N-Q 1 d693993dnq.htm FORM N-Q FOR ISHARES U.S. ETF TRUST Form N-Q for iShares U.S. ETF Trust

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22649

 

 

iShares U.S. ETF Trust

(Exact name of Registrant as specified in charter)

 

 

c/o: State Street Bank and Trust Company

200 Clarendon Street, Boston, MA 02116

(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: October 31, 2014

Date of reporting period: January 31, 2014

 

 

 

Item 1. Schedules of Investments.

Schedule of Investments  (Unaudited)

iSHARES® LIQUIDITY INCOME ETF

January 31, 2014

 

Security   Principal
(000s)		     Value  
   

ASSET-BACKED SECURITIES — 1.20%

  

  

ASSET-BACKED SECURITIES — 1.20%

  

  

Ford Credit Auto Owner Trust
Series 2014-A, Class A2

    

0.48%, 11/15/16

   $ 100      $ 100,045   

Hyundai Auto Receivables Trust
Series 2014-A, Class A2

    

0.46%, 01/16/17

     200        199,997   
   

 

 

  
      300,042   
   

 

 

  

TOTAL ASSET-BACKED SECURITIES

    

(Cost: $299,987)

       300,042   

CERTIFICATES OF DEPOSIT — 5.69%

  

  

CERTIFICATE OF DEPOSITS — 5.69%

  

  

Bank of Nova Scotia

    

0.68%, 09/11/15

     571        573,364   

Credit Suisse New York

    

0.52%, 01/23/15

     250        249,950   

Sumitomo Mitsui Banking Corp.

    

0.65%, 04/01/15

     300        299,972   

Svenska Handelsbanken AB

    

0.41%, 12/19/14

     300        300,216   
   

 

 

  
      1,423,502   
   

 

 

  

TOTAL CERTIFICATES OF DEPOSIT
(Cost: $1,423,661)

   

     1,423,502   

COMMERCIAL PAPER — 14.77%

  

COMMERCIAL PAPER — 14.77%

    

AXA Financial Inc.

    

0.00%, 02/11/14

     200        199,988   

DIRECTV Holdings LLC

    

0.00%, 07/07/14

     750        748,723   

Electricite de France

    

0.58%, 01/02/15

     500        497,575   

LMA S.A./LMA Americas LLC

    

0.00%, 03/18/14

     250        249,944   

Natexis Banques Populaires

    

0.00%, 05/23/14

     500        499,638   

Nissan Motor Acceptance Corp.

    

0.00%, 02/07/14

     250        249,989   

Tesco Treasury Services PLC

    

0.00%, 02/03/14

     500        499,989   

Vodafone Group PLC

    

0.00%, 06/25/14

     750        748,859   
   

 

 

  
      3,694,705   
   

 

 

  

TOTAL COMMERCIAL PAPER
(Cost: $3,694,159)

       3,694,705   
Security   Principal
(000s)		     Value  
   

CORPORATE BONDS & NOTES — 61.38%

  

CAPITAL MARKETS — 5.91%

    

Credit Suisse (USA) Inc.

    

4.88%, 01/15/15

   $ 435      $ 453,118   

Deutsche Bank AG London

    

3.45%, 03/30/15

     500        516,874   

Morgan Stanley

    

6.00%, 05/13/14

     500        507,590   
   

 

 

  
      1,477,582   

COMMERCIAL BANKS — 27.87%

    

Australia and New Zealand Banking Group Ltd.

    

0.62%, 01/10/17a,b

     250        249,856   

Bank of America N.A.

    

0.71%, 11/14/16b

     275        275,908   

Bank of Montreal

    

0.71%, 09/11/15b

     350        351,675   

Barclays Bank PLC

    

2.75%, 02/23/15

     300        307,042   

BB&T Corp.

    

2.05%, 04/28/14 (MT 03/28/14)

     150        150,393   

BNP Paribas SA

    

3.00%, 12/20/14b

     750        766,573   

BPCE SA

    

0.74%, 07/15/15b

     500        499,859   

1.99%, 02/07/14a,b

     200        200,018   

Commonwealth Bank of Australia

    

0.45%, 12/04/15a,b

     250        249,912   

0.75%, 09/20/16a,b

     250        250,589   

ING Bank NV

    

1.64%, 06/09/14a,b

     600        602,524   

National Australia Bank Ltd.

    

0.67%, 12/02/16a,b

     600        600,337   

Nordea Bank AB

    

2.25%, 03/20/15a

     400        408,026   

Royal Bank of Canada

    

0.46%, 12/16/15b

     300        300,168   

Svenska Handelsbanken AB

    

0.70%, 03/21/16b

     400        401,206   

Wells Fargo & Co.

    

0.44%, 10/28/15b

     600        598,750   

Westpac Banking Corp.

    

1.01%, 09/25/15b

     750        756,989   
   

 

 

  
      6,969,825   

COMPUTERS & PERIPHERALS — 2.00%

  

  

Hewlett-Packard Co.

    

0.64%, 05/30/14b

     500        500,373   
   

 

 

  
      500,373   

CONSUMER FINANCE — 3.02%

    

American Express Credit Corp.

    

1.34%, 06/12/15b

     500        506,456   

Toyota Motor Credit Corp.

    

0.39%, 09/18/15b

     250        250,044   
   

 

 

  
      756,500   
 

 

     1   

Schedule of Investments  (Unaudited) (Continued)

iSHARES® LIQUIDITY INCOME ETF

January 31, 2014

 

Security   Principal
(000s)		     Value  
   

DIVERSIFIED FINANCIAL SERVICES — 10.92%

  

Banque Federative du Credit Mutuel SA

    

1.09%, 01/20/17a,b

   $ 500      $ 499,857   

Daimler Finance North America LLC

    

1.95%, 03/28/14a

     500        501,005   

General Electric Capital Corp.

