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0000844779 bf1:ClassKMember bf1:Russell3000IndexMember 2015-01-01 2024-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:Russell2000IndexMember 2015-01-01 2024-12-31 0000844779 bf1:InvestorACAndInstitutionalMember bf1:Russell3000IndexMember 2015-01-01 2024-12-31 iso4217:USD pure 0000844779 false 485BPOS 2025-05-31 0.1619 0.1157 -0.0237 0.2352 0.1053 -0.0909 0.3179 0.1935 0.1435 -0.2003 0.1472 -0.1976 0.1649 0.1196 -0.0225 0.2400 0.1082 -0.0880 0.3226 0.1960 N-1A BLACKROCK FUNDS 2025-09-26 Fund Overview Key Facts About BlackRock Advantage Small Cap Core Fund Investment Objective <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The investment objective of BlackRock Advantage Small Cap Core Fund (the “Fund”), a series of BlackRock Funds</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">SM</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(the “Trust”), is to seek capital appreciation over the long term.</span></div> Fees and Expenses of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">You may pay </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">other fees, such as brokerage commissions and other fees to your financial professional or your selected securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">(</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">BlackRock</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">) and its affiliates) (each, a </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">Financial Intermediary</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">), which are not reflected in the table and </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">example below.</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">future, at least $25,000 in the fund complex advised by BlackRock or its affiliates. More information about these and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other discounts is available from your Financial Intermediary and in the “Details About the Share Classes” and the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“Intermediary-Defined Sales Charge Waiver Policies” sections on pages </span><span style="color:#000000;font-family:arial;font-size:9.30pt">24</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">A-1</span><span style="color:#000000;font-family:arial;font-size:9.30pt">, respectively, of the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">prospectus and in the “Purchase of Shares” section on page </span><span style="color:#000000;font-family:arial;font-size:9.30pt">II-95</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> of Part II of the Fund’s Statement of Additional </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Information.</span></div> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the fund complex advised by BlackRock or its affiliates. 25000 Shareholder Fees (fees paid directly from your investment) 0.0525 0 0 0 0.0100 0 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0043 0.0043 0.0043 0.0025 0.0100 0 0.0024 0.0023 0.0015 0.0092 0.0166 0.0058 -0.0017 -0.0016 -0.0008 0.0075 0.0150 0.0050 A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. June 30, 2027 The Total Annual Fund Operating Expenses and Other Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. Example: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color:#000000;font-family:arial;font-size:9.30pt">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color:#000000;font-family:arial;font-size:9.30pt">or lower, based on these assumptions your costs would be:</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> 598 787 992 1582 253 508 887 1755 51 178 316 718 You would pay the following expenses if you did not redeem your shares:  153 508 887 1755 Portfolio Turnover: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color:#000000;font-family:arial;font-size:9.30pt">88</span><span style="color:#000000;font-family:arial;font-size:9.30pt">% of the average value of its portfolio.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> 0.88 Principal Investment Strategies of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Under normal circumstances, the Fund seeks to invest at least 80% of its net assets plus any borrowings for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment purposes in equity securities or other financial instruments that are components of, or have market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">capitalizations similar to, the securities included in the Russell 2000</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">®</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Index. With respect to such equity investments, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments in derivatives are counted toward the Fund’s 80% policy to the extent that they provide investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure to the securities included within that policy or to one or more market risk factors associated with such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities. The companies included in the Russell 2000</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">®</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Index have market capitalizations that range from </span><span style="color:#000000;font-family:arial;font-size:9.30pt">approximately $19.6 million to $20.9 billion as of August 31, 2025. The Fund primarily seeks to buy common stock </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and may also invest in preferred stock and convertible securities. From time to time the Fund may invest in shares of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">companies through “new issues” or initial public offerings (“IPOs”).</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may use derivatives, including options, futures, swaps and forward contracts both to seek to increase the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">return of the Fund and to hedge (or protect) the value of its assets against adverse movements in currency exchange </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rates, interest rates and movements in the securities markets. In order to manage cash flows into or out of the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">effectively, the Fund may buy and sell financial futures contracts or options on such contracts. Derivatives are financial </span><span style="color:#000000;font-family:arial;font-size:9.30pt">instruments whose value is derived from another security, a commodity (such as oil or gas), a currency or an index, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">including but not limited to the Russell 2000</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">®</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Index. The use of options, futures, swaps and forward contracts can be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">effective in protecting or enhancing the value of the Fund’s assets.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund seeks to pursue its investment objective by investing in small cap securities in a disciplined manner, by </span><span style="color:#000000;font-family:arial;font-size:9.30pt">using proprietary return forecast models that incorporate quantitative analysis. These forecast models are designed to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">identify aspects of mispricing across stocks which the Fund can seek to capture by over- and under-weighting particular </span><span style="color:#000000;font-family:arial;font-size:9.30pt">equities while seeking to control incremental risk. The Fund’s manager then constructs and rebalances the portfolio by </span><span style="color:#000000;font-family:arial;font-size:9.30pt">integrating its investment insights with the model-based optimization process.