising Co., Class A

    8,562       969,218  

Medical Properties Trust Inc.

    58,983       1,258,107  

Mid-America Apartment Communities Inc.

    11,500       2,348,415  

National Retail Properties Inc.

    17,482       792,984  

Omega Healthcare Investors Inc.

    23,676       695,127  

Realty Income Corp.

    38,596       2,756,912  

Regency Centers Corp.

    15,091       1,062,557  

SBA Communications Corp.

    10,859       3,749,939  

STORE Capital Corp.

    24,344       835,730  

Sun Communities Inc.

    11,488       2,251,418  

UDR Inc.

    27,615       1,533,461  

Ventas Inc.

    39,002       2,081,537  

VEREIT Inc.

    22,627       1,138,138  

VICI Properties Inc.

    61,085       1,792,845  

Vornado Realty Trust

    15,774       672,446  

Welltower Inc.

    41,885       3,367,554  

Weyerhaeuser Co.

    74,319       2,654,675  

WP Carey Inc.

    18,230       1,405,715  
   

 

 

 
      66,638,695  
Food & Staples Retailing — 0.5%  

Casey’s General Stores Inc.

    3,679       704,676  

Kroger Co. (The)

    67,401       2,697,388  

Performance Food Group Co.(a)(b)

    15,300       692,019  

U.S. Foods Holding Corp.(a)

    22,153       768,044  
   

 

 

 
      4,862,127  
Food Products — 2.3%  

Archer-Daniels-Midland Co.

    55,445       3,561,787  

Beyond Meat Inc.(a)(b)

    5,982       592,099  

Bunge Ltd.

    13,966       1,293,810  

Campbell Soup Co.

    20,195       806,790  

Conagra Brands Inc.

    47,555       1,531,271  

Darling Ingredients Inc.(a)

    16,135       1,363,730  

Freshpet Inc.(a)

    4,289       668,698  

Hershey Co. (The)

    14,415       2,527,670  

Hormel Foods Corp.

    28,063       1,187,626  
Security   Shares     Value  
Food Products (continued)            

JM Smucker Co. (The)

    10,712     $ 1,316,076  

Kellogg Co.

    25,324       1,552,361  

Lamb Weston Holdings Inc.

    14,303       807,405  

McCormick & Co. Inc./MD, NVS

    24,700       1,981,681  

Tyson Foods Inc., Class A

    29,222       2,336,883  
   

 

 

 
      21,527,887  
Gas Utilities — 0.2%  

Atmos Energy Corp.

    13,021       1,199,495  

UGI Corp.

    20,817       903,666  
   

 

 

 
      2,103,161  
Health Care Equipment & Supplies — 3.2%  

ABIOMED Inc.(a)

    4,492       1,491,524  

Cooper Companies Inc. (The)

    4,882       2,035,403  

DENTSPLY SIRONA Inc.

    21,609       1,236,251  

Dexcom Inc.(a)(b)

    9,590       5,976,584  

Hill-Rom Holdings Inc.

    6,494       1,005,921  

Hologic Inc.(a)

    25,121       1,841,620  

Insulet Corp.(a)

    6,826       2,116,196  

Masimo Corp.(a)

    5,011       1,420,819  

Novocure Ltd.(a)

    8,874       910,206  

Penumbra Inc.(a)

    3,412       943,589  

ResMed Inc.

    14,424       3,792,214  

STERIS PLC

    9,888       2,311,221  

Teleflex Inc.

    4,635       1,654,417  

Zimmer Biomet Holdings Inc.

    20,701       2,962,727  
   

 

 

 
      29,698,692  
Health Care Providers & Services — 2.1%  

Agilon Health Inc.(a)

    4,725       115,762  

Amedisys Inc.(a)

    3,218       544,936  

AmerisourceBergen Corp.

    14,829       1,809,435  

Cardinal Health Inc.

    28,712       1,372,721  

Chemed Corp.

    1,566       755,203  

DaVita Inc.(a)

    6,678       689,437  

Encompass Health Corp.

    9,906       629,625  

Guardant Health Inc.(a)

    10,017       1,169,885  

Henry Schein Inc.(a)

    13,793       1,053,096  

Laboratory Corp. of America Holdings(a)

    9,585       2,751,087  

LHC Group Inc.(a)

    3,147       423,555  

McKesson Corp.

    15,332       3,187,216  

Molina Healthcare Inc.(a)

    5,783       1,710,149  

Quest Diagnostics Inc.

    12,106       1,776,919  

Universal Health Services Inc., Class B

    7,493       929,881  
   

 

 

 
      18,918,907  
Health Care Technology — 0.5%  

Cerner Corp.

    29,299       2,176,623  

Teladoc Health Inc.(a)(b)

    15,785       2,361,278  
   

 

 

 
      4,537,901  
Hotels, Restaurants & Leisure — 3.9%  

Airbnb Inc., Class A(a)

    33,360       5,693,218  

Aramark

    25,411       926,993  

Boyd Gaming Corp.(a)

    8,064       514,322  

Caesars Entertainment Inc.(a)

    21,155       2,315,626  

Carnival Corp.(a)

    79,125       1,753,410  

Churchill Downs Inc.

    3,447       792,810  

Darden Restaurants Inc.

    12,915       1,861,568  

Domino’s Pizza Inc.

    3,651       1,785,229  

DraftKings Inc., Class A(a)(b)

    32,793       1,527,826  

Expedia Group Inc.(a)

    14,402       2,367,833  

Hilton Worldwide Holdings Inc.(a)

    27,624       3,976,475  
 

 

 

24  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)  

MGM Resorts International

    39,613     $ 1,868,149  

Norwegian Cruise Line Holdings Ltd.(a)(b)

    36,499       938,754  

Penn National Gaming Inc.(a)

    16,460       1,178,536  

Royal Caribbean Cruises Ltd.(a)

    22,210       1,875,190  

Texas Roadhouse Inc.

    6,952       617,407  

Vail Resorts Inc.

    3,981       1,372,291  

Wynn Resorts Ltd.(a)

    10,480       941,104  

Yum! Brands Inc.

    29,305       3,661,367  
   

 

 

 
      35,968,108  
Household Durables — 1.7%            

DR Horton Inc.

    32,308       2,884,135  

Garmin Ltd.

    15,060       2,162,616  

Lennar Corp., Class A

    27,228       2,720,894  

Lennar Corp., Class B

    1,570       128,866  

Mohawk Industries Inc.(a)

    5,519       978,022  

Newell Brands Inc.

    37,693       862,793  

NVR Inc.(a)

    333       1,629,968  

PulteGroup Inc.

    25,653       1,233,396  

Tempur Sealy International Inc.

    19,384       862,007  

Toll Brothers Inc.

    11,546       694,723  

Whirlpool Corp.

    6,200       1,307,146  
   

 

 

 
            15,464,566  
Household Products — 0.4%            

Church & Dwight Co. Inc.

    24,338       2,126,167  

Clorox Co. (The)

    12,172       1,984,158  
   

 

 

 
      4,110,325  
Independent Power and Renewable Electricity Producers — 0.3%  

AES Corp. (The)

    65,967       1,657,751  

Vistra Corp.

    48,038       941,064  
   

 

 

 
      2,598,815  
Insurance — 3.7%            

Aflac Inc.

    61,166       3,282,779  

Alleghany Corp.(a)

    1,381       899,556  

American Financial Group Inc./OH

    6,581       895,279  

Arch Capital Group Ltd.(a)

    39,202       1,639,428  

Arthur J Gallagher & Co.

    20,493       3,436,061  

Assurant Inc.

    5,800       935,598  

Athene Holding Ltd., Class A(a)

    12,996       1,130,782  

Brown & Brown Inc.

    23,116       1,458,851  

Cincinnati Financial Corp.

    14,846       1,802,898  

Erie Indemnity Co., Class A, NVS

    2,483       511,026  

Everest Re Group Ltd.

    3,935       1,029,003  

Fidelity National Financial Inc.

    28,210       1,351,541  

Globe Life Inc.

    9,317       829,399  

Hartford Financial Services Group Inc. (The)

    34,413       2,509,740  

Lincoln National Corp.

    17,449       1,258,945  

Loews Corp.

    20,066       1,125,101  

Markel Corp.(a)

    1,358       1,783,231  

Old Republic International Corp.

    28,222       728,974  

Principal Financial Group Inc.

    24,708       1,657,660  

Reinsurance Group of America Inc.

    6,770       799,402  

RenaissanceRe Holdings Ltd.

    4,690       665,042  

W R Berkley Corp.

    13,840       1,101,664  

Willis Towers Watson PLC

    12,791       3,099,003  
   

 

 

 
      33,930,963  
Interactive Media & Services — 0.4%            

Bumble Inc., Class A(a)(b)

    7,045       370,003  

IAC/InterActiveCorp.(a)

    8,239       1,255,377  
Security   Shares     Value  
Interactive Media & Services (continued)            

Pinterest Inc., Class A(a)

    55,030     $ 2,456,539  
   

 

 

 
      4,081,919  
Internet & Direct Marketing Retail — 0.6%            

Chewy Inc., Class A(a)(b)

    8,613       652,865  

Etsy Inc.(a)

    12,546       3,145,157  

Wayfair Inc., Class A(a)(b)

    7,666       1,909,601  
   

 

 

 
      5,707,623  
IT Services — 4.1%            

Affirm Holdings Inc.(a)

    9,178       1,491,425  

Akamai Technologies Inc.(a)

    16,129       1,700,964  

Broadridge Financial Solutions Inc.

    11,511       2,053,678  

Cloudflare Inc., Class A(a)

    26,112       5,084,529  

Concentrix Corp.

    4,263       757,450  

DXC Technology Co.(a)

    25,079       816,823  

EPAM Systems Inc.(a)

    5,613       3,778,896  

Euronet Worldwide Inc.(a)

    5,235       587,315  

FleetCor Technologies Inc.(a)

    8,188       2,025,793  

Gartner Inc.(a)

    8,291       2,751,866  

Genpact Ltd.

    17,195       848,573  

GoDaddy Inc., Class A(a)

    16,808       1,162,609  

Jack Henry & Associates Inc.

    7,395       1,231,120  

MongoDB Inc.(a)(b)

    6,407       3,339,905  

Okta Inc.(a)

    12,396       3,064,043  

Paychex Inc.

    31,743       3,913,277  

VeriSign Inc.(a)

    9,647       2,148,097  

Western Union Co. (The)

    40,455       737,090  

WEX Inc.(a)

    4,460       667,662  
   

 

 

 
            38,161,115  
Leisure Products — 0.7%            

Brunswick Corp./DE

    7,716       718,282  

Hasbro Inc.

    12,793       1,225,058  

Mattel Inc.(a)

    34,622       755,106  

Peloton Interactive Inc., Class A(a)(b)

    26,638       2,435,779  

Polaris Inc.

    5,670       651,766  

YETI Holdings Inc.(a)

    8,705       855,963  
   

 

 

 
      6,641,954  
Life Sciences Tools & Services — 2.7%            

10X Genomics Inc., Class A(a)

    8,964       1,445,624  

Avantor Inc.(a)

    57,903       2,338,123  

Bio-Rad Laboratories Inc., Class A(a)

    2,128       1,691,079  

Bio-Techne Corp.

    3,855       2,018,671  

Bruker Corp.

    10,074       808,942  

Charles River Laboratories International Inc.(a)

    4,995       2,241,157  

Mettler-Toledo International Inc.(a)

    2,291       3,392,696  

PerkinElmer Inc.

    11,113       1,965,779  

PPD Inc.(a)

    11,892       560,946  

Repligen Corp.(a)

    5,061       1,470,220  

Sotera Health Co.(a)

    9,857       243,468  

Syneos Health Inc.(a)

    10,210       953,001  

Waters Corp.(a)

    6,082       2,235,439  

West Pharmaceutical Services Inc.

    7,333       3,152,310  
   

 

 

 
      24,517,455  
Machinery — 3.7%            

AGCO Corp.

    6,154       752,080  

Donaldson Co. Inc.

    12,503       750,305  

Dover Corp.

    14,270       2,412,772  

Fortive Corp.

    35,524       2,689,522  

Graco Inc.

    16,779       1,261,445  

IDEX Corp.

    7,524       1,674,617  
 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  25


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)            

Ingersoll Rand Inc.(a)

    40,161     $ 2,159,055  

ITT Inc.

    8,572       806,368  

Lincoln Electric Holdings Inc.

    5,912       841,869  

Middleby Corp. (The)(a)

    5,486       1,000,866  

Nordson Corp.

    5,345       1,358,753  

Oshkosh Corp.

    6,829       730,703  

Otis Worldwide Corp.

    42,303       3,397,354  

PACCAR Inc.

    34,412       3,084,004  

Pentair PLC

    16,395       1,212,738  

Snap-on Inc.

    5,373       1,091,955  

Stanley Black & Decker Inc.

    16,153       2,903,179  

Toro Co. (The)

    10,569       1,009,022  

Westinghouse Air Brake Technologies Corp.

    18,718       1,698,284  

Woodward Inc.

    6,332       715,199  

Xylem Inc./NY

    17,858       2,332,076  
   

 

 

 
      33,882,166  
Media — 1.5%            

Altice USA Inc., Class A(a)

    22,687       369,798  

Cable One Inc.

    488       835,071  

Discovery Inc., Class A(a)(b)

    16,825       394,378  

Discovery Inc., Class C, NVS(a)

    30,112       679,327  

DISH Network Corp., Class A(a)

    24,574       1,009,254  

Fox Corp., Class A, NVS

    31,965       1,270,289  

Fox Corp., Class B

    14,766       545,751  

Interpublic Group of Companies Inc. (The)

    38,949       1,424,365  

Liberty Media Corp.-Liberty SiriusXM, Class A(a)

    7,857       391,121  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    15,918       785,076  

New York Times Co. (The), Class A

    16,635       908,105  

News Corp., Class A, NVS

    38,948       891,909  

News Corp., Class B

    12,202       275,277  

Omnicom Group Inc.

    21,224       1,444,930  

Sirius XM Holdings Inc.(b)

    92,748       564,835  

ViacomCBS Inc., Class A

    809       31,494  

ViacomCBS Inc., Class B, NVS

    60,049       2,174,975  
   

 

 

 
      13,995,955  
Metals & Mining — 0.8%            

Cleveland-Cliffs Inc.(a)(b)

    44,832       1,080,900  

Nucor Corp.

    29,111       3,250,243  

Reliance Steel & Aluminum Co.

    6,320       923,731  

Royal Gold Inc.

    6,509       644,521  

Steel Dynamics Inc.

    19,153       1,265,630  
   

 

 

 
      7,165,025  
Mortgage Real Estate Investment — 0.3%            

AGNC Investment Corp.

    52,259       831,963  

Annaly Capital Management Inc.

    142,790       1,208,003  

Starwood Property Trust Inc.

    28,574       727,780  
   

 

 

 
      2,767,746  
Multi-Utilities — 1.9%            

Ameren Corp.

    25,489       2,148,468  

CenterPoint Energy Inc.

    58,667       1,527,689  

CMS Energy Corp.

    28,693       1,731,622  

Consolidated Edison Inc.

    35,028       2,641,111  

DTE Energy Co.

    19,205       2,176,887  

NiSource Inc.

    38,700       954,729  

Public Service Enterprise Group Inc.

    50,113       3,197,209  

WEC Energy Group Inc.

    31,266       2,815,816  
   

 

 

 
      17,193,531  
Multiline Retail — 0.4%            

Dollar Tree Inc.(a)

    22,989       2,477,295  
Security   Shares     Value  
Multiline Retail (continued)            

Kohl’s Corp.

    15,554     $ 754,835  
   

 

 

 
      3,232,130  
Oil, Gas & Consumable Fuels — 4.2%            

APA Corp.

    37,635       986,413  

Cheniere Energy Inc.(a)

    23,378       2,417,285  

Continental Resources Inc./OK

    5,855       285,783  

Coterra Energy Inc.

    80,468       1,715,578  

Devon Energy Corp.

    62,391       2,500,631  

Diamondback Energy Inc.

    16,839       1,804,972  

Hess Corp.

    27,314       2,255,317  

Marathon Oil Corp.

    77,755       1,268,962  

Marathon Petroleum Corp.

    63,259       4,170,666  

Occidental Petroleum Corp.

    87,925       2,948,125  

ONEOK Inc.

    44,174       2,810,350  

Phillips 66

    43,414       3,246,499  

Pioneer Natural Resources Co.

    22,489       4,204,993  

Targa Resources Corp.

    22,572       1,234,011  

Texas Pacific Land Corp.(b)

    617       785,854  

Valero Energy Corp.

    40,523       3,133,644  

Williams Companies Inc. (The)

    120,428       3,382,823  
   

 

 

 
      39,151,906  
Personal Products — 0.0%            

Coty Inc., Class A(a)

    33,292       282,316  
   

 

 

 
Pharmaceuticals — 0.8%            

Catalent Inc.(a)(b)

    16,884       2,327,628  

Elanco Animal Health Inc.(a)

    46,815       1,539,277  

Jazz Pharmaceuticals PLC(a)

    6,031       802,364  

Royalty Pharma PLC, Class A

    35,041       1,385,171  

Viatris Inc.

    119,727       1,598,356  
   

 

 

 
      7,652,796  
Professional Services — 2.1%            

Booz Allen Hamilton Holding Corp.

    13,346       1,159,234  

Clarivate PLC(a)

    36,666       859,818  

CoStar Group Inc.(a)(b)

    39,148       3,368,685  

Dun & Bradstreet Holdings Inc.(a)(b)

    15,021       282,996  

Equifax Inc.

    12,077       3,350,522  

Jacobs Engineering Group Inc.

    12,906       1,812,260  

Leidos Holdings Inc.

    13,998       1,399,520  

Nielsen Holdings PLC

    35,619       721,285  

Robert Half International Inc.

    11,059       1,250,441  

TransUnion

    18,982       2,188,435  

Verisk Analytics Inc.

    15,993       3,362,848  
   

 

 

 
      19,756,044  
Real Estate Management & Development — 0.8%            

CBRE Group Inc., Class A(a)

    33,278       3,463,574  

Jones Lang LaSalle Inc.(a)

    5,048       1,303,545  

Opendoor Technologies Inc.(a)(b)

    37,924       899,178  

Zillow Group Inc., Class A(a)

    3,641       384,927  

Zillow Group Inc., Class C, NVS(a)(b)

    16,756       1,736,424  
   

 

 

 
      7,787,648  
Road & Rail — 1.3%            

AMERCO

    976       719,302  

JB Hunt Transport Services Inc.

    8,325       1,641,607  

Kansas City Southern

    9,017       2,797,524  

Knight-Swift Transportation Holdings Inc.

    16,524       936,746  

Lyft Inc., Class A(a)

    28,765       1,319,451  

Old Dominion Freight Line Inc.

    9,298       3,173,872  

TuSimple Holdings Inc., Class A(a)

    3,362       131,521  
 

 

 

26  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Road & Rail (continued)            

XPO Logistics Inc.(a)

    9,814     $ 842,041  
   

 

 

 
      11,562,064  

Semiconductors & Semiconductor Equipment — 3.6%

 

Brooks Automation Inc.

    7,371       858,353  

Enphase Energy Inc.(a)

    13,344       3,090,871  

Entegris Inc.

    13,433       1,891,098  

First Solar Inc.(a)

    9,751       1,166,122  

Marvell Technology Inc.

    81,230       5,564,255  

MKS Instruments Inc.

    5,521       828,426  

Monolithic Power Systems Inc.

    4,279       2,248,444  

ON Semiconductor Corp.(a)

    42,675       2,051,387  

Qorvo Inc.(a)

    11,014       1,852,885  

Skyworks Solutions Inc.

    16,369       2,735,751  

SolarEdge Technologies Inc.(a)

    5,172       1,834,405  

Teradyne Inc.

    16,349       2,260,086  

Universal Display Corp.

    4,316       790,691  

Wolfspeed Inc.(a)

    11,393       1,368,413  

Xilinx Inc.

    24,529       4,415,220  
   

 

 

 
      32,956,407  
Software — 7.7%            

Anaplan Inc.(a)

    14,409       939,611  

ANSYS Inc.(a)

    8,649       3,282,987  

AppLovin Corp., Class A(a)

    2,615       256,924  

Aspen Technology Inc.(a)

    6,761       1,059,381  

Avalara Inc.(a)(b)

    8,546       1,535,203  

Bill.com Holdings Inc.(a)

    8,788       2,586,396  

Black Knight Inc.(a)

    15,469       1,084,532  

Cadence Design Systems Inc.(a)

    27,435       4,749,273  

Ceridian HCM Holding Inc.(a)

    13,346       1,671,587  

Citrix Systems Inc.

    12,286       1,163,853  

Coupa Software Inc.(a)(b)

    7,283       1,658,339  

Datadog Inc., Class A(a)

    23,763       3,969,609  

Dropbox Inc., Class A(a)

    28,598       871,953  

Dynatrace Inc.(a)

    19,406       1,455,450  

Elastic NV(a)

    7,106       1,232,962  

Fair Isaac Corp.(a)

    2,826       1,125,313  

Five9 Inc.(a)

    6,694       1,057,719  

Fortinet Inc.(a)

    13,436       4,519,064  

Guidewire Software Inc.(a)(b)

    8,203       1,031,363  

HubSpot Inc.(a)

    4,421       3,582,027  

Manhattan Associates Inc.(a)

    6,256       1,135,714  

NortonLifeLock Inc.

    57,515       1,463,757  

Nuance Communications Inc.(a)

    28,219       1,553,456  

Palo Alto Networks Inc.(a)

    9,653       4,914,246  

Paycom Software Inc.(a)

    4,765       2,610,505  

Paylocity Holding Corp.(a)

    3,883       1,184,859  

Pegasystems Inc.

    4,041       479,748  

PTC Inc.(a)

    10,445       1,330,171  

RingCentral Inc., Class A(a)

    8,065       1,966,086  

Smartsheet Inc., Class A(a)

    12,340       851,583  

Splunk Inc.(a)

    16,248       2,677,995  

SS&C Technologies Holdings Inc.

    21,981       1,746,830  

Trade Desk Inc. (The), Class A(a)

    43,030       3,223,377  

Tyler Technologies Inc.(a)

    4,047       2,198,411  

VMware Inc., Class A(a)

    7,938       1,204,195  

Zendesk Inc.(a)

    11,896       1,211,013  

Zscaler Inc.(a)

    7,740       2,467,976  
   

 

 

 
      71,053,468  
Security   Shares     Value  
Specialty Retail — 3.1%            

Advance Auto Parts Inc.

    6,473     $ 1,459,791  

AutoNation Inc.(a)

    4,348       526,630  

AutoZone Inc.(a)

    2,136       3,812,418  

Bath & Body Works Inc.

    26,224       1,811,816  

Best Buy Co. Inc.

    22,344       2,731,331  

Burlington Stores Inc.(a)

    6,599       1,823,238  

CarMax Inc.(a)(b)

    16,150       2,211,258  

Carvana Co.(a)

    8,376       2,539,436  

Five Below Inc.(a)

    5,528       1,090,674  

Floor & Decor Holdings Inc., Class A(a)

    10,409       1,414,791  

GameStop Corp., Class A(a)(b)

    6,194       1,136,661  

Gap Inc. (The)

    21,428       486,201  

Lithia Motors Inc.

    2,988       953,829  

RH(a)

    1,687       1,112,796  

Tractor Supply Co.

    11,333       2,461,188  

Ulta Beauty Inc.(a)

    5,428       1,994,030  

Williams-Sonoma Inc.

    7,432       1,380,345  
   

 

 

 
      28,946,433  

Technology Hardware, Storage & Peripherals — 1.1%

 

Dell Technologies Inc., Class C(a)

    27,515       3,026,375  

Hewlett Packard Enterprise Co.

    129,343       1,894,875  

NetApp Inc.

    22,203       1,982,728  

Seagate Technology Holdings PLC

    20,740       1,847,312  

Western Digital Corp.(a)

    30,353       1,587,158  
   

 

 

 
      10,338,448  

Textiles, Apparel & Luxury Goods — 0.8%

 

Capri Holdings Ltd.(a)

    15,134       805,734  

Deckers Outdoor Corp.(a)

    2,754       1,088,684  

PVH Corp.(a)

    7,076       773,619  

Tapestry Inc.

    27,535       1,073,314  

Under Armour Inc., Class A(a)

    18,862       414,210  

Under Armour Inc., Class C, NVS(a)

    20,748       391,722  

VF Corp.

    32,303       2,354,243  
   

 

 

 
      6,901,526  

Trading Companies & Distributors — 1.1%

 

Fastenal Co.

    56,969       3,251,790  

SiteOne Landscape Supply Inc.(a)(b)

    4,434       1,041,813  

United Rentals Inc.(a)

    7,175       2,720,114  

Watsco Inc.

    3,272       947,506  

WW Grainger Inc.

    4,333       2,006,656  
   

 

 

 
      9,967,879  

Water Utilities — 0.5%

 

American Water Works Co. Inc.

    17,990       3,133,498  

Essential Utilities Inc.

    22,077       1,039,165  
   

 

 

 
      4,172,663  
   

 

 

 

Total Common Stocks — 99.8%
(Cost: $771,787,307)

      923,074,182  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 4.1%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    36,297,905       36,316,054  
 

 

 

C H E D U L E   O F   I N V E S T M E N T S

  27


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Money Market Funds (continued)

   

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    1,612,000     $ 1,612,000  
   

 

 

 
      37,928,054  
   

 

 

 

Total Short-Term Investments — 4.1%
(Cost: $37,927,805)

 

    37,928,054  
   

 

 

 

Total Investments in Securities — 103.9%
(Cost: $809,715,112)

 

    961,002,236  

Other Assets, Less Liabilities — (3.9)%

 

    (35,868,593
   

 

 

 

Net Assets — 100.0%

    $  925,133,643  
   

 

 

 

 

 

(a)

Non-income producing security.

(b)

All or a portion of this security is on loan.

(c)

Affiliate of the Fund.

(d)

Annualized 7-day yield as of period end.

(e)

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

    
Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

         

 

    

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 29,118,740      $ 7,198,189 (a)     $      $ (3,429    $ 2,554      $ 36,316,054        36,297,905      $ 44,591 (b)     $     

BlackRock Cash Funds: Treasury, SL Agency Shares

     1,432,000        180,000 (a)                             1,612,000        1,612,000        51            
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

    
            $ (3,429    $ 2,554      $ 37,928,054         $ 44,642      $     
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

    

 

  (a)

Represents net amount purchased (sold).

 
  (b)

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

S&P 500 E-Mini Index

     3        12/17/21      $ 689      $ 25,843  

S&P Mid 400 E-Mini Index

     4        12/17/21        1,116        41,925  
           

 

 

 
            $ 67,768  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 67,768  
  

 

 

 

 

  (a)

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

 

 

28  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap ETF

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 70,734  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 10,489  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

 

   $ 1,662,542  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 923,074,182      $      $      $ 923,074,182  

Money Market Funds

     37,928,054                      37,928,054  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 961,002,236      $      $      $ 961,002,236  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 67,768      $             —      $             —      $ 67,768  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E   O F   I N V E S T M E N T S

  29


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® Morningstar Mid-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 1.4%  

Axon Enterprise Inc.(a)

    18,373     $ 3,306,405  

HEICO Corp.

    11,880       1,655,953  

HEICO Corp., Class A

    20,966       2,635,007  

Howmet Aerospace Inc.

    76,644       2,275,561  

Huntington Ingalls Industries Inc.

    5,452       1,105,284  

Textron Inc.

    29,013       2,142,610  

TransDigm Group Inc.(a)

    9,732       6,071,016  
   

 

 

 
            19,191,836  
Air Freight & Logistics — 0.4%  

CH Robinson Worldwide Inc.

    14,529       1,409,167  

Expeditors International of Washington Inc.

    31,349       3,864,078  
   

 

 

 
      5,273,245  
Auto Components — 0.1%  

Gentex Corp.

    28,667       1,014,525  
   

 

 

 
Automobiles — 0.1%  

Thor Industries Inc.

    8,155       831,484  
   

 

 

 
Banks — 2.3%  

Commerce Bancshares Inc.

    13,725       967,750  

First Citizens BancShares Inc./NC, Class A(b)

    1,990       1,619,661  

First Republic Bank/CA

    49,400       10,686,702  

Huntington Bancshares Inc./OH

    166,967       2,628,060  

Regions Financial Corp.

    124,422       2,946,313  

Signature Bank/New York NY

    7,155       2,130,902  

SVB Financial Group(a)(b)

    11,180       8,020,532  

Western Alliance Bancorp.

    16,122       1,871,603  
   

 

 

 
      30,871,523  
Beverages — 0.3%  

Boston Beer Co. Inc. (The), Class A, NVS(a)

    2,637       1,298,670  

Brown-Forman Corp., Class A

    9,030       578,191  

Brown-Forman Corp., Class B, NVS

    29,682       2,015,111  
   

 

 

 
      3,891,972  
Biotechnology — 3.8%  

Acceleron Pharma Inc.(a)

    14,970       2,607,475  

Alnylam Pharmaceuticals Inc.(a)

    33,300       5,313,348  

Arrowhead Pharmaceuticals Inc.(a)

    29,287       1,869,096  

BioMarin Pharmaceutical Inc.(a)

    51,339       4,067,589  

Bridgebio Pharma Inc.(a)(b)

    14,326       707,418  

CRISPR Therapeutics AG(a)

    9,360       854,849  

Exact Sciences Corp.(a)(b)

    48,173       4,587,033  

Exelixis Inc.(a)

    88,496       1,903,549  

Fate Therapeutics Inc.(a)

    22,727       1,222,713  

Horizon Therapeutics PLC(a)

    63,294       7,589,583  

Incyte Corp.(a)

    52,540       3,519,129  

Mirati Therapeutics Inc.(a)

    12,828       2,424,748  

Natera Inc.(a)

    24,497       2,806,621  

Neurocrine Biosciences Inc.(a)

    26,585       2,802,325  

Novavax Inc.(a)(b)

    8,031       1,195,254  

Seagen Inc.(a)

    37,213       6,561,768  

Ultragenyx Pharmaceutical Inc.(a)

    19,052       1,598,844  
   

 

 

 
      51,631,342  
Building Products — 1.4%  

A O Smith Corp.

    20,332       1,485,659  

Advanced Drainage Systems Inc.

    15,653       1,765,658  

Allegion PLC

    13,690       1,756,427  

AZEK Co. Inc. (The)(a)

    31,319       1,149,094  

Builders FirstSource Inc.(a)

    34,872       2,031,991  
Security   Shares     Value  
Building Products (continued)  

Carlisle Companies Inc.

    7,751     $ 1,727,853  

Fortune Brands Home & Security Inc.

    18,195       1,844,973  

Lennox International Inc.

    6,646       1,989,015  

Masco Corp.

    29,579       1,938,904  

Trex Co. Inc.(a)

    32,280       3,434,592  
   

 

 

 
            19,124,166  
Capital Markets — 3.4%  

Apollo Global Management Inc.

    35,856       2,759,119  

Ares Management Corp., Class A

    45,874       3,887,363  

Carlyle Group Inc. (The)

    27,351       1,535,759  

FactSet Research Systems Inc.

    10,577       4,695,025  

KKR & Co. Inc.

    163,362       13,015,051  

LPL Financial Holdings Inc.

    22,453       3,682,741  

MarketAxess Holdings Inc.

    10,644       4,349,883  

Morningstar Inc.

    6,652       2,107,021  

Nasdaq Inc.

    19,194       4,028,245  

Raymond James Financial Inc.

    24,544       2,419,793  

SEI Investments Co.

    14,305       901,787  

Tradeweb Markets Inc., Class A

    29,425       2,621,767  
   

 

 

 
      46,003,554  
Chemicals — 1.3%  

Albemarle Corp.

    23,298       5,835,450  

Axalta Coating Systems Ltd.(a)

    21,331       665,314  

Celanese Corp.

    16,241       2,623,084  

Corteva Inc.

    95,685       4,128,808  

FMC Corp.

    14,510       1,320,555  

RPM International Inc.

    21,835       1,904,012  

Scotts Miracle-Gro Co. (The)

    8,224       1,220,935  
   

 

 

 
      17,698,158  
Commercial Services & Supplies — 1.2%  

Copart Inc.(a)

    59,659       9,264,446  

IAA Inc.(a)

    37,630       2,244,630  

Republic Services Inc.

    19,269       2,593,607  

Rollins Inc.

    63,204       2,226,677  
   

 

 

 
      16,329,360  
Communications Equipment — 1.0%  

Arista Networks Inc.(a)(b)

    15,691       6,428,446  

Ciena Corp.(a)

    17,715       961,747  

F5 Networks Inc.(a)

    8,181       1,727,418  

Motorola Solutions Inc.

    16,847       4,187,996  

Ubiquiti Inc.

    1,765       539,260  
   

 

 

 
      13,844,867  
Construction & Engineering — 0.3%  

AECOM(a)

    15,581       1,065,273  

MasTec Inc.(a)

    7,912       705,197  

Quanta Services Inc.

    15,015       1,821,019  
   

 

 

 
      3,591,489  
Construction Materials — 0.8%  

Martin Marietta Materials Inc.

    11,016       4,327,525  

Vulcan Materials Co.

    37,175       7,067,711  
   

 

 

 
      11,395,236  
Consumer Finance — 0.3%  

Upstart Holdings Inc.(a)

    12,939       4,166,876  
   

 

 

 
Containers & Packaging — 0.9%  

AptarGroup Inc.

    9,531       1,151,154  

Avery Dennison Corp.

    14,481       3,152,803  

Ball Corp.

    65,680       6,008,407  
 

 

 

30  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Containers & Packaging (continued)  

Crown Holdings Inc.

    16,130     $ 1,677,359  
   

 

 

 
      11,989,723  
Distributors — 0.6%  

LKQ Corp.(a)

    35,879       1,976,215  

Pool Corp.

    11,235       5,787,823  
   

 

 

 
      7,764,038  
Diversified Consumer Services — 0.4%  

Bright Horizons Family Solutions Inc.(a)

    9,073       1,506,118  

Chegg Inc.(a)(b)

    39,870       2,369,873  

Service Corp. International

    23,816       1,631,158  
   

 

 

 
      5,507,149  
Diversified Financial Services — 0.1%  

Voya Financial Inc.

    15,358       1,071,528  
   

 

 

 
Electric Utilities — 0.1%  

NRG Energy Inc.

    19,612       782,323  
   

 

 

 
Electrical Equipment — 2.2%  

AMETEK Inc.

    34,103       4,515,237  

Generac Holdings Inc.(a)

    17,686       8,817,532  

Hubbell Inc.

    4,746       946,210  

Plug Power Inc.(a)(b)

    144,718       5,538,358  

Rockwell Automation Inc.

    19,845       6,338,493  

Sunrun Inc.(a)

    37,165       2,143,677  

Vertiv Holdings Co.

    79,170       2,033,086  
   

 

 

 
      30,332,593  
Electronic Equipment, Instruments & Components — 3.1%  

CDW Corp./DE

    23,501       4,386,461  

Cognex Corp.

    49,488       4,334,654  

Corning Inc.

    127,760       4,544,423  

IPG Photonics Corp.(a)

    10,068       1,600,913  

Jabil Inc.

    13,078       784,157  

Keysight Technologies Inc.(a)

    36,799       6,624,556  

Teledyne Technologies Inc.(a)

    13,058       5,865,915  

Trimble Inc.(a)

    70,503       6,159,847  

Zebra Technologies Corp., Class A(a)

    14,962       7,988,960  
   

 

 

 
      42,289,886  
Energy Equipment & Services — 0.2%  

Halliburton Co.

    102,972       2,573,270  
   

 

 

 
Entertainment — 0.8%  

Live Nation Entertainment Inc.(a)

    19,676       1,990,227  

Playtika Holding Corp.(a)

    14,435       408,222  

Take-Two Interactive Software Inc.(a)

    32,639       5,907,659  

Zynga Inc., Class A(a)

    286,590       2,115,034  
   

 

 

 
      10,421,142  
Equity Real Estate Investment Trusts (REITs) — 5.0%  

Alexandria Real Estate Equities Inc.

    24,709       5,044,095  

American Homes 4 Rent, Class A

    76,931       3,123,399  

Americold Realty Trust

    32,869       968,649  

AvalonBay Communities Inc.

    19,626       4,645,082  

Camden Property Trust

    9,664       1,576,198  

CubeSmart

    23,225       1,277,607  

CyrusOne Inc.

    34,836       2,857,249  

Duke Realty Corp.

    64,630       3,634,791  

Equity LifeStyle Properties Inc.

    24,970       2,110,215  

Essex Property Trust Inc.

    6,075       2,065,075  

Extra Space Storage Inc.

    18,461       3,643,647  

Healthpeak Properties Inc.

    54,588       1,938,420  
Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Invitation Homes Inc.

    161,528     $ 6,663,030  

Kilroy Realty Corp.

    13,605       916,705  

Mid-America Apartment Communities Inc.

    13,951       2,848,934  

Realty Income Corp.

    50,690       3,620,787  

SBA Communications Corp.

    30,696       10,600,250  

STORE Capital Corp.

    22,323       766,349  

Sun Communities Inc.

    32,475       6,364,450  

UDR Inc.

    36,133       2,006,465  

VICI Properties Inc.

    56,712       1,664,497  
   

 

 

 
      68,335,894  
Food & Staples Retailing — 0.1%  

Casey’s General Stores Inc.

    5,491       1,051,746  

Performance Food Group Co.(a)

    16,675       754,210  
   

 

 

 
      1,805,956  
Food Products — 1.2%  

Beyond Meat Inc.(a)(b)

    16,869       1,669,694  

Darling Ingredients Inc.(a)

    45,345       3,832,559  

Freshpet Inc.(a)(b)

    12,095       1,885,731  

Hershey Co. (The)

    22,771       3,992,895  

Hormel Foods Corp.

    25,121       1,063,121  

Lamb Weston Holdings Inc.

    18,395       1,038,398  

McCormick & Co. Inc./MD, NVS

    34,199       2,743,786  
   

 

 

 
      16,226,184  
Health Care Equipment & Supplies — 5.1%  

ABIOMED Inc.(a)

    12,709       4,219,896  

Cooper Companies Inc. (The)

    13,798       5,752,662  

DENTSPLY SIRONA Inc.

    37,258       2,131,530  

Dexcom Inc.(a)(b)

    27,108       16,893,977  

Hologic Inc.(a)

    39,299       2,881,010  

Insulet Corp.(a)

    19,297       5,982,456  

Masimo Corp.(a)

    14,181       4,020,881  

Novocure Ltd.(a)

    24,937       2,557,788  

Penumbra Inc.(a)

    9,659       2,671,197  

ResMed Inc.

    40,773       10,719,629  

STERIS PLC

    27,951       6,533,267  

Teleflex Inc.

    13,112       4,680,197  
   

 

 

 
      69,044,490  
Health Care Providers & Services — 0.8%  

Amedisys Inc.(a)

    9,167       1,552,340  

Chemed Corp.

    2,781       1,341,137  

DaVita Inc.(a)

    7,312       754,891  

Encompass Health Corp.

    15,190       965,476  

Guardant Health Inc.(a)(b)

    28,344       3,310,296  

LHC Group Inc.(a)

    8,897       1,197,447  

Molina Healthcare Inc.(a)

    5,653       1,671,705  
   

 

 

 
      10,793,292  
Health Care Technology — 0.7%  

Cerner Corp.

    44,716       3,321,952  

Teladoc Health Inc.(a)(b)

    44,618       6,674,406  
   

 

 

 
      9,996,358  
Hotels, Restaurants & Leisure — 4.7%  

Airbnb Inc., Class A(a)

    94,301       16,093,409  

Boyd Gaming Corp.(a)

    12,174       776,458  

Caesars Entertainment Inc.(a)(b)

    39,554       4,329,581  

Churchill Downs Inc.

    9,682       2,226,860  

Darden Restaurants Inc.

    16,680       2,404,255  

Domino’s Pizza Inc.

    10,326       5,049,104  

DraftKings Inc., Class A(a)(b)

    92,671       4,317,542  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  31


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Hotels, Restaurants & Leisure (continued)

 

Expedia Group Inc.(a)

    16,216     $ 2,666,073  

Hilton Worldwide Holdings Inc.(a)

    31,973       4,602,513  

MGM Resorts International

    112,053       5,284,419  

Penn National Gaming Inc.(a)(b)

    46,525       3,331,190  

Texas Roadhouse Inc.

    19,612       1,741,742  

Vail Resorts Inc.

    11,271       3,885,226  

Yum! Brands Inc.

    52,829       6,600,455  
   

 

 

 
      63,308,827  
Household Durables — 1.0%  

DR Horton Inc.

    50,394       4,498,672  

Garmin Ltd.

    22,738       3,265,177  

NVR Inc.(a)

    548       2,682,350  

Tempur Sealy International Inc.

    55,186       2,454,122  
   

 

 

 
      12,900,321  
Household Products — 0.4%  

Church & Dwight Co. Inc.

    39,421       3,443,819  

Clorox Co. (The)

    11,522       1,878,201  
   

 

 

 
      5,322,020  
Independent Power and Renewable Electricity Producers — 0.1%  

Vistra Corp.

    83,554       1,636,823  
   

 

 

 
Insurance — 2.0%  

American Financial Group Inc./OH

    8,652       1,177,018  

Arch Capital Group Ltd.(a)

    55,036       2,301,605  

Arthur J Gallagher & Co.

    37,340       6,260,798  

Athene Holding Ltd., Class A(a)

    12,655       1,101,112  

Brown & Brown Inc.

    65,431       4,129,350  

Cincinnati Financial Corp.

    17,650       2,143,416  

Erie Indemnity Co., Class A, NVS

    7,007       1,442,111  

Everest Re Group Ltd.

    5,279       1,380,458  

Loews Corp.

    22,168       1,242,960  

RenaissanceRe Holdings Ltd.

    6,339       898,870  

W R Berkley Corp.

    17,388       1,384,085  

Willis Towers Watson PLC

    14,752       3,574,115  
   

 

 

 
      27,035,898  
Interactive Media & Services — 0.7%  

Bumble Inc., Class A(a)(b)

    19,885       1,044,360  

IAC/InterActiveCorp.(a)

    7,739       1,179,192  

Pinterest Inc., Class A(a)

    155,558       6,944,109  
   

 

 

 
      9,167,661  
Internet & Direct Marketing Retail — 1.0%  

Chewy Inc., Class A(a)(b)

    24,298       1,841,788  

Etsy Inc.(a)(b)

    35,466       8,890,972  

Wayfair Inc., Class A(a)(b)

    13,104       3,264,206  
   

 

 

 
      13,996,966  
IT Services — 6.5%  

Akamai Technologies Inc.(a)

    27,648       2,915,758  

Broadridge Financial Solutions Inc.

    32,550       5,807,246  

Cloudflare Inc., Class A(a)

    73,813       14,372,867  

Concentrix Corp.

    6,340       1,126,491  

EPAM Systems Inc.(a)

    15,867       10,682,299  

Euronet Worldwide Inc.(a)

    14,838       1,664,675  

FleetCor Technologies Inc.(a)

    23,145       5,726,304  

Gartner Inc.(a)

    23,438       7,779,307  

Genpact Ltd.

    20,951       1,033,932  

GoDaddy Inc., Class A(a)

    47,243       3,267,798  

Jack Henry & Associates Inc.

    20,789       3,460,953  

MongoDB Inc.(a)

    18,111       9,441,083  

Okta Inc.(a)(b)

    35,040       8,661,187  
Security   Shares     Value  

IT Services (continued)

   

Paychex Inc.

    43,631     $ 5,378,830  

VeriSign Inc.(a)

    27,271       6,072,434  

WEX Inc.(a)

    6,981       1,045,056  
   

 

 

 
      88,436,220  
Leisure Products — 1.1%  

Brunswick Corp./DE

    13,981       1,301,491  

Hasbro Inc.

    21,930       2,100,017  

Mattel Inc.(a)

    47,589       1,037,916  

Peloton Interactive Inc., Class A(a)

    75,301       6,885,524  

Polaris Inc.

    8,440       970,178  

YETI Holdings Inc.(a)

    24,419       2,401,120  
   

 

 

 
      14,696,246  
Life Sciences Tools & Services — 4.6%  

10X Genomics Inc., Class A(a)

    25,356       4,089,162  

Avantor Inc.(a)

    163,679       6,609,358  

Bio-Rad Laboratories Inc., Class A(a)

    6,020       4,783,974  

Bio-Techne Corp.

    10,897       5,706,214  

Bruker Corp.

    28,267       2,269,840  

Charles River Laboratories International Inc.(a)

    14,120       6,335,361  

Mettler-Toledo International Inc.(a)

    6,477       9,591,660  

PerkinElmer Inc.

    9,100       1,609,699  

PPD Inc.(a)

    33,544       1,582,270  

Repligen Corp.(a)

    14,320       4,159,960  

Sotera Health Co.(a)

    27,791       686,438  

Syneos Health Inc.(a)

    10,613       990,617  

Waters Corp.(a)

    11,605       4,265,418  

West Pharmaceutical Services Inc.

    20,728       8,910,553  
   

 

 

 
      61,590,524  
Machinery — 4.0%  

AGCO Corp.

    10,779       1,317,302  

Donaldson Co. Inc.

    17,181       1,031,032  

Dover Corp.

    17,616       2,978,513  

Fortive Corp.

    52,684       3,988,706  

Graco Inc.

    47,505       3,571,426  

IDEX Corp.

    21,288       4,738,070  

Ingersoll Rand Inc.(a)

    55,682       2,993,464  

ITT Inc.

    12,894       1,212,939  

Lincoln Electric Holdings Inc.

    6,338       902,531  

Middleby Corp. (The)(a)

    7,001       1,277,262  

Nordson Corp.

    15,132       3,846,706  

Oshkosh Corp.

    8,747       935,929  

Otis Worldwide Corp.

    77,438       6,219,046  

PACCAR Inc.

    28,543       2,558,024  

Pentair PLC

    23,999       1,775,206  

Stanley Black & Decker Inc.

    20,309       3,650,136  

Toro Co. (The)

    29,943       2,858,658  

Woodward Inc.

    17,751       2,004,975  

Xylem Inc./NY

    50,481       6,592,314  
   

 

 

 
      54,452,239  
Media — 0.6%  

Altice USA Inc., Class A(a)

    38,095       620,948  

Cable One Inc.

    1,384       2,368,315  

Liberty Media Corp.-Liberty SiriusXM, Class A(a)

    11,193       557,188  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    22,683       1,118,726  

New York Times Co. (The), Class A

    46,658       2,547,060  

Sirius XM Holdings Inc.(b)

    111,559       679,394  
   

 

 

 
      7,891,631  
Metals & Mining — 0.1%  

Royal Gold Inc.

    18,304       1,812,462  
   

 

 

 
 

 

 

32  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Multi-Utilities — 0.1%            

CMS Energy Corp.

    23,604     $ 1,424,501  
   

 

 

 
Oil, Gas & Consumable Fuels — 0.7%            

Cheniere Energy Inc.(a)

    66,083       6,832,982  

Targa Resources Corp.

    25,922       1,417,156  

Texas Pacific Land Corp.(b)

    1,116       1,421,416  
   

 

 

 
      9,671,554  
Pharmaceuticals — 0.7%            

Catalent Inc.(a)

    47,728       6,579,782  

Elanco Animal Health Inc.(a)

    93,004       3,057,972  
   

 

 

 
      9,637,754  
Professional Services — 3.3%            

Booz Allen Hamilton Holding Corp.

    20,887       1,814,245  

Clarivate PLC(a)(b)

    104,422       2,448,696  

CoStar Group Inc.(a)

    110,664       9,522,637  

Dun & Bradstreet Holdings Inc.(a)(b)

    22,697       427,611  

Equifax Inc.

    34,138       9,470,905  

Jacobs Engineering Group Inc.

    16,244       2,280,983  

Leidos Holdings Inc.

    12,521       1,251,850  

Robert Half International Inc.

    15,014       1,697,633  

TransUnion

    53,657       6,186,116  

Verisk Analytics Inc.

    45,209       9,506,096  
   

 

 

 
            44,606,772  
Real Estate Management & Development — 0.7%  

CBRE Group Inc., Class A(a)

    39,470       4,108,037  

Zillow Group Inc., Class A(a)

    10,340       1,093,145  

Zillow Group Inc., Class C, NVS(a)(b)

    47,397       4,911,751  
   

 

 

 
      10,112,933  
Road & Rail — 1.8%            

AMERCO

    1,677       1,235,932  

JB Hunt Transport Services Inc.

    23,562       4,646,191  

Kansas City Southern

    17,453       5,414,793  

Knight-Swift Transportation Holdings Inc.

    13,253       751,313  

Lyft Inc., Class A(a)

    32,025       1,468,987  

Old Dominion Freight Line Inc.

    26,284       8,972,043  

TuSimple Holdings Inc., Class A(a)

    9,264       362,408  

XPO Logistics Inc.(a)

    15,233       1,306,991  
   

 

 

 
      24,158,658  
Semiconductors & Semiconductor Equipment — 5.8%  

Brooks Automation Inc.

    20,745       2,415,755  

Enphase Energy Inc.(a)

    37,720       8,737,084  

Entegris Inc.

    37,993       5,348,655  

First Solar Inc.(a)

    13,269       1,586,840  

Marvell Technology Inc.

    229,620       15,728,970  

MKS Instruments Inc.

    9,060       1,359,453  

Monolithic Power Systems Inc.

    12,094       6,354,913  

ON Semiconductor Corp.(a)

    63,488       3,051,868  

Qorvo Inc.(a)

    31,141       5,238,850  

Skyworks Solutions Inc.

    31,300       5,231,169  

SolarEdge Technologies Inc.(a)

    14,637       5,191,451  

Teradyne Inc.

    46,224       6,390,006  

Universal Display Corp.

    12,109       2,218,369  

Wolfspeed Inc.(a)(b)

    18,240       2,190,806  

Xilinx Inc.

    40,965       7,373,700  
   

 

 

 
      78,417,889  
Software — 14.1%            

Anaplan Inc.(a)

    40,656       2,651,178  

ANSYS Inc.(a)

    24,447       9,279,592  

Aspen Technology Inc.(a)

    18,972       2,972,723  
Security   Shares     Value  
Software (continued)            

Avalara Inc.(a)

    24,178     $ 4,343,336  

Bill.com Holdings Inc.(a)(b)

    24,736       7,280,052  

Black Knight Inc.(a)

    43,815       3,071,870  

Cadence Design Systems Inc.(a)

    77,552       13,425,027  

Ceridian HCM Holding Inc.(a)

    37,814       4,736,203  

Citrix Systems Inc.

    17,332       1,641,860  

Coupa Software Inc.(a)(b)

    20,599       4,690,392  

Datadog Inc., Class A(a)

    67,173       11,221,250  

Dropbox Inc., Class A(a)

    80,271       2,447,463  

Dynatrace Inc.(a)

    54,911       4,118,325  

Elastic NV(a)

    20,042       3,477,487  

Fair Isaac Corp.(a)

    7,943       3,162,903  

Five9 Inc.(a)(b)

    18,940       2,992,709  

Fortinet Inc.(a)

    37,982       12,774,866  

Guidewire Software Inc.(a)

    23,360       2,937,053  

HubSpot Inc.(a)

    12,512             10,137,598  

Manhattan Associates Inc.(a)

    17,809       3,233,046  

NortonLifeLock Inc.

    47,101       1,198,720  

Nuance Communications Inc.(a)

    39,801       2,191,045  

Palo Alto Networks Inc.(a)(b)

    27,288       13,892,048  

Paycom Software Inc.(a)

    13,468       7,378,444  

Paylocity Holding Corp.(a)

    11,042       3,369,356  

Pegasystems Inc.

    11,429       1,356,851  

PTC Inc.(a)

    29,569       3,765,612  

RingCentral Inc., Class A(a)

    22,808       5,560,134  

Smartsheet Inc., Class A(a)

    35,138       2,424,873  

Splunk Inc.(a)(b)

    45,928       7,569,853  

SS&C Technologies Holdings Inc.

    26,014       2,067,333  

Trade Desk Inc. (The), Class A(a)

    121,638       9,111,903  

Tyler Technologies Inc.(a)

    11,444       6,216,610  

VMware Inc., Class A(a)

    22,485       3,410,974  

Zendesk Inc.(a)

    33,610       3,421,498  

Zscaler Inc.(a)

    21,877       6,975,700  
   

 

 

 
      190,505,887  
Specialty Retail — 3.5%            

Advance Auto Parts Inc.

    8,539       1,925,715  

AutoZone Inc.(a)

    2,152       3,840,976  

Bath & Body Works Inc.

    39,424       2,723,804  

Burlington Stores Inc.(a)

    18,655       5,154,190  

CarMax Inc.(a)

    17,614       2,411,709  

Carvana Co.(a)

    23,676       7,178,090  

Five Below Inc.(a)

    15,729       3,103,332  

Floor & Decor Holdings Inc., Class A(a)

    29,462       4,004,475  

Lithia Motors Inc.

    8,497       2,712,412  

RH(a)

    4,766       3,143,797  

Tractor Supply Co.

    18,047       3,919,267  

Ulta Beauty Inc.(a)

    15,343       5,636,404  

Williams-Sonoma Inc.

    9,969       1,851,542  
   

 

 

 
      47,605,713  
Technology Hardware, Storage & Peripherals — 0.1%  

Western Digital Corp.(a)

    34,293       1,793,181  
   

 

 

 
Textiles, Apparel & Luxury Goods — 0.9%            

Deckers Outdoor Corp.(a)

    7,740       3,059,699  

Under Armour Inc., Class A(a)

    52,990       1,163,660  

Under Armour Inc., Class C, NVS(a)

    58,533       1,105,103  

VF Corp.

    91,313       6,654,892  
   

 

 

 
      11,983,354  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  33


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Trading Companies & Distributors — 1.5%  

Fastenal Co.

    161,039     $ 9,192,106  

SiteOne Landscape Supply Inc.(a)

    12,514       2,940,290  

United Rentals Inc.(a)

    6,363       2,412,277  

Watsco Inc.

    9,262       2,682,090  

WW Grainger Inc.

    6,376       2,952,789  
   

 

 

 
            20,179,552  
Water Utilities — 0.5%  

American Water Works Co. Inc.

    28,217       4,914,837  

Essential Utilities Inc.

    35,084       1,651,404  
   

 

 

 
      6,566,241  
   

 

 

 

Total Common Stocks — 99.9%
(Cost: $1,108,220,586)

 

    1,352,705,286  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 6.1%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    80,865,283       80,905,716  
Security   Shares     Value  
Money Market Funds (continued)  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    1,870,000     $ 1,870,000  
   

 

 

 
      82,775,716  
   

 

 

 

Total Short-Term Investments — 6.1%
(Cost: $82,759,357)

 

    82,775,716  
   

 

 

 

Total Investments in Securities — 106.0%
(Cost: $1,190,979,943)

 

        1,435,481,002  

Other Assets, Less Liabilities — (6.0)%

 

    (81,677,183
   

 

 

 

Net Assets — 100.0%

 

  $ 1,353,803,819  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL

                 

Agency Shares

  $ 70,250,412     $ 10,656,299 (a)    $     $ (3,404   $ 2,409     $ 80,905,716       80,865,283     $ 57,726 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    2,690,000             (820,000 )(a)                  1,870,000       1,870,000       63        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (3,404   $ 2,409     $ 82,775,716       $ 57,789     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

E-Mini Technology Select Sector Index

     3        12/17/21      $ 488      $ 24,323  

Russell 2000 E-Mini Index

     4        12/17/21        459        8,858  
           

 

 

 
            $ 33,181  
           

 

 

 

 

 

34  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Growth ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 33,181  
  

 

 

 

 

  (a)

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 107,549  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (19,749
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 1,776,195  

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 1,352,705,286      $      $      $ 1,352,705,286  

Money Market Funds

     82,775,716                      82,775,716  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,435,481,002      $      $      $ 1,435,481,002  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 33,181      $             —      $             —      $ 33,181  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E    O F    N V E S T  M E N T S

  35


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.6%            

Howmet Aerospace Inc.

    12,070     $ 358,358  

Huntington Ingalls Industries Inc.

    2,238       453,710  

Textron Inc.

    12,904       952,960  

TransDigm Group Inc.(a)

    1,892       1,180,268  
   

 

 

 
      2,945,296  
Air Freight & Logistics — 0.3%            

CH Robinson Worldwide Inc.

    8,588       832,950  

Expeditors International of Washington Inc.

    6,227       767,540  
   

 

 

 
      1,600,490  
Airlines — 1.9%            

Alaska Air Group Inc.(a)

    13,464       710,899  

American Airlines Group Inc.(a)

    69,514       1,334,669  

Delta Air Lines Inc.(a)

    68,706       2,688,466  

Southwest Airlines Co.(a)

    63,522       3,003,320  

United Airlines Holdings Inc.(a)

    34,746       1,603,180  
   

 

 

 
      9,340,534  
Auto Components — 0.7%            

Autoliv Inc.

    8,452       818,576  

BorgWarner Inc.

    25,747       1,160,417  

Gentex Corp.

    14,794       523,560  

Lear Corp.

    6,413       1,102,074  
   

 

 

 
      3,604,627  
Automobiles — 0.2%            

Harley-Davidson Inc.

    16,499       602,049  

Thor Industries Inc.

    2,825       288,037  
   

 

 

 
      890,086  
Banks — 4.7%            

Citizens Financial Group Inc.

    45,745       2,167,398  

Comerica Inc.

    14,378       1,223,424  

Commerce Bancshares Inc.

    6,156       434,059  

Cullen/Frost Bankers Inc.

    6,082       787,619  

East West Bancorp. Inc.

    15,233       1,210,719  

Fifth Third Bancorp.

    74,158       3,228,098  

First Horizon Corp.

    58,981       1,000,908  

Huntington Bancshares Inc./OH

    94,372       1,485,415  

KeyCorp

    102,681       2,389,387  

M&T Bank Corp.

    13,815       2,032,463  

People’s United Financial Inc.

    45,948       787,549  

Regions Financial Corp.

    54,675       1,294,704  

Signature Bank/New York NY

    3,775       1,124,270  

SVB Financial Group(a)

    2,015       1,445,561  

Western Alliance Bancorp.

    5,051       586,371  

Zions Bancorp. NA

    17,401       1,096,089  
   

 

 

 
        22,294,034  
Beverages — 0.3%            

Brown-Forman Corp., Class A

    2,527       161,804  

Brown-Forman Corp., Class B, NVS

    8,268       561,315  

Molson Coors Beverage Co., Class B

    20,302       895,115  
   

 

 

 
      1,618,234  
Biotechnology — 0.5%            

Bridgebio Pharma Inc.(a)(b)

    6,301       311,143  

CRISPR Therapeutics AG(a)(b)

    3,935       359,384  

Novavax Inc.(a)

    4,927       733,285  

United Therapeutics Corp.(a)

    4,819       919,273  
   

 

 

 
      2,323,085  
Security   Shares     Value  
Building Products — 1.1%            

A O Smith Corp.

    6,573     $ 480,289  

Allegion PLC

    4,396       564,007  

Builders FirstSource Inc.(a)

    8,827       514,349  

Carlisle Companies Inc.

    2,634       587,171  

Fortune Brands Home & Security Inc.

    7,840       794,976  

Lennox International Inc.

    1,120       335,194  

Masco Corp.

    15,232       998,458  

Owens Corning

    11,072       1,034,235  
   

 

 

 
      5,308,679  
Capital Markets — 3.5%            

Ameriprise Financial Inc.

    12,212       3,689,612  

Apollo Global Management Inc.

    8,698       669,311  

Carlyle Group Inc. (The)

    4,411       247,678  

Franklin Resources Inc.

    30,236       952,132  

Invesco Ltd.

    36,659       931,505  

Jefferies Financial Group Inc.

    21,218       912,374  

Nasdaq Inc.

    5,204       1,092,163  

Northern Trust Corp.

    22,374       2,752,897  

Raymond James Financial Inc.

    10,531       1,038,251  

SEI Investments Co.

    6,084       383,535  

State Street Corp.

    39,478       3,890,557  
   

 

 

 
        16,560,015  
Chemicals — 3.5%            

Albemarle Corp.

    3,628       908,705  

Axalta Coating Systems Ltd.(a)

    15,171       473,184  

Celanese Corp.

    5,687       918,507  

CF Industries Holdings Inc.

    23,094       1,311,739  

Corteva Inc.

    42,138       1,818,255  

Eastman Chemical Co.

    14,580       1,516,757  

FMC Corp.

    8,272       752,835  

International Flavors & Fragrances Inc.

    26,778       3,948,416  

LyondellBasell Industries NV, Class A

    28,422       2,638,130  

Mosaic Co. (The)

    37,117       1,542,954  

RPM International Inc.

    5,589       487,361  

Scotts Miracle-Gro Co. (The)

    1,236       183,497  

Westlake Chemical Corp.

    3,601       350,521  
   

 

 

 
      16,850,861  
Commercial Services & Supplies — 0.4%  

Republic Services Inc.

    15,194       2,045,112  
   

 

 

 
Communications Equipment — 1.1%            

Ciena Corp.(a)

    9,846       534,539  

F5 Networks Inc.(a)

    3,347       706,719  

Juniper Networks Inc.

    34,911       1,030,573  

Motorola Solutions Inc.

    11,740       2,918,447  
   

 

 

 
      5,190,278  
Construction & Engineering — 0.4%            

AECOM(a)

    9,502       649,652  

MasTec Inc.(a)

    3,148       280,581  

Quanta Services Inc.

    9,200       1,115,776  
   

 

 

 
      2,046,009  
Construction Materials — 0.2%            

Martin Marietta Materials Inc.

    2,472       971,100  
   

 

 

 
Consumer Finance — 1.9%            

Ally Financial Inc.

    38,711       1,848,063  

Discover Financial Services

    32,190       3,647,771  

OneMain Holdings Inc.

    11,885       627,647  
 

 

 

36  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Consumer Finance (continued)  

Synchrony Financial

    61,167     $ 2,841,207  
   

 

 

 
      8,964,688  
Containers & Packaging — 2.4%            

Amcor PLC

    165,538       1,998,044  

AptarGroup Inc.

    3,459       417,778  

Avery Dennison Corp.

    3,334       725,878  

Ball Corp.

    9,898       905,469  

Berry Global Group Inc.(a)

    14,526       952,034  

Crown Holdings Inc.

    7,940       825,681  

International Paper Co.

    41,961       2,084,203  

Packaging Corp. of America

    10,198       1,400,899  

Sealed Air Corp.

    16,093       954,637  

Westrock Co.

    28,668       1,378,931  
   

 

 

 
      11,643,554  
Distributors — 0.6%            

Genuine Parts Co.

    15,376       2,015,948  

LKQ Corp.(a)

    15,217       838,152  
   

 

 

 
      2,854,100  
Diversified Consumer Services — 0.2%  

Bright Horizons Family Solutions Inc.(a)

    3,055       507,130  

Service Corp. International

    8,925       611,273  
   

 

 

 
      1,118,403  
Diversified Financial Services — 0.4%  

Equitable Holdings Inc.

    41,171       1,379,229  

Voya Financial Inc.

    6,352       443,179  
   

 

 

 
      1,822,408  
Diversified Telecommunication Services — 0.3%  

Lumen Technologies Inc.

    106,800       1,266,648  
   

 

 

 
Electric Utilities — 4.2%            

Alliant Energy Corp.

    26,868       1,519,923  

Avangrid Inc.

    7,481       394,249  

Edison International

    40,767       2,565,467  

Entergy Corp.

    21,576       2,222,760  

Evergy Inc.

    24,620       1,569,525  

Eversource Energy

    36,894       3,132,301  

FirstEnergy Corp.

    58,428       2,251,231  

NRG Energy Inc.

    18,786       749,374  

OGE Energy Corp.

    21,491       732,198  

PG&E Corp.(a)

    161,994       1,879,130  

Pinnacle West Capital Corp.

    12,111       781,038  

PPL Corp.

    82,794       2,384,467  
   

 

 

 
        20,181,663  
Electrical Equipment — 1.1%            

AMETEK Inc.

    11,750       1,555,700  

Hubbell Inc.

    4,025       802,464  

Rockwell Automation Inc.

    4,852       1,549,729  

Sensata Technologies Holding PLC(a)

    17,003       936,865  

Sunrun Inc.(a)(b)

    7,948       458,441  
   

 

 

 
      5,303,199  
Electronic Equipment, Instruments & Components — 1.2%  

Arrow Electronics Inc.(a)

    7,710       892,432  

CDW Corp./DE

    5,755       1,074,171  

Corning Inc.

    33,559       1,193,694  

Flex Ltd.(a)

    52,420       885,898  

Jabil Inc.

    10,649       638,514  

Keysight Technologies Inc.(a)

    5,678       1,022,153  
   

 

 

 
      5,706,862  
Security   Shares     Value  
Energy Equipment & Services — 0.8%  

Baker Hughes Co.

    88,950     $ 2,230,866  

Halliburton Co.

    56,252       1,405,737  
   

 

 

 
      3,636,603  
Entertainment — 0.5%            

Liberty Media Corp.-Liberty Formula One, Class A(a)

    2,542       132,565  

Liberty Media Corp.-Liberty Formula One, Class C, NVS(a)(b)

    21,860       1,219,788  

Live Nation Entertainment Inc.(a)(b)

    6,620       669,613  

Playtika Holding Corp.(a)

    5,509       155,795  
   

 

 

 
      2,177,761  
Equity Real Estate Investment Trusts (REITs) — 9.6%  

Alexandria Real Estate Equities Inc.

    5,416       1,105,622  

Americold Realty Trust

    15,375       453,101  

AvalonBay Communities Inc.

    7,489       1,772,497  

Boston Properties Inc.

    15,258       1,733,919  

Camden Property Trust

    7,094       1,157,031  

CubeSmart

    12,777       702,863  

Duke Realty Corp.

    15,793       888,198  

Equity LifeStyle Properties Inc.

    8,744       738,956  

Equity Residential

    36,585       3,160,944  

Essex Property Trust Inc.

    4,660       1,584,074  

Extra Space Storage Inc.

    7,282       1,437,248  

Federal Realty Investment Trust

    7,515       904,430  

Gaming and Leisure Properties Inc.

    23,899       1,158,863  

Healthpeak Properties Inc.

    37,002       1,313,941  

Host Hotels & Resorts Inc.(a)

    76,658       1,290,154  

Iron Mountain Inc.

    31,077       1,418,354  

Kilroy Realty Corp.

    6,094       410,614  

Kimco Realty Corp.

    65,870       1,488,662  

Lamar Advertising Co., Class A

    9,315       1,054,458  

Medical Properties Trust Inc.

    63,958       1,364,224  

Mid-America Apartment Communities Inc.

    7,124       1,454,792  

National Retail Properties Inc.

    18,849       854,991  

Omega Healthcare Investors Inc.

    25,647       752,996  

Realty Income Corp.

    22,421       1,601,532  

Regency Centers Corp.

    16,414       1,155,710  

STORE Capital Corp.

    17,774       610,181  

UDR Inc.

    16,059       891,756  

Ventas Inc.

    42,245       2,254,616  

VEREIT Inc.

    24,604       1,237,581  

VICI Properties Inc.

    44,483       1,305,576  

Vornado Realty Trust

    17,072       727,779  

Welltower Inc.

    45,424       3,652,090  

Weyerhaeuser Co.

    80,501       2,875,496  

WP Carey Inc.

    19,783       1,525,467  
   

 

 

 
        46,038,716  
Food & Staples Retailing — 1.0%            

Casey’s General Stores Inc.

    1,872       358,563  

Kroger Co. (The)

    73,009       2,921,820  

Performance Food Group Co.(a)

    10,110       457,275  

U.S. Foods Holding Corp.(a)

    23,891       828,301  
   

 

 

 
      4,565,959  
Food Products — 3.6%            

Archer-Daniels-Midland Co.

    60,134       3,863,008  

Bunge Ltd.

    15,186       1,406,831  

Campbell Soup Co.

    21,896       874,745  

Conagra Brands Inc.

    51,573       1,660,651  

Hershey Co. (The)

    6,880       1,206,408  

Hormel Foods Corp.

    20,664       874,500  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  37


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)  

JM Smucker Co. (The)

    11,632     $ 1,429,108  

Kellogg Co.

    27,448       1,682,562  

Lamb Weston Holdings Inc.

    8,531       481,575  

McCormick & Co. Inc./MD, NVS

    13,683       1,097,787  

Tyson Foods Inc., Class A

    31,714       2,536,169  
   

 

 

 
      17,113,344  
Gas Utilities — 0.5%  

Atmos Energy Corp.

    14,043       1,293,641  

UGI Corp.

    22,450       974,555  
   

 

 

 
    2,268,196  
Health Care Equipment & Supplies — 1.2%  

DENTSPLY SIRONA Inc.

    9,131       522,385  

Hill-Rom Holdings Inc.

    7,067       1,094,678  

Hologic Inc.(a)

    12,132       889,397  

Zimmer Biomet Holdings Inc.

    22,424       3,209,323  
   

 

 

 
    5,715,783  
Health Care Providers & Services — 3.4%  

AmerisourceBergen Corp.

    16,063       1,960,007  

Cardinal Health Inc.

    31,153       1,489,425  

Chemed Corp.

    629       303,335  

DaVita Inc.(a)

    4,397       453,946  

Encompass Health Corp.

    4,897       311,253  

Henry Schein Inc.(a)(b)

    14,997       1,145,021  

Laboratory Corp. of America Holdings(a)

    10,384       2,980,416  

McKesson Corp.

    16,631       3,457,252  

Molina Healthcare Inc.(a)

    4,109       1,215,114  

Quest Diagnostics Inc.

    13,117       1,925,313  

Universal Health Services Inc., Class B

    8,146       1,010,919  
   

 

 

 
    16,252,001  
Health Care Technology — 0.2%  

Cerner Corp.

    14,579       1,083,074  
   

 

 

 
Hotels, Restaurants & Leisure — 3.1%  

Aramark

    27,404       999,698  

Boyd Gaming Corp.(a)

    4,162       265,452  

Caesars Entertainment Inc.(a)

    7,760       849,410  

Carnival Corp.(a)

    85,735       1,899,888  

Darden Restaurants Inc.

    7,618       1,098,059  

Expedia Group Inc.(a)

    9,401       1,545,618  

Hilton Worldwide Holdings Inc.(a)

    17,697       2,547,483  

Norwegian Cruise Line Holdings Ltd.(a)(b)

    39,729       1,021,830  

Royal Caribbean Cruises Ltd.(a)

    24,064       2,031,723  

Wynn Resorts Ltd.(a)

    11,302       1,014,920  

Yum! Brands Inc.

    11,498       1,436,560  
   

 

 

 
    14,710,641  
Household Durables — 2.5%  

DR Horton Inc.

    15,678       1,399,575  

Garmin Ltd.

    7,591       1,090,068  

Lennar Corp., Class A

    29,492       2,947,135  

Lennar Corp., Class B

    1,680       137,894  

Mohawk Industries Inc.(a)

    6,002       1,063,614  

Newell Brands Inc.

    40,648       930,433  

NVR Inc.(a)

    151       739,115  

PulteGroup Inc.

    27,864       1,339,701  

Toll Brothers Inc.

    12,452       749,237  

Whirlpool Corp.

    6,731       1,419,097  
   

 

 

 
    11,815,869  
Household Products — 0.5%  

Church & Dwight Co. Inc.

    11,235       981,490  
Security   Shares     Value  
Household Products (continued)  

Clorox Co. (The)

    8,751     $ 1,426,500  
   

 

 

 
    2,407,990  
Independent Power and Renewable Electricity Producers — 0.5%  

AES Corp. (The)

    71,543       1,797,875  

Vistra Corp.

    19,842       388,705  
   

 

 

 
    2,186,580  
Insurance — 5.5%  

Aflac Inc.

    66,254       3,555,852  

Alleghany Corp.(a)

    1,488       969,253  

American Financial Group Inc./OH

    3,780       514,231  

Arch Capital Group Ltd.(a)

    21,359       893,233  

Arthur J Gallagher & Co.

    7,888       1,322,581  

Assurant Inc.

    6,316       1,018,834  

Athene Holding Ltd., Class A(a)

    9,168       797,708  

Cincinnati Financial Corp.

    9,347       1,135,100  

Everest Re Group Ltd.

    2,276       595,174  

Fidelity National Financial Inc.

    30,632       1,467,579  

Globe Life Inc.

    10,047       894,384  

Hartford Financial Services Group Inc. (The)

    37,276       2,718,539  

Lincoln National Corp.

    18,967       1,368,469  

Loews Corp.

    13,351       748,591  

Markel Corp.(a)

    1,473       1,934,240  

Old Republic International Corp.

    30,658       791,896  

Principal Financial Group Inc.

    26,800       1,798,012  

Reinsurance Group of America Inc.

    7,300       861,984  

RenaissanceRe Holdings Ltd.

    2,620       371,516  

W R Berkley Corp.

    8,405       669,038  

Willis Towers Watson PLC

    8,196       1,985,727  
   

 

 

 
      26,411,941  
Interactive Media & Services — 0.2%  

IAC/InterActiveCorp.(a)

    6,000       914,220  
   

 

 

 
Internet & Direct Marketing Retail — 0.2%  

Wayfair Inc., Class A(a)(b)

    3,277       816,301  
   

 

 

 
IT Services — 1.2%  

Akamai Technologies Inc.(a)

    6,915       729,256  

Concentrix Corp.

    2,176       386,632  

DXC Technology Co.(a)

    27,047       880,921  

Genpact Ltd.

    10,509       518,619  

Paychex Inc.

    17,705       2,182,672  

Western Union Co. (The)

    43,628       794,902  

WEX Inc.(a)

    2,137       319,909  
   

 

 

 
    5,812,911  
Leisure Products — 0.3%  

Brunswick Corp./DE

    2,992       278,525  

Hasbro Inc.

    5,449       521,796  

Mattel Inc.(a)

    19,278       420,453  

Polaris Inc.

    2,908       334,275  
   

 

 

 
    1,555,049  
Life Sciences Tools & Services — 0.6%  

PerkinElmer Inc.

    8,559       1,514,001  

Syneos Health Inc.(a)

    7,013       654,593  

Waters Corp.(a)

    2,141       786,925  
   

 

 

 
    2,955,519  
Machinery — 3.3%  

AGCO Corp.

    2,528       308,947  

Donaldson Co. Inc.

    6,942       416,589  

Dover Corp.

    8,723       1,474,885  
 

 

 

38  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)            

Fortive Corp.

    18,271     $ 1,383,297  

Ingersoll Rand Inc.(a)

    22,216       1,194,332  

ITT Inc.

    4,312       405,630  

Lincoln Electric Holdings Inc.

    3,953       562,907  

Middleby Corp. (The)(a)

    3,296       601,322  

Oshkosh Corp.

    4,022       430,354  

Otis Worldwide Corp.

    16,148       1,296,846  

PACCAR Inc.

    26,301       2,357,096  

Pentair PLC

    8,569       633,849  

Snap-on Inc.

    5,795       1,177,718  

Stanley Black & Decker Inc.

    9,707       1,744,639  

Westinghouse Air Brake Technologies Corp.

    20,296       1,841,456  
   

 

 

 
        15,829,867  
Media — 2.5%            

Altice USA Inc., Class A(a)

    9,964       162,413  

Discovery Inc., Class A(a)(b)

    18,274       428,343  

Discovery Inc., Class C, NVS(a)(b)

    32,611       735,704  

DISH Network Corp., Class A(a)

    26,726       1,097,637  

Fox Corp., Class A, NVS

    34,721       1,379,812  

Fox Corp., Class B

    15,900       587,664  

Interpublic Group of Companies Inc. (The)

    42,260       1,545,448  

Liberty Media Corp.-Liberty SiriusXM, Class A(a)(b)

    4,223       210,221  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    8,556       421,982  

News Corp., Class A, NVS

    42,004       961,892  

News Corp., Class B

    13,074       294,949  

Omnicom Group Inc.

    23,021       1,567,270  

Sirius XM Holdings Inc.(b)

    57,788       351,929  

ViacomCBS Inc., Class A

    981       38,190  

ViacomCBS Inc., Class B, NVS

    65,045       2,355,930  
   

 

 

 
      12,139,384  
Metals & Mining — 1.5%            

Cleveland-Cliffs Inc.(a)

    48,827       1,177,219  

Nucor Corp.

    31,532       3,520,548  

Reliance Steel & Aluminum Co.

    6,816       996,226  

Steel Dynamics Inc.

    20,820       1,375,786  
   

 

 

 
      7,069,779  
Mortgage Real Estate Investment — 0.6%  

AGNC Investment Corp.

    56,358       897,220  

Annaly Capital Management Inc.

    155,065       1,311,850  

Starwood Property Trust Inc.

    31,041       790,614  
   

 

 

 
      2,999,684  
Multi-Utilities — 3.8%            

Ameren Corp.

    27,608       2,327,078  

CenterPoint Energy Inc.

    63,656       1,657,602  

CMS Energy Corp.

    22,157       1,337,175  

Consolidated Edison Inc.

    38,005       2,865,577  

DTE Energy Co.

    20,801       2,357,794  

NiSource Inc.

    42,297       1,043,467  

Public Service Enterprise Group Inc.

    54,360       3,468,168  

WEC Energy Group Inc.

    33,868       3,050,152  
   

 

 

 
      18,107,013  
Multiline Retail — 0.7%            

Dollar Tree Inc.(a)

    24,905       2,683,763  

Kohl’s Corp.

    16,773       813,993  
   

 

 

 
      3,497,756  
Oil, Gas & Consumable Fuels — 8.1%  

APA Corp.

    40,587       1,063,785  

Continental Resources Inc./OK

    6,356       310,236  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)  

Coterra Energy Inc.

    87,136     $ 1,857,740  

Devon Energy Corp.

    67,598       2,709,328  

Diamondback Energy Inc.

    18,273       1,958,683  

Hess Corp.

    29,591       2,443,329  

Marathon Oil Corp.

    84,648       1,381,455  

Marathon Petroleum Corp.

    68,596       4,522,534  

Occidental Petroleum Corp.

    95,395       3,198,594  

ONEOK Inc.

    47,930       3,049,307  

Phillips 66

    47,024       3,516,455  

Pioneer Natural Resources Co.

    24,386       4,559,694  

Targa Resources Corp.

    14,642       800,478  

Texas Pacific Land Corp.

    238       303,134  

Valero Energy Corp.

    43,895       3,394,400  

Williams Companies Inc. (The)

    130,447       3,664,256  
   

 

 

 
        38,733,408  
Personal Products — 0.1%            

Coty Inc., Class A(a)

    36,128       306,365  
   

 

 

 
Pharmaceuticals — 1.0%            

Elanco Animal Health Inc.(a)(b)

    15,226       500,631  

Jazz Pharmaceuticals PLC(a)

    6,565       873,407  

Royalty Pharma PLC, Class A

    38,051       1,504,156  

Viatris Inc.

    130,177       1,737,863  
   

 

 

 
      4,616,057  
Professional Services — 0.9%            

Booz Allen Hamilton Holding Corp.

    6,553       569,194  

Dun & Bradstreet Holdings Inc.(a)(b)

    7,571       142,638  

Jacobs Engineering Group Inc.

    7,743       1,087,272  

Leidos Holdings Inc.

    10,414       1,041,192  

Nielsen Holdings PLC

    38,449       778,592  

Robert Half International Inc.

    6,278       709,853  
   

 

 

 
      4,328,741  
Real Estate Management & Development — 0.9%  

CBRE Group Inc., Class A(a)

    20,908       2,176,105  

Jones Lang LaSalle Inc.(a)

    5,445       1,406,062  

Opendoor Technologies Inc.(a)(b)

    40,898       969,692  
   

 

 

 
      4,551,859  
Road & Rail — 0.7%            

AMERCO

    414       305,114  

Kansas City Southern

    3,076       954,329  

Knight-Swift Transportation Holdings Inc.

    12,747       722,628  

Lyft Inc., Class A(a)

    18,952       869,328  

XPO Logistics Inc.(a)

    4,795       411,411  
   

 

 

 
      3,262,810  
Semiconductors & Semiconductor Equipment — 1.2%  

First Solar Inc.(a)

    5,531       661,452  

MKS Instruments Inc.