    

0.44%, 01/08/16b

     200        199,865   

0.44%, 05/11/16b

     150        149,838   

0.84%, 01/08/16b

     350        352,592   

1.11%, 05/09/16b

     170        172,254   

Volkswagen International Finance NV

    

0.84%, 11/20/14a,b

     350        351,250   

1.63%, 03/22/15a

     500        505,710   
   

 

 

  
      2,732,371   

DIVERSIFIED TELECOMMUNICATION SERVICES — 2.06%

  

BellSouth Corp.

    

5.20%, 09/15/14

     500        514,316   
   

 

 

  
      514,316   

FOOD & STAPLES RETAILING — 2.01%

  

Walgreen Co.

    

1.00%, 03/13/15

     500        502,147   
   

 

 

  
      502,147   

INSURANCE — 1.09%

    

Prudential Financial Inc.

    

Series B

    

5.10%, 09/20/14

     265        272,903   
   

 

 

  
      272,903   

MEDIA — 2.07%

    

NBCUniversal Media LLC

    

3.65%, 04/30/15

     500        519,005   
   

 

 

  
      519,005   

METALS & MINING — 2.04%

    

Rio Tinto Finance (USA) Ltd.

    

8.95%, 05/01/14

     500        510,008   
   

 

 

  
      510,008   

OIL, GAS & CONSUMABLE FUELS — 2.39%

  

Devon Energy Corp.

    

0.69%, 12/15/15b

     250        250,232   

Enterprise Products Operating LLC

    

Series G

    

5.60%, 10/15/14

     127        131,729   

Series I

    

5.00%, 03/01/15

     205        214,739   
   

 

 

  
      596,700   
   

 

 

  

TOTAL CORPORATE BONDS & NOTES

  

  

(Cost: $15,349,638)

       15,351,730   
Security   Principal
(000s)		     Value  
   

REPURCHASE AGREEMENTS — 17.39%

  

REPURCHASE AGREEMENTS — 17.39%

  

Barclays Capital Inc., 0.50%, 3/26/14 (Purchased on 12/19/13 to be repurchased at $500,674, collateralized by various corporate debt obligations, 0.00% to 7.63%, due 11/14/14 to 9/15/41, par and fair value of $604,751 and $576,665, respectively)

   $ 500      $ 500,000   

Citigroup Global Markets Inc., 0.43%, 2/03/14 (Purchased on 12/16/13 to be repurchased at $1,000,585, collateralized by U.S. Treasury obligations, 4.50%, due 5/15/17, par and fair value of $904,800 and $1,020,046, respectively)

     1,000        1,000,000   

Merrill Lynch, Pierce, Fenner & Smith Inc., 0.94%, 3/24/14 (Purchased on 12/23/13 to be repurchased at $501,188, collateralized by various corporate debt obligations, 0.00%, due 11/25/35 to 1/25/36, par and fair value of $950,945 and $688,868, respectively)

     500        500,000   

Mizuho Securities USA Inc., 1.00%, 2/13/14 (Purchased on 12/12/13 to be repurchased at $500,875, collateralized by U.S. government obligations, U.S. Treasury obligations and various corporate debt obligations, 0.00% to 4.00%, due 2/25/37 to 5/15/42, par and fair value of $3,757,168 and $552,200, respectively)

     500        500,000   

Morgan Stanley & Co. LLC, 0.47%, 3/21/14 (Purchased on 12/20/13 to be repurchased at $500,594, collateralized by various corporate debt obligations, 0.00%, due 11/25/41 to 12/25/43, par and fair value of $1,972,640 and $547,000, respectively)

     500        500,000   

RBS Securities Inc., 1.00%, 3/04/14 (Purchased on 1/08/14 to be repurchased at $500,764, collateralized by corporate debt obligations, 2.5%, due 9/01/22, par and fair value of $595,000 and $516,756, respectively)

     500        500,000   

SG Americas Securities LLC, 0.31%, 2/03/14 (Purchased on 1/09/14 to be repurchased at $850,183, collateralized by various corporate debt obligations, 0.63% to 6.38%, due 9/04/15 to 10/23/34, par and fair value of $751,054 and $906,642, respectively)

     850        850,000   
   

 

 

  
      4,350,000   
   

 

 

  

TOTAL REPURCHASE AGREEMENTS

    

(Cost: $4,350,000)

       4,350,000   
     Shares
(000s)		         
   

MONEY MARKET FUNDS — 0.06%

  

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.12%c,d

     16        15,680   
   

 

 

  

Total MONEY MARKET FUNDS

  

  

(Cost: $15,680)

       15,680   
   

 

 

  

TOTAL INVESTMENTS
IN SECURITIES — 100.49%

    

(Cost: $25,133,125)

       25,135,659   

Other Assets, Less Liabilities — (0.49)%

  

     (122,948 ) 
   

 

 

  

NET ASSETS — 100.00%

     $ 25,012,711   
   

 

 

  

 

a  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
b  Variable rate security. Rate shown is as of report date.
c  Affiliated issuer. See Note 2.
d  The rate quoted is the annualized seven-day yield of the fund at period end.

See accompanying notes to schedules of investments.