</span></div> You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Equity Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Small Cap Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Small cap companies may have limited product lines or markets. They may be less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">financially secure than larger, more established companies. They may depend on a more limited management group </span><span style="color:#000000;font-family:arial;font-size:9.30pt">than larger capitalized companies.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Investment Style Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Under certain market conditions, growth investments have performed better during the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">later stages of economic expansion and value investments have performed better during periods of economic </span><span style="color:#000000;font-family:arial;font-size:9.30pt">recovery. Therefore, these investment styles may over time go in and out of favor. At times when the investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">style used by the Fund is out of favor, the Fund may underperform other equity funds that use different investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">styles.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Model Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund seeks to pursue its investment objective by using proprietary models that incorporate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">quantitative analysis. Investments selected using these models may perform differently than as forecasted due to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the factors incorporated into the models and the weighting of each factor, changes from historical trends, and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issues in the construction and implementation of the models (including, but not limited to, software issues, issues </span><span style="color:#000000;font-family:arial;font-size:9.30pt">related to the use of artificial intelligence and machine learning (“AI”), and other technological issues). There is no </span><span style="color:#000000;font-family:arial;font-size:9.30pt">guarantee that BlackRock’s use of these models will result in effective investment decisions for the Fund.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The information and data used in the models may be supplied by third parties. Inaccurate or incomplete data may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">limit the effectiveness of the models. In addition, some of the data that BlackRock uses may be historical data, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">which may not accurately predict future market movement. There is a risk that the models will not be successful in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">selecting investments or in determining the weighting of investment positions that will enable the Fund to achieve </span><span style="color:#000000;font-family:arial;font-size:9.30pt">its investment objective.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Risk of Investing in the United States </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Convertible Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The market value of a convertible security performs like that of a regular debt </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">their market value may change based on changes in the issuer’s credit rating or the market’s perception of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">converted, a convertible security is also subject to the same types of market and issuer risks that apply to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying common stock, including the potential for increased volatility in the price of the convertible security.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Derivatives Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Leverage Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exceed the amount originally invested.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Market Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">derivatives positions to lose value.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Counterparty Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure to such a counterparty.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Illiquidity Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color:#000000;font-family:arial;font-size:9.30pt">difficult for the Fund to value accurately.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Operational Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issues, settlement issues, systems failures, inadequate controls and human error.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Legal Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">enforceability of a contract.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Volatility and Correlation Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fluctuations in their values may not correlate with the overall securities markets.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Valuation Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color:#000000;font-family:arial;font-size:9.30pt">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color:#000000;font-family:arial;font-size:9.30pt">instruments or quote prices for them.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Hedging Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may result in certain adverse tax consequences.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">realizes from its investments.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">High Portfolio Turnover Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of higher than normal portfolio turnover may adversely affect Fund performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Leverage Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to meet the applicable requirements of the Investment Company Act of 1940, as amended, and the rules </span><span style="color:#000000;font-family:arial;font-size:9.30pt">thereunder. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">leverage.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Market Risk and Selection Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment strategies. The Fund seeks to pursue its investment objective by using proprietary models that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">incorporate quantitative analysis and is subject to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Model Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> as described above. This means you may lose </span><span style="color:#000000;font-family:arial;font-size:9.30pt">money.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">“New Issues” Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and information about the companies may be available for very limited periods. In addition, the prices of securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">sold in IPOs may be highly volatile or may decline shortly after the IPO.