    2,486       373,024  

ON Semiconductor Corp.(a)

    22,043       1,059,607  

Skyworks Solutions Inc.

    5,738       958,992  

Wolfspeed Inc.(a)(b)

    5,425       651,597  

Xilinx Inc.

    10,872       1,956,960  
   

 

 

 
      5,661,632  
Software — 0.8%            

Citrix Systems Inc.

    6,668       631,660  

NortonLifeLock Inc.

    44,406       1,130,133  

Nuance Communications Inc.(a)

    15,304       842,485  

SS&C Technologies Holdings Inc.

    13,901       1,104,712  
   

 

 

 
      3,708,990  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  39


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialty Retail — 2.7%            

Advance Auto Parts Inc.

    3,762     $ 848,406  

AutoNation Inc.(a)(b)

    4,682       567,084  

AutoZone Inc.(a)

    1,487       2,654,057  

Bath & Body Works Inc.

    13,356       922,766  

Best Buy Co. Inc.

    24,245       2,963,709  

CarMax Inc.(a)(b)

    10,726       1,468,604  

GameStop Corp., Class A(a)(b)

    6,681       1,226,030  

Gap Inc. (The)

    23,067       523,390  

Tractor Supply Co.

    5,354       1,162,728  

Williams-Sonoma Inc.

    4,228       785,267  
   

 

 

 
      13,122,041  
Technology Hardware, Storage & Peripherals — 2.2%  

Dell Technologies Inc., Class C(a)

    29,805       3,278,252  

Hewlett Packard Enterprise Co.

    140,213       2,054,120  

NetApp Inc.

    24,052       2,147,844  

Seagate Technology Holdings PLC

    22,536       2,007,282  

Western Digital Corp.(a)

    19,707       1,030,479  
   

 

 

 
        10,517,977  
Textiles, Apparel & Luxury Goods — 0.6%  

Capri Holdings Ltd.(a)

    16,322       868,983  

PVH Corp.(a)

    7,662       837,687  

Tapestry Inc.

    29,938       1,166,983  
   

 

 

 
      2,873,653  
Trading Companies & Distributors — 0.6%  

United Rentals Inc.(a)

    5,326       2,019,140  

WW Grainger Inc.

    2,261       1,047,092  
   

 

 

 
      3,066,232  
Water Utilities — 0.4%            

American Water Works Co. Inc.

    8,674       1,510,837  

 

Security   Shares     Value  
Water Utilities (continued)            

Essential Utilities Inc.

    10,595     $ 498,707  
   

 

 

 
      2,009,544  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $404,390,666)

      477,291,215  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 2.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    9,913,900       9,918,857  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    805,000       805,000  
   

 

 

 
      10,723,857  
   

 

 

 

Total Short-Term Investments — 2.2%
(Cost: $10,723,857)

 

    10,723,857  

Total Investments in Securities — 101.9%
(Cost: $415,114,523)

 

    488,015,072  

Other Assets, Less Liabilities — (1.9)%

 

    (9,191,013
   

 

 

 

Net Assets — 100.0%

    $  478,824,059  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

04/30/21

   

Purchases

at Cost

   

Proceeds

from Sales

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

   

Value at

10/31/21

   

Shares

Held at

10/31/21

    Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 2,010,373     $ 7,908,854 (a)    $       $ (370   $     $ 9,918,857       9,913,900     $ 7,713 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    935,000             (130,000 )(a)                    805,000       805,000       27        
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
          $ (370   $     $ 10,723,857       $ 7,740     $  
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

40  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Mid-Cap Value ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

   

Expiration

Date

   

Notional

Amount

(000)

   

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

        

E-Mini Utilities Select Sector Index

     5       12/17/21     $ 337     $ 11,339  

S&P Mid 400 E-Mini Index

     4       12/17/21       1,116       16,355  
        

 

 

 
         $ 27,694  
        

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
    

Equity

Contracts

 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 27,694  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
   

Equity

Contracts

 

 

 

Net Realized Gain (Loss) from:

 

Futures contracts

  $ (14,889
 

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

 

Futures contracts

  $ (16,734
 

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

  

Average notional value of contracts — long

   $ 1,092,360    

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 477,291,215      $      $      $ 477,291,215  

Money Market Funds

     10,723,857                      10,723,857  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 488,015,072      $      $      $ 488,015,072  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 27,694      $             —      $             —      $ 27,694  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  41


Schedule of Investments (unaudited) 

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 1.1%            

AAR Corp.(a)

    2,058     $ 72,792  

Aerojet Rocketdyne Holdings Inc.

    4,449       195,801  

Aerovironment Inc.(a)

    1,373       122,348  

Astra Space Inc.(a)

    7,537       73,410  

Astronics Corp.(a)

    1,448       18,679  

BWX Technologies Inc.

    5,715       324,269  

Curtiss-Wright Corp.

    2,455       313,454  

Ducommun Inc.(a)

    652       31,550  

Hexcel Corp.(a)

    5,038       285,856  

Kaman Corp.

    1,704       60,986  

Kratos Defense & Security Solutions Inc.(a)

    7,460       159,569  

Maxar Technologies Inc.(b)

    4,356       115,652  

Mercury Systems Inc.(a)

    3,379       174,154  

Moog Inc., Class A

    1,767       133,462  

National Presto Industries Inc.

    316       26,275  

PAE Inc.(a)

    3,956       39,244  

Parsons Corp.(a)(b)

    1,574       54,523  

Spirit AeroSystems Holdings Inc., Class A

    6,351       262,233  

Triumph Group Inc.(a)

    3,878       79,305  

Vectrus Inc.(a)

    717       34,724  

Virgin Galactic Holdings Inc.(a)

    10,580       198,375  
   

 

 

 
          2,776,661  
Air Freight & Logistics — 0.3%            

Air Transport Services Group Inc.(a)

    3,474       86,468  

Atlas Air Worldwide Holdings Inc.(a)

    1,618       131,252  

Echo Global Logistics Inc.(a)

    1,589       76,637  

Forward Air Corp.

    1,658       166,729  

Hub Group Inc., Class A(a)

    2,025       159,104  
   

 

 

 
      620,190  
Airlines — 0.4%            

Allegiant Travel Co.(a)

    917       160,723  

Frontier Group Holdings Inc.(a)(b)

    1,916       29,985  

Hawaiian Holdings Inc.(a)

    3,078       59,559  

JetBlue Airways Corp.(a)

    19,095       267,903  

Mesa Air Group Inc.(a)

    2,034       15,336  

SkyWest Inc.(a)

    3,026       130,209  

Spirit Airlines Inc.(a)(b)

    6,530       142,681  

Sun Country Airlines Holdings Inc.(a)

    1,858       56,260  
   

 

 

 
      862,656  
Auto Components — 1.2%            

Adient PLC(a)

    5,664       235,736  

American Axle & Manufacturing Holdings Inc.(a)

    6,898       62,634  

Cooper-Standard Holdings Inc.(a)

    993       25,758  

Dana Inc.

    8,751       194,185  

Dorman Products Inc.(a)

    1,713       178,803  

Fox Factory Holding Corp.(a)

    2,528       406,882  

Gentherm Inc.(a)

    1,991       146,597  

Goodyear Tire & Rubber Co. (The)(a)

    16,969       324,447  

LCI Industries

    1,521       212,392  

Luminar Technologies Inc.(a)(b)

    12,964       212,480  

Modine Manufacturing Co.(a)

    3,164       34,804  

Patrick Industries Inc.

    1,361       106,036  

Standard Motor Products Inc.

    1,141       54,654  

Stoneridge Inc.(a)

    1,704       32,342  

Superior Industries International Inc.(a)

    1,705       9,940  

Tenneco Inc., Class A(a)

    4,552       60,405  

Veoneer Inc.(a)

    6,054       213,101  

Visteon Corp.(a)

    1,689       191,161  
Security   Shares     Value  
Auto Components (continued)            

XL Fleet Corp.(a)

    5,969     $ 32,710  

XPEL Inc.(a)

    999       75,824  
   

 

 

 
          2,810,891  
Automobiles — 0.2%            

Arcimoto Inc.(a)(b)

    1,445       16,878  

AYRO Inc.(a)

    1,904       5,617  

Canoo Inc.(a)(b)

    8,671       69,541  

Fisker Inc.(a)(b)

    8,490       136,265  

Lordstown Motors Corp., Class A(a)(b)

    6,667       34,468  

Winnebago Industries Inc.

    2,035       137,749  

Workhorse Group Inc.(a)

    6,641       44,694  
   

 

 

 
      445,212  
Banks — 7.4%            

1st Source Corp.

    1,365       65,902  

Allegiance Bancshares Inc.

    1,091       42,734  

Ameris Bancorp.

    4,027       210,975  

Associated Banc-Corp.

    10,266       228,726  

Atlantic Capital Bancshares Inc.(a)

    1,469       40,412  

Atlantic Union Bankshares Corp.

    5,044       180,928  

Banc of California Inc.

    3,222       65,503  

BancFirst Corp.

    1,322       85,943  

Bancorp. Inc. (The)(a)

    2,833       86,548  

Bank of Hawaii Corp.

    2,588       218,686  

Bank OZK

    7,491       334,623  

BankUnited Inc.

    4,984       202,151  

Banner Corp.

    1,557       89,932  

Berkshire Hills Bancorp. Inc.

    2,558       69,450  

BOK Financial Corp.

    2,009       203,251  

Brookline Bancorp. Inc.

    2,759       44,282  

Bryn Mawr Bank Corp.

    1,468       68,027  

Byline Bancorp Inc.

    1,745       44,951  

Cadence Bank

    8,197       237,871  

Camden National Corp.

    1,119       53,264  

Cathay General Bancorp.

    5,347       225,590  

Central Pacific Financial Corp.

    509       13,992  

CIT Group Inc.

    6,001       297,230  

City Holding Co.

    657       52,284  

Columbia Banking System Inc.

    4,143       141,401  

Community Bank System Inc.

    3,105       222,535  

Community Trust Bancorp. Inc.

    1,311       57,264  

ConnectOne Bancorp. Inc.

    2,517       84,898  

CrossFirst Bankshares Inc.(a)

    3,169       45,095  

Customers Bancorp. Inc.(a)

    1,792       95,496  

CVB Financial Corp.

    7,670       153,553  

Dime Community Bancshares Inc.

    2,200       78,496  

Eagle Bancorp. Inc.

    1,806       102,202  

Eastern Bankshares Inc.

    10,502       218,127  

Enterprise Financial Services Corp.

    2,614       122,910  

FB Financial Corp.

    2,348       106,435  

Financial Institutions Inc.

    1,281       40,890  

First BanCorp./Puerto Rico

    2,140       29,211  

First Bancorp./Southern Pines NC

    1,724       83,476  

First Bancshares Inc. (The)

    1,614       64,963  

First Busey Corp.

    3,832       97,678  

First Commonwealth Financial Corp.

    3,433       52,525  

First Financial Bancorp.

    3,970       94,407  

First Financial Bankshares Inc.

    7,885       399,927  

First Financial Corp./IN

    996       42,679  

First Foundation Inc.

    2,687       71,501  
 

 

 

42  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Banks (continued)            

First Hawaiian Inc.

    8,120     $ 224,031  

First Interstate BancSystem Inc., Class A

    2,287       95,071  

First Merchants Corp.

    3,684       153,181  

First Midwest Bancorp. Inc.

    6,348       122,199  

Flushing Financial Corp.

    2,197       52,772  

FNB Corp.

    22,751       265,049  

Fulton Financial Corp.

    11,363       182,944  

German American Bancorp. Inc.

    1,685       66,423  

Glacier Bancorp. Inc.

    6,548       362,039  

Great Southern Bancorp. Inc.

    893       50,392  

Great Western Bancorp. Inc.

    3,037       103,410  

Hancock Whitney Corp.

    5,455       269,913  

Hanmi Financial Corp.

    1,167       25,896  

Harborone Bancorp. Inc.

    3,693       53,068  

Heartland Financial USA Inc.

    2,711       135,875  

Heritage Commerce Corp.

    4,346       52,109  

Heritage Financial Corp./WA

    1,430       35,521  

Hilltop Holdings Inc.

    3,868       137,082  

Home BancShares Inc./AR

    9,512       226,005  

HomeStreet Inc.

    509       24,004  

Hope Bancorp Inc.

    5,522       80,566  

Horizon Bancorp Inc./IN

    3,140       59,880  

Independent Bank Corp.

    1,810       152,945  

Independent Bank Corp./MI

    1,944       43,798  

Independent Bank Group Inc.

    2,400       173,496  

International Bancshares Corp.

    3,378       143,227  

Investors Bancorp. Inc.

    13,519       206,841  

Lakeland Bancorp. Inc.

    4,006       72,028  

Lakeland Financial Corp.

    1,569       112,764  

Live Oak Bancshares Inc.(b)

    1,932       172,296  

Meta Financial Group Inc.

    1,855       102,841  

Metropolitan Bank Holding Corp.(a)(b)

    616       55,970  

Midland States Bancorp. Inc.

    1,626       41,723  

National Bank Holdings Corp., Class A

    1,445       62,670  

NBT Bancorp. Inc.

    1,916       70,298  

Nicolet Bankshares Inc.(a)(b)

    796       57,224  

OceanFirst Financial Corp.

    4,074       90,321  

OFG Bancorp.

    1,967       50,945  

Old National Bancorp./IN

    7,169       122,447  

Origin Bancorp Inc.

    1,488       66,365  

Pacific Premier Bancorp. Inc.

    5,451       228,887  

PacWest Bancorp.

    7,283       345,724  

Park National Corp.

    924       118,817  

Peapack Gladstone Financial Corp.

    1,352       45,360  

Peoples Bancorp. Inc./OH

    1,825       58,327  

Pinnacle Financial Partners Inc.

    4,673       451,272  

Popular Inc.

    4,975       405,164  

Prosperity Bancshares Inc.

    5,706       429,719  

QCR Holdings Inc.

    1,045       57,621  

Renasant Corp.

    3,180       118,964  

S&T Bancorp. Inc.

    1,540       47,062  

Sandy Spring Bancorp. Inc.

    3,319       157,520  

Seacoast Banking Corp. of Florida

    2,650       96,539  

ServisFirst Bancshares Inc.

    2,990       240,127  

Silvergate Capital Corp., Class A(a)(b)

    1,591       249,182  

Simmons First National Corp., Class A

    6,251       186,842  

South State Corp.

    4,244       331,414  

Southside Bancshares Inc.

    1,959       80,946  

Sterling Bancorp./DE

    12,277             312,450  

Stock Yards Bancorp. Inc.

    1,592       97,510  
Security   Shares     Value  
Banks (continued)            

Synovus Financial Corp.

    9,041     $ 421,220  

Texas Capital Bancshares Inc.(a)

    3,106       188,224  

Tompkins Financial Corp.

    869       71,354  

Towne Bank/Portsmouth VA

    4,681       147,545  

TriCo Bancshares

    1,802       78,982  

TriState Capital Holdings Inc.(a)

    2,030       61,002  

Triumph Bancorp. Inc.(a)

    1,447       169,733  

Trustmark Corp.

    4,248       135,129  

UMB Financial Corp.

    2,666       263,454  

Umpqua Holdings Corp.

    13,918       284,623  

United Bankshares Inc./WV

    8,016       296,512  

United Community Banks Inc./GA

    5,015       174,723  

Univest Financial Corp.

    2,273       65,235  

Valley National Bancorp.

    25,743       341,352  

Veritex Holdings Inc.

    2,861       117,158  

Washington Trust Bancorp. Inc.

    1,286       70,293  

Webster Financial Corp.

    5,589       312,760  

WesBanco Inc.

    4,335       150,728  

Westamerica Bancorp.

    1,491       83,138  

Wintrust Financial Corp.

    3,566       315,591  
   

 

 

 
        17,952,756  
Beverages — 0.2%            

Celsius Holdings Inc.(a)

    2,280       220,066  

Coca-Cola Consolidated Inc.

    278       111,589  

Duckhorn Portfolio Inc. (The)(a)

    1,859       35,953  

MGP Ingredients Inc.

    762       48,928  

National Beverage Corp.

    1,395       78,678  

NewAge Inc.(a)

    9,061       13,410  
   

 

 

 
      508,624  
Biotechnology — 7.0%            

180 Life Sciences Corp.(a)

    1,386       7,027  

4D Molecular Therapeutics Inc.(a)

    1,260       30,278  

89bio Inc.(a)

    475       8,360  

Abeona Therapeutics Inc.(a)

    6,078       4,937  

ACADIA Pharmaceuticals Inc.(a)

    7,161       128,540  

Adamas Pharmaceuticals Inc.(a)

    2,382       19,318  

ADMA Biologics Inc.(a)

    6,619       8,539  

Adverum Biotechnologies Inc.(a)

    5,271       11,965  

Agenus Inc.(a)

    13,041       50,077  

Agios Pharmaceuticals Inc.(a)(b)

    3,561       167,367  

Akebia Therapeutics Inc.(a)

    10,641       30,540  

Akero Therapeutics Inc.(a)

    1,436       30,860  

Akouos Inc.(a)

    1,484       13,831  

Albireo Pharma Inc.(a)

    1,185       34,626  

Aldeyra Therapeutics Inc.(a)

    3,185       28,984  

Alector Inc.(a)(b)

    3,530       76,742  

Aligos Therapeutics Inc.(a)(b)

    1,166       18,574  

Alkermes PLC(a)

    9,710       294,116  

Allakos Inc.(a)(b)

    2,092       210,413  

Allogene Therapeutics Inc.(a)

    4,472       77,097  

Allovir Inc.(a)

    1,802       43,266  

Altimmune Inc.(a)(b)

    1,998       21,578  

ALX Oncology Holdings Inc.(a)

    1,255       70,330  

Amicus Therapeutics Inc.(a)

    14,502       152,271  

AnaptysBio Inc.(a)

    1,182       38,888  

Anavex Life Sciences Corp.(a)(b)

    4,594       86,092  

Anika Therapeutics Inc.(a)

    916       38,151  

Anixa Biosciences Inc.(a)(b)

    1,422       6,783  

Annexon Inc.(a)

    1,574       25,672  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  43


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Apellis Pharmaceuticals Inc.(a)

    4,306     $ 132,366  

Applied Genetic Technologies Corp./DE(a)(b)

    2,913       7,545  

Applied Molecular Transport Inc.(a)

    1,017       22,903  

Applied Therapeutics Inc.(a)

    1,152       16,900  

AquaBounty Technologies Inc.(a)

    2,821       11,256  

Arbutus Biopharma Corp.(a)

    4,923       19,840  

Arcturus Therapeutics Holdings Inc.(a)(b)

    1,286       57,806  

Arcus Biosciences Inc.(a)(b)

    2,786       93,164  

Arcutis Biotherapeutics Inc.(a)

    1,725       36,536  

Ardelyx Inc.(a)

    4,952       5,992  

Arena Pharmaceuticals Inc.(a)

    3,648       209,359  

Assembly Biosciences Inc.(a)

    2,556       8,051  

Atara Biotherapeutics Inc.(a)

    5,127       79,366  

Athenex Inc.(a)

    4,492       11,410  

Athersys Inc.(a)

    13,383       15,658  

Atossa Therapeutics Inc.(a)

    7,929       20,378  

Atreca Inc., Class A(a)(b)

    1,988       10,298  

AVEO Pharmaceuticals Inc.(a)(b)

    2,043       13,872  

Avid Bioservices Inc.(a)

    3,600       110,448  

Avidity Biosciences Inc.(a)

    2,550       57,375  

Avita Medical Inc.(a)(b)

    1,564       25,759  

Avrobio Inc.(a)

    2,425       13,629  

Beam Therapeutics Inc.(a)(b)

    2,609       231,601  

BioAtla Inc.(a)(b)

    965       28,207  

BioCryst Pharmaceuticals Inc.(a)(b)

    10,784       161,005  

Biohaven Pharmaceutical Holding Co. Ltd.(a)

    3,462       492,712  

Bioxcel Therapeutics Inc.(a)

    1,178       34,327  

Black Diamond Therapeutics Inc.(a)(b)

    1,456       11,153  

Bluebird Bio Inc.(a)(b)

    4,137       96,847  

Blueprint Medicines Corp.(a)

    3,519       395,852  

Bolt Biotherapeutics Inc.(a)(b)

    840       10,996  

Brooklyn ImmunoTherapeutics Inc.(a)

    1,676       14,280  

C4 Therapeutics Inc.(a)

    2,230       99,057  

Calithera Biosciences Inc.(a)

    3,143       6,066  

Cardiff Oncology Inc.(a)

    2,527       14,833  

CareDx Inc.(a)

    3,151       160,701  

CASI Pharmaceuticals Inc.(a)(b)

    4,678       5,052  

Catalyst Biosciences Inc.(a)

    1,751       5,761  

Catalyst Pharmaceuticals Inc.(a)

    5,863       34,592  

Celldex Therapeutics Inc.(a)

    2,789       118,644  

CEL-SCI Corp.(a)

    2,609       29,221  

Cerevel Therapeutics Holdings Inc.(a)

    3,318       134,877  

Checkpoint Therapeutics Inc.(a)(b)

    3,861       13,552  

ChemoCentryx Inc.(a)(b)

    2,993       104,186  

Chimerix Inc.(a)

    4,400       23,056  

Chinook Therapeutics Inc.(a)

    2,397       25,744  

Clene Inc.(a)(b)

    1,344       7,298  

Clovis Oncology Inc.(a)(b)

    7,319       31,691  

Codiak Biosciences Inc.(a)

    994       14,324  

Cogent Biosciences Inc.(a)

    2,049       17,376  

Coherus Biosciences Inc.(a)

    3,811       63,758  

Concert Pharmaceuticals Inc.(a)

    1,788       4,899  

Corbus Pharmaceuticals Holdings Inc.(a)(b)

    7,815       7,815  

Cortexyme Inc.(a)(b)

    1,025       13,530  

Crinetics Pharmaceuticals Inc.(a)

    2,229       55,569  

CTI BioPharma Corp.(a)(b)

    4,466       11,567  

Cue Biopharma Inc.(a)

    1,829       22,332  

Cullinan Oncology Inc.(a)(b)

    1,463       32,508  

Curis Inc.(a)

    4,790       31,135  

Cytokinetics Inc.(a)

    5,008             174,829  
Security   Shares     Value  
Biotechnology (continued)            

CytomX Therapeutics Inc.(a)

    3,751     $ 22,243  

Deciphera Pharmaceuticals Inc.(a)

    2,547       85,044  

Denali Therapeutics Inc.(a)

    5,510       266,409  

Dermtech Inc.(a)

    1,513       41,381  

Design Therapeutics Inc.(a)

    811       12,716  

Dicerna Pharmaceuticals Inc.(a)

    4,171       86,799  

Dynavax Technologies Corp.(a)

    6,399       127,788  

Dyne Therapeutics Inc.(a)

    1,556       22,578  

Eagle Pharmaceuticals Inc./DE(a)

    689       36,083  

Editas Medicine Inc.(a)(b)

    4,107       150,809  

Eiger BioPharmaceuticals Inc.(a)

    2,117       14,269  

Emergent BioSolutions Inc.(a)

    2,849       135,812  

Enanta Pharmaceuticals Inc.(a)

    1,103       94,693  

Epizyme Inc.(a)(b)

    5,663       23,785  

Equillium Inc.(a)

    1,094       6,903  

Evelo Biosciences Inc.(a)

    1,759       15,567  

FibroGen Inc.(a)

    5,351       59,503  

Finch Therapeutics Group Inc.(a)(b)

    456       6,110  

Flexion Therapeutics Inc.(a)

    3,029       28,018  

Forma Therapeutics Holdings Inc.(a)

    1,931       35,839  

Forte Biosciences Inc.(a)

    1,508       4,087  

Fortress Biotech Inc.(a)

    4,864       15,857  

Frequency Therapeutics Inc.(a)(b)

    1,812       11,379  

G1 Therapeutics Inc.(a)

    2,106       30,516  

Generation Bio Co.(a)(b)

    2,656       55,670  

Genprex Inc.(a)(b)

    2,503       5,832  

Geron Corp.(a)(b)

    20,564       31,669  

Global Blood Therapeutics Inc.(a)

    3,499       127,783  

Gossamer Bio Inc.(a)

    3,062       38,030  

Greenwich Lifesciences Inc.(a)

    240       8,486  

Gritstone bio Inc.(a)

    2,467       27,112  

Halozyme Therapeutics Inc.(a)(b)

    8,554       325,651  

Harpoon Therapeutics Inc.(a)

    1,248       7,812  

Heat Biologics Inc.(a)(b)

    1,570       8,384  

Heron Therapeutics Inc.(a)(b)

    6,256       68,879  

Homology Medicines Inc.(a)

    2,474       14,176  

Humanigen Inc.(a)(b)

    2,655       19,063  

iBio Inc.(a)

    14,447       11,269  

Ideaya Biosciences Inc.(a)

    1,985       42,558  

IGM Biosciences Inc.(a)

    464       21,771  

Immunic Inc.(a)

    865       8,062  

ImmunityBio Inc.(a)

    4,024       31,508  

ImmunoGen Inc.(a)

    11,405       68,772  

Immunome Inc.(a)

    611       14,322  

Immunovant Inc.(a)

    2,631       21,153  

Infinity Pharmaceuticals Inc.(a)

    5,632       14,305  

Inhibrx Inc.(a)

    1,235       49,635  

Inmune Bio Inc.(a)(b)

    767       14,105  

Inovio Pharmaceuticals Inc.(a)(b)

    12,751       91,042  

Insmed Inc.(a)(b)

    6,989       210,718  

Instil Bio Inc.(a)

    1,006       20,492  

Intellia Therapeutics Inc.(a)

    4,089       543,755  

Intercept Pharmaceuticals Inc.(a)(b)

    1,745       29,421  

Invitae Corp.(a)(b)

    11,965       317,073  

Ionis Pharmaceuticals Inc.(a)(b)

    8,527       271,755  

Iovance Biotherapeutics Inc.(a)

    8,146       198,029  

Ironwood Pharmaceuticals Inc.(a)

    9,859       125,899  

iTeos Therapeutics Inc.(a)

    1,226       32,796  

IVERIC bio Inc.(a)(b)

    6,394             113,174  

Jounce Therapeutics Inc.(a)

    2,042       17,929  
 

 

 

44  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Kadmon Holdings Inc.(a)(b)

    9,696     $ 91,627  

KalVista Pharmaceuticals Inc.(a)(b)

    1,211       21,774  

Karuna Therapeutics Inc.(a)

    1,323       185,723  

Karyopharm Therapeutics Inc.(a)(b)

    4,256       23,238  

Keros Therapeutics Inc.(a)

    785       32,750  

Kiniksa Pharmaceuticals Ltd., Class A(a)

    1,716       17,829  

Kinnate Biopharma Inc.(a)

    849       20,181  

Kodiak Sciences Inc.(a)(b)

    1,995       233,595  

Kronos Bio Inc.(a)

    2,485       40,903  

Krystal Biotech Inc.(a)

    1,101       55,149  

Kura Oncology Inc.(a)

    4,051       66,517  

Kymera Therapeutics Inc.(a)

    2,113       124,413  

Lexicon Pharmaceuticals Inc.(a)

    4,224       22,345  

Ligand Pharmaceuticals Inc.(a)

    988       144,189  

Lineage Cell Therapeutics Inc.(a)

    7,951       18,128  

MacroGenics Inc.(a)

    3,331       65,054  

Madrigal Pharmaceuticals Inc.(a)

    737       57,302  

Magenta Therapeutics Inc.(a)

    2,346       15,014  

MannKind Corp.(a)(b)

    15,114       71,187  

Matinas BioPharma Holdings Inc.(a)(b)

    12,191       13,532  

MediciNova Inc.(a)

    3,077       10,339  

MEI Pharma Inc.(a)

    5,410       15,256  

MeiraGTx Holdings PLC(a)

    1,742       37,453  

Mersana Therapeutics Inc.(a)

    4,175       35,738  

MiMedx Group Inc.(a)

    5,099       34,928  

Mirum Pharmaceuticals Inc.(a)

    1,041       16,531  

Molecular Templates Inc.(a)

    2,717       14,183  

Morphic Holding Inc.(a)

    1,563       89,873  

Mustang Bio Inc.(a)

    4,909       10,996  

Myovant Sciences Ltd.(a)

    2,554       55,882  

Myriad Genetics Inc.(a)

    4,735       145,696  

Neoleukin Therapeutics Inc.(a)

    1,952       14,308  

NeuBase Therapeutics Inc.(a)

    1,768       6,542  

NexImmune Inc.(a)

    408       4,643  

NextCure Inc.(a)

    1,061       8,721  

Nkarta Inc.(a)

    870       13,642  

Nurix Therapeutics Inc.(a)

    2,420       80,949  

Ocugen Inc.(a)(b)

    12,067       142,873  

Olema Pharmaceuticals Inc.(a)

    1,787       48,249  

Oncocyte Corp.(a)

    5,009       16,430  

Oncorus Inc.(a)

    1,005       10,713  

Oncternal Therapeutics Inc.(a)

    3,010       11,047  

OPKO Health Inc.(a)(b)

    24,707       93,640  

Organogenesis Holdings Inc., Class A(a)

    3,780       41,504  

ORIC Pharmaceuticals Inc.(a)(b)

    1,910       27,962  

Outlook Therapeutics Inc.(a)

    6,204       12,842  

Ovid therapeutics Inc.(a)

    2,715       9,231  

Passage Bio Inc.(a)

    2,201       19,193  

PDS Biotechnology Corp.(a)

    1,414       17,025  

PMV Pharmaceuticals Inc.(a)

    1,649       38,949  

Poseida Therapeutics Inc.(a)

    1,879       12,044  

Praxis Precision Medicines Inc.(a)

    2,134       44,387  

Precigen Inc.(a)

    5,657       27,323  

Precision BioSciences Inc.(a)

    2,903       27,549  

Prelude Therapeutics Inc.(a)(b)

    768       13,501  

Prometheus Biosciences Inc.(a)

    604       19,243  

Protagonist Therapeutics Inc.(a)

    2,682       83,571  

Prothena Corp. PLC(a)(b)

    2,087       115,515  

PTC Therapeutics Inc.(a)

    4,242             160,899  

Puma Biotechnology Inc.(a)

    2,340       11,934  
Security   Shares     Value  
Biotechnology (continued)            

Radius Health Inc.(a)

    2,969     $ 64,130  

RAPT Therapeutics Inc.(a)

    1,192       37,643  

Recursion Pharmaceuticals Inc., Class A(a)

    1,478       28,304  

REGENXBIO Inc.(a)

    2,282       80,874  

Relay Therapeutics Inc.(a)

    4,398       146,234  

Replimune Group Inc.(a)

    1,792       52,882  

REVOLUTION Medicines Inc.(a)

    3,752       110,421  

Rhythm Pharmaceuticals Inc.(a)

    2,348       27,025  

Rigel Pharmaceuticals Inc.(a)

    10,559       35,478  

Rocket Pharmaceuticals Inc.(a)(b)

    2,709       80,484  

Rubius Therapeutics Inc.(a)

    2,533       35,994  

Sage Therapeutics Inc.(a)

    3,074       124,067  

Sana Biotechnology Inc.(a)

    4,979       103,264  

Sangamo Therapeutics Inc.(a)

    7,368       59,828  

Sarepta Therapeutics Inc.(a)

    5,177       409,656  

Scholar Rock Holding Corp.(a)

    1,587       41,738  

Selecta Biosciences Inc.(a)

    5,257       18,873  

Sensei Biotherapeutics Inc.(a)

    551       4,788  

Seres Therapeutics Inc.(a)

    3,538       21,511  

Sesen Bio Inc.(a)

    11,173       13,519  

Shattuck Labs Inc.(a)

    1,725       33,293  

Silverback Therapeutics Inc.(a)(b)

    1,375       11,866  

Sio Gene Therapies Inc.(a)(b)

    3,197       6,106  

Solid Biosciences Inc.(a)

    4,230       8,587  

Sorrento Therapeutics Inc.(a)(b)

    18,014       123,576  

Spectrum Pharmaceuticals Inc.(a)(b)

    10,580       19,361  

Spero Therapeutics Inc.(a)

    1,703       29,905  

SpringWorks Therapeutics Inc.(a)

    1,584       106,223  

SQZ Biotechnologies Co.(a)

    1,158       15,506  

Stoke Therapeutics Inc.(a)

    1,303       29,747  

Surface Oncology Inc.(a)

    2,157       16,005  

Sutro Biopharma Inc.(a)

    2,640       53,222  

Syndax Pharmaceuticals Inc.(a)

    2,538       49,364  

Syros Pharmaceuticals Inc.(a)

    3,444       14,224  

T2 Biosystems Inc.(a)(b)

    10,403       8,057  

Taysha Gene Therapies Inc.(a)

    1,414       22,115  

TCR2 Therapeutics Inc.(a)

    2,114       13,318  

TG Therapeutics Inc.(a)(b)

    7,993       249,541  

Tonix Pharmaceuticals Holding Corp.(a)

    22,063       12,179  

Travere Therapeutics Inc.(a)

    3,091       89,052  

Trevena Inc.(a)(b)

    9,144       9,235  

Turning Point Therapeutics Inc.(a)

    2,980       123,908  

Twist Bioscience Corp.(a)

    2,924       347,371  

Tyme Technologies Inc.(a)

    6,411       6,110  

uniQure NV(a)(b)

    2,176       66,303  

UNITY Biotechnology Inc.(a)

    2,581       6,169  

Vanda Pharmaceuticals Inc.(a)

    3,408       58,345  

Vaxart Inc.(a)(b)

    7,611       51,070  

Vaxcyte Inc.(a)

    1,878       43,945  

Veracyte Inc.(a)

    4,242             203,107  

Verastem Inc.(a)

    10,205       26,533  

Vericel Corp.(a)

    2,820       129,776  

Viking Therapeutics Inc.(a)

    4,456       25,934  

Vir Biotechnology Inc.(a)(b)

    4,396       165,861  

Viracta Therapeutics Inc.(a)

    1,268       7,456  

VistaGen Therapeutics Inc.(a)

    10,831       24,803  

Vor BioPharma Inc.(a)

    715       11,247  

Voyager Therapeutics Inc.(a)(b)

    2,042       7,392  

Werewolf Therapeutics Inc.(a)

    447       7,004  

XBiotech Inc.

    874       12,813  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  45


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Xencor Inc.(a)

    3,624     $ 143,365  

XOMA Corp.(a)

    741       18,525  

Y-mAbs Therapeutics Inc.(a)

    2,098       51,527  

Zentalis Pharmaceuticals Inc.(a)

    2,185       175,761  

ZIOPHARM Oncology Inc.(a)(b)

    14,117       21,176  
   

 

 

 
      16,872,814  
Building Products — 1.0%            

AAON Inc.

    2,487       178,194  

American Woodmark Corp.(a)

    1,032       70,940  

Apogee Enterprises Inc.

    1,543       64,698  

Armstrong World Industries Inc.

    2,845       300,574  

Cornerstone Building Brands Inc.(a)

    3,284       46,994  

Gibraltar Industries Inc.(a)

    1,969       128,300  

Griffon Corp.

    2,859       75,735  

Insteel Industries Inc.

    1,158       47,096  

JELD-WEN Holding Inc.(a)

    5,574       152,783  

Masonite International Corp.(a)(b)

    1,452       174,255  

PGT Innovations Inc.(a)

    3,641       77,735  

Quanex Building Products Corp.

    2,057       42,621  

Resideo Technologies Inc.(a)

    8,671       213,827  

Simpson Manufacturing Co. Inc.

    2,608       276,683  

UFP Industries Inc.

    3,746       306,535  

View Inc.(a)(b)

    3,922       20,943  

Zurn Water Solutions Corp.

    7,272       263,828  
   

 

 

 
          2,441,741  
Capital Markets — 2.4%            

Affiliated Managers Group Inc.

    2,492       418,357  

Artisan Partners Asset Management Inc., Class A

    3,888       192,611  

Assetmark Financial Holdings Inc.(a)

    1,240       31,794  

B. Riley Financial Inc.

    1,009       72,305  

BGC Partners Inc., Class A

    20,620       110,729  

Blucora Inc.(a)

    3,019       49,874  

BrightSphere Investment Group Inc.

    3,614       108,348  

Cohen & Steers Inc.

    1,500       142,335  

Coinbase Global Inc., Class A(a)(b)

    1,723       550,361  

Cowen Inc., Class A

    1,724       65,046  

Diamond Hill Investment Group Inc.

    209       45,324  

Donnelley Financial Solutions Inc.(a)

    1,784       68,363  

Evercore Inc., Class A

    2,405       365,175  

Federated Hermes Inc.

    5,922       197,262  

Focus Financial Partners Inc., Class A(a)

    3,081       193,672  

Freedom Holding Corp./NV(a)(b)

    1,007       67,157  

GCM Grosvenor Inc., Class A

    1,955       22,385  

Greenhill & Co. Inc.

    809       12,717  

Hamilton Lane Inc., Class A

    2,039       213,096  

Houlihan Lokey Inc.

    3,091       346,439  

Interactive Brokers Group Inc., Class A

    5,269       373,309  

Janus Henderson Group PLC

    10,327       480,205  

Moelis & Co., Class A

    3,709       269,793  

Open Lending Corp., Class A(a)

    6,109       192,556  

Oppenheimer Holdings Inc., Class A, NVS

    568       29,564  

Piper Sandler Cos

    874       143,939  

PJT Partners Inc., Class A

    1,451       118,677  

Sculptor Capital Management Inc.

    1,197       31,720  

StepStone Group Inc., Class A

    2,419       113,645  

Stifel Financial Corp.

    6,326       460,976  

StoneX Group Inc.(a)

    1,063       73,464  

Trinity Capital Inc.

    462       7,461  

Victory Capital Holdings Inc., Class A

    1,000       37,900  
Security   Shares     Value  
Capital Markets (continued)            

Virtu Financial Inc., Class A

    5,342     $ 132,909  

Virtus Investment Partners Inc.

    432       138,240  

WisdomTree Investments Inc.

    6,984       44,628  
   

 

 

 
          5,922,336  
Chemicals — 2.5%            

AdvanSix Inc.(a)

    1,744       84,758  

American Vanguard Corp.

    1,628       25,364  

Amyris Inc.(a)(b)

    11,296       167,407  

Ashland Global Holdings Inc.

    3,399       326,338  

Avient Corp.

    5,447       293,484  

Balchem Corp.

    1,918       293,627  

Cabot Corp.

    3,425       182,724  

Chase Corp.

    461       44,256  

Chemours Co. (The)

    9,899       277,370  

Danimer Scientific Inc.(a)(b)

    4,408       65,062  

Diversey Holdings Ltd.(a)

    2,611       45,431  

Ecovyst Inc.

    3,321       38,789  

Element Solutions Inc.

    13,035       296,025  

Ferro Corp.(a)

    4,959       104,238  

FutureFuel Corp.

    1,973       13,929  

GCP Applied Technologies Inc.(a)

    3,253       73,550  

Hawkins Inc.

    1,141       41,841  

HB Fuller Co.

    3,159       222,741  

Huntsman Corp.

    12,659       412,430  

Ingevity Corp.(a)

    2,381       185,504  

Innospec Inc.

    1,499       135,824  

Intrepid Potash Inc.(a)

    587       28,593  

Koppers Holdings Inc.(a)

    1,273       44,670  

Kraton Corp.(a)

    1,933       88,242  

Kronos Worldwide Inc.

    1,482       19,311  

Livent Corp.(a)

    9,709       273,988  

Loop Industries Inc.(a)

    1,203       18,899  

Minerals Technologies Inc.

    2,029       143,937  

NewMarket Corp.

    429       145,864  

Olin Corp.

    8,731       497,492  

PureCycle Technologies Inc.(a)(b)

    4,441       59,465  

Quaker Chemical Corp.(b)

    805       197,901  

Rayonier Advanced Materials Inc.(a)

    3,743       26,875  

Sensient Technologies Corp.

    2,532       242,059  

Stepan Co.

    1,267       152,065  

Tredegar Corp.

    1,626       19,610  

Trinseo PLC

    2,345       131,461  

Tronox Holdings PLC, Class A

    6,899       160,885  

Valvoline Inc.

    10,853       368,568  

Zymergen Inc.(a)(b)

    998       10,579  
   

 

 

 
      5,961,156  
Commercial Services & Supplies — 1.8%            

ABM Industries Inc.

    4,025       177,140  

ACCO Brands Corp.

    5,837       48,272  

ACV Auctions Inc., Class A(a)(b)

    2,757       53,679  

ADT Inc.

    8,772       73,246  

Aqua Metals Inc.(a)(b)

    4,584       7,976  

Brady Corp., Class A, NVS

    2,929       152,572  

BrightView Holdings Inc.(a)

    3,046       48,310  

Brink’s Co. (The)(b)

    2,988       205,813  

Casella Waste Systems Inc., Class A(a)

    3,026       262,415  

Cimpress PLC(a)(b)

    1,134       101,289  

Clean Harbors Inc.(a)

    3,007       338,408  

CoreCivic Inc.(a)

    7,266       62,560  
 

 

 

46  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Commercial Services & Supplies (continued)  

Covanta Holding Corp.

    7,107     $ 143,419  

Deluxe Corp.

    2,571       91,708  

Driven Brands Holdings Inc.(a)

    3,299       107,118  

Ennis Inc.

    1,635       30,967  

Harsco Corp.(a)

    4,813       82,302  

Healthcare Services Group Inc.

    4,496       86,278  

Herman Miller Inc.

    4,541       176,736  

HNI Corp.

    2,681       100,269  

Interface Inc.

    3,635       52,199  

KAR Auction Services Inc.(a)

    7,169       105,169  

Kimball International Inc., Class B

    2,304       25,044  

Matthews International Corp., Class A

    1,916       65,853  

Montrose Environmental Group Inc.(a)

    1,541       105,636  

MSA Safety Inc.

    2,188       334,830  

RR Donnelley & Sons Co.(a)

    4,489       28,730  

SP Plus Corp.(a)

    1,441       46,472  

Steelcase Inc., Class A

    5,601       66,652  

Stericycle Inc.(a)

    5,515       369,064  

Team Inc.(a)

    2,079       5,031  

Tetra Tech Inc.

    3,262       573,003  

U.S. Ecology Inc.(a)

    1,940       62,449  

UniFirst Corp./MA

    919       181,925  

Viad Corp.(a)

    1,271       56,394  
   

 

 

 
          4,428,928  
Communications Equipment — 0.8%            

ADTRAN Inc.

    2,936       54,257  

Applied Optoelectronics Inc.(a)(b)

    1,683       12,875  

Aviat Networks Inc.(a)

    586       16,760  

CalAmp Corp.(a)

    2,229       21,443  

Calix Inc.(a)

    3,318       207,674  

Cambium Networks Corp.(a)

    672       18,964  

Casa Systems Inc.(a)

    1,992       12,609  

Clearfield Inc.(a)

    709       40,051  

CommScope Holding Co. Inc.(a)

    12,289       131,615  

Comtech Telecommunications Corp.

    1,654       35,677  

Digi International Inc.(a)

    2,101       45,277  

EMCORE Corp.(a)

    1,995       14,923  

Extreme Networks Inc.(a)

    7,721       75,897  

Harmonic Inc.(a)

    6,064       55,000  

Infinera Corp.(a)

    12,609       95,702  

Inseego Corp.(a)(b)

    4,702       29,152  

Lumentum Holdings Inc.(a)

    4,547       375,491  

NETGEAR Inc.(a)(b)

    1,820       52,471  

NetScout Systems Inc.(a)

    4,446       120,309  

Ondas Holdings Inc.(a)(b)

    1,617       13,858  

Plantronics Inc.(a)

    2,549       68,211  

Resonant Inc.(a)(b)

    3,447       7,721  

Ribbon Communications Inc.(a)

    7,170       39,220  

Viasat Inc.(a)(b)

    4,404       262,875  

Viavi Solutions Inc.(a)

    13,728       211,411  
   

 

 

 
      2,019,443  
Construction & Engineering — 1.2%            

Ameresco Inc., Class A(a)

    1,847       151,694  

API Group Corp.(a)(b)

    11,683       254,456  

Arcosa Inc.

    2,921       151,103  

Argan Inc.

    946       39,032  

Comfort Systems USA Inc.

    2,182       199,587  

Construction Partners Inc., Class A(a)(b)

    2,176       77,487  

Dycom Industries Inc.(a)

    1,854       147,245  
Security   Shares     Value  
Construction & Engineering (continued)  

EMCOR Group Inc.

    3,228     $ 392,170  

Fluor Corp.(a)

    8,538       165,979  

Granite Construction Inc.

    2,783       103,305  

Great Lakes Dredge & Dock Corp.(a)

    3,907       59,464  

IES Holdings Inc.(a)

    543       27,069  

Infrastructure and Energy Alternatives Inc.(a)

    1,772       19,616  

INNOVATE Corp.(a)

    2,977       11,759  

Matrix Service Co.(a)

    1,551       15,867  

MYR Group Inc.(a)

    1,041       106,338  

NV5 Global Inc.(a)(b)

    707       73,620  

Orbital Energy Group Inc.(a)(b)

    3,696       9,868  

Primoris Services Corp.

    3,209       86,483  

Sterling Construction Co. Inc.(a)(b)

    1,715       41,229  

Tutor Perini Corp.(a)

    2,637       35,916  

Valmont Industries Inc.

    1,275       304,674  

WillScot Mobile Mini Holdings Corp.(a)

    13,415       466,171  
   

 

 

 
          2,940,132  
Construction Materials — 0.3%            

Eagle Materials Inc.

    2,517       373,422  

Forterra Inc.(a)

    1,843       43,901  

Summit Materials Inc., Class A(a)

    7,111       253,507  
   

 

 

 
      670,830  
Consumer Finance — 1.2%            

Credit Acceptance Corp.(a)(b)

    537       321,239  

Curo Group Holdings Corp.

    1,315       22,592  

Encore Capital Group Inc.(a)(b)

    1,825       98,586  

Enova International Inc.(a)

    2,265       73,477  

EZCORP Inc., Class A, NVS(a)

    3,264       24,349  

FirstCash Inc.

    2,427       214,717  

Green Dot Corp., Class A(a)

    3,126       132,417  

LendingClub Corp.(a)

    5,936       272,818  

LendingTree Inc.(a)(b)

    694       112,005  

Navient Corp.

    10,092       198,812  

Nelnet Inc., Class A

    1,255       103,701  

PRA Group Inc.(a)

    2,768       118,692  

PROG Holdings Inc.

    3,999       161,759  

SLM Corp.

    18,262       335,108  

SoFi Technologies Inc.(a)(b)

    35,420       711,588  

World Acceptance Corp.(a)(b)

    254       47,089  
   

 

 

 
      2,948,949  
Containers & Packaging — 0.6%            

Graphic Packaging Holding Co.

    16,961       338,033  

Greif Inc., Class A, NVS

    1,627       105,234  

Myers Industries Inc.

    2,278       46,881  

O-I Glass Inc.(a)

    9,490       123,844  

Pactiv Evergreen Inc.

    2,669       37,126  

Ranpak Holdings Corp.(a)(b)

    2,425       83,566  

Silgan Holdings Inc.

    5,038       202,528  

Sonoco Products Co.

    5,904       342,137  

TriMas Corp.(a)

    2,566       85,576  
   

 

 

 
      1,364,925  
Distributors — 0.0%            

Funko Inc., Class A(a)(b)

    1,584       25,962  
   

 

 

 
Diversified Consumer Services — 0.9%            

2U Inc.(a)

    4,510       133,225  

Adtalem Global Education Inc.(a)

    2,957       109,202  

American Public Education Inc.(a)

    1,114       27,839  

Carriage Services Inc.

    1,005       51,707  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  47


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified Consumer Services (continued)  

Coursera Inc.(a)

    4,821     $ 168,301  

frontdoor Inc.(a)

    5,160       192,365  

Graham Holdings Co., Class B

    246       144,119  

Grand Canyon Education Inc.(a)

    2,713       216,226  

H&R Block Inc.

    10,742       247,818  

Houghton Mifflin Harcourt Co.(a)

    7,689       109,107  

Laureate Education Inc., Class A(a)

    6,046       104,717  

OneSpaWorld Holdings Ltd.(a)

    3,559       38,437  

Perdoceo Education Corp.(a)

    4,212       44,731  

Regis Corp.(a)

    1,651       4,458  

Strategic Education Inc.

    1,367       93,243  

Stride Inc.(a)

    2,489       88,360  

Terminix Global Holdings Inc.(a)

    7,487       303,074  

Vivint Smart Home Inc.(a)(b)

    2,481       22,503  

WW International Inc.(a)

    3,203       55,604  

XpresSpa Group Inc.(a)(b)

    6,549       8,710  
   

 

 

 
      2,163,746  
Diversified Financial Services — 0.1%            

A-Mark Precious Metals Inc.

    499       37,420  

Cannae Holdings Inc.(a)

    4,935       168,284  
   

 

 

 
      205,704  
Diversified Telecommunication Services — 0.5%  

Anterix Inc.(a)

    1,092       69,997  

AST SpaceMobile Inc.(a)(b)

    2,360       26,408  

ATN International Inc.

    674       27,486  

Bandwidth Inc., Class A(a)

    1,399       119,307  

Cogent Communications Holdings Inc.

    2,536       194,232  

Consolidated Communications Holdings Inc.(a)

    4,340       32,116  

EchoStar Corp., Class A(a)

    2,464       57,805  

Globalstar Inc.(a)(b)

    40,049       66,081  

IDT Corp., Class B(a)

    1,050       50,789  

Iridium Communications Inc.(a)(b)

    7,904       320,507  

Liberty Latin America Ltd., Class A(a)

    2,369       28,475  

Liberty Latin America Ltd., Class C, NVS(a)

    9,460       113,804  

Ooma Inc.(a)

    1,279       29,545  

Radius Global Infrastructure Inc., Class A(a)

    3,493       60,534  
   

 

 

 
          1,197,086  
Electric Utilities — 0.7%            

ALLETE Inc.

    3,173       195,266  

Hawaiian Electric Industries Inc.

    6,562       266,155  

IDACORP Inc.

    3,033       316,403  

MGE Energy Inc.

    2,207       167,489  

Otter Tail Corp.

    2,540       157,505  

PNM Resources Inc.

    5,102       253,825  

Portland General Electric Co.

    5,368       264,696  

Via Renewables Inc.

    720       8,028  
   

 

 

 
      1,629,367  
Electrical Equipment — 1.5%            

Acuity Brands Inc.

    2,144       440,442  

Advent Technologies Holdings Inc.(a)

    2,163       20,743  

American Superconductor Corp.(a)

    1,542       28,342  

Array Technologies Inc.(a)(b)

    7,180       153,293  

Atkore Inc.(a)

    2,769       261,754  

AZZ Inc.

    1,533       81,448  

Babcock & Wilcox Enterprises Inc.(a)

    3,383       23,106  

Beam Global(a)(b)

    510       16,065  

Blink Charging Co.(a)(b)

    2,205       70,119  

Bloom Energy Corp., Class A(a)

    8,778       274,400  

Encore Wire Corp.

    1,260       168,916  
Security   Shares     Value  
Electrical Equipment (continued)            

Energous Corp.(a)

    3,775     $ 7,248  

EnerSys

    2,570       205,703  

Eos Energy Enterprises Inc.(a)(b)

    2,406       25,383  

FTC Solar Inc.(a)

    1,320       12,593  

FuelCell Energy Inc.(a)

    19,475       155,605  

GrafTech International Ltd.

    12,227       130,829  

Nuvve Holding Corp.(a)(b)

    764       9,313  

nVent Electric PLC

    10,024       355,351  

Orion Energy Systems Inc.(a)

    1,657       6,777  

Powell Industries Inc.

    628       16,240  

Regal Rexnord Corp.

    4,064       619,069  

Romeo Power Inc.(a)(b)

    5,663       24,578  

Shoals Technologies Group Inc., Class A(a)

    6,112       189,411  

Sunworks Inc.(a)(b)

    1,793       10,884  

Thermon Group Holdings Inc.(a)

    1,972       34,076  

TPI Composites Inc.(a)

    2,256       75,869  

Vicor Corp.(a)

    1,280       194,035  

Westwater Resources Inc.(a)(b)

    1,872       5,934  
   

 

 

 
          3,617,526  
Electronic Equipment, Instruments & Components — 2.5%  

908 Devices Inc.(a)(b)

    833       27,406  

Advanced Energy Industries Inc.

    2,310       212,104  

Aeva Technologies Inc.(a)

    5,519       42,827  

Airgain Inc.(a)

    685       7,693  

Akoustis Technologies Inc.(a)(b)

    2,760       20,755  

Arlo Technologies Inc.(a)

    4,951       34,162  

Avnet Inc.

    5,962       227,212  

Badger Meter Inc.

    1,754       179,346  

Belden Inc.

    2,695       162,266  

Benchmark Electronics Inc.

    2,141       49,907  

Coherent Inc.(a)

    1,474       374,986  

CTS Corp.

    1,969       70,136  

ePlus Inc.(a)

    809       89,451  

Fabrinet(a)

    2,224       213,504  

FARO Technologies Inc.(a)

    1,111       81,736  

II-VI Inc.(a)

    6,310       381,818  

Insight Enterprises Inc.(a)

    2,185       206,919  

Intellicheck Inc.(a)

    990       8,801  

Itron Inc.(a)

    2,720       211,534  

Kimball Electronics Inc.(a)

    1,565       44,994  

Knowles Corp.(a)

    5,902       122,998  

Littelfuse Inc.

    1,478       435,345  

Luna Innovations Inc.(a)

    1,882       18,331  

Methode Electronics Inc.

    2,316       97,434  

MicroVision Inc.(a)(b)

    9,885       75,225  

MICT Inc.(a)(b)

    7,089       9,783  

Napco Security Technologies Inc.(a)

    862       41,341  

National Instruments Corp.

    7,915       336,150  

nLight Inc.(a)

    2,611       73,421  

Novanta Inc.(a)

    2,132       367,898  

OSI Systems Inc.(a)

    1,009       93,948  

Ouster Inc.(a)

    4,097       25,238  

PAR Technology Corp.(a)(b)

    1,506       94,607  

PC Connection Inc.

    768       35,366  

Plexus Corp.(a)

    1,691       147,658  

Rogers Corp.(a)

    1,122       225,657  

Sanmina Corp.(a)

    3,983       150,358  

ScanSource Inc.(a)

    1,583       56,640  

SYNNEX Corp.

    2,543       267,015  

TTM Technologies Inc.(a)

    6,454       85,451  
 

 

 

48  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Velodyne Lidar Inc.(a)(b)

    5,995     $ 36,569  

Vishay Intertechnology Inc.

    7,974       153,260  

Vishay Precision Group Inc.(a)

    785       26,761  

Vontier Corp.

    10,143       343,138  

Wrap Technologies Inc.(a)(b)

    1,499       8,544  
   

 

 

 
      5,975,693  
Energy Equipment & Services — 0.9%            

Archrock Inc.

    8,102       66,355  

Aspen Aerogels Inc.(a)

    1,488       81,036  

Bristow Group Inc.(a)

    1,446       50,032  

Cactus Inc., Class A

    3,480       151,380  

ChampionX Corp.(a)

    12,099       317,357  

Core Laboratories NV(b)

    2,775       72,178  

DMC Global Inc.(a)

    1,165       48,674  

Dril-Quip Inc.(a)

    2,099       49,452  

Expro Group Holdings NV, NVS(a)

    3,196       54,811  

FTS International Inc., Class A(a)(b)

    573       15,185  

Helix Energy Solutions Group Inc.(a)

    8,911       33,684  

Helmerich & Payne Inc.

    6,486       201,325  

Liberty Oilfield Services Inc., Class A(a)

    6,325       81,719  

Nabors Industries Ltd.(a)

    461       47,252  

Newpark Resources Inc.(a)

    5,041       17,139  

NexTier Oilfield Solutions Inc.(a)

    9,669       43,124  

NOV Inc.(a)

    23,476       329,134  

Oceaneering International Inc.(a)

    5,977       81,287  

Oil States International Inc.(a)

    3,950       23,937  

Patterson-UTI Energy Inc.

    11,351       97,165  

ProPetro Holding Corp.(a)

    5,201       49,878  

RPC Inc.(a)

    4,216       22,724  

Select Energy Services Inc., Class A(a)

    3,599       21,630  

Solaris Oilfield Infrastructure Inc., Class A

    1,788       13,571  

TETRA Technologies Inc.(a)

    7,097       22,923  

Tidewater Inc.(a)

    2,607       31,623  

Transocean Ltd.(a)

    35,566       125,548  

U.S. Silica Holdings Inc.(a)

    4,630       44,818  
   

 

 

 
          2,194,941  
Entertainment — 1.0%            

AMC Entertainment Holdings Inc., Class A(a)(b)

    30,871       1,091,907  

Cinedigm Corp., Class A(a)

    8,359       19,727  

Cinemark Holdings Inc.(a)

    6,447       121,204  

CuriosityStream Inc.(a)(b)

    1,600       15,952  

IMAX Corp.(a)

    3,049       57,474  

Liberty Media Corp.-Liberty Braves, Class C, NVS(a)

    2,242       66,632  

Lions Gate Entertainment Corp., Class A(a)(b)

    3,819       49,456  

Lions Gate Entertainment Corp., Class B, NVS(a)

    7,179       81,266  

LivePerson Inc.(a)

    3,429       7,852  

Madison Square Garden Entertainment Corp.(a)(b)

    1,515       106,762  

Madison Square Garden Sports Corp.(a)

    1,018       192,921  

Marcus Corp. (The)(a)

    1,383       25,682  

Sciplay Corp., Class A(a)(b)

    1,512       30,558  

Skillz Inc., Class A(a)(b)

    15,525       173,570  

Warner Music Group Corp., Class A

    5,853       289,665  

World Wrestling Entertainment Inc., Class A

    2,700       164,943  
   

 

 

 
      2,495,571  
Equity Real Estate Investment Trusts (REITs) — 7.5%  

Acadia Realty Trust

    5,375       114,918  

Agree Realty Corp.

    4,138       294,046  

Alexander & Baldwin Inc.

    4,411       108,202  

Alexander’s Inc.

    137       38,193  
Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

American Assets Trust Inc.

    3,222     $ 121,888  

American Campus Communities Inc.

    8,359             449,046  

American Finance Trust Inc.

    7,336       60,742  

Apartment Income REIT Corp.

    9,425       505,274  

Apartment Investment & Management Co., Class A

    9,185       69,622  

Apple Hospitality REIT Inc.

    12,877       202,298  

Armada Hoffler Properties Inc.

    3,778       51,796  

Ashford Hospitality Trust Inc.(a)

    1,729       24,431  

Bluerock Residential Growth REIT Inc., Class A

    1,651       22,338  

Braemar Hotels & Resorts Inc.(a)

    2,906       14,762  

Brandywine Realty Trust

    10,397       137,760  

Brixmor Property Group Inc.

    17,823       417,771  

Broadstone Net Lease Inc.

    9,666       257,019  

CareTrust REIT Inc.

    5,548       115,121  

CatchMark Timber Trust Inc., Class A

    3,044       26,057  

Centerspace

    836       84,637  

Chatham Lodging Trust(a)

    3,176       40,303  

City Office REIT Inc.

    2,738       51,940  

Columbia Property Trust Inc.

    6,917       132,599  

Community Healthcare Trust Inc.

    1,446       69,177  

CoreSite Realty Corp.

    2,654       378,089  

Corporate Office Properties Trust

    6,763       183,413  

Cousins Properties Inc.

    8,934       353,876  

CTO Realty Growth Inc.

    355       19,032  

DiamondRock Hospitality Co.(a)

    13,087       118,306  

DigitalBridge Group Inc.(a)

    29,713       199,077  

Diversified Healthcare Trust

    14,641       53,293  

Douglas Emmett Inc.

    10,482       342,552  

Easterly Government Properties Inc.

    5,039       105,970  

EastGroup Properties Inc.

    2,426       479,814  

Empire State Realty Trust Inc., Class A

    8,588       83,132  

EPR Properties

    4,521       226,999  

Equity Commonwealth(a)

    7,322       189,859  

Essential Properties Realty Trust Inc.

    7,153       213,088  

Farmland Partners Inc.

    1,769       19,884  

First Industrial Realty Trust Inc.

    7,753       451,457  

Four Corners Property Trust Inc.

    4,692       136,068  

Franklin Street Properties Corp., Class C

    5,813       26,159  

GEO Group Inc. (The)

    995       8,139  

Getty Realty Corp.

    2,322       74,583  

Gladstone Commercial Corp.

    2,338       51,109  

Gladstone Land Corp.

    1,715       37,970  

Global Medical REIT Inc.

    3,612       59,887  

Global Net Lease Inc.

    6,242       99,997  

Healthcare Realty Trust Inc.

    8,738       288,878  

Healthcare Trust of America Inc., Class A

    13,140       438,745  

Hersha Hospitality Trust, Class A(a)

    2,121       18,941  

Highwoods Properties Inc.

    6,215       278,681  

Hudson Pacific Properties Inc.

    9,141       235,381  

Independence Realty Trust Inc.

    6,396       151,138  

Industrial Logistics Properties Trust

    3,966       111,405  

Innovative Industrial Properties Inc.

    1,439       378,587  

iStar Inc.

    4,289       108,254  

JBG SMITH Properties

    6,972       201,212  

Kite Realty Group Trust

    13,313       270,254  

Lexington Realty Trust

    16,672       242,911  

Life Storage Inc.

    4,751       635,731  

LTC Properties Inc.

    2,433       77,515  

Macerich Co. (The)

    12,780       231,190  

Mack-Cali Realty Corp.(a)

    4,857       88,349  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  49


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Monmouth Real Estate Investment Corp.

    5,952     $ 112,195  

National Health Investors Inc.

    2,808       151,014  

National Storage Affiliates Trust

    4,964       310,051  

NETSTREIT Corp.

    2,359       57,182  

NexPoint Residential Trust Inc.

    1,353       95,819  

Office Properties Income Trust

    2,999       76,834  

One Liberty Properties Inc.

    1,005       31,416  

Outfront Media Inc.

    8,713       216,867  

Paramount Group Inc.

    9,998       84,783  

Park Hotels & Resorts Inc.(a)

    14,190       262,941  

Pebblebrook Hotel Trust(b)

    8,003       179,747  

Pennsylvania REIT(a)

    4,519       7,682  

Physicians Realty Trust

    13,019       247,491  

Piedmont Office Realty Trust Inc., Class A

    7,551       134,106  

Plymouth Industrial REIT Inc.

    1,911       48,845  

PotlatchDeltic Corp.

    4,027       210,491  

Preferred Apartment Communities Inc., Class A

    3,403       42,912  

PS Business Parks Inc.

    1,207       214,484  

Rayonier Inc.

    8,457       315,700  

Retail Opportunity Investments Corp.

    7,539       133,968  

Retail Value Inc.

    1,047       6,554  

Rexford Industrial Realty Inc.

    8,270       555,744  

RLJ Lodging Trust

    10,168       146,623  

RPT Realty

    5,044       67,035  

Ryman Hospitality Properties Inc.(a)(b)

    3,294       281,769  

Sabra Health Care REIT Inc.

    13,428       190,006  

Safehold Inc.(b)

    798       59,611  

Saul Centers Inc.

    815       37,816  

Seritage Growth Properties, Class A(a)(b)

    2,228       34,311  

Service Properties Trust

    9,918       106,817  

SITE Centers Corp.

    10,798       171,580  

SL Green Realty Corp.

    4,026       282,102  

Spirit Realty Capital Inc.

    7,113       348,039  

STAG Industrial Inc.

    9,736       423,808  

Summit Hotel Properties Inc.(a)

    6,692       66,920  

Sunstone Hotel Investors Inc.(a)

    13,297       164,085  

Tanger Factory Outlet Centers Inc.

    6,259       105,151  

Terreno Realty Corp.

    4,234       309,632  

UMH Properties Inc.

    2,708       64,830  

Uniti Group Inc.

    13,904       198,966  

Universal Health Realty Income Trust

    793       45,177  

Urban Edge Properties

    6,746       118,257  

Urstadt Biddle Properties Inc., Class A

    1,901       37,336  

Washington REIT

    5,095       129,158  

Whitestone REIT

    2,863       26,282  

Xenia Hotels & Resorts Inc.(a)

    6,965       123,977  
   

 

 

 
        18,114,979  
Food & Staples Retailing — 0.6%  

Andersons Inc. (The)

    1,879       63,999  

BJ’s Wholesale Club Holdings Inc.(a)(b)

    8,240       481,546  

Chefs’ Warehouse Inc. (The)(a)

    2,029       70,751  

Grocery Outlet Holding Corp.(a)

    5,266       116,852  

Ingles Markets Inc., Class A

    899       62,202  

Natural Grocers by Vitamin Cottage Inc.

    454       5,530  

PriceSmart Inc.

    1,473       105,982  

Rite Aid Corp.(a)

    3,317       45,078  

SpartanNash Co.

    2,268       52,481  

Sprouts Farmers Market Inc.(a)

    6,837       151,371  

United Natural Foods Inc.(a)

    3,433       148,958  
Security   Shares     Value  
Food & Staples Retailing (continued)  

Weis Markets Inc.

    976     $ 54,959  
   

 

 

 
      1,359,709  
Food Products — 1.3%            

AppHarvest Inc.(a)(b)

    3,903       23,496  

B&G Foods Inc.

    3,883       114,315  

Calavo Growers Inc.

    1,073       43,135  

Cal-Maine Foods Inc.

    2,260       81,496  

Flowers Foods Inc.

    12,045       298,114  

Fresh Del Monte Produce Inc.

    2,061       69,023  

Hain Celestial Group Inc. (The)(a)(b)

    5,030       225,696  

Hostess Brands Inc.(a)

    7,758       146,704  

Ingredion Inc.

    4,025       383,301  

J&J Snack Foods Corp.

    901       132,942  

John B Sanfilippo & Son Inc.

    532       44,954  

Laird Superfood Inc.(a)(b)

    237       4,138  

Lancaster Colony Corp.

    1,191       202,470  

Mission Produce Inc.(a)

    2,230       42,348  

Pilgrim’s Pride Corp.(a)

    2,916       82,114  

Post Holdings Inc.(a)

    3,519       357,108  

Sanderson Farms Inc.

    1,288       244,012  

Seaboard Corp.

    16       61,600  

Simply Good Foods Co. (The)(a)

    5,064       200,788  

Tattooed Chef Inc.(a)(b)

    2,715       48,788  

Tootsie Roll Industries Inc.

    1,035       32,758  

TreeHouse Foods Inc.(a)

    3,343       120,816  

Utz Brands Inc.

    3,731       58,166  

Vital Farms Inc.(a)

    1,461       23,990  

Whole Earth Brands Inc.(a)

    2,315       28,081  
   

 

 

 
          3,070,353  
Gas Utilities — 0.7%            

Chesapeake Utilities Corp.

    1,079       141,425  

Macquarie Infrastructure Corp.

    4,447       16,409  

National Fuel Gas Co.

    5,503       316,037  

New Jersey Resources Corp.

    5,832       220,508  

Northwest Natural Holding Co.

    1,896       85,491  

ONE Gas Inc.

    3,189       214,620  

South Jersey Industries Inc.

    6,799       154,745  

Southwest Gas Holdings Inc.

    3,549       245,768  

Spire Inc.

    3,115       195,497  
   

 

 

 
      1,590,500  
Health Care Equipment & Supplies — 3.6%  

Accelerate Diagnostics Inc.(a)(b)

    2,186       12,897  

Accuray Inc.(a)(b)

    6,141       30,644  

Acutus Medical Inc.(a)

    1,346       10,553  

Alphatec Holdings Inc.(a)

    4,168       48,891  

AngioDynamics Inc.(a)

    2,352       67,267  

Asensus Surgical Inc.(a)

    13,805       23,330  

Aspira Women’s Health Inc.(a)(b)

    3,601       12,063  

AtriCure Inc.(a)

    2,759       207,091  

Atrion Corp.

    85       61,880  

Avanos Medical Inc.(a)

    2,924       92,223  

Axogen Inc.(a)

    2,515       38,203  

Axonics Inc.(a)(b)

    2,780       203,913  

BioLife Solutions Inc.(a)

    1,759       93,491  

Bioventus Inc., Class A(a)

    493       7,444  

Butterfly Network Inc.(a)

    7,900       81,528  

Cardiovascular Systems Inc.(a)

    2,438       85,525  

Cerus Corp.(a)(b)

    10,489       69,227  

ClearPoint Neuro Inc.(a)

    969       16,211  
 

 

 

50  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies (continued)            

Co-Diagnostics Inc.(a)

    1,493     $ 12,258  

Conformis Inc.(a)

    10,650       13,099  

CONMED Corp.

    1,736       253,942  

CryoLife Inc.(a)

    2,377       49,061  

CryoPort Inc.(a)

    2,769       225,784  

Cutera Inc.(a)(b)

    994       42,742  

CytoSorbents Corp.(a)

    2,336       13,759  

DarioHealth Corp.(a)

    931       15,222  

Eargo Inc.(a)

    1,402       12,338  

Envista Holdings Corp.(a)

    9,613       375,868  

Establishment Labs Holdings Inc.(a)

    1,307       106,573  

Glaukos Corp.(a)

    2,807       128,308  

Globus Medical Inc., Class A(a)

    4,687       361,696  

Haemonetics Corp.(a)

    3,060       210,253  

Heska Corp.(a)

    641       143,283  

ICU Medical Inc.(a)

    1,193       279,317  

Inari Medical Inc.(a)

    1,914       173,255  

Inogen Inc.(a)

    1,178       46,708  

Integer Holdings Corp.(a)

    1,981       178,330  

Integra LifeSciences Holdings Corp.(a)

    4,320             287,107  

Intersect ENT Inc.(a)

    2,022       54,533  

Invacare Corp.(a)

    2,209       10,912  

iRhythm Technologies Inc.(a)

    1,776       124,569  

Lantheus Holdings Inc.(a)

    4,101       95,922  

LeMaitre Vascular Inc.

    1,154       60,020  

LivaNova PLC(a)

    3,195       245,120  

Meridian Bioscience Inc.(a)

    2,585       48,624  

Merit Medical Systems Inc.(a)

    3,025       203,461  

Mesa Laboratories Inc.

    303       92,627  

Natus Medical Inc.(a)

    2,076       52,004  

Neogen Corp.(a)

    6,414       271,376  

Neuronetics Inc.(a)

    1,390       7,228  

NeuroPace Inc.(a)

    379       5,746  

Nevro Corp.(a)

    2,076       236,124  

NuVasive Inc.(a)

    3,113       166,110  

OraSure Technologies Inc.(a)

    4,270       45,561  

Ortho Clinical Diagnostics Holdings PLC(a)

    6,765       133,744  

Orthofix Medical Inc.(a)

    1,214       43,680  

OrthoPediatrics Corp.(a)

    857       60,993  

Outset Medical Inc.(a)(b)

    2,428       129,340  

PAVmed Inc.(a)(b)

    4,482       24,337  

Pulmonx Corp.(a)(b)

    2,092       81,442  

Pulse Biosciences Inc.(a)(b)

    819       17,273  

Quidel Corp.(a)

    2,280       302,716  

Quotient Ltd.(a)

    5,927       14,995  

Repro-Med Systems Inc.(a)

    2,298       5,722  

Retractable Technologies Inc.(a)(b)

    1,171       11,078  

SeaSpine Holdings Corp.(a)

    1,898       28,394  

Senseonics Holdings Inc.(a)(b)

    24,578       86,023  

Shockwave Medical Inc.(a)(b)

    2,113       451,548  

SI-BONE Inc.(a)

    1,637       36,914  

Sientra Inc.(a)

    3,534       20,709  

Silk Road Medical Inc.(a)(b)

    2,102       123,408  

SmileDirectClub Inc.(a)(b)

    6,394       32,929  

Soliton Inc.(a)

    585       12,045  

STAAR Surgical Co.(a)

    2,845       337,019  

Surgalign Holdings Inc.(a)(b)

    8,223       7,905  

Surmodics Inc.(a)

    855       47,589  

Tactile Systems Technology Inc.(a)

    1,215       41,905  

Tandem Diabetes Care Inc.(a)(b)

    3,782       515,600  
Security   Shares     Value  
Health Care Equipment & Supplies (continued)            

TransMedics Group Inc.(a)

    1,675     $ 45,945  

Treace Medical Concepts Inc.(a)

    744       17,157  

Vapotherm Inc.(a)

    1,392       31,835  

Varex Imaging Corp.(a)

    2,374       63,742  

Vicarious Surgical Inc., NVS(a)

    2,107       27,538  

ViewRay Inc.(a)

    8,554       62,530  

Zynex Inc.(a)(b)

    1,122       14,059  
   

 

 

 
          8,641,335  
Health Care Providers & Services — 2.4%            

1Life Healthcare Inc.(a)

    6,972       151,014  

Acadia Healthcare Co. Inc.(a)

    5,398       334,676  

Accolade Inc.(a)

    3,473       138,191  

AdaptHealth Corp.(a)(b)

    5,744       156,524  

Addus HomeCare Corp.(a)

    952       89,012  

Alignment Healthcare Inc.(a)

    1,716       34,080  

AMN Healthcare Services Inc.(a)

    2,846       280,900  

Apollo Medical Holdings Inc.(a)

    2,263       155,310  

Apria Inc.(a)

    433       16,207  

Aveanna Healthcare Holdings Inc.(a)

    2,493       19,246  

Biodesix Inc.(a)

    533       4,019  

Brookdale Senior Living Inc.(a)

    11,226       72,969  

Castle Biosciences Inc.(a)

    1,414       88,163  

Clover Health Investments Corp.(a)

    12,108       90,810  

Community Health Systems Inc.(a)

    7,471       97,870  

CorVel Corp.(a)(b)

    564       103,336  

Covetrus Inc.(a)

    6,307       127,338  

Cross Country Healthcare Inc.(a)

    2,193       45,461  

Ensign Group Inc. (The)

    3,143       245,185  

Fulgent Genetics Inc.(a)(b)

    1,154       95,690  

Hanger Inc.(a)

    2,236       41,768  

HealthEquity Inc.(a)

    5,014       331,827  

Hims & Hers Health Inc.(a)

    7,473       58,289  

InfuSystem Holdings Inc.(a)

    1,106       18,393  

Innovage Holding Corp.(a)

    1,151       7,620  

Joint Corp. (The)(a)

    863       75,495  

Magellan Health Inc.(a)

    1,377       130,581  

MEDNAX Inc.(a)

    5,201       141,623  

ModivCare Inc.(a)

    740       120,450  

National HealthCare Corp.

    779       54,483  

National Research Corp.

    824       35,679  

Ontrak Inc.(a)

    472       4,059  

Option Care Health Inc.(a)

    8,302       226,894  

Owens & Minor Inc.

    4,530       162,536  

Patterson Companies Inc.

    5,255       164,271  

Pennant Group Inc. (The)(a)

    1,622       41,475  

PetIQ Inc.(a)

    1,553       38,903  

Premier Inc., Class A

    7,341       285,932  

Privia Health Group Inc.(a)

    1,258       32,331  

Progyny Inc.(a)

    4,120       253,092  

R1 RCM Inc.(a)

    8,021       174,056  

RadNet Inc.(a)

    2,682       83,383  

Select Medical Holdings Corp.

    6,368       211,545  

Sharps Compliance Corp.(a)

    824       6,798  

Signify Health Inc., Class A(a)(b)

    1,462       23,494  

SOC Telemed Inc.(a)

    3,771       8,296  

Surgery Partners Inc.(a)(b)

    1,788       73,558  

Tenet Healthcare Corp.(a)

    6,450       462,207  

Tivity Health Inc.(a)

    2,696       67,454  

Triple-S Management Corp.(a)

    1,418       50,041  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  51


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Providers & Services (continued)            

U.S. Physical Therapy Inc.

    790     $ 85,209  
   

 

 

 
      5,817,743  
Health Care Technology — 1.3%            

Allscripts Healthcare Solutions Inc.(a)

    7,557       104,135  

American Well Corp., Class A(a)

    10,846       97,614  

Certara Inc.(a)

    5,565       229,890  

Change Healthcare Inc.(a)

    14,801       318,666  

Computer Programs & Systems Inc.(a)

    897       32,382  

Evolent Health Inc., Class A(a)

    4,799       140,467  

GoodRx Holdings Inc., Class A(a)(b)

    3,807       169,792  

Health Catalyst Inc.(a)

    3,069       161,552  

HealthStream Inc.(a)

    1,532       40,766  

Icad Inc.(a)

    1,433       15,118  

Inovalon Holdings Inc., Class A(a)

    4,747       193,630  

Inspire Medical Systems Inc.(a)

    1,629       439,146  

Multiplan Corp.(a)(b)

    15,313       65,999  

NextGen Healthcare Inc.(a)

    3,475       57,198  

Omnicell Inc.(a)(b)

    2,613       465,506  

OptimizeRx Corp.(a)

    1,063       102,792  

Phreesia Inc.(a)

    3,044       214,724  

Schrodinger Inc.(a)

    2,811       153,424  

Sema4 Holdings Corp.(a)

    7,552       60,945  

Simulations Plus Inc.

    960       48,480  

Tabula Rasa HealthCare Inc.(a)

    1,426       38,716  

Vocera Communications Inc.(a)

    2,082       117,800  
   

 

 

 
          3,268,742  
Hotels, Restaurants & Leisure — 2.5%            

Accel Entertainment Inc.(a)

    3,354       40,852  

Bally’s Corp.(a)

    1,792       82,092  

BJ’s Restaurants Inc.(a)

    1,426       47,514  

Bloomin’ Brands Inc.(a)

    4,899       105,916  

Brinker International Inc.(a)

    2,766       116,061  

BurgerFi International Inc.(a)

    664       5,445  

Carrols Restaurant Group Inc.

    2,341       8,592  

Century Casinos Inc.(a)

    1,744       25,811  

Cheesecake Factory Inc. (The)(a)

    2,919       118,628  

Choice Hotels International Inc.

    1,971       277,162  

Chuy’s Holdings Inc.(a)(b)

    1,237       36,071  

Cracker Barrel Old Country Store Inc.

    1,430       190,433  

Dave & Buster’s Entertainment Inc.(a)

    2,340       86,884  

Del Taco Restaurants Inc.

    2,193       18,290  

Denny’s Corp.(a)(b)

    3,931       62,503  

Dine Brands Global Inc.(a)

    1,042       88,059  

Drive Shack Inc.(a)(b)

    5,309       13,803  

El Pollo Loco Holdings Inc.(a)

    1,252       18,404  

Everi Holdings Inc.(a)

    5,461       131,064  

Fiesta Restaurant Group Inc.(a)

    994       10,477  

Full House Resorts Inc.(a)

    1,984       19,741  

GAN Ltd.(a)(b)

    2,433       34,743  

Golden Entertainment Inc.(a)

    1,214       63,092  

Golden Nugget Online Gaming Inc.(a)

    2,477       41,787  

Hall of Fame Resort & Entertainment Co.(a)(b)

    3,022       6,951  

Hilton Grand Vacations Inc.(a)

    5,321       267,540  

Hyatt Hotels Corp., Class A(a)

    2,892       246,398  

Jack in the Box Inc.

    1,310       129,625  

Lindblad Expeditions Holdings Inc.(a)(b)

    1,877       28,061  

Marriott Vacations Worldwide Corp.

    2,564       403,112  

Monarch Casino & Resort Inc.(a)

    806       58,209  

Noodles & Co.(a)

    2,073       25,187  
Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)            

Papa John’s International Inc.

    1,954     $ 242,452  

Planet Fitness Inc., Class A(a)

    4,998       397,591  

PlayAGS Inc.(a)

    1,781       15,708  

RCI Hospitality Holdings Inc.