 

 

2   

Schedule of Investments  (Unaudited) (Continued)

iSHARES® SHORT MATURITY BOND ETF

January 31, 2014

 

Security   Principal
(000s)		     Value  
   

ASSET-BACKED SECURITIES — 22.40%

  

ASSET-BACKED SECURITIES — 22.40%

  

ACAS CLO Ltd.

    

Series 2007-1A, Class A1S

    

0.45%, 04/20/21a,b,c

   $ 1,000      $ 986,500   

American Credit Acceptance Receivables Trust

    

Series 2014-1, Class A

    

1.14%, 03/12/18 (MT 01/11/16)a

     900        900,135   

AmeriCredit Automobile Receivables Trust

    

Series 2011-2, Class C

    

3.19%, 10/12/16

     250        254,122   

Chase Issuance Trust

    

Series 2012-A5, Class A5

    

0.59%, 08/15/17 (MT 08/17/15)

     2,025        2,027,934   

Series 2013-A9, Class A

    

0.58%, 11/16/20 (MT 11/15/18)b

     2,000        2,004,796   

Chatham Light CLO Ltd.

    

Series 2005-2A, Class B

    

0.94%, 08/03/19a,b

     2,000        1,941,440   

Citibank Credit Card Issuance Trust

    

Series 2013-A12, Class A12

    

0.42%, 11/07/18 (MT 11/07/16)b

     1,500        1,500,674   

CNH Wholesale Master Note Trust

    

Series 2013-2A, Class B

    

1.07%, 08/15/19 (MT 08/15/16)a,b

     300        300,000   

Cornerstone CLO Ltd.

    

Series 2007-1A, Class A1S

    

0.46%, 07/15/21a,b

     500        488,340   

Credit Acceptance Auto Loan Trust

    

Series 2012-1A, Class A

    

2.20%, 09/16/19a

     500        503,165   

DT Auto Owner Trust

    

Series 2014-1A, Class B

    

1.43%, 03/15/18 (MT 01/15/16)a

     2,000        2,001,338   

Ford Credit Floorplan Master Owner Trust A

    

Series 2010-3, Class C

    

4.99%, 02/15/17 (MT 02/15/15)a

     150        155,490   

Series 2012-2, Class D

    

3.50%, 01/15/19 (MT 01/15/17)

     1,885        1,958,221   

Series 2012-4, Class B

    

0.94%, 09/15/16 (MT 09/15/14)

     1,505        1,506,633   

Series 2012-4, Class D

    

2.09%, 09/15/16 (MT 09/15/14)

     515        517,998   

Series 2013-3, Class A1

    

0.79%, 06/15/17 (MT 06/15/15)

     1,240        1,242,897   

GE Capital Credit Card Master Note Trust

    

Series 2011-2, Class A

    

0.64%, 05/15/19 (MT 05/16/16)b

     2,280        2,279,239   

HLSS Servicer Advance Receivables Trust

    

Series 2014-T1, Class AT1

    

1.24%, 01/17/45 (MT 01/15/15)a,c

     1,000        1,000,180   

Katonah Ltd.

    

Series 2007-10A, Class A2B

    

0.48%, 04/17/20a,b

     2,125        2,100,961   

Nationstar Mortgage Advance Receivables Trust

    

Series 2013-T2A, Class A2

    

1.68%, 06/20/46 (MT 06/20/16)a,c

     140        139,730   
Security   Principal
(000s)		     Value  
   

PFS Financing Corp.

    

Series 2012-AA, Class A

    

1.37%, 02/15/16 (MT 02/17/14)a,b

   $ 140      $ 140,044   

Series 2012-AA, Class B

    

1.87%, 02/15/16 (MT 02/17/14)a,b

     200        200,137   

Santander Drive Auto Receivables Trust

    

Series 2012-2, Class D

    

3.87%, 02/15/18 (MT 01/15/16)

     2,000        2,096,742   

Series 2012-AA, Class C

    

1.78%, 11/15/18a

     650        652,035   

Series 2013-2, Class B

    

1.33%, 03/15/18 (MT 04/15/16)

     2,400        2,425,130   

Series 2013-3, Class A3

    

0.70%, 10/16/17 (MT 11/15/15)

     1,000        1,000,083   

Series 2013-5, Class A2B

    

0.54%, 04/17/17b

     500        500,275   

Series 2013-5, Class B

    

1.55%, 10/15/18

     775        775,480   

Series 2013-A, Class A3

    

1.02%, 01/16/18 (MT 02/15/16)a

     1,750        1,757,847   

SLM Student Loan Trust

    

Series 2004-A, Class A2

    

0.44%, 03/16/20b

     1,120        1,110,997   

Series 2006-4, Class A5

    

0.34%, 10/27/25b

     3,100        3,077,280   

Series 2008-5, Class A2

    

1.34%, 10/25/16b

     57        57,178   

Series 2011-C, Class A2A

    

3.41%, 10/17/44 (MT 11/15/18)a,b

     2,000        2,142,094   

Series 2012-A, Class A1

    

1.56%, 08/15/25 (MT 04/15/16)a,b

     1,291        1,304,760   

Series 2012-C, Class A1

    

1.26%, 08/15/23 (MT 01/15/16)a,b

     770        773,971   

Series 2012-E, Class A1

    

0.91%, 10/16/23 (MT 06/15/16)a,b

     1,039        1,040,662   

Series 2012-E, Class A2B

    

1.92%, 06/15/45 (MT 10/15/17)a,b

     250        255,073   

Series 2013-A, Class A2B

    

1.22%, 05/17/27 (MT 08/15/18)a,b

     265        261,484   

Series 2013-B, Class A1

    

0.81%, 07/15/22 a,b

     1,005        1,004,583   

Series 2013-C, Class A1

    

1.01%, 02/15/22 (MT 01/15/17)a,b

     2,243        2,247,913   
   

 

 

  
      46,633,561   
   

 

 

  

TOTAL ASSET-BACKED SECURITIES
(Cost: $46,605,623)

   

     46,633,561   

COLLATERALIZED MORTGAGE
OBLIGATIONS —10.07%

   

MORTGAGE-BACKED SECURITIES — 10.07%

   

  

Banc of America Merrill Lynch Commercial Mortgage Inc.