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Operational and Technology Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cybersecurity incidents, and the use of AI, which may result in losses for the Fund and its shareholders or may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">impair the Fund’s operations. While the Fund’s service providers are required to have appropriate operational, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">information security and cybersecurity risk management policies and procedures, their methods of risk management </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may differ from those of the Fund. Operational and technology risks for the issuers in which the Fund invests could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">also result in material adverse consequences for such issuers and may cause the Fund’s investments in such </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers to lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Preferred Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">larger companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> Performance Information <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The information shows you how the Fund’s performance has varied year by year and provides some indication of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks of investing in the Fund. The table compares the Fund’s performance to that of the Russell 3000</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">®</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Index and the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Russell 2000</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">®</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Index. The Russell 2000</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">®</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Index is relevant to the Fund because it has characteristics similar to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund’s investment strategy. To the extent that dividends and distributions have been paid by the Fund, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">As with all such investments, past performance (before and after taxes) is not an indication of future results. Sales </span><span style="color:#000000;font-family:arial;font-size:9.30pt">charges are not reflected in the bar chart. If they were, returns would be less than those shown. However, the table </span><span style="color:#000000;font-family:arial;font-size:9.30pt">includes all applicable fees and sales charges. If BlackRock and its affiliates had not waived or reimbursed certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance, including its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by phone at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(800) 882-0052</span><span style="color:#000000;font-family:arial;font-size:9.30pt">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the Russell 3000® Index and the Russell 2000® Index. The Russell 2000® Index is relevant to the Fund because it has characteristics similar to the Fund’s investment strategy. As with all such investments, past performance (before and after taxes) is not an indication of future results. Sales charges are not reflected in the bar chart. If they were, returns would be less than those shown. However, the table includes all applicable fees and sales charges. www.blackrock.com (800) 882-0052 Investor A Shares ANNUAL TOTAL RETURNS BlackRock Advantage Small Cap Core Fund As of 12/31 <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">During the ten-year period shown in the bar chart, the highest return for a quarter was 30.93% (quarter ended </span><span style="color:#000000;font-family:arial;font-size:9.30pt">December 31, 2020) and the lowest return for a quarter was -31.32% (quarter ended March 31, 2020). The year-to-date</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> return as of June 30, 2025 was -1.86%.</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> highest return 0.3093 2020-12-31 lowest return -0.3132 2020-03-31 year-to-datereturn 2025-06-30 -0.0186 For the periods ended 12/31/24Average Annual Total Returns 0.0571 0.0603 0.0791 0.0559 0.0492 0.0688 0.0349 0.0440 0.0604 0.0975 0.0637 0.0784 0.1186 0.0744 0.0876 0.2381 0.1386 0.1255 0.1154 0.0740 0.0782 <div style="margin-top:12pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color:#000000;font-family:arial;font-size:9.30pt">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Investor A Shares only, and the after-tax returns for Investor C and Institutional Shares will vary.</span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Investor A Shares only, and the after-tax returns for Investor C and Institutional Shares will vary. Fund OverviewKey Facts About BlackRock Advantage Small Cap Core Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Advantage Small Cap Core Fund (the “Fund”), a series of BlackRock Funds</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">SM</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(the “Trust”), is to seek capital appreciation over the long term.</span></div> Fees and Expenses of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">You </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">may pay other fees, such as brokerage commissions and other fees to your financial professional or your selected </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Advisors, LLC (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">BlackRock</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">) and its affiliates) (each, a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">Financial Intermediary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">), which are not reflected in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-weight: bold;">table and example below.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> Annual Fund Operating Expenses(expenses that you pay each year as apercentage of the value of your investment) 0.0043 0 0.0008 0.0051 -0.0006 0.0045 June 30, 2027 Example: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or lower, based on these assumptions your costs would be:</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> 46 158 279 635 Portfolio Turnover: <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">88</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 0.88 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal circumstances, the Fund seeks to invest at least 80% of its net assets plus any borrowings for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment purposes in equity securities or other financial instruments that are components of, or have market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">capitalizations similar to, the securities included in the Russell 2000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index. With respect to such equity investments, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments in derivatives are counted toward the Fund’s 80% policy to the extent that they provide investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to the securities included within that policy or to one or more market risk factors associated with such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities. The companies included in the Russell 2000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index have market capitalizations that range from </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">approximately $19.6 million to $20.9 billion as of August 31, 2025. The Fund primarily seeks to buy common stock </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and may also invest in preferred stock and convertible securities. From time to time the Fund may invest in shares of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">companies through “new issues” or initial public offerings (“IPOs”).</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may use derivatives, including options, futures, swaps and forward contracts both to seek to increase the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return of the Fund and to hedge (or protect) the value of its assets against adverse movements in currency exchange </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">rates, interest rates and movements in the securities markets. In order to manage cash flows into or out of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">effectively, the Fund may buy and sell financial futures contracts or options on such contracts. Derivatives are financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments whose value is derived from another security, a commodity (such as oil or gas), a currency or an index, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including but not limited to the Russell 2000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index. The use of options, futures, swaps and forward contracts can be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">effective in protecting or enhancing the value of the Fund’s assets.