    485       32,883  

Red Robin Gourmet Burgers Inc.(a)

    1,028       20,426  

Red Rock Resorts Inc., Class A(a)

    3,658       199,032  

Rush Street Interactive Inc.(a)

    3,157       63,550  

Ruth’s Hospitality Group Inc.(a)

    1,986       38,409  

Scientific Games Corp./DE, Class A(a)

    5,795       463,890  

SeaWorld Entertainment Inc.(a)

    3,089       196,152  

Shake Shack Inc., Class A(a)

    2,356       162,965  

Six Flags Entertainment Corp.(a)

    4,667       191,954  

Travel + Leisure Co.

    5,159       280,340  

Wendy’s Co. (The)

    10,702       238,655  

Wingstop Inc.

    1,790       308,721  

Wyndham Hotels & Resorts Inc.

    5,615       474,299  
   

 

 

 
          6,135,534  
Household Durables — 1.8%            

Aterian Inc.(a)

    1,428       9,125  

Bassett Furniture Industries Inc.

    610       10,303  

Beazer Homes USA Inc.(a)

    1,885       34,137  

Casper Sleep Inc.(a)

    1,375       5,005  

Cavco Industries Inc.(a)

    513       123,315  

Century Communities Inc.

    1,824       122,317  

Cricut Inc., Class A(a)

    1,473       41,730  

Dream Finders Homes Inc., Class A(a)

    1,083       17,187  

Ethan Allen Interiors Inc.

    1,404       32,587  

GoPro Inc., Class A(a)

    7,552       65,023  

Green Brick Partners Inc.(a)

    2,878       74,972  

Helen of Troy Ltd.(a)(b)

    1,443       324,603  

Hooker Furniture Corp.

    779       19,639  

Hovnanian Enterprises Inc., Class A(a)

    287       24,183  

Installed Building Products Inc.

    1,396       177,362  

iRobot Corp.(a)

    1,691       141,063  

KB Home

    5,419       217,573  

Koss Corp.(a)

    389       6,294  

La-Z-Boy Inc.

    2,774       92,208  

Leggett & Platt Inc.

    8,004       374,987  

LGI Homes Inc.(a)

    1,295       193,344  

Lovesac Co. (The)(a)(b)

    813       63,422  

M/I Homes Inc.(a)

    1,771       101,407  

MDC Holdings Inc.

    3,370       165,063  

Meritage Homes Corp.(a)

    2,288       248,728  

Purple Innovation Inc., Class A(a)

    3,513       67,801  

Skyline Champion Corp.(a)

    3,201       202,687  

Sonos Inc.(a)

    7,483       244,095  

Taylor Morrison Home Corp.(a)

    7,493       228,761  

TopBuild Corp.(a)

    1,978       508,287  

TRI Pointe Homes Inc.(a)

    6,897       166,838  

Tupperware Brands Corp.(a)(b)

    3,008       66,898  

Universal Electronics Inc.(a)

    817       33,644  

Vizio Holding Corp., Class A(a)(b)

    748       15,364  

VOXX International Corp., Class A(a)

    829       9,376  

Vuzix Corp.(a)(b)

    3,549       37,939  
   

 

 

 
      4,267,267  
Household Products — 0.3%            

Central Garden & Pet Co.(a)

    583       30,071  

Central Garden & Pet Co., Class A, NVS(a)

    2,422       111,897  

Energizer Holdings Inc.

    3,798       138,513  
 

 

 

52  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Household Products (continued)            

Reynolds Consumer Products Inc.

    3,207     $ 86,525  

Spectrum Brands Holdings Inc.

    2,547       238,781  

WD-40 Co.

    822       186,594  
   

 

 

 
      792,381  
Independent Power and Renewable Electricity Producers — 0.3%  

Clearway Energy Inc., Class A

    2,032       67,036  

Clearway Energy Inc., Class C

    4,996       177,258  

Ormat Technologies Inc.

    2,694       194,857  

Sunnova Energy International Inc.(a)(b)

    5,590       249,090  
   

 

 

 
      688,241  
Industrial Conglomerates — 0.0%            

Raven Industries Inc.(a)

    2,160       124,891  
   

 

 

 
Insurance — 2.6%            

Ambac Financial Group Inc.(a)

    2,959       50,037  

American Equity Investment Life Holding Co.

    4,983       158,808  

American National Group Inc.

    789       149,681  

AMERISAFE Inc.

    1,319       78,204  

Argo Group International Holdings Ltd.

    2,184       120,338  

Assured Guaranty Ltd.

    4,420       245,664  

Axis Capital Holdings Ltd.

    4,686       244,000  

Brighthouse Financial Inc.(a)

    5,049       253,611  

BRP Group Inc., Class A(a)

    3,107       113,406  

CNO Financial Group Inc.

    7,844       189,354  

eHealth Inc.(a)

    1,447       64,175  

Employers Holdings Inc.

    1,020       39,372  

Enstar Group Ltd.(a)

    754       174,008  

First American Financial Corp.

    6,681       488,648  

Genworth Financial Inc., Class A(a)

    27,811       114,303  

GoHealth Inc., Class A(a)(b)

    4,033       21,778  

Goosehead Insurance Inc., Class A

    1,169       168,687  

Greenlight Capital Re Ltd., Class A(a)

    2,334       17,342  

Hanover Insurance Group Inc. (The)

    2,230       280,980  

HCI Group Inc.

    411       55,078  

Horace Mann Educators Corp.

    1,715       67,194  

James River Group Holdings Ltd.

    2,320       74,124  

Kemper Corp.

    3,603       228,718  

Kinsale Capital Group Inc.

    1,301       243,482  

Lemonade Inc.(a)(b)

    2,302       143,092  

MBIA Inc.(a)

    2,937       45,641  

Mercury General Corp.

    1,694       92,306  

MetroMile Inc.(a)

    4,679       14,365  

Oscar Health Inc., Class A(a)

    2,325       40,176  

Palomar Holdings Inc.(a)(b)

    1,463       133,791  

Primerica Inc.

    2,358       396,710  

ProAssurance Corp.

    2,298       52,647  

RLI Corp.

    2,405       260,486  

Root Inc./OH, Class A(a)(b)

    5,336       24,759  

Safety Insurance Group Inc.

    597       46,811  

Selective Insurance Group Inc.

    3,673       287,853  

Selectquote Inc.(a)

    7,339       97,535  

SiriusPoint Ltd.(a)

    5,853       55,018  

Stewart Information Services Corp.

    1,375       97,859  

Trupanion Inc.(a)(b)

    2,038       208,691  

United Fire Group Inc.

    1,420       29,011  

Universal Insurance Holdings Inc.

    1,747       25,803  

Unum Group

    12,596       320,820  

White Mountains Insurance Group Ltd.

    191       201,503  
   

 

 

 
          6,215,869  
Security   Shares     Value  
Interactive Media & Services — 0.9%            

ANGI Inc.(a)

    4,650     $ 58,265  

Cargurus Inc.(a)

    5,194       174,207  

Cars.com Inc.(a)

    3,947       51,390  

Eventbrite Inc., Class A(a)

    4,600       93,104  

EverQuote Inc., Class A(a)

    1,215       16,755  

fuboTV Inc.(a)

    8,509       253,653  

IZEA Worldwide Inc.(a)(b)

    3,711       7,570  

Liberty TripAdvisor Holdings Inc., Class A(a)

    4,229       13,068  

MediaAlpha Inc., Class A(a)

    1,289       22,596  

QuinStreet Inc.(a)

    3,061       42,854  

TripAdvisor Inc.(a)

    5,921       195,215  

TrueCar Inc.(a)

    5,309       22,245  

Yelp Inc.(a)

    4,204       162,401  

Zedge Inc., Class B(a)

    708       8,163  

Ziff Davis Inc.(a)

    2,908       373,009  

ZoomInfo Technologies Inc., Class A(a)

    10,956       736,462  
   

 

 

 
          2,230,957  
Internet & Direct Marketing Retail — 0.6%            

1-800-Flowers.com Inc., Class A(a)(b)

    1,624       52,163  

CarParts.com Inc.(a)

    2,777       42,294  

Duluth Holdings Inc., Class B(a)

    752       10,776  

Groupon Inc.(a)

    1,269       26,928  

Lands’ End Inc.(a)(b)

    773       20,314  

Liquidity Services Inc.(a)

    1,626       35,902  

Overstock.com Inc.(a)(b)

    2,589       246,551  

PetMed Express Inc.

    1,202       34,173  

Porch Group Inc.(a)

    4,534       95,350  

Poshmark Inc., Class A(a)(b)

    889       21,629  

Quotient Technology Inc.(a)

    5,046       32,496  

Qurate Retail Inc., Series A

    22,000       229,680  

RealReal Inc. (The)(a)

    4,885       63,652  

Remark Holdings Inc.(a)(b)

    6,633       13,996  

Revolve Group Inc.(a)

    2,283       171,316  

Shutterstock Inc.

    1,434       173,729  

Stitch Fix Inc., Class A(a)

    4,327       149,714  

ThredUp Inc., Class A(a)

    1,334       28,868  

Waitr Holdings Inc.(a)(b)

    5,499       10,668  
   

 

 

 
      1,460,199  
IT Services — 1.6%            

Alliance Data Systems Corp.

    2,995       255,324  

BigCommerce Holdings Inc., Series 1(a)

    3,553       164,184  

Brightcove Inc.(a)

    2,377       23,580  

Cantaloupe Inc.(a)

    3,465       43,312  

Cass Information Systems Inc.

    740       30,333  

Conduent Inc.(a)

    9,746       65,785  

CSG Systems International Inc.

    1,939       97,047  

DigitalOcean Holdings Inc.(a)

    1,034       100,908  

EVERTEC Inc.

    3,566       161,219  

Evo Payments Inc., Class A(a)

    2,909       63,067  

ExlService Holdings Inc.(a)

    1,979       242,685  

Fastly Inc., Class A(a)(b)

    6,377       322,740  

GreenBox POS(a)

    1,154       9,370  

GreenSky Inc., Class A(a)

    4,207       51,494  

Grid Dynamics Holdings Inc.(a)

    2,613       75,124  

Hackett Group Inc. (The)

    1,651       34,902  

I3 Verticals Inc., Class A(a)

    1,396       31,256  

International Money Express Inc.(a)

    1,970       32,978  

Limelight Networks Inc.(a)(b)

    7,240       21,575  

LiveRamp Holdings Inc.(a)

    4,081       218,374  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  53


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
IT Services (continued)            

Maximus Inc.

    3,691     $ 312,148  

MoneyGram International Inc.(a)

    5,507       32,877  

Net 1 UEPS Technologies Inc.(a)(b)

    2,236       12,499  

Paya Holdings Inc., Class A(a)(b)

    4,870       44,366  

Perficient Inc.(a)

    1,996       246,706  

Rackspace Technology Inc.(a)

    3,748       49,811  

Repay Holdings Corp.(a)

    4,476       94,041  

Sabre Corp.(a)

    19,453       201,922  

Shift4 Payments Inc., Class A(a)(b)

    2,841       179,352  

SolarWinds Corp.

    2,685       43,228  

Switch Inc., Class A

    7,713       194,985  

TTEC Holdings Inc.

    1,121       105,811  

Tucows Inc., Class A(a)(b)

    570       46,911  

Unisys Corp.(a)

    4,063       103,891  

Verra Mobility Corp.(a)

    8,109       120,662  
   

 

 

 
      3,834,467  
Leisure Products — 0.4%            

Acushnet Holdings Corp.

    2,100       106,974  

American Outdoor Brands Inc.(a)

    825       18,793  

AMMO Inc.(a)(b)

    4,888       29,523  

Callaway Golf Co.(a)

    7,055       190,838  

Clarus Corp.

    1,460       40,267  

Genius Brands International Inc.(a)(b)

    18,240       25,353  

Hayward Holdings Inc.(a)(b)

    2,425       56,236  

Johnson Outdoors Inc., Class A

    450       47,781  

Latham Group Inc.(a)

    1,284       19,774  

Malibu Boats Inc., Class A(a)

    1,267       89,463  

MasterCraft Boat Holdings Inc.(a)

    1,109       29,699  

Nautilus Inc.(a)(b)

    1,964       20,092  

Smith & Wesson Brands Inc.

    2,882       61,963  

Sturm Ruger & Co. Inc.

    1,060       83,613  

Vista Outdoor Inc.(a)

    3,500       146,440  
   

 

 

 
      966,809  
Life Sciences Tools & Services — 0.9%            

Adaptive Biotechnologies Corp.(a)

    6,537       218,401  

Berkeley Lights Inc.(a)

    2,525       58,706  

BioNano Genomics Inc.(a)(b)

    16,918       85,943  

ChromaDex Corp.(a)

    3,252       20,130  

Codexis Inc.(a)

    3,595       124,998  

Fluidigm Corp.(a)(b)

    4,211       21,687  

Maravai LifeSciences Holdings Inc., Class A(a)

    6,538       276,492  

Medpace Holdings Inc.(a)

    1,730       391,932  

NanoString Technologies Inc.(a)(b)

    2,753       132,970  

NeoGenomics Inc.(a)

    7,357       338,422  

Pacific Biosciences of California Inc.(a)

    11,964       316,807  

Personalis Inc.(a)

    2,204       43,242  

Quanterix Corp.(a)

    2,035       102,991  

Seer Inc., Class A(a)(b)

    2,119       78,234  
   

 

 

 
          2,210,955  
Machinery — 3.4%            

AgEagle Aerial Systems Inc.(a)

    4,068       11,675  

Agrify Corp.(a)

    1,067       17,072  

Alamo Group Inc.

    597       90,266  

Albany International Corp., Class A

    1,939       156,380  

Allison Transmission Holdings Inc.

    6,350       211,836  

Altra Industrial Motion Corp.

    3,891       202,916  

Astec Industries Inc.

    1,381       73,718  

Barnes Group Inc.

    2,835       118,900  

Blue Bird Corp.(a)(b)

    988       19,375  
Security   Shares     Value  
Machinery (continued)            

Chart Industries Inc.(a)(b)

    2,138     $ 379,538  

CIRCOR International Inc.(a)

    1,249       35,646  

Colfax Corp.(a)

    7,755       400,313  

Columbus McKinnon Corp./NY

    1,740       82,250  

Commercial Vehicle Group Inc.(a)

    1,800       18,072  

Crane Co.

    2,992       309,014  

Desktop Metal Inc., Class A(a)

    8,834       61,750  

Douglas Dynamics Inc.

    1,408       59,558  

Energy Recovery Inc.(a)

    2,315       47,041  

Enerpac Tool Group Corp.

    3,624       75,705  

EnPro Industries Inc.

    1,244       111,537  

ESCO Technologies Inc.

    1,583       133,859  

Evoqua Water Technologies Corp.(a)

    7,209       301,552  

ExOne Co. (The)(a)

    1,028       23,665  

Federal Signal Corp.

    3,646       156,085  

Flowserve Corp.

    7,827       263,144  

Franklin Electric Co. Inc.

    2,342       202,302  

Gates Industrial Corp. PLC(a)

    5,800       95,352  

Gorman-Rupp Co. (The)

    1,318       56,041  

Greenbrier Companies Inc. (The)

    1,947       79,866  

Helios Technologies Inc.

    1,928       175,544  

Hillenbrand Inc.

    4,400       200,024  

Hydrofarm Holdings Group Inc.(a)(b)

    2,141       70,589  

Hyliion Holdings Corp.(a)(b)

    6,835       55,295  

Hyster-Yale Materials Handling Inc.

    578       27,767  

Ideanomics Inc.(a)(b)

    23,008       45,556  

John Bean Technologies Corp.

    1,902       281,021  

Kadant Inc.

    696       154,596  

Kennametal Inc.

    5,020       199,545  

Lindsay Corp.

    655       95,414  

Lion Electric Co. (The)(a)

    5,936       84,588  

Luxfer Holdings PLC

    1,667       33,523  

Manitowoc Co. Inc. (The)(a)

    2,121       45,453  

Meritor Inc.(a)

    4,222       102,763  

Miller Industries Inc./TN

    667       24,105  

Mueller Industries Inc.

    3,425       180,292  

Mueller Water Products Inc., Class A

    9,511       156,076  

Nikola Corp.(a)(b)

    12,223       144,231  

Omega Flex Inc.

    182       26,346  

Proto Labs Inc.(a)

    1,674       100,122  

RBC Bearings Inc.(a)

    1,706       399,085  

REV Group Inc.

    2,021       30,537  

Shyft Group Inc. (The)

    1,933       79,659  

SPX Corp.(a)

    2,728       158,470  

SPX FLOW Inc.

    2,500       186,775  

Standex International Corp.

    738       82,117  

Tennant Co.

    1,109       88,121  

Terex Corp.

    4,200       188,160  

Timken Co. (The)

    4,167       295,649  

Titan International Inc.(a)

    3,203       23,126  

Trinity Industries Inc.

    5,058       141,877  

Wabash National Corp.

    3,025       46,978  

Watts Water Technologies Inc., Class A

    1,655       314,483  

Welbilt Inc.(a)

    7,771       183,862  
   

 

 

 
          8,216,177  
Marine — 0.2%            

Eagle Bulk Shipping Inc.(a)

    792       34,095  

Genco Shipping & Trading Ltd.

    2,142       36,778  

Kirby Corp.(a)

    3,629       190,196  
 

 

 

54  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Marine (continued)            

Matson Inc.

    2,631     $ 219,110  
   

 

 

 
      480,179  
Media — 1.0%            

Advantage Solutions Inc.(a)(b)

    6,012       51,342  

AMC Networks Inc., Class A(a)(b)

    1,754       69,792  

Boston Omaha Corp., Class A(a)

    1,011       35,840  

Cardlytics Inc.(a)(b)

    1,989       156,455  

Clear Channel Outdoor Holdings Inc.(a)

    28,554       82,807  

comScore Inc.(a)

    3,875       15,151  

Entercom Communications Corp.(a)

    7,065       22,820  

EW Scripps Co. (The), Class A

    3,472       64,579  

Fluent Inc.(a)

    2,589       6,162  

Gannett Co. Inc.(a)

    8,710       50,518  

Gray Television Inc.

    5,346       125,310  

Iheartmedia Inc., Class A(a)

    6,511       126,183  

John Wiley & Sons Inc., Class A

    2,611       141,438  

Loral Space & Communications Inc.

    770       38,361  

Magnite Inc.(a)

    6,869       185,669  

Meredith Corp.(a)

    2,483       144,610  

National CineMedia Inc.

    3,514       11,175  

Nexstar Media Group Inc., Class A

    2,510       376,324  

PubMatic Inc., Class A(a)

    1,207       34,496  

Scholastic Corp.

    1,846       66,807  

Sinclair Broadcast Group Inc., Class A

    2,986       78,024  

TechTarget Inc.(a)

    1,549       146,086  

TEGNA Inc.

    13,278       261,046  

WideOpenWest Inc.(a)

    3,162       60,236  
   

 

 

 
          2,351,231  
Metals & Mining — 1.2%            

Alcoa Corp.

    11,244       516,662  

Allegheny Technologies Inc.(a)

    7,673       123,535  

Alpha Metallurgical Resources Inc.(a)

    1,035       63,953  

Arconic Corp.(a)

    6,555       192,848  

Carpenter Technology Corp.

    2,901       89,583  

Century Aluminum Co.(a)

    3,046       40,238  

Coeur Mining Inc.(a)

    15,480       97,988  

Commercial Metals Co.

    7,240       232,983  

Compass Minerals International Inc.

    2,033       133,365  

Comstock Mining Inc.(a)

    2,141       4,774  

Gatos Silver Inc.(a)

    2,766       33,468  

Gold Resource Corp.

    4,990       9,182  

Haynes International Inc.

    808       32,425  

Hecla Mining Co.

    32,246       186,382  

Kaiser Aluminum Corp.

    951       92,380  

Materion Corp.

    1,221       88,132  

McEwen Mining Inc.(a)(b)

    22,594       24,853  

MP Materials Corp.(a)(b)

    4,480       151,648  

Ryerson Holding Corp.

    941       24,805  

Schnitzer Steel Industries Inc., Class A

    1,531       82,368  

SunCoke Energy Inc.

    5,249       37,898  

TimkenSteel Corp.(a)(b)

    2,434       33,954  

United States Steel Corp.

    16,219       428,019  

Warrior Met Coal Inc.

    3,074       73,684  

Worthington Industries Inc.

    1,971       107,065  
   

 

 

 
      2,902,192  
Mortgage Real Estate Investment — 1.1%            

AFC Gamma Inc.

    782       18,346  

AG Mortgage Investment Trust Inc.

    1,029       11,906  

Apollo Commercial Real Estate Finance Inc.

    8,086       122,422  
Security   Shares     Value  
Mortgage Real Estate Investment (continued)            

Arbor Realty Trust Inc.

    8,658     $ 174,112  

Ares Commercial Real Estate Corp.

    2,848       44,486  

ARMOUR Residential REIT Inc.

    4,895       51,495  

Blackstone Mortgage Trust Inc., Class A

    9,485       312,056  

BrightSpire Capital Inc.

    5,656       55,485  

Broadmark Realty Capital Inc.

    7,724       79,712  

Cherry Hill Mortgage Investment Corp.

    930       8,482  

Chimera Investment Corp.

    14,663       228,889  

Dynex Capital Inc.

    1,886       33,005  

Ellington Financial Inc.

    2,857       51,940  

Franklin BSP Realty Trust Inc.(a)

    1,982       32,525  

Granite Point Mortgage Trust Inc.

    3,189       42,733  

Hannon Armstrong Sustainable Infrastructure Capital Inc.

    4,723       285,269  

Invesco Mortgage Capital Inc.

    17,201       54,011  

KKR Real Estate Finance Trust Inc.

    2,373       51,518  

Ladder Capital Corp.

    6,795       81,540  

MFA Financial Inc.

    23,832       107,482  

New Residential Investment Corp.

    27,966       317,694  

New York Mortgage Trust Inc.

    23,056       101,216  

Orchid Island Capital Inc.

    7,455       36,977  

PennyMac Mortgage Investment Trust

    5,900       118,885  

Ready Capital Corp.

    3,486       53,928  

Redwood Trust Inc.

    6,850       92,886  

TPG RE Finance Trust Inc.

    3,584       46,843  

Two Harbors Investment Corp.

    20,701       132,900  

Western Asset Mortgage Capital Corp.

    4,098       10,327  
   

 

 

 
          2,759,070  
Multi-Utilities — 0.4%            

Avista Corp.

    4,008       159,559  

Black Hills Corp.

    3,780       250,917  

MDU Resources Group Inc.

    12,206       375,090  

NorthWestern Corp.

    3,120       177,403  

Unitil Corp.

    919       38,368  
   

 

 

 
      1,001,337  
Multiline Retail — 0.4%            

Big Lots Inc.

    2,090       92,482  

Dillard’s Inc., Class A

    268       61,946  

Franchise Group Inc.

    1,633       60,094  

Macy’s Inc.

    16,168       427,967  

Nordstrom Inc.(a)

    6,688       192,146  

Ollie’s Bargain Outlet Holdings Inc.(a)

    3,648       246,824  
   

 

 

 
      1,081,459  
Oil, Gas & Consumable Fuels — 3.1%            

Aemetis Inc.(a)

    1,790       35,621  

Alto Ingredients Inc.(a)(b)

    4,366       23,227  

Altus Midstream Co., Class A

    169       10,448  

Antero Midstream Corp.

    19,504       207,523  

Antero Resources Corp.(a)

    17,246       342,678  

Arch Resources Inc.(a)

    915       83,338  

Berry Corp.

    4,064       39,055  

Brigham Minerals Inc., Class A

    2,737       63,444  

California Resources Corp.(a)

    4,916       226,775  

Callon Petroleum Co.(a)

    2,363       122,238  

Centennial Resource Development Inc./DE, Class A(a)

    10,976       79,027  

Centrus Energy Corp., Class A(a)(b)

    620       35,135  

Chesapeake Energy Corp.

    5,867       373,963  

Civitas Resources Inc.

    1,845       103,578  

Clean Energy Fuels Corp.(a)

    10,227       94,293  

CNX Resources Corp.(a)

    13,016       190,164  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  55


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)  

Comstock Resources Inc.(a)

    5,400     $ 53,298  

CONSOL Energy Inc.(a)

    1,952       53,700  

Contango Oil & Gas Co.(a)

    8,067       33,317  

CVR Energy Inc.

    2,158       41,369  

Delek U.S. Holdings Inc.(a)

    4,644       90,326  

Denbury Inc.(a)

    3,010       254,827  

Dorian LPG Ltd.

    1,687       20,446  

Earthstone Energy Inc., Class A(a)(b)

    1,510       15,326  

EQT Corp.(a)

    18,214       362,641  

Equitrans Midstream Corp.

    24,399       251,554  

Extraction Oil & Gas Inc.(a)

    945       62,965  

Gevo Inc.(a)(b)

    12,121       87,635  

Gran Tierra Energy Inc.(a)(b)

    22,754       20,909  

Green Plains Inc.(a)

    1,656       62,845  

HollyFrontier Corp.

    9,247       312,549  

International Seaways Inc.

    2,549       44,735  

Kosmos Energy Ltd.(a)

    24,636       88,690  

Laredo Petroleum Inc.(a)

    810       61,074  

Magnolia Oil & Gas Corp., Class A

    8,504       177,564  

Matador Resources Co.

    6,652       278,386  

Murphy Oil Corp.

    8,797       244,820  

Northern Oil and Gas Inc.

    3,265       75,617  

Oasis Petroleum Inc.

    1,135       136,881  

Ovintiv Inc.

    15,743       590,677  

Par Pacific Holdings Inc.(a)

    3,022       46,720  

PBF Energy Inc., Class A(a)

    5,768       84,270  

PDC Energy Inc.

    5,948       311,140  

Peabody Energy Corp.(a)

    5,063       60,199  

Penn Virginia Corp.(a)

    879       29,042  

Range Resources Corp.(a)

    15,656       365,098  

Renewable Energy Group Inc.(a)

    3,018       193,152  

REX American Resources Corp.(a)

    355       31,222  

Ring Energy Inc.(a)

    5,125       19,270  

SandRidge Energy Inc.(a)(b)

    1,842       23,578  

SM Energy Co.

    7,269       249,472  

Southwestern Energy Co.(a)(b)

    40,822       199,211  

Talos Energy Inc.(a)

    2,457       31,867  

Tellurian Inc.(a)(b)

    22,986       90,105  

Uranium Energy Corp.(a)

    13,802       51,343  

Vine Energy Inc., Class A(a)

    1,493       25,486  

W&T Offshore Inc.(a)

    5,893       24,220  

Whiting Petroleum Corp.(a)

    2,347       152,860  

World Fuel Services Corp.

    3,953       120,685  
   

 

 

 
          7,561,598  
Paper & Forest Products — 0.3%  

Clearwater Paper Corp.(a)

    1,002       41,914  

Domtar Corp.(a)

    3,009       164,261  

Glatfelter Corp.

    2,689       44,180  

Louisiana-Pacific Corp.

    5,766       339,790  

Mercer International Inc.

    2,312       24,900  

Neenah Inc.

    1,051       53,118  

Resolute Forest Products Inc.

    2,876       33,822  

Schweitzer-Mauduit International Inc.

    1,902       66,266  

Verso Corp., Class A

    1,522       33,606  
   

 

 

 
      801,857  
Personal Products — 0.4%  

BellRing Brands Inc., Class A(a)

    2,261       60,640  

Edgewell Personal Care Co.

    3,277       114,662  

elf Beauty Inc.(a)

    2,895       93,538  
Security   Shares     Value  
Personal Products (continued)  

Herbalife Nutrition Ltd.(a)(b)

    6,096     $ 282,854  

Inter Parfums Inc.

    1,083       100,048  

LifeMD Inc.(a)(b)

    1,060       5,289  

Medifast Inc.

    705       138,370  

Nu Skin Enterprises Inc., Class A

    3,034       121,815  

USANA Health Sciences Inc.(a)

    735       71,339  

Veru Inc.(a)

    3,504       28,628  
   

 

 

 
          1,017,183  
Pharmaceuticals — 1.3%  

9 Meters Biopharma Inc.(a)

    14,275       18,129  

AcelRx Pharmaceuticals Inc.(a)

    7,151       6,293  

Aclaris Therapeutics Inc.(a)

    2,692       46,706  

Aerie Pharmaceuticals Inc.(a)(b)

    2,890       30,721  

Amneal Pharmaceuticals Inc.(a)

    6,126       33,632  

Amphastar Pharmaceuticals Inc.(a)

    2,356       44,010  

Ampio Pharmaceuticals Inc.(a)

    11,886       18,542  

ANI Pharmaceuticals Inc.(a)

    636       23,774  

Antares Pharma Inc.(a)

    9,974       37,303  

Aquestive Therapeutics Inc.(a)(b)

    1,611       8,281  

Arvinas Inc.(a)

    2,603       225,368  

Atea Pharmaceuticals Inc.(a)

    3,204       37,295  

Athira Pharma Inc.(a)

    2,087       27,277  

Axsome Therapeutics Inc.(a)

    1,711       65,873  

BioDelivery Sciences International Inc.(a)

    6,271       25,586  

Cara Therapeutics Inc.(a)

    2,577       43,371  

Cassava Sciences Inc.(a)(b)

    2,246       96,870  

Citius Pharmaceuticals Inc.(a)

    7,171       13,410  

Collegium Pharmaceutical Inc.(a)

    2,193       43,049  

Corcept Therapeutics Inc.(a)

    6,323       113,814  

CorMedix Inc.(a)

    2,613       12,699  

Cymabay Therapeutics Inc.(a)

    3,750       14,625  

Durect Corp.(a)

    15,272       19,548  

Edgewise Therapeutics Inc.(a)

    752       12,408  

Endo International PLC(a)

    13,746       58,420  

Esperion Therapeutics Inc.(a)(b)

    1,828       16,342  

Eton Pharmaceuticals Inc.(a)

    1,207       6,952  

Evolus Inc.(a)

    1,955       15,288  

EyePoint Pharmaceuticals Inc.(a)

    1,340       15,370  

Fulcrum Therapeutics Inc.(a)

    1,724       38,169  

Hepion Pharmaceuticals Inc.(a)(b)

    4,577       6,545  

Ikena Oncology Inc.(a)(b)

    560       6,020  

Innoviva Inc.(a)

    3,852       67,217  

Intra-Cellular Therapies Inc.(a)

    4,477       192,824  

Iterum Therapeutics PLC(a)(b)

    12,241       6,537  

Jaguar Health Inc.(a)

    2,935       6,252  

Kala Pharmaceuticals Inc.(a)(b)

    2,706       4,708  

Kaleido Biosciences Inc.(a)

    1,251       5,379  

KemPharm Inc.(a)(b)

    1,890       17,955  

Lannett Co. Inc.(a)(b)

    2,438       6,656  

Marinus Pharmaceuticals Inc.(a)

    2,074       23,851  

Nektar Therapeutics(a)

    11,016       167,003  

NGM Biopharmaceuticals Inc.(a)

    2,248       41,521  

Novan Inc.(a)(b)

    1,000       6,670  

Nuvation Bio Inc.(a)(b)

    6,990       64,098  

Ocular Therapeutix Inc.(a)

    4,749       31,533  

Odonate Therapeutics Inc.(a)

    1,942       5,962  

Omeros Corp.(a)

    3,836       24,052  

Optinose Inc.(a)

    2,105       5,578  

Oramed Pharmaceuticals Inc.(a)

    1,950       45,650  

Pacira BioSciences Inc.(a)

    2,708       141,574  
 

 

 

56  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Pharmaceuticals (continued)  

Paratek Pharmaceuticals Inc.(a)

    2,665     $ 13,378  

Perrigo Co. PLC

    7,974       360,026  

Phathom Pharmaceuticals Inc.(a)

    861       20,259  

Phibro Animal Health Corp., Class A

    1,335       29,290  

Pliant Therapeutics Inc.(a)

    1,361       21,681  

Prestige Consumer Healthcare Inc.(a)

    3,046       182,730  

Provention Bio Inc.(a)

    3,286       20,570  

Rain Therapeutics Inc.(a)(b)

    450       7,011  

Reata Pharmaceuticals Inc., Class A(a)(b)

    1,624       155,920  

Relmada Therapeutics Inc.(a)

    942       22,109  

Revance Therapeutics Inc.(a)(b)

    4,058       55,797  

SCYNEXIS Inc.(a)

    1,152       5,772  

Seelos Therapeutics Inc.(a)

    6,331       13,675  

SIGA Technologies Inc.(a)(b)

    2,501       18,032  

Supernus Pharmaceuticals Inc.(a)

    3,234       96,535  

Tarsus Pharmaceuticals Inc.(a)

    407       11,298  

Terns Pharmaceuticals Inc.(a)

    295       2,803  

TFF Pharmaceuticals Inc.(a)

    1,294       9,977  

TherapeuticsMD Inc.(a)

    23,245       16,922  

Theravance Biopharma Inc.(a)

    3,261       25,338  

VYNE Therapeutics Inc.(a)(b)

    3,762       5,041  

WaVe Life Sciences Ltd.(a)

    2,371       10,883  

Xeris Biopharma Holdings Inc.(a)(b)

    6,324       11,763  

Zogenix Inc.(a)

    3,164       48,504  

Zynerba Pharmaceuticals Inc.(a)

    2,715       10,398  
   

 

 

 
          3,222,422  
Professional Services — 1.9%  

Acacia Research Corp.(a)(b)

    3,132       17,946  

ASGN Inc.(a)

    3,196       382,433  

Barrett Business Services Inc.

    474       38,868  

CACI International Inc., Class A(a)(b)

    1,424       409,599  

CBIZ Inc.(a)

    3,176       116,591  

CRA International Inc.

    456       50,078  

Exponent Inc.

    3,147       361,276  

Forrester Research Inc.(a)

    686       36,529  

Franklin Covey Co.(a)

    750       31,688  

FTI Consulting Inc.(a)(b)

    2,060       296,475  

Heidrick & Struggles International Inc.

    1,184       55,506  

Huron Consulting Group Inc.(a)

    1,354       67,917  

ICF International Inc.

    1,033       103,806  

Insperity Inc.

    2,177       272,125  

KBR Inc.

    8,510       361,164  

Kelly Services Inc., Class A, NVS

    2,228       40,171  

Kforce Inc.

    1,255       81,274  

Korn Ferry

    3,370       260,198  

ManpowerGroup Inc.

    3,284       317,399  

ManTech International Corp./VA, Class A

    1,674       144,332  

Resources Connection Inc.

    1,866       32,487  

Science Applications International Corp.

    3,497       313,961  

Skillsoft Corp.(a)(b)

    4,061       49,260  

TriNet Group Inc.(a)

    2,431       246,139  

TrueBlue Inc.(a)

    2,206       61,437  

Upwork Inc.(a)

    7,205       339,500  

Willdan Group Inc.(a)(b)

    743       24,838  
   

 

 

 
      4,512,997  
Real Estate Management & Development — 0.7%  

Cushman & Wakefield PLC(a)

    8,972       164,995  

eXp World Holdings Inc.

    3,959       204,284  

Fathom Holdings Inc.(a)

    308       7,789  
Security   Shares     Value  
Real Estate Management & Development (continued)  

Forestar Group Inc.(a)

    1,075     $ 21,038  

Howard Hughes Corp. (The)(a)

    2,494       217,302  

Kennedy-Wilson Holdings Inc.

    7,342       164,241  

Marcus & Millichap Inc.(a)

    1,484       69,896  

Newmark Group Inc., Class A

    9,929       147,744  

RE/MAX Holdings Inc., Class A

    1,176       37,409  

Realogy Holdings Corp.(a)

    7,037       121,881  

Redfin Corp.(a)

    6,274       322,107  

RMR Group Inc. (The), Class A

    964       33,538  

St Joe Co. (The)

    1,972       92,723  
   

 

 

 
      1,604,947  
Road & Rail — 0.9%  

ArcBest Corp.

    1,564       140,525  

Avis Budget Group Inc.(a)(b)

    2,854       494,627  

Covenant Logistics Group Inc., Class A(a)

    655       18,602  

Daseke Inc.(a)

    3,606       34,077  

Heartland Express Inc.

    2,838       46,345  

HyreCar Inc.(a)

    1,117       7,584  

Landstar System Inc.

    2,298       404,011  

Marten Transport Ltd.

    3,611       60,051  

Ryder System Inc.

    3,283       278,891  

Saia Inc.(a)

    1,581       494,284  

Schneider National Inc., Class B

    2,102       52,424  

U.S. Xpress Enterprises Inc., Class A(a)

    1,284       9,720  

Werner Enterprises Inc.

    3,712       168,228  

Yellow Corp.(a)

    2,118       18,532  
   

 

 

 
          2,227,901  
Semiconductors & Semiconductor Equipment — 2.7%  

ACM Research Inc., Class A(a)

    735       78,035  

Allegro MicroSystems Inc.(a)

    3,291       109,788  

Alpha & Omega Semiconductor Ltd.(a)

    1,248       43,243  

Ambarella Inc.(a)

    2,192       407,339  

Amkor Technology Inc.

    6,001       131,542  

Atomera Inc.(a)

    1,246       26,926  

Axcelis Technologies Inc.(a)

    2,023       111,123  

AXT Inc.(a)

    2,288       18,693  

CEVA Inc.(a)

    1,388       63,307  

Cirrus Logic Inc.(a)

    3,442       278,148  

CMC Materials Inc.

    1,755       225,289  

Cohu Inc.(a)

    2,943       94,294  

CyberOptics Corp.(a)

    472       19,711  

Diodes Inc.(a)

    2,706       260,020  

DSP Group Inc.(a)

    1,355       29,769  

eMagin Corp.(a)

    4,178       10,027  

FormFactor Inc.(a)

    4,668       185,693  

Ichor Holdings Ltd.(a)

    1,719       75,155  

Impinj Inc.(a)(b)

    1,149       80,108  

Kopin Corp.(a)(b)

    4,695       24,602  

Kulicke & Soffa Industries Inc.

    3,757       214,149  

Lattice Semiconductor Corp.(a)

    8,230       571,491  

MACOM Technology Solutions Holdings Inc., Class H(a)(b)

    2,892       201,919  

Magnachip Semiconductor Corp.(a)

    2,778       52,671  

MaxLinear Inc.(a)

    4,224       266,112  

Meta Materials Inc.(a)(b)

    14,191       66,698  

NeoPhotonics Corp.(a)

    3,309       33,487  

NVE Corp.

    304       20,663  

Onto Innovation Inc.(a)

    2,987       236,600  

PDF Solutions Inc.(a)

    1,720       40,472  

Photronics Inc.(a)

    3,712       48,219  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  57


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Pixelworks Inc.(a)

    2,824     $ 11,550  

Power Integrations Inc.

    3,649       376,613  

Rambus Inc.(a)(b)

    6,656       154,885  

Semtech Corp.(a)

    3,877       329,661  

Silicon Laboratories Inc.(a)

    2,439       460,386  

SiTime Corp.(a)

    767       203,171  

SkyWater Technology Inc.(a)(b)

    378       12,943  

SMART Global Holdings Inc.(a)

    1,413       75,539  

SunPower Corp.(a)

    5,057       170,219  

Synaptics Inc.(a)

    2,134       415,212  

Ultra Clean Holdings Inc.(a)

    2,676       132,649  

Veeco Instruments Inc.(a)

    3,079       74,789  
   

 

 

 
          6,442,910  
Software — 6.3%  

8x8 Inc.(a)

    6,744       152,819  

A10 Networks Inc.(a)

    3,606       67,396  

ACI Worldwide Inc.(a)

    7,029       215,650  

Agilysys Inc.(a)

    1,189       56,739  

Alarm.com Holdings Inc.(a)

    2,759       232,473  

Altair Engineering Inc., Class A(a)(b)

    2,799       217,734  

Alteryx Inc., Class A(a)(b)

    3,548       259,678  

American Software Inc./GA, Class A

    1,894       54,793  

Appfolio Inc., Class A(a)(b)

    1,136       149,600  

Appian Corp.(a)

    2,383       236,894  

Asana Inc., Class A(a)

    4,710       639,618  

Avaya Holdings Corp.(a)

    5,063       94,273  

Benefitfocus Inc.(a)

    1,995       21,865  

Blackbaud Inc.(a)

    2,533       179,868  

Blackline Inc.(a)

    3,191       404,842  

Bottomline Technologies DE Inc.(a)

    2,381       110,240  

Box Inc., Class A(a)(b)

    9,213       237,972  

BTRS Holdings Inc.(a)

    4,380       37,624  

C3.ai Inc., Class A(a)(b)

    4,207       189,820  

CDK Global Inc.

    7,417       322,788  

Cerence Inc.(a)(b)

    2,286       240,327  

ChannelAdvisor Corp.(a)

    1,803       45,995  

Cleanspark Inc.(a)

    2,064       41,817  

CommVault Systems Inc.(a)

    2,788       171,462  

Datto Holding Corp.(a)(b)

    1,596       38,144  

Digimarc Corp.(a)(b)

    749       37,847  

Digital Turbine Inc.(a)

    5,277       454,139  

Dolby Laboratories Inc., Class A

    3,968       350,573  

Domo Inc., Class B(a)

    1,717       151,697  

Duck Creek Technologies Inc.(a)

    4,507       141,971  

E2open Parent Holdings Inc.(a)

    10,406       130,075  

Ebix Inc.

    1,504       49,346  

eGain Corp.(a)

    1,288       13,292  

Envestnet Inc.(a)

    2,878       240,313  

Everbridge Inc.(a)(b)

    2,305       367,210  

Intelligent Systems Corp.(a)

    410       17,355  

InterDigital Inc.

    1,846       123,590  

Intrusion Inc.(a)

    915       3,605  

Jamf Holding Corp.(a)(b)

    3,261       155,387  

JFrog Ltd.(a)(b)

    2,615       85,484  

Kaleyra Inc.(a)(b)

    1,734       19,785  

KnowBe4 Inc., Class A(a)

    1,378       32,218  

LivePerson Inc.(a)(b)

    3,897       200,734  

MANDIANT Inc.(a)

    14,361       250,456  

Marathon Digital Holdings Inc.(a)(b)

    5,969       311,821  

McAfee Corp., Class A

    4,390       93,814  
Security   Shares     Value  
Software (continued)  

MicroStrategy Inc., Class A(a)

    468     $ 334,648  

Mimecast Ltd.(a)

    3,662       276,261  

Mitek Systems Inc.(a)

    2,725       51,312  

Model N Inc.(a)

    1,973       63,945  

Momentive Global Inc.(a)

    7,707       176,644  

nCino Inc.(a)

    3,355       243,774  

NCR Corp.(a)

    7,973       315,252  

New Relic Inc.(a)

    3,473       281,869  

Nutanix Inc., Class A(a)

    12,275       421,155  

Olo Inc., Class A(a)(b)

    1,675       45,594  

ON24 Inc.(a)

    469       8,972  

OneSpan Inc.(a)

    2,144       43,780  

Pagerduty Inc.(a)(b)

    4,483       187,165  

Ping Identity Holding Corp.(a)

    2,974       84,253  

Progress Software Corp.

    2,641       135,774  

PROS Holdings Inc.(a)

    2,439       73,170  

Q2 Holdings Inc.(a)

    3,366       264,096  

QAD Inc., Class A

    708       62,049  

Qualtrics International Inc., Class A(a)

    3,803       176,155  

Qualys Inc.(a)

    2,027       252,321  

Rapid7 Inc.(a)(b)

    3,365       433,244  

Rekor Systems Inc.(a)(b)

    1,879       25,554  

Rimini Street Inc.(a)

    1,809       18,832  

Riot Blockchain Inc.(a)

    4,972       135,338  

SailPoint Technologies Holdings Inc.(a)

    5,541       265,857  

SEMrush Holdings Inc., Class A(a)

    659       16,073  

ShotSpotter Inc.(a)

    472       18,366  

Smith Micro Software Inc.(a)

    3,018       17,203  

Sprout Social Inc., Class A(a)

    2,717       346,907  

SPS Commerce Inc.(a)

    2,174       332,035  

Sumo Logic Inc.(a)

    5,191       89,649  

Synchronoss Technologies Inc.(a)

    2,492       6,579  

Telos Corp.(a)(b)

    3,180       82,394  

Tenable Holdings Inc.(a)

    5,442       289,787  

Teradata Corp.(a)

    6,586       372,504  

Upland Software Inc.(a)(b)

    1,622       54,126  

Varonis Systems Inc.(a)(b)

    6,422       415,760  

Verint Systems Inc.(a)(b)

    3,897       181,600  

Veritone Inc.(a)

    1,737       51,954  

Vertex Inc., Class A(a)(b)

    1,692       35,227  

Viant Technology Inc., Class A(a)

    764       8,977  

VirnetX Holding Corp.(a)

    4,002       15,408  

Vonage Holdings Corp.(a)

    15,087       243,202  

Workiva Inc.(a)

    2,604       389,428  

Xperi Holding Corp.

    6,315       113,165  

Yext Inc.(a)

    7,006       88,206  

Zix Corp.(a)

    3,360       28,459  

Zuora Inc., Class A(a)

    6,779       148,189  
   

 

 

 
        15,373,355  
Specialty Retail — 2.4%  

Aaron’s Co. Inc. (The)

    1,998       46,733  

Abercrombie & Fitch Co., Class A(a)

    3,711       146,733  

Academy Sports & Outdoors Inc.(a)

    5,256       224,852  

American Eagle Outfitters Inc.

    9,178       217,886  

America’s Car-Mart Inc./TX(a)(b)

    394       47,079  

Arko Corp.(a)

    3,791       36,356  

Asbury Automotive Group Inc.(a)(b)

    1,173       229,568  

Barnes & Noble Education Inc.(a)

    2,357       24,466  

Bed Bath & Beyond Inc.(a)

    6,291       88,326  

Big 5 Sporting Goods Corp.

    1,262       30,515  
 

 

 

58  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialty Retail (continued)  

Boot Barn Holdings Inc.(a)

    1,788     $ 186,828  

Buckle Inc. (The)

    1,780       74,084  

Caleres Inc.

    2,350       54,191  

Camping World Holdings Inc., Class A

    2,536       94,466  

CarLotz Inc.(a)

    4,296       15,466  

Cato Corp. (The), Class A

    1,179       20,786  

Chico’s FAS Inc.(a)

    7,456       40,710  

Children’s Place Inc. (The)(a)

    844       69,959  

Citi Trends Inc.(a)

    594       45,952  

Conn’s Inc.(a)

    1,156       25,744  

Container Store Group Inc. (The)(a)

    2,019       22,330  

Designer Brands Inc. , Class A(a)

    3,811       51,563  

Dick’s Sporting Goods Inc.

    3,958       491,623  

Express Inc.(a)

    4,127       15,848  

Foot Locker Inc.

    5,409       257,847  

Genesco Inc.(a)(b)

    858       51,986  

Group 1 Automotive Inc.

    1,096       197,061  

GrowGeneration Corp.(a)(b)

    3,160       66,613  

Guess? Inc.

    2,418       50,077  

Haverty Furniture Companies Inc.

    931       26,720  

Hibbett Inc.

    909       70,393  

JOANN Inc.

    744       7,604  

Kirkland’s Inc.(a)

    863       19,400  

Lazydays Holdings Inc.(a)(b)

    496       10,461  

Leslie’s Inc.(a)(b)

    7,830       161,924  

LMP Automotive Holdings Inc.(a)(b)

    363       5,162  

Lumber Liquidators Holdings Inc.(a)

    1,755       31,730  

MarineMax Inc.(a)

    1,313       68,000  

Monro Inc.

    2,031       125,434  

Murphy USA Inc.

    1,428       232,693  

National Vision Holdings Inc.(a)(b)

    4,888       301,296  

ODP Corp. (The)(a)

    2,916       126,263  

OneWater Marine Inc., Class A

    584       25,895  

Party City Holdco Inc.(a)(b)

    6,760       49,145  

Penske Automotive Group Inc.

    1,911       202,661  

Petco Health & Wellness Co. Inc.(a)(b)

    4,900       121,177  

Rent-A-Center Inc./TX

    3,673       195,624  

Sally Beauty Holdings Inc.(a)(b)

    6,806       103,859  

Shift Technologies Inc.(a)

    3,799       25,947  

Shoe Carnival Inc.

    1,074       36,376  

Signet Jewelers Ltd.

    3,190       284,484  

Sleep Number Corp.(a)

    1,424       125,796  

Sonic Automotive Inc., Class A

    1,280       63,270  

Sportsman’s Warehouse Holdings Inc.(a)

    2,606       44,980  

Tilly’s Inc., Class A

    1,567       21,750  

TravelCenters of America Inc.(a)

    734       39,570  

Urban Outfitters Inc.(a)

    3,966       126,634  

Vroom Inc.(a)(b)

    7,661       146,555  

Winmark Corp.

    183       42,606  

Zumiez Inc.(a)

    1,362       55,433  
   

 

 

 
          5,824,490  
Technology Hardware, Storage & Peripherals — 0.5%  

3D Systems Corp.(a)

    7,546       212,495  

Avid Technology Inc.(a)

    2,172       62,206  

Boxlight Corp., Class A(a)(b)

    3,001       6,692  

Corsair Gaming Inc.(a)(b)

    2,012       49,193  

Diebold Nixdorf Inc.(a)(b)

    4,650       41,850  

Eastman Kodak Co.(a)

    3,836       26,047  

Immersion Corp.(a)

    1,448       11,570  

Pure Storage Inc., Class A(a)

    15,967       428,874  
Security   Shares     Value  
Technology Hardware, Storage & Peripherals (continued)  

Quantum Corp.(a)

    3,302     $ 18,855  

Super Micro Computer Inc.(a)

    2,695       95,376  

Turtle Beach Corp.(a)

    954       27,437  

Xerox Holdings Corp.

    8,418       149,840  
   

 

 

 
      1,130,435  
Textiles, Apparel & Luxury Goods — 1.3%  

Carter’s Inc.

    2,643       260,388  

Columbia Sportswear Co.

    2,087       216,714  

Crocs Inc.(a)

    3,773       609,151  

Fossil Group Inc.(a)

    2,871       33,935  

G-III Apparel Group Ltd.(a)

    2,669       76,494  

Hanesbrands Inc.

    20,949       356,971  

Kontoor Brands Inc.

    2,874       152,322  

Lakeland Industries Inc.(a)

    499       10,434  

Levi Strauss & Co., Class A

    5,498       143,938  

Movado Group Inc.

    1,022       34,033  

Oxford Industries Inc.

    974       90,309  

PLBY Group Inc.(a)

    1,267       35,577  

Ralph Lauren Corp.

    2,921       371,464  

Rocky Brands Inc.

    426       23,238  

Skechers U.S.A. Inc., Class A(a)

    8,104       374,486  

Steven Madden Ltd.

    4,665       210,391  

Unifi Inc.(a)

    839       20,153  

Vera Bradley Inc.(a)

    1,495       14,666  

Wolverine World Wide Inc.

    4,981       165,220  
   

 

 

 
      3,199,884  
Thrifts & Mortgage Finance — 1.5%  

Axos Financial Inc.(a)

    3,208       170,024  

Capitol Federal Financial Inc.

    7,928       96,167  

Columbia Financial Inc.(a)

    2,636       49,082  

Essent Group Ltd.

    6,749       323,952  

Federal Agricultural Mortgage Corp., Class C, NVS

    567       71,493  

Flagstar Bancorp. Inc.

    3,022       142,608  

Kearny Financial Corp./MD

    5,406       72,548  

loanDepot Inc., Class A

    986       6,468  

Merchants Bancorp./IN

    1,065       47,318  

Meridian Bancorp. Inc.

    3,503       81,270  

MGIC Investment Corp.

    20,650       333,704  

Mr Cooper Group Inc.(a)

    5,179       227,047  

New York Community Bancorp. Inc.

    28,383       352,801  

NMI Holdings Inc., Class A(a)

    5,312       128,975  

Northfield Bancorp. Inc.

    2,840       49,842  

Northwest Bancshares Inc.

    6,509       89,824  

Ocwen Financial Corp.(a)

    486       15,265  

PennyMac Financial Services Inc.

    2,046       126,975  

Premier Financial Corp.

    2,536       80,848  

Provident Financial Services Inc.

    4,581       113,425  

Radian Group Inc.

    11,226       267,965  

Rocket Companies Inc., Class A

    8,223       135,515  

TFS Financial Corp.

    3,073       59,801  

TrustCo Bank Corp. NY

    786       26,378  

UWM Holdings Corp.

    5,386       36,625  

Walker & Dunlop Inc.

    1,786       232,305  

Washington Federal Inc.

    4,445       157,175  

Waterstone Financial Inc.

    1,836       37,950  

WSFS Financial Corp.

    2,297       119,008  
   

 

 

 
          3,652,358  
Tobacco — 0.1%  

22nd Century Group Inc.(a)

    9,619       26,356  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  59


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Tobacco (continued)  

Turning Point Brands Inc.

    867     $ 33,093  

Universal Corp./VA

    1,466       68,902  

Vector Group Ltd.

    7,804       103,481  
   

 

 

 
      231,832  
Trading Companies & Distributors — 1.3%  

Air Lease Corp.

    6,475       259,324  

Applied Industrial Technologies Inc.

    2,342       228,298  

Beacon Roofing Supply Inc.(a)

    3,330       176,057  

BlueLinx Holdings Inc.(a)

    599       28,530  

Boise Cascade Co.

    2,364       133,850  

CAI International Inc.

    966       54,028  

Custom Truck One Source Inc.(a)

    3,005       27,195  

DXP Enterprises Inc./TX(a)

    1,145       37,739  

GATX Corp.

    2,119       200,987  

Global Industrial Co.

    960       38,957  

GMS Inc.(a)

    2,608       129,174  

H&E Equipment Services Inc.

    1,960       88,357  

Herc Holdings Inc.

    1,502       273,424  

McGrath RentCorp.

    1,478       106,623  

MRC Global Inc.(a)

    3,822       31,723  

MSC Industrial Direct Co. Inc., Class A

    2,822       237,246  

NOW Inc.(a)

    6,755       48,771  

Rush Enterprises Inc., Class A

    2,644       137,700  

Titan Machinery Inc.(a)

    1,188       33,763  

Triton International Ltd

    4,031       250,688  

Univar Solutions Inc.(a)

    10,183       260,481  

Veritiv Corp.(a)

    853       91,501  

WESCO International Inc.(a)

    2,683       347,609  
   

 

 

 
          3,222,025  
Water Utilities — 0.2%  

American States Water Co.

    2,219       201,574  

California Water Service Group

    3,071       186,962  

Middlesex Water Co.

    1,073       118,159  

SJW Group

    1,681       110,812  
   

 

 

 
      617,507  
Wireless Telecommunication Services — 0.1%  

Gogo Inc.(a)(b)

    4,025       65,446  
Security   Shares     Value  
Wireless Telecommunication Services (continued)  

Shenandoah Telecommunications Co.

    2,998     $ 82,865  

Telephone and Data Systems Inc.

    5,943       111,372  

U.S. Cellular Corp.(a)

    882       26,963  
   

 

 

 
      286,646  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $229,403,897)

       241,566,763  
   

 

 

 

Preferred Stocks

   
Semiconductors & Semiconductor Equipment — 0.0%  

Meta Materials Inc., Preference Shares, NVS(b)

    7,764       9,938  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $7,512)

      9,938  
   

 

 

 

Short-Term Investments

   

Money Market Funds — 9.7%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    23,041,338       23,052,859  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    490,000       490,000  
   

 

 

 
      23,542,859  
   

 

 

 

Total Short-Term Investments — 9.7%
(Cost: $23,541,043)

      23,542,859  
   

 

 

 

Total Investments in Securities — 109.4%
(Cost: $252,952,452)

      265,119,560  

Other Assets, Less Liabilities — (9.4)%

      (22,768,257
   

 

 

 

Net Assets — 100.0%

    $ 242,351,303  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

04/30/21

    

Purchases

at Cost

   

Proceeds

from Sales

    

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

10/31/21

    

Shares

Held at

10/31/21

     Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 13,795,424      $ 9,258,201 (a)    $      $ (1,718   $ 952      $ 23,052,859        23,041,338      $ 85,409 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    260,000        230,000 (a)                          490,000        490,000        13        
         

 

 

   

 

 

    

 

 

       

 

 

   

 

 

 
          $ (1,718   $ 952      $ 23,542,859         $ 85,422     $  
         

 

 

   

 

 

    

 

 

       

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

60  

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Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description   

Number of

Contracts

   

Expiration

Date

   

Notional

Amount

(000)

   

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

        

Russell 2000 E-Mini Index

     4       12/17/21     $ 459     $ 9,747  
        

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
    

Equity

Contracts

 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 9,747  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (9,225
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 8,662  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 451,228      

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1              Level 2              Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 241,566,763      $      $      $ 241,566,763  

Preferred Stocks

     9,938                      9,938  

Money Market Funds

     23,542,859                      23,542,859  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 265,119,560      $      $      $ 265,119,560  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 9,747      $      $      $ 9,747  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  61


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 1.3%            

Aerojet Rocketdyne Holdings Inc.

    9,358     $ 411,846  

Aerovironment Inc.(a)

    5,479       488,234  

BWX Technologies Inc.

    12,906       732,286  

Curtiss-Wright Corp.

    4,121       526,169  

Hexcel Corp.(a)

    19,835       1,125,438  

Kaman Corp.

    3,093       110,698  

Kratos Defense & Security Solutions Inc.(a)

    29,192       624,417  

Maxar Technologies Inc.

    5,886       156,273  

Mercury Systems Inc.(a)

    13,227       681,720  

National Presto Industries Inc.

    455       37,833  

PAE Inc.(a)

    7,520       74,598  

Spirit AeroSystems Holdings Inc., Class A

    9,572       395,228  

Virgin Galactic Holdings Inc.(a)(b)

    41,830       784,313  
   

 

 

 
      6,149,053  
Air Freight & Logistics — 0.2%            

Air Transport Services Group Inc.(a)(b)

    4,913       122,285  

Echo Global Logistics Inc.(a)

    3,001       144,738  

Forward Air Corp.

    2,932       294,842  

Hub Group Inc., Class A(a)

    3,769       296,130  
   

 

 

 
      857,995  
Airlines — 0.3%            

Allegiant Travel Co.(a)

    3,559       623,786  

Frontier Group Holdings Inc.(a)

    2,672       41,817  

SkyWest Inc.(a)

    6,272       269,884  

Spirit Airlines Inc.(a)

    13,089       285,994  

Sun Country Airlines Holdings Inc.(a)

    7,285       220,590  
   

 

 

 
      1,442,071  
Auto Components — 1.2%            

Dorman Products Inc.(a)

    6,746       704,148  

Fox Factory Holding Corp.(a)

    9,952       1,601,774  

Gentherm Inc.(a)(b)

    7,807       574,829  

LCI Industries

    3,331       465,141  

Luminar Technologies Inc.(a)(b)

    51,020       836,218  

Patrick Industries Inc.

    3,063       238,638  

Stoneridge Inc.(a)

    3,245       61,590  

Visteon Corp.(a)

    6,590       745,856  

XPEL Inc.(a)

    3,902       296,162  
   

 

 

 
          5,524,356  
Automobiles — 0.1%            

Arcimoto Inc.(a)(b)

    6,707       78,338  

Winnebago Industries Inc.

    4,165       281,929  

Workhorse Group Inc.(a)

    27,148       182,706  
   

 

 

 
      542,973  
Banks — 3.8%            

Allegiance Bancshares Inc.

    2,780       108,893  

Ameris Bancorp.

    10,594       555,020  

Atlantic Capital Bancshares Inc.(a)

    3,191       87,784  

Atlantic Union Bankshares Corp.

    9,165       328,748  

Banc of California Inc.

    4,401       89,472  

Bancorp. Inc. (The)(a)

    6,619       202,210  

Byline Bancorp Inc.

    2,748       70,788  

Camden National Corp.

    1,721       81,920  

Columbia Banking System Inc.

    7,178       244,985  

Community Bank System Inc.

    5,286       378,848  

ConnectOne Bancorp. Inc.

    4,920       165,952  

CrossFirst Bankshares Inc.(a)

    7,788       110,823  

Eastern Bankshares Inc.

    40,245       835,889  
Security   Shares     Value  
Banks (continued)            

FB Financial Corp.

    5,361     $ 243,014  

First BanCorp./Puerto Rico

    10,488       143,161  

First Bancshares Inc. (The)

    3,131       126,023  

First Financial Bankshares Inc.

    30,273       1,535,446  

First Foundation Inc.

    3,388       90,155  

German American Bancorp. Inc.

    3,660       144,277  

Glacier Bancorp. Inc.

    15,116       835,764  

Harborone Bancorp. Inc.

    11,981       172,167  

Heartland Financial USA Inc.

    4,013       201,132  

Hilltop Holdings Inc.

    8,462       299,893  

Home BancShares Inc./AR

    22,355       531,155  

Horizon Bancorp Inc./IN

    4,099       78,168  

Independent Bank Group Inc.

    4,426       319,955  

Lakeland Financial Corp.

    3,039       218,413  

Live Oak Bancshares Inc.(b)

    7,511       669,831  

Meta Financial Group Inc.

    7,556       418,905  

Metropolitan Bank Holding Corp.(a)

    1,371       124,569  

National Bank Holdings Corp., Class A

    3,182       138,003  

Nicolet Bankshares Inc.(a)(b)

    866       62,257  

Origin Bancorp Inc.

    5,224       232,990  

Peapack Gladstone Financial Corp.

    2,392       80,252  

Pinnacle Financial Partners Inc.

    7,801       753,343  

Popular Inc.

    9,317       758,776  

QCR Holdings Inc.

    1,376       75,873  

Renasant Corp.

    5,907       220,981  

Seacoast Banking Corp. of Florida

    13,093       476,978  

ServisFirst Bancshares Inc.

    11,547       927,340  

Silvergate Capital Corp., Class A(a)

    6,242       977,622  

South State Corp.

    5,947       464,401  

Southside Bancshares Inc.

    4,439       183,419  

Sterling Bancorp./DE

    23,062       586,928  

Stock Yards Bancorp. Inc.

    3,834       234,832  

Tompkins Financial Corp.

    1,473       120,948  

Towne Bank/Portsmouth VA

    8,813       277,786  

Triumph Bancorp. Inc.(a)

    5,590       655,707  

UMB Financial Corp.

    5,226       516,433  

United Community Banks Inc./GA

    9,352       325,824  

Univest Financial Corp.

    2,527       72,525  

Veritex Holdings Inc.

    4,098       167,813  

Washington Trust Bancorp. Inc.

    1,738       94,999  
   

 

 

 
        17,819,390  
Beverages — 0.3%            

Celsius Holdings Inc.(a)(b)

    8,995       868,198  

Coca-Cola Consolidated Inc.

    721       289,409  

Duckhorn Portfolio Inc. (The)(a)

    7,289       140,969  

MGP Ingredients Inc.

    2,148       137,923  

National Beverage Corp.

    2,857       161,135  

NewAge Inc.(a)

    34,132       50,515  
   

 

 

 
      1,648,149  
Biotechnology — 9.9%            

4D Molecular Therapeutics Inc.(a)

    4,849       116,521  

Abeona Therapeutics Inc.(a)

    11,270       9,155  

ACADIA Pharmaceuticals Inc.(a)

    27,617       495,725  

ADMA Biologics Inc.(a)

    25,963       33,492  

Adverum Biotechnologies Inc.(a)(b)

    18,256       41,441  

Agenus Inc.(a)

    50,508       193,951  

Agios Pharmaceuticals Inc.(a)

    13,883       652,501  

Albireo Pharma Inc.(a)(b)

    4,638       135,522  

Aldeyra Therapeutics Inc.(a)

    11,991       109,118  
 

 

 

62  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Alector Inc.(a)

    13,713     $ 298,121  

Alkermes PLC(a)

    38,164       1,155,988  

Allakos Inc.(a)

    8,271       831,897  

Allogene Therapeutics Inc.(a)

    8,666       149,402  

Altimmune Inc.(a)

    8,139       87,901  

ALX Oncology Holdings Inc.(a)

    2,361       132,310  

Amicus Therapeutics Inc.(a)

    56,497       593,219  

AnaptysBio Inc.(a)(b)

    2,557       84,125  

Anavex Life Sciences Corp.(a)

    17,830       334,134  

Anika Therapeutics Inc.(a)

    3,396       141,443  

Anixa Biosciences Inc.(a)(b)

    7,312       34,878  

Apellis Pharmaceuticals Inc.(a)

    16,801       516,463  

AquaBounty Technologies Inc.(a)

    10,036       40,044  

Arbutus Biopharma Corp.(a)

    18,682       75,288  

Arcus Biosciences Inc.(a)(b)

    10,928       365,432  

Ardelyx Inc.(a)

    18,317       22,164  

Arena Pharmaceuticals Inc.(a)

    6,487       372,289  

Atara Biotherapeutics Inc.(a)

    13,381       207,138  

Athenex Inc.(a)

    16,217       41,191  

Athersys Inc.(a)(b)

    33,177       38,817  

Atossa Therapeutics Inc.(a)

    30,286       77,835  

Avid Bioservices Inc.(a)

    14,419       442,375  

Avidity Biosciences Inc.(a)

    9,880       222,300  

Avita Medical Inc.(a)(b)

    5,851       96,366  

Avrobio Inc.(a)

    5,074       28,516  

Beam Therapeutics Inc.(a)(b)

    10,320       916,106  

BioAtla Inc.(a)

    1,805       52,760  

BioCryst Pharmaceuticals Inc.(a)

    42,125       628,926  

Blueprint Medicines Corp.(a)

    13,849       1,557,874  

Bolt Biotherapeutics Inc.(a)

    1,632       21,363  

C4 Therapeutics Inc.(a)

    8,673       385,255  

Cardiff Oncology Inc.(a)

    4,292       25,194  

CareDx Inc.(a)

    12,459       635,409  

CASI Pharmaceuticals Inc.(a)(b)

    25,350       27,378  

Catalyst Biosciences Inc.(a)

    7,746       25,484  

Catalyst Pharmaceuticals Inc.(a)

    10,643       62,794  

Celldex Therapeutics Inc.(a)

    10,947       465,685  

CEL-SCI Corp.(a)

    5,027       56,302  

Checkpoint Therapeutics Inc.(a)

    15,625       54,844  

ChemoCentryx Inc.(a)(b)

    11,498       400,245  

Chimerix Inc.(a)

    8,202       42,978  

Clovis Oncology Inc.(a)

    27,887       120,751  

Codiak Biosciences Inc.(a)

    3,735       53,821  

Coherus Biosciences Inc.(a)(b)

    8,132       136,048  

Concert Pharmaceuticals Inc.(a)

    5,911       16,196  

Corbus Pharmaceuticals Holdings Inc.(a)

    11,384       11,384  

Crinetics Pharmaceuticals Inc.(a)

    4,611       114,952  

CTI BioPharma Corp.(a)(b)

    19,499       50,502  

Cue Biopharma Inc.(a)

    6,752       82,442  

Curis Inc.(a)

    18,336       119,184  

Cytokinetics Inc.(a)

    19,669       686,645  

Deciphera Pharmaceuticals Inc.(a)

    9,705       324,050  

Denali Therapeutics Inc.(a)

    21,785           1,053,305  

Dermtech Inc.(a)

    6,069       165,987  

Design Therapeutics Inc.(a)(b)

    1,437       22,532  

Dicerna Pharmaceuticals Inc.(a)

    16,293       339,057  

Dynavax Technologies Corp.(a)

    25,304       505,321  

Editas Medicine Inc.(a)(b)

    16,107       591,449  

Eiger BioPharmaceuticals Inc.(a)

    7,435       50,112  

Emergent BioSolutions Inc.(a)

    5,740       273,626  
Security   Shares     Value  
Biotechnology (continued)            

Epizyme Inc.(a)(b)

    20,894     $ 87,755  

Equillium Inc.(a)(b)

    4,280       27,007  

Evelo Biosciences Inc.(a)(b)

    3,111       27,532  

FibroGen Inc.(a)

    10,383       115,459  

Flexion Therapeutics Inc.(a)

    11,954       110,575  

Fortress Biotech Inc.(a)(b)

    17,734       57,813  

G1 Therapeutics Inc.(a)(b)

    3,851       55,801  

Gain Therapeutics Inc.(a)

    604       4,204  

Genprex Inc.(a)

    6,521       15,194  

Geron Corp.(a)(b)

    30,656       47,210  

Global Blood Therapeutics Inc.(a)

    7,299       266,559  

Gritstone bio Inc.(a)

    9,432       103,658  

Halozyme Therapeutics Inc.(a)

    33,663       1,281,550  

Harpoon Therapeutics Inc.(a)

    5,434       34,017  

Heron Therapeutics Inc.(a)(b)

    24,000       264,240  

Homology Medicines Inc.(a)

    5,465       31,314  

iBio Inc.(a)(b)

    53,750       41,925  

Ideaya Biosciences Inc.(a)

    7,687       164,809  

Immunic Inc.(a)

    1,495       13,933  

ImmunoGen Inc.(a)

    43,377       261,563  

Infinity Pharmaceuticals Inc.(a)

    14,205       36,081  

Inhibrx Inc.(a)

    4,809       193,274  

Inmune Bio Inc.(a)(b)

    2,794       51,382  

Inovio Pharmaceuticals Inc.(a)(b)

    35,193       251,278  

Insmed Inc.(a)(b)

    27,158       818,814  

Intellia Therapeutics Inc.(a)

    16,141       2,146,430  

Invitae Corp.(a)

    47,287       1,253,106  

Ionis Pharmaceuticals Inc.(a)

    33,396           1,064,331  

Iovance Biotherapeutics Inc.(a)

    31,784       772,669  

Ironwood Pharmaceuticals Inc.(a)(b)

    13,486       172,216  

IsoRay Inc.(a)

    35,516       21,487  

IVERIC bio Inc.(a)

    25,075       443,828  

Kadmon Holdings Inc.(a)(b)

    18,916       178,756  

KalVista Pharmaceuticals Inc.(a)

    4,891       87,940  

Karyopharm Therapeutics Inc.(a)(b)

    9,381       51,220  

Kiniksa Pharmaceuticals Ltd., Class A(a)

    3,094       32,147  

Kodiak Sciences Inc.(a)

    7,919       927,236  

Krystal Biotech Inc.(a)

    4,183       209,526  

Kura Oncology Inc.(a)

    8,143       133,708  

Kymera Therapeutics Inc.(a)

    8,294       488,351  

Lexicon Pharmaceuticals Inc.(a)(b)

    15,950       84,376  

Ligand Pharmaceuticals Inc.(a)

    3,928       573,252  

Lineage Cell Therapeutics Inc.(a)

    13,032       29,713  

MacroGenics Inc.(a)(b)

    12,951       252,933  

Madrigal Pharmaceuticals Inc.(a)

    1,649       128,210  

Magenta Therapeutics Inc.(a)

    3,550       22,720  

MannKind Corp.(a)

    58,677       276,369  

Matinas BioPharma Holdings Inc.(a)

    45,515       50,522  

MediciNova Inc.(a)

    11,485       38,590  

MEI Pharma Inc.(a)

    13,828       38,995  

MeiraGTx Holdings PLC(a)

    3,299       70,929  

Mersana Therapeutics Inc.(a)

    9,238       79,077  

MiMedx Group Inc.(a)(b)

    12,112       82,967  

Molecular Templates Inc.(a)(b)

    10,014       52,273  

Morphic Holding Inc.(a)

    6,096       350,520  

Mustang Bio Inc.(a)(b)

    17,476       39,146  

NeuBase Therapeutics Inc.(a)

    6,951       25,719  

Nurix Therapeutics Inc.(a)

    5,138       171,866  

Ocugen Inc.(a)(b)

    23,197       274,653  

Oncocyte Corp.(a)

    20,195       66,240  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  63


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Biotechnology (continued)            

Oncternal Therapeutics Inc.(a)(b)

    10,660     $ 39,122  

OPKO Health Inc.(a)(b)

    49,830       188,856  

Organogenesis Holdings Inc., Class A(a)

    14,838       162,921  

Palatin Technologies Inc.(a)(b)

    31,300       12,770  

PDS Biotechnology Corp.(a)

    5,649       68,014  

Precigen Inc.(a)(b)

    10,952       52,898  

Precision BioSciences Inc.(a)

    11,099       105,330  

Protagonist Therapeutics Inc.(a)

    10,525       327,959  

Protalix BioTherapeutics Inc.(a)(b)

    8,078       9,128  

Prothena Corp. PLC(a)

    4,112       227,599  

PTC Therapeutics Inc.(a)

    16,643       631,269  

Puma Biotechnology Inc.(a)

    3,568       18,197  

Radius Health Inc.(a)

    11,131       240,430  

Recursion Pharmaceuticals Inc., Class A(a)(b)

    5,976       114,440  

REGENXBIO Inc.(a)

    5,318       188,470  

REVOLUTION Medicines Inc.(a)

    14,555       428,354  

Rhythm Pharmaceuticals Inc.(a)

    3,893       44,808  

Rigel Pharmaceuticals Inc.(a)

    40,236       135,193  

Rocket Pharmaceuticals Inc.(a)

    6,294       186,995  

Rubius Therapeutics Inc.(a)(b)

    4,496       63,888  

Sage Therapeutics Inc.(a)

    6,616       267,022  

Sangamo Therapeutics Inc.(a)(b)

    19,291       156,643  

Sarepta Therapeutics Inc.(a)

    20,321           1,608,001  

Scholar Rock Holding Corp.(a)(b)

    6,159       161,982  

Selecta Biosciences Inc.(a)

    21,060       75,605  

Seres Therapeutics Inc.(a)(b)

    10,619       64,564  

Sesen Bio Inc.(a)

    43,357       52,462  

Shattuck Labs Inc.(a)

    3,477       67,106  

Sigilon Therapeutics Inc.(a)

    3,396       18,304  

Solid Biosciences Inc.(a)

    15,027       30,505  

Sorrento Therapeutics Inc.(a)(b)

    70,203       481,593  

Spero Therapeutics Inc.(a)

    6,587       115,668  

SQZ Biotechnologies Co.(a)

    4,359       58,367  

Stoke Therapeutics Inc.(a)

    5,225       119,287  

Surface Oncology Inc.(a)

    8,028       59,568  

Sutro Biopharma Inc.(a)

    4,805       96,869  

Syndax Pharmaceuticals Inc.(a)

    5,967       116,058  

Syros Pharmaceuticals Inc.(a)(b)

    12,542       51,798  

T2 Biosystems Inc.(a)(b)

    39,058       30,250  

TG Therapeutics Inc.(a)(b)

    31,439       981,526  

Tonix Pharmaceuticals Holding Corp.(a)

    57,514       31,748  

Travere Therapeutics Inc.(a)

    12,011       346,037  

Trevena Inc.(a)

    40,248       40,650  

Twist Bioscience Corp.(a)

    11,563       1,373,684  

Tyme Technologies Inc.(a)(b)

    28,385       27,051  

uniQure NV(a)

    8,464       257,898  

Vanda Pharmaceuticals Inc.(a)

    13,102       224,306  

Vaxart Inc.(a)(b)

    28,925       194,087  

Veracyte Inc.(a)

    16,687       798,974  

Verastem Inc.(a)

    18,559       48,253  

Vericel Corp.(a)(b)

    11,073       509,579  

Viking Therapeutics Inc.(a)

    9,416       54,801  

Vir Biotechnology Inc.(a)

    17,236       650,314  

VistaGen Therapeutics Inc.(a)

    41,169       94,277  

Voyager Therapeutics Inc.(a)(b)

    3,693       13,369  

vTv Therapeutics Inc., Class A(a)(b)

    7,250       10,368  

XBiotech Inc.

    3,571       52,351  

Xencor Inc.(a)

    13,856       548,143  

XOMA Corp.(a)

    2,758       68,950  

Y-mAbs Therapeutics Inc.(a)

    8,108       199,132  
Security   Shares     Value  
Biotechnology (continued)            

ZIOPHARM Oncology Inc.(a)(b)

    50,758     $ 76,137  
   

 

 

 
      46,787,919  
Building Products — 1.4%            

AAON Inc.

    9,750       698,587  

American Woodmark Corp.(a)

    1,668       114,658  

Armstrong World Industries Inc.

    8,106       856,399  

Cornerstone Building Brands Inc.(a)

    5,748       82,254  

Gibraltar Industries Inc.(a)

    7,751       505,055  

Griffon Corp.

    6,196       164,132  

Insteel Industries Inc.

    2,659       108,142  

JELD-WEN Holding Inc.(a)

    7,876       215,881  

Masonite International Corp.(a)

    3,602       432,276  

PGT Innovations Inc.(a)

    8,629       184,229  

Quanex Building Products Corp.

    2,964       61,414  

Resideo Technologies Inc.(a)

    20,559       506,985  

Simpson Manufacturing Co. Inc.

    10,277           1,090,287  

UFP Industries Inc.

    9,782       800,461  

Zurn Water Solutions Corp.

    16,813       609,976  
   

 

 

 
      6,430,736  
Capital Markets — 1.9%            

Affiliated Managers Group Inc.

    4,723       792,897  

Artisan Partners Asset Management Inc., Class A

    9,021       446,900  

Assetmark Financial Holdings Inc.(a)

    2,688       68,920  

B. Riley Financial Inc.

    2,287       163,886  

BGC Partners Inc., Class A

    35,916       192,869  

BrightSphere Investment Group Inc.

    8,905       266,972  

Cohen & Steers Inc.

    3,642       345,589  

Cowen Inc., Class A

    3,820       144,129  

Evercore Inc., Class A

    3,131       475,411  

Focus Financial Partners Inc., Class A(a)

    4,785       300,785  

Freedom Holding Corp./NV(a)(b)

    3,984       265,693  

GCM Grosvenor Inc., Class A

    7,897       90,421  

Hamilton Lane Inc., Class A

    8,067       843,082  

Houlihan Lokey Inc.

    6,002       672,704  

Interactive Brokers Group Inc., Class A

    20,643       1,462,557  

Open Lending Corp., Class A(a)

    24,197       762,690  

Oppenheimer Holdings Inc., Class A, NVS

    1,132       58,921  

Piper Sandler Cos

    1,553       255,764  

PJT Partners Inc., Class A

    5,800       474,382  

StepStone Group Inc., Class A

    9,581       450,115  

StoneX Group Inc.(a)

    1,517       104,840  

Virtus Investment Partners Inc.

    1,176       376,320  

WisdomTree Investments Inc.

    13,395       85,594  
   

 

 

 
      9,101,441  
Chemicals — 2.1%            

Amyris Inc.(a)(b)

    44,209       655,177  

Ashland Global Holdings Inc.

    5,504       528,439  

Avient Corp.

    10,112       544,835  

Balchem Corp.

    7,655       1,171,904  

Chase Corp.

    1,029       98,784  

Diversey Holdings Ltd.(a)(b)

    4,743       82,528  

Element Solutions Inc.

    28,512       647,508  

GCP Applied Technologies Inc.(a)

    6,934       156,778  

Hawkins Inc.

    1,989       72,937  

HB Fuller Co.

    6,575       463,603  

Ingevity Corp.(a)

    5,558       433,024  

Innospec Inc.

    1,944       176,146  

Intrepid Potash Inc.(a)(b)

    1,395       67,950  

Koppers Holdings Inc.(a)

    1,669       58,565  
 

 

 

64  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Chemicals (continued)            

Kronos Worldwide Inc.

    2,470     $ 32,184  

Livent Corp.(a)

    38,220       1,078,568  

Loop Industries Inc.(a)

    4,497       70,648  

Olin Corp.

    16,066       915,441  

Quaker Chemical Corp.

    3,178       781,279  

Sensient Technologies Corp.

    4,687       448,077  

Stepan Co.

    2,552       306,291  

Tronox Holdings PLC, Class A

    17,193       400,941  

Valvoline Inc.

    23,259       789,876  
   

 

 

 
          9,981,483  
Commercial Services & Supplies — 2.0%  

ABM Industries Inc.

    6,893       303,361  

Aqua Metals Inc.(a)(b)

    16,883       29,376  

Brady Corp., Class A, NVS

    4,358       227,008  

BrightView Holdings Inc.(a)(b)

    4,204       66,676  

Brink’s Co. (The)

    6,399       440,763  

Casella Waste Systems Inc., Class A(a)(b)

    11,876       1,029,887  

Cimpress PLC(a)

    2,589       231,250  

Clean Harbors Inc.(a)

    6,860       772,024  

Covanta Holding Corp.