    

Series 2005-4, Class A5A

    

4.93%, 07/10/45 (MT 07/10/15)

     526        551,411   

Series 2006-2, Class A4

    

5.74%, 05/10/45 (MT 05/10/16)b

     1,925        2,096,444   

Banc of America Merrill Lynch Commercial Mortgage Securities Trust

    

Series 2013-DSNY, Class A

    

1.21%, 09/15/26 (MT 09/15/15)a,b

     525        525,993   

Bear Stearns Commercial Mortgage Securities Inc.

    

Series 2005-PWR8, Class A4

    

4.67%, 06/11/41 (MT 06/11/15)

     244        253,159   
 

 

     3   

Schedule of Investments  (Unaudited) (Continued)

iSHARES® SHORT MATURITY BOND ETF

January 31, 2014

 

Security   Principal
(000s)		     Value  
   

Series 2006-PW12, Class A4

    

5.71%, 09/11/38 (MT 04/11/16)b

   $ 1,250      $ 1,367,722   

Series 2006-PW14, Class A1A

    

5.19%, 12/11/38 (MT 11/11/16)

     221        242,085   

Series 2007-PW15, Class A1A

    

5.32%, 02/11/44 (MT 02/11/17)

     262        286,694   

Credit Suisse Commercial Mortgage Trust

  

  

Series 2006-C5, Class A3

    

5.31%, 12/15/39 (MT 11/15/16)

     500        543,060   

Series 2007-TF2A, Class A1

    

0.34%, 04/15/22 (MT 03/15/09)a,b

     844        835,677   

DBRR Trust

  

  

Series 2013-EZ2, Class A

    

0.85%, 02/25/45 (MT 11/25/15)a,b

     2,551        2,538,642   

GMAC Commercial Mortgage Securities Inc.

  

  

Series 2006-C1, Class A1A

    

5.23%, 11/10/45 (MT 12/10/15)b

     1,856        1,980,385   

J.P. Morgan Chase Commercial Mortgage Securities Corp.

    

Series 2005-CB13, Class A4

    

5.24%, 01/12/43 (MT 10/12/15)b

     801        852,200   

Series 2006-LDP6, Class A4

    

5.48%, 04/15/43 (MT 03/15/16)b

     960        1,037,360   

Series 2007-CB18, Class A1A

    

5.43%, 06/12/47 (MT 01/12/17)b

     251        276,491   

Series 2007-CB18, Class A4

    

5.44%, 06/12/47 (MT 01/12/17)

     2,000        2,203,054   

LB-UBS Commercial Mortgage Trust

    

Series 2007-C2, Class A3

    

5.43%, 02/15/40 (MT 03/15/17)

     1,947        2,153,267   

Morgan Stanley Capital I Inc.

    

Series 2006-IQ12, Class A1A

    

5.32%, 12/15/43 (MT 12/15/16)

     418        457,331   

Series 2007-T25, Class A3

    

5.51%, 11/12/49b

     500        554,448   

Morgan Stanley Re-REMIC Trust
Series 2011-IO, Class B

    

0.00%, 03/23/51a,c

     1,750        1,688,645   

Wells Fargo Bank/Wachovia Bank Commercial Mortgage Trust

    

Series 2006-C24, Class A3

    

5.56%, 03/15/45 (MT 03/15/16)b

     250        269,531   

Series 2006-C29, Class A1A

    

5.30%, 11/15/48 (MT 11/15/16)

     239        262,015   
   

 

 

  
      20,975,614   
   

 

 

  

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost: $20,948,322)

    

     20,975,614   

CORPORATE BONDS & NOTES — 53.48%

  

AUTOMOBILES — 0.36%

  

Nissan Motor Acceptance Corp.

    

0.95%, 09/26/16a,b

     750        753,826   
   

 

 

  
      753,826   

CAPITAL MARKETS — 3.09%

  

Goldman Sachs Group Inc. (The)

    

0.70%, 03/22/16b

     3,765        3,749,353   

Morgan Stanley

    
Security   Principal
(000s)		     Value  
   

1.49%, 02/25/16b

   $ 1,750      $ 1,773,567   

4.20%, 11/20/14

     500        514,401   

6.00%, 04/28/15

     370        392,989   
   

 

 

  
      6,430,310   

CHEMICALS — 0.12%

  

Ecolab Inc.

    

1.00%, 08/09/15

     250        250,939   
   

 

 

  
      250,939   

COMMERCIAL BANKS — 7.01%

  

ABN AMRO Bank NV

    

1.04%, 10/28/16a,b

     635        637,609   

Barclays Bank PLC

    

3.90%, 04/07/15

     500        519,184   

BNP Paribas SA

    

0.83%, 12/12/16b

     750        752,337   

Deutsche Bank Financial LLC

    

5.38%, 03/02/15

     500        522,452   

Fifth Third Bancorp

    

0.67%, 12/20/16b

     750        743,059   

ING Bank NV

    

1.19%, 03/07/16a,b

     800        806,986   

Intesa Sanpaolo SpA

    

3.13%, 01/15/16

     1,000        1,020,005   

KeyCorp

    

3.75%, 08/13/15

     1,350        1,408,882   

Lloyds Bank PLC

    

4.38%, 01/12/15a

     1,975        2,042,940   

Regions Financial Corp.