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund seeks to pursue its investment objective by investing in small cap securities in a disciplined manner, by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">using proprietary return forecast models that incorporate quantitative analysis. These forecast models are designed to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">identify aspects of mispricing across stocks which the Fund can seek to capture by over- and under-weighting particular </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">equities while seeking to control incremental risk. The Fund’s manager then constructs and rebalances the portfolio by </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">integrating its investment insights with the model-based optimization process.</span></div> You may lose part or all of yourinvestment in the Fund or your investment may not perform as well as other similar investments. <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Equity Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Small Cap Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Small cap companies may have limited product lines or markets. They may be less </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">financially secure than larger, more established companies. They may depend on a more limited management group </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">than larger capitalized companies.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Investment Style Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Under certain market conditions, growth investments have performed better during the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">later stages of economic expansion and value investments have performed better during periods of economic </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">recovery. Therefore, these investment styles may over time go in and out of favor. At times when the investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">style used by the Fund is out of favor, the Fund may underperform other equity funds that use different investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">styles.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Model Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund seeks to pursue its investment objective by using proprietary models that incorporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">quantitative analysis. Investments selected using these models may perform differently than as forecasted due to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the factors incorporated into the models and the weighting of each factor, changes from historical trends, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues in the construction and implementation of the models (including, but not limited to, software issues, issues </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">related to the use of artificial intelligence and machine learning (“AI”), and other technological issues). There is no </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">guarantee that BlackRock’s use of these models will result in effective investment decisions for the Fund.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information and data used in the models may be supplied by third parties. Inaccurate or incomplete data may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limit the effectiveness of the models. In addition, some of the data that BlackRock uses may be historical data, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which may not accurately predict future market movement. There is a risk that the models will not be successful in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">selecting investments or in determining the weighting of investment positions that will enable the Fund to achieve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its investment objective.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Risk of Investing in the United States </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain changes in the U.S. economy, such as when the U.S. economy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">weakens or when its financial markets decline, may have an adverse effect on the securities to which the Fund has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Convertible Securities Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The market value of a convertible security performs like that of a regular debt </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">their market value may change based on changes in the issuer’s credit rating or the market’s perception of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">converted, a convertible security is also subject to the same types of market and issuer risks that apply to the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">underlying common stock, including the potential for increased volatility in the price of the convertible security.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Derivatives Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Leverage Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exceed the amount originally invested.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Market Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">derivatives positions to lose value.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Counterparty Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exposure to such a counterparty.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Illiquidity Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">difficult for the Fund to value accurately.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Operational Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues, settlement issues, systems failures, inadequate controls and human error.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Legal Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">enforceability of a contract.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Volatility and Correlation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fluctuations in their values may not correlate with the overall securities markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Valuation Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments or quote prices for them.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Hedging Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may result in certain adverse tax consequences.</span></div> <div style="margin-top: 4pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">Tax Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">realizes from its investments.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">High Portfolio Turnover Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of higher than normal portfolio turnover may adversely affect Fund performance.</span> <br/><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Leverage Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to meet the applicable requirements of the Investment Company Act of 1940, as amended, and the rules </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">thereunder. Increases and decreases in the value of the Fund’s portfolio will be magnified when the Fund uses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">leverage.