    17,067       344,412  

Driven Brands Holdings Inc.(a)

    13,007       422,337  

Harsco Corp.(a)

    18,924       323,600  

Healthcare Services Group Inc.

    8,837       169,582  

HNI Corp.

    3,386       126,636  

Montrose Environmental Group Inc.(a)(b)

    3,064       210,037  

MSA Safety Inc.

    8,615       1,318,354  

SP Plus Corp.(a)

    2,496       80,496  

Stericycle Inc.(a)

    9,312       623,159  

Tetra Tech Inc.

    12,771       2,243,354  

U.S. Ecology Inc.(a)

    3,413       109,865  

UniFirst Corp./MA

    1,898       375,728  

Viad Corp.(a)

    3,415       151,524  
   

 

 

 
      9,599,429  
Communications Equipment — 1.1%  

Aviat Networks Inc.(a)

    1,130       32,318  

CalAmp Corp.(a)(b)

    5,476       52,679  

Calix Inc.(a)

    12,861       804,970  

Cambium Networks Corp.(a)

    2,623       74,021  

Casa Systems Inc.(a)

    8,713       55,153  

Clearfield Inc.(a)

    2,757       155,743  

Digi International Inc.(a)

    5,245       113,030  

EMCORE Corp.(a)

    3,945       29,509  

Extreme Networks Inc.(a)

    18,292       179,810  

Harmonic Inc.(a)

    17,524       158,943  

Infinera Corp.(a)(b)

    49,125       372,859  

Inseego Corp.(a)

    18,224       112,989  

Lumentum Holdings Inc.(a)

    10,046       829,599  

Ondas Holdings Inc.(a)(b)

    6,011       51,514  

Plantronics Inc.(a)

    3,315       88,709  

Resonant Inc.(a)(b)

    14,114       31,615  

Ribbon Communications Inc.(a)

    8,992       49,186  

Viasat Inc.(a)(b)

    17,352       1,035,741  

Viavi Solutions Inc.(a)

    54,144       833,818  

Vislink Technologies Inc.(a)(b)

    11,746       20,438  
   

 

 

 
      5,082,644  
Construction & Engineering — 1.4%  

Ameresco Inc., Class A(a)

    7,307       600,124  

API Group Corp.(a)

    22,430       488,525  

Arcosa Inc.

    5,579       288,602  
Security   Shares     Value  
Construction & Engineering (continued)  

Argan Inc.

    1,280     $ 52,813  

Comfort Systems USA Inc.

    8,549       781,977  

Construction Partners Inc., Class A(a)(b)

    8,598       306,175  

Dycom Industries Inc.(a)

    3,212       255,097  

EMCOR Group Inc.

    5,014       609,151  

Granite Construction Inc.

    4,524       167,931  

IES Holdings Inc.(a)

    1,309       65,254  

Infrastructure and Energy Alternatives Inc.(a)

    3,418       37,837  

MYR Group Inc.(a)

    2,104       214,923  

NV5 Global Inc.(a)

    1,752       182,436  

Orbital Energy Group Inc.(a)(b)

    14,042       37,492  

Primoris Services Corp.

    6,488       174,852  

Valmont Industries Inc.

    2,525       603,374  

WillScot Mobile Mini Holdings Corp.(a)

    52,898       1,838,205  
   

 

 

 
      6,704,768  
Construction Materials — 0.4%  

Eagle Materials Inc.

    4,312       639,728  

Forterra Inc.(a)

    4,938       117,623  

Summit Materials Inc., Class A(a)

    27,933       995,812  
   

 

 

 
      1,753,163  
Consumer Finance — 0.6%  

Credit Acceptance Corp.(a)(b)

    722       431,908  

Encore Capital Group Inc.(a)(b)

    2,602       140,560  

FirstCash Inc.

    4,778       422,710  

Green Dot Corp., Class A(a)

    7,375       312,405  

LendingClub Corp.(a)

    14,568       669,545  

LendingTree Inc.(a)(b)

    2,722       439,303  

Nelnet Inc., Class A

    2,835       234,256  

PROG Holdings Inc.

    5,431       219,684  
   

 

 

 
      2,870,371  
Containers & Packaging — 0.2%            

Graphic Packaging Holding Co.

    34,313       683,858  

Myers Industries Inc.

    4,182       86,065  

Ranpak Holdings Corp.(a)

    9,582       330,196  
   

 

 

 
      1,100,119  
Distributors — 0.0%            

Funko Inc., Class A(a)

    6,123       100,356  
   

 

 

 
Diversified Consumer Services — 0.8%  

2U Inc.(a)(b)

    17,573       519,106  

American Public Education Inc.(a)

    2,255       56,352  

Carriage Services Inc.

    1,844       94,874  

Coursera Inc.(a)

    18,865       658,577  

frontdoor Inc.(a)

    8,767       326,834  

Grand Canyon Education Inc.(a)

    5,958       474,853  

Laureate Education Inc., Class A(a)

    8,834       153,005  

OneSpaWorld Holdings Ltd.(a)

    13,784       148,867  

Stride Inc.(a)

    5,360       190,280  

Terminix Global Holdings Inc.(a)

    29,473       1,193,067  

XpresSpa Group Inc.(a)(b)

    13,400       17,822  
   

 

 

 
          3,833,637  
Diversified Financial Services — 0.1%            

A-Mark Precious Metals Inc.

    944       70,790  

Cannae Holdings Inc.(a)

    11,197       381,818  
   

 

 

 
      452,608  
Diversified Telecommunication Services — 0.7%  

Anterix Inc.(a)

    2,725       174,672  

Bandwidth Inc., Class A(a)

    5,501       469,125  

Cogent Communications Holdings Inc.

    7,368       564,315  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  65


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified Telecommunication Services (continued)  

Globalstar Inc.(a)

    156,235     $ 257,788  

IDT Corp., Class B(a)

    1,608       77,779  

Iridium Communications Inc.(a)

    31,185       1,264,552  

Liberty Latin America Ltd., Class A(a)

    6,336       76,159  

Liberty Latin America Ltd., Class C, NVS(a)

    23,323       280,576  

Ooma Inc.(a)

    5,081       117,371  
   

 

 

 
      3,282,337  
Electric Utilities — 0.1%            

PNM Resources Inc.

    8,393       417,552  
   

 

 

 
Electrical Equipment — 1.6%            

Acuity Brands Inc.

    3,611       741,808  

Advent Technologies Holdings Inc.(a)(b)

    8,385       80,412  

American Superconductor Corp.(a)

    6,183       113,643  

Array Technologies Inc.(a)

    28,356       605,401  

Atkore Inc.(a)

    4,923       465,371  

Babcock & Wilcox Enterprises Inc.(a)(b)

    6,221       42,489  

Beam Global(a)(b)

    1,948       61,362  

Blink Charging Co.(a)(b)

    8,537       271,477  

Bloom Energy Corp., Class A(a)(b)

    34,554       1,080,158  

Encore Wire Corp.

    2,625       351,907  

Energous Corp.(a)(b)

    16,340       31,373  

EnerSys

    4,721       377,869  

Flux Power Holdings Inc.(a)

    2,180       12,535  

FuelCell Energy Inc.(a)(b)

    76,621       612,202  

Orion Energy Systems Inc.(a)

    6,521       26,671  

Polar Power Inc.(a)

    777       3,947  

Powell Industries Inc.

    934       24,153  

Regal Rexnord Corp.

    5,570       848,478  

Shoals Technologies Group Inc., Class A(a)(b)

    24,008       744,008  

Sunworks Inc.(a)(b)

    6,813       41,355  

TPI Composites Inc.(a)

    8,772       295,002  

Vicor Corp.(a)

    5,025       761,740  

Westwater Resources Inc.(a)

    4,586       14,538  
   

 

 

 
          7,607,899  
Electronic Equipment, Instruments & Components — 2.7%  

908 Devices Inc.(a)(b)

    3,191       104,984  

Advanced Energy Industries Inc.

    9,043       830,328  

Airgain Inc.(a)

    2,484       27,895  

Akoustis Technologies Inc.(a)

    11,269       84,743  

Badger Meter Inc.

    6,916       707,161  

Benchmark Electronics Inc.

    4,156       96,876  

Coherent Inc.(a)

    5,800       1,475,520  

CTS Corp.

    7,636       271,994  

ePlus Inc.(a)

    1,539       170,167  

Fabrinet(a)

    4,345       417,120  

FARO Technologies Inc.(a)

    4,281       314,953  

II-VI Inc.(a)(b)

    14,804       895,790  

Intellicheck Inc.(a)(b)

    4,092       36,378  

Itron Inc.(a)

    10,717       833,461  

Littelfuse Inc.

    5,818       1,713,692  

Luna Innovations Inc.(a)

    7,514       73,186  

Methode Electronics Inc.

    4,092       172,150  

MicroVision Inc.(a)(b)

    38,813       295,367  

MICT Inc.(a)(b)

    13,963       19,269  

Napco Security Technologies Inc.(a)(b)

    3,413       163,688  

National Instruments Corp.

    13,061       554,701  

nLight Inc.(a)

    10,172       286,037  

Novanta Inc.(a)

    8,392       1,448,124  

PAR Technology Corp.(a)(b)

    5,784       363,351  
Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Plexus Corp.(a)

    3,869     $ 337,841  

Rogers Corp.(a)

    4,436       892,168  

Vishay Intertechnology Inc.

    13,075       251,302  

Vishay Precision Group Inc.(a)

    1,199       40,874  

Wrap Technologies Inc.(a)

    6,120       34,884  
   

 

 

 
        12,914,004  
Energy Equipment & Services — 0.5%            

Aspen Aerogels Inc.(a)

    2,693       146,661  

Cactus Inc., Class A

    13,740       597,690  

ChampionX Corp.(a)

    31,170       817,589  

Core Laboratories NV(b)

    11,072       287,983  

DMC Global Inc.(a)

    4,410       184,250  

Dril-Quip Inc.(a)

    4,954       116,716  

FTS International Inc., Class A(a)

    1,378       36,517  

ProPetro Holding Corp.(a)

    9,981       95,718  

RPC Inc.(a)(b)

    7,636       41,158  

Solaris Oilfield Infrastructure Inc., Class A

    6,679       50,693  

TETRA Technologies Inc.(a)

    15,109       48,802  
   

 

 

 
      2,423,777  
Entertainment — 0.7%            

Cinedigm Corp., Class A(a)

    12,762       30,118  

CuriosityStream Inc.(a)(b)

    6,116       60,977  

IMAX Corp.(a)

    7,947       149,801  

Liberty Media Corp.-Liberty Braves, Class C, NVS(a)

    8,781       260,971  

LivePerson Inc.(a)

    14,944       34,222  

Madison Square Garden Sports Corp.(a)

    2,310       437,768  

Skillz Inc., Class A(a)(b)

    61,147       683,623  

Warner Music Group Corp., Class A

    22,952       1,135,895  

World Wrestling Entertainment Inc., Class A

    7,844       479,190  
   

 

 

 
      3,272,565  
Equity Real Estate Investment Trusts (REITs) — 5.3%  

Agree Realty Corp.

    7,478       531,387  

Alexander & Baldwin Inc.

    9,823       240,958  

American Assets Trust Inc.

    4,334       163,955  

American Campus Communities Inc.

    21,891       1,175,985  

Apartment Investment & Management Co., Class A

    14,285       108,280  

Broadstone Net Lease Inc.

    21,317       566,819  

CareTrust REIT Inc.

    9,555       198,266  

CatchMark Timber Trust Inc., Class A

    4,441       38,015  

Columbia Property Trust Inc.

    11,275       216,142  

Community Healthcare Trust Inc.

    5,469       261,637  

CoreSite Realty Corp.

    6,449       918,725  

Corporate Office Properties Trust

    15,231       413,065  

CTO Realty Growth Inc.

    1,402       75,161  

Douglas Emmett Inc.

    15,493       506,311  

Easterly Government Properties Inc.

    11,437       240,520  

EastGroup Properties Inc.

    9,548       1,888,403  

Equity Commonwealth(a)

    11,723       303,977  

Essential Properties Realty Trust Inc.

    13,528       402,999  

First Industrial Realty Trust Inc.

    30,512       1,776,714  

Four Corners Property Trust Inc.

    8,702       252,358  

Gladstone Commercial Corp.

    4,786       104,622  

Gladstone Land Corp.

    4,506       99,763  

Global Medical REIT Inc.

    5,988       99,281  

Healthcare Realty Trust Inc.

    18,006       595,278  

Healthcare Trust of America Inc., Class A

    22,212       741,659  

Hudson Pacific Properties Inc.

    16,300       419,725  

Independence Realty Trust Inc.

    10,729       253,526  

Innovative Industrial Properties Inc.

    5,655       1,487,774  
 

 

 

66  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Lexington Realty Trust

    26,580     $ 387,271  

Life Storage Inc.

    9,053       1,211,382  

Monmouth Real Estate Investment Corp.

    10,635       200,470  

National Storage Affiliates Trust

    9,797       611,921  

NETSTREIT Corp.

    9,308       225,626  

NexPoint Residential Trust Inc.

    2,307       163,382  

Pebblebrook Hotel Trust(b)

    16,428       368,973  

Physicians Realty Trust

    19,726       374,991  

PotlatchDeltic Corp.

    5,821       304,264  

PS Business Parks Inc.

    2,076       368,905  

Rayonier Inc.

    14,090       525,980  

Rexford Industrial Realty Inc.

    32,536       2,186,419  

Safehold Inc.(b)

    3,140       234,558  

Service Properties Trust

    18,150       195,475  

Spirit Realty Capital Inc.

    18,276       894,245  

STAG Industrial Inc.

    20,244       881,221  

Terreno Realty Corp.

    16,680       1,219,808  

UMH Properties Inc.

    5,656       135,405  

Uniti Group Inc.

    28,477       407,506  

Universal Health Realty Income Trust

    1,588       90,468  

Urban Edge Properties

    13,151       230,537  
   

 

 

 
      25,300,112  
Food & Staples Retailing — 0.3%            

Andersons Inc. (The)

    2,367       80,620  

BJ’s Wholesale Club Holdings Inc.(a)(b)

    12,302       718,929  

Grocery Outlet Holding Corp.(a)

    20,766       460,797  

PriceSmart Inc.

    2,146       154,405  
   

 

 

 
      1,414,751  
Food Products — 1.1%            

Calavo Growers Inc.

    2,115       85,023  

Cal-Maine Foods Inc.

    8,954       322,881  

Hain Celestial Group Inc. (The)(a)

    19,829       889,727  

J&J Snack Foods Corp.

    1,696       250,245  

Laird Superfood Inc.(a)

    1,272       22,209  

Lancaster Colony Corp.

    4,697       798,490  

Mission Produce Inc.(a)

    4,067       77,232  

Post Holdings Inc.(a)

    5,958       604,618  

Sanderson Farms Inc.

    5,008       948,766  

Seaboard Corp.

    22       84,701  

Simply Good Foods Co. (The)(a)

    19,851       787,092  

Tootsie Roll Industries Inc.

    1,768       55,957  

Vital Farms Inc.(a)(b)

    5,554       91,197  
   

 

 

 
          5,018,138  
Gas Utilities — 0.1%            

Chesapeake Utilities Corp.

    2,296       300,937  
   

 

 

 
Health Care Equipment & Supplies — 6.0%            

Accelerate Diagnostics Inc.(a)

    8,284       48,876  

Acutus Medical Inc.(a)(b)

    4,909       38,487  

Alphatec Holdings Inc.(a)(b)

    16,032       188,055  

AngioDynamics Inc.(a)

    6,433       183,984  

Asensus Surgical Inc.(a)(b)

    35,366       59,769  

Aspira Women’s Health Inc.(a)(b)

    14,236       47,691  

AtriCure Inc.(a)

    10,812       811,549  

Atrion Corp.

    184       133,952  

Avanos Medical Inc.(a)

    7,987       251,910  

Axogen Inc.(a)

    9,750       148,103  

Axonics Inc.(a)

    10,872       797,461  

BioLife Solutions Inc.(a)

    6,849       364,024  
Security   Shares     Value  
Health Care Equipment & Supplies (continued)            

Bioventus Inc., Class A(a)

    975     $ 14,723  

Cardiovascular Systems Inc.(a)

    5,080       178,206  

Cerus Corp.(a)(b)

    40,419       266,766  

ClearPoint Neuro Inc.(a)

    3,716       62,169  

Co-Diagnostics Inc.(a)

    3,615       29,679  

CONMED Corp.

    4,244       620,812  

CryoLife Inc.(a)

    4,162       85,904  

CryoPort Inc.(a)

    10,845       884,301  

Cutera Inc.(a)

    3,845       165,335  

CytoSorbents Corp.(a)

    4,224       24,879  

DarioHealth Corp.(a)

    3,429       56,064  

Eargo Inc.(a)

    5,383       47,370  

Envista Holdings Corp.(a)

    26,331       1,029,542  

Establishment Labs Holdings Inc.(a)

    5,088       414,876  

Glaukos Corp.(a)

    10,965       501,210  

Globus Medical Inc., Class A(a)

    18,513       1,428,648  

Haemonetics Corp.(a)

    7,065       485,436  

Heska Corp.(a)(b)

    2,506       560,166  

ICU Medical Inc.(a)

    4,717       1,104,391  

Inari Medical Inc.(a)

    7,487       677,723  

Inogen Inc.(a)

    2,228       88,340  

Integer Holdings Corp.(a)

    4,608       414,812  

Integra LifeSciences Holdings Corp.(a)

    17,210       1,143,777  

Intersect ENT Inc.(a)

    3,792       102,270  

iRhythm Technologies Inc.(a)

    6,924       485,649  

Lantheus Holdings Inc.(a)

    15,921       372,392  

LeMaitre Vascular Inc.

    4,520       235,085  

LivaNova PLC(a)

    4,812       369,177  

Meridian Bioscience Inc.(a)

    5,772       108,571  

Merit Medical Systems Inc.(a)

    11,993       806,649  

Mesa Laboratories Inc.

    1,232       376,623  

Natus Medical Inc.(a)

    4,075       102,079  

Neogen Corp.(a)

    25,327       1,071,585  

Neuronetics Inc.(a)

    2,915       15,158  

Nevro Corp.(a)

    8,216       934,488  

NuVasive Inc.(a)

    12,174       649,605  

OraSure Technologies Inc.(a)

    12,424       132,564  

Ortho Clinical Diagnostics Holdings PLC(a)

    26,777       529,381  

Orthofix Medical Inc.(a)

    4,639       166,911  

OrthoPediatrics Corp.(a)(b)

    3,289       234,078  

Outset Medical Inc.(a)(b)

    9,489       505,479  

Pulmonx Corp.(a)(b)

    8,110       315,722  

Pulse Biosciences Inc.(a)

    1,674       35,305  

Quotient Ltd.(a)

    22,572       57,107  

Repro-Med Systems Inc.(a)

    9,015       22,447  

Retractable Technologies Inc.(a)

    2,793       26,422  

SeaSpine Holdings Corp.(a)

    7,715       115,416  

Senseonics Holdings Inc.(a)(b)

    96,470       337,645  

Shockwave Medical Inc.(a)

    8,307       1,775,206  

SI-BONE Inc.(a)

    6,496       146,485  

Sientra Inc.(a)

    13,658       80,036  

Silk Road Medical Inc.(a)

    8,167       479,485  

SmileDirectClub Inc.(a)(b)

    24,634       126,865  

STAAR Surgical Co.(a)

    11,210       1,327,937  

Surgalign Holdings Inc.(a)

    19,731       18,968  

Surmodics Inc.(a)

    3,267       181,841  

Tactile Systems Technology Inc.(a)

    4,660       160,723  

Tandem Diabetes Care Inc.(a)(b)

    14,888           2,029,681  

TransMedics Group Inc.(a)

    6,517       178,761  

Vapotherm Inc.(a)

    3,298       75,425  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  67


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Equipment & Supplies (continued)            

Varex Imaging Corp.(a)

    3,838     $ 103,050  

ViewRay Inc.(a)

    33,280       243,277  

Zynex Inc.(a)

    4,783       59,931  
   

 

 

 
      28,454,469  
Health Care Providers & Services — 2.6%            

1Life Healthcare Inc.(a)(b)

    27,260       590,452  

Accolade Inc.(a)

    13,655       543,332  

AdaptHealth Corp.(a)(b)

    22,694       618,411  

Addus HomeCare Corp.(a)

    3,753       350,905  

AMN Healthcare Services Inc.(a)

    5,840       576,408  

Apollo Medical Holdings Inc.(a)

    4,742       325,443  

Aveanna Healthcare Holdings Inc.(a)

    9,108       70,314  

Biodesix Inc.(a)

    2,214       16,694  

Castle Biosciences Inc.(a)

    5,512       343,673  

CorVel Corp.(a)

    2,224       407,481  

Covetrus Inc.(a)

    16,053       324,110  

Ensign Group Inc. (The)(b)

    12,344       962,955  

Fulgent Genetics Inc.(a)(b)

    2,354       195,194  

Hanger Inc.(a)

    4,204       78,531  

HealthEquity Inc.(a)

    19,724       1,305,334  

InfuSystem Holdings Inc.(a)

    4,570       75,999  

Innovage Holding Corp.(a)

    4,446       29,433  

Joint Corp. (The)(a)

    3,385       296,120  

Magellan Health Inc.(a)

    1,926       182,643  

ModivCare Inc.(a)

    1,586       258,153  

National Research Corp.

    3,226       139,686  

Ontrak Inc.(a)

    2,376       20,434  

Option Care Health Inc.(a)(b)

    32,745       894,921  

Owens & Minor Inc.

    6,657       238,853  

Pennant Group Inc. (The)(a)

    6,406       163,801  

PetIQ Inc.(a)

    6,266       156,963  

Privia Health Group Inc.(a)

    4,886       125,570  

Progenity Inc.(a)(b)

    4,790       17,244  

Progyny Inc.(a)

    16,220       996,395  

R1 RCM Inc.(a)

    31,525       684,092  

RadNet Inc.(a)

    10,387       322,932  

Select Medical Holdings Corp.

    16,108       535,108  

Sharps Compliance Corp.(a)

    3,544       29,238  

Signify Health Inc., Class A(a)

    5,541       89,044  

Tivity Health Inc.(a)

    5,164       129,203  

U.S. Physical Therapy Inc.

    3,039       327,787  

Vivos Therapeutics Inc.(a)

    4,190       15,210  
   

 

 

 
        12,438,066  
Health Care Technology — 2.2%            

American Well Corp., Class A(a)(b)

    42,287       380,583  

Certara Inc.(a)(b)

    21,963       907,292  

Change Healthcare Inc.(a)

    24,945       537,066  

GoodRx Holdings Inc., Class A(a)(b)

    15,098       673,371  

Health Catalyst Inc.(a)

    11,976       630,417  

HealthStream Inc.(a)

    5,946       158,223  

Icad Inc.(a)

    5,532       58,363  

Inovalon Holdings Inc., Class A(a)

    18,441       752,208  

Inspire Medical Systems Inc.(a)

    6,446       1,737,713  

Multiplan Corp.(a)

    25,129       108,306  

NantHealth Inc.(a)

    6,783       10,649  

Omnicell Inc.(a)(b)

    10,275       1,830,491  

OptimizeRx Corp.(a)

    4,149       401,208  

Phreesia Inc.(a)

    11,905       839,779  

Schrodinger Inc.(a)(b)

    10,979       599,234  
Security   Shares     Value  
Health Care Technology (continued)            

Simulations Plus Inc.(b)

    3,787     $ 191,243  

Tabula Rasa HealthCare Inc.(a)(b)

    5,567       151,144  

Vocera Communications Inc.(a)

    8,175       462,541  
   

 

 

 
      10,429,831  
Hotels, Restaurants & Leisure — 2.7%            

Accel Entertainment Inc.(a)

    13,296       161,945  

Bally’s Corp.(a)

    5,080       232,715  

BJ’s Restaurants Inc.(a)

    3,327       110,856  

BurgerFi International Inc.(a)

    3,018       24,748  

Century Casinos Inc.(a)

    6,339       93,817  

Cheesecake Factory Inc. (The)(a)

    5,812       236,200  

Choice Hotels International Inc.

    5,562       782,128  

Chuy’s Holdings Inc.(a)

    4,709       137,314  

Cracker Barrel Old Country Store Inc.

    2,329       310,153  

Del Taco Restaurants Inc.

    4,223       35,220  

Denny’s Corp.(a)

    9,397       149,412  

Esports Entertainment Group Inc.(a)

    4,035       21,628  

Everi Holdings Inc.(a)(b)

    21,407       513,768  

Fiesta Restaurant Group Inc.(a)

    2,136       22,513  

Full House Resorts Inc.(a)(b)

    3,999       39,790  

GAN Ltd.(a)(b)

    9,399       134,218  

Golden Nugget Online Gaming Inc.(a)

    9,979       168,346  

Hilton Grand Vacations Inc.(a)

    9,915       498,526  

Hyatt Hotels Corp., Class A(a)

    3,921       334,069  

Jack in the Box Inc.

    3,442       340,586  

Lindblad Expeditions Holdings Inc.(a)

    7,204       107,700  

Marriott Vacations Worldwide Corp.

    4,697       738,462  

Monarch Casino & Resort Inc.(a)(b)

    3,066       221,427  

Papa John’s International Inc.

    7,701       955,540  

Planet Fitness Inc., Class A(a)

    19,671       1,564,828  

PlayAGS Inc.(a)

    4,150       36,603  

RCI Hospitality Holdings Inc.

    1,887       127,939  

Red Rock Resorts Inc., Class A(a)

    14,335       779,967  

Ruth’s Hospitality Group Inc.(a)

    5,433       105,074  

SeaWorld Entertainment Inc.(a)

    12,121       769,684  

Shake Shack Inc., Class A(a)

    6,145       425,050  

Wendy’s Co. (The)

    27,924       622,705  

Wingstop Inc.

    7,037       1,213,671  

Wyndham Hotels & Resorts Inc.

    10,703       904,082  
   

 

 

 
        12,920,684  
Household Durables — 1.8%            

Aterian Inc.(a)

    5,387       34,423  

Bassett Furniture Industries Inc.

    1,208       20,403  

Casper Sleep Inc.(a)(b)

    2,580       9,391  

Cavco Industries Inc.(a)

    2,032       488,452  

Cricut Inc., Class A(a)

    5,762       163,237  

Dream Finders Homes Inc., Class A(a)

    2,772       43,992  

Ethan Allen Interiors Inc.

    1,750       40,618  

Helen of Troy Ltd.(a)

    2,875       646,731  

Hovnanian Enterprises Inc., Class A(a)

    457       38,507  

Installed Building Products Inc.

    5,526       702,078  

iRobot Corp.(a)(b)

    6,664       555,911  

Koss Corp.(a)(b)

    1,525       24,675  

La-Z-Boy Inc.

    3,466       115,210  

Leggett & Platt Inc.

    13,157       616,405  

LGI Homes Inc.(a)

    2,317       345,928  

Lovesac Co. (The)(a)

    3,164       246,824  

M/I Homes Inc.(a)

    2,193       125,571  

Purple Innovation Inc., Class A(a)

    13,599       262,461  
 

 

 

68  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Household Durables (continued)            

Skyline Champion Corp.(a)

    12,439     $ 787,638  

Sonos Inc.(a)

    29,362       957,788  

TopBuild Corp.(a)

    7,784       2,000,255  

Vizio Holding Corp., Class A(a)(b)

    3,010       61,825  

Vuzix Corp.(a)(b)

    13,996       149,617  
   

 

 

 
          8,437,940  
Household Products — 0.4%            

Central Garden & Pet Co.(a)

    878       45,287  

Central Garden & Pet Co., Class A, NVS(a)

    3,691       170,524  

Energizer Holdings Inc.

    7,285       265,684  

Spectrum Brands Holdings Inc.

    5,271       494,157  

WD-40 Co.

    3,248       737,296  
   

 

 

 
      1,712,948  
Independent Power and Renewable Electricity Producers — 0.5%  

Clearway Energy Inc., Class A

    4,704       155,185  

Clearway Energy Inc., Class C

    10,857       385,206  

Ormat Technologies Inc.

    10,615       767,783  

Sunnova Energy International Inc.(a)(b)

    22,010       980,766  
   

 

 

 
      2,288,940  
Industrial Conglomerates — 0.1%            

Raven Industries Inc.(a)

    5,084       293,957  
   

 

 

 
Insurance — 2.0%            

AMERISAFE Inc.

    1,609       95,398  

Assured Guaranty Ltd.

    7,608       422,853  

BRP Group Inc., Class A(a)

    12,322       449,753  

eHealth Inc.(a)

    5,647       250,444  

Enstar Group Ltd.(a)

    1,286       296,783  

GoHealth Inc., Class A(a)(b)

    15,916       85,946  

Goosehead Insurance Inc., Class A

    4,597       663,347  

HCI Group Inc.

    922       123,557  

Kinsale Capital Group Inc.

    5,076       949,973  

Lemonade Inc.(a)(b)

    9,034       561,553  

Mercury General Corp.

    2,779       151,428  

Oscar Health Inc., Class A(a)

    9,184       158,700  

Palomar Holdings Inc.(a)(b)

    5,718       522,911  

Primerica Inc.

    5,407       909,674  

RLI Corp.

    9,419       1,020,172  

Root Inc./OH, Class A(a)(b)

    20,953       97,222  

Safety Insurance Group Inc.

    1,361       106,716  

Selective Insurance Group Inc.

    5,725       448,668  

Selectquote Inc.(a)

    29,516       392,268  

Stewart Information Services Corp.

    2,579       183,547  

Trupanion Inc.(a)(b)

    8,055       824,832  

United Fire Group Inc.

    2,270       46,376  

White Mountains Insurance Group Ltd.

    736       776,473  
   

 

 

 
      9,538,594  
Interactive Media & Services — 1.4%            

ANGI Inc.(a)(b)

    18,008       225,640  

Cargurus Inc.(a)

    20,361       682,908  

Eventbrite Inc., Class A(a)

    8,892       179,974  

EverQuote Inc., Class A(a)

    4,591       63,310  

fuboTV Inc.(a)(b)

    33,531       999,559  

IZEA Worldwide Inc.(a)(b)

    16,222       33,093  

MediaAlpha Inc., Class A(a)

    4,933       86,476  

QuinStreet Inc.(a)

    11,618       162,652  

Takung Art Co. Ltd.(a)(b)

    1,507       9,087  

TripAdvisor Inc.(a)

    10,839       357,362  

TrueCar Inc.(a)

    10,948       45,872  
Security   Shares     Value  
Interactive Media & Services (continued)            

Yelp Inc.(a)

    5,486     $ 211,924  

Zedge Inc., Class B(a)

    3,002       34,613  

Ziff Davis Inc.(a)

    5,442       698,045  

ZoomInfo Technologies Inc., Class A(a)

    42,921       2,885,150  
   

 

 

 
          6,675,665  
Internet & Direct Marketing Retail — 0.9%            

1-800-Flowers.com Inc., Class A(a)(b)

    6,263       201,168  

CarParts.com Inc.(a)(b)

    10,822       164,819  

Duluth Holdings Inc., Class B(a)

    1,973       28,273  

Groupon Inc.(a)(b)

    2,593       55,023  

Lands’ End Inc.(a)(b)

    1,667       43,809  

Liquidity Services Inc.(a)

    4,063       89,711  

Overstock.com Inc.(a)(b)

    10,191       970,489  

PetMed Express Inc.

    2,371       67,408  

Poshmark Inc., Class A(a)(b)

    3,641       88,586  

Quotient Technology Inc.(a)

    20,834       134,171  

RealReal Inc. (The)(a)

    18,976       247,257  

Remark Holdings Inc.(a)(b)

    23,403       49,380  

Revolve Group Inc.(a)(b)

    8,999       675,285  

Shutterstock Inc.

    5,520       668,748  

Stitch Fix Inc., Class A(a)

    16,913       585,190  

ThredUp Inc., Class A(a)(b)

    5,075       109,823  

Waitr Holdings Inc.(a)(b)

    14,362       27,862  
   

 

 

 
      4,207,002  
IT Services — 2.1%            

BigCommerce Holdings Inc., Series 1(a)

    13,985       646,247  

Brightcove Inc.(a)

    9,610       95,331  

Cantaloupe Inc.(a)

    13,733       171,662  

Cass Information Systems Inc.

    1,189       48,737  

DigitalOcean Holdings Inc.(a)

    4,045       394,752  

EVERTEC Inc.

    7,862       355,441  

Evo Payments Inc., Class A(a)

    11,146       241,645  

ExlService Holdings Inc.(a)

    4,666       572,192  

Fastly Inc., Class A(a)(b)

    25,110       1,270,817  

GreenBox POS(a)(b)

    4,450       36,134  

Grid Dynamics Holdings Inc.(a)

    10,239       294,371  

Hackett Group Inc. (The)

    2,261       47,797  

I3 Verticals Inc., Class A(a)

    5,177       115,913  

International Money Express Inc.(a)

    5,137       85,993  

Limelight Networks Inc.(a)

    19,690       58,676  

LiveRamp Holdings Inc.(a)

    16,006       856,481  

Maximus Inc.

    9,018       762,652  

MoneyGram International Inc.(a)

    8,178       48,823  

Paya Holdings Inc., Class A(a)(b)

    19,199       174,903  

Paysign Inc.(a)(b)

    4,794       12,081  

Perficient Inc.(a)

    5,076       627,394  

Rackspace Technology Inc.(a)(b)

    14,675       195,031  

Repay Holdings Corp.(a)(b)

    17,458       366,793  

Shift4 Payments Inc., Class A(a)(b)

    11,189       706,362  

SolarWinds Corp.(b)

    6,888       110,897  

Switch Inc., Class A

    29,766       752,484  

TTEC Holdings Inc.

    4,315       407,293  

Tucows Inc., Class A(a)

    2,211       181,965  

Verra Mobility Corp.(a)

    21,790       324,235  
   

 

 

 
      9,963,102  
Leisure Products — 0.3%            

American Outdoor Brands Inc.(a)

    2,208       50,298  

AMMO Inc.(a)(b)

    20,248       122,298  

Callaway Golf Co.(a)

    27,755       750,773  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  69


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Leisure Products (continued)            

Clarus Corp.

    5,692     $ 156,985  

Genius Brands International Inc.(a)(b)

    70,078       97,409  

Johnson Outdoors Inc., Class A

    1,063       112,869  

Malibu Boats Inc., Class A(a)

    2,946       208,017  

Nautilus Inc.(a)(b)

    3,411       34,895  
   

 

 

 
      1,533,544  
Life Sciences Tools & Services — 1.7%            

Adaptive Biotechnologies Corp.(a)

    25,542       853,358  

Berkeley Lights Inc.(a)

    9,743       226,525  

BioNano Genomics Inc.(a)(b)

    65,740       333,959  

ChromaDex Corp.(a)

    13,144       81,361  

Codexis Inc.(a)

    13,853       481,669  

Fluidigm Corp.(a)(b)

    5,870       30,231  

Maravai LifeSciences Holdings Inc., Class A(a)

    10,162       429,751  

Medpace Holdings Inc.(a)

    6,778       1,535,556  

NanoString Technologies Inc.(a)

    10,720       517,776  

NeoGenomics Inc.(a)(b)

    29,049       1,336,254  

Pacific Biosciences of California Inc.(a)

    47,084       1,246,784  

Personalis Inc.(a)

    8,367       164,161  

Quanterix Corp.(a)

    7,914       400,528  

Seer Inc., Class A(a)(b)

    8,269       305,291  
   

 

 

 
          7,943,204  
Machinery — 4.0%            

AgEagle Aerial Systems Inc.(a)(b)

    16,990       48,761  

Agrify Corp.(a)

    4,111       65,776  

Alamo Group Inc.

    1,187       179,474  

Albany International Corp., Class A

    4,943       398,653  

Altra Industrial Motion Corp.

    8,397       437,904  

Astec Industries Inc.

    3,385       180,691  

Barnes Group Inc.

    4,193       175,854  

Chart Industries Inc.(a)

    8,392       1,489,748  

CIRCOR International Inc.(a)

    1,536       43,837  

Colfax Corp.(a)(b)

    20,650       1,065,953  

Columbus McKinnon Corp./NY

    4,346       205,435  

Desktop Metal Inc., Class A(a)

    34,994       244,608  

Douglas Dynamics Inc.

    2,752       116,410  

Energy Recovery Inc.(a)

    9,018       183,246  

Enerpac Tool Group Corp.

    14,179       296,199  

EnPro Industries Inc.

    2,072       185,776  

ESCO Technologies Inc.

    6,193       523,680  

Evoqua Water Technologies Corp.(a)

    28,452       1,190,147  

ExOne Co. (The)(a)

    4,098       94,336  

Federal Signal Corp.

    8,501       363,928  

Flowserve Corp.

    15,874       533,684  

Franklin Electric Co. Inc.

    9,242       798,324  

Gorman-Rupp Co. (The)

    2,672       113,613  

Greenbrier Companies Inc. (The)

    3,079       126,301  

Helios Technologies Inc.

    7,604       692,344  

Hillenbrand Inc.

    9,009       409,549  

Hydrofarm Holdings Group Inc.(a)(b)

    8,379       276,256  

Hyster-Yale Materials Handling Inc.

    760       36,510  

Ideanomics Inc.(a)(b)

    89,268       176,751  

John Bean Technologies Corp.

    5,349       790,315  

Kadant Inc.

    1,636       363,388  

Lindsay Corp.

    2,569       374,226  

Luxfer Holdings PLC

    3,041       61,155  

Mueller Industries Inc.

    6,091       320,630  

Mueller Water Products Inc., Class A

    22,695       372,425  

Omega Flex Inc.

    713       103,214  
Security   Shares     Value  
Machinery (continued)            

Proto Labs Inc.(a)

    6,603     $ 394,925  

RBC Bearings Inc.(a)(b)

    6,713       1,570,372  

Shyft Group Inc. (The)(b)

    7,577       312,248  

SPX Corp.(a)(b)

    5,325       309,329  

SPX FLOW Inc.

    9,867       737,164  

Standex International Corp.

    1,413       157,225  

Tennant Co.

    2,045       162,496  

Terex Corp.

    11,899       533,075  

Titan International Inc.(a)

    11,963       86,373  

Trinity Industries Inc.

    12,519       351,158  

Wabash National Corp.

    3,884       60,319  

Watts Water Technologies Inc., Class A

    3,768       715,995  

Welbilt Inc.(a)

    17,330       410,028  
   

 

 

 
        18,839,808  
Marine — 0.2%            

Genco Shipping & Trading Ltd.

    5,524       94,847  

Kirby Corp.(a)

    5,903       309,376  

Matson Inc.

    4,978       414,568  
   

 

 

 
      818,791  
Media — 0.8%            

Advantage Solutions Inc.(a)

    10,696       91,344  

Boston Omaha Corp., Class A(a)

    4,030       142,864  

Cardlytics Inc.(a)

    7,780       611,975  

EW Scripps Co. (The), Class A

    6,787       126,238  

Fluent Inc.(a)(b)

    7,298       17,369  

Gray Television Inc.

    11,866       278,139  

Iheartmedia Inc., Class A(a)

    14,535       281,688  

Loral Space & Communications Inc.

    1,365       68,004  

Magnite Inc.(a)

    27,045       731,027  

Nexstar Media Group Inc., Class A

    5,647       846,655  

PubMatic Inc., Class A(a)

    4,671       133,497  

Sinclair Broadcast Group Inc., Class A

    6,002       156,832  

TechTarget Inc.(a)(b)

    6,023       568,029  
   

 

 

 
      4,053,661  
Metals & Mining — 0.5%            

Allegheny Technologies Inc.(a)

    16,208       260,949  

Arconic Corp.(a)

    8,309       244,451  

Century Aluminum Co.(a)

    8,009       105,799  

Compass Minerals International Inc.

    4,372       286,803  

Comstock Mining Inc.(a)

    9,150       20,404  

Gatos Silver Inc.(a)

    10,841       131,176  

Gold Resource Corp.

    7,814       14,378  

Hecla Mining Co.

    57,600       332,928  

Materion Corp.

    3,129       225,851  

MP Materials Corp.(a)(b)

    17,582       595,151  
   

 

 

 
      2,217,890  
Mortgage Real Estate Investment — 0.2%            

Broadmark Realty Capital Inc.

    31,613       326,246  

Ellington Financial Inc.

    4,489       81,610  

Hannon Armstrong Sustainable Infrastructure Capital Inc.

    11,052       667,541  
   

 

 

 
      1,075,397  
Multiline Retail — 0.2%            

Ollie’s Bargain Outlet Holdings Inc.(a)(b)

    14,369       972,206  
   

 

 

 
Oil, Gas & Consumable Fuels — 0.5%            

Aemetis Inc.(a)

    2,912       57,949  

Altus Midstream Co., Class A

    500       30,910  

Brigham Minerals Inc., Class A

    5,373       124,546  

Centrus Energy Corp., Class A(a)(b)

    1,155       65,454  
 

 

 

70  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)  

Clean Energy Fuels Corp.(a)

    40,464     $ 373,078  

Contango Oil & Gas Co.(a)

    31,253       129,075  

Denbury Inc.(a)

    11,865       1,004,491  

Gevo Inc.(a)(b)

    47,122       340,692  

Tellurian Inc.(a)(b)

    62,479       244,918  

Uranium Energy Corp.(a)(b)

    54,931       204,343  
   

 

 

 
      2,575,456  
Paper & Forest Products — 0.0%  

Glatfelter Corp.

    4,100       67,363  

Mercer International Inc.

    4,747       51,125  
   

 

 

 
      118,488  
Personal Products — 0.3%  

BellRing Brands Inc., Class A(a)

    4,939       132,464  

elf Beauty Inc.(a)

    7,233       233,698  

Inter Parfums Inc.

    4,235       391,229  

LifeMD Inc.(a)

    4,631       23,109  

Medifast Inc.

    2,787       547,004  

USANA Health Sciences Inc.(a)(b)

    1,426       138,408  

Veru Inc.(a)

    14,075       114,993  
   

 

 

 
          1,580,905  
Pharmaceuticals — 1.4%  

AcelRx Pharmaceuticals Inc.(a)

    29,676       26,115  

Aclaris Therapeutics Inc.(a)

    10,784       187,102  

Aerie Pharmaceuticals Inc.(a)(b)

    7,364       78,279  

Agile Therapeutics Inc.(a)

    19,878       15,771  

Amphastar Pharmaceuticals Inc.(a)

    4,722       88,207  

Ampio Pharmaceuticals Inc.(a)(b)

    44,342       69,174  

Angion Biomedica Corp.(a)(b)

    1,165       4,858  

Antares Pharma Inc.(a)

    40,028       149,705  

Arvinas Inc.(a)

    10,202       883,289  

Axsome Therapeutics Inc.(a)(b)

    6,990       269,115  

Aytu BioPharma Inc.(a)

    3,013       7,502  

BioDelivery Sciences International Inc.(a)(b)

    13,778       56,214  

Cassava Sciences Inc.(a)(b)

    8,860       382,132  

cbdMD Inc.(a)

    5,017       8,880  

Citius Pharmaceuticals Inc.(a)

    29,700       55,539  

Corcept Therapeutics Inc.(a)

    24,572       442,296  

CorMedix Inc.(a)(b)

    9,536       46,345  

Cymabay Therapeutics Inc.(a)

    9,495       37,031  

Durect Corp.(a)

    56,002       71,683  

Eton Pharmaceuticals Inc.(a)

    4,865       28,022  

Evolus Inc.(a)

    8,428       65,907  

EyePoint Pharmaceuticals Inc.(a)(b)

    5,081       58,279  

Fulcrum Therapeutics Inc.(a)

    3,592       79,527  

Hepion Pharmaceuticals Inc.(a)(b)

    9,449       13,512  

Intra-Cellular Therapies Inc.(a)

    12,601       542,725  

Jaguar Health Inc.(a)

    10,521       22,410  

Kala Pharmaceuticals Inc.(a)(b)

    11,341       19,733  

KemPharm Inc.(a)(b)

    7,183       68,239  

Lannett Co. Inc.(a)(b)

    4,353       11,884  

Marinus Pharmaceuticals Inc.(a)(b)

    3,593       41,320  

Nektar Therapeutics(a)

    18,284       277,185  

NGM Biopharmaceuticals Inc.(a)

    4,807       88,785  

Novan Inc.(a)(b)

    2,051       13,680  

Ocular Therapeutix Inc.(a)

    18,035       119,752  

Odonate Therapeutics Inc.(a)(b)

    3,246       9,965  

Omeros Corp.(a)(b)

    14,679       92,037  

Onconova Therapeutics Inc.(a)(b)

    2,094       7,245  

Optinose Inc.(a)(b)

    8,407       22,279  
Security   Shares     Value  
Pharmaceuticals (continued)  

Oramed Pharmaceuticals Inc.(a)(b)

    7,656     $ 179,227  

Pacira BioSciences Inc.(a)

    10,557       551,920  

Paratek Pharmaceuticals Inc.(a)

    4,879       24,493  

Pliant Therapeutics Inc.(a)

    2,423       38,598  

Provention Bio Inc.(a)

    7,021       43,952  

Reata Pharmaceuticals Inc., Class A(a)(b)

    4,596       441,262  

Relmada Therapeutics Inc.(a)

    1,991       46,729  

Revance Therapeutics Inc.(a)

    15,563       213,991  

SCYNEXIS Inc.(a)(b)

    4,609       23,091  

Seelos Therapeutics Inc.(a)(b)

    14,384       31,069  

SIGA Technologies Inc.(a)(b)

    4,028       29,042  

TFF Pharmaceuticals Inc.(a)(b)

    2,079       16,029  

TherapeuticsMD Inc.(a)

    93,821       68,302  

Theravance Biopharma Inc.(a)(b)

    12,614       98,011  

VYNE Therapeutics Inc.(a)(b)

    13,183       17,665  

WaVe Life Sciences Ltd.(a)

    9,565       43,903  

Xeris Biopharma Holdings Inc.(a)(b)

    24,814       46,154  

Zogenix Inc.(a)

    11,847       181,615  
   

 

 

 
      6,556,776  
Professional Services — 2.2%  

Acacia Research Corp.(a)

    12,121       69,453  

ASGN Inc.(a)

    6,217       743,926  

Barrett Business Services Inc.

    590       48,380  

CACI International Inc., Class A(a)

    2,108       606,345  

CBIZ Inc.(a)

    7,479       274,554  

CRA International Inc.

    1,051       115,421  

Exponent Inc.

    12,310       1,413,188  

Forrester Research Inc.(a)

    1,902       101,282  

Franklin Covey Co.(a)(b)

    2,934       123,961  

FTI Consulting Inc.(a)

    8,111       1,167,335  

Heidrick & Struggles International Inc.

    2,356       110,449  

Huron Consulting Group Inc.(a)

    2,433       122,039  

ICF International Inc.

    1,954       196,357  

Insperity Inc.

    8,495       1,061,875  

Kelly Services Inc., Class A, NVS

    3,019       54,433  

Kforce Inc.

    3,137       203,152  

Korn Ferry

    13,167       1,016,624  

ManpowerGroup Inc.

    5,283       510,602  

TriNet Group Inc.(a)

    9,508       962,685  

TrueBlue Inc.(a)(b)

    3,823       106,471  

Upwork Inc.(a)

    28,349       1,335,805  

Willdan Group Inc.(a)(b)

    1,413       47,237  
   

 

 

 
        10,391,574  
Real Estate Management & Development — 0.6%  

eXp World Holdings Inc.

    15,615       805,734  

Fathom Holdings Inc.(a)(b)

    1,255       31,739  

Howard Hughes Corp. (The)(a)

    4,881       425,281  

Marcus & Millichap Inc.(a)

    2,229       104,986  

Redfin Corp.(a)

    24,797       1,273,078  

St Joe Co. (The)

    7,808       367,132  
   

 

 

 
      3,007,950  
Road & Rail — 0.7%  

ArcBest Corp.

    3,188       286,442  

Daseke Inc.(a)(b)

    7,999       75,591  

HyreCar Inc.(a)

    4,251       28,864  

Landstar System Inc.

    5,589       982,602  

Saia Inc.(a)

    6,225       1,946,184  
   

 

 

 
      3,319,683  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  71


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Semiconductors & Semiconductor Equipment — 4.4%  

ACM Research Inc., Class A(a)

    2,872     $ 304,920  

Allegro MicroSystems Inc.(a)

    12,952       432,079  

Alpha & Omega Semiconductor Ltd.(a)(b)

    2,309       80,007  

Ambarella Inc.(a)

    8,577       1,593,864  

Amkor Technology Inc.

    11,037       241,931  

Atomera Inc.(a)

    5,113       110,492  

Axcelis Technologies Inc.(a)

    7,907       434,331  

AXT Inc.(a)

    5,827       47,607  

CEVA Inc.(a)

    5,403       246,431  

Cirrus Logic Inc.(a)

    8,309       671,450  

CMC Materials Inc.

    4,045       519,257  

Cohu Inc.(a)

    11,444       366,666  

CyberOptics Corp.(a)

    1,823       76,128  

Diodes Inc.(a)

    4,619       443,840  

DSP Group Inc.(a)

    5,497       120,769  

eMagin Corp.(a)(b)

    16,007       38,417  

FormFactor Inc.(a)

    18,293       727,695  

Ichor Holdings Ltd.(a)

    4,332       189,395  

Impinj Inc.(a)

    4,405       307,117  

Kopin Corp.(a)

    18,499       96,935  

Kulicke & Soffa Industries Inc.

    14,684       836,988  

Lattice Semiconductor Corp.(a)

    32,210       2,236,662  

MACOM Technology Solutions Holdings Inc., Class H(a)

    11,341       791,829  

Magnachip Semiconductor Corp.(a)

    10,911       206,873  

MaxLinear Inc.(a)

    16,663       1,049,769  

Meta Materials Inc.(a)(b)

    29,678       139,487  

NeoPhotonics Corp.(a)

    5,932       60,032  

NVE Corp.

    1,199       81,496  

Onto Innovation Inc.(a)

    7,563       599,065  

PDF Solutions Inc.(a)

    7,154       168,334  

Pixelworks Inc.(a)

    12,001       49,084  

Power Integrations Inc.

    14,254       1,471,155  

Rambus Inc.(a)

    9,372       218,086  

Semtech Corp.(a)

    15,347       1,304,955  

Silicon Laboratories Inc.(a)

    9,604       1,812,851  

SiTime Corp.(a)

    3,008       796,789  

SMART Global Holdings Inc.(a)

    2,949       157,653  

SunPower Corp.(a)(b)

    19,708       663,371  

Synaptics Inc.(a)(b)

    4,115       800,656  

Ultra Clean Holdings Inc.(a)

    5,738       284,433  

Veeco Instruments Inc.(a)(b)

    4,873       118,365  
   

 

 

 
        20,897,264  
Software — 11.4%  

8x8 Inc.(a)

    26,385       597,884  

A10 Networks Inc.(a)

    13,929       260,333  

ACI Worldwide Inc.(a)

    27,817       853,426  

Agilysys Inc.(a)

    4,573       218,224  

Alarm.com Holdings Inc.(a)

    10,870       915,906  

Altair Engineering Inc., Class A(a)(b)

    10,974       853,667  

Alteryx Inc., Class A(a)(b)

    14,069       1,029,710  

American Software Inc./GA, Class A

    4,436       128,333  

Appfolio Inc., Class A(a)(b)

    4,452       586,284  

Appian Corp.(a)

    9,373       931,770  

Asana Inc., Class A(a)

    18,437       2,503,745  

AudioEye Inc.(a)

    1,725       17,147  

Blackbaud Inc.(a)

    3,922       278,501  

Blackline Inc.(a)(b)

    12,564       1,593,995  

Bottomline Technologies DE Inc.(a)

    9,262       428,831  

Box Inc., Class A(a)

    36,330       938,404  

C3.ai Inc., Class A(a)(b)

    16,483       743,713  
Security   Shares     Value  
Software (continued)  

CDK Global Inc.

    11,573     $ 503,657  

Cerence Inc.(a)(b)

    9,001       946,275  

ChannelAdvisor Corp.(a)

    4,855       123,851  

Cleanspark Inc.(a)(b)

    8,041       162,911  

CommVault Systems Inc.(a)

    6,596       405,654  

Datto Holding Corp.(a)(b)

    6,116       146,172  

Digimarc Corp.(a)(b)

    3,029       153,055  

Digital Turbine Inc.(a)

    20,663       1,778,258  

Dolby Laboratories Inc., Class A

    15,440       1,364,124  

Domo Inc., Class B(a)(b)

    6,691       591,150  

Duck Creek Technologies Inc.(a)

    17,781       560,102  

eGain Corp.(a)

    4,981       51,404  

Envestnet Inc.(a)

    12,875       1,075,062  

Everbridge Inc.(a)(b)

    9,078       1,446,216  

Intelligent Systems Corp.(a)

    1,498       63,410  

InterDigital Inc.

    7,231       484,115  

Jamf Holding Corp.(a)(b)

    12,901       614,733  

JFrog Ltd.(a)(b)

    10,161       332,163  

Kaleyra Inc.(a)(b)

    4,031       45,994  

KnowBe4 Inc., Class A(a)(b)

    5,220       122,044  

LivePerson Inc.(a)(b)

    15,289       787,536  

MANDIANT Inc.(a)

    56,366       983,023  

Marathon Digital Holdings Inc.(a)

    23,428           1,223,879  

McAfee Corp., Class A

    9,961       212,867  

MicroStrategy Inc., Class A(a)(b)

    1,841       1,316,425  

Mimecast Ltd.(a)

    14,467       1,091,390  

Mitek Systems Inc.(a)

    10,367       195,211  

Model N Inc.(a)

    7,726       250,400  

Momentive Global Inc.(a)

    30,224       692,734  

nCino Inc.(a)(b)

    13,268       964,053  

New Relic Inc.(a)

    13,753       1,116,193  

Nutanix Inc., Class A(a)

    23,421       803,575  

Olo Inc., Class A(a)(b)

    6,509       177,175  

ON24 Inc.(a)

    2,223       42,526  

OneSpan Inc.(a)

    8,143       166,280  

Pagerduty Inc.(a)

    17,531       731,919  

Ping Identity Holding Corp.(a)

    11,600       328,628  

Progress Software Corp.

    5,852       300,851  

PROS Holdings Inc.(a)

    9,407       282,210  

Q2 Holdings Inc.(a)(b)

    13,306       1,043,989  

QAD Inc., Class A

    2,745       240,572  

Qualtrics International Inc., Class A(a)(b)

    14,861       688,362  

Qualys Inc.(a)(b)

    7,929       987,002  

Rapid7 Inc.(a)

    13,183       1,697,311  

Rekor Systems Inc.(a)(b)

    7,539       102,530  

Rimini Street Inc.(a)

    5,159       53,705  

Riot Blockchain Inc.(a)

    19,433       528,966  

SailPoint Technologies Holdings Inc.(a)(b)

    21,902       1,050,858  

SEMrush Holdings Inc., Class A(a)

    2,709       66,073  

ShotSpotter Inc.(a)

    1,974       76,808  

Smith Micro Software Inc.(a)(b)

    10,920       62,244  

Sprout Social Inc., Class A(a)

    10,659       1,360,941  

SPS Commerce Inc.(a)

    8,473       1,294,081  

Sumo Logic Inc.(a)(b)

    20,122       347,507  

Telos Corp.(a)(b)

    12,416       321,699  

Tenable Holdings Inc.(a)

    21,424       1,140,828  

Teradata Corp.(a)

    25,791       1,458,739  

Upland Software Inc.(a)

    6,159       205,526  

Varonis Systems Inc.(a)

    25,269       1,635,915  

Verint Systems Inc.(a)(b)

    7,702       358,913  
 

 

 

72  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)  

Veritone Inc.(a)

    6,718     $ 200,935  

Viant Technology Inc., Class A(a)

    3,262       38,329  

VirnetX Holding Corp.(a)

    7,127       27,439  

Vonage Holdings Corp.(a)

    41,444       668,077  

Workiva Inc.(a)

    10,171       1,521,073  

Xperi Holding Corp.

    11,783       211,151  

Yext Inc.(a)(b)

    26,758       336,883  

Zix Corp.(a)

    6,061       51,337  

Zuora Inc., Class A(a)(b)

    26,236       573,519  
   

 

 

 
        53,868,410  
Specialty Retail — 1.3%  

Abercrombie & Fitch Co., Class A(a)

    8,173       323,160  

America’s Car-Mart Inc./TX(a)

    704       84,121  

Arko Corp.(a)

    7,311       70,112  

Asbury Automotive Group Inc.(a)(b)

    2,695       527,438  

Boot Barn Holdings Inc.(a)

    6,955       726,728  

Camping World Holdings Inc., Class A

    5,249       195,525  

Citi Trends Inc.(a)

    2,187       169,186  

Container Store Group Inc. (The)(a)

    3,050       33,733  

GrowGeneration Corp.(a)(b)

    12,332       259,959  

Guess? Inc.

    4,663       96,571  

Haverty Furniture Companies Inc.

    1,571       45,088  

JOANN Inc.(b)

    1,851       18,917  

Lazydays Holdings Inc.(a)

    967       20,394  

Leslie’s Inc.(a)(b)

    30,929       639,612  

LMP Automotive Holdings Inc.(a)(b)

    1,677       23,847  

Lumber Liquidators Holdings Inc.(a)(b)

    4,009       72,483  

MarineMax Inc.(a)

    2,814       145,737  

Monro Inc.

    5,548       342,644  

National Vision Holdings Inc.(a)

    19,265       1,187,495  

OneWater Marine Inc., Class A

    1,191       52,809  

Petco Health & Wellness Co. Inc.(a)

    19,201       474,841  

Sportsman’s Warehouse Holdings Inc.(a)

    5,188       89,545  

Vroom Inc.(a)(b)

    29,942       572,790  

Winmark Corp.

    297       69,148  

Zumiez Inc.(a)(b)

    2,453       99,837  
   

 

 

 
      6,341,720  
Technology Hardware, Storage & Peripherals — 0.6%  

3D Systems Corp.(a)(b)

    29,494       830,551  

Boxlight Corp., Class A(a)

    7,216       16,092  

Corsair Gaming Inc.(a)(b)

    4,568       111,688  

Immersion Corp.(a)

    3,397       27,142  

Pure Storage Inc., Class A(a)

    62,921       1,690,058  

Turtle Beach Corp.(a)(b)

    2,406       69,196  
   

 

 

 
      2,744,727  
Textiles, Apparel & Luxury Goods — 1.6%  

Carter’s Inc.

    6,616       651,808  

Columbia Sportswear Co.

    8,282       860,003  

Crocs Inc.(a)

    14,736       2,379,127  

Lakeland Industries Inc.(a)

    724       15,139  

Levi Strauss & Co., Class A

    21,735       569,022  

Oxford Industries Inc.

    1,664       154,286  

PLBY Group Inc.(a)

    4,810       135,065  

Ralph Lauren Corp.

    5,902       750,557  

Rocky Brands Inc.

    883       48,168  

Skechers U.S.A. Inc., Class A(a)

    20,466       945,734  

Steven Madden Ltd.

    8,007       361,116  

Unifi Inc.(a)

    1,380       33,148  
Security   Shares     Value  
Textiles, Apparel & Luxury Goods (continued)  

Wolverine World Wide Inc.

    19,361     $ 642,204  
   

 

 

 
      7,545,377  
Thrifts & Mortgage Finance — 0.6%            

Axos Financial Inc.(a)

    4,745       251,485  

Columbia Financial Inc.(a)

    9,233       171,918  

Kearny Financial Corp./MD

    8,997       120,740  

loanDepot Inc., Class A

    2,426       15,915  

Merchants Bancorp./IN

    2,659       118,139  

Meridian Bancorp. Inc.

    7,153       165,950  

Mr Cooper Group Inc.(a)

    9,337       409,334  

NMI Holdings Inc., Class A(a)

    9,204       223,473  

Premier Financial Corp.

    5,010       159,719  

Radian Group Inc.

    18,842       449,759  

TFS Financial Corp.

    5,320       103,527  

Walker & Dunlop Inc.

    3,266       424,809  

Waterstone Financial Inc.

    2,078       42,952  

WSFS Financial Corp.

    6,124       317,284  
   

 

 

 
      2,975,004  
Tobacco — 0.1%  

22nd Century Group Inc.(a)(b)

    38,326       105,013  

Turning Point Brands Inc.

    3,386       129,244  

Vector Group Ltd.

    12,485       165,551  
   

 

 

 
      399,808  
Trading Companies & Distributors — 0.6%  

Applied Industrial Technologies Inc.

    3,390       330,457  

Beacon Roofing Supply Inc.(a)

    5,268       278,519  

BlueLinx Holdings Inc.(a)(b)

    1,542       73,446  

Custom Truck One Source Inc.(a)(b)

    11,616       105,125  

DXP Enterprises Inc./TX(a)

    2,211       72,875  

GATX Corp.

    3,844       364,603  

Global Industrial Co.

    3,733       151,485  

H&E Equipment Services Inc.

    3,438       154,985  

Herc Holdings Inc.

    3,868       704,131  

McGrath RentCorp.

    2,215       159,790  

Rush Enterprises Inc., Class A

    3,563       185,561  

Titan Machinery Inc.(a)

    2,443       69,430  
   

 

 

 
      2,650,407  
Water Utilities — 0.3%  

American States Water Co.

    5,037       457,561  

California Water Service Group

    7,185       437,423  

Middlesex Water Co.

    2,193       241,493  

SJW Group

    3,593       236,851  
   

 

 

 
      1,373,328  
Wireless Telecommunication Services — 0.1%  

Gogo Inc.(a)(b)

    7,726       125,625  

Shenandoah Telecommunications Co.

    11,916       329,358  
   

 

 

 
      454,983  
   

 

 

 

Total Common Stocks — 99.5%
(Cost: $456,431,806)

       471,352,292  
   

 

 

 

Preferred Stocks

   

Semiconductors & Semiconductor Equipment — 0.0%

 

Meta Materials Inc., Preference Shares, NVS(b)

    17,900       22,912  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $17,319)

      22,912  
   

 

 

 
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  73


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Short-Term Investments

   
Money Market Funds — 13.9%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    64,728,407     $ 64,760,771  
   

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    1,180,000       1,180,000  
   

 

 

 
      65,940,771  
   

 

 

 

Total Short-Term Investments — 13.9%
(Cost: $65,921,352)

      65,940,771  
   

 

 

 

Total Investments in Securities — 113.4%
(Cost: $522,370,477)

      537,315,975  

Other Assets, Less Liabilities — (13.4)%

      (63,548,070
   

 

 

 

Net Assets — 100.0%

    $  473,767,905  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

04/30/21

    

Purchases

at Cost

   

Proceeds

from Sales

   

Net Realized

Gain (Loss)

   

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

10/31/21

    

Shares

Held at

10/31/21

     Income    

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 78,109,325      $     $ (13,346,419 )(a)    $ (5,863   $ 3,728      $ 64,760,771        64,728,407      $ 166,036 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    960,000        220,000 (a)                         1,180,000        1,180,000        22        
        

 

 

   

 

 

    

 

 

       

 

 

   

 

 

 
         $ (5,863   $ 3,728      $ 65,940,771         $ 166,058     $  
        

 

 

   

 

 

    

 

 

       

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description  

Number of

Contracts

    

Expiration

Date

    

Notional

Amount

(000)

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

          

E-Mini Technology Select Sector Index

    2        12/17/21      $ 325      $ 19,361  

Russell 2000 E-Mini Index

    9        12/17/21        1,033        26,329  
          

 

 

 
           $ 45,690  
          

 

 

 

 

 

74  

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Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Growth ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
   

Equity

Contracts

 

 

 

Assets — Derivative Financial Instruments

 

Futures contracts

 

Unrealized appreciation on futures contracts(a)

  $ 45,690  
 

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
   

Equity

Contracts

 

 

 

Net Realized Gain (Loss) from:

 

Futures contracts

  $ 40,395  
 

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

 

Futures contracts

  $ 45,949  
 

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

 

Average notional value of contracts — long

  $ 961,560  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
    Level 1          Level 2              Level 3          Total  

 

 

Investments

          

Assets

          

Common Stocks

  $ 471,352,292      $      $      $ 471,352,292  

Preferred Stocks

    22,912                      22,912  

Money Market Funds

    65,940,771                      65,940,771  
 

 

 

    

 

 

    

 

 

    

 

 

 
  $ 537,315,975      $      $      $ 537,315,975  
 

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

          

Assets

          

Futures Contracts

  $ 45,690      $      $      $ 45,690  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  75


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Common Stocks

   
Aerospace & Defense — 1.0%  

AAR Corp.(a)

    7,301     $ 258,236  

Aerojet Rocketdyne Holdings Inc.

    7,578       333,508  

Astronics Corp.(a)

    5,468       70,537  

BWX Technologies Inc.

    8,868       503,170  

Curtiss-Wright Corp.

    5,113       652,828  

Ducommun Inc.(a)

    2,362       114,297  

Kaman Corp.

    3,236       115,816  

Maxar Technologies Inc.

    10,363       275,138  

Moog Inc., Class A

    6,374       481,428  

National Presto Industries Inc.

    675       56,126  

PAE Inc.(a)

    7,168       71,107  

Parsons Corp.(a)(b)

    5,843       202,402  

Spirit AeroSystems Holdings Inc., Class A

    14,098       582,106  

Triumph Group Inc.(a)

    14,084       288,018  

Vectrus Inc.(a)

    2,543       123,158  
   

 

 

 
   

 

 

 

    4,127,875

 

 

Air Freight & Logistics — 0.4%  

Air Transport Services Group Inc.(a)

    8,077       201,036  

Atlas Air Worldwide Holdings Inc.(a)

    5,866       475,850  

Echo Global Logistics Inc.(a)

    3,016       145,462  

Forward Air Corp.

    3,275       329,334  

Hub Group Inc., Class A(a)

    3,895       306,030  
   

 

 

 
   

 

 

 

1,457,712

 

 

Airlines — 0.4%  

Frontier Group Holdings Inc.(a)

    4,090       64,009  

Hawaiian Holdings Inc.(a)

    11,141       215,578  

JetBlue Airways Corp.(a)

    69,054       968,828  

Mesa Air Group Inc.(a)

    6,773       51,068  

SkyWest Inc.(a)

    5,316       228,748  

Spirit Airlines Inc.(a)(b)

    11,545       252,258  
   

 

 

 
   

 

 

 

1,780,489

 

 

Auto Components — 1.2%  

Adient PLC(a)

    20,562       855,790  

American Axle & Manufacturing Holdings Inc.(a)

    25,011       227,100  

Cooper-Standard Holdings Inc.(a)

    3,786       98,209  

Dana Inc.

    31,666       702,668  

Goodyear Tire & Rubber Co. (The)(a)

    61,198       1,170,106  

LCI Industries

    2,493       348,122  

Modine Manufacturing Co.(a)

    11,189       123,079  

Patrick Industries Inc.

    2,091       162,910  

Standard Motor Products Inc.

    4,244       203,288  

Stoneridge Inc.(a)

    3,186       60,470  

Superior Industries International Inc.(a)

    5,367       31,290  

Tenneco Inc., Class A(a)

    16,399       217,615  

Veoneer Inc.(a)

    21,985       773,872  
   

 

 

 
   

 

 

 

4,974,519

 

 

Automobiles — 0.1%  

Winnebago Industries Inc.

    3,497       236,712  
   

 

 

 
Banks — 11.3%  

1st Source Corp.

    3,815       184,188  

Allegiance Bancshares Inc.

    1,674       65,571  

Ameris Bancorp

    4,812       252,101  

Associated Banc-Corp.

    36,990       824,137  

Atlantic Capital Bancshares Inc.(a)

    2,298       63,218  

Atlantic Union Bankshares Corp.

    8,402       301,380  

Banc of California Inc.

    7,582       154,142  

BancFirst Corp.

    4,177       271,547  
Security   Shares     Value  

 

Banks (continued)

 

Bancorp. Inc. (The)(a)

    4,459     $ 136,222  

Bank of Hawaii Corp.

    8,813       744,698  

Bank OZK

    27,003           1,206,224  

BankUnited Inc.

    19,525       791,934  

Banner Corp.

    7,037       406,457  

Berkshire Hills Bancorp. Inc.

    10,347       280,921  

BOK Financial Corp.

    6,627       670,454  

Brookline Bancorp. Inc.

    9,681       155,380  

Bryn Mawr Bank Corp.

    5,559       257,604  

Byline Bancorp Inc.

    3,557       91,628  

Cadence Bank

    17,861       518,338  

Camden National Corp.

    2,316       110,242  

Cathay General Bancorp

    17,022       718,158  

Central Pacific Financial Corp.

    3,556       97,754  

CIT Group Inc.

    21,665       1,073,067  

City Holding Co.

    1,326       105,523  

Columbia Banking System Inc.

    9,771       333,484  

Community Bank System Inc.

    6,404       458,975  

Community Trust Bancorp. Inc.

    4,912       214,556  

ConnectOne Bancorp. Inc.

    4,307       145,275  

CrossFirst Bankshares Inc.(a)

    3,925       55,853  

Customers Bancorp. Inc.(a)

    6,465       344,520  

CVB Financial Corp.

    27,412       548,788  

Dime Community Bancshares Inc.

    7,743       276,270  

Eagle Bancorp. Inc.

    6,681       378,078  

Enterprise Financial Services Corp.

    8,452       397,413  

FB Financial Corp.

    3,395       153,895  

Financial Institutions Inc.

    4,222       134,766  

First Bancorp./Southern Pines NC

    6,534       316,376  

First Bancshares Inc. (The)

    1,848       74,382  

First Busey Corp.

    11,422       291,147  

First Commonwealth Financial Corp.

    15,456       236,477  

First Financial Bancorp

    16,620       395,224  

First Financial Corp./IN

    4,369       187,212  

First Foundation Inc.

    6,423       170,916  

First Hawaiian Inc.

    29,158       804,469  

First Interstate BancSystem Inc., Class A

    8,323       345,987  

First Merchants Corp.

    11,761       489,022  

First Midwest Bancorp. Inc.

    23,693       456,090  

Flushing Financial Corp.

    7,681       184,498  

FNB Corp.

    75,735       882,313  

Fulton Financial Corp.

    39,767       640,249  

German American Bancorp. Inc.

    2,619       103,241  

Glacier Bancorp. Inc.

    9,676       534,986  

Great Southern Bancorp. Inc.

    2,668       150,555  

Great Western Bancorp. Inc.

    11,383       387,591  

Hancock Whitney Corp.

    19,473       963,524  

Hanmi Financial Corp.

    5,077       112,659  

Heartland Financial USA Inc.

    5,164       258,820  

Heritage Commerce Corp.

    14,901       178,663  

Heritage Financial Corp./WA

    7,288       181,034  

Hilltop Holdings Inc.

    6,345       224,867  

Home BancShares Inc./AR

    13,584       322,756  

HomeStreet Inc.

    2,980       140,537  

Hope Bancorp Inc.

    22,011       321,140  

Horizon Bancorp Inc./IN

    5,165       98,497  

Independent Bank Corp.

    6,807       575,191  

Independent Bank Corp./MI

    4,839       109,023  

Independent Bank Group Inc.

    4,495       324,943  

International Bancshares Corp.

    12,027       509,945  
 

 

 

76  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Banks (continued)

 

Investors Bancorp. Inc.

    48,936     $ 748,721  

Lakeland Bancorp. Inc.

    11,164       200,729  

Lakeland Financial Corp.

    2,890       207,704  

Metropolitan Bank Holding Corp.(a)

    965       87,680  

Midland States Bancorp. Inc.

    6,805       174,616  

National Bank Holdings Corp., Class A

    3,619       156,956  

NBT Bancorp. Inc.

    9,028       331,237  

Nicolet Bankshares Inc.(a)(b)

    1,967       141,408  

OceanFirst Financial Corp.

    14,154       313,794  

OFG Bancorp

    7,262       188,086  

Old National Bancorp./IN

    31,386       536,073  

Pacific Premier Bancorp. Inc.

    20,891       877,213  

PacWest Bancorp

    25,458       1,208,491  

Park National Corp.

    3,361       432,191  

Peapack Gladstone Financial Corp.

    1,758       58,981  

Peoples Bancorp. Inc./OH

    6,472       206,845  

Pinnacle Financial Partners Inc.

    9,394       907,179  

Popular Inc.

    9,336       760,324  

Prosperity Bancshares Inc.

    20,183       1,519,982  

QCR Holdings Inc.

    2,431       134,045  

Renasant Corp.

    4,907       183,571  

S&T Bancorp. Inc.

    7,773       237,543  

Sandy Spring Bancorp. Inc.

    10,294       488,553  

Simmons First National Corp., Class A

    23,550       703,909  

South State Corp.

    9,950       776,995  

Southside Bancshares Inc.

    2,997       123,836  

Sterling Bancorp./DE

    20,795       529,233  

Stock Yards Bancorp. Inc.

    2,225       136,281  

Synovus Financial Corp.

    31,807       1,481,888  

Texas Capital Bancshares Inc.(a)

    11,148       675,569  

Tompkins Financial Corp.

    1,708       140,244  

Towne Bank/Portsmouth VA

    6,423       202,453  

TriCo Bancshares

    6,613       289,848  

TriState Capital Holdings Inc.(a)

    6,838       205,482  

Trustmark Corp.

    13,868       441,141  

UMB Financial Corp.

    4,884       482,637  

Umpqua Holdings Corp.

    47,877       979,085  

United Bankshares Inc./WV

    28,062       1,038,013  

United Community Banks Inc./GA

    5,802       202,142  

Univest Financial Corp.

    5,914       169,732  

Valley National Bancorp

    88,312           1,171,017  

Veritex Holdings Inc.

    5,295       216,830  

Washington Trust Bancorp. Inc.

    2,845       155,508  

Webster Financial Corp.

    19,676       1,101,069  

WesBanco Inc.

    16,518       574,331  

Westamerica Bancorp

    6,063       338,073  

Wintrust Financial Corp.

    12,406       1,097,931  
   

 

 

 
   

 

 

 

47,230,264

 

 

Beverages — 0.1%  

Coca-Cola Consolidated Inc.

    358       143,701  

MGP Ingredients Inc.

    782       50,212  

National Beverage Corp.

    2,420       136,488  
   

 

 

 
   

 

 

 

330,401

 

 

Biotechnology — 1.9%  

Abeona Therapeutics Inc.(a)

    13,034       10,588  

Adamas Pharmaceuticals Inc.(a)

    7,887       63,964  

Akebia Therapeutics Inc.(a)(b)

    37,758       108,365  

Allogene Therapeutics Inc.(a)(b)

    8,179       141,006  

ALX Oncology Holdings Inc.(a)

    2,361       132,310  
Security   Shares     Value  

 

Biotechnology (continued)

 

AnaptysBio Inc.(a)

    1,836     $ 60,404  

Applied Genetic Technologies Corp./DE(a)(b)

    10,028       25,973  

Applied Therapeutics Inc.(a)

    3,948       57,917  

Aptinyx Inc., Class A(a)

    9,459       21,188  

Arcturus Therapeutics Holdings Inc.(a)(b)

    4,687           210,681  

Arena Pharmaceuticals Inc.(a)

    7,293       418,545  

Assembly Biosciences Inc.(a)

    8,695       27,389  

Atara Biotherapeutics Inc.(a)

    6,010       93,035  

Athersys Inc.(a)

    16,434       19,228  

AVEO Pharmaceuticals Inc.(a)

    6,802       46,186  

Avrobio Inc.(a)

    3,998       22,469  

BioAtla Inc.(a)(b)

    1,825       53,345  

Bioxcel Therapeutics Inc.(a)(b)

    4,205       122,534  

Bluebird Bio Inc.(a)(b)

    14,686       343,799  

Bolt Biotherapeutics Inc.(a)

    1,184       15,499  

Calithera Biosciences Inc.(a)(b)

    16,461       31,770  

Cardiff Oncology Inc.(a)

    5,057       29,685  

Catalyst Pharmaceuticals Inc.(a)

    11,839       69,850  

CEL-SCI Corp.(a)(b)

    4,879       54,645  

Chimerix Inc.(a)

    7,620       39,929  

Cogent Biosciences Inc.(a)

    6,866       58,224  

Coherus Biosciences Inc.(a)(b)

    6,247       104,512  

Corbus Pharmaceuticals Holdings Inc.(a)(b)

    19,006       19,006  

Crinetics Pharmaceuticals Inc.(a)

    3,810       94,983  

CytomX Therapeutics Inc.(a)

    13,016       77,185  

Design Therapeutics Inc.(a)

    1,371       21,497  

Eagle Pharmaceuticals Inc./DE(a)

    2,545       133,282  

Emergent BioSolutions Inc.(a)

    5,220       248,837  

Enanta Pharmaceuticals Inc.(a)

    3,943       338,507  

Evelo Biosciences Inc.(a)

    3,484       30,833  

FibroGen Inc.(a)

    9,049       100,625  

G1 Therapeutics Inc.(a)(b)

    4,414       63,959  

Gain Therapeutics Inc.(a)

    1,160       8,074  

Genprex Inc.(a)

    3,221       7,505  

Geron Corp.(a)(b)

    42,124       64,871  

Global Blood Therapeutics Inc.(a)

    5,606       204,731  

Gossamer Bio Inc.(a)

    11,455       142,271  

Heat Biologics Inc.(a)(b)

    5,394       28,804  

Homology Medicines Inc.(a)(b)

    3,545       20,313  

Immunic Inc.(a)

    2,539       23,663  

Immunovant Inc.(a)

    8,957       72,014  

Infinity Pharmaceuticals Inc.(a)

    7,677       19,500  

Inovio Pharmaceuticals Inc.(a)(b)

    13,294       94,919  

Intercept Pharmaceuticals Inc.(a)(b)

    6,043       101,885  

Ironwood Pharmaceuticals Inc.(a)

    23,225       296,583  

Jounce Therapeutics Inc.(a)

    7,021       61,644  

Kadmon Holdings Inc.(a)

    17,302       163,504  

Karyopharm Therapeutics Inc.(a)(b)

    6,767       36,948  

Kiniksa Pharmaceuticals Ltd., Class A(a)

    3,023       31,409  

Kura Oncology Inc.(a)(b)

    6,890       113,134  

Lineage Cell Therapeutics Inc.(a)

    15,247       34,763  

Madrigal Pharmaceuticals Inc.(a)

    1,071       83,270  

Magenta Therapeutics Inc.(a)

    4,681       29,958  

MEI Pharma Inc.(a)(b)

    10,273       28,970  

MeiraGTx Holdings PLC(a)

    2,476       53,234  

Mersana Therapeutics Inc.(a)

    6,126       52,439  

MiMedx Group Inc.(a)

    6,797       46,559  

Myriad Genetics Inc.(a)

    17,049       524,598  

Neoleukin Therapeutics Inc.(a)

    7,195       52,739  

Nurix Therapeutics Inc.(a)

    3,927       131,358  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  77


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Biotechnology (continued)

 

Ocugen Inc.(a)(b)

    21,688     $ 256,786  

OPKO Health Inc.(a)

    43,007       162,997  

Ovid therapeutics Inc.(a)

    11,408       38,787  

Palatin Technologies Inc.(a)(b)

    17,433       7,113  

Pluristem Therapeutics Inc.(a)

    5,963       15,802  

Precigen Inc.(a)

    11,590       55,980  

Prothena Corp. PLC(a)(b)

    3,797       210,164  

Puma Biotechnology Inc.(a)

    4,560       23,256  

REGENXBIO Inc.(a)(b)

    3,308       117,235  

Rhythm Pharmaceuticals Inc.(a)

    5,149       59,265  

Rocket Pharmaceuticals Inc.(a)

    3,909       116,136  

Rubius Therapeutics Inc.(a)(b)

    4,860       69,061  

Sage Therapeutics Inc.(a)

    5,140       207,450  

Sangamo Therapeutics Inc.(a)

    8,432       68,468  

Seres Therapeutics Inc.(a)

    3,688       22,423  

Shattuck Labs Inc.(a)

    2,867       55,333  

Sio Gene Therapies Inc.(a)(b)

    11,333       21,646  

Spectrum Pharmaceuticals Inc.(a)

    35,432       64,841  

Sutro Biopharma Inc.(a)

    4,887       98,522  

Syndax Pharmaceuticals Inc.(a)

    3,663       71,245  

TCR2 Therapeutics Inc.(a)

    7,330       46,179  

Tonix Pharmaceuticals Holding Corp.(a)

    35,167       19,412  

UNITY Biotechnology Inc.(a)

    9,250       22,107  

Verastem Inc.(a)

    22,800       59,280  

Viking Therapeutics Inc.(a)

    6,687       38,918  

Voyager Therapeutics Inc.(a)(b)

    2,773       10,038  
   

 

 

 
   

 

 

 

    7,979,858

 

 

Building Products — 0.7%  

American Woodmark Corp.(a)

    2,142       147,241  

Apogee Enterprises Inc.