    

7.75%, 11/10/14

     750        790,927   

Santander Holdings USA Inc.

    

3.00%, 09/24/15 (MT 08/24/15)

     1,000        1,034,361   

Sumitomo Mitsui Trust Bank Ltd.

    

1.02%, 09/16/16a,b

     500        503,629   

Union Bank N.A.

    

1.00%, 09/26/16b

     1,000        1,008,653   

Wachovia Corp./Wells Fargo & Co.

    

0.61%, 10/15/16b

     1,250        1,245,164   

Wells Fargo Bank N.A.

    

4.75%, 02/09/15

     1,500        1,563,375   
   

 

 

  
      14,599,563   

COMPUTERS & PERIPHERALS — 0.88%

  

Hewlett-Packard Co.

    

2.35%, 03/15/15

     550        560,273   

2.63%, 12/09/14

     1,250        1,271,714   
   

 

 

  
      1,831,987   

CONSUMER FINANCE — 4.66%

  

Asciano Finance Ltd.

    

3.13%, 09/23/15a

     1,185        1,212,852   

Capital One Financial Corp.

    

2.15%, 03/23/15

     1,250        1,269,713   

5.50%, 06/01/15

     1,250        1,324,030   

Ford Motor Credit Co. LLC

    

1.49%, 05/09/16b

     1,500        1,524,532   

1.70%, 05/09/16

     250        252,949   

3.88%, 01/15/15

     2,500        2,571,990   

5.63%, 09/15/15

     260        278,822   
 

 

4   

Schedule of Investments  (Unaudited) (Continued)

iSHARES® SHORT MATURITY BOND ETF

January 31, 2014

 

Security   Principal
(000s)
     Value  
   

HSBC Finance Corp.

    

0.67%, 06/01/16b

   $ 1,275      $ 1,272,994   
   

 

 

  
      9,707,882   

DIVERSIFIED FINANCIAL SERVICES — 7.15%

  

Bank of America Corp.

    

1.07%, 03/22/16b

     2,750        2,765,823   

Banque Federative du Credit Mutuel SA

    

1.09%, 01/20/17a,b

     1,000        999,715   

Citigroup Inc.

    

1.20%, 07/25/16b

     975        986,027   

5.00%, 09/15/14

     200        205,222   

6.01%, 01/15/15

     2,200        2,308,959   

Daimler Finance North America LLC

    

0.92%, 08/01/16a,b

     250        251,356   

1.30%, 07/31/15a

     500        505,099   

General Electric Capital Corp.

    

0.89%, 07/12/16b

     500        504,628   

Harley-Davidson Funding Corp.

    

5.75%, 12/15/14a

     1,175        1,225,741   

J.P. Morgan Chase & Co.

    

0.86%, 02/26/16b

     1,575        1,581,483   

5.25%, 05/01/15

     2,150        2,263,299   

NASDAQ OMX Group Inc. (The)

    

4.00%, 01/15/15

     1,250        1,286,963   
   

 

 

  
      14,884,315   

DIVERSIFIED TELECOMMUNICATION SERVICES — 2.29%

  

AT&T Inc.

    

0.62%, 02/12/16b

     1,000        999,310   

Verizon Communications Inc.

    

1.77%, 09/15/16b

     3,250        3,345,927   

4.90%, 09/15/15

     400        426,333   
   

 

 

  
      4,771,570   

ELECTRIC UTILITIES — 1.22%

    

Oncor Electric Delivery Co. LLC

    

6.38%, 01/15/15

     2,415        2,539,500   
   

 

 

  
      2,539,500   

ELECTRONIC EQUIPMENT, INSTRUMENTS &
COMPONENTS — 0.72%

   

Avnet Inc.

    

5.88%, 03/15/14

     1,500        1,508,832   
   

 

 

  
      1,508,832   

FOOD & STAPLES RETAILING — 0.10%

  

CVS Caremark Corp.

    

3.25%, 05/18/15

     193        199,568   
   

 

 

  
      199,568   

FOOD PRODUCTS — 0.64%

    

Nabisco Inc.

    

7.55%, 06/15/15

     1,000        1,089,893   
Security   Principal
(000s)
     Value  
   

WM Wrigley Jr. Co.

    

3.70%, 06/30/14

   $ 250      $ 253,255   
   

 

 

  
      1,343,148   

HEALTH CARE EQUIPMENT & SUPPLIES — 0.67%

  

Covidien International Finance SA

    

1.35%, 05/29/15

     1,000        1,009,296   

2.80%, 06/15/15

     370        380,048   
   

 

 

  
      1,389,344   

HEALTH CARE PROVIDERS & SERVICES — 1.09%

  

Coventry Health Care Inc.

    

6.13%, 01/15/15

     750        788,965   

Express Scripts Holding Co.

    

2.10%, 02/12/15

     500        507,378   

WellPoint Inc.

    

1.25%, 09/10/15

     200        201,777   

5.00%, 12/15/14

     750        779,493   
   

 

 

  
      2,277,613   

HOUSEHOLD DURABLES — 0.08%

  

Whirlpool Corp.