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Market Risk and Selection Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a </span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div style="line-height: 10.695pt; margin-left: 12pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments. Selection risk is the risk that the securities selected by Fund management will underperform the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets, the relevant indices or the securities selected by other funds with similar investment objectives and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investment strategies. The Fund seeks to pursue its investment objective by using proprietary models that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">incorporate quantitative analysis and is subject to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Model Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> as described above. This means you may lose </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">money.</span></div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">“New Issues” Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic;">—</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and information about the companies may be available for very limited periods. In addition, the prices of securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">sold in IPOs may be highly volatile or may decline shortly after the IPO.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Operational and Technology Risks </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">cybersecurity incidents, and the use of AI, which may result in losses for the Fund and its shareholders or may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">impair the Fund’s operations. While the Fund’s service providers are required to have appropriate operational, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information security and cybersecurity risk management policies and procedures, their methods of risk management </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may differ from those of the Fund. Operational and technology risks for the issuers in which the Fund invests could </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">also result in material adverse consequences for such issuers and may cause the Fund’s investments in such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issuers to lose value.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> <div> <div style="clear: both; margin-top: 4.805pt; position: relative; width: 100%;"> <div style="float: left; line-height: 9.87pt; text-align: left; width: 8pt;"><span style="color: #000000; font-family: arial; font-size: 8.37pt; position: relative; top: -0.5pt;">◼</span></div> <div style="float: left; line-height: 10.80pt; margin-left: 4pt; text-align: left; width: 505.0pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Preferred Securities Risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> — Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">larger companies.</span></div> </div> <div style="clear: both; position: relative;"></div> </div> Performance Information <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information shows you how the Fund’s performance has varied year by year and provides some indication of the</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> risks of investing in the Fund. Class K Shares commenced operations on March 28, 2016. As a result, the returns in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the chart and the table shown below for Class K Shares prior to March 28, 2016 are those of the Fund’s Institutional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares, which are not offered in this prospectus. The performance of Class K Shares would be substantially similar to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Institutional Shares because Class K Shares and Institutional Shares are invested in the same portfolio of securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and performance would differ only to the extent that Institutional Shares and Class K Shares have different expenses. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Shares have lower expenses than the Institutional Shares. The table compares the Fund’s performance to that of the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Russell 3000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index and the Russell 2000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index. The Russell 2000</span><span style="color: #000000; font-family: arial; font-size: 5pt; position: relative; top: -3.25pt;">®</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Index is relevant to the Fund because it has </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">characteristics similar to the Fund’s investment strategy. To the extent that dividends and distributions have been paid </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by the Fund, the performance information for the Fund in the chart and table assumes reinvestment of the dividends </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and distributions. As with all such investments, past performance (before and after taxes) is not an indication of future</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> results. The table includes all applicable fees. If BlackRock and its affiliates had not waived or reimbursed certain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">performance, including its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by phone at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">(800) 882-0052</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span></div> The information shows you how the Fund’s performance has varied year by year and provides some indication of therisks of investing in the Fund. The table compares the Fund’s performance to that of the Russell 3000® Index and the Russell 2000® Index. The Russell 2000® Index is relevant to the Fund because it has characteristics similar to the Fund’s investment strategy. As with all such investments, past performance (before and after taxes) is not an indication of futureresults. www.blackrock.com (800) 882-0052 Class K Shares ANNUAL TOTAL RETURNS BlackRock Advantage Small Cap Core Fund As of 12/31 <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">During the ten-year period shown in the bar chart, the highest return for a quarter was 30.99% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">December 31, 2020) and the lowest return for a quarter was -31.27% (quarter ended March 31, 2020). The year-to-date return</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> as of June 30, 2025 was -1.74%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.3099 2020-12-31 lowest return -0.3127 2020-03-31 year-to-date return 2025-06-30 -0.0174 For the periods ended 12/31/24Average Annual Total Returns 0.1196 0.0750 0.0881 0.1176 0.0629 0.0771 0.0724 0.0555 0.0678 0.2381 0.1386 0.1255 0.1154 0.0740 0.0782 <div style="margin-top: 12pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do notreflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and maydiffer from those shown, and the after-tax returns shown are not relevant to investors who hold their shares throughtax-deferred arrangements, such as 401(k) plans or individual retirement accounts. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 41, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2027. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2027. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. The Total Annual Fund Operating Expenses and Other Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 41, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.75% (for Investor A Shares), 1.50% (for Investor C Shares) and 0.50% (for Institutional Shares) of average daily net assets through June 30, 2027. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 28, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2027. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2027. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. There is no CDSC on Investor C Shares after one year. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 28, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.45% of average daily net assets through June 30, 2027. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.