    5,534       232,041  

Armstrong World Industries Inc.

    2,889       305,223  

Cornerstone Building Brands Inc.(a)

    6,618       94,703  

Griffon Corp.

    4,596       121,748  

Insteel Industries Inc.

    1,797       73,084  

JELD-WEN Holding Inc.(a)

    12,854       352,328  

Masonite International Corp.(a)(b)

    1,909       229,099  

PGT Innovations Inc.(a)

    4,948       105,640  

Quanex Building Products Corp.

    4,576       94,815  

Resideo Technologies Inc.(a)

    12,568       309,927  

UFP Industries Inc.

    4,466       365,453  

Zurn Water Solutions Corp.

    10,825       392,731  
   

 

 

 
   

 

 

 

2,824,033

 

 

Capital Markets — 2.6%  

Affiliated Managers Group Inc.

    4,634       777,956  

Artisan Partners Asset Management Inc., Class A

    5,903       292,435  

Assetmark Financial Holdings Inc.(a)

    2,038       52,254  

B. Riley Financial Inc.

    1,452       104,050  

BGC Partners Inc., Class A

    41,717       224,020  

Blucora Inc.(a)

    10,745       177,507  

BrightSphere Investment Group Inc.

    5,064       151,819  

Cohen & Steers Inc.

    2,139       202,970  

Cowen Inc., Class A

    2,950       111,303  

Diamond Hill Investment Group Inc.

    710       153,971  

Donnelley Financial Solutions Inc.(a)

    6,467       247,815  

Evercore Inc., Class A

    5,763       875,054  

Federated Hermes Inc.

    21,323       710,269  

Focus Financial Partners Inc., Class A(a)

    6,713       421,979  

Greenhill & Co. Inc.

    3,254       51,153  

Houlihan Lokey Inc.

    5,533       620,139  
Security   Shares     Value  

 

Capital Markets (continued)

 

Janus Henderson Group PLC

    36,951     $ 1,718,221  

Moelis & Co., Class A

    13,367       972,316  

Oppenheimer Holdings Inc., Class A, NVS

    1,030       53,612  

Piper Sandler Cos

    1,734       285,572  

Sculptor Capital Management Inc.

    4,254       112,731  

Stifel Financial Corp.

    22,762           1,658,667  

StoneX Group Inc.(a)

    2,348       162,270  

Trinity Capital Inc.

    1,851       29,894  

Victory Capital Holdings Inc., Class A

    3,639       137,918  

Virtu Financial Inc., Class A

    19,470       484,414  

Virtus Investment Partners Inc.

    498       159,360  

WisdomTree Investments Inc.

    12,449       79,549  
   

 

 

 
   

 

 

 

11,029,218

 

 

Chemicals — 2.9%  

AdvanSix Inc.(a)

    6,120       297,432  

American Vanguard Corp.

    5,933       92,436  

Ashland Global Holdings Inc.

    7,238       694,920  

Avient Corp.

    10,582       570,158  

Cabot Corp.

    12,381       660,526  

Chase Corp.

    691       66,336  

Chemours Co. (The)

    35,863       1,004,881  

Diversey Holdings Ltd.(a)(b)

    5,544       96,466  

Ecovyst Inc.

    11,837       138,256  

Element Solutions Inc.

    21,037       477,750  

Ferro Corp.(a)

    18,107       380,609  

FutureFuel Corp.

    5,580       39,395  

GCP Applied Technologies Inc.(a)

    5,247       118,635  

Hawkins Inc.

    2,289       83,938  

HB Fuller Co.

    5,457       384,773  

Huntsman Corp.

    45,791       1,491,871  

Ingevity Corp.(a)

    3,563       277,593  

Innospec Inc.

    3,593       325,562  

Intrepid Potash Inc.(a)

    874       42,572  

Koppers Holdings Inc.(a)

    3,087       108,323  

Kraton Corp.(a)

    7,049       321,787  

Kronos Worldwide Inc.

    2,767       36,054  

Minerals Technologies Inc.

    7,356       521,835  

NewMarket Corp.

    1,570       533,816  

Olin Corp.

    16,639       948,090  

Rayonier Advanced Materials Inc.(a)

    14,094       101,195  

Sensient Technologies Corp.

    4,886       467,102  

Stepan Co.

    2,349       281,927  

Tredegar Corp.

    5,703       68,778  

Trinseo PLC

    8,462       474,380  

Tronox Holdings PLC, Class A

    8,974       209,274  

Valvoline Inc.

    18,010       611,619  
   

 

 

 
   

 

 

 

11,928,289

 

 

Commercial Services & Supplies — 1.7%  

ABM Industries Inc.

    8,242       362,730  

ACCO Brands Corp.

    20,864       172,545  

ADT Inc.

    31,684       264,561  

Brady Corp., Class A, NVS

    6,589       343,221  

BrightView Holdings Inc.(a)

    7,073       112,178  

Brink’s Co. (The)

    4,965       341,989  

Cimpress PLC(a)(b)

    1,707       152,469  

Clean Harbors Inc.(a)

    4,554       512,507  

CoreCivic Inc.(a)

    26,451       227,743  

Covanta Holding Corp.

    10,014       202,083  

Deluxe Corp.

    9,297       331,624  
 

 

 

78  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Commercial Services & Supplies (continued)

 

Ennis Inc.

    5,791     $ 109,682  

Healthcare Services Group Inc.

    8,132       156,053  

Herman Miller Inc.

    16,380       637,510  

HNI Corp.

    6,478       242,277  

Interface Inc.

    12,780       183,521  

KAR Auction Services Inc.(a)

    25,921       380,261  

Kimball International Inc., Class B

    7,975       86,688  

Matthews International Corp., Class A

    6,957       239,112  

Montrose Environmental Group Inc.(a)

    2,818       193,174  

RR Donnelley & Sons Co.(a)

    16,251       104,006  

SP Plus Corp.(a)

    2,785       89,816  

Steelcase Inc., Class A

    19,683       234,228  

Stericycle Inc.(a)

    11,376       761,282  

Team Inc.(a)

    6,798       16,451  

U.S. Ecology Inc.(a)

    3,734       120,198  

UniFirst Corp./MA

    1,561       309,016  

Viad Corp.(a)

    1,352       59,988  
   

 

 

 
   

 

 

 

    6,946,913

 

 

Communications Equipment — 0.6%  

ADTRAN Inc.

    10,681       197,385  

Applied Optoelectronics Inc.(a)

    5,533       42,327  

Aviat Networks Inc.(a)

    1,035       29,601  

CalAmp Corp.(a)

    2,755       26,503  

CommScope Holding Co. Inc.(a)(b)

    44,674       478,459  

Comtech Telecommunications Corp.

    5,811       125,343  

Digi International Inc.(a)

    2,699       58,164  

EMCORE Corp.(a)

    4,098       30,653  

Extreme Networks Inc.(a)

    10,977       107,904  

Harmonic Inc.(a)(b)

    6,090       55,236  

Lumentum Holdings Inc.(a)

    7,291       602,091  

NETGEAR Inc.(a)

    6,617       190,768  

NetScout Systems Inc.(a)

    16,235       439,319  

Plantronics Inc.(a)

    6,236       166,875  

Ribbon Communications Inc.(a)

    17,964       98,263  
   

 

 

 
   

 

 

 

2,648,891

 

 

Construction & Engineering — 1.1%  

API Group Corp.(a)

    21,788       474,543  

Arcosa Inc.

    5,391       278,876  

Argan Inc.

    2,374       97,951  

Dycom Industries Inc.(a)

    3,776       299,890  

EMCOR Group Inc.

    7,059       857,598  

Fluor Corp.(a)

    30,793       598,616  

Granite Construction Inc.

    5,852       217,226  

Great Lakes Dredge & Dock Corp.(a)

    14,472       220,264  

IES Holdings Inc.(a)

    753       37,537  

Infrastructure and Energy Alternatives Inc.(a)

    3,204       35,468  

INNOVATE Corp.(a)

    10,213       40,341  

Matrix Service Co.(a)

    5,806       59,395  

MYR Group Inc.(a)

    1,731       176,822  

NV5 Global Inc.(a)

    935       97,362  

Primoris Services Corp.

    5,784       155,879  

Sterling Construction Co. Inc.(a)

    6,271       150,755  

Tutor Perini Corp.(a)

    9,121       124,228  

Valmont Industries Inc.

    2,282       545,307  
   

 

 

 
   

 

 

 

4,468,058

 

 

Construction Materials — 0.2%  

Eagle Materials Inc.

    5,119       759,455  

Forterra Inc.(a)

    2,032       48,402  
   

 

 

 
   

 

 

 

807,857

 

 

Security   Shares     Value  

 

Consumer Finance — 1.3%

 

Credit Acceptance Corp.(a)(b)

    1,288     $ 770,494  

Curo Group Holdings Corp.

    4,702       80,780  

Encore Capital Group Inc.(a)

    4,265       230,395  

Enova International Inc.(a)

    8,058       261,402  

EZCORP Inc., Class A, NVS(a)

    11,836       88,297  

FirstCash Inc.

    4,422       391,214  

Green Dot Corp., Class A(a)

    5,076       215,019  

LendingClub Corp.(a)

    8,180       375,953  

Navient Corp.

    36,705       723,089  

Nelnet Inc., Class A

    1,971       162,864  

PRA Group Inc.(a)

    9,976       427,771  

PROG Holdings Inc.

    9,577       387,390  

SLM Corp.

    66,482       1,219,945  

World Acceptance Corp.(a)

    919       170,373  
   

 

 

 
   

 

 

 

    5,504,986

 

 

Containers & Packaging — 0.9%  

Graphic Packaging Holding Co.

    29,853       594,970  

Greif Inc., Class A, NVS

    5,852       378,508  

Myers Industries Inc.

    4,223       86,909  

O-I Glass Inc.(a)

    34,212       446,467  

Pactiv Evergreen Inc.

    9,525       132,493  

Silgan Holdings Inc.

    18,270       734,454  

Sonoco Products Co.

    21,355       1,237,522  

TriMas Corp.(a)

    9,357       312,056  
   

 

 

 
   

 

 

 

3,923,379

 

 

Diversified Consumer Services — 1.0%  

Adtalem Global Education Inc.(a)

    10,773       397,847  

American Public Education Inc.(a)

    2,078       51,929  

Carriage Services Inc.

    1,835       94,411  

frontdoor Inc.(a)

    10,616       395,764  

Graham Holdings Co., Class B

    876       513,205  

Grand Canyon Education Inc.(a)

    4,372       348,448  

H&R Block Inc.

    38,811       895,370  

Houghton Mifflin Harcourt Co.(a)

    28,008       397,434  

Laureate Education Inc., Class A(a)

    13,824       239,432  

Perdoceo Education Corp.(a)

    15,403       163,580  

Regis Corp.(a)(b)

    5,372       14,504  

Strategic Education Inc.

    4,972       339,140  

Stride Inc.(a)(b)

    4,101       145,585  

Vivint Smart Home Inc.(a)

    8,705       78,954  

WW International Inc.(a)

    11,533       200,213  

XpresSpa Group Inc.(a)(b)

    12,615       16,778  
   

 

 

 
   

 

 

 

4,292,594

 

 

Diversified Financial Services — 0.1%  

A-Mark Precious Metals Inc.

    1,014       76,040  

Cannae Holdings Inc.(a)

    7,937       270,652  
   

 

 

 
   

 

 

 

346,692

 

 

Diversified Telecommunication Services — 0.2%  

Anterix Inc.(a)

    1,469       94,163  

ATN International Inc.

    2,438       99,422  

Cogent Communications Holdings Inc.

    2,482       190,096  

Consolidated Communications Holdings Inc.(a)

    15,940       117,956  

EchoStar Corp., Class A(a)(b)

    8,954       210,061  

IDT Corp., Class B(a)

    2,311       111,783  

Liberty Latin America Ltd., Class A(a)

    3,305       39,726  

Liberty Latin America Ltd., Class C, NVS(a)

    12,210       146,886  
   

 

 

 
   

 

 

 

1,010,093

 

 

Electric Utilities — 1.3%  

ALLETE Inc.

    11,377       700,141  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  79


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Electric Utilities (continued)

 

Hawaiian Electric Industries Inc.

    23,835     $ 966,748  

IDACORP Inc.

    10,985       1,145,955  

MGE Energy Inc.

    7,972       604,995  

Otter Tail Corp.

    9,195       570,182  

PNM Resources Inc.

    11,040       549,240  

Portland General Electric Co.

    19,463       959,720  

Via Renewables Inc.

    2,868       31,978  
   

 

 

 
   

 

 

 

    5,528,959

 

 

Electrical Equipment — 1.4%  

Acuity Brands Inc.

    4,466       917,450  

Atkore Inc.(a)

    5,526       522,373  

AZZ Inc.

    5,462       290,196  

Babcock & Wilcox Enterprises Inc.(a)

    6,380       43,576  

Encore Wire Corp.

    2,097       281,124  

EnerSys

    4,888       391,236  

GrafTech International Ltd.

    44,216       473,111  

nVent Electric PLC

    36,583       1,296,867  

Polar Power Inc.(a)

    1,590       8,077  

Powell Industries Inc.

    1,190       30,773  

Regal Rexnord Corp.

    9,571       1,457,951  

Thermon Group Holdings Inc.(a)

    7,412       128,079  

Westwater Resources Inc.(a)(b)

    3,436       10,892  
   

 

 

 
   

 

 

 

5,851,705

 

 

Electronic Equipment, Instruments & Components — 2.3%  

Arlo Technologies Inc.(a)

    18,250       125,925  

Avnet Inc.

    21,613       823,671  

Belden Inc.

    9,780       588,854  

Benchmark Electronics Inc.

    3,947       92,005  

ePlus Inc.(a)

    1,533       169,504  

Fabrinet(a)

    4,081       391,776  

II-VI Inc.(a)

    9,252       559,838  

Insight Enterprises Inc.(a)(b)

    7,578       717,637  

Kimball Electronics Inc.(a)

    5,501       158,154  

Knowles Corp.(a)

    20,098       418,842  

Methode Electronics Inc.

    4,588       193,017  

MICT Inc.(a)(b)

    12,144       16,759  

National Instruments Corp.

    16,860       716,044  

OSI Systems Inc.(a)

    3,663       341,062  

PC Connection Inc.

    2,378       109,507  

Plexus Corp.(a)

    2,584       225,635  

Sanmina Corp.(a)

    14,184       535,446  

ScanSource Inc.(a)

    5,619       201,048  

SYNNEX Corp.

    9,024       947,520  

TTM Technologies Inc.(a)

    23,468       310,716  

Velodyne Lidar Inc.(a)(b)

    21,158       129,064  

Vishay Intertechnology Inc.

    16,948       325,740  

Vishay Precision Group Inc.(a)

    1,598       54,476  

Vontier Corp.

    36,692       1,241,290  
   

 

 

 
   

 

 

 

9,393,530

 

 

Energy Equipment & Services — 1.3%  

Archrock Inc.

    29,246       239,525  

Aspen Aerogels Inc.(a)

    2,880       156,845  

ChampionX Corp.(a)

    15,413       404,283  

Dril-Quip Inc.(a)

    3,161       74,473  

Expro Group Holdings NV, NVS(a)

    11,606       199,043  

FTS International Inc., Class A(a)

    775       20,537  

Helix Energy Solutions Group Inc.(a)

    30,760       116,273  

Helmerich & Payne Inc.

    23,511       729,781  

Liberty Oilfield Services Inc., Class A(a)

    23,163       299,266  
Security   Shares     Value  

 

Energy Equipment & Services (continued)

 

Nabors Industries Ltd.(a)

    1,685     $ 172,712  

Newpark Resources Inc.(a)

    20,059       68,201  

NexTier Oilfield Solutions Inc.(a)

    34,791       155,168  

NOV Inc.(a)

    84,927       1,190,676  

Oceaneering International Inc.(a)

    21,833       296,929  

Oil States International Inc.(a)

    13,479       81,683  

Patterson-UTI Energy Inc.

    41,238       352,997  

ProPetro Holding Corp.(a)

    9,774       93,733  

RPC Inc.(a)

    8,485       45,734  

Select Energy Services Inc., Class A(a)

    13,896       83,515  

TETRA Technologies Inc.(a)

    15,046       48,598  

Tidewater Inc.(a)

    9,020       109,413  

Transocean Ltd.(a)

    130,275       459,871  

U.S. Silica Holdings Inc.(a)

    16,331       158,084  
   

 

 

 
   

 

 

 

    5,557,340

 

 

Entertainment — 1.4%  

AMC Entertainment Holdings Inc., Class A(a)(b)

    111,490       3,943,401  

Cinedigm Corp., Class A(a)

    19,319       45,593  

Cinemark Holdings Inc.(a)

    23,140       435,032  

IMAX Corp.(a)

    3,598       67,822  

Lions Gate Entertainment Corp., Class A(a)(b)

    13,367       173,103  

Lions Gate Entertainment Corp., Class B, NVS(a)

    26,776       303,104  

Madison Square Garden Entertainment
Corp.(a)(b)

    5,502       387,726  

Madison Square Garden Sports Corp.(a)

    1,594       302,079  

Marcus Corp. (The)(a)

    4,764       88,468  

Sciplay Corp., Class A(a)(b)

    5,311       107,335  

World Wrestling Entertainment Inc., Class A

    2,701       165,004  
   

 

 

 
   

 

 

 

6,018,667

 

 

Equity Real Estate Investment Trusts (REITs) — 10.1%  

Acadia Realty Trust

    19,062       407,546  

Agree Realty Corp.

    8,073       573,667  

Alexander & Baldwin Inc.

    6,811       167,074  

Alexander’s Inc.

    480       133,814  

American Assets Trust Inc.

    7,559       285,957  

American Campus Communities Inc.

    10,110       543,109  

American Finance Trust Inc.

    25,702       212,813  

Apartment Income REIT Corp.

    34,091       1,827,619  

Apartment Investment & Management Co., Class A

    19,515       147,924  

Apple Hospitality REIT Inc.

    46,286       727,153  

Armada Hoffler Properties Inc.

    13,304       182,398  

Ashford Hospitality Trust Inc.(a)

    6,079       85,896  

Bluerock Residential Growth REIT Inc., Class A

    5,981       80,923  

Braemar Hotels & Resorts Inc.(a)

    11,488       58,359  

Brandywine Realty Trust

    37,358       494,993  

Brixmor Property Group Inc.

    64,556       1,513,193  

Broadstone Net Lease Inc.

    15,148       402,785  

CareTrust REIT Inc.

    12,266       254,519  

CatchMark Timber Trust Inc., Class A

    6,501       55,649  

Centerspace

    3,075       311,313  

Chatham Lodging Trust(a)

    10,697       135,745  

City Office REIT Inc.

    9,459       179,437  

Columbia Property Trust Inc.

    14,580       279,499  

CoreSite Realty Corp.

    3,705       527,814  

Corporate Office Properties Trust

    10,583       287,011  

Cousins Properties Inc.

    32,344       1,281,146  

DiamondRock Hospitality Co.(a)

    46,236       417,973  

DigitalBridge Group Inc.(a)

    107,179       718,099  

Diversified Healthcare Trust

    51,993       189,255  

Douglas Emmett Inc.

    23,977       783,568  
 

 

 

80  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Equity Real Estate Investment Trusts (REITs) (continued)

 

Easterly Government Properties Inc.

    7,836     $ 164,791  

Empire State Realty Trust Inc., Class A

    30,848       298,609  

EPR Properties

    16,311       818,975  

Equity Commonwealth(a)

    15,673       406,401  

Essential Properties Realty Trust Inc.

    13,421       399,812  

Farmland Partners Inc.

    6,313       70,958  

Four Corners Property Trust Inc.

    8,495       246,355  

Franklin Street Properties Corp., Class C

    21,383       96,223  

GEO Group Inc. (The)

    18,436       150,806  

Getty Realty Corp.

    8,392       269,551  

Gladstone Commercial Corp.

    3,556       77,734  

Gladstone Land Corp.

    2,123       47,003  

Global Medical REIT Inc.

    7,725       128,080  

Global Net Lease Inc.

    22,117       354,314  

Healthcare Realty Trust Inc.

    15,142       500,595  

Healthcare Trust of America Inc., Class A

    27,176       907,407  

Hersha Hospitality Trust, Class A(a)

    7,296       65,153  

Highwoods Properties Inc.

    22,633           1,014,864  

Hudson Pacific Properties Inc.

    18,240       469,680  

Independence Realty Trust Inc.

    13,282       313,854  

Industrial Logistics Properties Trust

    14,303       401,771  

iStar Inc.

    15,561       392,760  

JBG SMITH Properties

    25,218       727,791  

Kite Realty Group Trust

    47,707       968,452  

Lexington Realty Trust

    36,088       525,802  

Life Storage Inc.

    8,724       1,167,358  

LTC Properties Inc.

    8,627       274,856  

Macerich Co. (The)

    46,259       836,825  

Mack-Cali Realty Corp.(a)

    17,583       319,835  

Monmouth Real Estate Investment Corp.

    11,703       220,602  

National Health Investors Inc.

    10,017       538,714  

National Storage Affiliates Trust

    8,769       547,712  

NexPoint Residential Trust Inc.

    2,805       198,650  

Office Properties Income Trust

    10,799       276,670  

One Liberty Properties Inc.

    3,541       110,692  

Outfront Media Inc.

    31,635       787,395  

Paramount Group Inc.

    35,921       304,610  

Park Hotels & Resorts Inc.(a)

    51,534       954,925  

Pebblebrook Hotel Trust

    13,689       307,455  

Pennsylvania REIT(a)

    14,733       25,046  

Physicians Realty Trust

    29,026       551,784  

Piedmont Office Realty Trust Inc., Class A

    27,110       481,474  

Plymouth Industrial REIT Inc.

    7,045       180,070  

PotlatchDeltic Corp.

    9,256       483,811  

Preferred Apartment Communities Inc., Class A

    11,601       146,289  

PS Business Parks Inc.

    2,453       435,898  

Rayonier Inc.

    17,896       668,058  

Retail Opportunity Investments Corp.

    26,821       476,609  

Retail Value Inc.

    3,916       24,514  

RLJ Lodging Trust

    36,555       527,123  

RPT Realty

    17,852       237,253  

Ryman Hospitality Properties Inc.(a)

    11,953       1,022,460  

Sabra Health Care REIT Inc.

    48,024       679,540  

Saul Centers Inc.

    2,854       132,426  

Seritage Growth Properties, Class A(a)(b)

    7,884       121,414  

Service Properties Trust

    19,221       207,010  

SITE Centers Corp.

    39,036       620,282  

SL Green Realty Corp.

    14,608       1,023,583  

Spirit Realty Capital Inc.

    9,137       447,073  

STAG Industrial Inc.

    16,658       725,123  
Security   Shares     Value  

 

Equity Real Estate Investment Trusts (REITs) (continued)

 

Summit Hotel Properties Inc.(a)

    23,293     $ 232,930  

Sunstone Hotel Investors Inc.(a)

    47,751       589,247  

Tanger Factory Outlet Centers Inc.

    22,678       380,990  

UMH Properties Inc.

    4,340       103,900  

Uniti Group Inc.

    24,721       353,758  

Universal Health Realty Income Trust

    1,342       76,454  

Urban Edge Properties

    11,942       209,343  

Urstadt Biddle Properties Inc., Class A

    6,637       130,351  

Washington REIT

    18,383       466,009  

Whitestone REIT

    9,483       87,054  

Xenia Hotels & Resorts Inc.(a)

    24,909       443,380  
   

 

 

 
   

 

 

 

42,220,547

 

 

Food & Staples Retailing — 0.9%  

Andersons Inc. (The)

    4,597       156,574  

BJ’s Wholesale Club Holdings Inc.(a)

    18,570       1,085,231  

Chefs’ Warehouse Inc. (The)(a)

    7,142       249,041  

Ingles Markets Inc., Class A

    3,106       214,904  

Natural Grocers by Vitamin Cottage Inc.

    2,053       25,006  

PriceSmart Inc.

    3,257       234,341  

Rite Aid Corp.(a)(b)

    11,932       162,156  

SpartanNash Co.

    7,847       181,580  

Sprouts Farmers Market Inc.(a)

    24,820       549,515  

United Natural Foods Inc.(a)

    12,296       533,523  

Weis Markets Inc.

    3,562       200,576  
   

 

 

 
   

 

 

 

    3,592,447

 

 

Food Products — 1.4%  

B&G Foods Inc.

    14,127       415,899  

Calavo Growers Inc.

    1,912       76,862  

Flowers Foods Inc.

    43,260       1,070,685  

Fresh Del Monte Produce Inc.

    7,270       243,472  

Hostess Brands Inc.(a)

    28,480       538,557  

Ingredion Inc.

    14,552       1,385,787  

J&J Snack Foods Corp.

    1,701       250,983  

John B Sanfilippo & Son Inc.

    1,920       162,240  

Mission Produce Inc.(a)

    4,271       81,106  

Pilgrim’s Pride Corp.(a)

    10,723       301,960  

Post Holdings Inc.(a)

    7,270       737,760  

Seaboard Corp.

    35       134,751  

Tootsie Roll Industries Inc.

    2,268       71,782  

TreeHouse Foods Inc.(a)

    12,132       438,450  

Whole Earth Brands Inc.(a)(b)

    8,413       102,050  
   

 

 

 
   

 

 

 

6,012,344

 

 

Gas Utilities — 1.3%  

Chesapeake Utilities Corp.

    1,705       223,474  

Macquarie Infrastructure Corp.

    16,113       59,457  

National Fuel Gas Co.

    19,823       1,138,435  

New Jersey Resources Corp.

    20,973       792,989  

Northwest Natural Holding Co.

    6,798       306,522  

ONE Gas Inc.

    11,652       784,180  

South Jersey Industries Inc.

    24,482       557,210  

Southwest Gas Holdings Inc.

    12,856       890,278  

Spire Inc.

    11,287       708,372  
   

 

 

 
   

 

 

 

5,460,917

 

 

Health Care Equipment & Supplies — 1.1%  

Accuray Inc.(a)

    20,321       101,402  

AngioDynamics Inc.(a)

    2,539       72,615  

Asensus Surgical Inc.(a)

    19,049       32,193  

Atrion Corp.

    132       96,096  

Avanos Medical Inc.(a)

    3,070       96,828  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  81


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Health Care Equipment & Supplies (continued)

 

Bioventus Inc., Class A(a)

    2,402     $ 36,270  

Cardiovascular Systems Inc.(a)

    4,064       142,565  

Co-Diagnostics Inc.(a)

    3,006       24,679  

Conformis Inc.(a)

    42,701       52,522  

CONMED Corp.

    2,424       354,583  

CryoLife Inc.(a)

    4,656       96,100  

CytoSorbents Corp.(a)(b)

    5,113       30,116  

Envista Holdings Corp.(a)

    10,770       421,107  

Haemonetics Corp.(a)

    4,608       316,616  

Inogen Inc.(a)

    2,410       95,557  

Integer Holdings Corp.(a)

    2,962       266,639  

Intersect ENT Inc.(a)

    3,827       103,214  

Invacare Corp.(a)

    7,567       37,381  

LivaNova PLC(a)

    7,119       546,170  

Meridian Bioscience Inc.(a)

    4,121       77,516  

Natus Medical Inc.(a)

    3,660       91,683  

Neuronetics Inc.(a)

    3,045       15,834  

OraSure Technologies Inc.(a)

    4,240       45,241  

Pulse Biosciences Inc.(a)

    1,494       31,508  

Quidel Corp.(a)

    8,255       1,096,016  

Retractable Technologies Inc.(a)

    1,395       13,197  

Surgalign Holdings Inc.(a)

    11,262       10,826  

Vapotherm Inc.(a)

    1,959       44,802  

Varex Imaging Corp.(a)

    5,033       135,136  
   

 

 

 
          4,484,412  
Health Care Providers & Services — 2.1%  

Acadia Healthcare Co. Inc.(a)

    19,532       1,210,984  

AMN Healthcare Services Inc.(a)

    4,901       483,729  

Apollo Medical Holdings Inc.(a)(b)

    3,844       263,814  

Apria Inc.(a)

    1,629       60,973  

Brookdale Senior Living Inc.(a)(b)

    40,718       264,667  

Community Health Systems Inc.(a)

    27,116       355,220  

Covetrus Inc.(a)

    7,688       155,221  

Cross Country Healthcare Inc.(a)

    7,677       159,144  

Fulgent Genetics Inc.(a)

    2,031       168,411  

Hanger Inc.(a)

    4,212       78,680  

Magellan Health Inc.(a)

    3,289       311,896  

MEDNAX Inc.(a)

    18,874       513,939  

ModivCare Inc.(a)

    1,216       197,928  

National HealthCare Corp.

    2,957       206,813  

Owens & Minor Inc.

    10,300       369,564  

Patterson Companies Inc.

    18,790       587,375  

Premier Inc., Class A

    26,588       1,035,603  

Progenity Inc.(a)(b)

    3,485       12,546  

Select Medical Holdings Corp.

    8,341       277,088  

Surgery Partners Inc.(a)(b)

    6,468       266,093  

Tenet Healthcare Corp.(a)

    23,258       1,666,668  

Tivity Health Inc.(a)

    4,897       122,523  

Triple-S Management Corp.(a)

    5,131       181,073  
   

 

 

 
      8,949,952  
Health Care Technology — 0.5%  

Allscripts Healthcare Solutions Inc.(a)

    27,256       375,588  

Change Healthcare Inc.(a)

    30,625       659,356  

Computer Programs & Systems Inc.(a)

    3,239       116,928  

Evolent Health Inc., Class A(a)(b)

    17,256       505,083  

Multiplan Corp.(a)(b)

    32,037       138,079  

NextGen Healthcare Inc.(a)

    12,223       201,191  
   

 

 

 
      1,996,225  
Security   Shares     Value  

 

Hotels, Restaurants & Leisure — 2.4%

 

Bally’s Corp.(a)

    1,776     $ 81,359  

BJ’s Restaurants Inc.(a)

    1,991       66,340  

Bloomin’ Brands Inc.(a)

    17,657       381,744  

Brinker International Inc.(a)

    9,931       416,705  

Carrols Restaurant Group Inc.

    8,024       29,448  

Cheesecake Factory Inc. (The)(a)

    5,219       212,100  

Choice Hotels International Inc.

    2,025       284,756  

Cracker Barrel Old Country Store Inc.

    3,005       400,176  

Dave & Buster’s Entertainment Inc.(a)

    8,381       311,187  

Del Taco Restaurants Inc.

    3,636       30,324  

Denny’s Corp.(a)

    5,443       86,544  

Dine Brands Global Inc.(a)

    3,743       316,321  

Drive Shack Inc.(a)(b)

    18,124       47,122  

El Pollo Loco Holdings Inc.(a)

    4,265       62,696  

Fiesta Restaurant Group Inc.(a)

    2,162       22,787  

Full House Resorts Inc.(a)

    4,084       40,636  

Golden Entertainment Inc.(a)

    4,429       230,175  

Hilton Grand Vacations Inc.(a)

    10,243       515,018  

Hyatt Hotels Corp., Class A(a)

    6,863       584,728  

Jack in the Box Inc.

    1,540       152,383  

Marriott Vacations Worldwide Corp.

    4,973       781,855  

Noodles & Co.(a)

    7,892       95,888  

PlayAGS Inc.(a)

    2,461       21,706  

Red Robin Gourmet Burgers Inc.(a)

    3,440       68,353  

Ruth’s Hospitality Group Inc.(a)

    1,975       38,197  

Scientific Games Corp./DE, Class A(a)(b)

    20,930       1,675,446  

Shake Shack Inc., Class A(a)

    2,920       201,976  

Six Flags Entertainment Corp.(a)

    16,817       691,683  

Travel + Leisure Co.

    18,760       1,019,418  

Wendy’s Co. (The)

    12,981       289,476  

Wyndham Hotels & Resorts Inc.

    10,473       884,654  
   

 

 

 
      10,041,201  
Household Durables — 1.8%  

Bassett Furniture Industries Inc.

    1,068       18,039  

Beazer Homes USA Inc.(a)

    6,556       118,729  

Casper Sleep Inc.(a)

    3,497       12,729  

Century Communities Inc.

    6,468       433,744  

Dream Finders Homes Inc., Class A(a)

    1,399       22,202  

Ethan Allen Interiors Inc.

    3,135       72,763  

GoPro Inc., Class A(a)

    27,438       236,241  

Green Brick Partners Inc.(a)

    10,521       274,072  

Helen of Troy Ltd.(a)

    2,591       582,846  

Hooker Furniture Corp.

    2,574       64,891  

Hovnanian Enterprises Inc., Class A(a)

    646       54,432  

KB Home

    19,550       784,933  

La-Z-Boy Inc.

    6,721       223,406  

Leggett & Platt Inc.

    16,824       788,204  

LGI Homes Inc.(a)

    2,594       387,284  

M/I Homes Inc.(a)

    4,370       250,226  

MDC Holdings Inc.

    12,270       600,985  

Meritage Homes Corp.(a)

    8,201       891,531  

Taylor Morrison Home Corp.(a)

    27,323       834,171  

TRI Pointe Homes Inc.(a)

    24,804       600,009  

Tupperware Brands Corp.(a)

    10,942       243,350  

Universal Electronics Inc.(a)

    2,918       120,163  

VOXX International Corp., Class A(a)

    3,469       39,234  
   

 

 

 
      7,654,184  
Household Products — 0.3%  

Central Garden & Pet Co.(a)

    1,307       67,415  
 

 

 

82  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Household Products (continued)

 

Central Garden & Pet Co., Class A, NVS(a)

    5,792     $ 267,590  

Energizer Holdings Inc.

    7,140       260,396  

Reynolds Consumer Products Inc.

    12,025       324,435  

Spectrum Brands Holdings Inc.

    4,441       416,344  
   

 

 

 
          1,336,180  
Independent Power and Renewable Electricity Producers — 0.1%  

Clearway Energy Inc., Class A

    3,349       110,483  

Clearway Energy Inc., Class C

    7,952       282,137  
   

 

 

 
      392,620  
Industrial Conglomerates — 0.0%  

Raven Industries Inc.(a)

    3,152       182,249  
   

 

 

 
Insurance — 3.3%  

Ambac Financial Group Inc.(a)

    10,413       176,084  

American Equity Investment Life Holding Co.

    17,931       571,461  

American National Group Inc.

    2,811       533,275  

AMERISAFE Inc.

    3,013       178,641  

Argo Group International Holdings Ltd.

    7,737       426,309  

Assured Guaranty Ltd.

    8,948       497,330  

Axis Capital Holdings Ltd.

    16,844       877,067  

Brighthouse Financial Inc.(a)

    18,144       911,373  

CNO Financial Group Inc.

    28,472       687,314  

Employers Holdings Inc.

    3,060       118,116  

Enstar Group Ltd.(a)

    1,528       352,632  

First American Financial Corp.

    23,901       1,748,119  

Genworth Financial Inc., Class A(a)

    102,936       423,067  

Greenlight Capital Re Ltd., Class A(a)

    6,736       50,048  

Hanover Insurance Group Inc. (The)

    7,841       987,966  

HCI Group Inc.

    636       85,230  

Horace Mann Educators Corp.

    7,121       279,001  

James River Group Holdings Ltd.

    8,048       257,134  

Kemper Corp.

    13,001       825,303  

MBIA Inc.(a)

    10,473       162,750  

Mercury General Corp.

    3,366       183,413  

Primerica Inc.

    3,649       613,908  

ProAssurance Corp.

    9,394       215,217  

Safety Insurance Group Inc.

    1,966       154,154  

Selective Insurance Group Inc.

    7,903       619,358  

SiriusPoint Ltd.(a)

    19,655       184,757  

Stewart Information Services Corp.

    3,077       218,990  

United Fire Group Inc.

    3,004       61,372  

Universal Insurance Holdings Inc.

    6,139       90,673  

Unum Group

    43,867       1,117,292  
   

 

 

 
      13,607,354  
Interactive Media & Services — 0.5%  

Cars.com Inc.(a)

    14,194       184,806  

Eventbrite Inc., Class A(a)(b)

    8,211       166,191  

Liberty TripAdvisor Holdings Inc., Class A(a)

    15,932       49,230  

Takung Art Co. Ltd.(a)(b)

    869       5,240  

TripAdvisor Inc.(a)

    11,563       381,232  

TrueCar Inc.(a)

    9,474       39,696  

Yelp Inc.(a)

    10,040       387,845  

Ziff Davis Inc.(a)(b)

    5,505       706,126  
   

 

 

 
      1,920,366  
Internet & Direct Marketing Retail — 0.3%  

Duluth Holdings Inc., Class B(a)(b)

    1,122       16,078  

Groupon Inc.(a)(b)

    2,132       45,241  

Lands’ End Inc.(a)

    1,217       31,983  

Liquidity Services Inc.(a)

    2,116       46,721  
Security   Shares     Value  

 

Internet & Direct Marketing Retail (continued)

 

PetMed Express Inc.

    2,280     $ 64,820  

Qurate Retail Inc., Series A

    80,059       835,816  

Waitr Holdings Inc.(a)(b)

    8,341       16,182  
   

 

 

 
          1,056,841  
IT Services — 1.1%  

Alliance Data Systems Corp.

    10,797       920,444  

Cass Information Systems Inc.

    1,636       67,060  

Conduent Inc.(a)

    35,284       238,167  

CSG Systems International Inc.

    7,195       360,110  

EVERTEC Inc.

    5,773       260,997  

ExlService Holdings Inc.(a)

    2,913       357,221  

GreenSky Inc., Class A(a)

    15,224       186,342  

Hackett Group Inc. (The)

    3,899       82,425  

International Money Express Inc.(a)

    2,497       41,800  

Limelight Networks Inc.(a)(b)

    11,003       32,789  

Maximus Inc.

    5,127       433,590  

MoneyGram International Inc.(a)

    12,393       73,986  

Net 1 UEPS Technologies Inc.(a)(b)

    8,323       46,526  

Paysign Inc.(a)

    2,202       5,549  

Perficient Inc.(a)

    2,490       307,764  

Sabre Corp.(a)

    70,079       727,420  

SolarWinds Corp.

    3,283       52,856  

Unisys Corp.(a)

    14,734       376,748  

Verra Mobility Corp.(a)

    9,030       134,367  
   

 

 

 
      4,706,161  
Leisure Products — 0.4%  

Acushnet Holdings Corp.

    7,610       387,653  

American Outdoor Brands Inc.(a)

    1,301       29,637  

Johnson Outdoors Inc., Class A

    564       59,886  

Malibu Boats Inc., Class A(a)

    1,805       127,451  

MasterCraft Boat Holdings Inc.(a)

    4,224       113,119  

Nautilus Inc.(a)(b)

    3,805       38,925  

Smith & Wesson Brands Inc.

    10,490       225,535  

Sturm Ruger & Co. Inc.

    3,897       307,395  

Vista Outdoor Inc.(a)

    12,529       524,213  
   

 

 

 
      1,813,814  
Life Sciences Tools & Services — 0.2%  

Fluidigm Corp.(a)(b)

    9,985       51,423  

Maravai LifeSciences Holdings Inc., Class A(a)

    14,466       611,767  
   

 

 

 
      663,190  
Machinery — 2.9%  

Alamo Group Inc.

    1,061       160,423  

Albany International Corp., Class A

    2,567       207,029  

Allison Transmission Holdings Inc.

    22,969       766,246  

Altra Industrial Motion Corp.

    6,430       335,325  

Astec Industries Inc.

    1,832       97,792  

Barnes Group Inc.

    6,288       263,719  

Blue Bird Corp.(a)

    3,533       69,282  

CIRCOR International Inc.(a)

    3,028       86,419  

Colfax Corp.(a)

    9,187       474,233  

Columbus McKinnon Corp./NY

    2,153       101,772  

Commercial Vehicle Group Inc.(a)

    6,380       64,055  

Crane Co.

    10,831       1,118,626  

Douglas Dynamics Inc.

    2,533       107,146  

EnPro Industries Inc.

    2,575       230,875  

Federal Signal Corp.

    5,537       237,039  

Flowserve Corp.

    13,779       463,250  

Gates Industrial Corp. PLC(a)

    20,944       344,319  

Gorman-Rupp Co. (The)

    2,500       106,300  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  83


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Machinery (continued)

 

Greenbrier Companies Inc. (The)

    4,249     $ 174,294  

Hillenbrand Inc.

    7,563       343,814  

Hyster-Yale Materials Handling Inc.

    1,434       68,889  

John Bean Technologies Corp.

    2,022       298,751  

Kadant Inc.

    1,014       225,230  

Kennametal Inc.

    18,230       724,642  

Luxfer Holdings PLC

    3,391       68,193  

Manitowoc Co. Inc. (The)(a)

    7,630       163,511  

Meritor Inc.(a)

    15,353       373,692  

Miller Industries Inc./TN

    2,484       89,772  

Mueller Industries Inc.

    6,880       362,163  

Mueller Water Products Inc., Class A

    13,724       225,211  

Nikola Corp.(a)(b)

    44,293       522,657  

REV Group Inc.

    7,322       110,635  

SPX Corp.(a)

    4,955       287,836  

Standex International Corp.

    1,361       151,438  

Tennant Co.

    2,203       175,050  

Terex Corp.

    4,397       196,986  

Timken Co. (The)

    15,090       1,070,635  

Trinity Industries Inc.

    6,631       186,000  

Wabash National Corp.

    7,359       114,285  

Watts Water Technologies Inc., Class A

    2,513       477,520  

Welbilt Inc.(a)

    12,172       287,990  
   

 

 

 
      11,933,044  
Marine — 0.2%  

Eagle Bulk Shipping Inc.(a)

    2,923       125,835  

Genco Shipping & Trading Ltd.

    2,674       45,913  

Kirby Corp.(a)

    7,689       402,980  

Matson Inc.

    4,895       407,656  
   

 

 

 
      982,384  
Media — 1.1%  

Advantage Solutions Inc.(a)(b)

    11,742       100,277  

AMC Networks Inc., Class A(a)

    6,353       252,786  

Clear Channel Outdoor Holdings Inc.(a)

    102,416       297,006  

comScore Inc.(a)(b)

    14,840       58,024  

Entercom Communications Corp.(a)

    26,462       85,472  

EW Scripps Co. (The), Class A

    6,326       117,664  

Fluent Inc.(a)

    4,271       10,165  

Gannett Co. Inc.(a)

    31,083       180,281  

Gray Television Inc.

    8,636       202,428  

Iheartmedia Inc., Class A(a)

    10,158       196,862  

John Wiley & Sons Inc., Class A

    9,477       513,369  

Loral Space & Communications Inc.

    1,612       80,310  

Meredith Corp.(a)

    8,881       517,230  

National CineMedia Inc.

    13,680       43,502  

Nexstar Media Group Inc., Class A

    3,903       585,177  

Scholastic Corp.

    6,614       239,361  

Sinclair Broadcast Group Inc., Class A

    5,139       134,282  

TEGNA Inc.

    48,146       946,550  

WideOpenWest Inc.(a)

    11,432       217,780  
   

 

 

 
          4,778,526  
Metals & Mining — 2.0%  

Alcoa Corp.

    40,646       1,867,684  

Allegheny Technologies Inc.(a)

    13,124       211,296  

Alpha Metallurgical Resources Inc.(a)

    3,769       232,887  

Arconic Corp.(a)

    16,081       473,103  

Carpenter Technology Corp.

    10,490       323,931  

Century Aluminum Co.(a)

    3,590       47,424  

Coeur Mining Inc.(a)

    55,951       354,170  
Security   Shares     Value  

 

Metals & Mining (continued)

 

Commercial Metals Co.

    26,190     $ 842,794  

Compass Minerals International Inc.

    3,412       223,827  

Gold Resource Corp.

    9,079       16,705  

Haynes International Inc.

    2,805       112,565  

Hecla Mining Co.

    64,019       370,030  

Kaiser Aluminum Corp.

    3,450       335,133  

Materion Corp.

    1,557       112,384  

McEwen Mining Inc.(a)(b)

    80,236       88,260  

Ryerson Holding Corp.

    3,610       95,160  

Schnitzer Steel Industries Inc., Class A

    5,596       301,065  

SunCoke Energy Inc.

    18,177       131,238  

TimkenSteel Corp.(a)

    8,951       124,866  

United States Steel Corp.

    58,673       1,548,380  

Warrior Met Coal Inc.

    11,232       269,231  

Worthington Industries Inc.

    7,250       393,820  
   

 

 

 
          8,475,953  
Mortgage Real Estate Investment — 2.1%  

AG Mortgage Investment Trust Inc.

    3,533       40,877  

Apollo Commercial Real Estate Finance Inc.

    28,757       435,381  

Arbor Realty Trust Inc.

    30,980       623,008  

Ares Commercial Real Estate Corp.

    10,212       159,511  

ARMOUR Residential REIT Inc.

    18,046       189,844  

Blackstone Mortgage Trust Inc., Class A

    34,196       1,125,048  

BrightSpire Capital Inc.

    20,422       200,340  

Cherry Hill Mortgage Investment Corp.

    3,813       34,774  

Chimera Investment Corp.

    51,504       803,977  

Dynex Capital Inc.

    7,540       131,950  

Ellington Financial Inc.

    6,356       115,552  

Franklin BSP Realty Trust Inc.(a)

    6,977       114,492  

Granite Point Mortgage Trust Inc.

    12,144       162,730  

Hannon Armstrong Sustainable Infrastructure Capital Inc.

    7,012       423,525  

Invesco Mortgage Capital Inc.

    62,455       196,109  

KKR Real Estate Finance Trust Inc.

    8,945       194,196  

Ladder Capital Corp.

    24,508       294,096  

MFA Financial Inc.

    86,532       390,259  

New Residential Investment Corp.

    101,360       1,151,450  

New York Mortgage Trust Inc.

    82,818       363,571  

Orchid Island Capital Inc.

    26,974       133,791  

PennyMac Mortgage Investment Trust

    21,264       428,470  

Ready Capital Corp.

    12,651       195,711  

Redwood Trust Inc.

    24,794       336,207  

TPG RE Finance Trust Inc.

    13,028       170,276  

Two Harbors Investment Corp.

    74,860       480,601  

Western Asset Mortgage Capital Corp.

    13,425       33,831  
   

 

 

 
      8,929,577  
Multi-Utilities — 0.9%  

Avista Corp.

    15,164       603,679  

Black Hills Corp.

    13,821       917,438  

MDU Resources Group Inc.

    44,032       1,353,103  

NorthWestern Corp.

    11,234       638,765  

Unitil Corp.

    3,468       144,789  
   

 

 

 
      3,657,774  
Multiline Retail — 0.8%  

Big Lots Inc.

    7,527       333,070  

Dillard’s Inc., Class A

    970       224,206  

Franchise Group Inc.

    5,948       218,886  

Macy’s Inc.

    66,770       1,767,402  

Nordstrom Inc.(a)(b)

    24,167       694,318  
   

 

 

 
      3,237,882  
 

 

 

84  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

Oil, Gas & Consumable Fuels — 6.0%

 

Aemetis Inc.(a)

    3,919     $ 77,988  

Alto Ingredients Inc.(a)

    16,395       87,221  

Altus Midstream Co., Class A

    283       17,495  

Antero Midstream Corp.

    70,880       754,163  

Antero Resources Corp.(a)

    62,038       1,232,695  

Arch Resources Inc.(a)

    3,342       304,389  

Berry Corp.

    14,535       139,681  

Brigham Minerals Inc., Class A

    4,981       115,460  

California Resources Corp.(a)

    17,868       824,251  

Callon Petroleum Co.(a)

    8,558       442,705  

Centennial Resource Development Inc./DE, Class A(a)(b)

    39,571       284,911  

Centrus Energy Corp., Class A(a)(b)

    1,208       68,457  

Chesapeake Energy Corp.

    21,279       1,356,324  

Civitas Resources Inc.

    6,764       379,731  

CNX Resources Corp.(a)

    47,363       691,974  

Comstock Resources Inc.(a)

    19,670       194,143  

CONSOL Energy Inc.(a)

    6,895       189,682  

CVR Energy Inc.

    6,300       120,771  

Delek U.S. Holdings Inc.(a)

    16,558       322,053  

Dorian LPG Ltd.

    6,100       73,932  

Earthstone Energy Inc., Class A(a)

    5,926       60,149  

EQT Corp.(a)

    65,682       1,307,729  

Equitrans Midstream Corp.

    88,560       913,054  

Extraction Oil & Gas Inc.(a)

    3,391       225,942  

Gran Tierra Energy Inc.(a)(b)

    79,815       73,342  

Green Plains Inc.(a)

    8,480       321,816  

HollyFrontier Corp.

    32,468       1,097,418  

International Seaways Inc.

    9,241       162,180  

Kosmos Energy Ltd.(a)

    89,473       322,103  

Laredo Petroleum Inc.(a)

    2,935       221,299  

Magnolia Oil & Gas Corp., Class A

    30,856       644,273  

Matador Resources Co.

    23,883       999,504  

Murphy Oil Corp.

    31,598       879,372  

Northern Oil and Gas Inc.

    11,808       273,473  

Oasis Petroleum Inc.

    4,022       485,053  

Ovintiv Inc.

    56,731       2,128,547  

Par Pacific Holdings Inc.(a)

    9,893       152,946  

PBF Energy Inc., Class A(a)

    20,637       301,507  

PDC Energy Inc.

    21,430       1,121,003  

Peabody Energy Corp.(a)

    18,383       218,574  

Penn Virginia Corp.(a)

    3,408       112,600  

Range Resources Corp.(a)

    56,423       1,315,784  

Renewable Energy Group Inc.(a)

    10,913       698,432  

REX American Resources Corp.(a)

    1,141       100,351  

Ring Energy Inc.(a)(b)

    17,314       65,101  

SandRidge Energy Inc.(a)(b)

    6,994       89,523  

SM Energy Co.

    26,351       904,366  

Southwestern Energy Co.(a)

    147,047       717,589  

Talos Energy Inc.(a)

    8,868       115,018  

Tellurian Inc.(a)(b)

    26,312       103,143  

Vine Energy Inc., Class A(a)

    5,109       87,211  

W&T Offshore Inc.(a)(b)

    19,962       82,044  

Whiting Petroleum Corp.(a)

    8,557       557,318  

World Fuel Services Corp.

    14,106       430,656  
   

 

 

 
      24,966,446  
Paper & Forest Products — 0.7%  

Clearwater Paper Corp.(a)

    3,656       152,930  

Domtar Corp.(a)

    10,807       589,954  

Glatfelter Corp.

    5,957       97,874  

Louisiana-Pacific Corp.

    20,674           1,218,319  
Security   Shares     Value  

 

Paper & Forest Products (continued)

 

Mercer International Inc.

    4,616     $ 49,714  

Neenah Inc.

    3,705       187,251  

Resolute Forest Products Inc.

    10,353       121,751  

Schweitzer-Mauduit International Inc.

    6,871       239,386  

Verso Corp., Class A

    5,412       119,497  
   

 

 

 
          2,776,676  
Personal Products — 0.5%  

BellRing Brands Inc., Class A(a)

    3,715       99,636  

Edgewell Personal Care Co.

    11,853       414,736  

elf Beauty Inc.(a)

    3,706       119,741  

Herbalife Nutrition Ltd.(a)

    22,184       1,029,338  

Nu Skin Enterprises Inc., Class A

    10,918       438,358  

Revlon Inc., Class A(a)

    1,692       17,529  

USANA Health Sciences Inc.(a)

    1,298       125,984  
   

 

 

 
      2,245,322  
Pharmaceuticals — 1.2%  

Aerie Pharmaceuticals Inc.(a)

    3,719       39,533  

Amneal Pharmaceuticals Inc.(a)

    21,615       118,666  

Amphastar Pharmaceuticals Inc.(a)

    3,880       72,478  

ANI Pharmaceuticals Inc.(a)

    2,139       79,956  

Aquestive Therapeutics Inc.(a)(b)

    5,879       30,218  

Aytu BioPharma Inc.(a)

    2,393       5,959  

BioDelivery Sciences International Inc.(a)

    9,222       37,626  

Cara Therapeutics Inc.(a)

    9,150       153,994  

cbdMD Inc.(a)(b)

    5,612       9,933  

Collegium Pharmaceutical Inc.(a)

    7,857       154,233  

Cymabay Therapeutics Inc.(a)(b)

    5,565       21,703  

Endo International PLC(a)

    50,704       215,492  

Esperion Therapeutics Inc.(a)(b)

    6,296       56,286  

Fulcrum Therapeutics Inc.(a)

    2,834       62,745  

Hepion Pharmaceuticals Inc.(a)(b)

    8,792       12,573  

Innoviva Inc.(a)

    13,675       238,629  

Intra-Cellular Therapies Inc.(a)

    4,451       191,705  

Lannett Co. Inc.(a)(b)

    4,323       11,802  

Marinus Pharmaceuticals Inc.(a)(b)

    3,978       45,747  

Nektar Therapeutics(a)(b)

    23,109       350,332  

NGM Biopharmaceuticals Inc.(a)

    3,619       66,843  

Novan Inc.(a)(b)

    1,310       8,738  

Odonate Therapeutics Inc.(a)(b)

    4,063       12,473  

Onconova Therapeutics Inc.(a)(b)

    2,250       7,785  

Paratek Pharmaceuticals Inc.(a)

    4,666       23,423  

Perrigo Co. PLC

    29,078       1,312,872  

Phibro Animal Health Corp., Class A

    4,491       98,532  

Pliant Therapeutics Inc.(a)

    2,479       39,490  

Prestige Consumer Healthcare Inc.(a)

    10,916       654,851  

Provention Bio Inc.(a)

    5,033       31,507  

Reata Pharmaceuticals Inc., Class A(a)(b)

    1,681       161,393  

Relmada Therapeutics Inc.(a)

    1,824       42,809  

Seelos Therapeutics Inc.(a)(b)

    10,518       22,719  

SIGA Technologies Inc.(a)(b)

    4,794       34,565  

Supernus Pharmaceuticals Inc.(a)

    11,688       348,887  

TFF Pharmaceuticals Inc.(a)(b)

    2,793       21,534  

Zynerba Pharmaceuticals Inc.(a)

    9,558       36,607  
   

 

 

 
      4,834,638  
Professional Services — 1.6%  

ASGN Inc.(a)

    5,789       692,712  

Barrett Business Services Inc.

    1,099       90,118  

CACI International Inc., Class A(a)(b)

    3,174       912,969  

CBIZ Inc.(a)

    4,649       170,665  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  85


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

 

 

Security   Shares     Value  
Professional Services (continued)  

CRA International Inc.

    663     $ 72,811  

Forrester Research Inc.(a)

    687       36,583  

Heidrick & Struggles International Inc.

    2,149       100,745  

Huron Consulting Group Inc.(a)

    2,656       133,225  

ICF International Inc.

    1,928       193,745  

KBR Inc.

    30,572       1,297,476  

Kelly Services Inc., Class A, NVS

    5,119       92,295  

Kforce Inc.

    1,566       101,414  

ManpowerGroup Inc.

    6,907       667,561  

ManTech International Corp./VA, Class A

    5,988       516,285  

Resources Connection Inc.

    6,853       119,311  

Science Applications International Corp.

    12,617             1,132,754  

TrueBlue Inc.(a)

    4,247       118,279  

Willdan Group Inc.(a)

    1,314       43,927  
   

 

 

 
      6,492,875  
Real Estate Management & Development — 0.7%  

Cushman & Wakefield PLC(a)

    32,496       597,601  

Forestar Group Inc.(a)

    3,838       75,110  

Howard Hughes Corp. (The)(a)

    4,548       396,267  

Kennedy-Wilson Holdings Inc.

    26,623       595,557  

Marcus & Millichap Inc.(a)

    3,427       161,412  

Newmark Group Inc., Class A

    35,671       530,784  

RE/MAX Holdings Inc., Class A

    4,050       128,831  

Realogy Holdings Corp.(a)

    25,463       441,019  

RMR Group Inc. (The), Class A

    3,377       117,486  
   

 

 

 
      3,044,067  
Road & Rail — 1.2%  

ArcBest Corp.

    2,615       234,958  

Avis Budget Group Inc.(a)

    10,272       1,780,240  

Covenant Logistics Group Inc., Class A(a)

    2,369       67,279  

Daseke Inc.(a)

    5,593       52,854  

Heartland Express Inc.

    10,230       167,056  

Landstar System Inc.

    3,198       562,240  

Marten Transport Ltd.

    13,025       216,606  

Ryder System Inc.

    11,681       992,301  

Schneider National Inc., Class B

    7,605       189,669  

U.S. Xpress Enterprises Inc., Class A(a)(b)

    5,280       39,970  

Werner Enterprises Inc.

    13,458       609,916  

Yellow Corp.(a)(b)

    7,588       66,395  
   

 

 

 
      4,979,484  
Semiconductors & Semiconductor Equipment — 1.0%  

Alpha & Omega Semiconductor Ltd.(a)

    2,455       85,066  

Amkor Technology Inc.

    11,585       253,943  

AXT Inc.(a)

    3,354       27,402  

Cirrus Logic Inc.(a)

    4,886       394,838  

CMC Materials Inc.

    2,626       337,100  

Diodes Inc.(a)

    5,560       534,260  

Ichor Holdings Ltd.(a)

    2,211       96,665  

Meta Materials Inc.(a)(b)

    24,408       114,718  

NeoPhotonics Corp.(a)

    6,169       62,430  

Onto Innovation Inc.(a)

    3,779       299,335  

Photronics Inc.(a)

    13,425       174,391  

Rambus Inc.(a)

    15,419       358,800  

SMART Global Holdings Inc.(a)

    2,375       126,968  

Synaptics Inc.(a)

    3,857       750,456  

Ultra Clean Holdings Inc.(a)

    4,474       221,776  

Veeco Instruments Inc.(a)

    6,622       160,848  
   

 

 

 
        3,998,996  

 

 

Security   Shares     Value  
Software — 1.3%  

American Software Inc./GA, Class A

    2,918     $ 84,418  

Avaya Holdings Corp.(a)

    18,337       341,435  

Benefitfocus Inc.(a)

    6,748       73,958  

Blackbaud Inc.(a)

    5,534       392,969  

CDK Global Inc.

    15,892       691,620  

ChannelAdvisor Corp.(a)

    1,982       50,561  

CommVault Systems Inc.(a)

    3,914       240,711  

Ebix Inc.

    5,244       172,056  

Intrusion Inc.(a)(b)

    2,233       8,798  

Kaleyra Inc.(a)(b)

    2,456       28,023  

McAfee Corp., Class A

    6,697       143,115  

NCR Corp.(a)

    28,539             1,128,432  

Nutanix Inc., Class A(a)

    22,993       788,890  

Progress Software Corp.

    4,169       214,328  

Rimini Street Inc.(a)

    2,198       22,881  

Synchronoss Technologies Inc.(a)

    9,806       25,888  

Verint Systems Inc.(a)

    7,040       328,064  

Vertex Inc., Class A(a)(b)

    5,909       123,025  

VirnetX Holding Corp.(a)

    7,415       28,548  

Vonage Holdings Corp.(a)

    16,575       267,189  

Xperi Holding Corp.

    11,850       212,352  

Zix Corp.(a)

    6,109       51,743  
   

 

 

 
      5,419,004  
Specialty Retail — 3.6%  

Aaron’s Co. Inc. (The)

    7,099       166,046  

Abercrombie & Fitch Co., Class A(a)

    5,831       230,558  

Academy Sports & Outdoors Inc.(a)

    18,916       809,226  

American Eagle Outfitters Inc.

    33,305       790,661  

America’s Car-Mart Inc./TX(a)

    722       86,272  

Arko Corp.(a)

    7,756       74,380  

Asbury Automotive Group Inc.(a)(b)

    1,754       343,275  

Barnes & Noble Education Inc.(a)

    7,846       81,441  

Bed Bath & Beyond Inc.(a)

    22,730       319,129  

Big 5 Sporting Goods Corp.

    4,617       111,639  

Buckle Inc. (The)

    6,479       269,656  

Caleres Inc.

    8,284       191,029  

Camping World Holdings Inc., Class A

    4,318       160,846  

Cato Corp. (The), Class A

    4,375       77,131  

Chico’s FAS Inc.(a)

    26,957       147,185  

Children’s Place Inc. (The)(a)

    3,044       252,317  

Conn’s Inc.(a)

    4,215       93,868  

Container Store Group Inc. (The)(a)

    4,421       48,896  

Designer Brands Inc. , Class A(a)

    13,319       180,206  

Dick’s Sporting Goods Inc.

    14,229       1,767,384  

Express Inc.(a)

    14,463       55,538  

Foot Locker Inc.

    19,635       936,000  

Genesco Inc.(a)

    3,064       185,648  

Group 1 Automotive Inc.

    3,947       709,671  

Guess? Inc.

    4,273       88,494  

Haverty Furniture Companies Inc.

    1,904       54,645  

Hibbett Inc.

    3,282       254,158  

JOANN Inc.

    784       8,012  

Kirkland’s Inc.(a)(b)

    2,998       67,395  

Lazydays Holdings Inc.(a)

    926       19,529  

Lumber Liquidators Holdings Inc.(a)

    2,699       48,798  

MarineMax Inc.(a)(b)

    2,151       111,400  

Monro Inc.

    2,151       132,846  

Murphy USA Inc.

    5,177       843,592  

ODP Corp. (The)(a)

    10,350       448,155  

OneWater Marine Inc., Class A

    1,007       44,650  
 

 

 

86  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

 

 

Security   Shares     Value  
Specialty Retail (continued)  

Party City Holdco Inc.(a)

    24,586     $ 178,740  

Penske Automotive Group Inc.

    6,836       724,958  

Rent-A-Center Inc./TX

    13,199       702,979  

Sally Beauty Holdings Inc.(a)(b)

    24,600       375,396  

Shift Technologies Inc.(a)(b)

    14,501       99,042  

Shoe Carnival Inc.

    3,881       131,449  

Signet Jewelers Ltd.

    11,471       1,022,984  

Sleep Number Corp.(a)

    5,164       456,188  

Sonic Automotive Inc., Class A

    4,602       227,477  

Sportsman’s Warehouse Holdings Inc.(a)

    4,861       83,901  

Tilly’s Inc., Class A

    5,042       69,983  

TravelCenters of America Inc.(a)

    2,639       142,269  

Urban Outfitters Inc.(a)

    14,328       457,493  

Winmark Corp.

    389       90,567  

Zumiez Inc.(a)

    2,611       106,268  
   

 

 

 
          15,079,370  
Technology Hardware, Storage & Peripherals — 0.4%  

Avid Technology Inc.(a)

    7,890       225,969  

Boxlight Corp., Class A(a)

    4,364       9,732  

Corsair Gaming Inc.(a)(b)

    3,057       74,744  

Diebold Nixdorf Inc.(a)

    15,748       141,732  

Eastman Kodak Co.(a)

    14,820       100,628  

Immersion Corp.(a)

    3,085       24,649  

Quantum Corp.(a)

    10,938       62,456  

Super Micro Computer Inc.(a)

    9,498       336,134  

Turtle Beach Corp.(a)

    1,355       38,970  

Xerox Holdings Corp.

    29,938       532,896  
   

 

 

 
      1,547,910  
Textiles, Apparel & Luxury Goods — 1.1%  

Carter’s Inc.

    3,482       343,047  

Fossil Group Inc.(a)

    10,493       124,027  

G-III Apparel Group Ltd.(a)

    9,502       272,328  

Hanesbrands Inc.

    75,951       1,294,205  

Kontoor Brands Inc.

    10,446       553,638  

Lakeland Industries Inc.(a)

    1,175       24,569  

Movado Group Inc.

    3,754       125,008  

Oxford Industries Inc.

    1,907       176,817  

Ralph Lauren Corp.

    5,148       654,671  

Rocky Brands Inc.

    706       38,512  

Skechers U.S.A. Inc., Class A(a)

    10,637       491,536  

Steven Madden Ltd.

    9,496       428,270  

Unifi Inc.(a)

    1,792       43,044  

Vera Bradley Inc.(a)

    5,610       55,034  
   

 

 

 
      4,624,706  
Thrifts & Mortgage Finance — 2.5%  

Axos Financial Inc.(a)

    7,164       379,692  

Capitol Federal Financial Inc.

    30,645       371,724  

Essent Group Ltd.

    24,486       1,175,328  

Federal Agricultural Mortgage Corp., Class C, NVS

    2,056       259,241  

Flagstar Bancorp. Inc.

    11,413       538,579  

Kearny Financial Corp./MD

    10,990       147,486  

loanDepot Inc., Class A

    2,310       15,154  

Merchants Bancorp./IN

    1,485       65,979  

Meridian Bancorp. Inc.

    5,936       137,715  

MGIC Investment Corp.

    74,357       1,201,609  

Mr Cooper Group Inc.(a)

    10,196       446,993  

New York Community Bancorp. Inc.

    104,537       1,299,395  

NMI Holdings Inc., Class A(a)

    10,316       250,473  

Northfield Bancorp. Inc.

    9,662       169,568  

 

 

Security   Shares     Value  
Thrifts & Mortgage Finance (continued)  

Northwest Bancshares Inc.

    27,224     $ 375,691  

Ocwen Financial Corp.(a)

    1,847       58,014  

PennyMac Financial Services Inc.

    7,356       456,513  

Premier Financial Corp.

    4,255       135,649  

Provident Financial Services Inc.

    17,813       441,050  

Radian Group Inc.

    23,531       561,685  

Rocket Companies Inc., Class A

    29,644       488,533  

TFS Financial Corp.

    6,769       131,725  

TrustCo Bank Corp. NY

    3,291       110,446  

Walker & Dunlop Inc.

    3,459       449,912  

Washington Federal Inc.

    14,828       524,318  

Waterstone Financial Inc.

    4,928       101,862  

WSFS Financial Corp.

    3,752       194,391  
   

 

 

 
      10,488,725  
Tobacco — 0.1%  

Universal Corp./VA

    5,404       253,988  

Vector Group Ltd.

    16,935       224,558  
   

 

 

 
      478,546  
Trading Companies & Distributors — 2.2%  

Air Lease Corp.

    23,303       933,285  

Applied Industrial Technologies Inc.

    5,353       521,810  

Beacon Roofing Supply Inc.(a)

    7,178       379,501  

BlueLinx Holdings Inc.(a)

    796       37,914  

Boise Cascade Co.

    8,606       487,272  

CAI International Inc.

    3,540       197,992  

DXP Enterprises Inc./TX(a)

    1,847       60,877  

GATX Corp.

    4,205       398,844  

GMS Inc.(a)

    9,425       466,820  

H&E Equipment Services Inc.

    3,852       173,648  

Herc Holdings Inc.

    1,850       336,774  

McGrath RentCorp

    3,262       235,321  

MRC Global Inc.(a)

    13,454       111,668  

MSC Industrial Direct Co. Inc., Class A

    10,236       860,541  

NOW Inc.(a)

    24,259       175,150  

Rush Enterprises Inc., Class A

    6,154       320,500  

Titan Machinery Inc.(a)

    2,193       62,325  

Triton International Ltd.

    14,665       912,016  

Univar Solutions Inc.(a)

    37,282       953,674  

Veritiv Corp.(a)

    3,087       331,143  

WESCO International Inc.(a)

    9,630       1,247,663  
   

 

 

 
      9,204,738  
Water Utilities — 0.2%  

American States Water Co.

    3,463       314,579  

California Water Service Group

    4,709       286,684  

Middlesex Water Co.

    1,776       195,573  

SJW Group

    2,696       177,720  
   

 

 

 
      974,556  
Wireless Telecommunication Services — 0.2%  

Gogo Inc.(a)

    7,411       120,503  

Telephone and Data Systems Inc.

    21,627       405,290  

U.S. Cellular Corp.(a)

    3,300       100,881  
   

 

 

 
      626,674  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $386,870,184)

 

      416,067,911  
   

 

 

 
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  87


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Preferred Stocks

   
Semiconductors & Semiconductor Equipment — 0.0%  

Meta Materials Inc., Preference Shares, NVS(b)

    14,281     $ 18,279  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $13,818)

 

    18,279  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 4.4%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    17,037,974       17,046,493  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    1,050,000       1,050,000  
   

 

 

 
      18,096,493  
   

 

 

 

Total Short-Term Investments — 4.4%
(Cost: $18,093,252)

 

    18,096,493  
   

 

 

 

Total Investments in Securities — 104.1%
(Cost: $404,977,254)

 

    434,182,683  

Other Assets, Less Liabilities — (4.1)%

 

    (16,988,893
   

 

 

 

Net Assets — 100.0%

    $   417,193,790  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income    

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 14,020,978     $ 3,025,772 (a)    $     $ (878   $ 621     $ 17,046,493       17,037,974     $ 42,146 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    160,000       890,000 (a)                         1,050,000       1,050,000       22        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (878   $ 621     $ 18,096,493       $ 42,168     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

Russell 2000 E-Mini Index

     1        12/17/21      $ 115      $ 368  

S&P Mid 400 E-Mini Index

     3        12/17/21        837        38,362  
           

 

 

 
            $ 38,730  
           

 

 

 

 

 

88  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Small-Cap Value ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 38,730  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ (39,767
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 38,726  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 796,037  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 416,067,911      $      $      $ 416,067,911  

Preferred Stocks

     18,279                      18,279  

Money Market Funds

     18,096,493                      18,096,493  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 434,182,683      $             —      $             —      $ 434,182,683  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 38,730      $      $      $ 38,730  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  89


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks  
Aerospace & Defense — 1.3%  

Axon Enterprise Inc.(a)

    1,405     $ 252,844  

Boeing Co. (The)(a)

    11,912       2,466,141  

General Dynamics Corp.

    5,026       1,019,022  

HEICO Corp.

    890       124,057  

HEICO Corp., Class A

    1,621       203,727  

Howmet Aerospace Inc.

    8,317       246,932  

Huntington Ingalls Industries Inc.

    863       174,956  

L3Harris Technologies Inc.

    4,365       1,006,307  

Lockheed Martin Corp.

    5,345       1,776,250  

Northrop Grumman Corp.

    3,257       1,163,466  

Raytheon Technologies Corp.

    32,635       2,899,946  

Textron Inc.

    4,880       360,388  

TransDigm Group Inc.(a)

    1,137       709,283  
   

 

 

 
        12,403,319  
Air Freight & Logistics — 0.6%  

CH Robinson Worldwide Inc.

    2,861       277,488  

Expeditors International of Washington Inc.

    3,670       452,364  

FedEx Corp.

    5,341       1,257,966  

United Parcel Service Inc., Class B

    15,764       3,365,141  
   

 

 

 
      5,352,959  
Airlines — 0.2%  

Alaska Air Group Inc.(a)

    2,709       143,035  

American Airlines Group Inc.(a)

    13,947       267,783  

Delta Air Lines Inc.(a)

    13,909       544,259  

Southwest Airlines Co.(a)

    12,862       608,115  

United Airlines Holdings Inc.(a)(b)

    7,000       322,980  
   

 

 

 
      1,886,172  
Auto Components — 0.2%  

Aptiv PLC(a)

    5,883       1,017,112  

Autoliv Inc.

    1,734       167,938  

BorgWarner Inc.

    5,276       237,789  

Gentex Corp.

    5,089       180,100  

Lear Corp.

    1,299       223,233  

QuantumScape Corp.(a)(b)

    5,037       145,771  
   

 

 

 
      1,971,943  
Automobiles — 2.5%  

Ford Motor Co.(a)

    85,241       1,455,916  

General Motors Co.(a)

    31,359       1,706,870  

Harley-Davidson Inc.

    3,338       121,804  

Lucid Group Inc.(a)(b)

    11,956       442,253  

Tesla Inc.(a)

    17,561       19,562,954  

Thor Industries Inc.

    1,205       122,862  
   

 

 

 
      23,412,659  
Banks — 4.1%  

Bank of America Corp.

    160,273       7,657,844  

Citigroup Inc.

    43,868       3,033,911  

Citizens Financial Group Inc.

    9,202       435,991  

Comerica Inc.

    2,909       247,527  

Commerce Bancshares Inc.

    2,325       163,936  

Cullen/Frost Bankers Inc.

    1,231       159,415  

East West Bancorp. Inc.

    3,082       244,957  

Fifth Third Bancorp

    15,004       653,124  

First Citizens BancShares Inc./NC, Class A(b)

    154       125,341  

First Horizon Corp.

    12,014       203,878  

First Republic Bank/CA

    3,828       828,111  

Huntington Bancshares Inc./OH

    32,081       504,955  

JPMorgan Chase & Co.

    64,675       10,987,636  
Security   Shares     Value  
Banks (continued)  

KeyCorp

    20,775     $ 483,434  

M&T Bank Corp.

    2,795       411,200  

People’s United Financial Inc.

    9,299       159,385  

PNC Financial Services Group Inc. (The)

    9,183       1,937,888  

Regions Financial Corp.

    20,443       484,090  

Signature Bank/New York NY

    1,316       391,931  

SVB Financial Group(a)

    1,266       908,228  

Truist Financial Corp.

    28,833       1,830,031  

U.S. Bancorp

    29,152       1,759,906  

Wells Fargo & Co.

    88,879       4,547,050  

Western Alliance Bancorp

    2,248       260,970  

Zions Bancorp. NA

    3,564       224,496  
   

 

 

 
      38,645,235  
Beverages — 1.3%  

Boston Beer Co. Inc. (The), Class A, NVS(a)

    200       98,496  

Brown-Forman Corp., Class A

    1,236       79,141  

Brown-Forman Corp., Class B, NVS

    3,949       268,098  

Coca-Cola Co. (The)

    84,085       4,739,872  

Constellation Brands Inc., Class A

    3,630       787,020  

Keurig Dr Pepper Inc.

    16,013       577,909  

Molson Coors Beverage Co., Class B

    4,159       183,370  

Monster Beverage Corp.(a)

    8,158       693,430  

PepsiCo Inc.

    29,914       4,834,102  
   

 

 

 
        12,261,438  
Biotechnology — 2.0%  

AbbVie Inc.

    38,248       4,385,898  

Acceleron Pharma Inc.(a)

    1,148       199,959  

Alnylam Pharmaceuticals Inc.(a)

    2,580       411,665  

Amgen Inc.

    12,291       2,543,868  

Arrowhead Pharmaceuticals Inc.(a)

    2,262       144,361  

Biogen Inc.(a)

    3,238       863,510  

BioMarin Pharmaceutical Inc.(a)

    4,009       317,633  

Bridgebio Pharma Inc.(a)(b)

    2,375       117,277  

CRISPR Therapeutics AG(a)(b)

    1,523       139,096  

Exact Sciences Corp.(a)

    3,750       357,075  

Exelixis Inc.(a)

    6,878       147,946  

Fate Therapeutics Inc.(a)

    1,738       93,504  

Gilead Sciences Inc.

    27,112       1,759,027  

Horizon Therapeutics PLC(a)

    4,843       580,724  

Incyte Corp.(a)

    4,004       268,188  

Mirati Therapeutics Inc.(a)

    1,014       191,666  

Moderna Inc.(a)

    7,601       2,623,941  

Natera Inc.(a)(b)

    1,839       210,694  

Neurocrine Biosciences Inc.(a)

    2,075       218,726  

Novavax Inc.(a)(b)

    1,617       240,658  

Regeneron Pharmaceuticals Inc.(a)

    2,275       1,455,863  

Seagen Inc.(a)

    2,885       508,712  

Ultragenyx Pharmaceutical Inc.(a)

    1,474       123,698  

United Therapeutics Corp.(a)

    977       186,373  

Vertex Pharmaceuticals Inc.(a)

    5,630       1,041,156  
   

 

 

 
      19,131,218  
Building Products — 0.6%  

A O Smith Corp.

    2,906       212,341  

Advanced Drainage Systems Inc.

    1,211       136,601  

Allegion PLC

    1,934       248,132  

AZEK Co. Inc. (The)(a)

    2,421       88,827  

Builders FirstSource Inc.(a)

    4,501       262,273  

Carlisle Companies Inc.

    1,129       251,677  

Carrier Global Corp.

    18,849       984,483  
 

 

 

90  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Building Products (continued)  

Fortune Brands Home & Security Inc.

    2,956     $ 299,738  

Johnson Controls International PLC

    15,348       1,126,083  

Lennox International Inc.

    723       216,379  

Masco Corp.

    5,363       351,545  

Owens Corning

    2,255       210,640  

Trane Technologies PLC

    5,161       933,780  

Trex Co. Inc.(a)

    2,468       262,595  
   

 

 

 
   

 

 

 

5,585,094

 

 

Capital Markets — 3.3%  

Ameriprise Financial Inc.

    2,470       746,261  

Apollo Global Management Inc.

    4,511       347,121  

Ares Management Corp., Class A

    3,551       300,912  

Bank of New York Mellon Corp. (The)

    17,252       1,021,318  

BlackRock Inc.(c)

    3,099       2,923,783  

Blackstone Inc., NVS

    14,824       2,051,938  

Carlyle Group Inc. (The)

    3,004       168,675  

Charles Schwab Corp. (The)

    32,484       2,664,662  

CME Group Inc.

    7,753       1,709,924  

FactSet Research Systems Inc.

    816       362,214  

Franklin Resources Inc.

    6,017       189,475  

Goldman Sachs Group Inc. (The)

    7,296       3,015,802  

Intercontinental Exchange Inc.

    12,156       1,683,120  

Invesco Ltd.

    7,416       188,441  

Jefferies Financial Group Inc.

    4,350       187,050  

KKR & Co. Inc.

    12,648       1,007,666  

LPL Financial Holdings Inc.

    1,738       285,067  

MarketAxess Holdings Inc.

    813       332,249  

Moody’s Corp.

    3,500       1,414,525  

Morgan Stanley

    31,592       3,247,026  

Morningstar Inc.

    514       162,809  

MSCI Inc.

    1,791       1,190,800  

Nasdaq Inc.

    2,542       533,490  

Northern Trust Corp.

    4,523       556,510  

Raymond James Financial Inc.

    3,959       390,318  

S&P Global Inc.

    5,214               2,472,270  

SEI Investments Co.

    2,329       146,820  

State Street Corp.

    7,942       782,684  

T Rowe Price Group Inc.

    4,930       1,069,218  

Tradeweb Markets Inc., Class A

    2,277       202,881  
   

 

 

 
   

 

 

 

31,355,029

 

 

Chemicals — 1.6%  

Air Products & Chemicals Inc.

    4,773       1,430,993  

Albemarle Corp.

    2,535       634,941  

Axalta Coating Systems Ltd.(a)

    4,505       140,511  

Celanese Corp.

    2,391       386,170  

CF Industries Holdings Inc.

    4,726       268,437  

Corteva Inc.

    15,814       682,374  

Dow Inc.

    16,200       906,714  

DuPont de Nemours Inc.

    11,363       790,865  

Eastman Chemical Co.

    2,916       303,352  

Ecolab Inc.

    5,365       1,192,210  

FMC Corp.

    2,800       254,828  

International Flavors & Fragrances Inc.

    5,410       797,705  

Linde PLC

    11,176       3,567,379  

LyondellBasell Industries NV, Class A

    5,740       532,787  

Mosaic Co. (The)

    7,344       305,290  

PPG Industries Inc.

    5,154       827,578  

RPM International Inc.

    2,754       240,149  

Scotts Miracle-Gro Co. (The)

    850       126,191  
Security   Shares     Value  
Chemicals (continued)  

Sherwin-Williams Co. (The)

    5,236     $ 1,657,770  

Westlake Chemical Corp.