    

8.60%, 05/01/14

     155        157,988   
   

 

 

  
      157,988   

INDEPENDENT POWER PRODUCERS & ENERGY
TRADERS — 0.16%

   

Southern Power Co.
Series D

    

4.88%, 07/15/15

     321        339,653   
   

 

 

  
      339,653   

INSURANCE — 5.51%

    

American International Group Inc.

    

2.38%, 08/24/15

     1,555        1,588,594   

3.00%, 03/20/15

     250        256,717   

5.05%, 10/01/15

     987        1,055,169   

Hartford Financial Services Group Inc.

    

4.00%, 03/30/15

     2,000        2,073,520   

Liberty Mutual Group Inc.

    

5.75%, 03/15/14a

     2,000        2,011,070   

MetLife Institutional Funding II

    

1.63%, 04/02/15a

     500        506,082   

Prudential Financial Inc.

    

6.20%, 01/15/15

     1,725        1,814,580   

XLIT Ltd.

    

5.25%, 09/15/14

     2,100        2,158,080   
   

 

 

  
      11,463,812   

LIFE SCIENCES TOOLS & SERVICES — 1.35%

  

Life Technologies Corp.

    

4.40%, 03/01/15

     1,220        1,267,598   

Thermo Fisher Scientific Inc.

    

3.20%, 05/01/15

     1,000        1,030,782   

3.25%, 11/20/14

     500        510,809   
   

 

 

  
      2,809,189   
 

 

     5   

Schedule of Investments  (Unaudited) (Continued)

iSHARES® SHORT MATURITY BOND ETF

January 31, 2014

 

Security   Principal
(000s)
     Value  
   

MEDIA — 2.34%

    

COX Communications Inc.

    

5.45%, 12/15/14

   $ 1,150      $ 1,197,725   

DIRECTV Holdings LLC/DIRECTV
Financing Co. Inc.

    

3.55%, 03/15/15

     1,145        1,180,018   

4.75%, 10/01/14

     250        256,927   

Interpublic Group of Companies Inc. (The)

    

6.25%, 11/15/14

     2,155        2,233,119   
   

 

 

  
      4,867,789   

METALS & MINING — 0.63%

    

Freeport-McMoRan Copper & Gold Inc.

    

1.40%, 02/13/15

     1,296        1,303,111   
   

 

 

  
      1,303,111   

OIL, GAS & CONSUMABLE FUELS — 1.90%

  

Anadarko Petroleum Corp.

    

5.75%, 06/15/14

     800        815,070   

Energy Transfer Partners LP

    

8.50%, 04/15/14

     205        208,156   

PC Financial Partnership

    

5.00%, 11/15/14

     605        625,436   

Phillips 66

    

1.95%, 03/05/15

     950        964,141   

Sunoco Inc.

    

9.63%, 04/15/15

     752        826,509   

Valero Energy Corp.

    

4.50%, 02/01/15

     500        518,440   
   

 

 

  
      3,957,752   

PAPER & FOREST PRODUCTS — 0.61%

  

International Paper Co.

    

5.30%, 04/01/15

     1,200        1,260,409   
   

 

 

  
      1,260,409   

REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.90%

  

American Tower Corp.

    

4.63%, 04/01/15

     1,700        1,773,426   

Boston Properties LP

    

5.00%, 06/01/15

     1,175        1,239,611   

5.63%, 04/15/15

     200        211,546   

ERP Operating LP

    

6.58%, 04/13/15

     570        609,422   

HCP Inc.

    

6.00%, 03/01/15

     1,150        1,213,969   

Health Care REIT Inc.

    

5.88%, 05/15/15

     1,500        1,596,171   

Nationwide Health Properties Inc.

    

6.00%, 05/20/15

     1,375        1,467,607   
   

 

 

  
      8,111,752   

ROAD & RAIL — 3.17%

    

CSX Corp.

    

6.25%, 04/01/15

     250        266,210   

ERAC USA Finance LLC

    

5.60%, 05/01/15a

     1,359        1,439,070   
Security   Principal
(000s)
     Value  
   

Kansas City Southern Mexico

    

0.94%, 10/28/16b

   $ 1,000      $ 1,000,269   

Penske Truck Leasing Co. LP/PTL Finance Corp.

    

3.13%, 05/11/15a

     2,050        2,109,677   

Ryder System Inc.

    

3.15%, 03/02/15

     1,385        1,421,430   

Union Pacific Railroad Co. 2004-2 Pass Through Trust

    

5.21%, 09/30/14

     350        358,148   
   

 

 

  
      6,594,804   

SOFTWARE — 0.95%

  

CA Inc.

    

6.13%, 12/01/14

     1,900        1,980,957   
   

 

 

  
      1,980,957   

SPECIALTY RETAIL — 0.76%

  

AutoZone Inc.

    

5.75%, 01/15/15

     1,500        1,573,521   
   

 

 

  
      1,573,521   

THRIFTS & MORTGAGE FINANCE — 0.12%

  

AmSouth Bank N.A.
Series AI

    

5.20%, 04/01/15

     250        260,824   
   

 

 

  
      260,824   

TOBACCO — 0.59%

    

Altria Group Inc.

    

4.13%, 09/11/15

     200        210,913   

BAT International Finance PLC

    

1.40%, 06/05/15a

     1,000        1,010,477   
   

 

 

  
      1,221,390   

TRADING COMPANIES & DISTRIBUTORS — 0.42%

  

GATX Corp.