    754       73,394  
   

 

 

 
   

 

 

 

15,119,638

 

 

Commercial Services & Supplies — 0.4%  

Cintas Corp.

    1,900       822,890  

Copart Inc.(a)

    4,585       712,005  

IAA Inc.(a)

    2,973       177,340  

Republic Services Inc.

    4,564       614,314  

Rollins Inc.

    4,883       172,028  

Waste Management Inc.

    8,357       1,339,042  
   

 

 

 
   

 

 

 

3,837,619

 

 

Communications Equipment — 0.8%  

Arista Networks Inc.(a)

    1,196       489,989  

Ciena Corp.(a)

    3,420       185,672  

Cisco Systems Inc.

    91,210       5,105,024  

F5 Networks Inc.(a)

    1,300       274,495  

Juniper Networks Inc.

    6,915       204,131  

Motorola Solutions Inc.

    3,649       907,105  

Ubiquiti Inc.

    131       40,024  
   

 

 

 
   

 

 

 

7,206,440

 

 

Construction & Engineering — 0.1%  

AECOM(a)

    3,129       213,929  

MasTec Inc.(a)

    1,230       109,630  

Quanta Services Inc.

    2,967       359,838  
   

 

 

 
   

 

 

 

683,397

 

 

Construction Materials — 0.1%  

Martin Marietta Materials Inc.

    1,352       531,120  

Vulcan Materials Co.

    2,875       546,595  
   

 

 

 
   

 

 

 

1,077,715

 

 

Consumer Finance — 0.7%  

Ally Financial Inc.

    7,833       373,947  

American Express Co.

    13,925       2,419,886  

Capital One Financial Corp.

    9,635       1,455,174  

Discover Financial Services

    6,506       737,260  

OneMain Holdings Inc.

    2,395       126,480  

SoFi Technologies Inc.(a)(b)

    12,775       256,650  

Synchrony Financial

    12,375       574,819  

Upstart Holdings Inc.(a)

    1,003       323,006  
   

 

 

 
   

 

 

 

6,267,222

 

 

Containers & Packaging — 0.3%  

Amcor PLC

    33,523       404,623  

AptarGroup Inc.

    1,437       173,561  

Avery Dennison Corp.

    1,807       393,420  

Ball Corp.

    7,039       643,928  

Berry Global Group Inc.(a)

    2,934       192,294  

Crown Holdings Inc.

    2,853       296,683  

International Paper Co.

    8,521       423,238  

Packaging Corp. of America

    2,032       279,136  

Sealed Air Corp.

    3,308       196,231  

Westrock Co.

    5,815       279,701  
   

 

 

 
   

 

 

 

3,282,815

 

 

Distributors — 0.1%  

Genuine Parts Co.

    3,065       401,852  

LKQ Corp.(a)

    5,874       323,540  

Pool Corp.

    867       446,644  
   

 

 

 
   

 

 

 

        1,172,036

 

 

Diversified Consumer Services — 0.1%  

Bright Horizons Family Solutions Inc.(a)

    1,334       221,444  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  91


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified Consumer Services (continued)  

Chegg Inc.(a)(b)

    3,120     $ 185,453  

Service Corp. International

    3,587       245,673  
   

 

 

 
   

 

 

 

652,570

 

 

Diversified Financial Services — 1.3%  

Berkshire Hathaway Inc., Class B(a)

    40,121       11,515,128  

Equitable Holdings Inc.

    8,374       280,529  

Voya Financial Inc.

    2,455       171,286  
   

 

 

 
   

 

 

 

11,966,943

 

 

Diversified Telecommunication Services — 0.9%  

AT&T Inc.

    154,536       3,903,579  

Lumen Technologies Inc.

    21,780       258,311  

Verizon Communications Inc.

    89,607       4,748,275  
   

 

 

 
   

 

 

 

8,910,165

 

 

Electric Utilities — 1.4%  

Alliant Energy Corp.

    5,359       303,159  

American Electric Power Co. Inc.

    10,870       920,798  

Avangrid Inc.

    1,517       79,946  

Duke Energy Corp.

    16,622       1,695,610  

Edison International

    8,254       519,424  

Entergy Corp.

    4,364       449,579  

Evergy Inc.

    5,012       319,515  

Eversource Energy

    7,467       633,948  

Exelon Corp.

    21,242       1,129,862  

FirstEnergy Corp.

    11,754       452,882  

NextEra Energy Inc.

    42,461       3,623,197  

NRG Energy Inc.

    5,179       206,590  

OGE Energy Corp.

    4,417       150,487  

PG&E Corp.(a)

    32,371       375,504  

Pinnacle West Capital Corp.

    2,479       159,871  

PPL Corp.

    16,729       481,795  

Southern Co. (The)

    22,859       1,424,573  

Xcel Energy Inc.

    11,706       756,090  
   

 

 

 
   

 

 

 

13,682,830

 

 

Electrical Equipment — 0.7%  

AMETEK Inc.

    5,023       665,045  

ChargePoint Holdings Inc.(a)

    3,524       87,325  

Eaton Corp. PLC

    8,601       1,417,101  

Emerson Electric Co.

    12,893       1,250,750  

Generac Holdings Inc.(a)

    1,367       681,531  

Hubbell Inc.

    1,150       229,275  

Plug Power Inc.(a)(b)

    11,125       425,754  

Rockwell Automation Inc.

    2,522       805,527  

Sensata Technologies Holding PLC(a)

    3,478       191,638  

Sunrun Inc.(a)

    4,474       258,060  

Vertiv Holdings Co.(b)

    6,125       157,290  
   

 

 

 
   

 

 

 

        6,169,296

 

 

Electronic Equipment, Instruments & Components — 0.7%  

Amphenol Corp., Class A

    12,994       997,549  

Arrow Electronics Inc.(a)

    1,531       177,213  

CDW Corp./DE

    2,987       557,524  

Cognex Corp.

    3,786       331,616  

Corning Inc.

    16,610       590,818  

Flex Ltd.(a)(b)

    10,528       177,923  

IPG Photonics Corp.(a)

    799       127,049  

Jabil Inc.

    3,168       189,953  

Keysight Technologies Inc.(a)

    4,005       720,980  

TE Connectivity Ltd.

    7,124       1,040,104  

Teledyne Technologies Inc.(a)

    1,013       455,060  

Trimble Inc.(a)

    5,425       473,982  
Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Zebra Technologies Corp., Class A(a)

    1,147     $ 612,441  
   

 

 

 
   

 

 

 

        6,452,212

 

 

Energy Equipment & Services — 0.2%  

Baker Hughes Co.

    17,998       451,390  

Halliburton Co.

    19,274       481,657  

Schlumberger NV

    30,074       970,187  
   

 

 

 
   

 

 

 

1,903,234

 

 

Entertainment — 1.9%  

Activision Blizzard Inc.

    16,875       1,319,456  

Electronic Arts Inc.

    6,158       863,660  

Liberty Media Corp.-Liberty Formula One, Class A(a)

    569       29,673  

Liberty Media Corp.-Liberty Formula One, Class C, NVS(a)(b)

    4,317       240,889  

Live Nation Entertainment Inc.(a)

    2,862       289,491  

Netflix Inc.(a)

    9,579       6,612,479  

Playtika Holding Corp.(a)

    2,224       62,895  

Roku Inc.(a)

    2,502       762,860  

Take-Two Interactive Software Inc.(a)

    2,540       459,740  

Walt Disney Co. (The)(a)

    39,329       6,649,354  

Zynga Inc., Class A(a)

    22,214       163,939  
   

 

 

 
   

 

 

 

17,454,436

 

 

Equity Real Estate Investment Trusts (REITs) — 2.8%  

Alexandria Real Estate Equities Inc.

    2,985       609,358  

American Homes 4 Rent, Class A

    5,936       241,002  

American Tower Corp.

    9,851       2,777,687  

Americold Realty Trust

    5,571       164,177  

AvalonBay Communities Inc.

    3,039       719,271  

Boston Properties Inc.

    3,078       349,784  

Camden Property Trust

    2,160       352,296  

Crown Castle International Corp.

    9,341       1,684,182  

CubeSmart

    4,383       241,109  

CyrusOne Inc.

    2,660       218,173  

Digital Realty Trust Inc.

    6,124       966,428  

Duke Realty Corp.

    8,253       464,149  

Equinix Inc.

    1,942       1,625,590  

Equity LifeStyle Properties Inc.

    3,738       315,898  

Equity Residential

    7,370       636,768  

Essex Property Trust Inc.

    1,403       476,922  

Extra Space Storage Inc.

    2,866       565,662  

Federal Realty Investment Trust

    1,541       185,459  

Gaming and Leisure Properties Inc.

    4,821       233,770  

Healthpeak Properties Inc.

    11,621       412,662  

Host Hotels & Resorts Inc.(a)

    15,555       261,791  

Invitation Homes Inc.

    12,510       516,038  

Iron Mountain Inc.

    6,162       281,234  

Kilroy Realty Corp.

    2,304       155,244  

Kimco Realty Corp.

    13,105       296,173  

Lamar Advertising Co., Class A

    1,885       213,382  

Medical Properties Trust Inc.

    12,798       272,981  

Mid-America Apartment Communities Inc.

    2,517       513,997  

National Retail Properties Inc.

    3,819       173,230  

Omega Healthcare Investors Inc.

    5,106       149,912  

Prologis Inc.

    15,990       2,317,910  

Public Storage

    3,313       1,100,512  

Realty Income Corp.

    8,459       604,226  

Regency Centers Corp.

    3,322       233,902  

SBA Communications Corp.

    2,379       821,540  

Simon Property Group Inc.

    7,138       1,046,288  

STORE Capital Corp.

    5,295       181,777  
 

 

 

92  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Equity Real Estate Investment Trusts (REITs) (continued)  

Sun Communities Inc.

    2,517     $ 493,282  

UDR Inc.

    6,061       336,567  

Ventas Inc.

    8,548       456,207  

VEREIT Inc.

    4,869       244,911  

VICI Properties Inc.

    13,335       391,382  

Vornado Realty Trust

    3,460       147,500  

Welltower Inc.

    9,081       730,112  

Weyerhaeuser Co.

    16,293       581,986  

WP Carey Inc.

    4,003       308,671  
   

 

 

 
   

 

 

 

26,071,102

 

 

Food & Staples Retailing — 1.3%  

Casey’s General Stores Inc.

    812       155,530  

Costco Wholesale Corp.

    9,568       4,703,055  

Kroger Co. (The)

    14,772       591,175  

Performance Food Group Co.(a)

    3,350       151,521  

Sysco Corp.

    11,010       846,669  

U.S. Foods Holding Corp.(a)

    4,823       167,213  

Walgreens Boots Alliance Inc.

    15,599       733,465  

Walmart Inc.

    30,930       4,621,561  
   

 

 

 
   

 

 

 

11,970,189

 

 

Food Products — 0.8%  

Archer-Daniels-Midland Co.

    12,151       780,580  

Beyond Meat Inc.(a)(b)

    1,305       129,169  

Bunge Ltd.

    3,086       285,887  

Campbell Soup Co.

    4,272       170,666  

Conagra Brands Inc.

    10,436       336,039  

Darling Ingredients Inc.(a)

    3,512       296,834  

Freshpet Inc.(a)(b)

    943       147,023  

General Mills Inc.

    13,171       813,968  

Hershey Co. (The)

    3,130       548,846  

Hormel Foods Corp.

    5,982       253,158  

JM Smucker Co. (The)

    2,349       288,598  

Kellogg Co.

    5,478       335,801  

Kraft Heinz Co. (The)

    14,618       524,640  

Lamb Weston Holdings Inc.

    3,079       173,810  

McCormick & Co. Inc./MD, NVS

    5,412       434,205  

Mondelez International Inc., Class A

    30,217       1,835,381  

Tyson Foods Inc., Class A

    6,410       512,608  
   

 

 

 
   

 

 

 

        7,867,213

 

 

Gas Utilities — 0.0%  

Atmos Energy Corp.

    2,823       260,055  

UGI Corp.

    4,599       199,642  
   

 

 

 
   

 

 

 

459,697

 

 

Health Care Equipment & Supplies — 3.3%  

Abbott Laboratories

    38,371       4,945,638  

ABIOMED Inc.(a)

    979       325,067  

Align Technology Inc.(a)

    1,595       995,870  

Baxter International Inc.

    10,821       854,426  

Becton Dickinson and Co.

    6,204       1,486,416  

Boston Scientific Corp.(a)

    30,905       1,332,933  

Cooper Companies Inc. (The)

    1,069       445,688  

Danaher Corp.

    13,753       4,287,773  

DENTSPLY SIRONA Inc.

    4,692       268,429  

Dexcom Inc.(a)

    2,089       1,301,886  

Edwards Lifesciences Corp.(a)

    13,525       1,620,566  

Hill-Rom Holdings Inc.

    1,405       217,635  

Hologic Inc.(a)

    5,507       403,718  

IDEXX Laboratories Inc.(a)

    1,835       1,222,367  

Insulet Corp.(a)

    1,497       464,100  
Security   Shares     Value  
Health Care Equipment & Supplies (continued)  

Intuitive Surgical Inc.(a)

    7,719     $ 2,787,562  

Masimo Corp.(a)

    1,086       307,924  

Medtronic PLC

    29,088       3,486,488  

Novocure Ltd.(a)

    1,884       193,242  

Penumbra Inc.(a)

    741       204,924  

ResMed Inc.

    3,164       831,847  

STERIS PLC

    2,168       506,748  

Stryker Corp.

    7,257       1,930,870  

Teleflex Inc.

    1,013       361,580  

Zimmer Biomet Holdings Inc.

    4,531       648,477  
   

 

 

 
   

 

 

 

31,432,174

 

 

Health Care Providers & Services — 2.5%  

Agilon Health Inc.(a)

    1,016       24,892  

Amedisys Inc.(a)

    725       122,772  

AmerisourceBergen Corp.

    3,205       391,074  

Anthem Inc.

    5,273       2,294,440  

Cardinal Health Inc.

    6,307       301,538  

Centene Corp.(a)

    12,669       902,540  

Chemed Corp.

    338       163,000  

Cigna Corp.

    7,344       1,568,752  

CVS Health Corp.

    28,561       2,549,926  

DaVita Inc.(a)

    1,450       149,698  

Encompass Health Corp.

    2,182       138,688  

Guardant Health Inc.(a)

    2,200       256,938  

HCA Healthcare Inc.

    5,320       1,332,447  

Henry Schein Inc.(a)

    3,056       233,326  

Humana Inc.

    2,791       1,292,680  

Laboratory Corp. of America Holdings(a)

    2,094       601,020  

LHC Group Inc.(a)

    704       94,751  

McKesson Corp.

    3,359       698,269  

Molina Healthcare Inc.(a)

    1,256       371,424  

Quest Diagnostics Inc.

    2,655       389,701  

UnitedHealth Group Inc.

    20,409       9,397,732  

Universal Health Services Inc., Class B

    1,615       200,421  
   

 

 

 
   

 

 

 

23,476,029

 

 

Health Care Technology — 0.2%  

Cerner Corp.

    6,421       477,016  

Teladoc Health Inc.(a)

    3,459       517,432  

Veeva Systems Inc., Class A(a)

    3,004       952,298  
   

 

 

 
   

 

 

 

        1,946,746

 

 

Hotels, Restaurants & Leisure — 2.0%  

Airbnb Inc., Class A(a)

    7,258       1,238,650  

Aramark

    5,609       204,616  

Booking Holdings Inc.(a)

    888       2,149,653  

Boyd Gaming Corp.(a)

    1,755       111,934  

Caesars Entertainment Inc.(a)

    4,636       507,457  

Carnival Corp.(a)

    17,358       384,653  

Chipotle Mexican Grill Inc.(a)

    608       1,081,650  

Churchill Downs Inc.

    751       172,730  

Darden Restaurants Inc.

    2,831       408,060  

Domino’s Pizza Inc.

    800       391,176  

DraftKings Inc., Class A(a)(b)

    7,050       328,460  

Expedia Group Inc.(a)

    3,156       518,878  

Hilton Worldwide Holdings Inc.(a)

    6,056       871,761  

Las Vegas Sands Corp.(a)

    7,468       289,833  

Marriott International Inc./MD, Class A(a)

    5,943       950,999  

McDonald’s Corp.

    16,163       3,968,825  

MGM Resorts International

    8,623       406,661  

Norwegian Cruise Line Holdings Ltd.(a)(b)

    8,042       206,840  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  93


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)  

Penn National Gaming Inc.(a)(b)

    3,594     $ 257,330  

Royal Caribbean Cruises Ltd.(a)

    4,849       409,401  

Starbucks Corp.

    25,520       2,706,906  

Texas Roadhouse Inc.

    1,425       126,554  

Vail Resorts Inc.

    870       299,898  

Wynn Resorts Ltd.(a)

    2,321       208,426  

Yum! Brands Inc.

    6,408       800,616  
   

 

 

 
   

 

 

 

19,001,967

 

 

Household Durables — 0.4%  

DR Horton Inc.

    7,029       627,479  

Garmin Ltd.

    3,302       474,167  

Lennar Corp., Class A

    5,903       589,887  

Lennar Corp., Class B

    343       28,153  

Mohawk Industries Inc.(a)(b)

    1,215       215,310  

Newell Brands Inc.

    8,332       190,720  

NVR Inc.(a)

    72       352,426  

PulteGroup Inc.

    5,639       271,123  

Tempur Sealy International Inc.

    4,268       189,798  

Toll Brothers Inc.

    2,444       147,055  

Whirlpool Corp.

    1,337       281,880  
   

 

 

 
   

 

 

 

        3,367,998

 

 

Household Products — 1.1%  

Church & Dwight Co. Inc.

    5,335       466,066  

Clorox Co. (The)

    2,652       432,302  

Colgate-Palmolive Co.

    18,205       1,387,039  

Kimberly-Clark Corp.

    7,316       947,349  

Procter & Gamble Co. (The)

    52,539       7,512,552  
   

 

 

 
   

 

 

 

10,745,308

 

 

Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    14,487       364,059  

Vistra Corp.

    10,153       198,897  
   

 

 

 
   

 

 

 

562,956

 

 

Industrial Conglomerates — 1.0%  

3M Co.

    12,520       2,237,074  

General Electric Co.(b)

    23,753       2,490,977  

Honeywell International Inc.

    14,942       3,266,620  

Roper Technologies Inc.

    2,288       1,116,246  
   

 

 

 
   

 

 

 

9,110,917

 

 

Insurance — 2.0%  

Aflac Inc.

    13,406       719,501  

Alleghany Corp.(a)

    301       196,065  

Allstate Corp. (The)

    6,424       794,456  

American Financial Group Inc./OH

    1,410       191,816  

American International Group Inc.

    18,494       1,092,811  

Aon PLC, Class A

    4,873       1,558,970  

Arch Capital Group Ltd.(a)

    8,603       359,777  

Arthur J Gallagher & Co.

    4,458       747,473  

Assurant Inc.

    1,284       207,122  

Athene Holding Ltd., Class A(a)

    2,713       236,058  

Brown & Brown Inc.

    5,006       315,929  

Chubb Ltd.

    9,479       1,852,007  

Cincinnati Financial Corp.

    3,259       395,773  

Erie Indemnity Co., Class A, NVS

    548       112,784  

Everest Re Group Ltd.

    860       224,890  

Fidelity National Financial Inc.

    6,118       293,113  

Globe Life Inc.

    2,043       181,868  

Hartford Financial Services Group Inc. (The)

    7,542       550,038  

Lincoln National Corp.

    3,838       276,912  

Loews Corp.

    4,416       247,605  
Security   Shares     Value  
Insurance (continued)  

Markel Corp.(a)

    299     $ 392,626  

Marsh & McLennan Companies Inc.

    10,948       1,826,126  

MetLife Inc.

    15,822       993,622  

Old Republic International Corp.

    6,165       159,242  

Principal Financial Group Inc.

    5,422       363,762  

Progressive Corp. (The)

    12,614       1,196,816  

Prudential Financial Inc.

    8,403       924,750  

Reinsurance Group of America Inc.

    1,449       171,098  

RenaissanceRe Holdings Ltd.

    995       141,091  

Travelers Companies Inc. (The)

    5,409       870,200  

W R Berkley Corp.

    3,085       245,566  

Willis Towers Watson PLC

    2,802       678,869  
   

 

 

 
   

 

 

 

18,518,736

 

 

Interactive Media & Services — 6.2%  

Alphabet Inc., Class A(a)

    6,518       19,299,276  

Alphabet Inc., Class C, NVS(a)

    6,098       18,083,070  

Bumble Inc., Class A(a)(b)

    1,539       80,828  

IAC/InterActiveCorp.(a)

    1,788       272,438  

Match Group Inc.(a)

    6,013       906,640  

Meta Platforms Inc, Class A(a)

    51,594       16,694,271  

Pinterest Inc., Class A(a)

    11,984       534,966  

Snap Inc., Class A, NVS(a)

    22,638       1,190,306  

Twitter Inc.(a)

    17,334       928,062  
   

 

 

 
   

 

 

 

57,989,857

 

 

Internet & Direct Marketing Retail — 3.8%  

Amazon.com Inc.(a)

    9,426       31,788,525  

Chewy Inc., Class A(a)(b)

    1,815       137,577  

DoorDash Inc., Class A(a)

    3,329       648,489  

eBay Inc.

    14,069       1,079,374  

Etsy Inc.(a)

    2,721       682,127  

MercadoLibre Inc.(a)

    989       1,464,729  

Wayfair Inc., Class A(a)

    1,680       418,488  
   

 

 

 
   

 

 

 

36,219,309

 

 

IT Services — 5.0%  

Accenture PLC, Class A

    13,726               4,924,752  

Affirm Holdings Inc.(a)

    2,020       328,250  

Akamai Technologies Inc.(a)

    3,532       372,485  

Automatic Data Processing Inc.

    9,144       2,052,737  

Broadridge Financial Solutions Inc.

    2,515       448,701  

Cloudflare Inc., Class A(a)

    5,722       1,114,188  

Cognizant Technology Solutions Corp., Class A

    11,347       886,087  

Concentrix Corp.

    906       160,978  

DXC Technology Co.(a)

    5,541       180,470  

EPAM Systems Inc.(a)

    1,225       824,719  

Euronet Worldwide Inc.(a)

    1,148       128,794  

Fidelity National Information Services Inc.

    13,344       1,477,715  

Fiserv Inc.(a)

    12,864       1,266,975  

FleetCor Technologies Inc.(a)

    1,774       438,905  

Gartner Inc.(a)

    1,818       603,412  

Genpact Ltd.

    3,682       181,707  

Global Payments Inc.

    6,364       909,988  

GoDaddy Inc., Class A(a)

    3,634       251,364  

International Business Machines Corp.

    19,399       2,426,815  

Jack Henry & Associates Inc.

    1,612       268,366  

Mastercard Inc., Class A

    18,855       6,326,230  

MongoDB Inc.(a)(b)

    1,404       731,891  

Okta Inc.(a)

    2,716       671,341  

Paychex Inc.

    6,891       849,522  

PayPal Holdings Inc.(a)

    25,431       5,914,996  
 

 

 

94  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
IT Services (continued)  

Snowflake Inc., Class A(a)

    4,925     $ 1,742,662  

Square Inc., Class A(a)

    8,597       2,187,936  

Twilio Inc., Class A(a)

    3,625       1,056,180  

VeriSign Inc.(a)

    2,115       470,947  

Visa Inc., Class A

    36,527       7,735,323  

Western Union Co. (The)

    8,639       157,403  

WEX Inc.(a)

    975       145,958  
   

 

 

 
   

 

 

 

47,237,797

 

 

Leisure Products — 0.2%  

Brunswick Corp./DE

    1,693       157,601  

Hasbro Inc.

    2,813       269,373  

Mattel Inc.(a)

    7,585       165,429  

Peloton Interactive Inc., Class A(a)(b)

    5,843       534,284  

Polaris Inc.

    1,254       144,147  

YETI Holdings Inc.(a)

    1,899       186,729  
   

 

 

 
   

 

 

 

        1,457,563

 

 

Life Sciences Tools & Services — 1.5%  

10X Genomics Inc., Class A(a)

    1,968       317,379  

Agilent Technologies Inc.

    6,591       1,038,017  

Avantor Inc.(a)

    12,690       512,422  

Bio-Rad Laboratories Inc., Class A(a)

    461       366,348  

Bio-Techne Corp.

    837       438,295  

Bruker Corp.

    2,235       179,471  

Charles River Laboratories International Inc.(a)

    1,083       485,920  

Illumina Inc.(a)

    3,172       1,316,570  

IQVIA Holdings Inc.(a)

    4,135       1,080,972  

Mettler-Toledo International Inc.(a)

    502       743,402  

PerkinElmer Inc.

    2,416       427,366  

PPD Inc.(a)

    2,401       113,255  

Repligen Corp.(a)

    1,092       317,226  

Sotera Health Co.(a)

    2,152       53,154  

Syneos Health Inc.(a)

    2,199       205,255  

Thermo Fisher Scientific Inc.

    8,516       5,391,224  

Waters Corp.(a)

    1,316       483,696  

West Pharmaceutical Services Inc.

    1,602       688,668  
   

 

 

 
   

 

 

 

14,158,640

 

 

Machinery — 1.6%  

AGCO Corp.

    1,341       163,884  

Caterpillar Inc.

    11,845       2,416,499  

Cummins Inc.

    3,119       748,061  

Deere & Co.

    6,140       2,101,783  

Donaldson Co. Inc.

    2,746       164,788  

Dover Corp.

    3,115       526,684  

Fortive Corp.

    7,785       589,402  

Graco Inc.

    3,721       279,745  

IDEX Corp.

    1,644       365,905  

Illinois Tool Works Inc.

    6,185       1,409,376  

Ingersoll Rand Inc.(a)

    8,802       473,196  

ITT Inc.

    1,875       176,381  

Lincoln Electric Holdings Inc.

    1,298       184,835  

Middleby Corp. (The)(a)

    1,211       220,935  

Nordson Corp.

    1,157       294,121  

Oshkosh Corp.

    1,493       159,751  

Otis Worldwide Corp.

    9,271       744,554  

PACCAR Inc.

    7,549       676,541  

Parker-Hannifin Corp.

    2,804       831,638  

Pentair PLC

    3,539       261,780  

Snap-on Inc.

    1,156       234,934  

Stanley Black & Decker Inc.

    3,512       631,212  
Security   Shares     Value  
Machinery (continued)  

Toro Co. (The)

    2,320     $ 221,490  

Westinghouse Air Brake Technologies Corp.

    4,107       372,628  

Woodward Inc.

    1,381       155,984  

Xylem Inc./NY

    3,912       510,868  
   

 

 

 
   

 

 

 

14,916,975

 

 

Media — 1.1%  

Altice USA Inc., Class A(a)(b)

    5,007       81,614  

Cable One Inc.

    108       184,811  

Charter Communications Inc., Class A(a)

    2,743       1,851,223  

Comcast Corp., Class A

    99,134       5,098,462  

Discovery Inc., Class A(a)(b)

    3,592       84,196  

Discovery Inc., Class C, NVS(a)

    6,521       147,114  

DISH Network Corp., Class A(a)

    5,456       224,078  

Fox Corp., Class A, NVS

    6,871       273,054  

Fox Corp., Class B

    3,116       115,167  

Interpublic Group of Companies Inc. (The)

    8,614       315,014  

Liberty Broadband Corp., Class A(a)(b)

    529       85,047  

Liberty Broadband Corp., Class C, NVS(a)

    3,153       512,205  

Liberty Media Corp.-Liberty SiriusXM, Class A(a)(b)

    1,606       79,947  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    3,473       171,288  

New York Times Co. (The), Class A

    3,629       198,107  

News Corp., Class A, NVS

    8,624       197,490  

News Corp., Class B

    2,691       60,709  

Omnicom Group Inc.

    4,678       318,478  

Sirius XM Holdings Inc.(b)

    20,237       123,243  

ViacomCBS Inc., Class B, NVS

    13,028       471,874  
   

 

 

 
   

 

 

 

10,593,121

 

 

Metals & Mining — 0.4%  

Cleveland-Cliffs Inc.(a)

    9,994       240,955  

Freeport-McMoRan Inc.

    31,873       1,202,250  

Newmont Corp.

    17,360       937,440  

Nucor Corp.

    6,380       712,327  

Reliance Steel & Aluminum Co.

    1,338       195,562  

Royal Gold Inc.

    1,447       143,282  

Southern Copper Corp.

    1,905       114,281  

Steel Dynamics Inc.

    4,211       278,263  
   

 

 

 
   

 

 

 

        3,824,360

 

 

Mortgage Real Estate Investment — 0.1%  

AGNC Investment Corp.

    11,373       181,058  

Annaly Capital Management Inc.

    30,860       261,076  

Starwood Property Trust Inc.

    6,237       158,856  
   

 

 

 
   

 

 

 

600,990

 

 

Multi-Utilities — 0.6%  

Ameren Corp.

    5,521       465,365  

CenterPoint Energy Inc.

    12,619       328,599  

CMS Energy Corp.

    6,232       376,101  

Consolidated Edison Inc.

    7,678       578,921  

Dominion Energy Inc.

    17,531       1,331,129  

DTE Energy Co.

    4,209       477,090  

NiSource Inc.

    8,269       203,996  

Public Service Enterprise Group Inc.

    10,982       700,652  

Sempra Energy

    6,937       885,369  

WEC Energy Group Inc.

    6,857       617,542  
   

 

 

 
   

 

 

 

5,964,764

 

 

Multiline Retail — 0.5%  

Dollar General Corp.

    5,089       1,127,315  

Dollar Tree Inc.(a)

    5,046       543,757  

Kohl’s Corp.

    3,395       164,760  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  95


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Multiline Retail (continued)

 

Target Corp.

    10,708     $ 2,780,011  
   

 

 

 
   

 

 

 

4,615,843

 

 

Oil, Gas & Consumable Fuels — 2.5%            

APA Corp.

    8,221       215,472  

Cheniere Energy Inc.(a)

    5,123       529,718  

Chevron Corp.

    41,858       4,792,322  

ConocoPhillips

    28,944       2,156,039  

Continental Resources Inc./OK(b)

    1,145       55,888  

Coterra Energy Inc.

    17,580       374,806  

Devon Energy Corp.

    13,678       548,214  

Diamondback Energy Inc.

    3,697       396,281  

EOG Resources Inc.

    12,563       1,161,575  

Exxon Mobil Corp.

    91,630       5,907,386  

Hess Corp.

    5,949       491,209  

Kinder Morgan Inc.

    42,349       709,346  

Marathon Oil Corp.

    17,139       279,709  

Marathon Petroleum Corp.

    13,864       914,054  

Occidental Petroleum Corp.

    19,271       646,157  

ONEOK Inc.

    9,684       616,096  

Phillips 66

    9,520       711,906  

Pioneer Natural Resources Co.

    4,929       921,624  

Targa Resources Corp.

    4,973       271,874  

Texas Pacific Land Corp.

    136       173,219  

Valero Energy Corp.

    8,886       687,154  

Williams Companies Inc. (The)

    26,415       741,997  
   

 

 

 
   

 

 

 

23,302,046

 

 

Personal Products — 0.2%            

Coty Inc., Class A(a)

    7,268       61,633  

Estee Lauder Companies Inc. (The), Class A

    5,009       1,624,569  
   

 

 

 
   

 

 

 

1,686,202

 

 

Pharmaceuticals — 3.2%            

Bristol-Myers Squibb Co.

    48,094       2,808,690  

Catalent Inc.(a)

    3,699       509,944  

Elanco Animal Health Inc.(a)(b)

    10,132       333,140  

Eli Lilly & Co.

    17,185       4,378,051  

Jazz Pharmaceuticals PLC(a)

    1,338       178,007  

Johnson & Johnson

    56,978       9,280,577  

Merck & Co. Inc.

    54,788       4,824,083  

Pfizer Inc.

    121,350       5,307,849  

Royalty Pharma PLC, Class A

    7,698       304,302  

Viatris Inc.

    26,017       347,327  

Zoetis Inc.

    10,252       2,216,482  
   

 

 

 
   

 

 

 

30,488,452

 

 

Professional Services — 0.6%            

Booz Allen Hamilton Holding Corp.

    2,945       255,803  

Clarivate PLC(a)(b)

    8,082       189,523  

CoStar Group Inc.(a)

    8,590       739,169  

Dun & Bradstreet Holdings Inc.(a)

    3,040       57,274  

Equifax Inc.

    2,647       734,357  

IHS Markit Ltd.

    8,659       1,131,904  

Jacobs Engineering Group Inc.

    2,803       393,597  

Leidos Holdings Inc.

    3,074       307,339  

Nielsen Holdings PLC

    7,795       157,849  

Robert Half International Inc.

    2,456       277,700  

TransUnion

    4,155       479,030  

Verisk Analytics Inc.

    3,482       732,160  
   

 

 

 
   

 

 

 

5,455,705

 

 

Real Estate Management & Development — 0.2%  

CBRE Group Inc., Class A(a)

    7,300       759,784  
Security   Shares      Value  

Real Estate Management & Development (continued)

 

Jones Lang LaSalle Inc.(a)

    1,077      $ 278,114  

Opendoor Technologies Inc.(a)

    8,274        196,176  

Zillow Group Inc., Class A(a)

    824        87,113  

Zillow Group Inc., Class C, NVS(a)(b)

    3,676        380,944  
    

 

 

 
    

 

 

 

1,702,131

 

 

Road & Rail — 1.1%             

AMERCO

    212        156,242  

CSX Corp.

    48,674        1,760,539  

JB Hunt Transport Services Inc.

    1,797        354,350  

Kansas City Southern

    1,976        613,054  

Knight-Swift Transportation Holdings Inc.

    3,606        204,424  

Lyft Inc., Class A(a)

    6,312        289,531  

Norfolk Southern Corp.

    5,328        1,561,370  

Old Dominion Freight Line Inc.

    2,037        695,330  

TuSimple Holdings Inc., Class A(a)(b)

    725        28,362  

Uber Technologies Inc.(a)

    35,003        1,533,831  

Union Pacific Corp.

    14,114        3,407,120  

XPO Logistics Inc.(a)

    2,087        179,065  
    

 

 

 
    

 

 

 

10,783,218

 

 

Semiconductors & Semiconductor Equipment — 5.5%  

Advanced Micro Devices Inc.(a)

    26,252        3,156,278  

Analog Devices Inc.

    11,634        2,018,383  

Applied Materials Inc.

    19,782        2,703,210  

Broadcom Inc.

    8,879        4,720,698  

Brooks Automation Inc.

    1,613        187,834  

Enphase Energy Inc.(a)

    2,894        670,337  

Entegris Inc.(b)

    2,914        410,233  

First Solar Inc.(a)

    2,149        256,999  

Intel Corp.

    87,808        4,302,592  

KLA Corp.

    3,310        1,233,836  

Lam Research Corp.

    3,079        1,735,232  

Marvell Technology Inc.

    17,803        1,219,505  

Microchip Technology Inc.

    11,890        880,930  

Micron Technology Inc.

    24,366        1,683,691  

MKS Instruments Inc.

    1,205        180,810  

Monolithic Power Systems Inc.

    932        489,729  

NVIDIA Corp.

    53,936        13,789,817  

NXP Semiconductors NV

    5,759        1,156,753  

ON Semiconductor Corp.(a)

    9,335        448,733  

Qorvo Inc.(a)

    2,399        403,584  

QUALCOMM Inc.

    24,414        3,248,038  

Skyworks Solutions Inc.

    3,593        600,498  

SolarEdge Technologies Inc.(a)

    1,113        394,759  

Teradyne Inc.

    3,538        489,093  

Texas Instruments Inc.

    19,981        3,746,038  

Universal Display Corp

    951        174,223  

Wolfspeed Inc.(a)(b)

    2,465        296,071  

Xilinx Inc.

    5,349        962,820  
    

 

 

 
    

 

 

 

51,560,724

 

 

Software — 10.7%             

Adobe Inc.(a)

    10,310        6,705,212  

Anaplan Inc.(a)

    3,127        203,912  

ANSYS Inc.(a)

    1,893        718,545  

AppLovin Corp., Class A(a)

    565        55,511  

Aspen Technology Inc.(a)

    1,499        234,878  

Autodesk Inc.(a)

    4,748        1,508,012  

Avalara Inc.(a)

    1,885        338,621  

Bill.com Holdings Inc.(a)

    1,917        564,192  

Black Knight Inc.(a)

    3,332        233,606  
 

 

 

96  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)            

Cadence Design Systems Inc.(a)

    6,012     $ 1,040,737  

Ceridian HCM Holding Inc.(a)

    2,888       361,722  

Citrix Systems Inc.

    2,722       257,855  

Coupa Software Inc.(a)

    1,595       363,181  

Crowdstrike Holdings Inc., Class A(a)

    4,328       1,219,630  

Datadog Inc., Class A(a)

    5,208       869,996  

DocuSign Inc.(a)

    4,225       1,175,775  

Dropbox Inc., Class A(a)

    6,136       187,087  

Dynatrace Inc.(a)

    4,261       319,575  

Elastic NV(a)

    1,551       269,114  

Fair Isaac Corp.(a)

    605       240,911  

Five9 Inc.(a)

    1,483       234,329  

Fortinet Inc.(a)

    2,949       991,867  

Guidewire Software Inc.(a)

    1,778       223,548  

HubSpot Inc.(a)

    968       784,303  

Intuit Inc.

    5,915       3,702,731  

Manhattan Associates Inc.(a)

    1,382       250,888  

Microsoft Corp.

    162,650       53,937,993  

NortonLifeLock Inc.

    12,522       318,685  

Nuance Communications Inc.(a)

    6,121       336,961  

Oracle Corp.

    35,653       3,420,549  

Palantir Technologies Inc., Class A(a)

    34,051       881,240  

Palo Alto Networks Inc.(a)

    2,101       1,069,598  

Paycom Software Inc.(a)

    1,043       571,408  

Paylocity Holding Corp.(a)

    840       256,318  

Pegasystems Inc.

    875       103,880  

PTC Inc.(a)

    2,275       289,721  

RingCentral Inc., Class A(a)

    1,745       425,396  

salesforce.com Inc.(a)

    21,027       6,301,582  

ServiceNow Inc.(a)

    4,287       2,991,297  

Smartsheet Inc., Class A(a)

    2,719       187,638  

Splunk Inc.(a)

    3,533       582,309  

SS&C Technologies Holdings Inc.

    4,826       383,522  

Synopsys Inc.(a)

    3,315       1,104,492  

Trade Desk Inc. (The), Class A(a)(b)

    9,436       706,851  

Tyler Technologies Inc.(a)

    883       479,663  

VMware Inc., Class A(a)

    1,744       264,565  

Workday Inc., Class A(a)

    4,106       1,190,658  

Zendesk Inc.(a)

    2,597       264,375  

Zoom Video Communications Inc., Class A(a)

    4,663       1,280,693  

Zscaler Inc.(a)

    1,696       540,787  
   

 

 

 
   

 

 

 

100,945,919

 

 

Specialty Retail — 2.3%            

Advance Auto Parts Inc.

    1,415       319,111  

AutoNation Inc.(a)

    949       114,943  

AutoZone Inc.(a)

    467       833,520  

Bath & Body Works Inc.

    5,659       390,980  

Best Buy Co. Inc.

    4,845       592,253  

Burlington Stores Inc.(a)

    1,442       398,410  

CarMax Inc.(a)(b)

    3,549       485,929  

Carvana Co.(a)(b)

    1,836       556,638  

Five Below Inc.(a)

    1,202       237,155  

Floor & Decor Holdings Inc., Class A(a)

    2,302       312,888  

GameStop Corp., Class A(a)(b)

    1,350       247,738  

Gap Inc. (The)

    4,532       102,831  

Home Depot Inc. (The)

    23,014       8,555,224  

Lithia Motors Inc.

    649       207,174  

Lowe’s Companies Inc.

    15,299       3,577,212  

O’Reilly Automotive Inc.(a)

    1,498       932,235  

RH(a)

    368       242,744  
Security   Shares     Value  
Specialty Retail (continued)            

Ross Stores Inc.

    7,753     $ 877,640  

TJX Companies Inc. (The)

    26,079       1,707,914  

Tractor Supply Co.

    2,463       534,890  

Ulta Beauty Inc.(a)

    1,191       437,526  

Williams-Sonoma Inc.

    1,631       302,926  
   

 

 

 
   

 

 

 

21,967,881

 

 

Technology Hardware, Storage & Peripherals — 5.7%  

Apple Inc.

    339,885       50,914,773  

Dell Technologies Inc., Class C(a)

    6,030       663,240  

Hewlett Packard Enterprise Co.

    28,396       416,001  

HP Inc.

    26,121       792,250  

NetApp Inc.

    4,838       432,033  

Seagate Technology Holdings PLC

    4,548       405,090  

Western Digital Corp.(a)

    6,664       348,461  
   

 

 

 
   

 

 

 

53,971,848

 

 

Textiles, Apparel & Luxury Goods — 0.8%            

Capri Holdings Ltd.(a)

    3,293       175,319  

Deckers Outdoor Corp.(a)

    599       236,791  

Lululemon Athletica Inc.(a)

    2,552       1,189,258  

Nike Inc., Class B

    27,663       4,627,743  

PVH Corp.(a)

    1,552       169,680  

Tapestry Inc.

    6,063       236,336  

Under Armour Inc., Class A(a)

    4,103       90,102  

Under Armour Inc., Class C, NVS(a)

    4,271       80,636  

VF Corp.

    6,993       509,650  
   

 

 

 
   

 

 

 

7,315,515

 

 

Tobacco — 0.5%            

Altria Group Inc.

    39,874       1,758,842  

Philip Morris International Inc.

    33,733       3,189,118  
   

 

 

 
   

 

 

 

4,947,960

 

 

Trading Companies & Distributors — 0.2%            

Fastenal Co.

    12,489       712,872  

SiteOne Landscape Supply Inc.(a)(b)

    968       227,441  

United Rentals Inc.(a)

    1,577       597,857  

Watsco Inc.

    696       201,548  

WW Grainger Inc.

    954       441,807  
   

 

 

 
   

 

 

 

2,181,525

 

 

Water Utilities — 0.1%            

American Water Works Co. Inc.

    3,942       686,618  

Essential Utilities Inc.

    4,735       222,876  
   

 

 

 
   

 

 

 

909,494

 

 

Wireless Telecommunication Services — 0.2%            

T-Mobile U.S. Inc.(a)

    12,660       1,456,280  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $749,175,265)

      938,628,785  
   

 

 

 
Short-Term Investments            
Money Market Funds — 1.3%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    10,332,635       10,337,801  

 

 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  97


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Money Market Funds (continued)  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    1,673,000     $ 1,673,000  
   

 

 

 
   

 

 

 

12,010,801

 

 

   

 

 

 

Total Short-Term Investments — 1.3%
(Cost: $12,010,801)

      12,010,801  
   

 

 

 

Total Investments in Securities — 101.0%
(Cost: $761,186,066)

      950,639,586  

Other Assets, Less Liabilities — (1.0)%

   

 

 

 

(9,548,523

 

   

 

 

 
Net Assets — 100.0%        

 

$941,091,063

 
   

 

 

 
(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 17,348,833      $      $ (7,011,356 )(a)     $ (619    $ 943      $ 10,337,801        10,332,635      $ 13,840 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     1,623,000        50,000 (a)                            1,673,000        1,673,000        57         

BlackRock Inc.

     2,693,039        15,765        (177,397      86,063        306,313        2,923,783        3,099        26,304         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
           

 

$

 

85,444

 

 

  

 

$

 

307,256

 

 

  

 

$

 

14,934,584

 

 

     

 

$

 

40,201

 

 

  

 

$

 

 

 

           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

S&P 500 E-Mini Index

     10        12/17/21      $ 2,299      $ 80,150  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 80,150  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

 

 

 

98  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar U.S. Equity ETF

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 223,717  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 10,885  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

Futures contracts:

        

Average notional value of contracts — long

   $ 2,120,325  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
    

 

Level 1

 

      

 

Level 2

 

      

 

Level 3

 

      

 

Total

 

 

 

 

Investments

                 

Assets

                 

Common Stocks

   $ 938,628,785        $        $        $ 938,628,785  

Money Market Funds

     12,010,801                            12,010,801  
  

 

 

      

 

 

      

 

 

      

 

 

 
  

 

$

 

950,639,586

 

 

    

 

$

 

 

 

    

 

$

 

 

 

    

 

$

 

950,639,586

 

 

  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 80,150        $        $        $ 80,150  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  99


Schedule of Investments (unaudited)

October 31, 2021

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 2.4%            

Boeing Co. (The)(a)

    20,995     $ 4,346,595  

General Dynamics Corp.

    8,823       1,788,863  

Howmet Aerospace Inc.

    4,294       127,489  

Huntington Ingalls Industries Inc.

    786       159,346  

L3Harris Technologies Inc.

    7,641       1,761,556  

Lockheed Martin Corp.

    9,396       3,122,479  

Northrop Grumman Corp.

    5,744       2,051,871  

Raytheon Technologies Corp.

    57,456       5,105,540  

Textron Inc.

    4,602       339,858  

TransDigm Group Inc.(a)

    674       420,455  
   

 

 

 
   

 

 

 

19,224,052

 

 

Air Freight & Logistics — 0.9%            

CH Robinson Worldwide Inc.

    3,086       299,311  

Expeditors International of Washington Inc.

    2,184       269,200  

FedEx Corp.

    9,387       2,210,920  

United Parcel Service Inc., Class B

    19,929       4,254,244  
   

 

 

 
   

 

 

 

7,033,675

 

 

Airlines — 0.4%            

Alaska Air Group Inc.(a)

    4,727       249,586  

American Airlines Group Inc.(a)

    24,765       475,488  

Delta Air Lines Inc.(a)

    24,291       950,507  

Southwest Airlines Co.(a)

    22,626       1,069,757  

United Airlines Holdings Inc.(a)

    12,289       567,014  
   

 

 

 
   

 

 

 

3,312,352

 

 

Auto Components — 0.3%            

Aptiv PLC(a)

    6,080       1,051,171  

Autoliv Inc.

    2,995       290,066  

BorgWarner Inc.

    9,113       410,723  

Gentex Corp.

    5,253       185,904  

Lear Corp.

    2,285       392,677  
   

 

 

 
   

 

 

 

2,330,541

 

 

Automobiles — 0.7%            

Ford Motor Co.(a)

    149,715       2,557,132  

General Motors Co.(a)

    55,348       3,012,592  

Harley-Davidson Inc.

    5,839       213,065  

Thor Industries Inc.

    998       101,756  
   

 

 

 
   

 

 

 

5,884,545

 

 

Banks — 7.9%            

Bank of America Corp.

    282,166       13,481,891  

Citigroup Inc.

    77,229       5,341,158  

Citizens Financial Group Inc.

    16,180       766,608  

Comerica Inc.

    5,123       435,916  

Commerce Bancshares Inc.

    2,154       151,879  

Cullen/Frost Bankers Inc.

    2,147       278,037  

East West Bancorp. Inc.

    5,390       428,397  

Fifth Third Bancorp.

    26,408       1,149,540  

First Horizon Corp.

    20,980       356,031  

Huntington Bancshares Inc./OH

    33,365       525,165  

JPMorgan Chase & Co.

    113,861       19,343,845  

KeyCorp.

    36,546       850,425  

M&T Bank Corp.

    4,890       719,417  

People’s United Financial Inc.

    16,243       278,405  

PNC Financial Services Group Inc. (The)

    9,383       1,980,094  

Regions Financial Corp

    19,482       461,334  

Signature Bank/New York NY

    1,345       400,568  

SVB Financial Group(a)

    715       512,941  

Truist Financial Corp.

    50,883       3,229,544  
Security   Shares      Value  
Banks (continued)             

U.S. Bancorp.

    51,435      $ 3,105,131  

Wells Fargo & Co.

    156,471        8,005,056  

Western Alliance Bancorp.

    1,795        208,382  

Zions Bancorp. NA

    6,218        391,672  
    

 

 

 
    

 

 

 

62,401,436

 

 

Beverages — 2.5%             

Brown-Forman Corp., Class A

    896        57,371  

Brown-Forman Corp., Class B, NVS

    2,921        198,307  

Coca-Cola Co. (The)

    148,033        8,344,620  

Constellation Brands Inc., Class A

    6,398        1,387,150  

Keurig Dr Pepper Inc.

    28,203        1,017,846  

Molson Coors Beverage Co., Class B

    7,151        315,288  

PepsiCo Inc.

    52,664        8,510,502  
    

 

 

 
    

 

 

 

19,831,084

 

 

Biotechnology — 2.6%             

AbbVie Inc.

    67,337        7,721,534  

Amgen Inc.

    21,638        4,478,417  

Biogen Inc.(a)

    5,667        1,511,275  

Bridgebio Pharma Inc.(a)(b)

    2,231        110,167  

CRISPR Therapeutics AG(a)(b)

    1,407        128,501  

Gilead Sciences Inc.

    47,795        3,100,940  

Novavax Inc.(a)

    1,755        261,197  

Regeneron Pharmaceuticals Inc.(a)

    4,011        2,566,799  

United Therapeutics Corp.(a)

    1,712        326,581  
    

 

 

 
    

 

 

 

20,205,411

 

 

Building Products — 0.9%             

A O Smith Corp.

    2,333        170,472  

Allegion PLC

    1,581        202,842  

Builders FirstSource Inc.(a)

    3,119        181,744  

Carlisle Companies Inc.

    946        210,883  

Carrier Global Corp.

    32,995        1,723,329  

Fortune Brands Home & Security Inc.

    2,748        278,647  

Johnson Controls International PLC

    27,083        1,987,080  

Lennox International Inc.

    400        119,712  

Masco Corp.

    5,395        353,642  

Owens Corning

    3,894        363,739  

Trane Technologies PLC

    6,043        1,093,360  
    

 

 

 
    

 

 

 

6,685,450

 

 

Capital Markets — 4.6%             

Ameriprise Financial Inc.

    4,322        1,305,806  

Apollo Global Management Inc.

    3,108        239,161  

Bank of New York Mellon Corp. (The)

    30,197        1,787,662  

BlackRock Inc.(c)

    5,451        5,142,800  

Blackstone Inc., NVS

    13,165        1,822,299  

Carlyle Group Inc. (The)

    1,562        87,706  

Charles Schwab Corp. (The)

    36,562        2,999,181  

CME Group Inc.

    13,693        3,019,991  

Franklin Resources Inc.

    10,771        339,179  

Goldman Sachs Group Inc. (The)

    12,845        5,309,481  

Intercontinental Exchange Inc.

    14,484        2,005,455  

Invesco Ltd.

    13,060        331,855  

Jefferies Financial Group Inc.

    7,596        326,628  

Morgan Stanley

    55,619        5,716,521  

Nasdaq Inc.

    1,838        385,741  

Northern Trust Corp.

    7,971        980,752  

Raymond James Financial Inc.

    3,715        366,262  

S&P Global Inc.

    3,165        1,500,716  

SEI Investments Co.

    2,154        135,788  

State Street Corp.

    13,982        1,377,926  
 

 

 

100  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Capital Markets (continued)  

T Rowe Price Group Inc.

    5,553     $ 1,204,335  
   

 

 

 
      36,385,245  
Chemicals — 2.4%  

Air Products & Chemicals Inc.

    5,938       1,780,272  

Albemarle Corp.

    1,277       319,850  

Axalta Coating Systems Ltd.(a)

    5,377       167,709  

Celanese Corp.

    2,039       329,319  

CF Industries Holdings Inc.

    8,152       463,034  

Corteva Inc.

    14,970       645,955  

Dow Inc.

    28,359       1,587,253  

DuPont de Nemours Inc.

    19,890       1,384,344  

Eastman Chemical Co.

    5,185       539,395  

Ecolab Inc.

    5,079       1,128,655  

FMC Corp.

    2,926       266,295  

International Flavors & Fragrances Inc.

    9,469       1,396,204  

Linde PLC

    12,725       4,061,820  

LyondellBasell Industries NV, Class A

    10,108       938,225  

Mosaic Co. (The)

    13,130       545,814  

PPG Industries Inc.

    6,772       1,087,380  

RPM International Inc.

    1,969       171,697  

Scotts Miracle-Gro Co. (The)

    436       64,729  

Sherwin-Williams Co. (The)

    4,958       1,569,752  

Westlake Chemical Corp.

    1,267       123,330  
   

 

 

 
      18,571,032  
Commercial Services & Supplies — 0.4%  

Cintas Corp.

    1,679       727,175  

Republic Services Inc.

    5,396       726,301  

Waste Management Inc.

    10,665       1,708,853  
   

 

 

 
      3,162,329  
Communications Equipment — 1.4%  

Ciena Corp.(a)

    3,489       189,418  

Cisco Systems Inc.

    160,579       8,987,607  

F5 Networks Inc.(a)

    1,184       250,001  

Juniper Networks Inc.

    12,463       367,908  

Motorola Solutions Inc.

    4,170       1,036,620  
   

 

 

 
      10,831,554  
Construction & Engineering — 0.1%  

AECOM(a)

    3,424       234,099  

MasTec Inc.(a)

    1,093       97,419  

Quanta Services Inc.

    3,261       395,494  
   

 

 

 
      727,012  
Construction Materials — 0.0%  

Martin Marietta Materials Inc.

    884       347,271  
   

 

 

 
Consumer Finance — 0.8%  

Ally Financial Inc.

    13,647       651,508  

American Express Co.

    11,085       1,926,351  

Capital One Financial Corp.

    9,994       1,509,394  

Discover Financial Services

    11,388       1,290,488  

OneMain Holdings Inc.

    4,207       222,171  

Synchrony Financial

    21,635       1,004,946  
   

 

 

 
              6,604,858  
Containers & Packaging — 0.5%  

Amcor PLC

    58,679       708,255  

AptarGroup Inc.

    1,211       146,265  

Avery Dennison Corp.

    1,194       259,958  

Ball Corp.

    3,520       322,010  

Berry Global Group Inc.(a)

    5,126       335,958  

Crown Holdings Inc.

    2,810       292,212  
Security   Shares     Value  
Containers & Packaging (continued)  

International Paper Co.

    14,862     $ 738,195  

Packaging Corp. of America

    3,604       495,081  

Sealed Air Corp.

    5,779       342,810  

Westrock Co.

    10,107       486,147  
   

 

 

 
              4,126,891  
Distributors — 0.1%  

Genuine Parts Co.

    5,482       718,745  

LKQ Corp.(a)

    5,389       296,826  
   

 

 

 
      1,015,571  
Diversified Consumer Services — 0.1%  

Bright Horizons Family Solutions Inc.(a)

    1,086       180,276  

Service Corp. International

    3,151       215,812  
   

 

 

 
      396,088  
Diversified Financial Services — 1.4%  

Berkshire Hathaway Inc., Class B(a)

    35,316       10,136,045  

Equitable Holdings Inc.

    14,547       487,325  

Voya Financial Inc.

    2,248       156,843  
   

 

 

 
      10,780,213  
Diversified Telecommunication Services — 2.0%  

AT&T Inc.

    272,064       6,872,337  

Lumen Technologies Inc.

    37,791       448,201  

Verizon Communications Inc.

    157,756       8,359,490  
   

 

 

 
      15,680,028  
Electric Utilities — 3.0%  

Alliant Energy Corp.

    9,497       537,245  

American Electric Power Co. Inc.

    19,023       1,611,438  

Avangrid Inc.

    2,645       139,392  

Duke Energy Corp.

    29,331       2,992,055  

Edison International

    14,423       907,639  

Entergy Corp.

    7,626       785,631  

Evergy Inc.

    8,709       555,199  

Eversource Energy

    13,143       1,115,841  

Exelon Corp.

    37,334       1,985,796  

FirstEnergy Corp.

    20,658       795,953  

NextEra Energy Inc.

    74,751       6,378,503  

NRG Energy Inc.

    6,643       264,989  

OGE Energy Corp.

    7,731       263,395  

PG&E Corp.(a)

    57,712       669,459  

Pinnacle West Capital Corp.

    4,281       276,082  

PPL Corp.

    29,235       841,968  

Southern Co. (The)

    40,388       2,516,980  

Xcel Energy Inc.

    20,553       1,327,518  
   

 

 

 
      23,965,083  
Electrical Equipment — 0.8%  

AMETEK Inc.

    4,173       552,505  

Eaton Corp. PLC

    15,206       2,505,341  

Emerson Electric Co.

    22,814       2,213,186  

Hubbell Inc.

    1,422       283,504  

Rockwell Automation Inc.

    1,715       547,771  

Sensata Technologies Holding PLC(a)

    6,011       331,206  

Sunrun Inc.(a)(b)

    2,813       162,254  
   

 

 

 
      6,595,767  
Electronic Equipment, Instruments & Components — 0.6%  

Amphenol Corp., Class A

    13,235       1,016,051  

Arrow Electronics Inc.(a)

    2,747       317,965  

CDW Corp./DE

    2,050       382,633  

Corning Inc.

    11,969       425,737  

Flex Ltd.(a)

    18,565       313,749  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  101


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Jabil Inc.

    3,797     $ 227,668  

Keysight Technologies Inc.(a)

    2,014       362,560  

TE Connectivity Ltd.

    9,536       1,392,256  
   

 

 

 
              4,438,619  
Energy Equipment & Services — 0.4%  

Baker Hughes Co.

    31,681       794,560  

Halliburton Co.

    19,888       497,001  

Schlumberger NV

    53,177       1,715,490  
   

 

 

 
      3,007,051  
Entertainment — 1.0%  

Activision Blizzard Inc.

    14,092       1,101,853  

Electronic Arts Inc.

    5,909       828,737  

Liberty Media Corp.-Liberty Formula One, Class A(a)

    899       46,883  

Liberty Media Corp.-Liberty Formula One, Class C, NVS(a)

    7,734       431,557  

Live Nation Entertainment Inc.(a)

    2,361       238,815  

Playtika Holding Corp.(a)

    1,950       55,146  

Walt Disney Co. (The)(a)

    30,294       5,121,807  
   

 

 

 
      7,824,798  
Equity Real Estate Investment Trusts (REITs) — 3.2%  

Alexandria Real Estate Equities Inc.

    1,908       389,499  

American Tower Corp.

    6,277       1,769,926  

Americold Realty Trust

    5,494       161,908  

AvalonBay Communities Inc.

    2,640       624,835  

Boston Properties Inc.

    5,398       613,429  

Camden Property Trust

    2,527       412,154  

CubeSmart

    4,516       248,425  

Digital Realty Trust Inc.

    6,775       1,069,163  

Duke Realty Corp.

    5,549       312,076  

Equity LifeStyle Properties Inc.

    3,069       259,361  

Equity Residential

    12,958       1,119,571  

Essex Property Trust Inc.

    1,648       560,205  

Extra Space Storage Inc.

    2,601       513,359  

Federal Realty Investment Trust

    2,649       318,807  

Gaming and Leisure Properties Inc.

    8,514       412,844  

Healthpeak Properties Inc.

    13,094       464,968  

Host Hotels & Resorts Inc.(a)

    27,310       459,627  

Iron Mountain Inc.

    10,974       500,853  

Kilroy Realty Corp.

    2,163       145,743  

Kimco Realty Corp.

    23,467       530,354  

Lamar Advertising Co., Class A

    3,293       372,768  

Medical Properties Trust Inc.

    22,786       486,025  

Mid-America Apartment Communities Inc.

    2,545       519,714  

National Retail Properties Inc.

    6,666       302,370  

Omega Healthcare Investors Inc.

    9,179       269,495  

Prologis Inc.

    15,830       2,294,717  

Public Storage

    5,822       1,933,952  

Realty Income Corp.

    7,960       568,583  

Regency Centers Corp.

    5,848       411,758  

Simon Property Group Inc.

    12,534       1,837,234  

STORE Capital Corp.

    6,247       214,460  

UDR Inc.

    5,721       317,687  

Ventas Inc.

    15,058       803,645  

VEREIT Inc.

    8,704       437,811  

VICI Properties Inc.

    15,755       462,409  

Vornado Realty Trust

    5,983       255,055  

Welltower Inc.

    16,069       1,291,948  

Weyerhaeuser Co.

    28,476       1,017,163  

WP Carey Inc.

    7,048       543,471  
   

 

 

 
      25,227,372  
Security   Shares     Value  
Food & Staples Retailing — 2.2%  

Casey’s General Stores Inc.

    676     $ 129,481  

Costco Wholesale Corp.

    9,394       4,617,527  

Kroger Co. (The)

    26,020       1,041,320  

Performance Food Group Co.(a)

    3,598       162,738  

Sysco Corp.

    19,538       1,502,472  

U.S. Foods Holding Corp.(a)

    8,431       292,303  

Walgreens Boots Alliance Inc.

    27,426       1,289,570  

Walmart Inc.

    54,454               8,136,517  
   

 

 

 
      17,171,928  
Food Products — 1.5%  

Archer-Daniels-Midland Co.

    21,346       1,371,267  

Bunge Ltd.

    5,374       497,847  

Campbell Soup Co.

    7,755       309,812  

Conagra Brands Inc.

    18,353       590,967  

General Mills Inc.

    23,054       1,424,737  

Hershey Co. (The)

    2,437       427,328  

Hormel Foods Corp.

    7,309       309,317  

JM Smucker Co. (The)

    4,103       504,095  

Kellogg Co.

    9,779       599,453  

Kraft Heinz Co. (The)

    25,744       923,952  

Lamb Weston Holdings Inc.

    3,050       172,172  

McCormick & Co. Inc./MD, NVS

    4,842       388,474  

Mondelez International Inc., Class A

    53,284       3,236,470  

Tyson Foods Inc., Class A

    11,205       896,064  
   

 

 

 
      11,651,955  
Gas Utilities — 0.1%  

Atmos Energy Corp.

    4,963       457,192  

UGI Corp.

    7,967       345,847  
   

 

 

 
      803,039  
Health Care Equipment & Supplies — 2.5%  

Abbott Laboratories

    27,835       3,587,653  

Baxter International Inc.

    14,957       1,181,005  

Becton Dickinson and Co.

    10,953       2,624,229  

Boston Scientific Corp.(a)

    36,729       1,584,122  

DENTSPLY SIRONA Inc.

    3,233       184,960  

Hill-Rom Holdings Inc.

    2,503       387,715  

Hologic Inc.(a)

    4,334       317,726  

Medtronic PLC

    51,208       6,137,791  

Stryker Corp.

    8,278       2,202,527  

Zimmer Biomet Holdings Inc.

    7,968       1,140,380  
   

 

 

 
      19,348,108  
Health Care Providers & Services — 4.3%  

AmerisourceBergen Corp.

    5,726       698,686  

Anthem Inc.

    9,290       4,042,358  

Cardinal Health Inc.

    11,023       527,010  

Centene Corp.(a)

    22,235       1,584,021  

Chemed Corp.

    225       108,506  

Cigna Corp.

    12,970       2,770,522  

CVS Health Corp.

    50,281       4,489,088  

DaVita Inc.(a)

    1,570       162,087  

Encompass Health Corp.

    1,723       109,514  

HCA Healthcare Inc.

    9,406       2,355,827  

Henry Schein Inc.(a)

    5,347       408,243  

Humana Inc.

    3,528       1,634,028  

Laboratory Corp. of America Holdings(a)

    3,677       1,055,372  

McKesson Corp.

    5,878       1,221,919  

Molina Healthcare Inc.(a)

    1,452       429,385  

Quest Diagnostics Inc.

    4,678       686,637  

UnitedHealth Group Inc.

    23,848       10,981,289  
 

 

 

102  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Providers & Services (continued)  

Universal Health Services Inc., Class B

    2,902     $ 360,138  
   

 

 

 
      33,624,630  
Health Care Technology — 0.1%  

Cerner Corp.

    5,151       382,668  
   

 

 

 
Hotels, Restaurants & Leisure — 1.9%  

Aramark

    9,682       353,199  

Boyd Gaming Corp.(a)

    1,442       91,971  

Caesars Entertainment Inc.(a)

    2,764       302,547  

Carnival Corp.(a)

    30,338       672,290  

Darden Restaurants Inc.

    2,698       388,890  

Expedia Group Inc.(a)

    3,339       548,965  

Hilton Worldwide Holdings Inc.(a)

    6,249       899,544  

Las Vegas Sands Corp.(a)

    13,150       510,351  

McDonald’s Corp.

    28,456       6,987,371  

Norwegian Cruise Line Holdings Ltd.(a)(b)

    14,055       361,495  

Royal Caribbean Cruises Ltd.(a)

    8,578       724,241  

Starbucks Corp.

    22,557       2,392,621  

Wynn Resorts Ltd.(a)

    3,998       359,020  

Yum! Brands Inc.

    4,095       511,629  
   

 

 

 
      15,104,134  
Household Durables — 0.5%  

DR Horton Inc.

    5,585       498,573  

Garmin Ltd.

    2,705       388,438  

Lennar Corp., Class A

    10,428       1,042,070  

Lennar Corp., Class B

    581       47,688  

Mohawk Industries Inc.(a)

    2,139       379,052  

Newell Brands Inc.

    14,377       329,090  

NVR Inc.(a)

    54       264,319  

PulteGroup Inc.

    9,869       474,502  

Toll Brothers Inc.

    4,436       266,914  

Whirlpool Corp.

    2,377       501,143  
   

 

 

 
              4,191,789  
Household Products — 2.3%  

Church & Dwight Co. Inc.

    3,972       346,994  

Clorox Co. (The)

    3,099       505,168  

Colgate-Palmolive Co.

    32,076       2,443,870  

Kimberly-Clark Corp.

    12,806       1,658,249  

Procter & Gamble Co. (The)

    92,495       13,225,860  
   

 

 

 
      18,180,141  
Independent Power and Renewable Electricity Producers — 0.1%  

AES Corp. (The)

    25,313       636,115  

Vistra Corp.

    7,025       137,620  
   

 

 

 
      773,735  
Industrial Conglomerates — 1.9%  

3M Co.

    22,049       3,939,715  

General Electric Co.

    41,826       4,386,293  

Honeywell International Inc.

    26,307       5,751,236  

Roper Technologies Inc.

    2,012       981,595  
   

 

 

 
      15,058,839  
Insurance — 3.5%  

Aflac Inc.

    23,458       1,258,991  

Alleghany Corp.(a)

    527       343,277  

Allstate Corp. (The)

    11,244       1,390,545  

American Financial Group Inc./OH

    1,341       182,430  

American International Group Inc.

    32,460       1,918,061  

Aon PLC, Class A

    4,813       1,539,775  

Arch Capital Group Ltd.(a)

    7,511       314,110  

Arthur J Gallagher & Co.

    2,820       472,829  
Security   Shares     Value  
Insurance (continued)  

Assurant Inc.

    2,250     $ 362,948  

Athene Holding Ltd., Class A(a)

    3,270       284,523  

Chubb Ltd.

    16,725       3,267,730  

Cincinnati Financial Corp.

    3,305       401,359  

Everest Re Group Ltd.

    801       209,462  

Fidelity National Financial Inc.

    10,849       519,776  

Globe Life Inc.

    3,601       320,561  

Hartford Financial Services Group Inc. (The)

    13,279       968,437  

Lincoln National Corp.

    6,704       483,694  

Loews Corp.

    4,756       266,669  

Markel Corp.(a)

    522       685,454  

Marsh & McLennan Companies Inc.

    19,312       3,221,242  

MetLife Inc.

    27,819       1,747,033  

Old Republic International Corp.

    10,768       278,137  

Principal Financial Group Inc.

    9,490       636,684  

Progressive Corp. (The)

    22,335       2,119,145  

Prudential Financial Inc.

    14,709       1,618,725  

Reinsurance Group of America Inc.

    2,589       305,709  

RenaissanceRe Holdings Ltd.

    926       131,307  

Travelers Companies Inc. (The)

    9,487       1,526,269  

W R Berkley Corp.

    2,977       236,969  

Willis Towers Watson PLC

    2,895       701,401  
   

 

 

 
      27,713,252  
Interactive Media & Services — 0.2%  

IAC/InterActiveCorp.(a)

    2,121       323,177  

Twitter Inc.(a)

    16,362       876,021  
   

 

 

 
              1,199,198  
Internet & Direct Marketing Retail — 0.2%  

eBay Inc.

    14,006       1,074,540  

Wayfair Inc., Class A(a)(b)

    1,167       290,700  
   

 

 

 
      1,365,240  
IT Services — 2.3%  

Accenture PLC, Class A

    12,487       4,480,211  

Akamai Technologies Inc.(a)

    2,445       257,850  

Automatic Data Processing Inc.

    9,889       2,219,982  

Cognizant Technology Solutions Corp., Class A

    19,987       1,560,785  

Concentrix Corp.

    786       139,656  

DXC Technology Co.(a)

    9,677       315,180  

Fidelity National Information Services Inc.

    14,593       1,616,029  

Fiserv Inc.(a)

    14,059       1,384,671  

Genpact Ltd.

    3,760       185,556  

Global Payments Inc.

    5,000       714,950  

International Business Machines Corp.

    34,154       4,272,665  

Paychex Inc.

    6,262       771,979  

Western Union Co. (The)

    15,579       283,849  

WEX Inc.(a)

    755       113,024  
   

 

 

 
      18,316,387  
Leisure Products — 0.1%  

Brunswick Corp./DE

    1,064       99,048  

Hasbro Inc.

    1,909       182,806  

Mattel Inc.(a)

    6,817       148,679  

Polaris Inc.

    1,047       120,352  
   

 

 

 
      550,885  
Life Sciences Tools & Services — 1.1%  

Agilent Technologies Inc.

    3,743       589,485  

IQVIA Holdings Inc.(a)

    3,193       834,714  

PerkinElmer Inc.

    3,029       535,800  

Syneos Health Inc.(a)

    2,509       234,190  

Thermo Fisher Scientific Inc.

    9,706       6,144,577  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  103


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Life Sciences Tools & Services (continued)  

Waters Corp.(a)

    759     $ 278,971  
   

 

 

 
              8,617,737  
Machinery — 1.8%  

AGCO Corp.

    892       109,011  

Caterpillar Inc.

    12,083       2,465,053  

Cummins Inc.

    5,459       1,309,287  

Deere & Co.

    3,812       1,304,886  

Donaldson Co. Inc.

    2,453       147,205  

Dover Corp.

    3,100       524,148  

Fortive Corp.

    6,509       492,796  

Illinois Tool Works Inc.

    10,935       2,491,759  

Ingersoll Rand Inc.(a)

    7,915       425,510  

ITT Inc.

    1,533       144,209  

Lincoln Electric Holdings Inc.

    1,403       199,787  

Middleby Corp. (The)(a)

    1,167       212,908  

Oshkosh Corp.

    1,442       154,294  

Otis Worldwide Corp.

    5,753       462,023  

PACCAR Inc.

    9,306       834,004  

Parker-Hannifin Corp.

    3,439       1,019,973  

Pentair PLC

    3,039       224,795  

Snap-on Inc.

    2,057       418,044  

Stanley Black & Decker Inc.

    3,462       622,225  

Westinghouse Air Brake Technologies Corp.

    7,232       656,159  
   

 

 

 
      14,218,076  
Media — 1.7%  

Altice USA Inc., Class A(a)

    3,540       57,702  

Comcast Corp., Class A

    174,528       8,975,975  

Discovery Inc., Class A(a)(b)

    6,404       150,110  

Discovery Inc., Class C, NVS(a)

    11,753       265,148  

DISH Network Corp., Class A(a)

    9,437       387,578  

Fox Corp., Class A, NVS

    12,298       488,723  

Fox Corp., Class B

    5,673       209,674  

Interpublic Group of Companies Inc. (The)

    14,947       546,612  

Liberty Media Corp.-Liberty SiriusXM, Class A(a)

    1,512       75,267  

Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)

    3,028       149,341  

News Corp., Class A, NVS

    14,857       340,225  

News Corp., Class B

    4,597       103,708  

Omnicom Group Inc.

    8,173       556,418  

Sirius XM Holdings Inc.(b)

    20,453       124,559  

ViacomCBS Inc., Class A

    393       15,299  

ViacomCBS Inc., Class B, NVS

    23,002       833,132  
   

 

 

 
      13,279,471  
Metals & Mining — 0.6%  

Cleveland-Cliffs Inc.(a)

    17,450       420,719  

Freeport-McMoRan Inc.

    23,879       900,716  

Newmont Corp.

    17,814       961,956  

Nucor Corp.

    11,229       1,253,718  

Reliance Steel & Aluminum Co.

    2,417       353,269  

Southern Copper Corp.

    1,643       98,564  

Steel Dynamics Inc.

    7,417       490,115  
   

 

 

 
      4,479,057  
Mortgage Real Estate Investment — 0.1%  

AGNC Investment Corp.

    20,135       320,549  

Annaly Capital Management Inc.

    55,243       467,356  

Starwood Property Trust Inc.

    10,898       277,572  
   

 

 

 
      1,065,477  
Multi-Utilities — 1.3%  

Ameren Corp.

    9,800       826,042  

CenterPoint Energy Inc.

    22,678       590,535  
Security   Shares     Value  
Multi-Utilities (continued)  

CMS Energy Corp.

    7,803     $ 470,911  

Consolidated Edison Inc.

    13,517       1,019,182  

Dominion Energy Inc.

    30,847       2,342,213  

DTE Energy Co.

    7,360       834,256  

NiSource Inc.

    14,895       367,459  

Public Service Enterprise Group Inc.

    19,310       1,231,978  

Sempra Energy

    12,143       1,549,811  

WEC Energy Group Inc.

    11,995       1,080,270  
   

 

 

 
      10,312,657  
Multiline Retail — 0.8%  

Dollar General Corp.

    6,448       1,428,361  

Dollar Tree Inc.(a)

    8,805       948,827  

Kohl’s Corp.

    5,932       287,880  

Target Corp.

    14,070       3,652,853  
   

 

 

 
              6,317,921  
Oil, Gas & Consumable Fuels — 5.0%  

APA Corp.

    14,357       376,297  

Chevron Corp.

    73,690       8,436,768  

ConocoPhillips

    51,025       3,800,852  

Continental Resources Inc./OK

    2,195       107,138  

Coterra Energy Inc.

    30,883       658,426  

Devon Energy Corp.

    24,033       963,243  

Diamondback Energy Inc.

    6,510       697,807  

EOG Resources Inc.

    22,286       2,060,564  

Exxon Mobil Corp.

    161,316       10,400,042  

Hess Corp.

    10,542       870,453  

Kinder Morgan Inc.

    74,397       1,246,150  

Marathon Oil Corp.

    29,935       488,539  

Marathon Petroleum Corp.

    24,268       1,599,989  

Occidental Petroleum Corp.

    33,884       1,136,131  

ONEOK Inc.

    16,939       1,077,659  

Phillips 66

    16,721       1,250,396  

Pioneer Natural Resources Co.

    8,627       1,613,076  

Targa Resources Corp.

    5,180       283,191  

Texas Pacific Land Corp.

    84       106,988  

Valero Energy Corp.

    15,527       1,200,703  

Williams Companies Inc. (The)

    46,412       1,303,713  
   

 

 

 
      39,678,125  
Personal Products — 0.1%  

Coty Inc., Class A(a)

    12,796       108,510  

Estee Lauder Companies Inc. (The), Class A

    3,051       989,531  
   

 

 

 
      1,098,041  
Pharmaceuticals — 5.7%  

Bristol-Myers Squibb Co.

    84,672       4,944,845  

Elanco Animal Health Inc.(a)

    5,392       177,289  

Eli Lilly & Co.

    16,376       4,171,950  

Jazz Pharmaceuticals PLC(a)

    2,344       311,846  

Johnson & Johnson

    100,309       16,338,330  

Merck & Co. Inc.

    96,456       8,492,951  

Pfizer Inc.

    213,638       9,344,526  

Royalty Pharma PLC, Class A

    13,556       535,868  

Viatris Inc.

    45,902       612,791  
   

 

 

 
      44,930,396  
Professional Services — 0.3%  

Booz Allen Hamilton Holding Corp.

    2,316       201,168  

Dun & Bradstreet Holdings Inc.(a)

    2,853       53,750  

IHS Markit Ltd.

    8,566       1,119,747  

Jacobs Engineering Group Inc.

    2,759       387,419  

Leidos Holdings Inc.

    3,710       370,926  
 

 

 

104  

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Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Value ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Professional Services (continued)  

Nielsen Holdings PLC

    13,619     $ 275,785  

Robert Half International Inc.

    2,244       253,729  
   

 

 

 
              2,662,524  
Real Estate Management & Development — 0.2%  

CBRE Group Inc., Class A(a)

    7,397       769,880  

Jones Lang LaSalle Inc.(a)

    1,944       501,999  

Opendoor Technologies Inc.(a)

    14,570       345,455  
   

 

 

 
      1,617,334  
Road & Rail — 1.7%  

AMERCO

    143       105,389  

CSX Corp.

    85,948       3,108,739  

Kansas City Southern

    1,092       338,793  

Knight-Swift Transportation Holdings Inc.

    4,543       257,543  

Lyft Inc., Class A(a)

    6,752       309,714  

Norfolk Southern Corp.

    9,419       2,760,238  

Union Pacific Corp.

    24,849       5,998,549  

XPO Logistics Inc.(a)

    1,659       142,342  
   

 

 

 
      13,021,307  
Semiconductors & Semiconductor Equipment — 4.1%  

Analog Devices Inc.

    14,998       2,602,003  

Applied Materials Inc.

    11,302       1,544,418  

Broadcom Inc.

    10,571       5,620,284  

First Solar Inc.(a)

    1,975       236,190  

Intel Corp.

    154,589       7,574,861  

KLA Corp.

    2,223       828,645  

Lam Research Corp.

    1,758       990,756  

Microchip Technology Inc.

    13,994       1,036,815  

Micron Technology Inc.

    42,923       2,965,979  

MKS Instruments Inc.

    896       134,445  

NXP Semiconductors NV

    6,074       1,220,024  

ON Semiconductor Corp.(a)

    7,709       370,572  

QUALCOMM Inc.

    13,867       1,844,866  

Skyworks Solutions Inc.

    2,033       339,775  

Texas Instruments Inc.

    21,725       4,073,003  

Wolfspeed Inc.(a)(b)

    1,918       230,371  

Xilinx Inc.

    3,873       697,140  
   

 

 

 
      32,310,147  
Software — 0.7%  

Citrix Systems Inc.

    2,358       223,373  

NortonLifeLock Inc.

    15,678       399,005  

Nuance Communications Inc.(a)

    5,414       298,041  

Oracle Corp.

    40,738       3,908,404  

SS&C Technologies Holdings Inc.

    4,928       391,628  
   

 

 

 
      5,220,451  
Specialty Retail — 2.7%  

Advance Auto Parts Inc.

    1,346       303,550  

AutoNation Inc.(a)

    1,670       202,270  

AutoZone Inc.(a)

    528       942,396  

Bath & Body Works Inc.

    4,734       327,072  

Best Buy Co. Inc.

    8,552       1,045,396  

CarMax Inc.(a)

    3,798       520,022  

GameStop Corp., Class A(a)(b)

    2,379       436,570  

Gap Inc. (The)

    8,277       187,805  

Home Depot Inc. (The)

    26,953       10,019,508  

Lowe’s Companies Inc.

    13,976       3,267,868  

O’Reilly Automotive Inc.(a)

    1,750       1,089,060  

Ross Stores Inc.

    5,471       619,317  

TJX Companies Inc. (The)

    20,746       1,358,656  

Tractor Supply Co.

    1,886       409,583  
Security   Shares     Value  
Specialty Retail (continued)  

Williams-Sonoma Inc.

    1,498     $ 278,224  
   

 

 

 
      21,007,297  
Technology Hardware, Storage & Peripherals — 4.9%  

Apple Inc.

    222,012       33,257,398  

Dell Technologies Inc., Class C(a)

    10,542       1,159,515  

Hewlett Packard Enterprise Co.

    49,562       726,083  

HP Inc.

    45,871       1,391,267  

NetApp Inc.

    8,574       765,658  

Seagate Technology Holdings PLC

    8,007       713,184  

Western Digital Corp.(a)

    6,976       364,775  
   

 

 

 
      38,377,880  
Textiles, Apparel & Luxury Goods — 0.5%  

Capri Holdings Ltd.(a)

    5,749       306,077  

Nike Inc., Class B

    15,427       2,580,783  

PVH Corp.(a)

    2,712       296,503  

Tapestry Inc.