    

4.75%, 05/15/15

     825        865,689   
   

 

 

  
      865,689   

WIRELESS TELECOMMUNICATION SERVICES — 0.99%

  

America Movil SAB de CV

    

5.75%, 01/15/15

     1,300        1,358,240   

Vodafone Group PLC

    

5.38%, 01/30/15

     675        707,115   
   

 

 

  
      2,065,355   
   

 

 

  

TOTAL CORPORATE BONDS & NOTES
(Cost: $111,189,865)

   

     111,322,392   

FOREIGN AGENCY OBLIGATIONS — 1.86%

  

SOUTH KOREA — 1.86%

    

Korea Hydro & Nuclear Power Co. Ltd.

    

6.25%, 06/17/14a

     1,800        1,833,594   
 

 

6   

Schedule of Investments  (Unaudited) (Continued)

iSHARES® SHORT MATURITY BOND ETF

January 31, 2014

 

Security          Principal
(000s)		     Value  
     

Korea National Oil Corp.

      

5.38%, 07/30/14a

     $ 2,000      $ 2,043,116   
     

 

 

  
        3,876,710   
     

 

 

  

TOTAL FOREIGN AGENCY OBLIGATIONS

  

  

(Cost: $3,882,432)

  

     3,876,710   

FOREIGN GOVERNMENT OBLIGATIONS — 3.15%

  

MEXICO — 3.15%

      

United Mexican States

      

0.00%, 06/26/14

     MXN        40,000        2,946,730   

0.00%, 07/10/14

       49,000        3,604,507   
     

 

 

  
        6,551,237   
     

 

 

  

TOTAL FOREIGN GOVERNMENT OBLIGATIONS

   

  

(Cost: $6,741,504)

  

     6,551,237   

MUNICIPAL DEBT OBLIGATIONS — 0.69%

  

CALIFORNIA — 0.69%

      

State of California GO

      

0.85%, 02/01/15

       1,435        1,442,189   
     

 

 

  
        1,442,189   
     

 

 

  

TOTAL MUNICIPAL DEBT OBLIGATIONS

  

  

(Cost: $1,437,132)

  

     1,442,189   

U.S. GOVERNMENT & AGENCY
OBLIGATIONS — 0.55%

   

MORTGAGE-BACKED SECURITIES — 0.55%

  

Government National Mortgage Association
Series 2011-114, Class KF

      

0.61%, 03/20/41b

       1,137        1,141,610   
     

 

 

  
        1,141,610   
     

 

 

  

TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS

   

  

(Cost: $1,140,666)

  

     1,141,610   
Security   Shares
(000s)		     Value  
   

SHORT-TERM INVESTMENTS — 7.55%

  

MONEY MARKET FUNDS — 7.55%

  

  

BlackRock Cash Funds: Prime,
SL Agency Shares

    

0.12%d,e

     15,712      $ 15,712,134   
   

 

 

  
      15,712,134   
   

 

 

  

TOTAL SHORT-TERM INVESTMENTS

  

  

(Cost: $15,712,134)

  

     15,712,134   
   

 

 

  

TOTAL INVESTMENTS IN
SECURITIES — 99.75%

   

  

(Cost: $207,657,678)

  

     207,655,447   

Other Assets, Less Liabilities — 0.25%

  

     524,484   
   

 

 

  

NET ASSETS — 100.00%

  

   $ 208,179,931   
   

 

 

  

GO  —  General Obligation

MT  —  Mandatory Tender

MXN  —  Mexican Peso

 

a  This security may be resold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
b  Variable rate security. Rate shown is as of report date.
c  Security valued using Level 3 inputs in accordance with management’s fair valuation policy. See Note 1.
d  Affiliated issuer. See Note 2.
e  The rate quoted is the annualized seven-day yield of the fund at period end.

Forward currency contracts as of January 31, 2014 were as follows:

 

       Currency
to be
Delivered		        Currency
to be
Received		     Settlement
Date		     Counter-
party		     Unrealized
Appreciation
(Depreciation)		  
  MXN      39,270,000   USD     2,901,490        6/26/2014        CITI      $ 103,621   
                                             
  MXN      48,162,000   USD     3,554,545        7/10/2014        CITI        101,345   
                                             
            $ 204,966   
           

 

 

  

Counterparty:

CITI — Citigroup, Inc.

See accompanying notes to schedules of investments.

 

 

     7   

Notes to Schedules of Investments  (Unaudited)

iSHARES® U.S. ETF TRUST

 

iShares U.S. ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated June 21, 2011.

These schedules of investments relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

 

iShares ETF      

Liquidity Incomea

   

Short Maturity Bond

     

 

  a  

The Fund commenced operations on December 11, 2013.

 

1. SIGNIFICANT ACCOUNTING POLICIES

SECURITY VALUATION

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

 

  •  

Fixed income investments are valued at the last available bid price received from independent pricing services. In determining the value of a fixed income investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments, and calculated yield measures.

 

  •  

Open-end U.S. mutual funds are valued at that day’s published net asset value (NAV).

 

  •  

Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies.

 

  •  

Repurchase agreements are valued at amortized cost, which approximates market value.

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

 

8   

Notes to Schedules of Investments  (Unaudited)

iSHARES® U.S. ETF TRUST

 

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

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for a financial instrument within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The categorization of a value determined for a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and is not necessarily an indication of the risk associated with investing in the instrument. The three levels of the fair value hierarchy are as follows:

 

  •  

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

 

  •  

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

 

  •  

Level 3 — Unobservable inputs for the asset or liability, including the Global Valuation Committee’s assumptions used in determining the fair value of investments.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period.

 

     9   

Notes to Schedules of Investments  (Unaudited) (Continued)

iSHARES® U.S. ETF TRUST

 

The following table summarizes the value of each of the Funds’ investments according to the fair value hierarchy as of January 31, 2014. The breakdown of each Fund’s investments into major categories is disclosed in its respective schedule of investments.