    10,592       412,876  
   

 

 

 
      3,596,239  
Tobacco — 1.1%  

Altria Group Inc.

    70,288       3,100,404  

Philip Morris International Inc.

    59,387       5,614,447  
   

 

 

 
              8,714,851  
Trading Companies & Distributors — 0.1%  

United Rentals Inc.(a)

    1,885       714,622  

WW Grainger Inc.

    796       368,636  
   

 

 

 
      1,083,258  
Water Utilities — 0.1%  

American Water Works Co. Inc.

    3,067       534,210  

Essential Utilities Inc.

    3,750       176,513  
   

 

 

 
      710,723  
Wireless Telecommunication Services — 0.1%  

T-Mobile U.S. Inc.(a)

    8,737       1,005,017  
   

 

 

 

Total Common Stocks — 99.8%
(Cost: $674,406,679)

      785,355,242  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 0.4%  

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    1,567,295       1,568,079  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    1,940,000       1,940,000  
   

 

 

 
      3,508,079  
   

 

 

 

Total Short-Term Investments — 0.4%
(Cost: $3,508,079)

      3,508,079  
   

 

 

 

Total Investments in Securities — 100.2%
(Cost: $677,914,758)

      788,863,321  

Other Assets, Less Liabilities — (0.2)%

      (1,889,458
   

 

 

 

Net Assets — 100.0%

    $ 786,973,863  
   

 

 

 

 

(a) 

Non-income producing security.

(b)

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  105


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Value ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 1,531,709      $  36,490(a )     $      $  (122    $ 2      $ 1,568,079        1,567,295      $  2,367(b )     $  —  

BlackRock Cash Funds: Treasury, SL Agency Shares

     1,890,000        50,000(a )                            1,940,000        1,940,000        39         

BlackRock Inc.

     3,959,677        602,080        (61,767      748        642,062        5,142,800        5,451        42,944         
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 
            $ 626      $  642,064      $ 8,650,879         $ 45,350      $  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

 

 

Long Contracts

           

E-Mini Consumer Staples Index

     8        12/17/21      $  572      $ 8,212  

E-Mini Financial Select Sector Index

     6        12/17/21        743        24,835  

S&P 500 E-Mini Index

     1        12/17/21        230        9,073  
           

 

 

 
            $  42,120  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
     Equity
Contracts
 

 

 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $  42,120  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
     Equity
Contracts
 

 

 

Net Realized Gain (Loss) from:

  

Futures contracts

   $  147,169  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 19,226  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 1,758,262  

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

106  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments (unaudited) (continued)

October 31, 2021

  

iShares® Morningstar Value ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1              Level 2                    Level 3              Total  

 

 

Investments

                 

Assets

                 

Common Stocks

   $  785,355,242        $  —        $  —        $ 785,355,242  

Money Market Funds

     3,508,079                            3,508,079  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 788,863,321        $        $        $ 788,863,321  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative financial instruments(a)

                 

Assets

                 

Futures Contracts

   $ 42,120        $        $        $ 42,120  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

  107


 

Statement of Assets and Liabilities  (unaudited)

October 31, 2021

 

    

iShares

Morningstar

Growth ETF

     iShares
Morningstar
Mid-Cap ETF
    

iShares

Morningstar

Mid-Cap Growth

ETF

    

iShares
Morningstar
Mid-Cap

Value ETF

 

ASSETS

          

Investments in securities, at value (including securities on loan)(a):

          

Unaffiliated(b)

  $ 2,246,532,154      $ 923,074,182      $ 1,352,705,286      $ 477,291,215  

Affiliated(c)

    37,897,392        37,928,054        82,775,716        10,723,857  

Cash

    32,628        28,500        32,697        16,597  

Cash pledged:

          

Futures contracts

    153,000        90,000        111,000        45,000  

Receivables:

          

Investments sold

           243        243        408,420  

Securities lending income — Affiliated

    3,771        5,293        9,030        1,701  

Variation margin on futures contracts

    12,616        1,991        4,359         

Capital shares sold

           336,415        1,129,642         

Dividends

    427,280        338,830        215,109        282,825  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    2,285,058,841        961,803,508        1,436,983,082        488,769,615  
 

 

 

    

 

 

    

 

 

    

 

 

 

LIABILITIES

          

Collateral on securities loaned, at value

    35,183,390        36,302,746        80,915,999        9,919,621  

Payables:

          

Investments purchased

    373,834        336,414        2,196,926         

Variation margin on futures contracts

                         2,072  

Investment advisory fees

    73,110        30,705        66,338        23,863  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    35,630,334        36,669,865        83,179,263        9,945,556  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 2,249,428,507      $ 925,133,643      $ 1,353,803,819      $ 478,824,059  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS CONSIST OF:

          

Paid-in capital

  $ 1,613,951,846      $ 801,421,619      $ 1,076,600,723      $ 410,826,350  

Accumulated earnings

    635,476,661        123,712,024        277,203,096        67,997,709  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 2,249,428,507      $ 925,133,643      $ 1,353,803,819      $ 478,824,059  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    31,650,000        13,100,000        18,250,000        7,250,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 71.07      $ 70.62      $ 74.18      $ 66.04  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited        Unlimited  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

    None        None        None        None  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a) Securities loaned, at value

  $ 34,771,525      $ 36,257,173      $ 80,879,552      $ 9,664,940  

(b) Investments, at cost — Unaffiliated

  $ 1,541,568,952      $ 771,787,307      $ 1,108,220,586      $ 404,390,666  

(c)  Investments, at cost — Affiliated

  $ 37,897,392      $ 37,927,805      $ 82,759,357      $ 10,723,857  

See notes to financial statements.

 

 

108  

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Statement of Assets and Liabilities  (unaudited) (continued)

October 31, 2021

 

     iShares
Morningstar
Small-Cap ETF
    iShares
Morningstar
Small-Cap
Growth ETF
    iShares
Morningstar
Small-Cap
Value ETF
    

iShares
Morningstar
U.S. Equity

ETF

 

ASSETS

        

Investments in securities, at value (including securities on loan)(a):

        

Unaffiliated(b)

  $ 241,576,701     $ 471,375,204     $ 416,086,190      $ 935,705,002  

Affiliated(c)

    23,542,859       65,940,771       18,096,493        14,934,584  

Cash

    210,587       906,460              24,457  

Cash pledged:

        

Futures contracts

    29,000       85,000       53,000        117,000  

Receivables:

        

Investments sold

          155,471               

Securities lending income — Affiliated

    13,585       40,045       6,887        1,385  

Variation margin on futures contracts

    23       1,449       445        4,740  

Dividends

    55,785       37,308       167,330        665,929  
 

 

 

   

 

 

   

 

 

    

 

 

 

Total assets

    265,428,540       538,541,708       434,410,345        951,453,097  
 

 

 

   

 

 

   

 

 

    

 

 

 

LIABILITIES

        

Bank overdraft

                74,933         

Collateral on securities loaned, at value

    23,049,816       64,750,230       17,043,846        10,338,806  

Payables:

        

Investments purchased

    19,305             76,597         

Investment advisory fees

    8,116       23,573       21,179        23,228  
 

 

 

   

 

 

   

 

 

    

 

 

 

Total liabilities

    23,077,237       64,773,803       17,216,555        10,362,034  
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 242,351,303     $ 473,767,905     $ 417,193,790      $ 941,091,063  
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS CONSIST OF:

        

Paid-in capital

  $ 251,393,506     $ 503,703,027     $ 392,056,269      $ 797,472,500  

Accumulated earnings (loss)

    (9,042,203     (29,935,122     25,137,521        143,618,563  
 

 

 

   

 

 

   

 

 

    

 

 

 

NET ASSETS

  $ 242,351,303     $ 473,767,905     $ 417,193,790      $ 941,091,063  
 

 

 

   

 

 

   

 

 

    

 

 

 

Shares outstanding

    4,150,000       9,150,000       7,100,000        14,500,000  
 

 

 

   

 

 

   

 

 

    

 

 

 

Net asset value

  $ 58.40     $ 51.78     $ 58.76      $ 64.90  
 

 

 

   

 

 

   

 

 

    

 

 

 

Shares authorized

    Unlimited       Unlimited       Unlimited        Unlimited  
 

 

 

   

 

 

   

 

 

    

 

 

 

Par value

    None       None       None        None  
 

 

 

   

 

 

   

 

 

    

 

 

 

(a) Securities loaned, at value

  $ 22,560,863     $ 63,488,467     $ 16,617,110      $ 10,170,829  

(b) Investments, at cost — Unaffiliated

  $ 229,411,409     $ 456,449,125     $ 386,884,002      $ 747,787,904  

(c)  Investments, at cost — Affiliated

  $ 23,541,043     $ 65,921,352     $ 18,093,252      $ 13,398,162  

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

  109


 

Statement of Assets and Liabilities (unaudited) (continued)

October 31, 2021

 

    iShares
Morningstar
Value ETF
 

 

 

ASSETS

 

Investments in securities, at value (including securities on loan)(a):

 

Unaffiliated(b)

  $ 780,212,442  

Affiliated(c)

    8,650,879  

Cash

    96,854  

Cash pledged:

 

Futures contracts

    61,000  

Receivables:

 

Investments sold

    145,354  

Securities lending income — Affiliated

    563  

Dividends

    1,004,513  
 

 

 

 

Total assets

    790,171,605  
 

 

 

 

LIABILITIES

 

Collateral on securities loaned, at value

    1,568,374  

Payables:

 

Investments purchased

    1,600,484  

Variation margin on futures contracts

    2,633  

Investment advisory fees

    26,251  
 

 

 

 

Total liabilities

    3,197,742  
 

 

 

 

NET ASSETS

  $ 786,973,863  
 

 

 

 

NET ASSETS CONSIST OF:

 

Paid-in capital

  $ 724,136,930  

Accumulated earnings

    62,836,933  
 

 

 

 

NET ASSETS

  $ 786,973,863  
 

 

 

 

Shares outstanding

    11,750,000  
 

 

 

 

Net asset value

  $ 66.98  
 

 

 

 

Shares authorized

    Unlimited  
 

 

 

 

Par value

    None  
 

 

 

 

(a) Securities loaned, at value

  $ 1,525,422  

(b) Investments, at cost — Unaffiliated

  $ 670,330,785  

(c)  Investments, at cost — Affiliated

  $ 7,583,973  

See notes to financial statements.

 

 

110  

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Statements of Operations (unaudited)

Six Months Ended October 31, 2021

 

    iShares
Morningstar
Growth ETF
    iShares
Morningstar
Mid-Cap ETF
    iShares
Morningstar
Mid-Cap
Growth ETF
    iShares
Morningstar
Mid-Cap
Value ETF
 

 

 

INVESTMENT INCOME

       

Dividends — Unaffiliated

  $ 5,137,719     $ 5,352,478     $ 3,591,026     $ 4,971,778  

Dividends — Affiliated

    101       51       63       27  

Securities lending income — Affiliated — net

    23,965       44,591       57,726       7,713  

Foreign taxes withheld

    (941                  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    5,160,844       5,397,120       3,648,815       4,979,518  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    418,631       181,201       385,910       141,406  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    418,631       181,201       385,910       141,406  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    4,742,213       5,215,919       3,262,905       4,838,112  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated

    9,455,555       (1,824,394     (4,821,576     (4,332,641

Investments — Affiliated

    (2,126     (3,429     (3,404     (370

In-kind redemptions — Unaffiliated

    29,727,190       31,128,082       105,628,647       27,357,765  

Futures contracts

    625,695       70,734       107,549       (14,889
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain

    39,806,314       29,370,993       100,911,216       23,009,865  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated

    253,813,614       31,864,349       29,760,063       (13,523,279

Investments — Affiliated

          2,554       2,409        

Futures contracts

    28,164       10,489       (19,749     (16,734
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    253,841,778       31,877,392       29,742,723       (13,540,013
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    293,648,092       61,248,385       130,653,939       9,469,852  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 298,390,305     $ 66,464,304     $ 133,916,844     $ 14,307,964  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

  111


 

Statements of Operations (unaudited) (continued)

Six Months Ended October 31, 2021

 

    iShares
Morningstar
Small-Cap ETF
    iShares
Morningstar
Small-Cap
Growth ETF
    iShares
Morningstar
Small-Cap
Value ETF
    iShares
Morningstar
U.S. Equity
ETF
 

 

 

INVESTMENT INCOME

       

Dividends — Unaffiliated

  $ 1,506,130     $ 1,789,340     $ 4,296,621     $ 5,983,315  

Dividends — Affiliated

    13       22       22       26,361  

Securities lending income — Affiliated — net

    85,409       166,036       42,146       13,840  

Foreign taxes withheld

    (969     (2,468     (1,510     (1,045
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    1,590,583       1,952,930       4,337,279       6,022,471  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    48,223       150,500       133,218       137,056  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    48,223       150,500       133,218       137,056  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    1,542,360       1,802,430       4,204,061       5,885,415  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated

    5,499,904       (74,419     (5,799,514     3,487,524  

Investments — Affiliated

    (1,718     (5,863     (878     18,152  

In-kind redemptions — Unaffiliated

    321,729       15,284,720       36,770,477       6,050,728  

In-kind redemptions — Affiliated

                      67,292  

Futures contracts

    (9,225     40,395       (39,767     223,717  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain

    5,810,690       15,244,833       30,930,318       9,847,413  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated

    (5,440,586     (22,069,076     (35,172,424     75,979,909  

Investments — Affiliated

    952       3,728       621       307,256  

Futures contracts

    8,662       45,949       38,726       10,885  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    (5,430,972     (22,019,399     (35,133,077     76,298,050  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    379,718       (6,774,566     (4,202,759     86,145,463  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ 1,922,078     $ (4,972,136   $ 1,302     $ 92,030,878  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

112  

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Statements of Operations (unaudited) (continued)

Six Months Ended October 31, 2021

 

    iShares
Morningstar
Value ETF
 

 

 

INVESTMENT INCOME

 

Dividends — Unaffiliated

  $ 8,001,043  

Dividends — Affiliated

    42,983  

Securities lending income — Affiliated — net

    2,367  

Foreign taxes withheld

    (1,362
 

 

 

 

Total investment income

    8,045,031  
 

 

 

 

EXPENSES

 

Investment advisory fees

    149,936  
 

 

 

 

Total expenses

    149,936  
 

 

 

 

Net investment income

    7,895,095  
 

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Investments — Unaffiliated

    4,287,475  

Investments — Affiliated

    (2,546

In-kind redemptions — Unaffiliated

    507,149  

In-kind redemptions — Affiliated

    3,172  

Futures contracts

    147,169  
 

 

 

 

Net realized gain

    4,942,419  
 

 

 

 

Net change in unrealized appreciation (depreciation) on:

 

Investments — Unaffiliated

    31,370,072  

Investments — Affiliated

    642,064  

Futures contracts

    19,226  
 

 

 

 

Net change in unrealized appreciation (depreciation)

    32,031,362  
 

 

 

 

Net realized and unrealized gain

    36,973,781  
 

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 44,868,876  
 

 

 

 

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

  113


 

Statements of Changes in Net Assets

 

    iShares
Morningstar Growth ETF
          iShares
Morningstar Mid-Cap ETF
 
   

 

Six Months Ended
10/31/21

(unaudited)

    Year Ended
04/30/21
          Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS

         

Net investment income

  $ 4,742,213     $ 4,845,931       $ 5,215,919     $ 7,719,141  

Net realized gain

    39,806,314       608,589,359         29,370,993       169,085,137  

Net change in unrealized appreciation (depreciation)

    253,841,778       25,251,220         31,877,392       131,348,468  
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets resulting from operations

    298,390,305       638,686,510         66,464,304       308,152,746  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (4,424,009     (4,551,595       (5,297,013     (8,255,303
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Net increase (decrease) in net assets derived from capital share transactions

    68,411,352       (266,458,523       (17,950,296     14,113,783  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

         

Total increase in net assets

    362,377,648       367,676,392         43,216,995       314,011,226  

Beginning of period

    1,887,050,859       1,519,374,467         881,916,648       567,905,422  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 2,249,428,507     $ 1,887,050,859       $ 925,133,643     $ 881,916,648  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

114  

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Statements of Changes in Net Assets (continued)

 

    iShares
Morningstar Mid-Cap Growth ETF
          iShares
Morningstar Mid-Cap Value ETF
 
   

 

Six Months Ended

10/31/21

(unaudited)

   

Year Ended

04/30/21

         

Six Months Ended

10/31/21
(unaudited)

    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS

         

Net investment income

  $ 3,262,905     $ 1,489,667       $ 4,838,112     $ 8,547,297  

Net realized gain

    100,911,216       312,645,564         23,009,865       10,693,688  

Net change in unrealized appreciation (depreciation)

    29,742,723       160,236,041         (13,540,013     164,917,635  
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets resulting from operations

    133,916,844       474,371,272         14,307,964       184,158,620  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (3,289,967     (981,614       (4,301,135     (8,834,502
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Net increase (decrease) in net assets derived from capital share transactions

    (296,702,927     513,857,069         11,122,753       (48,677,560
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

         

Total increase (decrease) in net assets

    (166,076,050     987,246,727         21,129,582       126,646,558  

Beginning of period

    1,519,879,869       532,633,142         457,694,477       331,047,919  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 1,353,803,819     $ 1,519,879,869       $ 478,824,059     $ 457,694,477  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

  115


 

Statements of Changes in Net Assets (continued)

 

    iShares
Morningstar Small-Cap ETF
           iShares
Morningstar Small-Cap Growth ETF
 
   

 

Six Months

Ended

10/31/21
(unaudited)

    Year Ended
04/30/21
          

Six Months

Ended

10/31/21

(unaudited)

    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 1,542,360     $ 2,578,321        $ 1,802,430     $ 549,019  

Net realized gain

    5,810,690       53,388,319          15,244,833       135,916,805  

Net change in unrealized appreciation (depreciation)

    (5,430,972     45,406,720          (22,019,399     25,548,876  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    1,922,078       101,373,360          (4,972,136     162,014,700  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (1,401,048     (2,733,151        (1,697,810     (481,903
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    29,339       (41,954,608        (285,877,103     413,270,056  
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase (decrease) in net assets

    550,369       56,685,601          (292,547,049     574,802,853  

Beginning of period

    241,800,934       185,115,333          766,314,954       191,512,101  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 242,351,303     $ 241,800,934        $ 473,767,905     $ 766,314,954  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

116  

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Statements of Changes in Net Assets (continued)

 

    iShares
Morningstar Small-Cap Value ETF
           iShares
Morningstar U.S. Equity ETF
 
   

 

Six Months

Ended

10/31/21
(unaudited)

    Year Ended
04/30/21
          

Six Months

Ended

10/31/21
(unaudited)

    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

          

OPERATIONS

          

Net investment income

  $ 4,204,061     $ 6,398,262        $ 5,885,415     $ 10,923,696  

Net realized gain

    30,930,318       23,415,875          9,847,413       257,045,152  

Net change in unrealized appreciation (depreciation)

    (35,133,077     156,299,547          76,298,050       33,456,163  
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets resulting from operations

    1,302       186,113,684          92,030,878       301,425,011  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Decrease in net assets resulting from distributions to shareholders

    (3,583,949     (6,659,248        (5,435,391     (10,641,246
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

    (25,301,864     9,611,427          (36,691,826     (117,661,509
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

          

Total increase (decrease) in net assets

    (28,884,511     189,065,863          49,903,661       173,122,256  

Beginning of period

    446,078,301       257,012,438          891,187,402       718,065,146  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of period

  $ 417,193,790     $ 446,078,301        $ 941,091,063     $ 891,187,402  
 

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

I N A N C I A L  T A T E M E N T S

  117


 

Statements of Changes in Net Assets (continued)

 

    iShares
Morningstar Value ETF
 
   

 

Six Months

Ended

10/31/21
(unaudited)

    Year Ended
04/30/21
 

 

 

INCREASE (DECREASE) IN NET ASSETS

   

OPERATIONS

   

Net investment income

  $ 7,895,095     $ 14,830,848  

Net realized gain

    4,942,419       62,614,272  

Net change in unrealized appreciation (depreciation)

    32,031,362       85,982,111  
 

 

 

   

 

 

 

Net increase in net assets resulting from operations

    44,868,876       163,427,231  
 

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

   

Decrease in net assets resulting from distributions to shareholders

    (7,399,699     (15,026,189
 

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

   

Net increase in net assets derived from capital share transactions

    61,746,796       91,874,202  
 

 

 

   

 

 

 

NET ASSETS

   

Total increase in net assets

    99,215,973       240,275,244  

Beginning of period

    687,757,890       447,482,646  
 

 

 

   

 

 

 

End of period

  $ 786,973,863     $ 687,757,890  
 

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

118  

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Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Morningstar Growth ETF  
   

Six Months Ended

                               
        10/31/21
(unaudited)
    Year Ended
04/30/21(a)
    Year Ended
04/30/20(a)
    Year Ended
04/30/19(a)
    Year Ended
04/30/18(a)
    Year Ended
04/30/17(a)
 

 

 

Net asset value, beginning of period

             $ 61.87     $ 42.80     $ 38.08     $ 33.00     $ 27.25     $ 23.27  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

      0.15       0.14       0.21       0.23       0.30       0.22  

Net realized and unrealized gain(c)

      9.19       19.07       4.73       5.10       5.74       3.98  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase from investment operations

      9.34       19.21       4.94       5.33       6.04       4.20  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

             

From net investment income

      (0.14     (0.14     (0.22     (0.25     (0.29     (0.22
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.14     (0.14     (0.22     (0.25     (0.29     (0.22
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 71.07     $ 61.87     $ 42.80     $ 38.08     $ 33.00     $ 27.25  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

             

Based on net asset value

      15.11 %(f)       44.94     13.04     16.21     22.26     18.15
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

             

Total expenses

      0.04 %(g)       0.23     0.25     0.25     0.25     0.25
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      0.45 %(g)       0.27     0.54     0.66     0.97     0.91
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 2,249,429     $ 1,887,051     $ 1,519,374     $ 1,104,273     $ 932,317     $ 729,026  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

      12 %(f)       97     28     23     48     31
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a five-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T S

  119


Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Mid-Cap ETF  
    Six Months Ended                                
     
10/31/21
(unaudited)
 
 
   
Year Ended
04/30/21
 
(a) 
   
Year Ended
04/30/20
 
(a) 
   
Year Ended
04/30/19
 
(a) 
   
Year Ended
04/30/18
 
(a) 
   
Year Ended
04/30/17
 
(a) 

 

 

Net asset value, beginning of period

             $ 65.81     $ 43.02     $ 49.08     $ 45.05     $ 42.00     $ 36.49  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

      0.39       0.57       0.67       0.75       0.62       0.50  

Net realized and unrealized gain (loss)(c)

      4.82       22.83       (6.03     4.05       3.03       5.67  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

      5.21       23.40       (5.36     4.80       3.65       6.17  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

             

From net investment income

      (0.40     (0.61     (0.70     (0.77     (0.60     (0.66
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

      (0.40     (0.61     (0.70     (0.77     (0.60     (0.66
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

    $ 70.62     $ 65.81     $ 43.02     $ 49.08     $ 45.05     $ 42.00  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

             

Based on net asset value

      7.95 %(f)       54.74     (10.99 )%      10.79     8.73     17.06
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

             

Total expenses

      0.04 %(g)       0.22     0.25     0.25     0.25     0.25
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

      1.15 %(g)       1.06     1.39     1.63     1.40     1.28
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

             

Net assets, end of period (000)

    $ 925,134     $ 881,917     $ 567,905     $ 716,534     $ 747,858     $ 747,607  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

      16 %(f)       133     55     60     50     56
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a four-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Mid-Cap Growth ETF  
 

 

 

 

Six Months Ended
10/31/21
(unaudited)

 

 
 
 

   
Year Ended
04/30/21
 
(a)  
   
Year Ended
04/30/20
 
(a) 
   
Year Ended
04/30/19
 
(a) 
   
Year Ended
04/30/18
 
(a) 
   
Year Ended
04/30/17
 
(a) 

 

 

Net asset value, beginning of period

  $ 66.52    

$

42.27

 

  $ 40.66     $ 34.55     $ 29.55     $ 25.60  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(b)

    0.18       0.07       0.13       0.09       0.13       0.14  

Net realized and unrealized gain(c)

    7.66       24.23       1.61       6.13       5.02       3.96  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase from investment operations

    7.84       24.30       1.74       6.22       5.15       4.10  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions(d)

           

From net investment income

    (0.18     (0.05     (0.13     (0.11     (0.15     (0.15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total distributions

    (0.18     (0.05     (0.13     (0.11     (0.15     (0.15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 74.18     $ 66.52     $ 42.27     $ 40.66     $ 34.55     $ 29.55  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Return(e)

           

Based on net asset value

    11.81 %(f)       57.51     4.29     18.03     17.46     16.06
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets

           

Total expenses

    0.06 %(g)       0.27     0.30     0.30     0.30     0.30
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    0.51 %(g)       0.12     0.31     0.25     0.38     0.52
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Data

           

Net assets, end of period (000)

  $ 1,353,804     $ 1,519,880     $ 532,633     $ 475,724     $ 259,139     $ 212,773  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Portfolio turnover rate(h)

    22 %(f)       90     26     30     43     47
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Per share amounts reflect a six-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(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)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f)

Not annualized.

(g)

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

 

I N A N C I A L  I G H L I G H T S

  121


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

 

    iShares Morningstar Mid-Cap Value ETF  
    Six Months Ended                                
   

10/31/21

(unaudited)

 

 

     
Year Ended
04/30/21
 
(a)  
     
Year Ended
04/30/20
 
(a)  
     
Year Ended
04/30/19
 
(a) 
     
Year Ended
04/30/18
 
(a) 
     
Year Ended
04/30/17
 
(a) 

 

 

Net asset value, beginning of period

                 $ 64.01       $ 40.13       $ 53.28       $ 52.55       $ 49.30       $ 41.87  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.67         1.14         1.50         1.23         1.09         0.96  

Net realized and unrealized gain (loss)(c)

      1.96         23.92         (13.08       0.73         3.21         7.40  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      2.63         25.06         (11.58       1.96         4.30         8.36  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(d)

                       

From net investment income

      (0.60       (1.18       (1.57       (1.23       (1.05       (0.93
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.60       (1.18       (1.57       (1.23       (1.05       (0.93
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 66.04       $ 64.01       $ 40.13       $ 53.28       $ 52.55       $ 49.30  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                       

Based on net asset value

      4.13 %(f)         63.45       (22.07 )%        3.83       8.81       20.15
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets

                       

Total expenses

      0.06 %(g)         0.27       0.30       0.30       0.30       0.30
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      2.05 %(g)         2.32       2.95       2.36       2.13       2.06
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 478,824       $ 457,694       $ 331,048       $ 463,524       $ 417,801       $ 384,524  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(h)

      21 %(f)         95       51       35       45       38
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Per share amounts reflect a three-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

 

    iShares Morningstar Small-Cap ETF  
    Six Months Ended               
   

10/31/21

(unaudited)

 

 

      
Year Ended
04/30/21
 
(a)  
      
Year Ended
04/30/20
 
(a)  
      
Year Ended
04/30/19
 
(a)  
      
Year Ended
04/30/18
 
(a)  
      
Year Ended
04/30/17
 
(a)  

 

 

Net asset value, beginning of period

                 $ 58.27        $ 35.60        $ 43.90        $ 42.58        $ 40.28        $ 33.61  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income(b)

      0.37          0.56          0.57          0.58          0.49          0.42  

Net realized and unrealized gain (loss)(c)

      0.10          22.71          (8.23        1.34          2.35          6.88  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) from investment operations

      0.47          23.27          (7.66        1.92          2.84          7.30  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Distributions(d)

                            

From net investment income

      (0.34        (0.60        (0.64        (0.60        (0.54        (0.63
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total distributions

      (0.34        (0.60        (0.64        (0.60        (0.54        (0.63
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net asset value, end of period

    $ 58.40        $ 58.27        $ 35.60        $ 43.90        $ 42.58        $ 40.28  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total Return(e)

                            

Based on net asset value

      0.81 %(f)          65.95        (17.58 )%         4.56        7.09        21.86
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Ratios to Average Net Assets

                            

Total expenses

      0.04 %(g)          0.22        0.25        0.25        0.25        0.25
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income

      1.28 %(g)          1.24        1.34        1.33        1.18        1.13
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Supplemental Data

                            

Net assets, end of period (000)

    $ 242,351        $ 241,801        $ 185,115        $ 237,032        $ 246,938        $ 241,644  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Portfolio turnover rate(h)

      28 %(f)          175        62        67        56        66
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

Per share amounts reflect a four-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T S

  123


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Small-Cap Growth ETF  
    Six Months Ended                      
   
10/31/21
(unaudited)
 
 
     
Year Ended
04/30/21
 
(a)  
     
Year Ended
04/30/20
 
(a)  
     
Year Ended
04/30/19
 
(a)  
     
Year Ended
04/30/18
 
(a)  
     
Year Ended
04/30/17
 
(a)  

 

 

Net asset value, beginning of period

                 $ 51.60       $ 31.92       $ 34.17       $ 30.51       $ 25.81       $ 21.76  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.18         0.05         0.08         0.04         0.12         0.14  

Net realized and unrealized gain (loss)(c)

      0.18         19.68         (2.24       3.72         4.71         4.22  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      0.36         19.73         (2.16       3.76         4.83         4.36  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(d)

                       

From net investment income

      (0.18       (0.05       (0.09       (0.10       (0.13       (0.31
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.18       (0.05       (0.09       (0.10       (0.13       (0.31
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 51.78       $ 51.60       $ 31.92       $ 34.17       $ 30.51       $ 25.81  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                       

Based on net asset value

      0.70 %(f)         61.86       (6.32 )%        12.35       18.75       20.10
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets

                       

Total expenses

      0.06 %(g)        0.26       0.30       0.30       0.30       0.30
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      0.72 %(g)        0.11       0.24       0.12       0.42       0.60
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 473,768       $ 766,315       $ 191,512       $ 215,251       $ 164,737       $ 116,125  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(h)

      33 %(f)         156       57       55       51       63
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Per share amounts reflect a six-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

124  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Small-Cap Value ETF  
    Six Months Ended                      
   
10/31/21
(unaudited)
 
 
     
Year Ended
04/30/21
 
(a)  
     
Year Ended
04/30/20
 
(a)  
     
Year Ended
04/30/19
 
(a)  
     
Year Ended
04/30/18
 
(a)  
     
Year Ended
04/30/17
 
(a)  

 

 

Net asset value, beginning of period

                 $ 58.31       $ 32.95       $ 47.85       $ 48.08       $ 47.92       $ 40.75  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.56         0.89         1.02         1.08         0.86         1.03  

Net realized and unrealized gain (loss)(c)

      0.38         25.39         (14.74       (0.23       0.20         7.28  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      0.94         26.28         (13.72       0.85         1.06         8.31  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(d)

                       

From net investment income

      (0.49       (0.92       (1.18       (1.08       (0.90       (1.14
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.49       (0.92       (1.18       (1.08       (0.90       (1.14
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 58.76       $ 58.31       $ 32.95       $ 47.85       $ 48.08       $ 47.92  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                       

Based on net asset value

      1.62 %(f)         80.90       (29.05 )%        1.83       2.23       20.58
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets

                       

Total expenses

      0.06 %(g)         0.26       0.30       0.30       0.30       0.30
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.89 %(g)         2.07       2.34       2.24       1.78       2.29
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 417,194       $ 446,078       $ 257,012       $ 430,681       $ 447,161       $ 481,551  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(h)

      26 %(f)         145       65       48       54       48
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Per share amounts reflect a three-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  H I G H L I G H T S

  125


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar U.S. Equity ETF  
    Six Months Ended                      
   
10/31/21
(unaudited)
 
 
     
Year Ended
04/30/21
 
(a) 
     
Year Ended
04/30/20
 
(a)  
     
Year Ended
04/30/19
 
(a) 
     
Year Ended
04/30/18
 
(a) 
     
Year Ended
04/30/17
 
(a) 

 

 

Net asset value, beginning of period

                 $ 59.02       $ 40.80       $ 41.90       $ 38.08       $ 35.72       $ 30.15  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income(b)

      0.40         0.66         0.81         0.81         0.73         0.64  

Net realized and unrealized gain (loss)(c)

      5.85         18.21         (0.88       3.82         2.36         5.61  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net increase (decrease) from investment operations

      6.25         18.87         (0.07       4.63         3.09         6.25  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Distributions(d)

                       

From net investment income

      (0.37       (0.65       (1.03       (0.81       (0.73       (0.68
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total distributions

      (0.37       (0.65       (1.03       (0.81       (0.73       (0.68
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net asset value, end of period

    $ 64.90       $ 59.02       $ 40.80       $ 41.90       $ 38.08       $ 35.72  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Total Return(e)

                       

Based on net asset value

      10.62 %(f)        46.58       (0.13 )%        12.33       8.66       20.97
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Ratios to Average Net Assets

                       

Total expenses

      0.03 %(g)         0.18       0.20       0.20       0.20       0.20
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Net investment income

      1.29 %(g)         1.32       1.90       2.05       1.91       1.96
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Supplemental Data

                       

Net assets, end of period (000)

    $ 941,091       $ 891,187       $ 718,065       $ 863,172       $ 944,382       $ 814,433  
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

Portfolio turnover rate(h)

      4 %(f)         131       49       38       46       45
   

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

 

 

(a) 

Per share amounts reflect a four-for-one stock split effective after the close of trading on April 16, 2021.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

126  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Morningstar Value ETF  
    Six Months Ended               
   

10/31/21

(unaudited)

 

 

      
Year Ended
04/30/21
 
(a)  
      
Year Ended
04/30/20
 
(a)  
      
Year Ended
04/30/19
 
(a)  
      
Year Ended
04/30/18
 
(a)  
      
Year Ended
04/30/17
 
(a)  

 

 

Net asset value, beginning of period

                 $ 63.68        $ 48.12        $ 54.18        $ 50.55        $ 47.54        $ 42.52  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income(b)

      0.69          1.55          1.65          1.49          1.28          1.27  

Net realized and unrealized gain (loss)(c)

      3.25          15.58          (6.04        3.58          3.01          5.01  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net increase (decrease) from investment operations

      3.94          17.13          (4.39        5.07          4.29          6.28  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Distributions(d)

                            

From net investment income

      (0.64        (1.57        (1.67        (1.44        (1.28        (1.26
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total distributions

      (0.64        (1.57        (1.67        (1.44        (1.28        (1.26
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net asset value, end of period

    $ 66.98        $ 63.68        $ 48.12        $ 54.18        $ 50.55        $ 47.54  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total Return(e)

                            

Based on net asset value

      6.22 %(f)          36.36        (8.23 )%         10.22        9.07        14.95
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Ratios to Average Net Assets

                            

Total expenses

      0.04 %(g)          0.22        0.25        0.25        0.25        0.25
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net investment income

      2.11 %(g)          2.88        3.06        2.86        2.54        2.78
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Supplemental Data

                            

Net assets, end of period (000)

    $ 786,974        $ 687,758        $ 447,483        $ 492,996        $ 374,024        $ 380,268  
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Portfolio turnover rate(h)

      11 %(f)          112        36        24        24        31
   

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on April 16, 2021.

(b)

Based on average shares outstanding.

(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)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g)

Annualized.

(h)

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L  I G H L I G H T S

  127


Notes to Financial Statements  (unaudited)

 

1.

ORGANIZATION

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 is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

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

 

iShares ETF   Diversification      
Classification      

Morningstar Growth

  Non-diversified      

Morningstar Mid-Cap

  Diversified      

Morningstar Mid-Cap Growth

  Diversified      

Morningstar Mid-Cap Value

  Diversified      

Morningstar Small-Cap

  Diversified      

Morningstar Small-Cap Growth

  Diversified      

Morningstar Small-Cap Value

  Diversified      

Morningstar U.S. Equity

  Diversified      

Morningstar Value

  Diversified      

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations 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. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its 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 October 31, 2021, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

Distributions: 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. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

 

128  

2 0 2 1   H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Notes to Financial Statements  (unaudited) (continued)

 

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. 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. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

   

Equity investments traded on a recognized securities exchange are valued at that day’s 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.

 

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

 

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. 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 price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

 

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

 

   

Level 3 – Unobservable inputs 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 financial instruments).

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 judgment 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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 market 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 Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule 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, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

 

 

O T ES   T O   F I N A N C I A L   S T A T E M E N T S

  129


Notes to Financial Statements  (unaudited) (continued)

 

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “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, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

 

 
iShares ETF and Counterparty    
Market Value of
 Securities on Loan
 
 
    

 Cash Collateral

Received

 

(a)  

   
 Non-Cash Collateral
Received
 
 
      Net Amount  

 

 

 

Morningstar Growth

         

Barclays Bank PLC

  $ 2,994,086      $ 2,994,086     $      $  

Barclays Capital, Inc.

    5,410,288        5,258,161              (152,127 )(b) 

BNP Paribas SA

    1,550,499        1,550,499               

BofA Securities, Inc.

    61,665        61,665               

Credit Suisse Securities (USA) LLC

    99,276        99,276               

Goldman Sachs & Co. LLC

    1,027,223        1,027,223               

J.P. Morgan Securities LLC

    3,307,585        3,265,817              (41,768 )(b) 

Morgan Stanley

    1,183,656        1,183,656               

Scotia Capital (USA), Inc.

    9,001,067        9,001,067               

State Street Bank & Trust Co.

    4,321,029        4,321,029               

Toronto Dominion Bank

    2,931        2,931               

UBS AG

    5,812,220        5,628,899              (183,321 )(b) 
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 34,771,525      $ 34,394,309     $      $ (377,216
 

 

 

    

 

 

   

 

 

    

 

 

 

Morningstar Mid-Cap

         

Barclays Bank PLC

  $ 5,562,288      $ 5,562,288     $      $  

Barclays Capital, Inc.

    71,984        71,327              (657 )(b)  

BNP Paribas SA

    5,305,364        5,305,364               

BofA Securities, Inc.

    3,066,406        3,057,831              (8,575 )(b)  

Citigroup Global Markets, Inc.

    505,384        505,384               

Goldman Sachs & Co. LLC

    4,586,639        4,586,639               

J.P. Morgan Securities LLC

    10,676,906        10,382,723              (294,183 )(b) 

Morgan Stanley

    2,307,541        2,307,541               

Scotia Capital (USA), Inc.

    366,274        366,274               

State Street Bank & Trust Co.

    1,329,149        1,329,149               

UBS AG

    990,688        990,688               

Wells Fargo Securities LLC

    1,488,550        1,488,550               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 36,257,173      $ 35,953,758     $      $ (303,415
 

 

 

    

 

 

   

 

 

    

 

 

 

Morningstar Mid-Cap Growth

         

Barclays Bank PLC

  $ 81,391      $ 81,391     $      $  

BMO Capital Markets Corp.

    98,872        98,872               

BNP Paribas SA

    6,529,917        6,442,973              (86,944 )(b) 

BofA Securities, Inc.

    8,946,326        8,858,406              (87,920 )(b) 

Citigroup Global Markets, Inc.

    9,442,996        9,437,429              (5,567 )(b)  

Credit Suisse Securities (USA) LLC

    394,641        394,641               

Goldman Sachs & Co. LLC

    8,958,690        8,958,690               

J.P. Morgan Securities LLC

    27,431,218        27,044,354              (386,864 )(b) 

Scotia Capital (USA), Inc.

    913,428        913,428               

State Street Bank & Trust Co.

    3,949,947        3,949,947               

Toronto Dominion Bank

    3,355,134        3,355,134               

UBS AG

    3,112,810        3,112,810               

Wells Fargo Bank N.A.

    2,404,624        2,404,624               

Wells Fargo Securities LLC

    5,259,558        5,259,558               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 80,879,552      $ 80,312,257     $      $ (567,295
 

 

 

    

 

 

   

 

 

    

 

 

 

 

 

130  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Notes to Financial Statements  (unaudited) (continued)

 

 

 

 

iShares ETF and Counterparty

   
Market Value of
 Securities on Loan
 
 
    

 Cash Collateral

Received

 

(a) 

   
 Non-Cash Collateral
Received
 
 
      Net Amount  

 

 

 

Morningstar Mid-Cap Value

         

Barclays Bank PLC

  $ 1,572,662      $ 1,572,662     $      $  

BNP Paribas SA

    1,886,238        1,886,238               

Citigroup Global Markets, Inc.

    1,838,915        1,838,915               

Goldman Sachs & Co. LLC

    2,440,610        2,440,610               

J.P. Morgan Securities LLC

    901,286        901,286               

Morgan Stanley

    444,424        440,843              (3,581 )(b) 

SG Americas Securities LLC

    4,149        4,149               

Wells Fargo Securities LLC

    576,656        576,656               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 9,664,940      $ 9,661,359     $      $ (3,581
 

 

 

    

 

 

   

 

 

    

 

 

 

Morningstar Small-Cap

         

Barclays Bank PLC

  $ 1,106,553      $ 1,106,553     $      $  

Barclays Capital, Inc.

    156,511        156,511               

BNP Paribas SA

    2,193,361        2,193,361               

BofA Securities, Inc.

    1,857,145        1,857,145               

Citigroup Global Markets, Inc.

    413,525        413,525               

Credit Suisse Securities (USA) LLC

    906,116        906,116               

Deutsche Bank Securities, Inc.

    29,228        29,228               

Goldman Sachs & Co. LLC

    6,441,638        6,441,638               

HSBC Bank PLC

    50,223        50,223               

J.P. Morgan Securities LLC

    2,343,359        2,343,359               

Jefferies LLC

    315,068        314,327              (741 )(b)  

Morgan Stanley

    3,530,442        3,530,442               

National Financial Services LLC

    738,201        736,417              (1,784 )(b) 

Natixis S.A.

    262,467        261,951              (516 )(b)  

Scotia Capital (USA), Inc.

    159,393        159,393               

State Street Bank & Trust Co.

    101,174        101,174               

Toronto Dominion Bank

    426,807        426,807               

UBS AG

    175,996        175,996               

UBS Securities LLC

    346,941        346,941               

Virtu Americas LLC

    563,297        563,297               

Wells Fargo Bank N.A.

    301,333        301,333               

Wells Fargo Securities LLC

    142,085        142,085               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 22,560,863      $ 22,557,822     $      $ (3,041
 

 

 

    

 

 

   

 

 

    

 

 

 

Morningstar Small-Cap Growth

         

Barclays Bank PLC

  $ 3,585,311      $ 3,585,311     $      $  

Barclays Capital, Inc.

    230,625        230,625               

BNP Paribas SA

    6,170,161        6,170,161               

BofA Securities, Inc.

    5,152,057        5,152,057               

Citadel Clearing LLC

    284,752        284,386              (366 )(b)  

Citigroup Global Markets, Inc.

    923,633        923,633               

Credit Suisse Securities (USA) LLC

    2,706,222        2,706,222               

Goldman Sachs & Co. LLC

    14,973,292        14,973,292               

HSBC Bank PLC

    172,251        172,251               

J.P. Morgan Securities LLC

    9,466,863        9,466,863               

Jefferies LLC

    996,429        996,429               

Morgan Stanley

    9,141,480        9,141,480               

National Financial Services LLC

    1,296,935        1,296,935               

Natixis S.A.

    112,691        112,691               

Nomura Securities International, Inc.

    14,619        14,619               

Scotia Capital (USA), Inc.

    652,988        652,988               

State Street Bank & Trust Co.

    3,399,716        3,399,716               

Toronto Dominion Bank

    1,781,948        1,781,948               

UBS AG

    334,237        334,237               

UBS Securities LLC

    219,128        216,401              (2,727 )(b) 

Wells Fargo Bank N.A.

    1,259,274        1,259,274               

Wells Fargo Securities LLC

    613,855        613,855               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 63,488,467      $ 63,485,374     $      $ (3,093
 

 

 

    

 

 

   

 

 

    

 

 

 

 

 

O T E S   T O   F I N A N C I A L   S T A T E M E N T S

  131


Notes to Financial Statements  (unaudited) (continued)

 

 

 

 

iShares ETF and Counterparty

   
Market Value of
Securities on Loan
 
 
    
Cash Collateral
Received
 
(a)  
   
Non-Cash Collateral
Received
 
 
     Net Amount  

 

 

Morningstar Small-Cap Value

         

Barclays Bank PLC

  $ 898,359      $ 892,254     $      $ (6,105 )(b)  

Barclays Capital, Inc.

    109,894        109,894               

BNP Paribas SA

    873,184        873,184               

BofA Securities, Inc.

    1,680,508        1,672,556              (7,952 )(b)  

Citigroup Global Markets, Inc.

    2,733,350        2,733,350               

Credit Suisse Securities (USA) LLC

    397,638        397,638               

Goldman Sachs & Co. LLC

    2,446,300        2,446,300               

HSBC Bank PLC

    764,252        764,252               

J.P. Morgan Securities LLC

    879,421        879,421               

Jefferies LLC

    7,671        7,671               

Morgan Stanley

    5,109,331        5,109,331               

National Financial Services LLC

    118,048        118,048               

State Street Bank & Trust Co.

    73,333        73,333               

Toronto Dominion Bank

    24,597        24,597               

UBS AG

    166,804        166,804               

UBS Securities LLC

    300,971        300,971               

Wells Fargo Securities LLC

    33,449        33,449               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 16,617,110      $ 16,603,053     $      $ (14,057
 

 

 

    

 

 

   

 

 

    

 

 

 

Morningstar U.S. Equity

         

Barclays Bank PLC

  $ 897,208      $ 896,590     $      $ (618 )(b)  

BNP Paribas SA

    1,342,379        1,342,379               

BofA Securities, Inc.

    183,551        183,551               

Credit Suisse Securities (USA) LLC

    337,431        337,431               

Deutsche Bank Securities, Inc.

    25,212        25,212               

Goldman Sachs & Co. LLC

    946,457        946,457               

J.P. Morgan Securities LLC

    1,321,250        1,313,061              (8,189 )(b)  

Jefferies LLC

    152,161        152,161               

Morgan Stanley

    763,145        763,145               

National Financial Services LLC

    147,687        147,687               

Scotia Capital (USA), Inc.

    405,140        405,140               

SG Americas Securities LLC

    374,803        374,803               

State Street Bank & Trust Co.

    84,083        84,083               

Toronto Dominion Bank

    724,304        724,304               

UBS AG

    2,466,018        2,466,018               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 10,170,829      $ 10,162,022     $      $ (8,807
 

 

 

    

 

 

   

 

 

    

 

 

 
         

Morningstar Value

         

BNP Paribas SA

  $ 119,418      $ 119,418     $      $  

Citigroup Global Markets, Inc.

    146,078        146,078               

Goldman Sachs & Co. LLC

    119,460        119,460               

J.P. Morgan Securities LLC

    432,166        432,166               

Morgan Stanley

    518,449        518,449               

Wells Fargo Securities LLC

    189,851        189,851               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 1,525,422      $ 1,525,422     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (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) 

The market value of the loaned securities is determined as of October 31, 2021. Additional collateral is delivered to the Fund 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.

 

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent 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 market 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. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk) .

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 Funds, based on the average daily net assets of each Fund as follows:

 

   
iShares ETF   Investment Advisory Fee  

Morningstar Growth

    0.04

Morningstar Mid-Cap

    0.04  

Morningstar Mid-Cap Growth

    0.06  

Morningstar Mid-Cap Value

    0.06  

Morningstar Small-Cap

    0.04  

Morningstar Small-Cap Growth

    0.06  

Morningstar Small-Cap Value

    0.06  

Morningstar U.S. Equity

    0.03  

Morningstar Value

    0.04  

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. 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 SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 77% of securities lending income (which excludes collateral investment fees) 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 that calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

 

O T E S    T O   F I N A N C I A L   S T A T E M E N T S

  133


Notes to Financial Statements  (unaudited) (continued)

 

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended October 31, 2021, the Funds paid BTC the following amounts for securities lending agent services:

 

   
iShares ETF   Fees Paid    
to BTC    
 

Morningstar Growth

  $ 10,264      

Morningstar Mid-Cap

    17,768      

Morningstar Mid-Cap Growth

    24,740      

Morningstar Mid-Cap Value

    3,268      

Morningstar Small-Cap

    29,617      

Morningstar Small-Cap Growth

    62,143      

Morningstar Small-Cap Value

    16,220      

Morningstar U.S. Equity

    5,820      

Morningstar Value

    994      

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: 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 six months ended October 31, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

       
iShares ETF   Purchases      Sales      Net Realized     
Gain (Loss)     
 

Morningstar Growth

  $   99,719,460      $   100,796,617      $ 3,513,243       

Morningstar Mid-Cap

    75,480,594        57,462,616        (1,935,287)      

Morningstar Mid-Cap Growth

    143,729,932        118,642,865        (3,087,483)      

Morningstar Mid-Cap Value

    64,276,135        50,578,446        (2,997,808)      

Morningstar Small-Cap

    17,705,089        37,483,940        3,583,053       

Morningstar Small-Cap Growth

    68,216,914        85,767,462        430,680       

Morningstar Small-Cap Value

    38,099,290        49,139,060          (3,311,458)      

Morningstar U.S. Equity

    16,699,591        9,665,135        552,679       

Morningstar Value

    41,831,030        25,276,052        86,668       

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 shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the six months ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

     

 

iShares ETF

  Purchases     

 

Sales

 

Morningstar Growth

  $   251,041,940      $   249,180,970  

Morningstar Mid-Cap

    139,334,724        139,485,301  

Morningstar Mid-Cap Growth

    290,796,636        291,082,613  

Morningstar Mid-Cap Value

    99,186,108        98,501,828  

Morningstar Small-Cap

    66,216,450        66,322,681  

Morningstar Small-Cap Growth

    171,485,955        176,364,399  

Morningstar Small-Cap Value

    115,660,287        112,421,471  

Morningstar U.S. Equity

    37,260,115        36,831,060  

Morningstar Value

    78,498,498        78,169,943  

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

For the six months ended October 31, 2021, in-kind transactions were as follows:

 

     
iShares ETF   In-kind
Purchases
    

In-kind

Sales

 

Morningstar Growth

  $ 146,239,297      $ 78,014,635  

Morningstar Mid-Cap

    132,264,452        149,577,925  

Morningstar Mid-Cap Growth

      269,651,776          564,040,562  

Morningstar Mid-Cap Value

    132,693,539        121,898,827  

Morningstar Small-Cap

    2,708,504        2,682,903  

Morningstar Small-Cap Growth

    2,520,989        284,821,609  

Morningstar Small-Cap Value

    128,800,608        156,928,275  

Morningstar U.S. Equity

           36,569,715  

Morningstar Value

    64,690,804        3,173,476  

 

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 each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of April 30, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

   
iShares ETF  

 

Non-Expiring

 

Morningstar Growth

  $   109,462,904  

Morningstar Mid-Cap

    56,037,265  

Morningstar Mid-Cap Growth

    68,160,148  

Morningstar Mid-Cap Value

    27,164,578  

Morningstar Small-Cap

    26,958,768  

Morningstar Small-Cap Growth

    59,824,289  

Morningstar Small-Cap Value

    35,069,200  

Morningstar U.S. Equity

    56,517,575  

Morningstar Value

    53,433,371  

As of October 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
    

 

Net Unrealized
Appreciation
(Depreciation)

 

Morningstar Growth

  $   1,579,936,999      $ 729,781,412      $ (25,221,169    $   704,560,243  

Morningstar Mid-Cap

    810,553,335        182,890,160        (32,373,491      150,516,669  

Morningstar Mid-Cap Growth

    1,191,573,257        276,504,865        (32,563,939      243,940,926  

Morningstar Mid-Cap Value

    416,382,893        82,189,724        (10,529,851      71,659,873  

Morningstar Small-Cap

    253,163,659        33,184,602        (21,218,954      11,965,648  

Morningstar Small-Cap Growth

    522,890,873        61,794,395        (47,323,603      14,470,792  

Morningstar Small-Cap Value

    405,565,118        54,226,001        (25,569,706      28,656,295  

Morningstar U.S. Equity

    761,367,893        207,457,385        (18,105,542      189,351,843  

Morningstar Value

    679,067,359          124,396,023        (14,557,941      109,838,082  

 

9.

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. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

 

 

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  135


Notes to Financial Statements  (unaudited) (continued)

 

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.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: 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.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

LIBORTransition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

10.

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.

 

 

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Notes to Financial Statements (unaudited) (continued)

 

Transactions in capital shares were as follows:

 

 

 
   

 

Six Months Ended

10/31/21

    Year Ended
04/30/21
 
iShares ETF   Shares    

Amount

   

Shares

   

Amount

 

 

 

Morningstar Growth

       

Shares sold

    2,400,000     $ 146,556,090       29,900,000 (a)    $ 1,604,954,974  

Shares redeemed

    (1,250,000     (78,144,738     (34,900,000 )(a)      (1,871,413,497
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    1,150,000     $ 68,411,352       (5,000,000   $ (266,458,523
 

 

 

   

 

 

   

 

 

   

 

 

 

Morningstar Mid-Cap

       

Shares sold

    2,000,000     $ 132,799,764       7,400,000 (b)    $ 452,376,412  

Shares redeemed

    (2,300,000     (150,750,060     (7,200,000 )(b)      (438,262,629
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    (300,000   $ (17,950,296     200,000     $ 14,113,783  
 

 

 

   

 

 

   

 

 

   

 

 

 

Morningstar Mid-Cap Growth

       

Shares sold

    4,000,000     $ 270,501,881       25,600,000 (c)    $ 1,476,002,219  

Shares redeemed

    (8,600,000     (567,204,808     (15,350,000 )(c)      (962,145,150
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    (4,600,000   $ (296,702,927     10,250,000     $ 513,857,069  
 

 

 

   

 

 

   

 

 

   

 

 

 

Morningstar Mid-Cap Value

       

Shares sold

    2,050,000     $ 133,510,841       450,000 (d)     $ 24,647,782  

Shares redeemed

    (1,950,000     (122,388,088     (1,550,000 )(d)      (73,325,342
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    100,000     $ 11,122,753       (1,100,000   $ (48,677,560
 

 

 

   

 

 

   

 

 

   

 

 

 

Morningstar Small-Cap

       

Shares sold

    50,000     $ 2,817,190       3,000,000 (b)    $ 176,528,854  

Shares redeemed

    (50,000     (2,787,851     (4,050,000 )(b)      (218,483,462
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

        $ 29,339       (1,050,000   $ (41,954,608
 

 

 

   

 

 

   

 

 

   

 

 

 

Morningstar Small-Cap Growth

       

Shares sold

    50,000     $ 2,572,231       20,700,000 (c)    $ 1,003,545,020  

Shares redeemed

    (5,750,000     (288,449,334     (11,850,000 )(c)      (590,274,964
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    (5,700,000   $ (285,877,103     8,850,000     $ 413,270,056  
 

 

 

   

 

 

   

 

 

   

 

 

 

Morningstar Small-Cap Value

       

Shares sold

    2,250,000     $ 135,035,605       950,000 (d)     $ 52,199,867  

Shares redeemed

    (2,800,000     (160,337,469     (1,100,000 )(d)      (42,588,440
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    (550,000   $ (25,301,864     (150,000   $ 9,611,427  
 

 

 

   

 

 

   

 

 

   

 

 

 

Morningstar U.S. Equity

       

Shares sold

        $       13,400,000 (b)    $ 738,349,045  

Shares redeemed

    (600,000     (36,691,826     (15,900,000 )(b)      (856,010,554
 

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease

    (600,000   $ (36,691,826     (2,500,000   $ (117,661,509
 

 

 

   

 

 

   

 

 

   

 

 

 

Morningstar Value

       

Shares sold

    1,000,000     $ 64,934,787       7,100,000 (e)    $ 421,625,514  

Shares redeemed

    (50,000     (3,187,991     (5,600,000 )(e)      (329,751,312
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    950,000     $ 61,746,796       1,500,000     $ 91,874,202  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Share transactions reflect a five-for-one stock split effective after the close of trading on April 16, 2021.

 
  (b) 

Share transactions reflect a four-for-one stock split effective after the close of trading on April 16, 2021.

 
  (c) 

Share transactions reflect a six-for-one stock split effective after the close of trading on April 16, 2021.

 
  (d) 

Share transactions reflect a three-for-one stock split effective after the close of trading on April 16, 2021.

 
  (e) 

Share transactions reflect a two-for-one stock split effective after the close of trading on April 16, 2021.

 

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

 

O T E S    T O   F I N A N C I A L   S T A T E M E N T S

  137


Notes to Financial Statements (unaudited) (continued)

 

 

11.

LEGAL PROCEEDINGS

Certain iShares funds (the “Impacted Funds”), along with thousands of other former shareholders of Tribune Company (“Tribune”), were named as defendants in one or more lawsuits (the “Litigation”) arising out of Tribune’s 2007 leveraged buyout transaction (“LBO”). The Litigation seeks to “claw back” from former Tribune shareholders, including the Impacted Funds, proceeds received in connection with the LBO. The iShares Morningstar Mid-Cap Value ETF received proceeds of $404,668 in the LBO. The claims that were originally brought against the Impacted Funds were dismissed but are currently subject to an appeal which remains pending.. The outcome of this appeal could result in new claims being brought against the Impacted Funds and/or previously dismissed claims being revived and subject to continuing litigation. The Impacted Funds intend to vigorously defend the Litigation.

 

12.

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 additional disclosure in the financial statements.

 

 

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Board Review and Approval of Investment Advisory Contract

 

iShares Morningstar Growth ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Mid-Cap Growth ETF, iShares Morningstar Mid-Cap Value ETF, iShares Morningstar Small-Cap ETF, iShares Morningstar Small-Cap Growth ETF, iShares Morningstar Small-Cap Value ETF, iShares Morningstar U.S. Equity ETF, iShares Morningstar Value ETF (each the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2020, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), and other sources of revenue and expense to BFA

 

 

O A R D    E V I E W    A N D     P P R O V A L    O F    N V E S T M E N T    D V I S O R Y    O N T R A C T

  139


Board Review and Approval of Investment Advisory Contract  (continued)

 

and its affiliates from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

 

 

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Supplemental Information (unaudited)

 

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being 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 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.

October 31, 2021

 

       
    Total Cumulative Distributions
for the Fiscal Year-to-Date
        % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
iShares ETF   Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
           Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

Morningstar Growth(a)

  $ 0.132813     $     $   0.006337     $   0.139150         95         5     100

Morningstar Mid-Cap(a)

    0.343686             0.057539       0.401225         86             14       100  

Morningstar Mid-Cap Growth(a)

    0.180553             0.003169       0.183722         98             2       100  

Morningstar Mid-Cap Value(a)

    0.554261             0.046516       0.600777         92             8       100  

Morningstar Small-Cap(a)

    0.298354             0.039248       0.337602         88             12       100  

Morningstar Small-Cap Growth(a)

    0.155208             0.023709       0.178917         87             13       100  

Morningstar Small-Cap Value(a)

    0.445515             0.043066       0.488581         91             9       100  

Morningstar U.S. Equity(a)

    0.366652             0.003031       0.369683         99             1       100  

Morningstar Value(a)

    0.638999             0.001437       0.640436           100             0 (b)      100  

 

  (a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 
  (b) 

Rounds to less than 1%.

 

 

 

S U P P L E M E N T A L    I N F O R M A T I O N

  141


General Information

 

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity

 

NVS    Non-Voting Shares
REIT    Real Estate Investment Trust

 

 

G L O S S A R Y    O F    T E R M S    U S E D    I N    T H I S    R E P O R T

  143


 

Want to know more?

iShares.com    |     1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morningstar, Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

©2021 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-SAR-404-1021

 

 

LOGO

   LOGO


 

LOGO

  OCTOBER 31, 2021

 

  

2021 Semi-Annual Report

(Unaudited)

 

iShares Trust

 

·  

iShares Cohen & Steers REIT ETF | ICF | Cboe BZX

·  

iShares Core U.S. REIT ETF | USRT | NYSE Arca

·  

iShares Global REIT ETF | REET | NYSE Arca

·  

iShares International Developed Real Estate ETF | IFGL | NASDAQ


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of October 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or “COVID-19”) pandemic. The United States began the reporting period as the initial reopening-led economic rebound was beginning to slow. Nonetheless, the economy continued to grow at a solid pace for the reporting period, eventually regaining the output lost from the pandemic. However, a rapid rebound in consumer spending pushed up against supply constraints and led to elevated inflation.

Equity prices rose with the broader economy, as the implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets continued to recover from the effects of the pandemic.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and led to solid returns for high-yield corporate bonds, outpacing investment-grade corporate bonds.

The Fed remained committed to accommodative monetary policy by maintaining near-zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the possibility of higher rates in 2022 and reducing bond purchasing beginning in late 2021.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant of the coronavirus remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart, while Chinese equities stand to gain from a more accommodative monetary and fiscal environment as the Chinese economy slows. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of October 31, 2021
     
     6-Month   12-Month
   

U.S. large cap equities
(S&P 500® Index)

  10.91%   42.91%
   

U.S. small cap equities
(Russell 2000® Index)

  1.85   50.80
   

International equities
(MSCI Europe, Australasia, Far East Index)

  4.14   34.18
   

Emerging market equities
(MSCI Emerging Markets Index)

  (4.87)   16.96
   

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

  0.01   0.06
   

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

  1.59   (4.77)
   

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

  1.06   (0.48)
   

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

  0.33   2.76
   

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

  2.36   10.53

Past performance is not an indication of future results.

Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

2  

H I S   P A G E    I S   N O T   P A R T    O F   Y O U R   F U N D   R  E P O R T


Table of Contents

 

      Page  

The Markets in Review

     2  

Fund Summary

     4  

About Fund Performance

     8  

Shareholder Expenses

     8  

Schedules of Investments

     9  

Financial Statements

  

Statements of Assets and Liabilities

     25  

Statements of Operations

     26  

Statements of Changes in Net Assets

     27  

Financial Highlights

     29  

Notes to Financial Statements

     33  

Board Review and Approval of Investment Advisory Contract

     41  

Supplemental Information

     47  

General Information

     48  

Glossary of Terms Used in this Report

     49  

 

 

 


Fund Summary  as of October 31, 2021    iShares® Cohen & Steers REIT ETF

 

Investment Objective

The iShares Cohen & Steers REIT ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. real estate investment trusts (REITs), as represented by the Cohen & Steers Realty Majors Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    13.22      45.44      10.46     10.49        45.44      64.41      171.08

Fund Market

    13.24        45.50        10.46       10.50          45.50        64.42        171.29  

Index

    13.41        45.93        10.85       10.88                45.93        67.39        181.00  

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 8 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized

Expense

Ratio

 

 

 

$ 1,000.00        $ 1,132.20        $ 1.72             $ 1,000.00        $ 1,023.60        $ 1.63          0.32

 

  (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). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Specialized REITs

    42.1

Residential REITs

    20.0  

Retail REITs

    11.5  

Industrial REITs

    10.9  

Health Care REITs

    8.0  

Office REITs

    6.2  

Hotel & Resort REITs

    1.3  

TEN LARGEST HOLDINGS

 

Security    
Percent of
Total Investments
 
(a) 

Prologis Inc.

    8.6

Equinix Inc.

    7.9  

American Tower Corp.

    7.7  

Crown Castle International Corp.

    7.2  

Public Storage

    5.5  

Simon Property Group Inc.

    5.2  

Digital Realty Trust Inc.

    4.8  

SBA Communications Corp.

    4.1  

Realty Income Corp.

    4.1  

Welltower Inc.

    3.7  
 

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary  as of October 31, 2021    iShares® Core U.S. REIT ETF

 

Investment Objective

The iShares Core U.S. REIT ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. real estate equities, as represented by the FTSE Nareit Equity REITs Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    12.60      51.78      9.67     9.96        51.78      58.64      158.40

Fund Market

    12.62        51.73        9.66       9.95          51.73        58.57        158.28  

Index

    12.63        51.80        9.69       10.22                51.80        58.80        164.60  

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.

Index performance through November 2, 2016 reflects the performance of the FTSE NAREIT Real Estate 50 Index. Index performance beginning on November 3, 2016 reflects the performance of the FTSE Nareit Equity REITS Index.

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 8 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,126.00        $ 0.43             $ 1,000.00        $ 1,024.80        $ 0.41          0.08

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Specialized REITs

    24.8

Residential REITs

    19.7  

Industrial REITs

    14.9  

Retail REITs

    13.3  

Health Care REITs

    10.1  

Office REITs

    9.0  

Diversified REITs

    4.9  

Hotel & Resort REITs

    3.3  

TEN LARGEST HOLDINGS

 

Security    
Percent of
Total Investments
 
(a) 

Prologis Inc.

    8.8

Equinix Inc.

    6.2  

Public Storage

    4.1  

Simon Property Group Inc.

    3.9  

Digital Realty Trust Inc.

    3.6  

Welltower Inc.

    2.8  

AvalonBay Communities Inc.

    2.7  

Equity Residential

    2.6  

Alexandria Real Estate Equities Inc.

    2.6  

Realty Income Corp.

    2.3  
 

 

  (a) 

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  5


Fund Summary  as of October 31, 2021    iShares® Global REIT ETF

 

Investment Objective

The iShares Global REIT ETF (the “Fund”) seeks to track the investment results of an index composed of global real estate equities in developed and emerging markets, as represented by the FTSE EPRA Nareit Global REITS Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     Since
Inception
            1 Year      5 Years      Since
Inception
 

Fund NAV

    8.86      47.03      7.50     6.60        47.03      43.59      59.59

Fund Market

    8.93        46.89        7.48       6.60          46.89        43.41        59.65  

Index

    8.53        45.95        6.60       5.77                45.95        37.64        50.72  

The inception date of the Fund was 7/8/14. The first day of secondary market trading was 7/10/14.

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 8 for more information.

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,088.60        $ 0.74             $ 1,000.00        $ 1,024.50        $ 0.71          0.14

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Industrial REITs

    17.4

Specialized REITs

    17.0  

Retail REITs

    16.5  

Residential REITs

    16.3  

Office REITs

    11.4  

Diversified REITs

    10.6  

Health Care REITs

    8.0  

Hotel & Resort REITs

    2.8  

Other (each representing less than 1%)

    0.0  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

United States

    69.9

Japan

    7.6  

United Kingdom

    5.1  

Australia

    4.0  

Singapore

    3.3  

Canada

    3.2  

France

    1.8  

Belgium

    1.3  

Hong Kong

    1.3  

South Africa

    0.5  
 

 

  (a) 

Excludes money market funds.

 

 

 

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Fund Summary  as of October 31, 2021    iShares® International Developed Real Estate ETF

 

Investment Objective

The iShares International Developed Real Estate ETF (the “Fund”) seeks to track the investment results of an index composed of real estate equities in developed non-U.S. markets, as represented by the FTSE EPRA Nareit Developed ex-U.S. Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

           Average Annual Total Returns            Cumulative Total Returns  
     6 Months      1 Year      5 Years     10 Years             1 Year      5 Years      10 Years  

Fund NAV

    3.12      30.38      6.02     6.04        30.38      33.94      79.78

Fund Market

    3.12        30.34        5.97       6.16          30.34        33.66        81.84  

Index

    3.17        30.52        6.19       6.32                30.52        35.00        84.56  

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 8 for more information.

 

Expense Example

 

Actual           Hypothetical 5% Return           
 

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
           

Beginning
Account Value
(05/01/21)
 
 
 
      

Ending
Account Value
(10/31/21)
 
 
 
      

Expenses
Paid During
the Period
 
 
 (a) 
      

Annualized
Expense
Ratio
 
 
 
$ 1,000.00        $ 1,031.20        $ 2.46             $ 1,000.00        $ 1,022.80        $ 2.45          0.48

 

  (a) 

Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Shareholder Expenses” on page 8 for more information.

 

Portfolio Information

 

ALLOCATION BY SECTOR

 

Sector    
Percent of
Total Investments
 
(a) 

Real Estate Operating Companies

    23.9

Retail REITs

    14.6  

Diversified REITs

    13.5  

Industrial REITs

    12.8  

Diversified Real Estate Activities

    12.4  

Office REITs

    10.2  

Residential REITs

    4.8  

Real Estate Development

    2.9  

Health Care REITs

    1.8  

Specialized REITs

    1.7  

Hotel & Resort REITs

    1.1  

Health Care Facilities

    0.3  

TEN LARGEST GEOGRAPHIC ALLOCATION

 

Country/Geographic Region    
Percent of
Total Investments
 
(a) 

Japan

    23.9

Hong Kong

    11.6  

United Kingdom

    11.4  

Australia

    9.2  

Germany

    8.9  

Singapore

    7.9  

Canada

    7.4  

Sweden

    6.7  

France

    3.6  

Belgium

    2.9  
 

 

  (a) 

Excludes money market funds.

 

 

 

F U N D   S U M M A R Y

  7


About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at 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. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined by using the midpoint between the highest bid and the lowest ask 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. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your Fund and to compare these costs with the ongoing costs of investing in other funds.

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

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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 and other fees 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.

 

 

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Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® Cohen & Steers REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Health Care REITs — 8.0%  

Healthpeak Properties Inc.

    1,583,809     $ 56,241,058  

Ventas Inc.

    1,140,970       60,893,569  

Welltower Inc.

    1,227,003       98,651,041  
   

 

 

 
      215,785,668  
Hotel & Resort REITs — 1.3%  

Host Hotels & Resorts Inc.(a)

    2,075,033       34,922,805  
   

 

 

 
Industrial REITs — 10.9%  

Duke Realty Corp.

    1,101,999       61,976,424  

Prologis Inc.

    1,608,456       233,161,781  
   

 

 

 
         295,138,205  
Office REITs — 6.2%  

Alexandria Real Estate Equities Inc.

    403,136       82,296,183  

Boston Properties Inc.

    417,387       47,431,859  

Cousins Properties Inc.

    436,859       17,303,985  

Kilroy Realty Corp.

    311,421       20,983,547  
   

 

 

 
      168,015,574  
Residential REITs — 20.0%  

AvalonBay Communities Inc.

    410,269       97,102,467  

Equity LifeStyle Properties Inc.

    498,947       42,166,011  

Equity Residential

    1,011,190       87,366,816  

Essex Property Trust Inc.

    191,018       64,932,748  

Invitation Homes Inc.

    1,668,199       68,813,209  

Mid-America Apartment Communities Inc.

    336,452       68,706,863  

Sun Communities Inc.

    328,641       64,407,063  

UDR Inc.

    820,026       45,536,044  
   

 

 

 
      539,031,221  
Retail REITs — 11.5%  

Federal Realty Investment Trust

    207,940       25,025,579  

Realty Income Corp.

    1,553,313       110,953,148  

Regency Centers Corp.

    464,244       32,687,420  
Security   Shares      Value  
Retail REITs (continued)  

Simon Property Group Inc.

    965,481      $ 141,520,205  
    

 

 

 
       310,186,352  
Specialized REITs — 42.0%  

American Tower Corp.

    739,518        208,521,890  

Crown Castle International Corp.

    1,071,010        193,103,103  

Digital Realty Trust Inc.

    827,526        130,591,878  

Equinix Inc.

    254,384        212,937,215  

Extra Space Storage Inc.

    392,997        77,565,818  

Public Storage

    447,373        148,608,363  

SBA Communications Corp.

    321,456        111,008,401  

VICI Properties Inc.

    1,804,244        52,954,561  
    

 

 

 
       1,135,291,229  
    

 

 

 

Total Common Stocks — 99.9%
(Cost: $2,004,229,706)

       2,698,371,054  
    

 

 

 

Short-Term Investments

 

Money Market Funds — 0.1%  

BlackRock Cash Funds: Treasury,

    

SL Agency Shares, 0.00%(b)(c)

    3,800,000        3,800,000  
    

 

 

 

Total Short -Term Investments — 0.1%
(Cost: $3,800,000)

 

     3,800,000  
    

 

 

 

Total Investments in Securities — 100.0%
(Cost: $2,008,029,706)

 

     2,702,171,054  

Other Assets, Less Liabilities — (0.0)%

       (1,341,504
    

 

 

 

Net Assets — 100.0%

     $   2,700,829,550  
    

 

 

 

 

(a) 

Non-income producing security.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income      Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Treasury, SL Agency Shares

   $ 4,130,000      $  —      $ (330,000 )(a)     $  —      $  —      $ 3,800,000        3,800,000      $  102      $  —  
           

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a)

Represents net amount purchased (sold).

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

Dow Jones U.S. Real Estate Index

     46        12/17/21      $  1,955      $  106,096  
           

 

 

 

 

 

C H E D U L E   O F  N V E S T M E N T S

  9


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Cohen & Steers REIT ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $  106,096  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 489,121  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (291,547
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 2,934,487  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $  2,698,371,054      $      $      $ 2,698,371,054  

Money Market Funds

     3,800,000                      3,800,000  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,702,171,054      $      $      $ 2,702,171,054  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 106,096      $             —      $             —      $ 106,096  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

10  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® Core U.S. REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Diversified REITs — 4.9%  

Alexander & Baldwin Inc.

    149,847     $ 3,675,747  

American Assets Trust Inc.

    103,266       3,906,553  

Armada Hoffler Properties Inc.

    125,733       1,723,800  

Broadstone Net Lease Inc.

    320,668       8,526,562  

DigitalBridge Group Inc.(a)

    1,007,142       6,747,851  

Empire State Realty Trust Inc., Class A

    296,910       2,874,089  

Essential Properties Realty Trust Inc.

    242,905       7,236,140  

Gladstone Commercial Corp.

    76,209       1,665,929  

Global Net Lease Inc.

    208,785       3,344,736  

One Liberty Properties Inc.

    33,950       1,061,277  

PS Business Parks Inc.

    41,692       7,408,668  

STORE Capital Corp.

    508,940       17,471,910  

VEREIT Inc.

    475,639       23,924,642  

Washington REIT

    176,800       4,481,880  

WP Carey Inc.

    380,740       29,358,861  
   

 

 

 
        123,408,645  
Health Care REITs — 10.0%  

CareTrust REIT Inc.

    181,303       3,762,037  

Community Healthcare Trust Inc.

    49,175       2,352,532  

Diversified Healthcare Trust

    495,683       1,804,286  

Global Medical REIT Inc.

    123,812       2,052,803  

Healthcare Realty Trust Inc.

    301,401       9,964,317  

Healthcare Trust of America Inc., Class A

    453,315       15,136,188  

Healthpeak Properties Inc.

    1,123,447       39,893,603  

LTC Properties Inc.

    80,512       2,565,112  

Medical Properties Trust Inc.

    1,231,320       26,264,056  

National Health Investors Inc.

    90,928       4,890,108  

Omega Healthcare Investors Inc.

    497,114       14,595,267  

Physicians Realty Trust

    447,014       8,497,736  

Sabra Health Care REIT Inc.

    457,633       6,475,507  

Universal Health Realty Income Trust

    26,817       1,527,765  

Ventas Inc.

    818,525       43,684,679  

Welltower Inc.

    881,148       70,844,299  
   

 

 

 
      254,310,295  
Hotel & Resort REITs — 3.3%  

Apple Hospitality REIT Inc.

    444,719       6,986,535  

Chatham Lodging Trust(a)

    100,099       1,270,256  

CorePoint Lodging Inc.(a)

    82,236       1,417,749  

DiamondRock Hospitality Co.(a)

    432,550       3,910,252  

Hersha Hospitality Trust, Class A(a)

    66,685       595,497  

Host Hotels & Resorts Inc.(a)

    1,473,188       24,793,754  

Park Hotels & Resorts Inc.(a)

    489,317       9,067,044  

Pebblebrook Hotel Trust(b)

    269,859       6,061,033  

RLJ Lodging Trust

    343,546       4,953,933  

Ryman Hospitality Properties Inc.(a)(b)

    111,374       9,526,932  

Service Properties Trust

    338,536       3,646,033  

Summit Hotel Properties Inc.(a)

    216,203       2,162,030  

Sunstone Hotel Investors Inc.(a)

    452,208       5,580,247  

Xenia Hotels & Resorts Inc.(a)

    236,085       4,202,313  
   

 

 

 
      84,173,608  
Industrial REITs — 14.8%  

Americold Realty Trust

    543,824       16,026,493  

Duke Realty Corp.

    780,020       43,868,325  

EastGroup Properties Inc.

    82,291       16,275,514  

First Industrial Realty Trust Inc.

    268,034       15,607,620  

Industrial Logistics Properties Trust

    134,371       3,774,481  

Lexington Realty Trust

    568,860       8,288,290  

Monmouth Real Estate Investment Corp.

    197,006       3,713,563  
Security   Shares     Value  
Industrial REITs (continued)  

Plymouth Industrial REIT Inc.

    61,326     $ 1,567,493  

Prologis Inc.

    1,537,574       222,886,727  

Rexford Industrial Realty Inc.

    287,287       19,305,686  

STAG Industrial Inc.

    338,005       14,713,358  

Terreno Realty Corp.

    143,975       10,528,892  
   

 

 

 
      376,556,442  
Office REITs — 9.0%  

Alexandria Real Estate Equities Inc.

    321,478       65,626,519  

Boston Properties Inc.

    325,329       36,970,387  

Brandywine Realty Trust

    352,662       4,672,771  

CIM Commercial Trust Corp.

    36,262       306,414  

City Office REIT Inc.

    89,312       1,694,249  

Columbia Property Trust Inc.

    237,152       4,546,204  

Corporate Office Properties Trust

    234,461       6,358,582  

Cousins Properties Inc.

    308,803       12,231,687  

Douglas Emmett Inc.

    346,530       11,324,600  

Easterly Government Properties Inc.

    174,390       3,667,422  

Franklin Street Properties Corp., Class C

    213,058       958,761  

Highwoods Properties Inc.

    214,150       9,602,486  

Hudson Pacific Properties Inc.

    309,130       7,960,097  

JBG SMITH Properties

    258,466       7,459,329  

Kilroy Realty Corp.

    241,836       16,294,910  

Mack-Cali Realty Corp.(a)

    181,656       3,304,323  

Office Properties Income Trust

    99,581       2,551,265  

Paramount Group Inc.

    386,093       3,274,069  

Piedmont Office Realty Trust Inc., Class A

    257,787       4,578,297  

SL Green Realty Corp.

    139,399       9,767,688  

Vornado Realty Trust

    365,537       15,582,842  
   

 

 

 
        228,732,902  
Residential REITs — 19.7%  

American Campus Communities Inc.

    285,207       15,321,320  

American Homes 4 Rent, Class A

    589,338       23,927,123  

Apartment Income REIT Corp.

    325,536       17,451,985  

Apartment Investment & Management Co., Class A

    310,213       2,351,414  

AvalonBay Communities Inc.

    290,545       68,766,191  

Bluerock Residential Growth REIT Inc., Class A

    54,917       743,027  

BRT Apartments Corp.

    24,423       486,018  

Camden Property Trust

    202,705       33,061,185  

Centerspace

    29,059       2,941,933  

Equity LifeStyle Properties Inc.

    362,065       30,598,113  

Equity Residential

    768,152       66,368,333  

Essex Property Trust Inc.

    135,050       45,907,546  

Independence Realty Trust Inc.

    218,566       5,164,715  

Invitation Homes Inc.

    1,201,494       49,561,627  

Mid-America Apartment Communities Inc.

    240,437       49,099,640  

NexPoint Residential Trust Inc.

    46,223       3,273,513  

Preferred Apartment Communities Inc., Class A

    107,698       1,358,072  

Sun Communities Inc.

    238,712       46,782,778  

UDR Inc.

    615,364       34,171,163  

UMH Properties Inc.

    87,753       2,100,807  
   

 

 

 
      499,436,503  
Retail REITs — 13.3%  

Acadia Realty Trust

    179,588       3,839,592  

Agree Realty Corp.

    140,796       10,004,964  

Alexander’s Inc.

    4,444       1,238,898  

American Finance Trust Inc.

    244,897       2,027,747  

Brixmor Property Group Inc.

    616,674       14,454,839  

Federal Realty Investment Trust

    160,796       19,351,799  

Getty Realty Corp.