 

iShares ETF and
Investment Type		    Investments  
   Level 1      Level 2      Level 3      Total  

Liquidity Income

            

Assets:

            

Asset-Backed Securities

    $ —       $ 300,042       $ —       $ 300,042   

Certificates of Deposit

      —         1,423,502         —         1,423,502   

Commercial Paper

      —         3,694,705         —         3,694,705   

Corporate Bonds & Notes

      —         15,351,730         —         15,351,730   

Repurchase Agreements

      —         4,350,000         —         4,350,000   

Money Market Funds

      15,680         —         —         15,680   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 15,680       $ 25,119,979       $ —       $ 25,135,659   
  

 

 

     

 

 

     

 

 

     

 

 

  

Short Maturity Bond

            

Assets:

            

Asset-Backed Securities

    $ —       $ 44,507,151       $ 2,126,410       $ 46,633,561   

Collateralized Mortgage Obligations

      —         19,286,969         1,688,645         20,975,614   

Corporate Bonds & Notes

      —         111,322,392         —         111,322,392   

Foreign Agency Obligations

      —         3,876,710         —         3,876,710   

Foreign Government Obligations

      —         6,551,237         —         6,551,237   

Municipal Debt Obligations

      —         1,442,189         —         1,442,189   

U.S. Government & Agency Obligations

      —         1,141,610         —         1,141,610   

Money Market Funds

      15,712,134         —         —         15,712,134   

Forward Currency Contractsa

         204,966            204,966   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 15,712,134       $ 188,333,224       $ 3,815,055       $ 207,860,413   
  

 

 

     

 

 

     

 

 

     

 

 

  
                                     

 

  a    Forward currency contracts are valued at the unrealized appreciation/depreciation on the contracts.

 

10   

Notes to Schedules of Investments  (Unaudited) (Continued)

iSHARES® U.S. ETF TRUST

 

The following table includes a rollforward for the period ended January 31, 2014 of investments whose values are classified as Level 3 as of the beginning or end of the period.

 

iShares Short Maturity Bond ETF   

Asset-Backed

Securities

    

Collateralized

Mortgage

Obligations

  

Balance at beginning of period

    $ 631,056      $ —   

Realized gain (loss) and change in unrealized appreciation/depreciation

      3,365        (13,230 ) 

Purchases

     999,999        1,701,875   

Sales

     —        —   

Transfers ina

      983,240 b       —   

Transfers outa

      (491,250 )      —   
  

 

 

    

 

 

  

Balance at end of period

    $ 2,126,410      $ 1,688,645   
  

 

 

    

 

 

  

Net change in unrealized appreciation/depreciation on investments still held at end of period

    $ 2,739      $ (13,402 ) 
  

 

 

    

 

 

  
                  

 

  a    Represents the value as of the beginning of the reporting period.
  b    The Fund’s investments that are categorized as Level 3 were valued utilizing a single broker quote without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value in such Level 3 investments.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

FEDERAL INCOME TAXES

As of January 31, 2014, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

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

Liquidity Income

    $ 25,133,125       $ 7,326       $ (4,792 )    $ 2,534   

Short Maturity Bond

      207,655,023         282,500         (282,076 )      424   

 

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Notes to Schedules of Investments  (Unaudited) (Continued)

iSHARES® U.S. ETF TRUST

 

2. TRANSACTIONS WITH AFFILIATES

Each Fund may invest its positive cash balances in certain money market funds managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or an affiliate. BFA is a California corporation indirectly owned by BlackRock, Inc. (“BlackRock”).

 

3. FORWARD CURRENCY CONTRACTS

Each Fund may enter into forward currency contracts for the purpose of hedging against the effects of foreign currencies on the value of each Fund’s assets that are denominated in a non-U.S. currency. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter and not on an organized exchange. The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. The Fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the Fund failing to close out its position due to an illiquid market.

 

4. REPURCHASE AGREEMENTS

The Funds may invest in repurchase agreements. In a repurchase agreement, a Fund purchases a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. On a daily basis, the counterparty is required to maintain collateral subject to the agreement and in value no less than the agreed repurchase amount. The agreements are conditioned upon the collateral being deposited under the Federal Reserve book entry system or held in a segregated account by the Fund’s custodian or designated sub-custodians under tri-party repurchase agreements. In the event the counterparty defaults and the fair value of the collateral declines, a Fund could experience losses, delays and costs in liquidating the collateral.

 

12   

Item 2. Controls and Procedures.

 

  (a) The President (the Registrant’s Principal Executive Officer) and Chief Financial Officer (the Registrant’s Principal Financial Officer) have concluded that, based on their evaluation as of a date within 90 days of the filing date of this report, the disclosure controls and procedures of the Registrant (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are reasonably designed to achieve the purposes described in Section 4(a) of the certifications filed with this Form N-Q.

 

  (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 Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

  (a) Certifications of the President (the Registrant’s Principal Executive Officer) and Chief Financial Officer (the Registrant’s Principal Financial Officer) as required by Rule 30a-2(a) under the Investment Company Act of 1940 are filed with this Form N-Q as exhibits.

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 U.S. ETF Trust

By: /s/ Manish Mehta

Manish Mehta, President (Principal Executive Officer)
Date:    March 24, 2014

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/ Manish Mehta

Manish Mehta, President (Principal Executive Officer)
Date:    March 24, 2014

By: /s/ Jack Gee

Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:    March 24, 2014