    79,790       2,562,855  
 

 

 

C H E D U L E   O F  N V E S T M E N T S

  11


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core U.S. REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Retail REITs (continued)            

Kimco Realty Corp.

    1,210,473     $ 27,356,690  

Kite Realty Group Trust

    448,520       9,104,956  

Macerich Co. (The)

    442,677       8,008,027  

National Retail Properties Inc.

    363,909       16,506,912  

NETSTREIT Corp.

    82,772       2,006,393  

Phillips Edison & Co. Inc.

    39,645       1,194,900  

Realty Income Corp.

    811,923       57,995,660  

Regency Centers Corp.

    351,842       24,773,195  

Retail Opportunity Investments Corp.

    247,151       4,391,873  

Retail Value Inc.

    36,018       225,473  

RPT Realty

    167,908       2,231,497  

Saul Centers Inc.

    24,893       1,155,035  

Seritage Growth Properties, Class A(a)

    77,236       1,189,434  

Simon Property Group Inc.

    679,866       99,654,758  

SITE Centers Corp.

    359,725       5,716,030  

Spirit Realty Capital Inc.

    247,378       12,104,206  

Tanger Factory Outlet Centers Inc.

    211,557       3,554,158  

Urban Edge Properties

    239,446       4,197,488  

Urstadt Biddle Properties Inc., Class A

    62,143       1,220,489  

Whitestone REIT

    89,652       823,005  
   

 

 

 
        336,890,873  
Specialized REITs — 24.7%            

CoreSite Realty Corp.

    91,200       12,992,352  

CubeSmart

    418,268       23,008,923  

CyrusOne Inc.

    258,231       21,180,107  

Digital Realty Trust Inc.

    585,020       92,322,006  

EPR Properties

    154,380       7,751,420  

Equinix Inc.

    186,398       156,028,174  

Extra Space Storage Inc.

    273,306       53,942,405  

Farmland Partners Inc.

    59,184       665,228  

Four Corners Property Trust Inc.

    156,773       4,546,417  

Gaming and Leisure Properties Inc.

    459,336       22,273,203  

GEO Group Inc. (The)

    200,223       1,637,824  

Gladstone Land Corp.

    59,305       1,313,013  

Iron Mountain Inc.

    596,966       27,245,528  

 

Security   Shares     Value  
Specialized REITs (continued)            

Lamar Advertising Co., Class A

    179,523     $ 20,322,004  

Life Storage Inc.

    162,073       21,686,988  

National Storage Affiliates Trust

    168,279       10,510,706  

Outfront Media Inc.

    301,741       7,510,333  

Public Storage

    314,274       104,395,537  

Safehold Inc.(b)

    37,190       2,778,093  

VICI Properties Inc.

    1,223,378       35,906,144  
   

 

 

 
      628,016,405  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $2,156,405,627)

 

    2,531,525,673  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 0.4%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(c)(d)(e)

    2,465,185       2,466,418  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(c)(d)

    6,630,000       6,630,000  
   

 

 

 
      9,096,418  
   

 

 

 

Total Short -Term Investments — 0.4%
(Cost: $9,096,418)

 

    9,096,418  
   

 

 

 

Total Investments in Securities — 100.1%
(Cost: $2,165,502,045)

 

    2,540,622,091  

Other Assets, Less Liabilities — (0.1)%

 

    (1,437,098
   

 

 

 

Net Assets — 100.0%

 

  $   2,539,184,993  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income      Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency

                          

Shares

   $ 129,227      $ 2,337,275 (a)     $      $ (96    $ 12      $ 2,466,418        2,465,185      $ 1,003 (b)     $  

BlackRock Cash Funds: Treasury, SL Agency Shares

     2,320,000        4,310,000 (a)                            6,630,000        6,630,000        140         
              

 

 

    

 

 

       

 

 

    

 

 

 
            $ (96    $ 12      $ 9,096,418         $ 1,143      $  
              

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

12  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Core U.S. REIT ETF

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

                 

Dow Jones U.S. Real Estate Index

     172          12/17/21        $ 7,312        $ 284,993  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 284,993  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 527,063  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ 41,136  
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 5,812,140  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 2,531,525,673      $      $      $ 2,531,525,673  

Money Market Funds

     9,096,418                      9,096,418  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,540,622,091      $             —      $             —      $ 2,540,622,091  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 284,993      $      $      $ 284,993  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E   O F  N V E S T M E N T S

  13


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® Global REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   

Australia — 4.0%

   

APN Industria REIT

    515,294     $ 1,311,223  

Arena REIT

    639,811       2,177,532  

BWP Trust

    972,492       3,115,792  

Centuria Industrial REIT

    911,561       2,514,335  

Centuria Office REIT

    920,345       1,670,243  

Charter Hall Long Wale REIT

    1,064,854       3,906,534  

Charter Hall Retail REIT

    968,860       3,005,753  

Charter Hall Social Infrastructure REIT

    656,614       1,889,696  

Cromwell Property Group

    2,833,542       1,734,100  

Dexus

    2,158,386       17,704,769  

GPT Group (The)

    3,845,038       15,011,205  

Growthpoint Properties Australia Ltd.

    555,771       1,744,195  

HomeCo Daily Needs REIT

    797,756       864,161  

Hotel Property Investments

    346,528       935,557  

Mirvac Group

    7,893,288       16,845,576  

National Storage REIT

    2,385,231       4,318,521  

Scentre Group

    10,405,754       23,734,328  

Shopping Centres Australasia Property Group

    2,250,446       4,727,862  

Stockland

    4,786,512       16,498,822  

Vicinity Centres

    7,595,507       9,919,609  

Waypoint REIT

    1,569,914       3,236,790  
   

 

 

 
        136,866,603  
Belgium — 1.3%            

Aedifica SA

    72,030       9,605,207  

Ascencio

    10,287       592,846  

Befimmo SA

    43,579       1,783,357  

Cofinimmo SA

    60,205       9,713,108  

Intervest Offices & Warehouses NV

    48,006       1,399,976  

Leasinvest Real Estate SCA

    8,437       778,303  

Montea NV

    24,657       3,659,848  

Retail Estates NV

    20,401       1,633,728  

Warehouses De Pauw CVA

    282,500       12,864,064  

Xior Student Housing NV

    40,621       2,404,243  
   

 

 

 
      44,434,680  
Canada — 3.2%            

Allied Properties REIT

    252,613       8,730,008  

Artis REIT

    188,798       1,787,906  

Boardwalk REIT

    76,022       3,279,585  

Canadian Apartment Properties REIT

    342,611       16,729,139  

Choice Properties REIT

    517,980       6,231,999  

Cominar REIT

    335,286       3,129,083  

Crombie REIT

    191,807       2,864,086  

Dream Industrial REIT

    404,963       5,546,318  

Dream Office REIT

    73,933       1,394,906  

First Capital Real Estate Investment Trust

    438,920       6,270,286  

Granite REIT

    123,414       10,003,953  

H&R Real Estate Investment Trust

    564,600       7,760,057  

InterRent REIT

    259,053       3,794,951  

Killam Apartment REIT

    216,139       3,971,397  

NorthWest Healthcare Properties REIT

    374,818       4,021,964  

RioCan REIT

    635,359       11,443,239  

SmartCentres Real Estate Investment Trust

    262,426       6,613,661  

Summit Industrial Income REIT

    314,601       6,009,347  
   

 

 

 
      109,581,885  
China — 0.0%            

Yuexiu REIT

    2,569,000       1,119,325  
   

 

 

 
Security   Shares     Value  

France — 1.7%

   

Carmila SA

    81,019     $ 1,227,719  

Covivio

    100,654       8,718,034  

Gecina SA

    103,385         14,467,561  

ICADE

    68,285       5,355,037  

Klepierre SA

    363,617       8,656,362  

Mercialys SA

    127,195       1,381,742  

Unibail-Rodamco-Westfield(a)

    270,465       19,312,470  
   

 

 

 
      59,118,925  
Germany — 0.3%            

alstria office REIT-AG

    372,077       6,954,800  

Hamborner REIT AG

    141,987       1,593,512  
   

 

 

 
      8,548,312  
Hong Kong — 1.3%            

Champion REIT

    4,003,000       2,099,693  

Hui Xian Real Estate Investment Trust(b)

    4,993,000       1,153,253  

Link REIT

    4,170,600       36,949,174  

Prosperity REIT

    2,470,000       970,609  

Sunlight REIT

    2,159,000       1,248,699  
   

 

 

 
      42,421,428  
Ireland — 0.1%            

Hibernia REIT PLC

    1,340,883       1,953,076  

Irish Residential Properties REIT PLC

    898,567       1,693,152  
   

 

 

 
      3,646,228  
Italy — 0.0%            

Immobiliare Grande Distribuzione SIIQ SpA(a)

    141,586       620,824  
   

 

 

 

Japan — 7.6%

   

Activia Properties Inc.

    1,389       5,694,444  

Advance Residence Investment Corp.

    2,589       8,495,600  

AEON REIT Investment Corp.

    3,146       4,252,896  

Comforia Residential REIT Inc.

    1,258       3,664,453  

Daiwa House REIT Investment Corp.

    4,238       12,161,503  

Daiwa Office Investment Corp.

    541       3,492,099  

Daiwa Securities Living Investments Corp.

    3,920       3,960,047  

Frontier Real Estate Investment Corp.

    972       4,300,265  

Fukuoka REIT Corp.

    1,445       2,144,689  

Global One Real Estate Investment Corp.

    1,929       1,986,833  

GLP J-REIT

    8,496       13,857,481  

Hankyu Hanshin REIT Inc.

    1,330       1,961,543  

Heiwa Real Estate REIT Inc.

    1,829       2,553,572  

Hoshino Resorts REIT Inc.

    444       2,899,122  

Hulic Reit Inc.

    2,395       3,628,393  

Ichigo Office REIT Investment Corp.

    2,354       1,783,173  

Industrial & Infrastructure Fund Investment Corp.

    3,817       6,998,649  

Invesco Office J-Reit Inc.

    5,698       1,133,938  

Invincible Investment Corp.

    9,809       3,877,974  

Japan Excellent Inc.

    2,494       3,011,324  

Japan Hotel REIT Investment Corp.

    9,033       5,455,106  

Japan Logistics Fund Inc.

    1,732       5,174,345  

Japan Metropolitan Fund Invest

    13,770       12,648,007  

Japan Prime Realty Investment Corp.

    1,766       6,477,526  

Japan Real Estate Investment Corp.

    2,606       15,972,781  

Kenedix Office Investment Corp.

    762       4,824,784  

Kenedix Residential Next Investment Corp.

    1,960       3,769,528  

Kenedix Retail REIT Corp.

    1,158       2,954,693  

LaSalle Logiport REIT

    3,584       5,962,065  

Mitsubishi Estate Logistics REIT Investment Corp.

    755       3,264,741  

Mitsui Fudosan Logistics Park Inc.

    1,009       5,364,808  

Mori Hills REIT Investment Corp.

    3,183       4,315,639  
 

 

 

14  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Global REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Japan (continued)

   

Mori Trust Sogo REIT Inc.

    1,980     $ 2,558,039  

Nippon Accommodations Fund Inc.

    930       5,181,399  

Nippon Building Fund Inc.

    2,969       19,289,425  

Nippon Prologis REIT Inc.

    4,473       14,939,971  

Nippon REIT Investment Corp.

    863       3,317,552  

Nomura Real Estate Master Fund Inc.

    8,985       13,454,734  

NTT UD REIT Investment Corp.

    2,541       3,373,021  

Orix JREIT Inc.

    5,275       8,751,777  

Sekisui House Reit Inc.

    8,106       6,128,129  

SOSiLA Logistics REIT Inc.

    1,223       1,839,027  

Starts Proceed Investment Corp.

    439       922,286  

Tokyu REIT Inc.

    1,756       2,946,214  

United Urban Investment Corp.

    5,966       7,436,970  
   

 

 

 
        258,180,565  
Malaysia — 0.1%            

Axis Real Estate Investment Trust

    2,295,300       1,058,687  

IGB REIT

    3,512,600       1,425,059  

Sunway REIT

    4,026,700       1,422,081  
   

 

 

 
      3,905,827  
Mexico — 0.4%            

Concentradora Fibra Danhos SA de CV(b)

    470,315       568,362  

Fibra Uno Administracion SA de CV

    6,214,913       6,176,273  

Macquarie Mexico Real Estate Management SA de CV(c)

    1,457,750       1,738,991  

PLA Administradora Industrial S. de RL de CV(b)

    1,588,009       2,224,508  

Prologis Property Mexico SA de CV

    907,548       2,089,018  
   

 

 

 
      12,797,152  
Netherlands — 0.2%            

Eurocommercial Properties NV

    102,157       2,384,307  

NSI NV

    38,348       1,538,261  

Vastned Retail NV

    35,402       1,008,920  

Wereldhave NV

    82,150       1,275,217  
   

 

 

 
      6,206,705  
New Zealand — 0.2%            

Goodman Property Trust

    2,196,578       3,916,794  

Kiwi Property Group Ltd.

    3,168,540       2,657,048  

Stride Property Group

    866,777       1,478,295  
   

 

 

 
      8,052,137  
Philippines — 0.0%            

AREIT Inc., NVS

    849,100       720,918  
   

 

 

 

Saudi Arabia — 0.1%

   

Al Maather REIT Fund

    83,335       208,843  

Al Rajhi REIT

    226,371       736,284  

Alahli REIT Fund 1

    88,881       329,373  

Al-Jazira Reit Fund, NVS

    24,872       159,806  

Alkhabeer REIT

    105,504       257,649  

Jadwa REIT Saudi Fund

    279,131       1,087,977  

Musharaka Real Estate Income Fund, NVS

    153,043       407,552  

Riyad REIT Fund

    299,920       826,262  

Sedco Capital REIT Fund

    66,588       219,066  

Swicorp Wabel REIT, NVS(a)

    165,441       343,594  

Taleem REIT, NVS

    48,521       180,071  
   

 

 

 
      4,756,477  
Singapore — 3.3%            

AIMS APAC REIT

    1,108,200       1,183,395  

ARA LOGOS Logistics Trust

    2,560,400       1,711,549  

Ascendas REIT

    6,833,314       15,651,233  

Ascott Residence Trust

    3,605,632       2,757,072  
Security   Shares     Value  

Singapore (continued)

   

CapitaLand China Trust(b)

    2,081,130     $ 1,884,891  

CapitaLand Integrated Commercial Trust

    9,567,826       15,236,335  

CDL Hospitality Trusts

    1,584,700       1,410,147  

Cromwell European Real Estate Investment Trust

    635,500       1,946,791  

ESR-REIT

    5,367,500       1,910,567  

Far East Hospitality Trust

    1,941,000       929,036  

First REIT(b)

    2,261,400       444,398  

Fortune REIT

    2,748,000       2,850,362  

Frasers Centrepoint Trust

    2,163,970       3,869,604  

Frasers Logistics & Commercial Trust

    5,745,700       6,469,846  

Keppel DC REIT(b)

    2,479,133       4,389,751  

Keppel Pacific Oak US REIT

    1,691,200       1,344,504  

Keppel REIT

    4,273,500       3,576,759  

Lendlease Global Commercial REIT

    1,768,800       1,148,496  

Manulife US Real Estate Investment Trust

    2,897,400       2,061,462  

Mapletree Commercial Trust

    4,444,691       7,189,387  

Mapletree Industrial Trust

    3,724,210       7,602,484  

Mapletree Logistics Trust

    5,757,917       8,634,190  

Mapletree North Asia Commercial Trust(b)

    4,672,700       3,540,628  

OUE Commercial Real Estate Investment Trust

    4,290,600       1,431,791  

Parkway Life REIT

    776,200       2,682,308  

Prime U.S. REIT

    1,276,900       1,103,313  

Sasseur Real Estate Investment Trust

    1,072,400       675,966  

SPH REIT

    1,886,500       1,365,559  

Starhill Global REIT

    2,835,400       1,357,813  

Suntec REIT

    4,263,400       4,720,177  
   

 

 

 
        111,079,814  
South Africa — 0.5%            

Attacq Ltd.(a)(b)

    1,415,869       608,436  

Emira Property Fund Ltd.

    668,333       414,357  

Equites Property Fund Ltd.

    1,318,392       1,763,648  

Growthpoint Properties Ltd.

    6,999,947       5,951,832  

Hyprop Investments Ltd.

    616,957       1,197,706  

Investec Property Fund Ltd.

    1,128,155       784,556  

Redefine Properties Ltd.(a)

    10,910,701       3,221,187  

SA Corporate Real Estate Ltd.

    5,185,645       724,658  

Stor-Age Property REIT Ltd.

    708,917       652,577  

Vukile Property Fund Ltd.

    1,773,918       1,418,359  
   

 

 

 
      16,737,316  
Spain — 0.4%            

Inmobiliaria Colonial Socimi SA

    704,009       6,844,347  

Lar Espana Real Estate Socimi SA

    120,513       732,786  

Merlin Properties Socimi SA

    679,477       7,358,517  
   

 

 

 
      14,935,650  
Thailand — 0.1%            

WHA Premium Growth Freehold & Leasehold REIT, Class F(b)

    3,470,302       1,380,486  
   

 

 

 

Turkey — 0.1%

   

AKIS Gayrimenkul Yatirimi AS(a)

    527,142       100,654  

Akmerkez Gayrimenkul Yatirim Ortakligi AS

    13,698       54,869  

Emlak Konut Gayrimenkul Yatirim Ortakligi AS

    3,813,775       781,479  

Halk Gayrimenkul Yatirim Ortakligi AS(b)

    449,123       122,261  

Is Gayrimenkul Yatirim Ortakligi AS(a)

    937,517       186,966  

Ozak Gayrimenkul Yatirim Ortakligi(a)

    204,709       109,585  

Torunlar Gayrimenkul Yatirim Ortakligi AS(a)

    310,932       124,728  
   

 

 

 
      1,480,542  
United Kingdom — 5.1%            

Assura PLC

    5,279,229       5,266,947  
 

 

 

C H E D U L E   O F  N V E S T M E N T S

  15


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Global REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

United Kingdom (continued)

   

Big Yellow Group PLC

    339,995     $ 6,881,793  

BMO Commercial Property Trust Ltd.

    1,040,761       1,458,518  

BMO Real Estate Investments Ltd.

    482,385       562,681  

British Land Co. PLC (The)

    1,856,316       12,533,796  

Capital & Counties Properties PLC

    1,478,243       3,334,066  

Civitas Social Housing PLC

    1,251,431       1,608,175  

Custodian REIT PLC

    779,578       1,037,019  

Derwent London PLC

    202,427       9,363,419  

Empiric Student Property PLC(a)

    1,179,302       1,428,332  

GCP Student Living PLC

    915,360       2,635,565  

Great Portland Estates PLC

    508,750       5,087,224  

Hammerson PLC(b)

    8,473,572       3,720,544  

Impact Healthcare REIT PLC

    528,388       854,735  

Land Securities Group PLC

    1,429,823       13,432,441  

LondonMetric Property PLC

    1,774,025       6,344,877  

LXI REIT PLC

    1,406,314       2,821,716  

NewRiver REIT PLC

    631,359       673,093  

Picton Property Income Ltd. (The)

    1,093,700       1,453,377  

Primary Health Properties PLC

    2,667,840       5,603,092  

PRS REIT PLC (The)

    930,448       1,298,833  

Regional REIT Ltd.(c)

    739,793       888,673  

Safestore Holdings PLC

    416,597       6,853,012  

Schroder REIT Ltd.

    987,532       678,447  

Segro PLC

    2,400,455       42,426,947  

Shaftesbury PLC

    568,200       4,849,665  

Standard Life Investment Property Income Trust Ltd.

    798,184       802,881  

Target Healthcare REIT PLC

    1,028,306       1,677,488  

Triple Point Social Housing REIT PLC(c)

    733,526       979,775  

Tritax Big Box REIT PLC

    3,749,748       11,539,602  

UK Commercial Property REIT Ltd.

    1,480,046       1,536,659  

UNITE Group PLC (The)

    639,661       9,550,642  

Workspace Group PLC

    268,363       3,018,946  
   

 

 

 
        172,202,980  
United States — 69.7%            

Acadia Realty Trust

    173,524       3,709,943  

Agree Realty Corp.

    135,271       9,612,357  

Alexander & Baldwin Inc.

    144,527       3,545,247  

Alexandria Real Estate Equities Inc.

    308,870       63,052,722  

American Assets Trust Inc.

    99,578       3,767,036  

American Campus Communities Inc.

    274,123       14,725,887  

American Finance Trust Inc.

    236,211       1,955,827  

American Homes 4 Rent, Class A

    566,220       22,988,532  

Americold Realty Trust

    522,597       15,400,934  

Apartment Income REIT Corp

    312,824       16,770,495  

Apartment Investment & Management Co., Class A

    297,072       2,251,806  

Apple Hospitality REIT Inc.

    426,575       6,701,493  

Armada Hoffler Properties Inc.

    119,698       1,641,060  

AvalonBay Communities Inc.

    279,141       66,067,092  

Boston Properties Inc.

    312,568       35,520,227  

Brandywine Realty Trust

    338,167       4,480,713  

Brixmor Property Group Inc.

    592,736       13,893,732  

Broadstone Net Lease Inc.

    307,671       8,180,972  

Camden Property Trust

    194,747       31,763,236  

CareTrust REIT Inc.

    189,623       3,934,677  

Centerspace

    28,096       2,844,439  

Columbia Property Trust Inc.

    229,583       4,401,106  

Community Healthcare Trust Inc.

    47,093       2,252,929  

CoreSite Realty Corp.

    87,682       12,491,178  

Corporate Office Properties Trust

    224,801       6,096,603  

Cousins Properties Inc.

    297,005       11,764,368  
Security   Shares     Value  

United States (continued)

   

CubeSmart

    401,850     $ 22,105,768  

CyrusOne Inc.

    248,094       20,348,670  

DiamondRock Hospitality Co.(a)

    417,195       3,771,443  

Digital Realty Trust Inc.

    562,063       88,699,162  

DigitalBridge Group Inc.(a)

    965,656       6,469,895  

Diversified Healthcare Trust

    473,348       1,722,987  

Douglas Emmett Inc.

    333,369       10,894,499  

Duke Realty Corp.

    749,421       42,147,437  

Easterly Government Properties Inc.

    168,177       3,536,762  

EastGroup Properties Inc.

    79,074       15,639,256  

Empire State Realty Trust Inc., Class A

    285,215       2,760,881  

EPR Properties

    148,389       7,450,612  

Equinix Inc.

    179,074       149,897,473  

Equity Commonwealth(a)

    233,431       6,052,866  

Equity LifeStyle Properties Inc.

    347,858       29,397,480  

Equity Residential

    738,023       63,765,187  

Essential Properties Realty Trust Inc.

    232,931       6,939,014  

Essex Property Trust Inc.

    129,745       44,104,218  

Extra Space Storage Inc.

    262,572       51,823,836  

Federal Realty Investment Trust

    154,482       18,591,909  

First Industrial Realty Trust Inc.

    257,586       14,999,233  

Four Corners Property Trust Inc.

    152,366       4,418,614  

Gaming and Leisure Properties Inc.

    441,308       21,399,025  

Getty Realty Corp.

    79,081       2,540,082  

Global Net Lease Inc.

    200,879       3,218,082  

Healthcare Realty Trust Inc.

    289,265       9,563,101  

Healthcare Trust of America Inc., Class A

    435,682       14,547,422  

Healthpeak Properties Inc.

    1,079,364       38,328,216  

Highwoods Properties Inc.

    205,569       9,217,714  

Host Hotels & Resorts Inc.(a)

    1,415,397       23,821,131  

Hudson Pacific Properties Inc.

    296,617       7,637,888  

Independence Realty Trust Inc.

    209,588       4,952,564  

Industrial Logistics Properties Trust

    129,572       3,639,677  

Innovative Industrial Properties Inc.

    47,058       12,380,489  

Invitation Homes Inc.

    1,154,355       47,617,144  

JBG SMITH Properties

    248,414       7,169,228  

Kilroy Realty Corp.

    232,387       15,658,236  

Kimco Realty Corp.

    1,162,981       26,283,371  

Kite Realty Group Trust

    432,416       8,778,054  

Lexington Realty Trust

    546,591       7,963,831  

Life Storage Inc.

    155,715       20,836,224  

LTC Properties Inc.

    77,639       2,473,578  

Macerich Co. (The)

    425,310       7,693,858  

Mack-Cali Realty Corp.(a)

    175,185       3,186,615  

Medical Properties Trust Inc.

    1,183,010       25,233,603  

Mid-America Apartment Communities Inc.

    230,998       47,172,101  

Monmouth Real Estate Investment Corp.

    189,979       3,581,104  

National Health Investors Inc.

    87,062       4,682,194  

National Retail Properties Inc.

    349,691       15,861,984  

National Storage Affiliates Trust

    161,474       10,085,666  

NexPoint Residential Trust Inc.

    44,387       3,143,487  

Office Properties Income Trust

    95,506       2,446,864  

Omega Healthcare Investors Inc.

    477,774       14,027,445  

Paramount Group Inc.

    372,373       3,157,723  

Park Hotels & Resorts Inc.(a)

    469,726       8,704,023  

Pebblebrook Hotel Trust(b)

    258,807       5,812,805  

Physicians Realty Trust

    428,863       8,152,686  

Piedmont Office Realty Trust Inc., Class A

    247,187       4,390,041  

Prologis Inc.

    1,477,253       214,142,595  

PS Business Parks Inc.

    40,107       7,127,014  
 

 

 

16  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Global REIT ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

United States (continued)

   

Public Storage

    301,949     $ 100,301,419  

Realty Income Corp.

    780,065       55,720,043  

Regency Centers Corp.

    338,039       23,801,326  

Retail Opportunity Investments Corp.

    236,673       4,205,679  

Rexford Industrial Realty Inc.

    276,012       18,548,006  

RLJ Lodging Trust

    329,535       4,751,895  

RPT Realty

    160,818       2,137,271  

Ryman Hospitality Properties Inc.(a)

    107,196       9,169,546  

Sabra Health Care REIT Inc.

    438,852       6,209,756  

Safehold Inc.(b)

    35,677       2,665,072  

Service Properties Trust

    327,329       3,525,333  

Simon Property Group Inc.

    653,186       95,744,004  

SITE Centers Corp.

    345,004       5,482,113  

SL Green Realty Corp.

    134,166       9,401,012  

Spirit Realty Capital Inc.

    237,949       11,642,844  

STAG Industrial Inc.

    324,877       14,141,896  

STORE Capital Corp.

    489,020       16,788,057  

Summit Hotel Properties Inc.(a)

    206,882       2,068,820  

Sun Communities Inc.

    229,337       44,945,465  

Sunstone Hotel Investors Inc.(a)

    433,630       5,350,994  

Tanger Factory Outlet Centers Inc.

    202,802       3,407,074  

Terreno Realty Corp.

    138,521       10,130,041  

UDR Inc.

    591,232       32,831,113  

Universal Health Realty Income Trust

    25,557       1,455,982  

Urban Edge Properties

    230,877       4,047,274  

Ventas Inc.

    786,408       41,970,595  

VEREIT Inc.

    458,118       23,043,335  

VICI Properties Inc.

    1,175,384       34,497,520  

Vornado Realty Trust

    351,263       14,974,342  

Washington REIT

    168,555       4,272,869  

Welltower Inc.

    846,573       68,064,469  

WP Carey Inc.

    365,802       28,206,992  

Xenia Hotels & Resorts Inc.(a)

    227,255       4,045,139  
   

 

 

 
        2,369,525,974  
   

 

 

 

Total Common Stocks — 99.7%
(Cost: $2,867,032,295)

      3,388,320,753  
   

 

 

 

Preferred Stocks

 

Bermuda — 0.0%            

Brookfield Property Partners LP, 6.25%

    4,436       110,146  
   

 

 

 

Total Preferred Stocks — 0.0%
(Cost: $109,587)

      110,146  
   

 

 

 
Security   Shares     Value  

Rights

 

Thailand — 0.0%            

WHA Premium Growth Freehold & Leasehold REIT, NVS (Expires 11/18/21)(a)

    407,362     $ 3,683  
   

 

 

 

Total Rights — 0.0%
(Cost: $0)

      3,683  
   

 

 

 

Short-Term Investments

 

Money Market Funds — 0.5%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(d)(e)(f)

    11,511,770       11,517,526  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(d)(e)

    5,240,000       5,240,000  
   

 

 

 
      16,757,526  
   

 

 

 

Total Short-Term Investments — 0.5%
(Cost: $16,752,104)

 

    16,757,526  
   

 

 

 

Total Investments in Securities — 100.2%
(Cost: $2,883,893,986)

 

    3,405,192,108  

Other Assets, Less Liabilities — (0.2)%

 

    (5,780,118
   

 

 

 

Net Assets — 100.0%

    $   3,399,411,990  
   

 

 

 

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

C H E D U L E   O F  N V E S T M E N T S

  17


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Global REIT ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer    Value at
04/30/21
     Purchases
at Cost
     Proceeds
from Sales
     Net Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
     Value at
10/31/21
     Shares
Held at
10/31/21
     Income      Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 9,189,362      $ 2,327,473 (a)     $      $  2,306      $ (1,615    $ 11,517,526        11,511,770      $ 72,622 (b)     $  —  

BlackRock Cash Funds: Treasury, SL Agency Shares

     6,480,000               (1,240,000 )(a)                     5,240,000        5,240,000        175         
              

 

 

    

 

 

       

 

 

    

 

 

 
            $ 2,306      $ (1,615    $ 16,757,526         $ 72,797      $  
              

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

SPI 200 Index

     6        12/16/21      $ 825      $ 1,881  

Dow Jones U.S. Real Estate Index

     174        12/17/21        7,397        239,836  
           

 

 

 
            $  241,717  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $  241,717  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 2,098,858  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (418,193
  

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 11,894,517  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

18  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® Global REIT ETF

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
     Level 1      Level 2      Level 3      Total  

 

 

Investments

           

Assets

           

Common Stocks

   $ 2,643,976,795      $ 744,343,958      $      $ 3,388,320,753  

Preferred Stocks

     110,146                      110,146  

Rights

            3,683               3,683  

Money Market Funds

     16,757,526                      16,757,526  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $  2,660,844,467      $  744,347,641      $      $ 3,405,192,108  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 239,836      $ 1,881      $             —      $ 241,717  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

C H E D U L E   O F  N V E S T M E N T S

  19


Schedule of Investments  (unaudited)

October 31, 2021

  

iShares® International Developed Real Estate ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Australia — 9.2%            

Abacus Property Group

    162,488     $ 438,818  

APN Industria REIT

    87,542       222,760  

Arena REIT

    109,995       374,357  

Aventus Group

    142,752       368,221  

BWP Trust

    166,041       531,983  

Centuria Industrial REIT

    158,269       436,549  

Centuria Office REIT

    158,193       287,089  

Charter Hall Long Wale REIT

    185,283       679,731  

Charter Hall Retail REIT

    166,566       516,748  

Charter Hall Social Infrastructure REIT

    112,779       324,571  

Cromwell Property Group

    483,064       295,630  

Dexus

    372,105       3,052,296  

GPT Group (The)

    662,718       2,587,282  

Growthpoint Properties Australia Ltd.

    95,535       299,821  

Home Consortium Ltd.

    47,136       282,246  

HomeCo Daily Needs REIT

    130,397       141,251  

Hotel Property Investments

    59,163       159,728  

Ingenia Communities Group

    102,715       507,843  

Lifestyle Communities Ltd.

    32,384       534,672  

Mirvac Group

    1,360,749       2,904,062  

National Storage REIT

    396,144       717,229  

Scentre Group

    1,793,975       4,091,851  

Shopping Centres Australasia Property Group

    370,813       779,025  

Stockland

    825,129       2,844,171  

Vicinity Centres

    1,305,468       1,704,920  

Waypoint REIT

    274,187       565,309  
   

 

 

 
        25,648,163  
Austria — 0.2%            

CA Immobilien Anlagen AG

    14,457       620,335  
   

 

 

 
Belgium — 2.9%            

Aedifica SA

    12,449       1,660,075  

Ascencio

    1,580       91,056  

Befimmo SA

    7,610       311,419  

Cofinimmo SA

    10,400       1,677,873  

Intervest Offices & Warehouses NV

    7,986       232,892  

Leasinvest Real Estate SCA

    1,405       129,610  

Montea NV

    4,251       630,978  

Retail Estates NV

    3,474       278,201  

Shurgard Self Storage SA

    8,553       524,025  

Warehouses De Pauw CVA

    48,671       2,216,307  

Xior Student Housing NV

    6,919       409,516  
   

 

 

 
      8,161,952  
Canada — 7.4%            

Allied Properties REIT

    43,159       1,491,524  

Artis REIT

    31,990       302,943  

Boardwalk REIT

    13,229       570,698  

Canadian Apartment Properties REIT

    59,061       2,883,853  

Chartwell Retirement Residences(a)

    73,849       712,473  

Choice Properties REIT

    88,245       1,061,707  

Cominar REIT

    58,301       544,099  

Crombie REIT

    33,319       497,524  

Dream Industrial REIT

    68,709       941,029  

Dream Office REIT

    12,821       241,896  

First Capital Real Estate Investment Trust

    74,345       1,062,071  

Granite REIT

    21,310       1,727,391  

H&R Real Estate Investment Trust

    96,656       1,328,473  

InterRent REIT

    44,867       657,271  
Security   Shares     Value  

Canada (continued)

   

Killam Apartment REIT

    36,932     $ 678,599  

NorthWest Healthcare Properties REIT

    63,514       681,534  

RioCan REIT

    109,423       1,970,781  

SmartCentres Real Estate Investment Trust

    44,464       1,120,582  

Summit Industrial Income REIT

    54,016       1,031,786  

Tricon Residential Inc.

    81,866       1,191,344  
   

 

 

 
        20,697,578  
Finland — 0.6%            

Citycon OYJ

    26,863       220,815  

Kojamo OYJ

    67,022       1,501,598  
   

 

 

 
      1,722,413  
France — 3.6%            

Carmila SA

    14,234       215,695  

Covivio

    17,205       1,490,192  

Gecina SA

    17,816       2,493,148  

ICADE

    11,170       875,972  

Klepierre SA

    62,709       1,492,867  

Mercialys SA

    21,364       232,081  

Unibail-Rodamco-Westfield(a)(b)

    46,629       3,329,529  
   

 

 

 
      10,129,484  
Germany — 8.9%            

ADLER Group SA(c)

    31,622       428,791  

alstria office REIT-AG

    61,140       1,142,819  

Aroundtown SA

    414,736       2,882,212  

Deutsche EuroShop AG

    17,907       364,482  

Deutsche Wohnen SE

    20,347       1,042,251  

Grand City Properties SA

    33,942       869,379  

Hamborner REIT AG

    24,524       275,231  

LEG Immobilien SE

    25,200       3,748,324  

Sirius Real Estate Ltd.

    331,338       612,048  

TAG Immobilien AG

    43,386       1,318,113  

TLG Immobilien AG

    2,517       92,090  

Vonovia SE

    198,793       12,059,339  
   

 

 

 
      24,835,079  
Hong Kong — 11.5%            

Champion REIT

    688,000       360,877  

CK Asset Holdings Ltd.

    682,500       4,215,840  

Hang Lung Properties Ltd.

    702,000       1,629,239  

Henderson Land Development Co. Ltd.

    446,000       1,867,482  

Hongkong Land Holdings Ltd.(a)

    400,800       2,213,326  

Hysan Development Co. Ltd.

    210,000       730,094  

Link REIT

    719,100       6,370,822  

New World Development Co. Ltd.

    492,333       2,135,460  

Prosperity REIT

    409,000       160,720  

Sino Land Co. Ltd.

    1,190,800       1,565,169  

Sun Hung Kai Properties Ltd.

    491,000       6,509,836  

Sunlight REIT

    362,000       209,370  

Swire Properties Ltd.

    362,000       970,510  

Wharf Real Estate Investment Co. Ltd.

    566,900       3,201,997  
   

 

 

 
      32,140,742  
Ireland — 0.2%            

Hibernia REIT PLC

    225,703       328,750  

Irish Residential Properties REIT PLC

    150,823       284,193  
   

 

 

 
      612,943  
Israel — 0.6%            

Amot Investments Ltd.

    50,271       384,254  

Azrieli Group Ltd.

    12,697       1,187,466  
   

 

 

 
      1,571,720  
 

 

 

20  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® International Developed Real Estate ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Italy — 0.0%            

Immobiliare Grande Distribuzione SIIQ SpA(b)

    24,163     $ 105,950  
   

 

 

 
Japan — 23.7%            

Activia Properties Inc.

    237       971,622  

Advance Residence Investment Corp.

    443       1,453,670  

Aeon Mall Co. Ltd.

    41,300       605,033  

AEON REIT Investment Corp.

    535       723,236  

Comforia Residential REIT Inc.

    216       629,191  

Daiwa House REIT Investment Corp.

    727       2,086,223  

Daiwa Office Investment Corp.

    93       600,305  

Daiwa Securities Living Investments Corp.

    671       677,855  

Frontier Real Estate Investment Corp.

    166       734,407  

Fukuoka REIT Corp.

    252       374,022  

Global One Real Estate Investment Corp.

    335       345,044  

GLP J-REIT

    1,465       2,389,502  

Hankyu Hanshin REIT Inc.

    225       331,840  

Heiwa Real Estate REIT Inc.

    319       445,374  

Hoshino Resorts REIT Inc.

    76       496,246  

Hulic Co. Ltd.

    143,100       1,375,977  

Hulic Reit Inc.

    407       616,600  

Ichigo Office REIT Investment Corp.

    396       299,973  

Industrial & Infrastructure Fund Investment Corp.

    659       1,208,307  

Invesco Office J-Reit Inc.

    988       196,618  

Invincible Investment Corp.

    1,698       671,302  

Japan Excellent Inc.

    432       521,609  

Japan Hotel REIT Investment Corp.

    1,536       927,604  

Japan Logistics Fund Inc.

    300       896,249  

Japan Metropolitan Fund Invest

    2,375       2,181,483  

Japan Prime Realty Investment Corp.

    304       1,115,044  

Japan Real Estate Investment Corp.

    449       2,752,026  

Kenedix Office Investment Corp.

    130       823,126  

Kenedix Residential Next Investment Corp.

    341       655,821  

Kenedix Retail REIT Corp.

    203       517,964  

LaSalle Logiport REIT

    618       1,028,057  

Mitsubishi Estate Co. Ltd.

    393,600       5,981,533  

Mitsubishi Estate Logistics REIT Investment Corp.

    130       562,141  

Mitsui Fudosan Co. Ltd.

    318,000       7,270,700  

Mitsui Fudosan Logistics Park Inc.

    172       914,516  

Mori Hills REIT Investment Corp.

    548       743,000  

Mori Trust Sogo REIT Inc.

    345       445,719  

Nippon Accommodations Fund Inc.

    159       885,852  

Nippon Building Fund Inc.

    512       3,326,435  

Nippon Prologis REIT Inc.

    772       2,578,506  

Nippon REIT Investment Corp.

    149       572,787  

Nomura Real Estate Holdings Inc.

    38,500       938,606  

Nomura Real Estate Master Fund Inc.

    1,550       2,321,073  

NTT UD REIT Investment Corp.

    439       582,745  

Orix JREIT Inc.

    912       1,513,103  

Sekisui House Reit Inc.

    1,382       1,044,791  

SOSiLA Logistics REIT Inc.

    208       312,770  

Starts Proceed Investment Corp.

    78       163,868  

Sumitomo Realty & Development Co. Ltd.

    136,400       4,929,484  

Tokyo Tatemono Co. Ltd.

    68,400       1,005,371  

Tokyu REIT Inc.

    301       505,017  

United Urban Investment Corp.

    1,019       1,270,243  
   

 

 

 
        66,519,590  
Malta — 0.0%            

BGP Holdings PLC(b)(d)

    6,603,392       76  
   

 

 

 
Security   Shares     Value  
Netherlands — 0.4%            

Eurocommercial Properties NV

    17,391     $ 405,899  

NSI NV

    6,422       257,607  

Vastned Retail NV

    5,992       170,766  

Wereldhave NV

    14,045       218,021  
      1,052,293  
   

 

 

 
New Zealand — 0.8%            

Argosy Property Ltd.

    285,832       319,915  

Goodman Property Trust

    375,379       669,351  

Kiwi Property Group Ltd.

    536,352       449,770  

Precinct Properties New Zealand Ltd.

    425,967       509,920  

Stride Property Group

    145,021       247,334  
   

 

 

 
      2,196,290  
Norway — 0.3%            

Entra ASA(c)

    30,623       764,134  
   

 

 

 
Singapore — 7.9%            

AIMS APAC REIT

    189,300       202,145  

ARA LOGOS Logistics Trust

    437,000       292,121  

Ascendas REIT

    1,177,890       2,697,876  

Ascott Residence Trust

    627,000       479,440  

CapitaLand Integrated Commercial Trust

    1,647,707       2,623,900  

Capitaland Investment Ltd/Singapore(b)

    891,000       2,272,925  

CDL Hospitality Trusts

    280,500       249,603  

City Developments Ltd.

    162,900       884,296  

Cromwell European Real Estate Investment Trust

    108,800       333,298  

ESR-REIT

    916,100       326,087  

Far East Hospitality Trust(a)

    331,400       158,620  

Fortune REIT

    467,000       484,396  

Frasers Centrepoint Trust

    367,149       656,535  

Frasers Logistics & Commercial Trust

    967,800       1,089,774  

Keppel DC REIT(a)

    417,771       739,739  

Keppel Pacific Oak US REIT

    289,000       229,755  

Keppel REIT(a)

    741,600       620,691  

Lendlease Global Commercial REIT

    302,200       196,221  

Manulife US Real Estate Investment Trust

    503,500       358,234  

Mapletree Commercial Trust

    761,317       1,231,447  

Mapletree Industrial Trust

    643,145       1,312,896  

Mapletree Logistics Trust

    995,337       1,492,541  

OUE Commercial Real Estate Investment Trust

    733,000       244,605  

Parkway Life REIT

    133,800       462,371  

Prime U.S. REIT

    217,900       188,278  

SPH REIT

    322,000       233,082  

Starhill Global REIT

    484,200       231,873  

Suntec REIT

    720,800       798,026  

UOL Group Ltd.

    169,200       907,492  
   

 

 

 
        21,998,267  
Spain — 0.9%            

Inmobiliaria Colonial Socimi SA

    116,471       1,132,326  

Lar Espana Real Estate Socimi SA

    21,883       133,061  

Merlin Properties Socimi SA

    115,277       1,248,413  
   

 

 

 
      2,513,800  
Sweden — 6.6%            

Atrium Ljungberg AB, Class B

    15,224       349,578  

Castellum AB

    71,455       1,904,535  

Catena AB

    9,603       584,812  

Cibus Nordic Real Estate AB

    13,536       358,102  

Corem Property Group AB, Class B

    223,874       742,945  

Dios Fastigheter AB

    29,630       344,729  

Fabege AB

    88,555       1,498,928  
 

 

 

C H E D U L E   O F  N V E S T M E N T S

  21


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® International Developed Real Estate ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Sweden (continued)            

Fastighets AB Balder, Class B(b)

    34,789     $ 2,522,479  

Hufvudstaden AB, Class A

    37,403       598,495  

K-Fast Holding AB(b)

    21,256       194,862  

Kungsleden AB

    64,614       887,803  

Nyfosa AB

    62,419       1,053,157  

Pandox AB(b)

    30,316       534,448  

Platzer Fastigheter Holding AB, Class B

    18,688       304,648  

Sagax AB, Class B

    59,386       2,324,334  

Samhallsbyggnadsbolaget i Norden AB

    343,705       2,305,241  

Wallenstam AB, Class B

    58,091       1,019,573  

Wihlborgs Fastigheter AB

    45,694       1,083,324  
   

 

 

 
        18,611,993  
Switzerland — 2.4%            

Allreal Holding AG, Registered

    4,851       1,025,725  

Hiag Immobilien Holding AG

    1,037       109,861  

Intershop Holding AG

    386       241,566  

Mobimo Holding AG, Registered

    2,226       750,023  

Peach Property Group AG

    3,151       213,371  

PSP Swiss Property AG, Registered

    14,890       1,861,339  

Swiss Prime Site AG, Registered

    25,956       2,638,850  
   

 

 

 
      6,840,735  
United Kingdom — 11.3%            

Aberdeen Standard European Logistics Income PLC(c)

    107,241       165,110  

Assura PLC

    903,580       901,478  

Big Yellow Group PLC

    58,736       1,188,867  

BMO Commercial Property Trust Ltd.

    181,499       254,352  

BMO Real Estate Investments Ltd.

    79,172       92,351  

British Land Co. PLC (The)

    319,709       2,158,667  

Capital & Counties Properties PLC

    252,589       569,696  

Civitas Social Housing PLC

    214,918       276,185  

CLS Holdings PLC

    56,322       172,331  

Custodian REIT PLC

    130,964       174,212  

Derwent London PLC

    34,923       1,615,391  

Empiric Student Property PLC(b)

    208,453       252,472  

GCP Student Living PLC

    156,409       450,343  

Grainger PLC

    250,311       1,052,768  

Great Portland Estates PLC

    88,400       883,952  

Hammerson PLC(a)

    1,444,274       634,146  

Helical PLC

    35,075       221,077  

Impact Healthcare REIT PLC

    89,515       144,802  

Intu Properties PLC(a)(d)

    6,694        

Land Securities Group PLC

    246,307       2,313,926  

LondonMetric Property PLC

    302,604       1,082,276  

LXI REIT PLC

    240,300       482,153  

NewRiver REIT PLC

    100,034       106,646  

Phoenix Spree Deutschland Ltd.

    28,065       154,018  

Picton Property Income Ltd. (The)

    192,278       255,511  
Security   Shares     Value  
United Kingdom (continued)            

Primary Health Properties PLC

    453,644     $ 952,759  

PRS REIT PLC (The)

    161,326       225,198  

Regional REIT Ltd.(c)

    124,309       149,326  

Safestore Holdings PLC

    71,266       1,172,324  

Schroder REIT Ltd.

    173,023       118,869  

Segro PLC

    413,844       7,314,504  

Shaftesbury PLC

    95,498       815,089  

Standard Life Investment Property Income Trust Ltd.

    133,121       133,904  

Target Healthcare REIT PLC

    177,431       289,445  

Triple Point Social Housing REIT PLC(c)

    122,509       163,636  

Tritax Big Box REIT PLC

    645,596       1,986,779  

Tritax EuroBox PLC(c)

    277,933       429,052  

UK Commercial Property REIT Ltd.

    251,632       261,257  

UNITE Group PLC (The)

    110,298       1,646,836  

Workspace Group PLC

    45,752       514,687  
   

 

 

 
      31,776,395  
   

 

 

 

Total Common Stocks — 99.4%
(Cost: $278,108,119)

      278,519,932  
   

 

 

 

Short-Term Investments

   
Money Market Funds — 1.7%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 0.05%(e)(f)(g)

    4,050,550       4,052,576  

BlackRock Cash Funds: Treasury, SL Agency Shares, 0.00%(e)(f)

    640,000       640,000  
   

 

 

 
      4,692,576  
   

 

 

 

Total Short-Term Investments — 1.7%
(Cost: $4,692,576)

      4,692,576  
   

 

 

 

Total Investments in Securities — 101.1%
(Cost: $282,800,695)

      283,212,508  

Other Assets, Less Liabilities — (1.1)%

      (3,152,916
   

 

 

 

Net Assets — 100.0%

    $   280,059,592  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

22  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® International Developed Real Estate ETF

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended October 31, 2021 for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
04/30/21
    Purchases
at Cost
    Proceeds
from Sales
    Net Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/21
    Shares
Held at
10/31/21
    Income     Capital
Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 1,765,455     $ 2,287,151 (a)    $     $ (226   $ 196     $ 4,052,576       4,050,550     $ 34,976 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    110,000       530,000 (a)                         640,000       640,000       5        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (226)     $ 196     $ 4,692,576       $ 34,981     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
     Expiration
Date
     Notional
Amount
(000)
     Value/
Unrealized
Appreciation
(Depreciation)
 

Long Contracts

           

SGX MSCI Singapore Index

     12        11/29/21      $ 328      $ (770

TOPIX Index

     2        12/09/21        350        120  

Dow Jones U.S. Real Estate Index

     22        12/17/21        935        25,169  

Euro STOXX 50 Index

     4        12/17/21        196        2,997  
           

 

 

 
            $ 27,516  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

      Equity
Contracts
 

Assets — Derivative Financial Instruments

  

Futures contracts

  

Unrealized appreciation on futures contracts(a)

   $ 28,286  
  

 

 

 

Liabilities — Derivative Financial Instruments

  

Futures contracts

  

Unrealized depreciation on futures contracts(a)

   $ 770  
  

 

 

 

 

  (a) 

Net cumulative appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended October 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Equity
Contracts
 

Net Realized Gain (Loss) from:

  

Futures contracts

   $ 151,187  
  

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

  

Futures contracts

   $ (31,277
  

 

 

 

 

 

C H E D U L E   O F  N V E S T M E N T S

  23


Schedule of Investments  (unaudited) (continued)

October 31, 2021

  

iShares® International Developed Real Estate ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — long

   $ 1,891,030  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1      Level 2      Level 3      Total  

Investments

           

Assets

           

Common Stocks

   $ 57,446,364      $ 221,073,492      $ 76      $ 278,519,932  

Money Market Funds

     4,692,576                      4,692,576  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 62,138,940      $ 221,073,492      $ 76      $ 283,212,508  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative financial instruments(a)

           

Assets

           

Futures Contracts

   $ 25,169      $ 3,117      $      $ 28,286  

Liabilities

           

Futures Contracts

            (770             (770
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 25,169      $ 2,347      $      $ 27,516  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

24  

2 0 2 1   I S H A R E S   S E M I - A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


 

Statements of Assets and Liabilities  (unaudited)

October 31, 2021

 

     iShares
Cohen & Steers
REIT ETF
     iShares
Core U.S. REIT
ETF
     iShares
Global REIT ETF
     iShares
International
Developed
Real Estate
ETF
 

ASSETS

          

Investments in securities, at value (including securities on loan)(a):

          

Unaffiliated(b)

  $ 2,698,371,054      $ 2,531,525,673      $ 3,388,434,582      $ 278,519,932  

Affiliated(c)

    3,800,000        9,096,418        16,757,526        4,692,576  

Cash

    6,345        8,470        2,396        21,591  

Foreign currency, at value(d)

                  1,558,999        549,619  

Cash pledged:

          

Futures contracts

    184,000        358,000        405,000        49,000  

Foreign currency collateral pledged:

          

Futures contracts(e)

                  67,703        39,239  

Receivables:

          

Investments sold

    30,527,543               13        1,424,236  

Securities lending income — Affiliated

           242        45,248        24,591  

Capital shares sold

           96,791        5,804         

Dividends

    298,234        807,509        3,752,561        723,535  

Tax reclaims

                  458,542        157,215  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    2,733,187,176        2,541,893,103        3,411,488,374        286,201,534  
 

 

 

    

 

 

    

 

 

    

 

 

 

LIABILITIES

          

Collateral on securities loaned, at value

           2,466,515        11,520,806        4,055,488  

Payables:

          

Investments purchased

    31,609,347               67,280        1,964,652  

Variation margin on futures contracts

    36,447        77,162        97,014        12,385  

Investment advisory fees

    711,832        164,433        391,284        109,417  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    32,357,626        2,708,110        12,076,384        6,141,942  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 2,700,829,550      $ 2,539,184,993      $ 3,399,411,990      $ 280,059,592  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS CONSIST OF:

          

Paid-in capital

  $ 2,136,181,982      $ 2,157,697,235      $ 2,985,533,675      $ 371,559,974  

Accumulated earnings (loss)

    564,647,568        381,487,758        413,878,315        (91,500,382
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS

  $ 2,700,829,550      $ 2,539,184,993      $ 3,399,411,990      $ 280,059,592  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares outstanding

    38,400,000        40,250,000        116,350,000        9,600,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value

  $ 70.33      $ 63.09      $ 29.22      $ 29.17  
 

 

 

    

 

 

    

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited        Unlimited        Unlimited  
 

 

 

    

 

 

    

 

 

    

 

 

 

Par value

    None        None        None        None  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a) Securities loaned, at value

  $      $ 2,458,690      $ 11,083,089      $ 2,256,153  

(b) Investments, at cost — Unaffiliated

  $ 2,004,229,706      $ 2,156,405,627      $ 2,867,141,882      $ 278,108,119  

(c)  Investments, at cost — Affiliated

  $ 3,800,000      $ 9,096,418      $ 16,752,104      $ 4,692,576  

(d) Foreign currency, at cost

  $      $      $ 1,563,338      $ 549,996  

(e) Foreign currency collateral pledged, at cost

  $      $      $ 70,702      $ 39,772  

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T  S

  25


 

Statements of Operations  (unaudited)

Six Months Ended October 31, 2021

 

     iShares
Cohen &
Steers REIT
ETF
    iShares
Core U.S.
REIT ETF
    iShares
Global REIT
ETF
    iShares
International
Developed
Real Estate
ETF
 

INVESTMENT INCOME

       

Dividends — Unaffiliated.

  $ 24,894,760     $ 24,518,065     $ 43,114,968     $ 4,336,599  

Dividends — Affiliated

    102       140       175       5  

Securities lending income — Affiliated — net

          1,003       72,622       34,976  

Foreign taxes withheld

                (2,015,658     (333,882
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    24,894,862       24,519,208       41,172,107       4,037,698  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory fees

    4,033,154       902,582       2,299,514       642,281  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    4,033,154       902,582       2,299,514       642,281  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    20,861,708       23,616,626       38,872,593       3,395,417  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — Unaffiliated

    (1,321,614     (4,548,208     (33,681,146     1,266,292  

Investments — Affiliated

          (96     2,306       (226

In-kind redemptions — Unaffiliated

    23,254,461       48,198,283       62,254,244        

Futures contracts

    489,121       527,063       2,098,858       151,187  

Foreign currency transactions

                (82,074     (12,602
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gain

    22,421,968       44,177,042       30,592,188       1,404,651  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — Unaffiliated

    260,598,970       198,478,331       204,452,532       4,023,035  

Investments — Affiliated

          12       (1,615     196  

Futures contracts

    (291,547     41,136       (418,193     (31,277

Foreign currency translations

                (49,156     (12,726
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation)

    260,307,423       198,519,479       203,983,568       3,979,228  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    282,729,391       242,696,521       234,575,756       5,383,879  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

  $ 303,591,099     $ 266,313,147     $ 273,448,349     $ 8,779,296  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

26  

2 0 2 1   H A R E S  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


 

Statements of Changes in Net Assets

 

    iShares
Cohen & Steers REIT ETF
          IShares
Core U.S. REIT ETF
 
    

Six Months Ended

10/31/21

(unaudited)

   

Year Ended

04/30/21

          

Six Months Ended

10/31/21

(unaudited)

   

Year Ended

04/30/21

 

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS

         

Net investment income

  $ 20,861,708     $ 41,267,035       $ 23,616,626     $ 37,726,883  

Net realized gain

    22,421,968       9,326,475         44,177,042       27,214,457  

Net change in unrealized appreciation (depreciation)

    260,307,423       458,100,872         198,519,479       442,458,325  
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets resulting from operations

    303,591,099       508,694,382         266,313,147       507,399,665  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (19,712,397     (45,075,395       (22,604,239     (45,560,203
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Net increase (decrease) in net assets derived from capital share transactions

    159,618,705       (49,147,842       308,783,924       185,409,809  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

         

Total increase in net assets

    443,497,407       414,471,145         552,492,832       647,249,271  

Beginning of period

    2,257,332,143       1,842,860,998         1,986,692,161       1,339,442,890  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 2,700,829,550     $ 2,257,332,143       $ 2,539,184,993     $ 1,986,692,161  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T  S

  27


 

Statements of Changes in Net Assets  (continued)

 

    iShares
Global REIT ETF
          iShares
International Developed Real Estate ETF
 
    

Six Months Ended

10/31/21

(unaudited)

   

Year Ended

04/30/21

          

Six Months Ended

10/31/21

(unaudited)

   

Year Ended

04/30/21

 

INCREASE (DECREASE) IN NET ASSETS

         

OPERATIONS

         

Net investment income

  $ 38,872,593     $ 66,480,813       $ 3,395,417     $ 7,695,800  

Net realized gain (loss)

    30,592,188       (9,755,980       1,404,651       (9,858,769

Net change in unrealized appreciation (depreciation)

    203,983,568       711,564,829         3,979,228       67,063,690  
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets resulting from operations

    273,448,349       768,289,662         8,779,296       64,900,721  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

         

Decrease in net assets resulting from distributions to shareholders

    (45,750,372     (61,575,908       (4,928,366     (5,659,254
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Net increase (decrease) in net assets derived from capital share transactions

    88,493,414       476,173,181         19,694,752       (62,111,213
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS

         

Total increase (decrease) in net assets

    316,191,391       1,182,886,935         23,545,682       (2,869,746

Beginning of period

    3,083,220,599       1,900,333,664         256,513,910       259,383,656  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 3,399,411,990     $ 3,083,220,599       $ 280,059,592     $ 256,513,910  
 

 

 

   

 

 

     

 

 

   

 

 

 

(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

28  

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Financial Highlights

(For a share outstanding throughout each period)

 

    iShares Cohen & Steers REIT ETF  
     

Six Months Ended
10/31/21

(unaudited

 
 

           
Year Ended
04/30/21
 
(a)  
    
Year Ended
04/30/20
 
(a)  
    
Year Ended
04/30/19
 
(a)  
    
Year Ended
04/30/18
 
(a)  
    
Year Ended
04/30/17
 
(a)  
               

Net asset value, beginning of period

  $ 62.62       $ 49.68      $ 55.51      $ 47.00      $ 49.84      $ 50.01  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(b)

    0.56         1.15        1.39        1.28        1.30        1.21  

Net realized and unrealized gain (loss)(c)

    7.68         13.04        (5.78      8.74        (2.58      0.57  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    8.24         14.19        (4.39      10.02        (1.28      1.78  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions(d)

                 

From net investment income

    (0.53       (1.25      (1.44      (1.51      (1.56      (1.95
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions

    (0.53       (1.25      (1.44      (1.51      (1.56      (1.95
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 70.33       $ 62.62      $ 49.68      $ 55.51      $ 47.00      $ 49.84  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(e)

                 

Based on net asset value

    13.22 %(f)         29.11      (8.10 )%       21.70      (2.68 )%       3.58
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

                 

Total expenses

    0.32 %(g)         0.33      0.34      0.34      0.34      0.34
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    1.67 %(g)         2.15      2.43      2.51      2.63      2.37
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets, end of period (000)

  $ 2,700,830       $ 2,257,332      $ 1,842,861      $ 2,187,126      $ 2,476,649      $ 3,239,748  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(h)

    7 %(f)         27      19      17      12      8
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Per share amounts reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

(b) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Annualized.

(h) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T  S

  29


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Core U.S. REIT ETF  
     Six Months Ended
10/31/21
(unaudited)
           Year Ended
04/30/21
     Year Ended
04/30/20
     Year Ended
04/30/19
     Year Ended
04/30/18
     Year Ended
04/30/17
 
               

Net asset value, beginning of period

  $ 56.60       $ 42.45      $ 51.60      $ 45.73      $ 48.93      $ 47.95  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.63         1.17        1.62        1.79        1.70        1.27  

Net realized and unrealized gain (loss)(b)

    6.47         14.39        (8.95      6.59        (3.20      1.60  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    7.10         15.56        (7.33      8.38        (1.50      2.87  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions(c)

                 

From net investment income

    (0.61       (1.41      (1.80      (2.44      (1.70      (1.89

From net realized gain

                   (0.02      (0.07              
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions

    (0.61       (1.41      (1.82      (2.51      (1.70      (1.89
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 63.09       $ 56.60      $ 42.45      $ 51.60      $ 45.73      $ 48.93  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(d)

                 

Based on net asset value

    12.60 %(e)         37.43      (14.60 )%       18.82      (3.18 )%       6.02
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

                 

Total expenses

    0.08 %(f)         0.08      0.08      0.08      0.08      0.28
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    2.09 %(f)         2.48      3.12      3.64      3.60      2.57
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets, end of period (000)

  $ 2,539,185       $ 1,986,692      $ 1,339,443      $ 1,290,051      $ 514,475      $ 124,765  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(g)

    3 %(e)         5      8      11      8      30
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

30  

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares Global REIT ETF  
     Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
     Year Ended
04/30/20
     Year Ended
04/30/19
     Year Ended
04/30/18
     Year Ended
04/30/17
 

Net asset value, beginning of period

  $ 27.22     $ 20.42      $ 26.53      $ 24.82      $ 25.42      $ 26.35  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.34       0.66        0.88        0.98        0.97        0.86  

Net realized and unrealized gain (loss)(b)

    2.06       6.75        (5.54      2.08        (0.56      (0.47
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    2.40       7.41        (4.66      3.06        0.41        0.39  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions(c)

               

From net investment income

    (0.40     (0.61      (1.45      (1.35      (0.99      (1.29

From net realized gain

                               (0.02      (0.03
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions

    (0.40     (0.61      (1.45      (1.35      (1.01      (1.32
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 29.22     $ 27.22      $ 20.42      $ 26.53      $ 24.82      $ 25.42  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(d)

               

Based on net asset value

    8.86 %(e)       36.95      (18.47 )%       12.77      1.61      1.53
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

               

Total expenses

    0.14 %(f)       0.14      0.14      0.14      0.14      0.14
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    2.37 %(f)       2.91      3.36      3.85      3.83      3.31
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 3,399,412     $ 3,083,221      $ 1,900,334      $ 1,637,157      $ 913,379      $ 350,819  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(g)

    8 %(e)       6      8      9      7      5
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (d) Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Annualized.

(g) 

Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

I N A N C I A L   S T A T E M E N T  S

  31


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    iShares International Developed Real Estate ETF  
     Six Months Ended
10/31/21
(unaudited)
    Year Ended
04/30/21
     Year Ended
04/30/20
     Year Ended
04/30/19
     Year Ended
04/30/18
     Year Ended
04/30/17
 

Net asset value, beginning of period

  $ 28.82     $ 22.75      $ 29.65      $ 30.40      $ 28.11      $ 30.06  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.38       0.78        0.86        0.93        0.91        0.82  

Net realized and unrealized gain (loss)(b)

    0.52       5.86        (5.47      (0.55      2.86        (0.76
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.90       6.64        (4.61      0.38        3.77        0.06  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions(c)

               

From net investment income

    (0.55     (0.57      (2.29      (1.13      (1.48      (2.01
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions

    (0.55     (0.57      (2.29      (1.13      (1.48      (2.01
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 29.17     $ 28.82      $ 22.75      $ 29.65      $ 30.40      $ 28.11  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return(d)

               

Based on net asset value

    3.12 %(e)       29.62      (16.93 )%       1.39      13.69      0.63 %(f)  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets

               

Total expenses

    0.48 %(g)       0.48      0.48      0.48      0.48      0.48
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses excluding professional fees for foreign withholding tax claims

    N/A       0.48      N/A        0.48      N/A        0.48
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income

    2.54 %(g)       3.08      2.99      3.20      3.08      2.85 %(f)  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 280,060     $ 256,514      $ 259,384      $ 477,332      $ 535,093      $ 519,971  
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate(h)

    10 %(e)       9      10      8      8      7
 

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average shares outstanding.

(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) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases:

 

Total return by 0.04%.

 

Ratio of net investment income to average net assets by 0.01%.

(g) Annualized.

(h) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

 

 

32  

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Notes to Financial Statements  (unaudited)

 

1.

ORGANIZATION

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 is organized as a Delaware statutory trust and is authorized to have multiple series or portfolios.

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

 

iShares ETF   Diversification
Classification

Cohen & Steers REIT

  Non-diversified

Core U.S. REIT

  Diversified

Global REIT

  Diversified

International Developed Real Estate

  Diversified

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations 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. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Funds are informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers or as estimated by management, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. 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 each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its 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 October 31, 2021, if any, are disclosed in the Statements of Assets and Liabilities.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and record cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value (“NAV”) per share.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

Distributions: 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. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date. 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. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

   

Equity investments traded on a recognized securities exchange are valued at that day’s 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.

   

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV.

   

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. 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 price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

   

Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs); and

   

Level 3 – Unobservable inputs 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 financial instruments).

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 judgment 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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

4.

SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 market 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 Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested in money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates is disclosed in the Schedule 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, if any, are also disclosed in each Fund’s Schedule of Investments. The market value of any securities on loan and the value of any related cash collateral are disclosed in the Statements of Assets and Liabilities.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “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, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the securities on loan by counterparty which are subject to offset under an MSLA:

 

iShares ETF and Counterparty    
Market Value of
Securities on Loan
 
 
    

Cash Collateral

Received

 

(a)  

   
Non-Cash Collateral
Received
 
 
     Net Amount  

Core U.S. REIT

         

Barclays Capital, Inc

  $ 230,958      $ 230,958     $      $  

BofA Securities, Inc

    2,055,090        2,055,090               

Goldman Sachs & Co. LLC

    172,642        172,642               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 2,458,690      $ 2,458,690     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

Global REIT

         

BofA Securities, Inc

  $ 903,373      $ 903,373     $      $  

Citigroup Global Markets, Inc.

    59,670        59,670               

Credit Suisse Securities (USA) LLC

    452,200        452,200               

Goldman Sachs & Co. LLC

    4,606,787        4,606,787               

HSBC Bank PLC

    1,391,033        1,391,033               

J.P. Morgan Securities LLC

    998,988        998,988               

Jefferies LLC

    2,670,766        2,670,766               

UBS AG

    272        272               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 11,083,089      $ 11,083,089     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

International Developed Real Estate

         

Barclays Capital, Inc

  $ 598,157      $ 598,157     $      $  

BofA Securities, Inc

    664,354        664,354               

Citigroup Global Markets, Inc.

    567,213        567,213               

Goldman Sachs & Co. LLC

    184,940        184,940               

HSBC Bank PLC

    238,738        238,738               

J.P. Morgan Securities LLC

    2,751        2,751               
 

 

 

    

 

 

   

 

 

    

 

 

 
  $ 2,256,153      $ 2,256,153     $      $  
 

 

 

    

 

 

   

 

 

    

 

 

 

 

  (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.

 

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent 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

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

value of an investment purchased with cash collateral falls below the market 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. Such losses are borne entirely by each Fund.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk) .

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 Cohen & Steers REIT ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the Fund’s allocable portion of the aggregate of the average daily net assets of the Fund and certain other iShares funds, as follows:

 

Aggregate Average Daily Net Assets   Investment Advisory Fee  

First $121 billion

    0.3500

Over $121 billion, up to and including $181 billion

    0.3325  

Over $181 billion, up to and including $231 billion

    0.3159  

Over $231 billion, up to and including $281 billion

    0.3001  

Over $281 billion

    0.2851  

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

 

iShares ETF   Investment Advisory Fee  

Core U.S. REIT

    0.08

Global REIT

    0.14  

International Developed Real Estate

    0.48  

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (the “SEC”) has issued an exemptive order which permits BlackRock Institutional Trust Company, N.A. (“BTC”), an affiliate of BFA, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by BFA, or its affiliates. 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 SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

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. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

Pursuant to the current securities lending agreement, each of iShares Cohen & Steers REIT ETF and iShares Core U.S. REIT ETF (the “Group 1 Funds”), retains 77% of securities lending income (which excludes collateral investment fees) and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Pursuant to the current securities lending agreement, each of iShares Global REIT ETF and iShares International Developed Real Estate ETF (the “Group 2 Funds”), retains 82% of securities lending income (which excludes collateral investment fees) 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 a specified threshold: (1) each Group 1 Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year 81% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees, and (2) each Group 2 Fund will retain for the remainder of that calendar year 85% of securities lending income (which excludes collateral investment fees), and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its Statements of Operations. For the six months ended October 31, 2021, the Funds paid BTC the following amounts for securities lending agent services:

 

iShares ETF   Fees Paid
to BTC
 

Core U.S. REIT

  $ 399  

Global REIT

        16,563  

International Developed Real Estate

    8,184  

Officers and Trustees: Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: 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 six months ended October 31, 2021, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

 

iShares ETF   Purchases      Sales      Net Realized
Gain (Loss)
 

Cohen & Steers REIT

  $ 2,904,591      $ 2,189,188      $ (13,441

Core U.S. REIT

        11,068,492        10,713,826        (1,408,526

Global REIT

    2,658,253            100,641,301        (11,281,864

International Developed Real Estate

    21,745        259,517        (61,710

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 shown as dividends – affiliated in the Statements of Operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

 

7.

PURCHASES AND SALES

For the six months ended October 31, 2021, purchases and sales of investments, excluding short-term investments and in-kind transactions, were as follows:

 

iShares ETF   Purchases      Sales  

Cohen & Steers REIT

  $     185,231,929      $     175,390,072  

Core U.S. REIT

    82,423,538        73,067,241  

Global REIT

    314,822,389        273,627,808  

International Developed Real Estate

    29,227,592        25,029,695  

For the six months ended October 31, 2021, in-kind transactions were as follows:

 

iShares ETF   In-kind
Purchases
     In-kind Sales  

Cohen & Steers REIT

  $     222,579,810      $ 63,441,557  

Core U.S. REIT

    464,618,777            159,540,821  

Global REIT

    228,043,835        170,582,336  

International Developed Real Estate

    16,842,536         

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

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 each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Management has analyzed tax laws and regulations and their application to the Funds as of October 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of April 30, 2021, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:

 

iShares ETF   Non-Expiring  

Cohen & Steers REIT

  $     130,976,844  

Core U.S. REIT

    19,015,351  

Global REIT

    53,903,719  

International Developed Real Estate

    80,257,865  

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund 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.

As of October 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

iShares ETF   Tax Cost      Gross Unrealized
Appreciation
     Gross Unrealized
Depreciation
    Net Unrealized
Appreciation
(Depreciation)
 

Cohen & Steers REIT

  $     2,029,826,374      $  727,835,354      $ (55,384,578   $  672,450,776  

Core U.S. REIT

    2,185,032,207        468,734,030        (112,859,153     355,874,877  

Global REIT

    2,974,696,943        644,794,723        (214,057,841     430,736,882  

International Developed Real Estate

    294,281,463        41,383,165        (52,424,604     (11,041,439

 

9.

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. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. 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.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A fund may invest in illiquid investments. An illiquid investment is any investment that a fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause a fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a fund may lose value, regardless of the individual results of the securities and other instruments in which a fund invests.

 

 

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Notes to Financial Statements  (unaudited) (continued)

 

The price each Fund could receive upon the sale of any particular portfolio investment may differ from each Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: 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.

Certain Funds invest a significant portion of their assets in issuers located in a single country or a limited number of countries. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, the United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching.

Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

LIBORTransition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

 

10.

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.

 

 

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  39


Notes to Financial Statements  (unaudited) (continued)

 

Transactions in capital shares were as follows:

 

     Six Months Ended
10/31/21
    Year Ended
04/30/21
 
iShares ETF   Shares     Amount     Shares     Amount  

Cohen & Steers REIT

       

Shares sold

    3,300,000     $ 223,238,079       2,750,000 (a)    $ 147,340,181  

Shares redeemed

    (950,000     (63,619,374     (3,800,000 )(a)      (196,488,023
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    2,350,000     $ 159,618,705       (1,050,000   $ (49,147,842
 

 

 

   

 

 

   

 

 

   

 

 

 

Core U.S. REIT

       

Shares sold

    7,800,000     $ 469,722,768       10,850,000     $ 516,994,095  

Shares redeemed

    (2,650,000     (160,938,844     (7,300,000     (331,584,286
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    5,150,000     $ 308,783,924       3,550,000     $ 185,409,809  
 

 

 

   

 

 

   

 

 

   

 

 

 

Global REIT

       

Shares sold

    9,500,000     $ 269,758,857       25,850,000     $ 596,282,883  

Shares redeemed

    (6,400,000     (181,265,443     (5,650,000     (120,109,702
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase

    3,100,000     $ 88,493,414       20,200,000     $ 476,173,181  
 

 

 

   

 

 

   

 

 

   

 

 

 

International Developed Real Estate

       

Shares sold

    700,000     $ 19,694,752       600,000     $ 13,805,489  

Shares redeemed

                (3,100,000     (75,916,702
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease)

    700,000     $ 19,694,752       (2,500,000   $ (62,111,213
 

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Share transactions reflect a two-for-one stock split effective after the close of trading on December 4, 2020.

 

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the Statements of Assets and Liabilities.

 

11.

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 additional disclosure in the financial statements.

 

 

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Board Review and Approval of Investment Advisory Contract

 

iShares Cohen & Steers REIT ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected

 

 

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  41


Board Review and Approval of Investment Advisory Contract  (continued)

 

by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that it would continue to assess the appropriateness of adding new or revised breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares Core U.S. REIT ETF, iShares Global REIT ETF (each the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were lower than the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2020, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue,

 

 

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  43


Board Review and Approval of Investment Advisory Contract  (continued)

 

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that it would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

iShares International Developed Real Estate ETF (the “Fund”)

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 Board Members who are not “interested persons” of the Trust (as that term is defined in the 1940 Act) (the “Independent Board Members), is required annually to consider and approve the Investment Advisory Agreement between the Trust and BFA (the “Advisory Agreement”) whereby the Board and its committees (composed solely of Independent Board Members) assess BlackRock’s services to the Fund, including investment management; fund accounting; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. The Independent Board Members requested, and BFA provided, such information as the Independent Board Members, with advice from independent counsel, deemed reasonably necessary to

 

 

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Board Review and Approval of Investment Advisory Contract  (continued)

 

evaluate the Advisory Agreement. At meetings on May 7, 2021 and May 14, 2021, a committee composed of all of the Independent Board Members (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or its independent counsel, and requested certain additional information, which management agreed to provide. At a meeting held on June 15-16, 2021, the Board, including the Independent Board Members, reviewed the additional information provided by management in response to these requests.

After extensive discussions and deliberations, the Board, including all of the Independent Board Members, approved the continuance of the Advisory Agreement for the Fund, based on a review of qualitative and quantitative information provided by BFA and their cumulative experience as Board Members. 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 Independent Board Members were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the continuance of the Advisory Agreement for the Fund, the Board, including the Independent Board Members, considered various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) potential economies of scale and the sharing of related benefits; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, none of which was controlling, and conclusions that formed the basis for the Board, including the Independent Board Members, to approve the continuance of the Advisory Agreement are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 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 overall fund expenses (net of waivers and reimbursements) for the Fund were within range of the median of the overall fund 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-year, three-year, five-year, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2021, to that of relevant comparison fund(s) 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 additional detailed information as requested by the Board, 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 expense level and the historical performance of the Fund supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Nature, Extent and Quality of Services Provided: 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, portfolio management, product design and quality, compliance and risk management, global public policy 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 Agreement for the coming year as compared with 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 support the iShares funds and their shareholders and have made significant investments into the iShares business. 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 relevant officers and other employees of BFA (and its affiliates) 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, which were provided at the May 7, 2021 meeting and throughout the year.

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

Costs of Services Provided to the Fund and Profits Realized by BFA and its Affiliates: The Board reviewed information about the estimated profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Agreement), 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 methodology for calculating estimated profitability of the iShares funds, noting that the 15(c) Committee and the Board had focused on the methodology and profitability presentation. The Board recognized that profitability may be affected by numerous factors, including, among other things, fee waivers by BFA, the types of funds managed, expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is challenging. The Board discussed with management the sources of direct and ancillary revenue, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Fund. The Board also discussed BFA’s estimated 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 Agreement 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 and other information considered.

 

 

O A R D  E V I E W  A N D  P  P R O V A L  O F  N V E S T M E N T  D V I S O R Y  O N T R A C T

  45


Board Review and Approval of Investment Advisory Contract  (continued)

 

Economies of Scale: The Board reviewed information and considered the extent to which economies of scale might be realized as the assets of the Fund increase, noting that the issue of potential economies of scale had been focused on by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board received information regarding BlackRock’s historical estimated profitability, including BFA’s and its affiliates’ estimated costs in providing services. The estimated cost information distinguished, among other things, between fixed and variable costs, and showed how the level and nature of fixed and variable costs may impact the existence or size of scale benefits, with the Board recognizing that potential economies of scale are difficult to measure. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Agreement for the Fund did not provide for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board would continue to assess the appropriateness of adding breakpoints in the future.

The Board concluded that this review of potential economies of scale and the sharing of related benefits, as well as the other factors considered at the meeting, supported the Board’s approval of the continuance of the Advisory Agreement for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates: The Board 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 (collectively, the “Other Accounts”). The Board acknowledged BFA’s representation that the iShares funds are fundamentally different investment vehicles from the Other Accounts.

The Board received detailed information regarding how the Other Accounts generally differ from the Fund, including in terms of the types of services 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 investment vehicle, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. 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 also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate.

The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Agreement 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 other benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, both direct and indirect, including, but not limited to, 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 estimated profitability methodology), payment of advisory fees or other fees to BFA (or its affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services or other services, and BlackRock’s profile in the investment community. The Board also noted the revenue received by BFA and/or its affiliates pursuant to (i) 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 and (ii) other technology-related initiatives aimed to better support the iShares funds. The Board further 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 concluded that any such ancillary benefits would not be disadvantageous to the Fund and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Agreement for the coming year.

Conclusion: Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Board Members, determined that the Fund’s investment advisory fee rate under the Advisory Agreement 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 Agreement for the coming year.

 

 

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Supplemental Information  (unaudited)

 

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being 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 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.

October 31, 2021

 

     Total Cumulative Distributions
for the Fiscal Year-to-Date
    % Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
 
iShares ETF   Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
    Net
Investment
Income
    Net Realized
Capital Gains
    Return of
Capital
    Total Per
Share
 

Cohen & Steers REIT(a)

  $ 0.418539     $     $ 0.115332     $ 0.533871       78         22     100

Core U.S. REIT(a)

    0.487090             0.124849       0.611939       80             20       100  

Global REIT(a)

    0.330100             0.069059       0.399159       83             17       100  

International Developed Real Estate(a)

    0.529969             0.023780       0.553749       96             4       100  

 

  (a) 

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. When distributions exceed total return performance, the difference will incrementally reduce the Fund’s net asset value per share.

 

 

 

U P P L E M E N T A L    N F O R M  A T I O N

  47


General Information

 

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery:

 

   

Go to icsdelivery.com.

   

If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents and Rule 30e-3 notices can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at iShares.com/fundreports.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that the iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at iShares.com; and (3) on the SEC website at sec.gov.

A description of the Company’s policies and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund Prospectus. The Fund discloses its portfolio holdings daily and provides information regarding its top holdings in Fund fact sheets at iShares.com.

 

 

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Glossary of Terms Used in this Report

 

Portfolio Abbreviations - Equity
NVS   Non-Voting Shares
REIT   Real Estate Investment Trust

 

 

L O S S A R Y  O F  E R M S  S E D  I N  T H I S  E P O R T

  49


 

Want to know more?

iShares.com    |     1-800-474-2737

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

Investing involves risk, including possible loss of principal.

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

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc. or FTSE International Limited, nor do these companies make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the companies listed above.

©2021 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-SAR-405-1021

 

 

LOGO

   LOGO


(b) Not Applicable

 

Item 2.

Code of Ethics.

Not applicable to this semi-annual report.

 

Item 3.

Audit Committee Financial Expert.

Not applicable to this semi-annual report.

 

Item 4.

Principal Accountant Fees and Services.

Not applicable to this semi-annual report.

 

Item 5.

Audit Committee of Listed Registrants.

Not applicable to this semi-annual report.


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) Not applicable to this semi-annual report.

(a) (2) Section 302 Certifications are attached.

(a) (3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a) (4) Change in Registrant’s independent public accountant – 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/ Armando Senra                            

       Armando Senra, President (Principal Executive Officer)

Date: January 05, 2022

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/ Armando Senra                            

       Armando Senra, President (Principal Executive Officer)

Date: January 05, 2022

 

   By:     

/s/ Trent Walker                            

       Trent Walker, Treasurer and Chief Financial Officer (Principal Financial Officer)

Date: January 05, 2022